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BIDVEST 3663 UNVEILS REGIONAL REVAMP AFTER PROFITS EXCEED TARGETS

THE BUSINESS MAGAZINE FOR CASH & CARRY/DELIVERED WHOLESALERS

Exclusive!

Martin Williams outlines Landmark’s plans for the future

UNDER THE SPOTLIGHT

Philip de Ternant, Creed Foodservice

Bestway honours staff at Performance Awards CATEGORY GUIDANCE

4Cleaning 4Tobacco 4Ice Cream 4Snacks & Biscuits 4Energy Drinks

MARCH 2015


Contents

March 2015

This month don’t miss... 13

Evolution over strategy: the philosophy at Bidvest 3663.

18

46

Martin Williams opens up about juggling two high-profile roles.

Why your customers’ snacks fixture may need a facelift.

ESSENTIALS 05 06 20 62

08

Editor’s Comment Industry News Achievers Products & Promotions

FEATURES 13

Behind the Scenes Developments continue apace at Bidvest 3663.

14

Spotlight featuring Philip de Ternant, managing director of Creed Foodservice.

18

In Focus Martin Williams talks Landmark, the FWD and his plans for the future.

OPINION 16

The Best-way forward: profits and sales may be flat across its wholesale business, but Bestway Group remains optimistic following a ‘robust’ progression in its online and foodservice divisions. Products of the month

14

62

Philip de Ternant on turning career failings into character-building milestones.

Britvic Soft Drinks has unveiled a multi-million-pound investment in several leading brands.

Employment Law April launch for ‘Fit for Work’ service.

40

Legal Advice Understand the legal jargon in a business lease.

CATEGORY INSIGHT 22 35 42 46 54

Energy Drinks Ice Cream & Frozen Desserts Laundry & Homecare Snacks & Biscuits Tobacco & Accessories

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March 2015

03


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[ EDITOR’S COMMENT ]

Taking the right route aiting for the lights to change colour, I thanked the motorist alongside me for letting me know my brake lights had gone. I could soon have been stopped by some eagle-eyed traffic cop for this petty misdemeanour. Oversights such as this are committed daily on our roads, mostly unknowingly by the vehicle owner. However, they pale into insignificance when compared with other wrongdoings that take place regularly on the UK’s highways and byways. For C&C/wholesalers, maintaining a transport fleet in prime condition is paramount to the smooth running of the business. Any dip in standards could have major repercussions. Sometimes, when a large delivered wholesaler, for instance, alters its livery, it has vehicles on the road looking a little worn and tatty before the changeover is completed. That’s for starters. Then there is the fuel to consider. Thankfully, costs have reduced recently, but how long will it be before they escalate again? Perhaps the main consideration in terms of distribution is keeping on the right side of health & safety laws – that’s vehicles and drivers. There are government agencies that keep close tabs on this sort of thing. Fall foul of the rules, and you could soon be facing a stiff penalty, or even have your lorries banned until standards have been improved.

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BIDVEST 3663 UNVEILS REGIONAL REVAMP AFTER PROFITS EXCEED TARGETS

Exclusive!

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That has happened to two food wholesalers. And there might be others right now answering questions from the authorities. The more recent incident concerns Freshways Wholesale Foods in Staffordshire, which runs both a wholesale and retail business. Towards the end of February, regional traffic commissioners revoked the operator’s licence and its two directors from holding a licence for a year. The company’s list of alleged offences cover weight restrictions, vehicle compliance (including bald tyres and faulty brake pads) and drivers’ continuous working hours. It was also criticised for parking and unloading. What has happened at Freshways mirrors events at Fio’s Cash & Carry, which has sites in Tottenham, north London, and Peterborough. The full story was published in Cash & Carry Management (October 2014), but just to remind readers, two directors were disqualified from any involvement with transportation for six months and the company was refused permission to use any vehicles of more than 3.5 tonnes. So while the role of sales director or marketing director of any C&C/wholesaler is vital, so too is that of the sometimes overlooked transport controller.

Mervyn Gilbert News Editor

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Address Winlove Publications Ltd PO Box 366 East Grinstead RH19 4ZE Tel (01342) 712100 Email mail.winlove@btconnect.com Fax (01342) 712101 Publisher Winlove Publications Ltd EDITORIAL Managing Editor Kirsti Sharratt News Editor Mervyn Gilbert Editorial Assistant Michael Catling ADVERTISING AND MARKETING Publishing Director Martin Lovell Media Sales Manager Clare Phillips 4,560 July 2013-June 2014 Audit Bureau of Circulations Printed by Bishops Printers ISSN 1352-254X All media rates and feature lists can be accessed online by visiting: cashandcarrymanagement.co.uk

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March 2015

05


[ INDUSTRY NEWS ]

Expansion for discounter SOS Wholesale, of Derby, which describes itself as ‘the UK’s premier delivered/C&C discount wholesaler’, has recruited Malcolm Grantham (right), 59, as business development manager as part of its plans for further growth. The company, a member of Sugro and Today’s Group, has a turnover of £30 million and delivers nationwide to independent stores and discounters, using its own van fleet and third-party distributors. It also exports to 20 countries across Europe, the US and Canada. Grantham joins SOS after seven years with wholesaler Crown Crest,

of Kirby Muxloe, near Leicester, which owns the Poundstretcher retail chain. Before that, he worked for Tetley Tea for 20 years in various sales and category management positions. Commenting on Grantham’s new role, SOS director Mark Beckett said: “This is part of our investment to continue the growth agenda we have enjoyed in recent years.

“Malcolm’s expertise in discount wholesale, cash & carry, independent and convenience customer management will help shape our forward strategy as we look to grow distribution of our 4,000 branded lines, as well as exclusive ranges such as Crucials Sauces. “We are also planning a move into the Irish market, which Malcolm will lead. “Additionally, we have launched a fleet of mobile showrooms. “We also offer web-based ordering and have a traditional sales office in Barnsley, where orders can be placed. And we promote 200 £1 lines every month through ‘Quidzin’ deals.” a SOS Wholesale (01332) 361761

MD for Blakemore C&C AF Blakemore & Son has a new managing director, Craig O’Connor (pictured), who will have specific focus on the company’s cash & carry business, which operates from 14 sites. O’Connor, who joins from Grimsby-based wholesaler DB Ramsden, reports to Sam Wilcox, who continues in his role as overall managing director for the company’s wholesale divisions. O’Connor was appointed Ramsden’s managing director in 2004. He also served as md of that company’s ReScan Epos Solutions from 2006. This is his second spell at Blakemore – Landmark Wholesale’s leading member – having worked in a variety of roles across the C&C operation between 1984 and 2003. 06

March 2015

Commenting on his return, he said: “While Blakemore remains a family business with strong values, we are perfectly placed to seize the opportunities that are out there. “I now want to share my experiences over the past few years, especially in relation to delivered wholesale,

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on-trade and the utilisation of IT solutions to help improve the overall customer experience.” Wilcox said: “I am delighted to welcome Craig back to Blakemore and I look forward to working with him once again as the company focuses upon its 2020 strategic goals. “He has a proven track record with a strong reputation across the wholesale C&C sector for introducing innovative approaches to business.” O’Connor’s appointment follows that of James Russell as Blakemore Wholesale distribution managing director (Cash & Carry Management last month). He too reports to Wilcox. a AF Blakemore & Son (01902) 366066

Contract extended 3663 Catering Equipment, part of Bidvest 3663, has gained a further contract to supply products including premium table-top and backof-house goods, bar ware, cooking appliances, crockery, cleaning materials and and uniforms to all Pizza Express restaurants in the UK and China. The three-year deal was awarded by the chain’s owner, China-based venture capitalist Hony Capital, which acquired the business from UK Gondola Group last year. The wholesaler’s equipment arm has been supplying Pizza Express with nonfoods for five years. The new contract, which starts in July and runs until the end of 2018, covers more than 430 sites in the UK and 22 in China. Around 20 more openings are planned in the UK over the coming year. Director of the equipment concern is Paul Knight, who was appointed recently to develop and align Bidvest 3663’s non-food and catering equipment categories. a Bidvest 3663 (0370) 3663 000


[ INDUSTRY NEWS ]

Well chosen name for pharmacy! Work has begun to rebrand the former Co-op Pharmacy chain – acquired by Bestway Group in October for £620 million – as Well Pharmacy. Chief executive of the combine is John Nuttall, who was managing director of the company when it was under Co-op control. Bestway Group chief executive Zameer Choudrey said that the plan is to spend £200 million on the stores over the next five years to develop the business. Much of this will go on recruiting ‘hundreds’ of staff additional to the present 6,500, increasing the range of instore services, including expert advice to walk-in customers suffering from a range of ailments, and fitting new fascias and adapting merchandising. There is also expected to be a substantial consumer

advertising programme to announce the relaunch. What the company has yet to say is whether all 780 sites will be retained, or whether some of the less profitable ones might be sold with a view to expanding the Best-one retail chain. There are certainly plans to acquire more pharmacies to rival brand leader Boots

John Nuttall and Zameer Choudrey with the new logo.

and to launch a wholesale arm for the business. Well Pharmacy’s headquarters is switching at a cost of £1.6 million to a redeveloped 22,000 sq ft listed building housing around 230 administration staff. It is anticipated that all the changes could result in the pharmacy chain’s turnover rising from the present £750 million to £1 billion by 2019. There is no mention yet of a new own-label chemists’ range. In recent months shop staff have been urged to dispose of unsold in-house goods at a steep discount. This could be paving the way for Bestway to launch the new own-label lines – possibly under the Well name – to sell alongside leading brands. a Bestway Group 020-8453 1234

Three regions become two Bidvest 3663 has restructured its operations, with fewer regional divisions and greater responsibility given to newly-appointed branch general managers. There are now two regions – north and south – with the Midlands area disbanded. Bob Rogers, who was previously managing director for the south, has been

given a new board position of executive director in charge of ‘key product and development areas’. Replacing him as southern region md is Dave Hodgson, formerly in charge of the Midlands. Norman Wemyss remains md for the enlarged northern region. There are 14 new general managers within the 22depot network. Most have

been promoted from regional sales controller or depot operations managerial roles. The changes, described as ‘part of a decentralisation programme, bringing us closer to customers’, follow the appointment of Andrew Selley as chief executive last year (Cash & Carry Management: July 2014). a Bidvest 3663 (0370) 3663 000

Takeover boost Confectionery C&C/wholesaler Hancocks last year increased turnover by 13.4% to £129 million, while customer numbers grew by more than 5,000 at the 20 branches. Chief executive Mark Watson attributed the upward movement largely to the purchase last year of JTS International, a confectionery wholesaler based in the West Midlands. “Additionally, our e-commerce venture has seen remarkable growth across the year, with annual sales up more than 60%. And some of our C&Cs have had outstanding performances, in particular Croydon, which serves a key geographic area around the south of London.” This month the Loughborough-based specialist unveils its 21st branch – in Rochester, Kent. The 14,000 sq ft unit is close to a Booker C&C. Three years ago the confectionery business was acquired for £50 million by H2 Equity Partners. a Hancocks C&C (01509) 216644

Group’s two-month wine festival Through its member wholesalers, SPAR UK is offering big savings on a range of branded and own-label wines during a two-month wine festival.

Running until 15 April, the group’s symbol stores are including deals such as Fern Hill sauvignon blanc at £5 (instead of the usual price of £7.99) and Perlezza prosecco

at £6 (normally £9). Three of the in-house brands are being featured in a television campaign. UK trading director Chris Lewis told Cash & Carry

Management: “The festival is a great event and can increase retailers’ wine sales by more than 10% during the promotional period.” a SPAR UK 020-8426 3700

www.cashandcarrymanagement.co.uk

March 2015

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[ INDUSTRY NEWS ]

Majority holding Bidvest Fresh, the fish, meat, produce and dairy operation of Bidvest 3663, has acquired a majority interest in Henson Foods, of north London, largely known for its speciality salt beef. The supplier, founded in Smithfield Market, London, in 1895, also deals in a wide range of fresh, frozen and ambient food, bought by wholesalers, restaurateurs and caterers.

One of its developing product areas is ‘gourmet’ burgers, of which more than one million were sold to independent operators last year. Henson’s managing director Andrew Brook and his executive team will continue to run the business, which has a total staff of 60 and a fleet of 15 vehicles operating across the south of the country. In the City and West End, the company operates a five or six-day delivery service. Brook told Cash & Carry Management: “I would stress that the arrangement involves us with Bidvest Fresh only and not the 3663 chain.” In the year to April 2014, Henson’s pre-tax profit increased by 31% to £372,000 on sales 8% ahead at £14.3 million. a Henson Foods 020-7609 2299 08

March 2015

Tough going for Bestway Annual returns for Bestway Group’s wholesale business showed little change on the previous year – pre-tax profit of £54.3 million (£54.2 million) on sales up from £2.34 billion to £2.38 billion. The figures contributed to group pre-tax profit (including banking and cement) moving up from £184.6 million to £267.1 million and turnover rising from £2.52 billion to £2.55 billion. Chief executive Zameer Choudrey referred to the “challenging business environment both in the UK and globally” and “challenges ahead of us”. Despite the situation, he said that the three major growth areas identified two years ago – retail symbols & clubs, online sales and foodservice distribution – are all progressing well. Best-one and Xtra Local now have over 4,300 members and annual turnover of £640 million. Bestway’s online business, which has more than 26,000 registered users, increased sales by 47.1% to £176.3 million, while the Bestway Batleys Foodservice operation has 23 contracts

One of three growth areas.

with local authorities, NHS hospitals, schools and private ventures. Tenders have been submitted for another 22. The C&C/wholesaler has also announced that total sales of deliveries to retailers grew by 22% last year to more than £650 million – around 25% of total C&C/wholesale income. Bestway Wholesale md Younus Sheikh referred not just to the Best-one progress, but also to online business, investment in new vehicles, a 50% expansion of the Coventry chilled food depot and more chilled and frozen food products. Sheikh said: “Although C&C is still the preferred

method to shop for many, more and more retailers are looking at delivered as their major source of supply.” The group’s Essentially Catering own-label range comprises over 50 everyday lines, helping foodservice turnover grow by 2.3% to £128.3 million. The former Sher Brothers C&C in Glasgow now trades as a dual-branded Bestway Batleys unit with 100,000 sq ft of sales area. And following a £10 million investment programme announced two years ago, the group now has over 500 Best Pets stores in the UK. a Bestway Group 020-8453 1234

More products from Fairway Fairway Foodservice continues to increase its range with the launch of 21 additional products. They include Scottish seeded salmon, prawn kievs, crab & lobster burgers and six bakery lines. Among the suppliers are King Asia, Pacific West, Paramount, Five Star Fish, Kara,

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Gourmet Island and Delifrance. Purchasing manager of the 17-member group Keith Hepton (pictured) said: “These new products were voted for by wholesalers at our September ‘Meet the Member’ event. “Last year, occasions such as this generated £1.3

million in business. “We are now preparing for our first event of this year (mid-March). This will see even more product lines added to our order book. “We are striving to ensure that all products available through Fairway Foodservice are recognised as the benchmark other buying groups aspire towards.” a Fairway Foodservice (01422) 319100


[ INDUSTRY NEWS ]

Bidvest foodservice soars Results from Bidvest Group for the half year to the end of December show that the UK foodservice division of the Johannesburg-based concern increased trading profit by 45% to R521.5 million (£29 million) on sales up 24% to R23.9 billion (£1.33 billion). In the rest of Europe, foodservice contributed trading

profit up 69% to R341 million (£19 million) on sales of R12.7 billion (£700 million) – 27% higher. The group’s ‘breadth and geographical reach’ in foodservice were expanded with the £95 million purchase of a 60% stake in Gruppo DAC in Italy and a controlling interest in UK chilled specialist

PCL, of Hatfield, Herts. The board said that in the UK, Bidvest 3663 “exceeded expectations, with strong focus on customer profitability maintained”. Bidvest Fresh UK was expanded last year with the purchase of McKenna Fish Sales, of Dublin. a Bidvest UK 020-7493 4733

Wing Yip promotes young talent For the third year, ethnic foods specialist Wing Yip hosted the Oriental Cookery

Young Chef of the Year competition. The award went to

Winning chef Gemma Field with (l to r): Henry Yap, W Wing Yip OBE and Brian Yap.

Gemma Field, who works for the NEC Group, which operates from three sites in Birmingham. Field, who competed against 14 other finalists in the bake-off at University College, Birmingham, won with her entry of a lobster combination and chicken crown poached in jasmine tea. She will go on a trip to Hong Kong, where for part of the time she will work in Michelin-starred restaurants. a Wing Yip 0121-327 6618

Son takes the reins at Birchall Justin Birchall has become managing director of Birchall Foodservice, which recently moved to new premises on Burnley Bridge Business Park (Cash & Carry Management: January). He takes over from his father Colin, who has assumed the title of executive chairman. Colin Birchall said: “Following the successful development of the new premises and the associated operational organisation, both of which were overseen by Justin, his appointment as managing director is both

You’re kidding! Bestway Wholesale is running a March promotion for its Buddies kids’ products. The ‘one coin’ confectionery lines and bottled drinks at 30p per 330ml bottle are offering 50% profit on return. The halal-certified sweets are selling at £2.49 while the wholesale price of the drinks has been reduced by 20% to £1.39 for 12 bottles. The 10p cup drinks range is available at 99p for 24 units. a Bestway Group 0208453 1234

Charity link-up Palmer & Harvey has agreed a two-year deal as distribution partner for the Marie Curie Great Daffodil Appeal, which last year raised £8.3 million. It is expected that the arrangement will save ‘thousands’ in storage and distribution costs. a Palmer & Harvey (01273) 222100

Staff awards

Justin Birchall

Colin Birchall

timely and appropriate. “These changes will ensure that the company is well positioned to continue its growth in both turnover and profitability in the future.” Family-owned Birchall

Foodservice has depots in Burnley, Wrexham, Durham, Sheffield and Stafford. Established in 1939, it is a founder member of Country Range Group. a Birchall Foodservice (01282) 429446

Chris Lewis, Creed Foodservice’s produce buyer, was designated employee of the year at the company’s first awards dinner for staff. Holly Earl was named manager of the year, and warehouse manager Stan Earnshaw won the company’s ‘Think Customer’ award. a Creed Foodservice (01452) 857555

www.cashandcarrymanagement.co.uk

March 2015

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[ INDUSTRY NEWS ] Culinary show Celebrity chef Chris McGowan, who has appeared on TV’s The Great British Menu and is a former head chef of Corrigan’s Restaurant in London, hosted a ‘culinary masterclass’ on the Brakes stand at CATEX 2015, held in Dublin last month. He demonstrated a range of dishes using the wholesaler’s products. a Brakes Group (01233) 206000

Finance boost Ascot-based drinks wholesaler Interbev UK, which generates more than half of its £56 million turnover from exports, has secured a £9 million funding package from Lloyds Bank to support its plans for development. a Interbev UK (01344) 294170

Wide margins Today’s Group has launched the second phase of its ‘Margin Maker’ promotion. Member wholesalers are offering customers Today’s Select products with a 40% profit on return. They will then be selling the group’s Essentials range at a 50% POR. And Blue Boar spring water will be available with a 60% POR. The campaign finishes with a ‘Best of the Best’ deal, giving retailers deals on selected ownbrand lines. a Today’s Group (0844) 247 0700

10

March 2015

Drop shipment restructure Bestway Group’s Best-one operation has reorganised its drop shipment scheme following the retirement of Steve Gasgoigne, who has left the company. IDC, which specialises in drop shipment and supply chain logistics, and which has worked with Gasgoigne for three years to source local and regional products for Best-one stores, has now assumed direct responsibility for all drop shipment activity for the symbol chain. Over the coming months, IDC will also be working with more than 300 suppliers across chilled, fresh and

frozen food, greetings cards, stationery, cakes and morning goods. James Hall (above), Bestway symbol director, said: “Steve’s retirement offered us the ideal opportunity to look afresh at our drop shipment model. IDC, which already has an excellent working relationship with us, was the logical and

perfect choice to continue the fantastic work it has been doing.” Commenting on the benefits of drop shipment, Hall said: “Retailers keep telling me that they want to spend more time planning and developing their business. Yet some of them continue to make life complicated for themselves by dealing with a myriad of suppliers across a multitude of categories.” In a new development, Bestway has announced that following a trial in Scotland and the north of England, Bobby’s, van sales distributor of confectionery and snacks, is now available to customers nationally through drop shipment. a Bestway Group 020-8453 1234

Learning about C&C/wholesale Today’s Group member Imperial Cash & Carry played host to a group of recent recruits at suppliers including Premier Foods and Ferrero. Arranged by the FWD, the educational initiative was to show the newcomers how C&C/wholesaling operates. David Visick, the trade body’s director of communications, told visitors that the channel offers a lucrative market for manufacturers and good career prospects for staff. Simon Gray, managing director of Boost Drinks, said: “Previously, cash & carry/wholesale was a breeding ground for talent, with the best people moving on to the multiples. But that is no longer the case; the retail landscape is changing.” Imperial C&C operates

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from a 45,000 sq ft depot in Edmonton, north-east London, and has a turnover of £56 million. In addition to being shown round the aisles, the visitors were given an insight into how the Today’s retail club works and were able to look round the company’s new Meridian Grand banqueting suite. Visick commented: “We hope we gave attendees a

good case to go back to their senior managers and encourage them to give C&C/ wholesale greater focus, investment and resources.” FWD chairman Martin Williams said: “We’ve had a fantastic response from suppliers and we hope to hold these visits up to four times a year.” a FWD (01323) 724952 a Imperial Cash & Carry 0208807 2211


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*also available in price marked packs. **£3 contribution. Terms & Conditions apply. ***IRI 52 w/e value sales 01/02/15. © 2015 Kellogg company


[ INDUSTRY NEWS]

Bestway lauds top achievers at Performance Awards

FWD unveils theme and speakers for conference Growth in the wholesale channel through co-operation and communication will be the theme of the FWD’s annual conference, The Whole Story, on 14 July. With supermarkets losing their influence over consumers, the FWD will make the case for greater investment in partnerships with its members and the 400,000 small retail and foodservice businesses they supply and support. The event will feature an exclusive insight into the wholesale sector, plus an in-depth analysis into the findings of the FWD Supplier Council, which has been looking at closer co-operation between suppliers and wholesalers. Booker chief executive Charles Wilson, Parfetts chairman Steve Parfett and Today’s Group managing director Bill Laird will be part of a 10-strong list of speakers taking to the stage. The event, which will be hosted at St George’s Park, Burton-upon-Trent, runs in conjunction with an awards dinner, which will be held in the evening. a FWD (01323) 724952

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March 2015

Over a dozen individuals, teams and depots were honoured at Bestway’s annual Performance Awards earlier this month, with David Howe and Sajid Mahmood scooping the top two awards for a second successive year. Howe, general manager of Bellevue Edinburgh, was presented with the Group Overall Manager of the Year prize, while Mahmood, who heads Bestway Manchester, collected the Group Overall Branch of the Year award in front of almost 500 guests at the Marriott Hotel Grosvenor Square, London. The ceremony acknowledged the contribution of depot staff, managers, suppliers and head office departmental personnel who had excelled in 2014 and driven growth in their respective areas. Howe (below, left), said: “To have won the award for the second year running is fantastic recognition of the work

‘David [Howe], Sajid [Mahmood] and all the other winners are excellent examples of the talent pool we have within the business’ – Zameer Choudrey, chief executive of Bestway.

that the team at Bellevue has put in over the past year. At Bellevue, we pride ourselves not only on offering the best possible prices and range, but also on the level of service and assistance we offer customers.” Mahmood was equally delighted with his award and said: “To win the top accolade again is overwhelming and a testament to the work and dedication put in by staff in our depot.” Chief executive at Bestway

Zameer Choudrey also paid tribute to his team: “David, Sajid and all the other winners are excellent examples of the talent pool we have within the business. “The annual Performance Awards are incredibly important to us as they offer us an opportunity to recognise those within Bestway and Batleys who have made an outstanding contribution to our success and showcase to our supplier partners the talent that will be driving our mutual businesses in the coming years.” a Bestway Group 020-8453 1234

Bestway Performance Awards – roll of honour Group Head Office Employee of the Year Zahir Fazaldin, facilities & property controller Group Head Office Department of the Year Digital department Group White Pearl Branch of the Year Bestway Batleys Glasgow Group Best-in Branch of the Year Bestway Aintree Group Catering Branch of the Year Batleys Aberdeen Group Catering Special Achiever’s Award Billy Rhind, sales manager, Bestway Batleys Foodservice Group Export Depot of the Year Bestway Abbey Road, Park Royal, London

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Bestway Branch Manager of the Year Sarbjit Singh Ubhey, Bestway Leicester Batleys Branch Manager of the Year Robbie Reid, Batleys Newcastle Group Overall Manager of the Year David Howe, Bellevue Edinburgh Bestway Branch of the Year Bestway Swansea Batleys Branch of the Year Batleys Cleveland Group Overall Branch of the Year Bestway Manchester Most Innovative Supplier of the Year Heineken UK Overall Supplier of the Year Barr Soft Drinks


[ BEHIND THE SCENES ]

Delivering improvements Bidvest 3663 continues to implement aspects of its heavily-budgeted development programme, involving depot restructure, vehicle modernisation and staff education. s the cash & carry/wholesale trade keenly awaits news of further improvements planned by Bidvest 3663 – which could be announced next year – the company continues to implement phase two of its multi-million-pound development programme. The schedule has already seen expansion at the Hoddesdon, Herts, depot of its Swithenbank Foods offshoot, the opening of a 121,000 sq ft multi-temp unit in Wakefield, West Yorks, the unveiling of an enhanced

A

Six months ago, the wholesaler launched a ‘Food Champions’ scheme – an idea that was in place before Andrew Selley took over from Alex Fisher as chief executive. The company says the aim was to find super people who work at branch level and get them to educate their colleagues, such as lorry drivers and telesales staff, about all parts of the business. The programme includes tasting the products they distribute. There are now 18 of these advisors across the country – ex-chefs who work

‘Our customers are passionate about what they do. Our staff have to be the same’ Graeme McKenzie, head of offer development, Bidvest 3663 87,000 depot in Bicester, Oxon, and, most recently, the opening of a 170,000 sq ft regional distribution centre in Chepstow at a cost of £16 million. Chepstow and Wakefield are two of four RDCs; the others are at Reading and Paddock Wood, Kent. There are also two sites dedicated to catering equipment – Glasgow and Bristol. Besides the bricks and mortar, the £2 billion turnover delivered wholesaler has been refining other aspects of its business. Modernising the refrigeration is high on the agenda, and new equipment, like that installed at the Manchester unit two years ago, is under consideration at several branches. Vehicle upgrading and closer relationships with customers are other important factors. The developments are extensive and designed to ensure that the company’s offering meets customers’ needs and expectations. In line with this, a wholesale survey is conducted every year among customers at branch level. One of the team helping Bidvest 3663 work more closely with its customers is Graeme McKenzie, who is head of offer development. “It’s about understanding our audience,” he says. “That’s what makes it easier to do business.”

in the sales team and who can pass on their knowledge to colleagues and customers. For drivers this might mean just a 10minute induction, with them carrying some samples on their wagon, while for sales personnel it could be more indepth tuition. Says McKenzie: “Our customers are passionate about what they do. Our staff have to be the same. It’s all about evolution and not necessarily strategy.”

Bidvest 3663 also stresses the importance of maintaining the best possible transport fleet. The 850 multi-temp vehicles, which make around 50,000 deliveries a week, are regularly upgraded. About 200 of the Bidvest 3663 fleet are presently of Euro 5 or the newer Euro 6 standard. If and when they are superseded by the Euro 7 mark, the company says it will make further changes. The efficiency of electrically-operated transport is also being tested. Other environmental initiatives include solar panels at the Chepstow depot, which means a reduction in carbon emissions; water saving measures; and manually-operated depot doors rather than electronic ones that open automatically when they sense someone approaching. Bidvest 3663’s major national accounts include Pizza Express, Travelodge, Subway and the Ministry of Justice. Last year the company was successful in winning 75% of the accounts for which it submitted tenders. As Bidvest 3663 begins to enter stage three of its development programme, more contracts, further vehicle modernisation and depot refinements will be high on the agenda. CCM

3663 is experimenting with electric vehicles.

www.cashandcarrymanagement.co.uk

March 2015

13


[ SPOTLIGHT ]

sponsored by

Philip de Ternant, managing director of Creed Foodservice frustration. Another has to be how compliant the UK always is to EU legislation when compared to other countries. If you were able to retire tomorrow, would you? If I couldn’t add value to my team, if I were not enjoying work any longer or if my health limited me, then yes. If I did retire, I would want to see more of the world in an attempt to understand what life is all about, as it’s still a mystery to me!

‘Learn from failings and become stronger’ What has been the major milestone or turning point of your career? If you are able to learn from failings and use them as career and character-building milestones, then you can move forward with strength. A few of my lows have therefore become milestones, such as the loss of the £125 million-peryear MoD contract (see box). Another milestone was working with Compass on the 15th Asian Games in Doha. Who has been the biggest inspiration to you? My father, who worked hard with passion and loyalty for over 40 years with Exxon, and Fred Barnes, my boss for many years in my early career at 3663. How do you maintain a work/life balance and how have developments in technology affected this? Work/life balance is key and something you really only appreciate as you get older. I enjoy walking our boxer dog across the fields, reflecting on the week and planning ahead. I also follow Crystal Palace FC – the team my father first took me to watch – and have vowed this year to attend more matches. Sadly, my iPhone is always with me, keeping me 14

March 2015

What advice would you give someone starting his/her first job? Enjoy what you do and remain professional, whatever the circumstance. The industry we work in is small and quite incestuous. One never knows who your next customer or boss might be.

in touch with the business, suppliers, clients, friends and family alike. (De Ternant is pictured above with his wife Jane.) My only discipline is to leave it on charge in the kitchen when I go to bed.

What type of business would you go into if it wasn’t C&C/wholesale? Not being able to sing, play an instrument or be a sportsman, it’s a difficult question, so I think the only business would be property development, but I should have started years ago.

What most frustrates you in business and in life generally? I do believe I have become more tolerant than I used to be. That said, people who are rude, ignorant, self-opinionated and love the sound of their own voice to the extent of talking over people is one

If you had a million pounds to invest, how would you spend the money? I believe that caterers want more choice, so to invest in a business to compete with the big two and give caterers more choice of supply would CCM have to be a good investment.

Broad experience in foodservice wholesale After gaining various qualifications in food and hospitality at college, Philip de Ternant worked at the Selsdon Park Hotel, Croydon, for 18 months as assistant food & beverage manager. He then joined Vincent Sorge Wholesale as territory sales manager. Over the next decade, VSW went through a series of acquisitions and de Ternant gained several promotions, including national sales controller for both Pullman Foods and Booker Foodservice in the mid ’90s.

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Following the Bidvest acquisition and the name change to 3663, he became regional director responsible firstly for the profit and loss of five multi-temp distribution centres and secondly for the worldwide food supply contract to the MoD. With the loss of this contract in late 2006, de Ternant took six months out to catch up with his family. He then joined Creed Foodservice as operations director, and in January 2014, he was appointed to his current role of managing director.


Call our customer services on 01925 220122 Source: Nielsen, Total Coverage Flavoured Carbonates MAT 6.12.14


[ EMPLOYMENT LAW ]

New ‘Fit for Work’ service to address sickness absence Meet the HR expert Cate Ritchie, 121 HR Solutions Cate Ritchie is a fellow of the Chartered Institute of Personnel and Development

early a million employees a year are absent from work for more than four weeks and employers face an annual bill of around £9 billion for sick pay and associated costs. In response to these figures, the Government is to introduce the ‘Fit for Work’ service from April 2015. This will provide health and work advice through a website and telephone line and free referral for an occupational health assessment for employees who have reached four weeks of sickness absence. The service is designed to help these employees return to work sooner. There are two elements to the ‘Fit for Work’ service: Assessment Once employees have reached, or are expected to reach, four weeks of sickness absence, they will be referred by their own GP for an assessment by an occupational health professional, who will examine all the issues preventing them from returning to work. Employees will be contacted within two working days of a referral by the GP or employer. The assessment will usually take place over the telephone. Advice Employers, employees and GPs will be able to access advice through a telephone line and website. After an assessment, employees will receive a ‘Return to Work Plan’, which will include advice and recommendations to help them return to work more quickly. Subject to the employee’s consent, a case manager conducting the assessment may deem it appropriate to contact an individual within the

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organisation (e.g. the employee’s line manager) to discuss factors that might help to develop the ‘Return to Work Plan’. The Plan acts as evidence of sickness absence so the employer will not need to request a fit note during the period covered by the ‘Fit to Work’ service. Employers do not have to follow the recommendations in the ‘Return to Work Plan’, but failure to do so could cause legal issues in some cases, particularly if the employee is disabled or if

the employee is dismissed or unable to return to work. The service should be useful to those small and medium-sized businesses that do not have ready access to occupational health services. Some concern has been raised that the new service will replace the existing occupational health services, but the Department for Work & Pensions insists that ‘Fit to Work’ is intended to complement, not replace, other services. The Government is paying for the new service by diverting the way it funds sickness – with effect from 6 April 2014, employers can no longer reclaim statutory sick pay and are now wholly responsible for funding the sick pay CCM paid to absent employees.

121 HR Solutions provides employers of all sizes with professional, cost-effective human resource support. If you need further guidance about managing employee absence or any other HR issue, please contact Cate at cate@121hrsolutions.co.uk or phone (0792) 121 3890.

Fit for Work: considerations for employers • Remember that the focus of the ‘Fit for Work’ service is early intervention – to enable employees to return to work promptly.

• Note that use of the ‘Fit for Work’ scheme could offer significant savings on current occupational health costs that are paid for privately.

• In order to accommodate the loss of refunded sick pay (since April 2014), keep accurate records of absence and statutory sick pay (SSP).

• Update sickness absence policies to reflect the availability of ‘Fit for Work’ and any potential interactions with the workforce.

• Train managers about the new service and their potential responsibilities. • Consider making a referral to an assessment if a GP has not already referred. • Consider how to support recommendations in a ‘Return to Work Plan’.

www.cashandcarrymanagement.co.uk


new

d e t i m i l edition

ngo Pe a c h & M a

FRUIT SHOOT IS THE NO.1 SELLING KIDS BRAND IN IMPULSE! 1 FRUIT SHOOT NAS HAS GROWN BY AN EXTRA £3M IN IMPULSE IN THE LAST YEAR1

NO

ADDED SUGAR NO ARTIFICIAL COLOURS OR FLAVOURS

STOCK UP NOW! 1

Source: AC Nielsen Total Impulse Value sales MAT 20.12.14 vs YA. Contains naturally occurring sugars. BRV301816_15


[ IN FOCUS ] EXCLUSIVE INTERVIEW

One man, one goal, one vision: Martin Williams’ drive for success urveying the foyer of the Institute of Directors (IoD) in Pall Mall, London, there is a chaotic sense of urgency which is indicative of those who live life at 100 miles an hour. There is little to hide the unerring pressures associated with the role of a managing director, let alone the accountability that results when a company hits the headlines for the wrong reasons. But as I traipse upstairs into a private room where Martin Williams is waiting, there is a refreshing air of calmness which juxtaposes the overwhelming freneticism downstairs. Unlike many of his counterparts, Williams is currently juggling two highprofile roles and will celebrate his one year anniversary as chairman of the FWD next month. With meetings scheduled for the rest of the day, it is symptomatic of his hectic workload that this interview has already been rearranged twice to accommodate FWD and Landmark commitments. But while he admits that he found the prospect of performing both jobs “quite daunting initially”, he appears to be relishing life on the board of two influential bodies. “It is hard to believe it has nearly been a year since I replaced Guy [Farrant],” confesses Williams. “It has been a challenge but I have worked really hard to make sure the two roles do not interfere with each other. “The real success story at the FWD

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‘We are now filling the gaps and trying to create the right shopping environment to give customers what they want’ – Martin Williams, managing director of Landmark.

has been the Supplier Council. We always believed there was a need for a forum for suppliers and wholesalers to work together outside of trading and the sector is now reaping the benefits.” Despite receiving several plaudits during his tenure, Williams remains coy about whether he would be willing to extend his stay beyond the customary two-year period. Swatting away a series of probing questions with an inscrutable smile, he wears the face of a seasoned poker player as he turns his attention back to Landmark. Yet beneath his otherwise considered and calm exterior, he exudes a subtle charisma during more light-hearted discussions and beams with pride as he discusses Landmark’s recent results. The group reported “strong growth” across all categories in January, with overall sales out from depots rising by 10% between May 2014 to January this year, compared to the corresponding trade period. Williams heralds “significant reinvestments” by the likes of Blakemore Wholesale, Hyperama Wholesale and JJ Food Service in driving growth across its entire membership. He also highlights a 13% increase in Lifestyle Express sales for 2014, led by the group’s “core range obsession”. “The feedback from suppliers has

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been really positive and has been far better than I imagined it would be,” explains Williams. “We decided core-range compliance was going to be our point of difference and all our strategies and tactics have been focused on this. “We are now filling the gaps and trying to create the right shopping environment to give customers what they want.” Moving forward, Landmark has targeted a greater share of the foodservice market in 2015, supplemented by an increased focus on offering more routes to market and development opportunities for suppliers. Williams pays tribute to Landmark’s board members for their open-minded and proactive approach to supporting several big initiatives to help keep the group ahead of the market. Citing Landmark’s best data system in the industry, there is little to hide his optimism as he speaks glowingly about the “remarkable transformation” of Abra Wholesale and Sutaka UK since joining the group last year. The disappointment of losing four prospective members to Today’s Group last year appears long gone, and judging by the spring in his step as he scampers across London for his next meeting, he already has enough commitments to CCM keep himself occupied.


[ ACHIEVERS ]

Top 29 final results

FOUR-MONTH AVERAGE

For the first time, Whyte & Mackay has won the Achievers ‘Best Overall Service’ award.

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March 2015

POSITION

COMPANY

SCORE (max. 50)

POSITION LAST YEAR

1

Whyte & Mackay

41.74

13

42.20

1

2

AG Barr

41.67

1

41.85

2

3

Maxxium

40.70

5

41.69

3

4

Tunnock’s

40.66

3

39.77

4

5

Heineken

38.78

7

37.83

8

6

C&C Group

38.67

14

37.94

7

7

Imperial Tobacco

38.37

10

39.10

5

8

Diageo

38.17

15

37.74

9

9

Tayto

38.14

12

37.67

10

10

JTI

37.31

4

38.71

6

11

Red Bull

36.44

19

37.33

14

12

Coca-Cola Enterprises

35.86

6

37.40

13

13

Nestlé 1st Choice

35.80

8

37.55

12

14

Mondelez

35.74

11

37.64

11

15

Mars

35.49

24

35.85

15

16

Unilever

35.30

25

33.09

23

17

Lucozade Ribena Suntory

35.29

17 (GSK)

35.73

16

18

Cott Beverages

34.43

20

35.60

18

19

PepsiCo

34.27

16

35.64

17

20

Premier Foods

34.10

N/A

33.69

22

21

Pernod Ricard

33.90

N/A

33.85

21

22

Highland Spring

33.64

9

34.86

19

23

AB InBev

33.45

N/A

34.03

20

24

Kellogg’s

32.10

23

31.28

27

25

Danone

31.81

N/A

32.13

25

26

United Biscuits

31.49

22

30.70

28

27

Molson Coors

31.41

N/A

31.96

26

28

Bacardi Brown-Forman

30.96

N/A

30.20

29

29

Britvic Soft Drinks

30.44

2

32.96

24

www.cashandcarrymanagement.co.uk

NOVEMBER ’14 score/position


All at Whyte & Mackay would like to thank our Scottish customers for voting us winners of the 2015 Scottish Wholesale Association Best Overall Service Award


[ ENERGY DRINKS ]

Revitalising the category Sugar intake might rank as public enemy number one, but with low-calorie and zero-sugar propositions inundating the energy drinks market, consumers are becoming increasingly magnetised by the performance-enhancing benefits. Michael Catling reports. ategorised by many as the star performer in the soft drinks market, energy drinks continue to propel skywards, with sales rising from 454 million litres to an estimated 550 million litres between 2011 and 2014. Mintel research projects that this figure will increase to 647 million litres in the next four years, driven by threequarters of British consumers admitting that they are more fun to be around when they are feeling energetic. Unlike with carbonates and kids’ drinks, any health concerns linked to energy drinks are often outweighed by the mental and physical benefits (albeit in small doses). The fact that many athletes remain reluctant to associate themselves with brands that fail to adhere to a healthy or energy-boosting remit also acts as a glowing endorsement. As a result, many brand owners are now propelling celebrity ambassadors to the forefront of every product launch, thereby enticing easily-influenced and imageconscious consumers to trial the product. Factor in the effectiveness of embedded marketing mechanisms, coupled with on-pack

C

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sponsorship agreements, and it is easy to see why the total sports and energy sector currently ranks as the number one category within the soft drinks market (grocery multiples excluded). Red Bull, which is growing ahead of the category, attributes its 6% volume and 3% value growth to a 16% sales increase across symbol stores, with its diet drink range driving trial and repeat purchasing rates. Red Bull boasts three of the top 10 branded SKUs in the diet energy sub-category, with Red Bull Sugar Free Original 250ml positioned as the market leader and Red Bull Zero Calories ranked third. To build on the successful launch of its Zero Calories variant last year, the UK’s number one functional energy drink brand has introduced Red Bull Tropical Editions to the UK market – its best-selling edition in the US, Canada and Austria. Available in four-can multipacks (rsp £4.49) and plain and price-marked 250ml variants (rsp £1.19), the launch taps into the popularity of tropical flavours, a key growth driver within the sector (IRI).


[ ENERGY DRINKS ]

Gavin Lissimore, Red Bull head of category marketing, comments: “Red Bull Tropical Edition has one of the best tastes in the energy market, as well as significant stand-out on shelf, to help deliver increased sales for the brand, the category and our customers.” The launch is backed by a plethora of sampling, abovethe-line and shopper activation schemes for 2015, supplemented by a programme of “ground breaking” events. A new marketing campaign has also been announced to leverage Red Bull’s social media presence, while 50,000 people will be sampled at key occasions, including the returning Red Bull Air Race and Red Bull Soapbox this summer. All data unless otherwise stated: IRI

Stimulating demand Coca-Cola Enterprises (CCE) reports that the growth of subsegments has contributed to 4.2% sales growth across the energy drinks sector, with consumers favouring alternative variants to original propositions. Dave Turner, trade communications manager at CCE, says that consumers are now searching for different energy drinks to meet different needs, with suppliers investing in new flavour combinations, multipack formats and reduced sugar and zero-calorie options. As a result, cash & carries are advised to stock a mixture of regular and lights variants, while also tapping into a 13.3% sales growth of future consumption packs across independents and symbols. “Energy drinks are no longer just an impulse for shoppers, as they are increasingly looking for larger pack formats that can be taken home,” explains Turner. CCE reports that its Monster Energy brand grew by 11.6%

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March 2015

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last year, with sales surpassing the £100 million barrier. Turner attributes these figures to a big focus on multipacks, with the introduction of sub-brand variants, such as energy & soda or energy & tea, helping to reflect changing consumer buying habits. This corresponds with the recent introduction of Mega Monster, a new 553ml format of the best-selling Monster Energy (Green) can with a resealable cap (rsp £1.59). To supplement the expansion of its Monster Energy range, CCE recently announced that the brand will be continuing its partnership with the Call of Duty franchise in 2015 by supporting its latest release, Call of Duty: Advanced Warfare, with a new on-pack promotion. To conclude CCE’s spring activity, a new Mango Ultra variant has been added to its zero calorie Relentless portfolio. The range extension, retailing at around £1.39, reflects research carried out by Marketing Sciences showing that a mango flavour has the widest appeal to the core Relentless target consumer. The move follows the relaunch of Relentless Origin Ultra variant last year, which went on to become the brand’s second fastest selling product last year. Caroline Cater, operational marketing director at CCE, says: “The energy drinks sector is continuing to grow, with lights proving to be increasingly popular and growing twice as fast as regular variants. “Relentless has a proven track record in delivering successful innovation to retailers, and Mango Ultra is set to help them drive sales by offering further choice in the zero sugar energy drinks segment.” All data unless otherwise stated: Nielsen


Available at all branches www.bulldogenergydrink.co.uk

HYPERAMA

WHOLESALE

Trade enquiries welcome

and many other leading wholesalers.


MUSIC TO YOUR TASTEBUDS The demand for zero calorie energy drinks is booming,* so we’ve added a new name to our line up. Introducing New Relentless Mango Ultra, the latest release in the hugely successful Ultra range.** Make sure you stock up now. It could be your new star performer.

ULTRA FLAVOUR. ZERO CALORIES. FACEBOOK.COM/RELENTLESSENERGY TWITTER.COM/RELENTLESSDRINK RELENTLESSENERGY.COM RELENTLESS ENERGY DRINK IS A REGISTERED TRADE MARK OF THE COCA-COLA COMPANY. *AC Neilson ScanTrack. WE 22.03.2014 **AC Neilson Num ROS Mar-Jul 2014 vs Prior


[ ENERGY DRINKS ]

The bigger, the better Energy represents the fastest growing soft drinks category in impulse, according to Nielsen, with big can flavours driving growth at more than 52% by value sales. Adrian Troy, head of marketing at AG Barr, maintains that Rockstar has revolutionised energy drinks since its launch in the UK seven years ago, fuelling the trend for big can flavours. Over the past three years, revenue across Rockstar 500ml variants has exceeded £60 million, with the brand currently boasting seven of the top 10 fastest selling 500ml big cans in the impulse channel (Xdurance Blue, Punched Guava, Bubbleburst, Punched Fruit Punch, Original, Juiced and Punched Pure Zero).

‘Energy drink consumption is greater in the 16-24 years age group and brand image is a really important factor for these consumers’ Adrian Troy, head of marketing, AG Barr Troy says that cash & carry outlets need to capitalise on this wider trend by “giving energy drinks the space they deserve”, with a particular focus on more flavoured products and low-calorie variants, which are up by 17% year on year. “Offering a choice of formats is a critical component,” explains Troy. “A 250ml can delivers the functional impact, whereas a 500ml variant combines the benefit of function with a long, refreshing drink. The growth of flavours in 500ml has also supported this.” To exploit 10% growth across flavoured energy drinks last year, AG Barr recently introduced two Rockstar Energy Water variants: Blueberry, Pomegranate & Acai and Peach. 28

March 2015

www.cashandcarrymanagement.co.uk

1

Red Bull Original 250ml (£124,204,912)

2

Monster Energy Original 500ml (£59,645,924)

3

Lucozade Energy Orange 500ml (£57,490,352)

4

Private Label Original 250ml (£48,094,320)

5

Lucozade Energy Orange one-litre (£43,417,740)

6

Lucozade Energy Orange 380ml (£41,130,044)

7

Relentless Origin Original 500ml (35,240,012)

8

Red Bull Original 355ml (£28,500,120)

9

Lucozade Energy Original 500ml (£27,053,400)

10

Red Bull Sugar Free Original 250ml (£24,843,994)

Supported by brand-sponsored sampling events and a heavyweight digital and social media campaign, the 330ml cans are aimed at opening up new consumption occasions, such as lunchtime and after-exercise. As a result, Troy advises cash & carries to position Rockstar Energy Waters (rsp £1.69) between standard energy drinks and water. “Cash & carry outlets should stock branded energy drinks which are trusted by consumers to deliver quality, taste and promised energy-giving properties,” he says. “Energy drink consumption is greater in the 16-24 years age group (GB Omnibus, May 2012) and brand image is a really important factor for these consumers.” Troy highlights vibrant packaging designs and associations with properties, such as extreme sports and music, as key purchasing decisions for younger and more impressionable shoppers. “These sustained support packages from energy drinks, such as Rockstar, are key to the massive category growth, as they build brand equity and awareness which translates directly into sales,” he concludes. All data unless otherwise stated: Nielsen

An unmissable opportunity Cott Beverages has warned cash & carries that they risk losing out on a “market leading rate of sale” by failing to stock Emerge Energy and Emerge Zero, the second-biggest summer soft drink launch of last year (Kantar). Calli O’Brien, brand manager at Emerge, reports that the brand achieved a value growth rate of 30% last year, with Emerge Energy and Emerge Zero delivering the highest branded functional energy rate of sale in the market. “The entire functional energy market grew at a rate of 4% over the time period, so the figures show we’re outperforming the sector by a significant margin,” says O’Brien. “Key to our success has been our consistent focus on the delivery of the core product. This, coupled with real marketing insight and

Table data: IRI 52 w/e 24/01/2015

Top 10 energy drinks by GB value sales


* FROM THE UK’S NO.1 SPORTS AND ENERGY BRAND

(1)

Lucozade now accounts for 5.6% of Total Soft Drinks.(1) The soft drinks market in Impulse is worth £1.8bn with half of all the growth being driven by price marked packs.(2)

BUY NOW – WHILE STOCKS LAST *Recommended retail price only; (1) Nielsen, Total Coverage, MAT Value share 3.1.15, Lucozade Sport & Energy (2) HIM Research, 2015; LUCOZADE, LUCOZADE ENERGY and the Arc device are registered trademarks of Lucozade Ribena Suntory Limited.


[ ENERGY DRINKS ] informed, category driven NPD in the form of Emerge Zero, has enabled us to achieve real standout and a market leading rate of sale, in turn transferring this focus to our retailers.” To replicate the brand’s success last year, Cott Beverages has announced that Emerge will benefit from a huge media campaign this summer, with a clear focus on new and exciting opportunities to help drive sales.

up 20% year-on-year in December, Gray has announced that Boost will continue to work very closely with buying groups and individual retailers to develop growth strategies that bring incremental value. This will be supplemented by consumer promotions, merchandising support and the brand’s biggest ever nationwide sampling campaign.

Strength in numbers

All data unless otherwise stated: IRI

A hive of activity Boost Drinks has revealed a significant promotional investment for 2015, led by a consumer and trade marketing campaign. Entitled ‘Bad Things Happen When You’re Tired’, the promotional push is designed to “recruit new drinkers by grabbing their attention and then hitting them with the brand’s proposition – great taste at a great price,” says Simon Gray, managing director at Boost. “This year, we expect competition to continue and for there to be a whole host of factors affecting the market, including more e-commerce, the increasing importance of community, legislation and the continued rise of the savvy shopper,” admits Gray. “Our opportunity is to use our independent status and mindset to continue to innovate and to ensure that we offer real points of difference to the trade and consumers alike.” This growth is reflected in macro trends, according to IRI research, which indicates that more customers are shopping closer to home in convenience stores and making fewer trips to out-of-town superstores. To help build on a record-breaking end to 2014, with sales

Lucozade Ribena Suntory has reintroduced a 79p price point across a broader range of Lucozade flavours for 2015, available exclusively to convenience retailers. The price flash will be displayed across eight popular Lucozade Energy 380ml formats until June, including the recently launched Lucozade Energy Grafruitti, a combination of mixed berries and citrus flavours. The initiative, which is backed by PoS and in-store activations, also features on all five Lucozade Sport 500ml bottles, including the new Mango & Passion Fruit variant. Supported by a £9 million marketing investment, comprising TV, sponsorship, digital and in-store activity, Mango & Passion Fruit is also available in multipacks of four (rsp £3.69). The UK’s biggest sports and energy brand advises stores to position Mango & Passion Fruit alongside Lucozade Sport Orange, the brand’s highest performing SKU, to encourage multiple purchase. Vicky Morgan, marketing manager for Lucozade Sport, says: “At Lucozade Ribena Suntory, we pride ourselves on developing innovation based on consumer demand. “This new exotic variant offers an incremental sales opportunity, particularly following the success of Lucozade Sport Brazilian Guava, which delivered £1.3 million in value sales during its first four months in the market last year.” Elsewhere, Lucozade has revealed new 380ml and onelitre formats for its award-winning Lucozade Energy ‘The Brazilian’ Mango & Mandarin flavour. Lucozade Energy exotic flavours are increasingly popular, with Caribbean Crush experiencing more than 42% year-onyear value growth and ‘The Brazilian’ Mango & Mandarin reaching £12.6 million in sales within its first 12 months. All data: Nielsen

For further information:

Toasting success! Since launching Sugar Free Pink Lemonade, Boost reports that the brand’s total zero sugar sales have grown by more than 70% in volume.

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March 2015

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AG Barr (01204) 664295 Boost Drinks (0113) 240 3666 Coca-Cola Enterprises (0845) 722 7222 Cott Beverages (01509) 674915 Lucozade Ribena Suntory 020-3727 2420 Red Bull (0203) 117 2000

CCM


Success with IT Page 2 Achieve successful stock management with latest solutions

Page 3 Reduce delivery costs and improve accuracy with NEW ePOD

Page 4 Increase profitability with a single IT system

CASH & CARRY AND WHOLESALE NEWS Issue 16

Turner-Price reduces picking errors by 70% using Sanderson Voice Fresh and frozen food wholesaler, Turner-Price has joined an increasing number of wholesalers who are reaping the benefits of voice technology. Integrated with the Sanderson wholesale IT solution, Swords, Voice Directed Warehouse Management System (WMS) increases order picking accuracy, speeds up picking time and reduces costly picking errors. Based in Hull, Turner-Price serves over 1,200 customers across the hotels, pubs and restaurants sectors with a wide range of catering supplies, non-food items and food products, and is an active member of the renowned Country Range buying group. Turner-Price is experiencing first-hand how the Voice WMS system has improved efficiency and productivity across its warehouse operations. Using headsets and microphones, pickers communicate with the warehouse

www.sanderson.com/swords

management system by providing answers to structured questions, quickly identifying the stock to be selected and moving on. The system also increases the number of orders picked as pickers’ hands are free, enabling them to move around the warehouse faster. Additionally, the system generates savings by lowering the costs of processing returns and credits as a result of more accurately picked orders. Julian Owen, Sales & Marketing Director, Turner-Price, comments: “We’ve really hit the ground running with the Sanderson Voice Directed

picking system. Our pickers are now achieving 25% more order picks per shift than with the previous handheld scanning system. Also, picking errors have dramatically reduced by 70% because pickers need to verbally confirm order pick numbers to the system and cannot override it. Furthermore, the hands-free system has enabled us to pick more easily in the freezer, which has increased our productivity. But it’s not just within the order picking operation where we’ve seen efficiencies: the system is so easy to use, we are training staff in one hour, compared to the number of days it took before.”

About Turner-Price Turner-Price Ltd, based in East Yorkshire, is a leading foodservice wholesaler specialising in the supply of ambient, chilled, frozen foods, fresh produce and non-food consumables to over 1,200 customers in Yorkshire, Nottinghamshire, Lincolnshire and Derbyshire.

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Success with IT

One IT solution for your business There are substantial benefits to be gained by using wholesale business software from one IT supplier. The Sanderson wholesale IT solution, Swords, is used by over 150 wholesalers and cash & carry businesses of all sizes.

An increasing number of wholesalers are using the latest solutions from Sanderson to increase warehouse efficiencies, launch new businesses and support business expansions. Web Ordering and Mobile CRM are just two of the latest solutions used by Sanderson customers to elevate service levels, increase sales and boost productivity.

Offers a flexible solution that extends system functionality with additional solutions to support your business as it develops “Sanderson helped us to develop web ordering within Swords. From a standing start 18 months ago, web ordering now accounts for 16% of our revenue – around £7.5m.” Mark Windebank Managing Director, Savage & Whitten

Benefits of the all-inclusive Swords system:

Improves control of your business with a single view of all operations “The Sanderson solution is central to our operations and we’re already seeing the benefits with better stock visibility and real-time business information.” Vimal Kataria, Operations Manager, Temple Wines

Boosts staff productivity, saves time and reduces errors by

eliminating duplication of tasks and the need for re-keying data into different systems “Now we have one system and one set of numbers; the data flows seamlessly throughout each operation.” Clare Telford, IT Manager, Continental Wine & Food

Minimises compatibility issues, with solutions that are designed to work together on the same platform Swords integrates 5 Star’s key operations and offers a single view of the business. “Swords helps us manage and control the business as well as provide first-class customer service with the online ordering solution which will undoubtedly take our business to the next level.” Yogesh Gandhi, Director, 5 Star (Edible) Products Ltd

Achieve successful stock management Wholesale software improves stock control, saves costs and helps wholesalers expand Good stock management is at the heart of every successful wholesale business. Not enough stock means poor availability and unhappy customers, while too much stock can mean increased wastage. How effective is your stock management? Is it helping you to improve efficiency, service and sales? Sanderson is helping its customers to take control of stock management with its latest solutions, such as Voice Directed WMS. Sanderson customers are

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enjoying the benefits of improved stock control with voice technology. Glasgow based J W Filshill has reduced pick time by 30% and Ireland based Savage & Whitten improved picking rates by 35% and achieved a return on investment after just ten months. Preston Beer achieved a saving of £5,000 a month due to accurate stock control. The company has also secured significant time savings by removing the need for monthly stock takes as a result of immediate and real-time stock information.

Three reasons to invest in stock management: 1. You save money. J W Filshill saved £400k by adopting voice technology with increased accuracy and reduction in handling damages 2. It pays off fast. For some wholesalers, it was as little as ten months 3. Expansion becomes easy. Stock management can also help wholesalers diversify into new sectors.

www.sanderson.com/swords


Success with IT

NEW Sanderson ePOD – improve visibility and efficiency of your deliveries Our NEW Electronic Proof of Delivery (ePOD) system elevates customer service levels and boosts the operational efficiency of your deliveries. Using the new ePOD system, you will see ROI rapidly – within 4-6 months – through improved delivery accuracy, increased staff productivity, efficient vehicle management and improved cash flow. ePOD is a multi-dimensional delivery system, enabling delivery staff to capture customer acceptance signatures and carry out delivery amendments. The solution also provides access to CRM functions such as customer surveys, to provide valuable insight and to carry out stock uplift requests, enhancing customer satisfaction.

Benefits of the NEW ePOD solution:

Improves delivery accuracy by automating the delivery process, eliminating lost or incorrect delivery documents. Also data is entered only once, removing duplication errors

Reduces delivery costs as a result of improved accuracy. The costs of processing delivery errors, re-delivering and collecting order items are reduced as deliveries are checked, amended if required and signed for on customer premises

Improves cash flow as you can perform same day invoicing, following receipt of real-time delivery signatures

Improves response times to customer queries by capturing issues whilst on site and processing the information immediately

• Strengthens vehicle management

Speeds up payments to your business with improved delivery accuracy and real-time confirmation of deliveries

Increases staff productivity by removing time-consuming paperbased processes

by providing valuable checklists to monitor driver and vehicle activity

• Optimises delivery scheduling

with an easy to view automated journey plan and use of google maps

Increase sales, boost productivity and save time with latest Sanderson solutions Latest solutions to make your business operations more efficient and cost effective.

Web Ordering

Mobile CRM

• Increases sales – customers can

• Boosts staff productivity.

conveniently place orders 24 hours a day Saves time by eliminating the need to re-key orders

www.sanderson.com/swords

24 hours access to real-time Swords data enables staff to work remotely Maximises order taking efficiency. Produce quotes and process sales orders during customer visits

Publishing Director: Martin Lovell Published by Winlove Publications Ltd on behalf of: Sanderson Sanderson House, Manor Road, Coventry, CV1 2GF Tel: 0333 123 1400 Fax: 0333 123 1401 Email: info@sanderson.com www.sanderson.com/swords

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[ ICE CREAM & FROZEN DESSERTS ]

A scoop of heaven In the midst of a heatwave, nothing soothes the tastebuds quite like ice cream. Even in cold weather, it’s still on the menu as manufacturers successfully tempt consumers with a variety of deluxe and new-fangled alternatives. Michael Catling reports. lthough few dare to admit, dessert menus and ice cream cabinets receive more than a cursory glance, with the allure of comfort food almost too good to resist. From daytime snacking to evening indulgence, occasional treating remains prominent all year round, either at home or out of home. Caterers are now embracing Heston-like creations and dispensing with traditional flavour combinations, while retail demand is being driven by single packs in the summer and multipacks in the winter. As a result, sales are no longer restricted to kids, let alone the warm weather, with an artisan reinvention exposing the ice cream category to an older taste profile. Despite healthy eating trends, dessert menus now feature more frozen elements for added variance, and consumers are responding by replicating similar combinations at home. Valued at £953 million (Nielsen), the ice cream category continues to evolve and wholesalers are being urged to dedicate more fixture space and cater for the increasingly popular luxury and handheld sectors. Suncream Dairies has unveiled a sustained cash & carry support programme, featuring specific promotions, incentives and in-store demo days, to help drive sales across three of its leading brands. Gelato Gold, Mellow Gold and Summertime will all benefit from a wide range of PoS and merchandising support this year, while the former two brands have debuted new lines to maximise sales over the summer season. Suncream’s luxury Gelato Gold range, which is available in five-litre scooping trays, now contains 10 classic and indulgent flavours, following the introduction of a new egg-free and nut-free Salted Caramel Fudge variant. Similarly, the company has extended its Mellow Gold portfolio by introducing Lemon and Bubblegum ice cream flavours. “These new flavours give caterers the opportunity to extend their ice cream menus and capitalise on current consumer preferences for contemporary flavour combinations,” explains Rebecca Manfredi, managing director of wholesale at Suncream. “We saw a 15% overall increase in cash & carry volumes

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in 2014, with all growth coming from the luxury Gelato market, so we’re confident this will be a winner both on the plate and in the scooping cabinet." To help accumulate more permanent supply possibilities, Manfredi advises cash & carries to keep ice cream stock levels as high as possible in preparation for, and during, periods of peak demand. Manfredi highlights Suncream’s capabilities to co-pack for reasonably low volumes, and believes cash & carries should be offering a top-up option to take advantage of delivered wholesalers running out of stock during spikes in demand. “Our new warehouse and cold storage facility means we can hold more stock in readiness for spring and summer demand, and respond to short notice orders,” adds Manfredi.

Best of both worlds Beechdean Dairies has reiterated its commitment to providing best-in-class category innovation by unveiling a calendar of NPD launches across its branded and licensed ranges. Following the success of its licensed impulse range last year, Beechdeen has released three family-friendly multipacks, featuring some of the UK’s most popular cartoon characters. Retailing at around £1.99, new four-packs of Jelly Belly Orange Ice Lollies offer a £1 cheaper alternative to ScoobyDoo Honeycomb & Chocolate Coated Crunchies and SpongeBob Square Pants Vanilla tubs, which are available in 4 x 75ml and 4 x 110ml packs respectively. To capitalise on its licensing partnership with Warner Bros www.cashandcarrymanagement.co.uk

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[ ICE CREAM & FROZEN DESSERTS ] Consumer Products, Beechdean has developed its Scooby-Doo range by releasing a new one-litre Vanilla tub (rsp £1.75), its first ever licensed take-home product. Two new ice lollies (rsp 30p), which are available in Lemonade and Bubble Gum flavours, have also been added to Beechdean’s licensed portfolio, which includes Mutant Ninja Turtles ‘X-Treme’ Lime and Chocolate Ice Lolly (rsp 70p) and The Simpsons Raspberry and Strawberry ice cream split lollies (rsp 90p). To conclude its activity, Beechdean has announced the introduction of Noughty Noughty – a new frozen dessert impulse range containing 0% fat, 0% sugar and 35 calories per 100ml serving. The two-strong range, which will be launched in the third quarter of this year, will directly respond to consumer demand for guilt-free indulgence.

All three SKUs, which will be unveiled in independent, wholesale and convenience outlets in April, will come with fully-branded outers, which can also act as PoS for smaller convenience stores. Charlotte Hambling, head of UK marketing at R&R, has announced that the new-look packaging will be displayed across Lyons Maid’s entire portfolio, including six new take-home lines. These comprise one-litre tubs (Vanilla, Raspberry Ripple and Neapolitan, rsp £1.75) and four-litre tubs (Vanilla, Strawberry and Chocolate, rsp £4), Choc Ices (eight-pack, rsp £1.25), Strawberry Cones (four-pack, rsp £1.25), Fruit Splits (four-pack, rsp £1) and Milk Chocolate Sticks (three-pack, rsp £1.25). “For small retailers, the opportunity does not exist to compete with the value offered by own-brand labels,” says Hambling. “Lyons Maid range will therefore create an opening for convenience outlets to be competitive with pricing.”

Creamy creations

Whipping up a storm

R&R Ice Cream is relaunching Lyons Maid to offer smaller retailers a great value alternative to own-label brands. The price-marked range, which was previously positioned in the take-home category, will now feature a line-up of impulse products, consisting of Chocolate Ice Cream Sticks (70p), Pop-up Lollies (rsp 60p) and Strawberry and Chocolate Cones (rsp 60p).

Unilever, the UK’s number one ice cream manufacturer, has targeted an accelerated growth programme across the ice cream category by overhauling its market-leading Cornetto, Ben & Jerry’s, Magnum and Wall’s Kids brands. The major overhaul, which was unveiled at the start of March, is spearheaded by a revamp of Unilever’s Cornetto range, featuring the brand’s biggest campaign since the 1980s. Following the trial success of £1 price-marked Strawberry and Classico variants, which delivered 70% incremental shoppers to the handheld singles category of a major retailer last year, Cornetto has extended its £1 PMP portfolio by introducing Mint and Chocolate flavours. This coincides with the addition of two new Cornetto Premium variants – Peanut Butter Crunch and Cookies ‘n’ Dream. A new chocolate disc topping has also been introduced across all filled-cone out-of-home variants and in-home packs of four, retailing at around £1.50 and £2.99 respectively. Magnum, the UK’s number one ice cream brand, has also undergone a makeover, with limited-edition Magnum Pink Raspberry and Magnum Black Espresso being launched in multipacks of three (rsp £3.35), as well as single impulse units out of home (rsp £1.90). Backed by a 360 degree marketing campaign, both

The guiltiest pleasures Exclusive research by Amore di Gelato has revealed that consumers are embracing ‘weird and wonderful’ ice cream flavours in the out-of-home UK market. According to dozens of high-end hotels, restaurants and gastropubs surveyed, over 70% claimed that unusual flavours, such as grape and salted caramel, were preferred over classic ice cream variants. This corresponds with an emerging trend towards the ‘maturation’ of ice cream consumption, with a number of premium establishments identifying alcohol twists as a key sales driver. Mike Godwin, managing director of Amore di Gelato, comments: “The perception that diners are too healthconscious to indulge in dessert is actually slightly skewed; our experience says that consumers very much enjoy dessert but aren’t willing to spend money on low quality products. The numbers clearly show that offering exciting, modern versions of a classic concept will help dessert sales.”

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Contact R&R Ice Cream for further details: enquiries@rr-icecream.eu Tel: 01677 423397 ® Reg. Trademark of Société des Produits Nestlé S.A. All rights reserved.


[ ICE CREAM & FROZEN DESSERTS ] NPDs are targeted at replicating the successful launch of Magnum Marc De Champagne, which became the number one ice cream NPD in-home last year. Elsewhere, Unilever has created a new Ben & Jerry’s flavour family range, entitled Cookie Cores. Comprising three indulgent tubs – What-a-Lotta-Chocolate, Utter Peanut Butter Clutter and Speculoos? Specu Love – all three SKUs (rsp 4.99) are available in cases of eight. To conclude its pre-summer activity, Unilever has relaunched Wall’s Kids Mini Milk range with a new and improved recipe, nearly four decades after hitting shelves for the first time. Containing Vanilla, Strawberry and Chocolate flavours, the variety multipacks have an rsp of £2.49 and are joined by a new candyfloss flavoured proposition, entitled Music Tornado. Offered in cases of 30, the new range (rsp £1) encourages kids to collect a set of four different ‘stick whistles’. All data: Nielsen

Tropical mixes AG Barr has urged wholesalers to pay attention to the growing demand for new and exotic flavour combinations. Rubicon has generated more than five million ice cream and push-up lolly sales since being launched in February 2013, according to AG Barr, driven by the brand’s ‘exciting proposition and real point of difference’ in a crowded marketplace. To help sustain interest and encourage trial in the UK’s £830 million take-home ice cream market (Nielsen), AG Barr has unveiled a heavyweight national brand investment for Rubicon’s tropical frozen range, targeting both ethnic and mainstream consumers. Sampling will play a key part in the brand’s 2015 activity, with 110ml Mango and Passion push-ups (89p PMP) and 750ml tubs of Mango Fruit Exotics and Mango Ice Cream Swirl (£2.99 PMP) available at melas throughout the UK. This coincides with the announcement that Irn-Bru ice cream lollies will benefit from an increased marketing spend this year, with a nationwide summer advertising campaign featuring alongside digital, online and PoS activity. Targeted at reinforcing IrnBru’s status as the UK’s number one digital brand (Headstream), the promotional push is designed to “create massive online awareness and demand using the cheeky, maverick attitude for which Irn-Bru is well-loved,” says Adrian Troy, head of marketing at AG Barr. Available in single-serve 100ml lollies (£1.19 PMP) and multipacks of three (rsp £3), Irn-Bru ice cream lollies have generated sales of 800,000 units in England and Wales since the launch last February.

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Availability is paramount Almondy, the number one gluten-free frozen dessert brand (Nielsen), maintains that free-from food offers a serious profit opportunity that wholesalers can ill afford to ignore, especially as 42% of consumers would expect to pay more for a gluten-free dish on a menu (Toluna). The market for gluten-free foods has grown by 229% in the last 10 years, according to Datamonitor, with 25% of the UK population eliminating gluten from their diets due to intolerance or lifestyle choices (Toluna). To help operators achieve a point of difference on menus, Almondy recently extended its portfolio by introducing Cadbury Gluten-Free Chocolate & Almond Cake and Philadelphia Gluten-Free Almond Layered Lemon Cheesecake. Retailing at around £3.19, both products offer “powerful brand reassurance” and feature alongside Almondy’s existing Toblerone, Daim and Caramel & Peanuts variants. All five of Almondy’s gluten-free premium cakes come pre-cut, and a single slice can be thawed and served in as little as 10 minutes – making them high on efficiency and low on waste, explains Andrew Ely, managing director at Almondy. The company also recommends serving the cakes as a sundae, especially during the summer season, to help achieve a higher mark-up. A selection of serving suggestions and recipes, such Toblerone Sundae, Daim Sundae and Peanut and Caramel Sundae, are currently available on Almondy’s website to help tap into the growing CCM demand for confectionery-inspired desserts.

For further information: AG Barr (01204) 664295 Almondy 020-7795 8148 Beechdean Dairies (01494) 563980 R&R Ice Cream (01677) 423397 Suncream Dairies (01827) 282571 Unilever (0800) 731 1597


[ LEGAL ADVICE ]

Business leases: cut through the jargon to check the terms requirements about the risks covered, level of cover and the names of the insured parties. If your landlord is going to insure the property, then you may still have to pay a proportion of the premium. Monitor policies regularly to ensure cover is adequate.

Meet the legal expert Eddie Biber, Legal Edge Eddie Biber is a legal counsel with particular expertise in property

What is a business lease? A contract that gives you the right to occupy and use someone else’s property for your business. The owner is the ‘landlord’ and you are the ‘tenant’. The law gives you certain rights (and obligations) but a landlord may try to negotiate some of them out so it is important the lease delivers what you need. What is the term? Leases are granted for a set period of time called a fixed term. Check the start and end date and if there are ‘break rights’ (the right to end the lease early). You or the landlord may want the option to stop the lease part way through the term, e.g. in times of financial insecurity. What about your rent? Long business leases include rent reviews (usually every three to five years). Check which review method is proposed and that you understand how it works as this is how your rent gets increased. It is also important to understand all elements of the lease that give rise to rent. Is VAT payable? Are you liable for rates, insurance, utilities and service charges? What are the dates of any increases? When and how are these to be paid? Are service charges payable? When the landlord pays the outgoings on his building, he will usually want to charge these to you. They are called service charges. Check what is included: it is normally the cost of repairs, maintenance, utility bills, insurance premiums and staff costs, such as cleaners. It might also include improvements and alterations and a ‘sinking fund’ – contributions 40

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towards future major expenses. Service charges are normally paid quarterly in advance based on the landlord’s estimate and the balance paid at the end of the year. Check that in the event of any overpayment, you are entitled to a reimbursement. Demystifying the ‘demise’ Leases describe the property you are renting as the ‘demise’. It is important to understand the ‘extent’ of the demise because you are only responsible for that part of it. You do not have to repair or redecorate, make alterations or additions to, or have any rights over the landlord’s property which is outside the demise unless the lease specifically states otherwise. Rights, reservations and exceptions Leases also contain ‘rights’, ’reservations’ and ‘exceptions’. They spell out the practical bits on how you and the landlord may use the property. For example, if you lease one floor in an office block, you will need the ‘right’ to use the stairs, lifts and entrance hall to access it and also to shared spaces like the toilets. Your landlord needs to access your demise to carry out repairs so will ‘reserve’ permission to do this. Who insures the property? To avoid double insurance (or no insurance), either you or your landlord should insure the property. Check the terms of the lease for any specific

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Who is responsible for repairs? There will be repairing obligations on you both. Critical is whether you are required to ‘put’ and/or ‘keep’ the property in repair. If you are, you must put the property into a good state of repair, even if it wasn’t like that when the lease was granted. If the property is not let in a good condition, you should record the state (we recommend photographs) in a ‘schedule of condition’, and should repair to no better state than that shown in the schedule. Alterations and improvements Your lease will impose restrictions on changes you can make to the property. Even if it stipulates a use, such as a warehouse, you will also need planning permission for it. Changes of use and alterations will also require planning permission and the landlord’s consent. What are ‘assignments’ and ‘underleases’? If you want to sell your interest in a lease then this is by way of an ‘assignment’. Keeping your interest but allowing someone else to use the property is by way of an ‘underlease’. There will be restrictions around what you can do, so consider these carefully. Failure to obtain the landlord’s consent when you are obliged to could CCM have costly consequences.

Legal Edge (www.legaledge.co.uk) is a group of experienced and commercial business lawyers offering practical solutions to all of your legal issues. For more information, please contact Eddie Biber at eddiebiber@legaledge.co.uk.


everyone’s going to want

® Registered Trade Mark of United Biscuits (UK) Limited. Source: AC Nielsen. Volume sales sweet biscuits. 52 week period ending 12.11.2014.

the big crunch...

…so stock up in time for the TV campaign. From McVitie’s, the nation’s favourite biscuit brand, comes NEW DeliChoc – a slab of thick Belgian chocolate atop an amazingly crunchy biscuit available in Milk, Dark and White chocolate. Supported by a new £2 million campaign including TV, digital, bespoke shopper activity, social media and PR, shoppers will be sure to snap these up!

www.betterbiscuits.com Tips, tools and advice from UB

betterbiscuits@unitedbiscuits.com 020 8234 5010

1st April


[ LAUNDRY & HOMECARE ]

Spring cleaning frenzy Consumer shopping habits may be changing, but with the British public remaining as house proud as ever, cleaning products are rarely left gathering dust on shelves. ith woolly jumpers and winter coats set to be stuffed away in the cupboard for the foreseeable future, we are now entering the customary sort-out period where use-by dates are privy to more than a passing glance and formerly prized possessions are sent to the nearest landfill site. But while many consumers yearn for the next opportunity to unscrew the lid on an underused bottle of suntan lotion, there is reluctant acceptance across many households to engage in a spot of spring cleaning. After all, there is an unwritten rule that summer will not begin until such an occasion has taken place. But while many fumble about under the kitchen sink, trying in vain to find what they are looking for, the local convenience store is often the next port of call. Hilary Nithsdale, own-label trading controller at Today’s Group, says: “As budgets have got tighter, people have started to cut back on what they spend on cleaning materials. “Household cleaning is a category where promotions are particularly popular due to the long shelf life. It’s low risk, so if you can get a good deal, chances are you’ll pick up two.” Jeyes Group has adopted a focus on delivering competitive prices for discerning shoppers, and has recently announced the addition of two versatile, ‘high performance’ variants of Easy. Easy Sparkling White Bleach, which has an rsp of 69p for a 750ml bottle, reflects the current trend for cleaning products with whitening properties, while Easy Lemon Antibacterial Household Wipes (rsp £1) deliver an easy-to-use solution across multiple surfaces.

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ACE by name, ACE by nature Robinson Young has announced that ACE Gentle Classic will be launched in new industry-standard packaging, especially for cash & carries, in April. As the new distributor for ACE, Robinson Young has recently rebranded the product and invested in a packaging redesign. The introduction of the one-litre bottles (rsp £1.99) into the wholesale channel is the next phase of the relaunch. Kevin Day, product development manager – household department at Robinson Young, comments: “Household cleaning is a growing market that is showing signs of continual expansion, and ACE looks set to be a key player.”

Did you know? Persil is the UK’s number one fabric cleaning brand, with a 22% share of the market (Nielsen).

Mel Billows, marketing manager of Easy, comments: ‘These two new products provide effective cleaning solutions for savvy shoppers. With Easy, shoppers can get great results at a great price.”

Versatility and value Unilever UK has identified convenience as a major trend in the £663 million household cleaning category, with costconscious consumers favouring multi-purpose alternatives and long-lasting fragrances to help reduce household bills. Trade category manager for household Ben Taylor says that demand is being driven by all-in-one products and concentrated capsule liquids, both of which offer space-saving and environmentally-friendly solutions. “Consumers want quick, easy-to-use products that don’t take up much room on the shelf at home,” he explains. With consumers favouring brands they know and trust, Taylor urges wholesalers to devote prominent positions to leading brands, such as Domestos, Comfort and Persil. The fastest growing segment comes from the toilet and bleach sector, in which Domestos, the UK’s number one bleach, has a 19% share. Unilever has recently extended the brand’s rimblock portfolio by unveiling a new five-in-one solution. Available in Lime or Ocean fragrances, Domestos Power 5 has an rsp of £2.50 and delivers five supercharged cleaning benefits with every flush – rich foam, limescale protection, long-lasting fragrance, dirt removal and shine. To improve in-store navigation across all cleaning products, Unilever advises cash & carries to capitalise on shoppers ‘dwell time’ by offering sampling opportunities, distributing promotional material and using theatre and imagery to communicate new launches. All data: Nielsen

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RB PUTTING SPARKLE INTO HOME AND HYGIENE SALES Innovation from consumer-favourites Dettol, Finish, Vanish and Air Wick is always good news because it stimulates category growth and boosts sales across the home and hygiene front. Wash day winners Laundry additives accounts for £475m out of £1.3bn laundry spend* with 86% of users adding fabric softeners, stain removers or other specialist products to their wash. Stain removal represents 25% of this market**. With the development of its premium product Vanish Gold for Whites, Vanish has started a ‘white’ revolution set to grow the stain removal category even further. The new range has been developed to transform whites up to 3 shades whiter and give consumers the confidence that stains can be successfully removed in just 30 seconds. Dettol created a new laundry segment with Dettol Antibacterial Laundry Cleanser and a new powder format. Powders are currently the 2nd largest segment in the laundry category accounting for 35% of value share. Cross-shop between liquid and powder is low and Dettol Antibacterial Laundry Cleanser Powder provides an opportunity to recruit new users to the category.

A technology breakthrough for the first constantly changing fragrance

New Air Wick Life Scents takes home fragrance to a new level with a technology breakthrough that achieves a constantly changing multi-dimensional fragrance that recreates the layered fragrance experience we perceive in nature. Air Wick Life Scents is the biggest fragrance breakthrough in a decade with a massive cross platform marketing support with a £4 million 360 campaign including TV, digital, social, OOH/ in-store activity. This launch underlines Air Wick’s market leadership and drive category growth.

It’s crystal clear Finish continues to lead innovation in autodish with each new development With Finish Shine & Protect, the brand is delivering improved performance in glass protection to extend the life of glassware by up to 100% - keeping shine for longer, protected wash after wash***. Arresting new packaging design and Finish All in 1 Max now available in convenient resealable packs with a wrapper-free format for more convenience.

Powering through dirt and grime There is a new look to Dettol hard surface cleaners (HSC) this season with the arrival of the Advance range, proving that there is no need to compromise between a ‘clean’ home and a ‘healthy’ one. The Dettol Advance range delivering ‘disinfection you can trust with cleaning performance you won’t believe’. The introduction of the Dettol Advance range is anticipated to drive category growth by +£23m during 2015 across both existing and new users.

RB: home and hygiene brands consumers know and trust. Air Wick, Cillit Bang, Dettol, Finish, Harpic, Vanish.

References: * Nielsen Homescan data MAT to 29.03.2014, Total GB ** Source: U&A 2008 ran by TNS for Vanish *** vs previous Quantum. Does not protect from mechanical damage or restore damaged items


[ LAUNDRY & HOMECARE ] Triggering trial P&G’s merchandising top tips McBride recommends that wholesalers adopt a marketorientated approach to category management and dedicate fixture space to NPDs and formats that cater for traditional and convenient shopping missions. Mcbride’s Clean and Fresh range, which features laundry powders, sachets, capsules and tablet formats, is designed to reflect evolving consumer trends and to offer discerning consumers more choice. Nicola Barrass, brand manager at McBride, says: “Removing stains is the number one concern for consumers, followed by the need for items that ‘make life easier’. “A total of 31% of consumers do more than five loads of laundry a week, so the need to get clean results first time is of great importance.” Barrass advises wholesalers to stock a combination of leading brands and products that have a lower price point, to give consumers a choice. She explains: “In growth categories, such as laundry capsules and liquids, where new product development is prevalent, promotions are still at a high level and there are often price cuts. “Price cuts are also being used on the bigger packs of fabric conditioner, to try to entice consumers to trade up to larger pack options. “Our Clean and Fresh range ensures we cater for consumers who prefer convenient formats such as sachets, as well as those who prefer traditional formats such as powder.” All data: Kantar

Scent-sational innovation Proctor & Gamble (P&G) believes that the laundry sector represents a huge opportunity within the convenience channel, with a loyal customer base and a continued increase in basket spend reflecting its importance to wholesalers. “Convenience of format and fragrance remain key purchase drivers amongst laundry shoppers, explains Yilmaz Erceyes, brand manager for fabric care at P&G UK & Ireland. “There have been a number of exciting innovations from P&G in the last 12 months that have met these consumer needs, including Freshlook technology and the launch of liquid formats across our entire portfolio.” Market data shows that the average laundry shopper visits their local store 2.6 times a week, spending approximately £4.15 per visit. In the convenience channel alone, the laundry category is worth £111 million. On a wider scale, the sector has an estimated value of £989 million across all channels (Kantar), with super-concentrated liquid, capsules and fabric conditioners up 20%, 15% and 11% year on year respectively. Mintel research attributes this growth to big pack options and NPD, such as Lenor Unstoppables. 44

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Site laundry near to homecare and clearly segment the fixture by stages of the wash, such as laundry additive, detergents and fabric conditioner. Within detergents, provide a choice of formats, such as gel, liquitabs, liquid and powder, to increase basket spend. Locate liquitabs in the centre of fixture. These are highly visible so will act as a beacon for the category.

Last summer, P&G upgraded its fabric conditioner portfolio by launching Lenor Unstoppables and Ariel 3in1 Pods – two propositions that deliver long-lasting freshness, fragrance and added convenience. P&G reports that Lenor Unstoppables has amassed a 25% repeat purchase rate since being launched, while Ariel 3in1 Pods has contributed to a 2.4% increase in liquid tab value sales for the UK’s largest bio detergent brand. To reinforce its commitment to pioneering new innovations, P&G has announced the release of three limited-edition Lenor Super-Concentrate scents – Ruby Jasmine, Yellow Zephyr and Topaz & Magnolia. Created in collaboration with British fashion designer Giles Deacon, the 925ml bottles contain Freshlook technology – a formula for sustained perfume freshness – and retail at around £3.50. Meanwhile, to capitalise on March ranking as one of the highest purchasing peaks for the air care category, P&G has added a new Febreze spring collection, to reinforce the brand’s ‘odour elimination equity’. Available from £2.99 (rsp), the new scents – Freesia Bloom, Vanilla Flower and Lotus Verbena – feature across Febreze aerosols, multipurpose home fragrance, candles, Set & Refresh, reeds, Ambi Pur 3Volution and singlechamber plug-ins. The vanilla variant is also included in Febreze’s car fragrance range. All data unless otherwise stated: IRI

For further information: Jeyes Group (01842) 757575 McBride 0161-653 9037 Proctor & Gamble (01932) 896000 Robinson Young (01284) 766261 Unilever (0800) 731 1597

CCM


Professional Cleaning Solutions for Catering

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[ SNACKS & BISCUITS ]

Wholesome snacking Convenient, mess free and loved by the British public, snacking accounts for half of all eating occasions. Wholesalers are being urged to embrace the latest trends and innovations to make the most of this lucrative market. or decades, snacking has become an ubiquitous part of British culture and tradition. From crisps and biscuits to lighter bites and chocolate treats, the so-called ‘naughty foods’ have remained a perfect accompaniment to elevenses and afternoon tea. In recent times, though, category growth has been driven by on-the-go lifestyles and celebrity fad diets, with regular ‘grazing’ and meal-replacement snacks redefining the breakfast, lunch and dinner eating pattern. Hena Chandarana, trade communications controller at United Biscuits UK (UB), says that wholesalers should capitalise on healthy eating trends with a particular push on savoury snacks, up 5% year-on-year. “Handypacks and grab bags are often the format of choice for consumers looking for an on-the-go snacking option,” explains Chandarana. “Our Jacob’s Mini Cheddars range is an increasingly popular on-the-go choice, with the brand now worth over £14 million and growing by 16% year on year.” Jacob’s, which boasts a near 30% share of the savoury biscuit and branded snacks market, has recently undergone a packaging and logo refresh, designed to improve range navigation in-store. The new look, which forms part of UB’s master plan strategy, follows a £3 million launch investment to support flavoursome changes to Jacob’s Crinklys.

F

Backed by a TV advertising campaign, as well as in-store activations and online and digital marketing, a new Bacon flavour has joined flavour-enhanced packs of Cheese & Onion and Salt & Vinegar to help deliver the ‘tastiest ever’ Crinklys. The Bacon variant has replaced Sweet BBQ in variety packs (rsp £2.30), while the latter two products are available in a 50g grab bag (rsp 60p), plus individual multipacks of seven (rsp £2.30). Cheese & Onion is also offered in a £1 price-marked sharing bag. Elsewhere, UB has launched limited-edition packs of ‘Stiglets’, offering consumers the chance to win one of 40 personal laps around the Top Gear track alongside ‘The Stig’. The promotion, which runs until November, is displayed across a variety of pack formats, including a 150g sharing pack (rsp £2.19), multipacks of six (rsp £2.29) and a £1 PMP 105g option. This corresponds with the release of a new on-pack promotion for McVitie’s, enticing consumers with a one-in-ten chance to win one of four animal toys featured in the brand’s ‘Sweeet’ adverts. The competition, which features on 35 million packs of biscuit and cake variants, runs in conjunction with several no-purchase-necessary opportunities to win online.

United Biscuits launched its ‘largest ever’ in-depot activation scheme in February, to help drive distribution of its core and NPD lines in sweet and savoury biscuits. Nearly 50 wholesale depots signed up to the tour, which concludes at the end of March.

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[ SNACKS & BISCUITS ]

Did you know? McVitie’s value share of the total biscuit market rose to 26% as of September 2014 – more than three times the size of its nearest competitor (Nielsen).

To extend its range of products within the everyday special treats category, UB has also launched DeliChoc into the UK market for the first time. The range (rsp £1.99), which is backed by a £2 million support programme, is available in case sizes of 12 and six PMPs, and comes in three different 150g Belgian chocolate tray packs – milk, dark and white. UB anticipates that the release will generate £6.5 million in retail sales value in the first year. To help unlock an £18 million opportunity in the convenience sector, Chandarana advises wholesalers and retailers to follow UB’s dedicated category management advice programme, entitled ‘Better Biscuits, Better Business’. “Wholesalers are encouraged to make biscuits impossible to miss, by making rack ends highly visible and, where possible, using front-of-depot space to help draw customers’ attention to the fixtures,” says Chandarana. UB advises C&Cs to create manufacturer ‘brand blocks’ and use eye-catching displays, with banners, flags and back boards, to help draw customers to the biscuit aisles.

“As only 5% of traditional biscuits are currently eaten out of home, and with almost six billion snacking opportunities in the workplace alone, there is huge potential for cash & carries to develop this profitable new sector.” Burton’s is also generating profit opportunities in the savoury biscuit market, with Fish ‘n’ Chips and Cathedral City Baked Bites amassing sales in excess of £15.2 million since being launched early last year (Nielsen). “Historically, savoury products have underperformed in the cash & carry and impulse channel, but not anymore,” says Costello. “Convenient savoury snacks are growing six times faster than the total savoury market and the top-performing product in this sector is Burton’s Fish ‘n’ Chips, which has the highest rate of sale in the savoury biscuits market (Nielsen).” Burton’s has continued its focus on NPD in the treatier biscuits category by releasing American-style Maryland Soft Baked Cookies – a category first. Available in two eight-pack variants (rsp £1.99), Caramel & Choc Chunk and Double Choc Chunk, the new launch is “the sort of genuine product innovation that retailers will be looking for in cash & carries,” claims Costello. All data unless otherwise stated: Kantar

All data: Nielsen

Heavy indulgence The UK’s £2.6 billion biscuit market continues to provide significant profit potential for cash & carry/delivered wholesalers, particularly those that recognise the importance of ‘treatier’ brands and savoury biscuits. “The good news for cash & carry outlets is that sales of biscuits in the impulse channel are growing four times faster than the total market,” says David Costello, head of customer category management at Burton’s Biscuit Company. The importance of biscuits in the FMCG category is reflected by the fact that 99% of UK households buy biscuits 46 times a year. Treatier biscuits currently represent 45% of shopper spend, with branded products growing three times faster than own-label alternatives. Costello (right) says that retailers expect to see leading brands, such as Maryland, Cadbury, Jammie Dodgers and Wagon Wheels, on display in-depot. “We recently developed Maryland Gooeys (30g) and Bite Size Choc Chip Cookies (40g) to help cash & carries drive growth of the out-of-home biscuits market in the impulse channel,” explains Costello. 48

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Guilty pleasures With 70% of adults snacking when on the go and 98% of adults snacking at home, work or a place of study (Mintel), Mondelez International believes it is vital that cash & carries and wholesalers offer a product range that is reflective of consumer shopping behaviour. “Wholesalers need to get the basics right first,” says Susan Nash, trade communications manager at Mondelez. “Wholesalers should be ensuring they are stocking a range of snacks to support retailers in making the most of this growth opportunity in convenience.“ Mondelez’ commitment to NPD and promotional strategies saw the company account for 26% of total investment in the total biscuits category between January and July 2014 (AdDynamix), led by the combined launch of Dairy Milk Lu and Cadbury Dairy Milk Ritz. Both variants achieved a repeat purchase


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[ SNACKS & BISCUITS ] Mondelez’ merchandising top tips a

a

a

a

Speak to suppliers for support and information to help advise retailers on how to drive sales by understanding their shoppers’ missions. Educating retailers about spending strategy is important: some retailers go for products with the highest profit margins, but that’s not always the best approach. Noone wants a great margin on a product that doesn’t sell. Offer choice by stocking both price-marked and nonPMPs and encourage customers to build a strong core range by purchasing best-sellers. Make the most of each seasonal opportunity and ensure NPDs and promotional products are stocked in advance of consumer media exposure to meet demand.

of 39%, according to Kantar, and were ranked first and second best-selling singles NPD for 2014 (Nielsen). Mondelez has expanded its Cadbury Dairy Milk range by introducing a 30g countline for the mid-morning snacking occasion. Cadbury Dairy Milk Oat Crunch, which is backed by a £4.5 media investment, comes in single-serve bars and multipacks of three, with an rsp of 58p and £1.49 respectively. Elsewhere, Mondelez has launched a new global campaign for Oreo, running until the end of April, and announced a combined marketing outlay of £16 million for BelVita Tops and Chips Ahoy! over the next 15 months.

Impulse increase The bagged snacks market is currently worth £518 million in value sales to the impulse channel, up 18.5% over the last year. KP Snacks maintains that the category should represent a big point of focus for wholesalers, with over a third of shoppers regularly buying crisps on impulse in convenience stores. “There are over 600 products within the bagged snacks market, so deciding which ones to stock can be a very difficult,” admits Matt Collins, trading controller for convenience. KP Snacks recently contributed to a flood of NPDs by introducing cheese variants across its Hula Hoops and PomBear portfolio. Hula Hoops Puft, a lighter version of Hula Hoops, comes in 20g handy packs (rsp 55p), while Pom-Bear Cheese is available in multipacks of six, retailing at around £1.59 respectively. “Cheese is the most popular flavour amongst families and accounts for a quarter of all multipack snack sales in the UK (Nielsen),” says Collins. 50

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Elsewhere, McCoy’s has partnered with Sky Sports to offer consumers a chance to win thousands of two-for-one Football League tickets, plus an array of ‘money can’t buy’ prizes. The on-pack promotion, which has recently been extended to all plain and price-marked 50g bags, also includes depot promotional activity in 15 Londonbased cash & carries, including seven Dhamecha branches. Concluding in May, the activity runs in conjunction with KP Snacks’ SnacKPartners initiative, which is designed to offer wholesalers and retailers unbiased core ranging advice and merchandising support to increase visibility. All data unless otherwise stated: Kantar

Superior snacking Kettle Foods has identified sharing bags as an increasingly important category in the crisps and snacks market, with the popularity of the ‘Big Night In’ occasion contributing to a 6.6% rise in volume sales. Sharing is ranked as the number one growth sector in the impulse snacking channel, up 25% in value sales over the last two years, with Kettle-branded sharing packs posting a 13.1% growth rate between October and December 2014. “Consumers are entertaining at home more and on such occasions, they want to treat themselves,” says Jim Couchman, head of impulse at Kettle Foods. “Premium crisps, such as Kettle Chips, remain an affordable luxury that can be enjoyed when sharing with others.” To entice value-orientated shoppers, Kettle has unveiled a 50% extra promotion across its PMP sharing range, offering 150g for £1.29 – the normal price of 100g packs.


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[ SNACKS & BISCUITS ] Pandering to the kids

This coincides with the introduction of Thai Sweet Chilli, Lemongrass & Coriander in 150g packs. The new limitededition seasonal flavour, which is available until September, is marketed as a perfect addition to barbecues and picnics, retailing at around £2.19. Kettle single-serve is also growing ahead of the category, up 5.8% in the fourth quarter of 2014, with Kettle Chips 40g bags currently ranked inside the top 10 single-serve brands in convenience. Following the success of the brand’s first handy pack offer last year, Kettle Chips has unveiled a new on-pack promotion for 2015, entitled ‘Win the Ultimate Treat plus 100s of other prizes’. The campaign, which features on nine million packs across nine PMP and non-PMP 40g SKUs, will be supported by a trade press advertising campaign, as well as PoS branded bus stops and pallet wraps. Couchman advises cash & carries to adopt a categoryspecific layout in depot, with standard, premium and healthy ranges segmented into sharing, single-serve and multipacks to enhance navigation for retailers. Kettle provides PoS material to flag premium bays and highlight the different Kettle Chips pack formats. Couchman recommends using off-shelf displays to highlight premium products and add value to the category. All data: Nielsen

Value-added promotions Kellogg’s has reiterated its commitment to targeting large social snacking occasions by unveiling a new footballthemed on-pack promotion for Pringles. Pringles outperformed the total category last year, with its summer speaker campaign and Pringooals promotion contributing to 11.5% growth in the convenience channel (IRI). To take advantage of TV viewing figures being at their highest, customers can now purchase two 190g pricemarked or plain packs of Pringles in Original, Sour Cream, Salt & Vinegar and BBQ flavours, to redeem vouchers for a free mini football (postage cost excluded). The new promotion precedes the relaunch of a new karaoke pack promotion this summer, to tap into the UK’s obsession with talent shows. Nick Dawson, sales director for specialty channels, comments: “This is a great opportunity for wholesalers to support Kellogg’s by turning their attention to creative depot displays which can help bring our on-pack promotions to life.” 52

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Oriental-packaged food distributor Unisnacks has announced that Japanese brand Meiji will be launching Hello Panda value packs into the UK cash & carry market for the first time. Marketed as perfect for lunchboxes, the cheaper range of cream-filled children’s biscuits (rsp 30p) will be available in a Choco flavour next month, offering a combined profit margin of 45% for the retailer and wholesaler. Four individual 50g variants – Choco, Double Choco, Strawberry and Milk – are also set for release and will retail at around 55p.

Better for you innovation All About Food has extended its licensed portfolio of Nando’s Grooves Cut Potato Chips by adding a Peri-Salted twist to its offering. Joining existing Smokey BBQ, Spicy Chicken and Sizzling Hot flavours, the new variant is available in 40g, 90g and 150g bags, with an rsp of 69p, £1 and £1.99 respectively. Elsewhere, General Mills UK has set its sights on unlocking a gap in the market within the healthier biscuits category by pioneering an on-trend range of Nature Valley protein bars. Available in Peanut & Chocolate and Peanut, Pumpkin & Sunflower Seeds variants, Nature Valley Protein has an rsp of £2.89 and 69p for multipack and single-serve bars respectively. The launch, which is supported by a shopper marketing campaign, precedes the release of Nature Valley Crunchy with Pumpkin & Poppy Seeds – a new cereal bar multipack (rsp £2.39), which taps into the trend of incorporating seeds CCM into meals.

For further information: All About Food (01695) 556427 Burton’s Biscuit Company (01727) 899700 General Mills UK (01895) 201100 Kellogg’s (0800) 626066 Kettle Foods (0800) 616996 KP Snacks (0845) 601 7583 Mondelez International (08702) 400861 Unisnacks (0800) 195 6438 United Biscuits 020-234 5000


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[ TOBACCO & ACCESSORIES ]

Overcoming adversity With the retail tobacco display ban set to come into effect on 6 April, turbulent times lie in store for the wholesale industry. However, tobacco manufacturers are waging a new war with policy makers, and the outcome looks set to define the future of an increasingly volatile category. Michael Catling reports. ince the turn of the century, the tobacco market has undergone a seismic transformation, with the rise of e-cigarettes and bans on public smoking and tobacco advertising courting controversy and dividing opinion. But while the UK Government continues to support campaigns to help tackle illicit trade, there is little to hide the tumultuous relationship between tobacco manufacturers and policy makers. No sooner had the storm cleared over the implications surrounding the display ban, but public health minister Jane Ellison announced plans to introduce plain packaging before May 2016. With battle lines redrawn and health charities campaigning for e-cigarette advertising to be banned, it is easy to see why the analogy ‘any news is good news’ is being phased out. Yet amid all the turmoil, several manufacturers have employed a business-as-usual philosophy, with many launching new-look packs and pre-emptive trial variants before the market goes ‘dark’. Santa Fe Natural Tobacco Company UK has announced a unified brand identification programme for Natural American Spirit, with its UK pouches and outers of Original Blend RYO now sporting a blue, instead of beige, appearance to aid differentiation. Backed by trade press advertising and specialist display ban exemption PoS activity, the new-look packs will be rolled out internationally over the coming months, with Sante Fe exhibiting Natural American Spirit at several festivals, events and trade shows, including Pro-retail and Association of Independent Tobacco Specialists (AITS).

S

Table data: Nielsen full year 2014

Top 10 RYO brands by volume sales (YTD 2014) 1

Amber Leaf

2

Golden Virginia Classic

3

Cutters Choice Gold Leaf

5

Golden Virginia Smooth

6

Drum

7

JPS RYO

8

Pall Mall RYO

9

Sterling Rolling

10

Old Holborn

March 2015

Alan Graham, general manager at Sante Fe UK, forecasts that this substantial promotional push, coupled with an improved distribution network across 10 major UK cities, will help the brand achieve a 1% RYO market share before the end of the year.

Optimistic outlook Republic Technologies claims that the UK RYO accessories market remains as buoyant as ever, despite the growth of the e-cigarettes market and the implications surrounding the imminent display ban. Market data from Nielsen has revealed that the £70 million filter tips market is up 5.5% year on year, with Swan, Britain’s favourite filter, outperforming the category and generating a market-leading year-on-year growth of 8.9%. Ultra Slim Swan – the thinnest ever Swan filter – has proven particularly popular among RYO enthusiasts, RYO market share (pricing segments, IRI) 17.9%

www.cashandcarrymanagement.co.uk

RYO market share (size segments, IRI)

34.2%

57%

20.5% 7.9%

25.1%

4

54

Save the dates! Sante Fe will be exhibiting Natural American Spirit at Pro-retail and AITS trade shows this year.

Mainstream RYO Premium RYO Value for Money RYO

37.4%

Less than 11g 11 - 14g 20 - 25g 40 - 50g

Worth more than £2 billion and growing at 8% year on year, a third of all cigarettes smoked in the UK are RYO (Nielsen).


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 ]

Collaborative solutions

Evolving together

David Warren (below), trading controller for Today’s Group, says: “It’s imperative that independent retailers are well briefed and understand the forthcoming legislation. This is where the role of a symbol group comes into play – retailers that are part of a good group will have access to all the education, advice and support they need. “We advise our retailers to consult the Plan for Profit guide to core ranging, which this year covered the tobacco category for the first time. The guide is also available online and since its launch last year, we’ve have more than 21,000 visitors to the site. “It’s also important that we inform our members on a regular basis about any developments that are going on within the tobacco category so that this information can be passed on to their retailers. “We have also been looking at innovative merchandising solutions, such as overhead gantries, to help protect sales and ensure retailers are well equipped to compete on an equal playing field with the multiples.”

Scandinavian Tobacco Group (STG) has urged wholesalers to respond to changing consumer habits by stocking valuefor-money ranges, niche tobacco products and category leading brands. When the display ban arrives, STG foresees that consumers will ask for the cheapest product, not the second cheapest, with unfamiliar products being rationalised out in favour of bigger brands that consumers know and trust. James Higgs, head of marketing and public affairs at STG UK, recommends that wholesalers stock their tobacco room accordingly, with Break Little Cigars (rsp £4.59 for 17), Salsa RYO cigarettes (rsp £3.49 for a 12.5g pack) and Moments miniature cigars (rsp £3.72 for a tin of 10) offering “incredible value for money”. “While responding to the market trends is essential, wholesalers should pay close attention to what is in growth within their region,” says Higgs (right). As a result, he recommends that wholesalers offer niche tobacco products, such as Café Crème Filter Arôme, to help gain a point of difference over local competitors and harness retailer loyalty. Higgs explains: “Cigar smokers are incredibly loyal so if they find the product they’re looking for, they will keep coming back for more. This will be the same for wholesalers. If they stock a niche range that works in their customers’ store, they will come back time and time again to stock up. “However, as well as stocking the right range for their customer base, it is just as critical to ensure that the shelves

All data: Nielsen

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Top 10 cigar brands by volume share 1

Café Crème Blue (22.6%)

2

Hamlet Miniature (13.3%)

3

Hamlet (13.1%)

4

Café Crème (11.5%)

5

Castella Classic (8.1%)

6

Moments Miniatures Blue (5.5%)

7

Café Crème Filter Arôme (4.2%)

8

Royal Dutch Miniatures (4.2%)

9

Royal Dutch Miniatures Blue (2.4%)

10

Panama (2%)

Table data: IRI MAT w/e 31/01/15

according to Eleni Koulara, marketing manager at Republic Technologies, with consumers favouring more cost-effective and healthier alternatives. Republic Technologies’ responsiveness to latest consumer trends has also proven instrumental in the continued success of its RYO brands, with product innovation contributing to Zig-Zag’s status as a leading player in the segment. “When it comes to accessories, rolling papers remain a staple of RYO, and they continue to drive sales of accessories within the convenience channel, with the Zig-Zag brand growing at a faster rate than any competitive brand,” says Koulara. “Size of filter is now becoming more important in the RYO sector, particularly among people looking to reduce smoking for health or cost reasons.”


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 ]

Dwarfing the competition Ritmeester Cigars UK reports that the company’s convenience volume sales grew by 80% in 2014, driven by the introduction of a £3.95 price point on packs of Royal Dutch Miniatures and Royal Dutch Miniatures Blue. Although miniatures represent 67% of the total cigar market, down 5%, value packs experienced strong growth last year and currently account for a 20% share of the miniature category. Ritmeester attributes this revenue shift to the rising popularity of Royal Dutch Miniatures and Royal Dutch Miniatures Blue, both of which sit inside the top three value miniature brands in the convenience channel. Ritmeester is now urging stores to capitalise on demand for individual cigars by stocking Royal Dutch Panatella’s new single stick variant (rsp £1). Packed in outers of 20, the new addition offers a low trade price of £12.99 and a 22% profit margin for retailers.

Top 10 ready-made cigarette brands by volume 1

Sterling

2

Mayfair

3

Lambert & Butler

4

JPS RMC

5

Richmond

6

Marlboro

7

Windsor Blue

8

Silk Cut

9

Pall Mall

10

Sovereign Blue

competition, strengthens Marlboro’s brand credentials, and most importantly, contains the world’s best-selling cigarette range.” Marlboro currently accounts for one in three premium cigarettes sold in the UK, with value sales totalling more than £900 million annually. Inkster believes wholesalers should not only dedicate space to leading brands in high growth categories, such as Chesterfield, but also promote new products which correspond with latest market trends. He adds: “Not be ignored are capsule cigarettes and Marlboro Ice Blast, the UK’s number one high cooling capsule cigarette, which has contributed to the segment’s impressive growth. “Our national field force can offer support on a number of areas, including ranging, inventory management, product knowledge, market insights and regulatory changes.” All data: Nielsen

All data: Nielsen

New and novel Philip Morris (PML) has upgraded its Marlboro portfolio by introducing firm filters and new tipping paper and pack designs across five different cigarette variants. The new-look packs, which retain the same iconic Marlboro chevron, display a soft touch finish to create a cleaner, more contemporary design on Marlboro Red, Gold, Silver Blue, Ice Blast and White Menthol packs. Martin Inkster, PML managing director for the UK and Ireland, says: “Our new packaging sets us apart from the

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Imperial Tobacco values the UK tobacco category at just over £15 billion, with factory-made cigarettes at £13.6 billion.

Safeguarding the future Imperial Tobacco has urged cash & carries to help retailers prepare now for the display ban by re-evaluating their stock replenishment and staff educational systems. Greg Fuller, head of route to market at Imperial Tobacco UK, encourages more wholesalers to adopt a relationshipfocused philosophy, with new regulations and illicit trade necessitating greater transparency and staff education. “Wholesalers must ensure their staff understand how important each category is to their customers,” explains Fuller. “To provide the best possible service to your

Table data: Nielsen full year 2014

in the tobacco room are fully stocked at all times and remain so. “Clear labelling on pricing and profit margins will also help retailers decide which products to include in their gantries, especially if they do decide to make any changes once the display ban is in place.” STG highlights Café Crème and Moments Blue cigars as two of its ‘must stock’ items, with the latter ranked as the world’s number one cigar and the former positioned as the UK’s fastest growing cigar brand (IRI). “Cigars offer around 18-20% more profit margin in comparison to cigarettes, making cigar shoppers an important customer base for retailers to retain,” adds Higgs.


[ TOBACCO & ACCESSORIES ]

customers, staff will need to be able to answer questions about your range and legislative updates. “This will foster stronger retailer advocacy and encourage customers to stock more expansive, leading lines which generate higher returns.” Imperial Tobacco highlights rolling papers, economypriced cigarettes and larger pack sizes as three increasingly important parts of the tobacco trading mix, driven by consumers searching for added value. UK adult smokers currently spend around £100 million each year on rolling papers in retail outlets, with Imperial Tobacco’s Rizla portfolio accounting for nearly 90% of sales in the papers category. Rizla Regular Green holds over two-thirds of the market share and with thinner papers now featuring in GV Smooth 8g packs for a limited time only, Fuller believes both products should be considered ‘must-stock’ items. Elsewhere, Imperial Tobacco has overhauled its Carlton cigarette range by lowering its recommended retail price and introducing a new PMP. The rsp for Carlton King Size and Superking Size 19s, in both full flavour and smooth variants, has been lowered to £6.25, while Carlton 10s has been re-priced at £3.25. All variants will also feature a new packaging redesign, including the newly launched Carlton King Size Smooth 19s PMP. This follows the news that Montecristo Minis Red and Blue cigars (rsp £4.73) are now being distributed across the UK, rather than just selected areas of southern England. All data: ITUK

Using all the resources available JTI has warned cash & carries that the implementation of the retail display ban represents the “biggest upheaval” the tobacco category has witnessed in recent years. Jeremy Blackburn, head of communications at JTI, believes category management has never been more important, and wholesalers should be helping retailers to implement and stick to a workable planogram leading up to, and beyond, April 2015. Jeremy Blackburn, head of communications at JTI, highlights the increasing popularity of low price points across the UK ready-made cigarettes and RYO categories, with the value segment accounting for a 49% volume share of the total cigarette market. Market data suggests that sales are being driven by Sterling, the UK’s number one value cigarette brand, and Blackburn recommends that wholesalers stock JTI’s other category leading brands, particularly Mayfair and Amber Leaf, which delivered £1.3 billion and £700 million in retail value sales in 2014 respectively. 60

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To facilitate a smooth transition post display ban, JTI recommends that wholesalers communicate best practice advice and follow the company’s ARTIST’s guide: a Availability. 100% availability, 24/7, is key. Remember to review stock levels each morning and prior to peak trading times to avoid lost sales. a Range. Accurate ranging to reflect category sales is vital. Stocking a wide range of pack sizes, as well as price marked and non-price-marked packs, demonstrates to existing adult smokers that they are getting the best possible choice and value. a Training. Ensure staff are well trained on the law surrounding the sale of tobacco and are kept up-to-date with regulatory and legislative changes. a Innovation. Support new tobacco products, such as B&H Dual House Modernisation, and pack innovations in-store. Look out for JTI’s educational PoS material in cash & carry depots, designed to highlight product development and help decision-making. a Sales. Take time to understand what’s happening in the tobacco category. Make sure you know which areas are in growth, what the most popular pack formats are and what sells well in your region. a Technology. Data and information is vital for the retailer of today. Understanding what is happening in-store and being able to pinpoint key sales trends is a priceless insight. A good EPoS system will help to get the balance right. All data: Nielsen

For further information: Imperial Tobacco (0117) 963 6636 JTI (01932) 372000 Philip Morris 020-7076 6000 Republic Technologies (01494) 556129 Ritmeester Cigars UK 020-8940 8570 Santa Fe Natural Tobacco Company UK 020-8582 0242 STG UK 020-8731 3400

CCM


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


[ PRODUCTS & PROMOTIONS ]

Multiple makeover set to revolutionise soft drinks PRODUCTS OF THE MONTH

BRITVIC SOFT DRINKS – The soft drinks manufacturer has revamped its J2O portfolio by introducing a threestrong range of lightly sparkling premium drinks, specifically for adults. J2O Spritz, which has a texture closer to sparkling wine or champagne, is targeted at 25-35 year-old men and women and comes in Pear & Raspberry, Apple & Watermelon and Peach & Apricot flavours. The launch is supported by a £1.5 million marketing campaign, featuring in-outlet activation, social media activity, digital advertising and a celebrity partnership. Available in two convenient formats of 750ml for grocery and 275ml for leisure outlets, J2O Spritz follows the introduction of J2O Garden Rose – a limited-edition apple, raspberry and rose blend. Available until the end of August, the new packs of 4 x 275ml have an rsp of £4.39 and are backed by PoS and sustained social media activity throughout the spring and summer. Elsewhere, Robinsons has also undergone a similar brand makeover, spearheaded by the release of a new product range called Robinsons Kids. Available in Tropical Twister, Apple Berry and Toffee Apple Tangle flavours, the new single-concentrate one-litre range (rsp £1.59) is part of a series of innovations to strengthen the nation’s best selling squash brand (Nielsen). A new packaging redesign features across Robinsons’ product range, with

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Less is more on-shelf merchandising solutions displaying new in-store messages to segment the fixture in a shopper-friendly way. Five new variants – Apple, Blackcurrant & Cherry, Lemon & Mango, Orange & Raspberry and Pineapple, Mango & Passion Fruit – will also be joining the brand’s portfolio, with limited-edition variants set to be launched later this year to coincide with seasonal activity. All brand extensions will also benefit from a heavyweight marketing campaign, with Robinsons set to feature in a TV campaign later this year. Following a similar redevelopment theme, Britvic has announced the introduction of Tango Blood Orange, which has been developed to embrace the nation’s love affair with fruit-flavoured carbonates (7.7% market share, Nielsen). The addition also displays new disruptive packaging, which has been incorporated across all Tango Orange, Tango Apple and Tango Cherry bottles and cans. Tango Blood Orange is available in two-litre, 6 x 330ml, 600ml and 330ml pack formats, with an rsp of £1.99, £3.49, £1.25, and 60p respectively. The latter two packs are also price-marked at £1 and 60p respectively. Britvic has announced that Tango Blood Orange will be backed by an integrated marketing campaign. Meanwhile, Pepsi Max Cherry, which was launched in June 2014, will benefit from a million pound plus investment in out-of-home print advertising, consumer sampling and social media support. a Britvic Soft Drinks (0845) 758 1781

www.cashandcarrymanagement.co.uk

MONDELEZ INTERNATIONAL – The company has introduced two new 80g PMPs, supplemented by a permanent fixture from its Christmas range. Cadbury Dairy Milk Giant Buttons and Bitsa Wispa join the £1 PMP range, with Terry’s Chocolate Orange Milk Chocolate Minis (rsp £1.99) now available as a permanent product. The average convenience store sells over £200 of chocolate bags every week (Litmus), and the two launches are designed to inspire new occasions for sharing or individual indulgence. a Mondelez International (08702) 400861

Taste of science RECKITT BENCKISER – The global consumer goods company has invested £4 million in launching a high-profile Nurofen Express promotional campaign, enlightening consumers on the real source of a headache. The campaign, which concludes at the end of August, aims to promote Nurofen Express tablets, caplets and liquid capsules via all media touch points, including TV, print and advertising on trains and the tube. The campaign will also be focused on targeted digital communications across social and medical platforms. a Reckitt Benckiser (01753) 217800


[ PRODUCTS & PROMOTIONS ]

Brand reinvention

Fruity goodness

Value pricing push

SHS DRINKS – WKD, Britain’s biggestselling RTD brand (CGA), has undergone a full packaging redesign across all pack formats and variants. From 700ml bottles and cans to 275ml bottle multipacks and carton outers, the contemporary new look features an evolution of the WKD logo, as well as attention-grabbing visuals on four-pack sleeves, multipack cartons, case outers and single-serve SKUs. The new bottle graphics also display the word ‘original’ to emphasise the brand’s credentials, while the perforation line across 6 x 700ml bottle cartons has been enhanced to improve the ‘tearability’ of the outer. a SHS Drinks (01452) 378555

GRACE FOODS – The UK’s leading supplier of Caribbean food and drink (IRI) has revamped its Aloe Vera Drink portfolio by introducing new 500ml and 1.5-litre take-home packs. Strawberry and Mango flavours have been released in larger pack formats (rsp £2.49), alongside a new 500ml Peach Flavour Drink. Retailing at around £1.09, the latter is available in outers of 12, while the former two lines come in outers of six. Both launches are targeted at adding incremental growth to the Caribbean soft drinks category, which accounts for 41% of all value sales of Caribbean food and drink (IRI). a Grace Foods (01707) 322332

PROCTOR & GAMBLE – The consumer goods company has overhauled its hair care range by releasing a selection of PMPs across its best-selling SKUs. A £2.99 price point now features on selected bottles of Pantene, Head & Shoulders and Herbal Essences, with Clairol 5in1 Camomile Shampoo and Silvikrin Max Hold Hairspray displaying a £1.99 and £2.25 price-mark respectively. Helen Johnson, hair care brand manager at P&G, said: “Running an offer on these popular haircare SKUs will ensure that both consumers and retailers are getting the best possible value from a high turnover category.” a Proctor & Gamble (01932) 896000

Creative pleasure

Frappé frenzy

Dietary sensitivity

WRIGLEY – Starburst, one of the top five fruit confectionery brands (Nielsen), will benefit from a multimillion-pound investment throughout 2015, driven by a 16-week TV advert. Incorporating a mixture of TV and video-on-demand spots, the campaign runs until the end of May and aims to promote how ‘Unexplainably Juicy Starburst is’. This follows the introduction of reduced-size outers, with 24 x 45g sticks (rsp 49p) now in a case. Meanwhile, 150g bags (£1 PMP) and 192g pouches (rsp £1.28) now come in 12s. a Wrigley (01782) 752094

KERRY FOODSERVICE – To help operators tap into the fifth fastest growing coffee serve out-of-home, DaVinci Gourmet has introduced three Frappé Mixes. The Coffee, Mocha and Vanilla Bean Frappé Mixes provide an all-in-one solution for quick, consistent preparation. To serve, operators simply blend the mix with a cup of ice and milk. Operators are advised to top with whipped cream or DaVinci Gourmet sauces to entice 45% of consumers who purchase drinks for ‘me time’.

MONDELEZ INTERNATIONAL – Responding to consumer demand for products to suit different dietary requirements, Philadelphia has launched its first lactose-free variant in the convenience channel. Philadelphia Lactose Free, which contains full fat soft cheese, has an rsp of £1.99 and aims to widen the brand’s customer base. Philadelphia also plans to engage consumers with a £10 million heavyweight campaign in 2015, spanning TV, digital and social media. a Mondelez International (08702) 400861

All data: independent research a

Kerry Foodservice (01784) 430777

www.cashandcarrymanagement.co.uk

March 2015

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330ml sparkling, 500ml & 750ml still sportscap and 1.5 litre still. Call our sales office: 01547 530 220

www.radnorhills.co.uk

Profile for Cash & Carry Management

C&C Management March 15  

C&C Management March 15  

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