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MAY 2014

Wholesalers aim to cash in on the Tour de France Grand Départ Michael Catling strengthens C&C Management editorial team

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Weekly news bulletin now online for all our readership Glasgow faces pricing mayhem with United’s branch relaunch

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For every valid entry Coca-Cola™ will also donate 10 pence to StreetGames.

Bill Laird on Today’s growth in licensed and the new NDD recruits

*Source - HIM 2010 © 2014 The Coca-Cola Company. “Coca-Cola”, “Coke”, the design of the “Coca-Cola Contour Bottle” and the “Dynamic Ribbon device” are registered trademarks of The Coca-Cola Company. Valid from 29/04/14 until 13/07/14. 13yrs+ (under 16s require parental/guardian consent). GB, CI and IoM residents only. Bonus draw to win 1 of 300 Coca-Cola FIFA World Cup footballs for entries received between 00:01 on 14/07/14 and midnight on 17/08/14. Normal exclusions apply. Full Ts&Cs at www.winaball.co.uk Promoter: Coca-Cola Great Britain, 1 Queen Caroline Street, London, W6 9HQ.

The business magazine for cash & carry/delivered wholesalers


A proven promotion checking service for suppliers to the C&C/wholesale sector from Cash & Carry Management For further information: www.cashandcarrymanagement.co.uk tel: 01342 712100


contents

A site worth seeing A special addition to Cash & Carry Management’s website is a weekly news bulletin in an easy-to-digest format – not a heavily bombarded daily input, but a regularly updated tranche of news for our readers. In case you haven’t had the chance to look for yourself, you can do so by visiting www.cashandcarry management.co.uk. You will see not only the faces of the team that brings you the best news and features in the C&C/wholesale trade, but also details of other aspects of proprietor Winlove Publications’ business interests. For starters, there’s our exclusive Promo Checker service, which monitors national promotional activity by suppliers in C&C/wholesale depots. Then there’s our annual AWARDS event, which will mark its 11th birthday later this year. Those wanting to submit editorial material, or advertising, for our wide range of specialist category features can also find details of what is appearing and when. We also have – as can be seen on the Cash & Carry Management site – a broad spectrum of prestigious supplier partners who contribute to our annual Category Management supplement. And then there’s our proud partnership with the Scottish Wholesale Association, which goes back 20 years. Over this period, we have helped produce the SWA yearbook and regular newsletters. We take particular pride in our role in the SWA’s annual Achievers awards scheme. It might all sound boastful, but we feel we have cause to be. Happy reading and surfing.

Wanis is marking its 50th anniversary by raising £50,000 in support of five charities ... see p.5

news

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news extra

12

in focus

13

spotlight

14

18

supplier strategy

19

cereal bars

20

beers & lagers

22–24

soft drinks

26–36

products & promotions

Kirsti Sharratt Mervyn Gilbert

Features Editor

16–17

confex trade show

employment law

News Editor

4–8

swa update

tour de france grand départ

Managing Editor

Bestway expands its ethnic food operation ... see p.4

Amber Aitken

37 38–39

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

Editorial Assistant

Michael Catling

Tel (01342) 712100

Media Sales Manager

Clare Phillips

Fax (01342) 712101

Publishing Director

Martin Lovell

Email mail.winlove@btconnect.com

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

www.cashandcarrymanagement.co.uk

ISSN 1352-254X

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

Cash & Carry Management

• May 2014 • 3


news IN BRIEF Fresh changes Two appointments have been made by Bestway Group in its fresh food team. Bob Hughes, formerly with Booker/Makro, Compass and Peters Food Service, becomes fresh produce category negotiator, based at the Park Royal head office, and Oguzhan (Oz) Cakiroglu switches after two years in the frozen foods department to take on the role of chilled foods category negotiator. Both report to Steve Carter, chilled & fresh category controller.

Contract switch From the start of 2016, field marketing agency Cosine, of Haddenham, Bucks, will act for Philip Morris in the UK, handling such brands as Marlboro and Chesterfield. Imperial Tobacco, which currently has the contract, will continue to represent Philip Morris in Ireland.

Helping hand A holiday home for the elderly and frail in Ross on Wye received a spring makeover thanks to 22 members of AF Blakemore’s IT staff.

Wrong name Apologies to Terry Larkin, group general manager of JJ Food Service, whom we inadvertently referred to as Terry Norris last month.

4

Pub club under consideration Today’s Group is ‘at a very early stage’ of investigating whether it would be viable to introduce a retail club style approach for independent pub owners and landlords. The idea follows the announcement that the group has won the support of virtually the whole of the membership of the former National Drinks Distributors (NDD) (see p.13). Managing director of Today’s Bill Laird told Cash & Carry Management: “In short, the plan would involve creating a set of regular three or four-weekly promotions from across a range of beer, spirits, wine, food and soft drinks brands, plus associated products, into themed or seasonal packages complete with PoS material, marketing and other support. These would be negotiated

A club scheme would help generate more income.

and developed centrally by Today’s and then actioned between our on-trade wholesalers and their customers – pub owners. “The benefits would include: regular promotions, which would build consumer loyalty; major branded support; professional marketing; reduced stock investment; and consistent, but varied, promotional activities

in the bar throughout the year.” Laird added that currently the majority of pub landlords have to create and implement their own activities or depend upon sales teams for individual brands walking in and persuading them to run a particular one-off activity for a given period. Tel: Today’s Group (0844) 247 0700.

Wider coverage for MAP Bestway Group’s ethnic foods arm, MAP Trading is planning to widen its geographic coverage, which already extends to many parts of the world. Head of sales Gurmail Lai (right) told Cash & Carry Management: “Specialist world foods are gaining increased shelf space on independents’ shelves, with the UK now a truly ethnically diverse country with an extensive multi-cultural kitchen. “We have always had a tremendous South Asian range, but we are now sourcing product from around the globe, including Africa, the Middle East and Eastern Europe, particularly Poland.” Lai did not specify untapped areas, but said:

• Cash & Carry Management • May 2014

“We want to be the undisputed leader in world foods, so we look at the resident UK ethnic communities and identify gaps.” MAP Trading’s major brand is White Pearl, which covers basmati rice, lentils, pulses, flour (atta), oil, tinned vegetables and non-alcoholic drinks. The range also includes Aloe drinks from Vietnam, noodles from Singapore, coconut drinks from Saudi Arabia and

mixed spices and rice from Pakistan and India. The news that the company will be widening its range will be welcomed not only by retailers, but also by other wholesalers it services, including Southall-based TRS, Afro-Caribbean specialist Wanis, of east London, Blackburn-based Khanjra International Foods and Restaurant Wholesale, of Manchester and Barking, east London. It is producing a monthly deal brochure that will be distributed to all Bestway group customers and will also be available in the cash & carries, where the emphasis on world foods will be clearly highlighted. Tel: Bestway Group 0208453 1234.

www.cashandcarrymanagement.co.uk


news

Lifetime achievement Bestway Group chairman Sir Anwar Pervez, OBE H Pk, was presented with a lifetime achievement award at the Asian Business Awards ceremony in London. The annual event, where

Sir Anwar with his award.

Education Secretary Michael Gove was chief guest, marked the achievements of the Asian community and the impact its members have made on the UK and global economy. Gove said: “We celebrate some of the most successful Asians in the UK. Many started with a small idea and worked their way up the ladder to where they are today.” That description precisely fits Sir Anwar, who began his food career in 1963 by opening a convenience store in Earls Court, London, and then ventured into cash &

carry in 1976 with the launch of his first depot in Acton, north-west London, building Bestway Group into a £2.5bn business, including 63 branches and food wholesale operation, MAP Trading. On being handed the award, Sir Anwar said: “It means a great deal to receive recognition for my efforts. Like so many others, I came to the UK with very little other than a willingness to work hard, the dream of starting a business and the desire to create a better life for myself and my family.” Tel: Bestway Group 0208453 1234.

‘A gift for criminal gangs’ JTI UK managing director Daniel Torras (below) has criticised regulations in the revised Tobacco Products Directive, saying “they restrict the way products are made, packaged and sold and will have a huge impact on thousands of legitimate businesses across the UK.” He is particularly scathing about the EU’s decision to ban 10s, menthol and

pouches of tobacco under 30g. “This is a gift for criminal gangs as more smokers who find that their preferred pack is no longer available will be tempted to buy illegal tobacco. “Meanwhile, the UK government’s exchequer will have to plug the financial gap left and thousands of legitimate businesses will suffer.”

In the UK, Torras claims, over 40% of tobacco sales will be banned by the directive, “creating a massive disruption to the market”. He adds that the UK government should also “reconsider its position to proceed with plain packaging as the TPD already prescribes excessive graphic health warnings covering 65% of the front and back surface of the pack positioned at the top edge and 50% of the sides.” Tel: JTI UK (0800) 163503.

Fighting on three fronts Three promotions have been made available to Bestway and Batleys customers this month: The Deals, which include a wide discounted range; a Cider Festival; and Core Connect, which lets retailers gain a minimum of 3% rebate on best-sellers. Among the products on

offer in The Deals are: Pepsi and 7Up (price-marked at 99p), 12 x 500ml/600ml at £4.99; The Famous Grouse (6 x 70cl), £63.99; Doritos PMP £1.29 or two for £2 (10 x 132g), £7.99; a multibuy on Mars ice cream; and tobacco discounts on Cutters Choice. All key lines are featured

www.cashandcarrymanagement.co.uk

in the Cider Festival, both branded and own-label. Core Connect (‘Buy More, Sell More’) items include: Volvic Touch of Fruit 24 x 50cl, Kellogg’s 39p snack range, Pot Noodle PMP £1.09, and Walkers crisps PMP 55p. Tel: Bestway Group 0208453 1234.

Michael joins us Cash & Carry Management is pleased to announce that Michael Catling (above) has joined our team of respected journalists as editorial assistant. Michael, 21, recently graduated from Staffordshire University with a first class degree in sports journalism and brings to Cash & Carry Management an innovative and creative mindset, alongside a background in magazine writing and publishing. He will work closely with managing editor Kirsti Sharratt and will be involved in a number of projects scheduled for later this year.

£50,000 for 50th Afro-Caribbean specialist, Wanis, of east London, is marking its 50th anniversary by raising £50,000 in support of five charities: the UK’s African Caribbean Leukaemia Trust; Guru Nanak Trust Fund for the disabled in India; St Ann’s Church, Greenwich Town, Jamaica; Leyton Orient Community Sports Programme; and Waltham Forest Cinema Trust. A range of fundraising activities is planned. Tel: Wanis 020-988 1100.

Cash & Carry Management

• May 2014 • 5


news

Advancing in education Explorer Sir Ranulph Fiennes with Bill Laird.

Double for Dee Bee Today’s Group managing director Bill Laird, who with the help of explorer Sir Ranulph Fiennes presented awards to some of the group’s top performers at the annual Stoneleigh show, also announced substantial growth in the on-trade sector (see p.13). Dee Bee, of Grimsby, won two awards – for its Re-Scan EPoS solution (also adopted by fellow members JW Filshill and Savage & Whitten) and for its retail development programme for symbols. Member of the year was Agrimark, on the Isle of Man; symbol group retailer was Fran Pearcy, of Broughton, Lincs; and top foodservice member was Total Foodservice, with depots in Clitheroe and Huddersfield. Other winners: Outstanding contribution to UK wholesale: Wanis, of Leyton, east London. Retail development programme, Today’s retail club: M9 Cash & Carry, of Grangemouth. Rising star: SERT-MST, of Swandlincote. Corporate social responsibility initiative: Alfa Wholesale, Glasgow. Special recognition: George Kirkpatrick, managing director of James Wilson (Orkney). Tel: Today’s Group (0844) 247 0700.

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Bidvest 3663 has won a seven-year deal to supply Hertfordshire Catering Ltd with frozen foods. It complements the wholesaler’s existing fresh and grocery products contract. The foodservice specialist will be supporting the company to deliver ‘Universal Infant Free School Meals’ under a new government programme as well as providing advice on the new School Food Plan compliant ingredients and meal ideas charter agreed by the Department of Education. HCL services 392 primary schools and 45 secondary schools and academies

across Hertfordshire and beyond. Bidvest 3663 has been supplying ingredients to the education sector expert since 2009.

Part of its brief is to work closely with HCL ‘to deliver innovative menu solutions and on-trend cuisine’ across a diverse customer base. Lin O’Brien, HCL chief executive, said: “We awarded a further contract to

Cardiff expansion Following strong growth in 2013 and a buoyant start to this year, Hancocks has moved its Cardiff operation

into larger premises to cope with increased demand. The C&C, which opened in 2004, has increased in size by 40% through the move to a new 14,000 sq ft site in Penarth Road, half a mile from the old premises and

with better parking facilities. The confectionery specialist’s chief executive officer Mark Watson said: “We have plans to open new depots during the next couple of years, but it’s also important to review and develop our existing sites when necessary. “In Cardiff we definitely needed a larger depot to expand further and hold the stock required to support our loyal customers, who are growing in numbers every week.” Tel: Hancocks Cash & Carry (01509) 216644.

Tougher sentence Joseph Paul Honeyman, of Middlesbrough, jailed for 14 months in October last year for evading nearly £400,000 in excise duty on 984,500 cigarettes, 710kg of handrolling tobacco and 499 litres

• Cash & Carry Management • May 2014

of vodka, has been ordered by HM Revenue & Customs to pay a further £216,000 within six months or serve an extra 30 months in prison. Tel: HM Revenue & Customs 0300 200 3700.

Bidvest 3663 as we have been extremely impressed with its level of engagement and understanding of our business at a time of both opportunity and challenge within the education catering sector. It offers us so much more than a delivery service. “We will also be working together to explore new service delivery solutions.” Paul Brown, business development controller for the education sector at Bidvest 3663, commented: “Under our added value promise, we will continue to embed ourselves in the business, using our team of experts. “We are working with HCL to help them assess the impact new changes will have on their primary school customers. “We have a number of ground-breaking activities planned, such as food safaris around London to discover and sample the latest food trends.” Tel: 3663 (0370) 3663 000.

‘Defies logic’ BAT has hit out out at conclusions reached by Sir Cyril Chantler and his government-backed review team on plain cigarette packaging. A spokesman for the tobacco supplier said the statement that plain packaging could be an effective measure for public health in the UK, despite admitting there are limitations to the evidence available, “defies logic”. It pointed to data from Australia where, after one year, “it is clear the plain packaging experiment has failed”. Tel: BAT UK 020-7845 1000.

www.cashandcarrymanagement.co.uk


news

Gold spinner

Leisure contract Bourne Leisure, whose holiday sites operate under the Butlins, Warner and Haven names, has appointed Blakemore Foodservice to handle the distribution of fresh, chilled, ambient and frozen foods. The five-year contract, which takes effect from November and is valued at £150m, was previously with Brakes for more than 10 years. It will be administered from two of Blakemore’s depots – in Wakefield, West Yorkshire, and Wednesbury, West Midlands. The leisure company has 13 venues operating as Warners, three under the Butlins name (Skegness, Minehead and Bognor Regis) and 35 Haven caravan parks. Its head of supply chain Dan Workman told Cash &

Carry Management: “While Blakemore Foodservice will be servicing the whole Bourne estate over all temperature categories, nonfood at the moment is outside the agreement. But this might fall into the operation at a further point.” Blakemore Foodservice sales & marketing director Jim Dudley said that the contract would be the wholesaler’s second biggest behind Marston’s. It also follows the awarding of a deal to service eight sites operating as OK Diners (see p.8). Dudley added that winning the Bourne Leisure contract would result in the wholesaler making substantial investment in new vehicles and additional staff. Tel: Blakemore Foodservice 0121-526 8400.

Inexpensive cider Landmark Wholesale has launched Amber Strong ‘every day’ cider. The 5% abv drink is claimed to be comparable to other C&C/wholesale and supermarket ciders, but up to 50% cheaper than leading brands. It is price-marked at £2.99 for 4 x 440ml cans, offering a POR of up to 30%.

The group’s senior trading controller Jon Burton commented: “Not only does Amber Strong offer a great taste at a really competitive price, but it also provides retailers with something extra to offer their customers as we approach the summer months.” Tel: Landmark Wholesale (01908) 255300.

www.cashandcarrymanagement.co.uk

Dhamecha’s Gold Rush trade days, which ran in all seven branches between midMarch and mid-April, resulted in a “fantastic turnout of customers at all our C&Cs, with very pleasing sales,” said chief executive Pradip Dhamecha (right). He added that the company received good support from its key suppliers, all of whom attended the events. “They enhanced the trade deals on each day to hit their targeted volumes. Today’s Group was also very supportive and executives were in attendance at all our depots. “They also organised a lot of giveaways with own-label prizes, the top award being

£100 worth of stock.” Further trade days are planned for the rest of the year, said Dhamecha. “Our trading team work hard to put excellent promotions together and our general managers and their teams execute these to achieve the desired success.” Tel: Dhamecha Cash & Carry 020-8903 8181.

Top student chefs A team from Westminster Kingsway College in London won the 2013/14 Brakes Student Chef Team Challenge live cook-off final, held as part of last month’s Hotelympia event. They succeeded against seven other college teams, with Farnborough College of Technology coming second and South Lanarkshire College third. Entrants to this year’s competition, sponsored by BD Foods, of St Leonardson-Sea, East Sussex, and ABP Food Group, of Ardee, County Louth, and supported

by the Craft Guild of Chefs, were challenged to create a three-course, four-cover, menu inspired by a ‘Back to Basics’ theme in one hour, 45 minutes. The winning menu included a starter of cured mackerel two ways (seared and tartare), main course of pancetta wrapped pork fillet, braised pig’s cheek and black pudding, and dessert of vanilla egg custard, spiced wine glazed plums, nutmeg toasts, orange meringue and orange gel. Tel: Brakes Group (01233) 206000.

Mark Irish (rear, second left), head of food development at Brakes, is seen with fellow judges and the winning team (front left).

Cash & Carry Management

• May 2014 • 7


news

‘King’ of the road Blakemore Foodservice has won a three-year contract to supply roadside restaurant chain OK Diners with fresh, ambient, chilled and frozen food, as well as drinks. The deal, valued at £3m and effective from this month, is being serviced by the wholesaler’s Wakefield depot. OK Diners, which operates from eight sites in England and Wales, has its head office in Middlewich, Cheshire. It serves American 50sstyle food, including burgers, spicy chilli dogs, wing combos and grills, milk shakes and desserts. Said a spokesman for the company: “All this is brought

The Leominster branch is one of eight in the chain.

to customers in casual surroundings, with a 50s soundtrack and a smile.” Blakemore Foodservice’s sales & marketing director Jim Dudley said: “This win is testament to our flexibility, as

Crunch time for C&Cs United Biscuits has completed a series of 40 C&C event days for the impulse channel. The programme included appearances at five branches operated by Dhamecha, 11 owned by Bestway and four Parfetts’ depots. The aim was to highlight the sales potential of the biscuit category and let independents know that smaller cases are available for

selected ranges – for example, 12 of Milk Chocolate Digestive instead of 15. The UB team also offered advice on how to boost sales using the company’s fivestep ‘Better Biscuits, Better Business’ plan. Sales staff arrived in McVitie’s ‘Sweeet’ vans, welcoming visitors alongside giant instore biscuit displays. Tel: United Biscuits UK 0208234 5702.

Displays like this were staged by UB.

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Easier ordering

• Cash & Carry Management • May 2014

products different to our normal range had to be sourced, specially to suit UK Diners’ menu. “It’s an important win for us and adds to our roadside customer base, which also includes Roadchef and Moto. “It makes us the leading supplier in this part of the sector.” Tel: Blakemore Foodservice 0121-526 8400.

Brakes has launched major improvements to its online ordering system, including a version specially geared towards mobile devices. Caterers can now place orders whenever they like via www.brake.co.uk, with access to all products and prices through simple search & browse functions. Customers can place and amend their orders on their mobile phone, right to the cut-off point on the day prior to delivery. They can also shop by pre-defined order templates and past orders, receive email confirmation of orders, amendments, cancellations and substitutions and have real-time stock checking and reporting at the time of checkout. Tel: Brakes Group (01233) 206000.

Wine range nears £3m SPAR UK’s Exclusives wine range has achieved sales of £2.8 million in the year since its launch. Sparkling Italian Perlezza prosecco brut and rosé have alone hit £1.5 million, with 90% distribution in licensed SPAR stores. The other four wines have generated £1.3 million, with the Terra Ricca (Italian) brand and Sola (Spanish) leading the way. The 12-variety selection also includes French wine La Vasque. The symbol group introduced the Exclusives wine

range in March last year, in a move ‘to provide consumers with credible, affordable alternatives to either own label or branded wines’. Commenting on the firstyear sales achievement, Chris Lewis (left), SPAR UK licensed trading director, said: “This proves our Exclusives range truly fills the gap in the market between own label and brands and has helped us boost the profile of our wines.” The drinks have also won 13 medals during the wine awards season. Tel: SPAR UK 020-8426 3690.

www.cashandcarrymanagement.co.uk


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*research conducted by Cambridge Direction 2012 and 2014

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


swa update

GAP training Training is one of the Scottish Wholesale Association’s priorities and this year we have ramped up our activities in this area.

by Kate Salmon

Top opportunities ‘Going for Gold’ is the theme for the Scottish Wholesale Association’s annual conference in a year that will see the Commonwealth Games in Glasgow, The Ryder Cup at Gleneagles, Homecoming Scotland and the referendum on independence. The SWA event takes place at Crieff Hydro, Perthshire, on 13-15 June. Katherine Grainger CBE, the rower who won a gold medal at the London Olympics in 2012, heads the line-up.

Tamlin Roberts, managing director of Mercurytide, a digital specialist; and Jill Livesey, director of him! The SWA’s mentoring programme will take centre stage as mentees Paul Dickson of Booker and Stuart Harrison of JW Filshill talk about their experience along with Graham Benson, one of the mentors. Wholesalers addressing the audience will include: Julie Dunn, operations director of Dunns Food & Drinks and SWA senior vicepresident Bill Laird, managing director of Today’s Wholesale Services Philip Jenkins, managing director of Sugro Martin Williams, managing director of Landmark Wholesale Chris Gallacher, retail development controller Scotland of Booker and SWA junior vice-president. Suppliers presenting at the event include: Stephen Glancey, group chief executive, C&C Group and Tennent Caledonian Breweries; Jamie Dunning, vice-president sales, Mars Chocolate; Bryan Donaghey, chief executive, Whyte & Mackay; and Jonathan Kemp, commercial director, AG Barr. Tel: SWA 0131-556 8753.

• • • • •

Katherine Grainger CBE is the SWA’s guest speaker.

Another keynote speaker from outside the wholesale industry is John Howie, chairman of CBI Scotland and managing director of Babcock’s marine & technology division, who will discuss ‘The Health of the Nation’. Delegates will also hear from Peter Lederer, chairman of The Gleneagles Group;

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• Cash & Carry Management • May 2014

In association with Mars Chocolate, one of our supplier members, we recently ran the Essential Negotiator, an intense two-day residential workshop by GAP Training. Just 12 places were available. Aron Adams, sales training manager at Mars Chocolate, worked with the delegates on key skills, including how to prepare for negotiations, how to identify and control the balance of power and, crucially, how best to question and listen to others. The workshop also devoted time to developing and presenting creative proposals and highlighted an eight-step process to give delegates more confidence. Members represented at the workshop were: Batleys, Bestway, CJ Lang, JW Filshill, Sutherland Brothers, United Wholesale Grocers, and United Wholesale (Scotland). I’m delighted to say that the feedback was extremely positive. Our president Asim Sarwar, managing director of United Wholesale (Scotland), commented: “It was a good learning experience which gave insight into how suppliers pitch and showed how to create value and maximise benefits.” Other comments from delegates included: “If you get the opportunity to take part, do so” and “It was a very good workshop and well worth the investment in time”.

The SWA is in discussions with Mars Chocolate to repeat the Essential Negotiator workshop later this year. See our website (www.scottishwholesale.co. uk) for details of our other training events planned for 2014. These include: Selling & Negotiation Skills for Telesales; Category Management; and Brand Selling, Selling with Impact. There is clear recognition within the SWA that we need to motivate and develop our industry’s emerging talent, and our mentoring initiative is also progressing well. Mentoring can help improve the skill set of ambitious individuals and help them be better prepared to cope with their day-to-day job, be that in buying, sales development or management. Our mentoring programme has been hugely successful and we’re delighted that new mentees are still signing up. Training within the wholesale industry has never been more important and we believe we are leading the way when it comes to innovation and creativity – and by providing relevant programmes that our members want. Tel: SWA 0131-556 8753.

www.cashandcarrymanagement.co.uk


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news extra

Watch out Glasgow! United Wholesale (Scotland) is relaunching its Maxwell Road branch later this month. United Wholesale Scotland’s managing director Asim Sarwar – the wholesaler renowned for shaking up the trade – is at it again. Glasgow’s cash & carry/wholesalers saw pricing mayhem when United opened its 170,000 sq ft Queenslie C&C and distribution centre in 2007 and they are going to see a similar ruckus with the relaunch of the company’s Maxwell Road branch on 29 May. “United is famous for its aggressive pricing and customer service, and when we relaunch Maxwell Road we will be taking both these elements to another level,” he promises. United has invested £2.2m in extending the warehouse from 18,000 sq ft to 40,000 sq ft. Alcohol will be sold for the first time from a 12,000 sq ft section; the tobacco room is larger; an additional 8,000 sq ft has been given to existing brands; and there are twice as many checkouts. The car park has been extended and new offices built. Sarwar, who is president of the Scottish Wholesale Association, says: “Once things have settled down, we will look to introduce Asian foods and catering products into the branch.” United has adopted a combative marketing strategy for the relaunch. ‘Armageddon’ is the theme and retailers in Glasgow are being sent a teaser in the form of a postcard or letter every week until the opening. The wholesaler is also advertising on Scotland’s Asian radio station, Awaz FM. The manager at Maxwell Road is Tanvir Moughal, who formerly headed up the Queenslie branch. Sarwar expects the number of staff (approximately 200 between the two sites) to stay the same, at least initially, because the company will gain efficiencies in distribution.

United has adopted a combative marketing strategy.

Of United’s £212m turnover, Maxwell Road accounts for £95m and Sarwar is targeting an increase of £30m in the first year of trading. The number of customers is also expected to rise – from 2,500 (for the two sites) to as many as 3,800. United currently services 275 Day-Today stores in Scotland and it also has 25 members of its own retail club U-Save. “Before we opened at Queenslie, the number of symbol group fascias was minimal,” Sarwar reports. “We have managed to educate retailers to fulfil the potential of their stores and we are hoping to replicate that this side of the city. We can probably double the number of Day-Today stores in Ayrshire and Renfrewshire from the 60 we have presently.” At Maxwell Road, 35% of sales occur between 5am and 8am thanks to the bread rush, with the same percentage achieved between 7pm and 9pm as retailers maximise the time in their own stores. “Whatever product we sell at Queenslie, Maxwell Road outsells it because of very high footfall,” says Sarwar. Cash & carry will remain the mainstay of business at Maxwell Road because although United will deliver goods after customers have visited the depot, the Queenslie distribution centre will continue to handle telephone and fax orders across the customer base, which covers Scotland’s central belt and includes Ayrshire, Lanarkshire, Edinburgh, Fife, and up to Stirling. An ontrade service was recently added to the delivered operation. In September, United is moving into Edinburgh with the opening of a 65,000 sq ft branch at Newbridge. Representing a £2m development, the former hardware depot will offer a full range C&C/delivered service. “In Edinburgh, we want to replicate everything we have done at Queenslie,” says Sarwar. “Newbridge will become the wholesaling hub as we bring footfall to the area, which will benefit not only us but also Batleys next door.” In the meantime, Sarwar is excited about all the hard work at Maxwell Road coming to fruition. “We have managed to do this the way we wanted. I grew up in this branch and the relaunch can’t come soon enough. I’m Sarwar: ‘I grew up in this branch and the relaunch can’t come soon enough.’ like a four year-old waiting for Christmas.”

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in focus

The drinks are on Today’s! Mervyn Gilbert speaks to Today’s Group md Bill Laird about the latest developments. In what must be one of the quickest changes of mind in the C&C/wholesale channel, four on-trade drinks wholesalers who had planned to join Landmark Wholesale have now signed on the dotted line with Today’s Group. They are: Edwards Beers & Minerals, of Leighton Buzzard, Beds; Northampton-based Middleton Wholesale; Jack Sullivan, of Swansea; and Glamorgan Beers, of Llantrisant. To his credit, Today’s managing director Bill Laird is not crowing that he has nabbed the quartet at the expense of his major rival. His opposite number at Landmark, Martin Williams, has yet to make any comment publicly. You have to go back to the latter part of last year (Cash & Carry Management: October) when it was announced by Landmark that six member wholesalers of National Drinks Distributors, known as NDD, would be joining the group. Laird wasn’t having that! Soon after came the response that 14 of the remaining 17 NDD members would be moving to Today’s. So now, with the four who have had a change of heart, Today’s has 18 ex-affiliates of the doomed drinks group. Not only that. For the coming year it is making use of the services of Steve Graham, former chief executive of NDD. “Steve has joined us for 12 months before retiring so we can bed in our significant influx of new members,” says Laird. “He will also develop our on-trade division, using his experience and knowledge in the market place.” Meanwhile, one of the remaining ex-NDD members, Romford-based Hills Prospect, has decided to go it alone. Purchasing director Phil Merritt said: “Six of us decided to join Landmark Wholesale from January, but we then changed our mind. We ourselves won’t now be joining any group.” What this all means is that licensed is now playing an ever-increasing role in Today’s operations. Of its £5.7bn turnover through 179 members operating 215 depots, £1.5bn comes from drinks, including more than one-third of this from on-trade business. The 18 former NDD members have alone added almost £220m of buying strength to Today’s existing £300m-plus in this channel. Despite this rapid sectoral expansion, the largest amount of the group’s turnover, £3bn, comes from areas such as tobacco, non-food, foodservice, health & beauty and specialist operators, with £1.25bn from impulse and grocery. What about further recruits? Says Laird: “We have had a significant number of enquiries from other on-trade wholesalers – all unaffiliated, because that’s the way the business is. We’re quite close to signing some of them.” And other C&C/wholesalers? “It’s hard to get anyone to jump ship these days,” he comments. “In any case, we have enough on our hands with what we’ve got. “Our existing wholesalers are spending around £20m this year on improvements, including member of the year Agrimark on the Isle of Man, which is investing £500,000 in depot refurbishment and upgrading its multi-temp fleet.”

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Laird announces some seriously interesting developments.

Other activities The newly-launched Today’s Charitable Foundation has raised over £10,000 for two causes: the Bluebell Wood children’s hospice in Sheffield and Shrewsbury-based Village Water, which works to provide safe drinking water in Zambia. Half of this was raised at the group’s annual exhibition in Stoneleigh, Warks, and the other half from its own funds. The two charities will share the total sum. An additional amount was raised through donations made by visitors to the show after the distribution of 2,000 500ml bottles of water. Stock left over from the exhibition was later given to the hospice. Today’s new Plan for Profit brochure includes details of more own-label products, more information on planograms, and sections on NPD and drop shipment services. The group has also enhanced its website. There are now around 1,700 retail club members and more than 470 sporting Today’s fascias. The Doncaster-based group has also relaunched Amberdown cider. The two varieties are dry apple (5% abv, two-litre and three-litre bottles) and white (7.5% abv, one, two and three-litre). Both skus offer a minimum 25%30% POR. The launch is being supported by instore PoS material and merchandising.

Cash & Carry Management

• May 2014 • 13


spotlight

sponsored by

‘Be polite and positive’ This month’s article features Tom Gittins, business development manager at Confex. What has been the major milestone or turning point of your career? Joining Confex in 2009. This is also when I joined the wholesale sector and I honestly haven’t looked back. We operate in a vibrant, effective and colourful line of business and we also seem to be thriving (noting the recent announcement by Tesco that its pre-tax profits were down by 6.3%). Who has been the biggest inspiration to you? My mother. She has always been there for all of our family and always thinks of us before herself. As well as being a great mother and grandmother, she finds the time to be managing director of Confex! How do you maintain a work/life balance and how have developments in technology affected this? I believe that technology has improved the potential for a work/life balance as it offers flexibility. I am very lucky to have a job which mixes office time with time out on the road, and it is great knowing that you can respond to suppliers and members without being in the office. I find that if you can

12 years in horseracing industry After gaining a degree in economics at Bristol University, Tom Gittins spent 12 years in the horseracing industry. His roles included working in Dubai for Sheikh Mohammed’s racing operation, managing Stratford-onAvon Racecourse, marketing racehorse ownership for the governing body of British horseracing, and starting up his own business, Foxtrot Racing, which ran racing syndicates with more than 50 horses trained all over the UK. After five years – in 2009 – he was approached and sold the business. This led to a change of career path into wholesale and a job at Confex.

deal with a situation quickly and avoid a workload backlog, then you can maintain a good work/life – even when owning an iPod and an iPad! What most frustrates you in business (and in life generally)? Bad manners. Good manners leave a positive impression and will get you everywhere. I recently spoke to a supplier who said that a wholesaler had been rude to him which is so shortsighted. Everyone is under a lot of pressure with less resource available and manners costeth no man... If you were able to retire tomorrow, would you, and if so, how would you spend your time? I am afraid I would. I am very lucky to have a few pastimes which a) take up a lot of time and b) I will never tire of! I am a keen horserider in the winter and then switch to golf for the summer. I also enjoy horseracing, having worked in that industry for 12 years prior to joining the wholesale sector. What advice would you give someone starting his/her first job? Stay positive and it will all go well. Negativity in the workplace will not enamour you to colleagues and will get you noticed for the wrong reasons. What type of business would you have gone into if it wasn’t C&C/wholesale? I do feel that, more and more, we are having to understand the global marketplace when dealing with suppliers and especially commodity-based products. Therefore I would fancy being a trader, not in London but perhaps one based in the Cayman Islands!

Tom Gittins before the Bath half marathon in March – a oneoff, he says, to see if he could do it. And he did: in 2hrs 12mins.

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If you had a million pounds to invest in business, how would you spend the money? Open a cash & carry and stock it up. I would run it along the Costco business model and set it up where I live in the Cotswolds because the nearest C&C is over 30 miles away and there are lots of local tourism-dependent businesses in this area.

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Join our LinkedIn group Cash & Carry Management is pleased to announce the launch of our LinkedIn group. This has been geared towards delivering industry news, product information and event promotions. Sign up today and receive a weekly news bulletin at: www.linkedin.com/company/ cash-and-carry-managementincorporating-delivered-wholesaler

The UK’s no.1 premium crisp brand* Strong growth ahead of the category* Supported by ‘Lovingly Crafted’ spring advertising campaign For more information freephone 0800 616996 online www.tradewithkettlechips.co.uk To receive news, offers and updates join the Independent Retailer Community at www.tradewithkettlechips.co.uk/register *Source: Nielsen total market value sales MAT to 29th March 2014


tour de france grand départ

Riding high in Yorkshire C&C/wholesalers are set to cycle away with the profits from the Tour de France Grand Départ. Michael Catling reports. The largest county in England welcomes the largest annual Tea brand. The strategy we have is layered with Yorkshire Tea sports event worldwide in July, as the Tour de France Grand and above-the-line activities, ranging from TV advertising Départ 2014 visits Yorkshire for the first time in its 101-year promotions in store to brand events and sampling. history. “The out-of-home channel is also a big priority for us. We The Tour, which returns to England for the first time since are still in the embryonic stage but we supply Cedar Court 2007, is expected to generate Hotels within the Yorkshire more than £100 million for area so we will be looking to Yorkshire’s economy and form a partnership to create offers cash & carry/wholesalers some synergy around the the opportunity to cash in on Tour.” Stage one: Leeds to Harrogate (Saturday 5 July) the excitement and anticipaAs part of a £3 million Stage two: York to Sheffield (Sunday 6 July) tion surrounding 2012 and brand campaign, a Yorkshire Stage three: Cambridge to London (Monday 7 July) 2013 champions Sir Bradley Tea publicity caravan will take Wiggins and Chris Froome part in the event’s parade. respectively. More than 500,000 sample As the official ‘brew’ partpacks featuring the Tour de The first three stages cover 548km ner of the Grand Départ, France logo will be handed out 22 teams during the pre-race razzmatazz Taylors of Harrogate will look 198 athletes and on East Coast Rail trains – to consolidate its position as Broadcast across 188 countries already a Yorkshire Tea cusbrand leader in the tea market 1,200 hotel rooms are reserved each night for the tomer. and will display its Yorkshire teams, press and tour personnel “We will also be releasing Tea brand to an estimated 188 Six million spectators are predicted to line the limited-edition packs of countries broadcasting the streets during the opening three stages Taylors coffee called Allez event. Spectators travel 130km on average to see a stage, Allez which will branded up for Six million spectators are spending six hours at a time at the roadside the Grand Départ,” says also expected to line the 12,000 volunteers Sutcliffe. “It makes sense to streets throughout the first utilise the event and create three stages, a figure which UK more awareness around our core lifestyle range of coffee.” marketing director John Sutcliffe believes offers a unique Taylors of Harrogate, which also sponsors the England opportunity to diversify into new trade sectors. Cricket team, has recently established links with Welcome Sutcliffe comments: “We are looking to retain our loyal Break, East Coast Trains and Harry Ramsden. customer base but also recruit more people to the Yorkshire

Grand Départ: the route

• • •

Grand Départ: the numbers • • • • • • • •

Over 100,000 Yorkshire Tea sample packs will be distributed by volunteers pre-race and on East Coast Rail trains.

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tour de france grand départ With promotional plans already tied up with key cash & carry wholesalers in the Yorkshire region and north east, it is no surprise that the company’s UK market share continues to grow. Internationally, Yorkshire Tea has yet to replicate its home-grown success but with a global audience of 3.5 billion expected to tune in throughout the three weeks, Sutcliffe is hopeful the event can form part of a “massive brand awareness build”. “Increasing market share is a key aspiration for us. We have a good presence in America and Canada and although we moved into the Australian market last year, we are always looking at different regions to target. Hopefully the Tour de France can help to raise our profile,” he concludes. Cono Sur Vineyards & Winery will also look to capitalise on a wealth of opportunities after being named the sole wine sponsor for the opening three stages in the UK. The South American wine producer, famous for its Bicicleta range of wines, celebrated its 20-year anniversary last year and its latest partnership pays homage to its Chilean workforce who cycle to the vineyards each day. UK marketing director Clare Griffiths says: “Cono Sur is already performing well in the market, showing 33.8% yearon-year growth, and this sponsorship will help to further accelerate our growth plans and engage with wine consumers by increasing awareness.” A raft of promotional activities have already been organised for before, during and after the event, with sampling and consumer activity at each finishing line, presence in the Village du Tour and a publicity caravan travelling along the route during all three days. Like Yorkshire Tea, Cono Sur labels will be rebranded with the Tour de France and Grand Départ logos, while social media platforms will be utilised to run competitions offering consumers chances to win prizes such as VIP passes. Griffiths adds: “We are trying to get as much visibility in depots as we can and the response we have had since securing this sponsorship has been phenomenal. “The Tour de France offers a great opportunity to gain a strong nationwide presence and we want to make sure we invest in the brand, while working with our key customers as well. Ultimately, we know we have got a brand related to an event that will excite consumers and one which has huge potential in the UK market.” Terence McMaw, regional marketing controller for Bidvest 3663, which has two 3663’s Terence McMaw: ‘Customers will be looking distribution depots in for quick and easy food.’ Yorkshire, expects on-the-go

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consumption to account for a large proportion of sales and believes that offering a range of Gallic-inspired products will appeal to both local and international spectators. He says: “As the Tour de France is very much a spectator event, customers will be looking for quick and easy food options they can take with them to enjoy during the build-up and the race itself. “That is why we’ve centred our product offering on a range of grab ‘n’ go options such as croissants, French fries, pâtés and quiches, along with a range of authentic ingredients for customers wishing to provide Frenchinspired ‘eat in’ meals.” 3663 is advising its customers to re-engineer their ranges, and the wholesaler is promoting an ‘off the shelf’ selection of French favourites to help encourage creative food offerings. However, with road closures set to wreak havoc during the event, McMaw is quick to stress the importance of ordering in advance and creating contingency plans. “With an event as unique as the Tour de France, logistics will be affected due to road closures, so pre-planning will be essential. We will do all we can to minimise the impact on our customers in the area during this time,” he maintains. Windsor Foodservice delivers to catering customers across Sheffield, Leeds and Bradford – three places that are set to be affected by the route and so the Barnsleybased wholesaler is offering special delivery times to overcome traffic disruption. Windsor’s Steve Hewitt: ‘People are going to be Business development celebrating the occasion.’ manager Steve Hewitt reveals: “We deliver six days a week in the Tour de France routed area but we intend to utilise our fleet of 23 vehicles to make extra deliveries. We have a 24hour operation and we will endeavour to meet the requests of our customers and make deliveries at three, four or five o’clock in the morning to miss the traffic and road closures.” Hewitt believes the event offers “widespread potential” for suppliers and customers alike and he intends to capitalise on an “unexpected opportunity to maximise profits at a time where the market is quite static”. “We stock over 3,000 products, and whether it is through BBQs, impulse or sit-down meals, people are going to be celebrating the occasion so I’m hoping my sales figures will increase by at least 25%,” he adds. Cash & carries and delivered wholesalers are warned not to feature any of the Tour de France 2014 logos in their promotional activity without prior permission from the organisers.

Cash & Carry Management

• May 2014 • 17


confex trade show

Entering new territory With a plethora of new members and suppliers and purpose-built premises to boot, Confex continues to buck the trend with innovative and expansive ideas. Michael Catling reports. A record number of suppliers and group wholesalers were in attendance at the fifth edition of the Confex Trade Show at the Four Pillars Hotel in South Cerney, Gloucestershire, with Confex director James Loffet revealing that group turnover has surpassed £1.8 billion for the first time. The announcement, which comes less than eight months after Confex relocated to new offices in Moreton-in-Marsh, Glos, follows the signing of 11 new affiliates, with its newest member – Intamarque based in Tewkesbury – accounting for £35 million in turnover. Speaking at the annual awards ceremony and dinner, Loffet said: “We have a number of new suppliers to central distribution coming online over the next few months and are confident of at least 10% growth this year. We are in discussions with several potential new members with the aim of hitting £1.9 billion in turnover by the end of the year.” Loffet also reported that central distribution turnover grew to £18 million last year, a figure which looks set to rise even further after securing an agreement to supply Landmark Lifestyle and Caterers Kitchen own-label ranges. Loffet concluded his speech by focusing on the growth of Confex’s grocery sector, with the launch of a new Grocery Saver promotion in February responding to “demand from members”. This initiative, which is led by new digital asset manager Jess Douglas and builds on the success of the group’s Super

‘We now have 302 wholesale members across the UK and our sales increased by 8.2% in 2013’ Tom Gittins, Confex business development manager

James Loffet: ‘We are in discussions with several potential new members with the aim of hitting £1.9 billion in turnover by the end of the year.’

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Neil Carter, of Nestlé Professional (right), presents the Overall Green Wholesaler of the Year award to Ibrahim Kanli, representing A to Z, while environmental consultant Teresa Hall shows her approval.

Saver and Caterer Savers programmes, is aimed at capitalising on Confex’s “biggest growth area in the last 12 month”, according to business development manager Tom Gittins. Gittins later told Cash & Carry Management: “We now have 302 wholesale members across the UK and our sales increased by 8.2% in 2013, with commodity-based products like sugar, oil and cheese driving turnover. “But even though our new members are contributing to our growth figures, we are still posting genuine growth despite being in a recession. We are taking on new suppliers and have also hired a sales administrator in our central distribution warehouse, so we are continuing to expand and attract new members every year.” The event, which saw nearly 90 suppliers displaying more than 500 different promotions during the exhibition, also marked the third year of the Green Wholesaler awards, with A to Z Catering Supplies achieving double success in the overall and foodservice categories, sponsored by Nestlé Professional and Unilever Food Solutions respectively. Gittins said: “It’s amazing the amount of time and effort A to Z has invested in being sustainable and environmentally conscious. The major message we had from our guest judge Teresa Hall (environmental consultant) was that such investment actually saves a lot of money, so hopefully more members will follow suit.” Elsewhere, Lansdell Soft Drinks won the Retailer of the Year award (sponsored by The Fuelcard People), while Matthew Norman, representing Tate & Lyle, and Steve Stubbs, representing Britvic Soft Drinks, collected Supplier of the Year awards in the foodservice and retail categories respectively.

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supplier strategy

Cheapest brand for smokers STG is aiming to capitalise on the growth of little cigars in Europe with its latest launch, Break. A new sub-category of the UK cigar market – super value-formoney (SVFM) – has been created by Scandinavian Tobacco Group UK with the launch of Break little cigars. Available from this month, the new range offers consumers a cheaper alternative to value-for-money (VFM) cigarettes and gives retailers margins of 10% plus. Break little cigars have been developed to replicate the smoother taste and smoking experience of cigarettes. Comprising a small cigar with an inbuilt filter, they have an Ecuador wrapper made of natural tobacco leaf to ensure a milder taste than most machine-made cigars. There are three variants: Silver (smooth flavour), Blue (full flavour) and Menthol. Priced at £4.59 for 17, they offer the cheapest price per stick within both the cigar and cigarette categories. Outers contain 10 packs. The range is sold in a hard box format and colour coded to make each variant easy to find on shelf. Break little cigars are available in both price-marked packs and unmarked packs. Alan Graham, head of marketing at STG, comments: “During the last three years, we have seen little cigars become incredibly popular in Europe, so popular in fact that they are now the fastest growing tobacco sub-category in Europe with 3.45bn sold in 2013. “We expect this trend to continue in the years to come as price continues to be a focus for many smokers. As a super value-for-money range, which is cheaper than the cheapest cigars and cigarettes on the market, Break little cigars directly respond to this trend with a contemporary proposition that will hold great appeal for price-sensitive smokers.” STG reports that total cigar volume sales declined by 5.5% in the 52 weeks to 1 March 2014, while value sales dropped by 1.9% to £251.5m (SymphonyIRI). Traditional cigars are still in decline but miniatures are gaining share. Value-for-money products are showing growth in all tobacco categories, including cigars (up 5%) and miniatures (up 11%). STG UK’s brands in the VFM miniature segment showed a 33.2% increase in the last 52 weeks. SVFM brands are mainly aimed

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‘Little cigars are now the fastest growing tobacco sub-category in Europe with 3.45bn sold in 2013’ Alan Graham, head of marketing Scandinavian Tobacco Group UK at smokers who seek the lowest out-of-pocket price to fulfil their smoking needs. According to STG, consumers who smoke products in this category are willing to sacrifice taste preferences over price. STG is working in partnership with cash & carries and delivered wholesalers to support the launch of Break. “Depots will be provided with PoS materials to give to their customers in order to inform them of the launch and benefits of the new range, while also educating them on the huge opportunity presented by the new super value-for-money category. We will also be attending a number of trade depot days and exhibitions,” says Graham. The Break brand was developed in 2012 and is available in Denmark, Spain, Portugal, Italy, the Netherlands and Greece. Commenting on the opportunity for the UK trade, Graham says: “By stocking Break little cigars, retailers will be able to cover Europe’s biggest growing tobacco category, little cigars, and will encourage repeat visits from customers by meeting this increasing demand for cheaper smoking alternatives. “With the next 12 months being a crucial time for the tobacco category, retailers should stock up on the new range now to attract customers to this new sub-category ahead of the display ban next year.” He concludes: “We have high hopes for Break little cigars as the first SVFM brand launched into the UK tobacco category and we expect it to show strong growth in its first year.” Tel: Scandinavian Tobacco Group UK 020-8731 3400.

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• May 2014 • 19


cereal bars

Snacking options for busy lifestyles Consumers are seeking health and convenience at an affordable price point.

Kellogg’s has launched its biggest-ever cost promotion on its core cereal snacks range, which sees prices cut by 30% until July. This follows a major overhaul of Kellogg’s snacks portfolio, which has been simplified down to eight bars to give retailers greater direction regarding ‘must-stock’ products. The pricing of individual price-marked packs has been reduced by 16p to 39p. The brands included in the promotion are Rice Krispies Squares Totally Chocolatey, Biscuit Moments Strawberry, Nutri-Grain Soft and Fruity Strawberry, Rice Krispies Squares Chewy Marshmallow, Nutri-Grain Breakfast Slices Raisin, Special K Chewy Delight Milk Chocolate, Coco Pops bars and Crunchy Nut Chocolate Peanut Crisp Bar. Kellogg’s has developed a management programme called RAMP aimed at convenience retailers to help merchandise cereal snacks. RAMP stands for Range, Allocation, Merchandising and PoS. RAMP guides retailers on the best cereal snacks lines to stock, the space that should be allocated, and the most effective places to display these highly impulsive purchases.

Exclusive format Belvita Breakfast from Mondelez International is the number one breakfast biscuit and worth £56m, with the highest repeat rate of any breakfast biscuit at 58% (Kantar). Belvita has also taken the top spot in healthy biscuits and number four in total biscuits. Last year the brand launched an exclusive format for the convenience channel with a 150g pack aimed at top-up shoppers. This pack, available in Milk & Cereals and Honey & Nut variants, contain three 50g packs of breakfast biscuits. Adding the 150g top-up format to the Belvita Breakfast portfolio allows convenience retailers to benefit from having wider consumer appeal and capture the attention of shoppers on a top-up mission alongside the instant consumption mission with the existing 50g retail packs. Belvita Breakfast is sponsoring all nine Capital Breakfast shows across the network until June, enabling the brand to reach Capital’s audience of 7.7 million listeners each week (RAJAR/Ipsos-MORI/RSMB).

According to Weetabix Food Company, convenience is a driver of change in the breakfast market. Last year the company launched Weetabix On The Go breakfast biscuits in three flavours: Milk & Cereal, Apple with a hint of Cinnamon, and Fruit & Fibre. The biscuits are made from whole grains and contain the goodness of two Weetabix with milk. With six vitamins and minerals, one serving provides 32% of the RDA of vitamins and iron. The biscuits are also high in fibre and a good source of calcium. Earlier this year, Weetabix introduced Alpen Trail Bars. At 48g per serving, the product is bigger than the average cereal bar and was developed to bring new customers to the category, helping in turn to drive incremental growth. Alpen Trail Bars are available in Fruits & Nuts and Chunky Nuts variants, price-marked at 50p. They also come in packs of three, as does a Big Berries variant. The bars contain real fruit and nut pieces and are a good source of fibre.

Fast tracking Daniel Newell, brand manager, baked, at Mars Chocolate, says: “One of the key strengths of cash & carry is that it allows us to get our best-loved products out to important customers and consumers that we might otherwise be unable to reach. “I believe that without this channel’s help we wouldn't have two of our propositions in the top 15 fastest-selling healthy bars, and three in the top 30.” All Tracker formats and packs are available to the wholesale sector, including Tracker multipack (six bars in a pack) chocolate chip, white chocolate and peanut. Tracker chocolate chip and peanut singles are available in boxes containing nine units.

For further information: Kellogg’s (0800) 626066 Mars Chocolate (01753) 550055 Mondelez International (08702) 400861 Weetabix Food Company (01536) 722181

All data: Nielsen unless otherwise stated.

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Big sales

come at a NEW price

Snacks 55p now 39p* MUST STOCK Top 3

Top 6

For range and merchandising information, call the Kareline on 0800 783 6676. *Recommended retail price

Top 9 Š2014 Kellogg Company

@KelloggsTradeUK


beers & lagers

Forecasting change Will the warmer weather and general shift in drinking trends set the tone for summer? “The future health of the category lies in a strong core range with a rigorous promotional plan and an offer that encourages premiumisation and the development of emerging segments such as moderation,” says Craig Clarkson, Heineken’s category & trade marketing director, off-trade. The top 10 brands account for over half of all beer & lager value sales. Heineken’s Foster’s is the number one mainstream lager, and Kronenbourg 1664 is the number two premium lager brand in the UK. Beer is worth over £3.5bn and innovation accounts for 37% of category growth. According to Heineken, the off-trade has been shaped by various macro trends, with over half of consumers switching to cheaper grocery brands (Nielsen). Shoppers are also migrating between different types of retail outlets to save money (Kantar). And yet consumer confidence has risen to a three-year high (Nielsen), giving rise to the trend for premiumisation. This has also helped emerging segments. The entry of mainstream brand names to the lower abv segment will drive sales in a moderation category that is already worth £47m. The spirit beers segment is valued at over £30m. New variant Desperados Verde is a premium lager flavoured with tequila and a twist of mint and lime. The UK’s No.1 lower abv lager is 2% abv Foster’s Radler cut with Cloudy Lemon. Heineken has introduced two new Foster’s variants, 2% abv Foster’s Radler with Lime & Ginger and a 0% abv version of the original Foster’s Radler. Heineken recently Desperados is worth over £22.3m. launched Affligem, a premium specialty Abbey beer, in three variants: Affligem Blonde on draught and in a bottle (6.8% abv), Affligem Double bottle (6.8% abv), and Affligem Triple bottle (9% abv). All data: IRI unless otherwise stated.

Game-changing campaign Brookfield Drinks has launched a national marketing campaign for Kestrel Premium Lager that champions renaming golf’s most coveted prize, the famous hole-in-one, to scoring a ‘Kestrel’.

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• Cash & Carry Management • May 2014

Kestrel is now available in a 330ml bottle.

Golf uses a number of bird terms including eagle and birdie. In order to raise awareness of the dwindling population of the iconic bird of prey, Kestrel Premium Lager is petitioning the Royal & Ancient (golf’s governing body), to have the term scoring a ‘Kestrel’ used to refer to a hole-in-one. Rolling out potentially to 250 golf clubs initially throughout Scotland, the campaign is supported by PR and ‘in-club’ marketing. Golfers are invited to join the Kestrel Club upon scoring a ‘Kestrel’, and will be rewarded with a signed certificate, an exclusive Kestrel ball marker, and the chance to win up to £100,000. Nigel McNally, managing director, says: “Our hole-in-one campaign will enable the brand to engage with one of our key demographics, while presenting us with further on-trade listing opportunities. The launch of our new 330ml Kestrel bottle at 5% abv is at a time when other brands are reducing the size of their bottles and lowering their abvs.”

Festival packaging From Tennent Caledonian Breweries, Tennent’s Lager is celebrating consumers’ best moments from the T in the Park festival with a new limited-edition pack for Scottish customers. Striking T in the Park images showcasing the things that consumers love most about the festival are emblazoned across each special pack, which also features a code to enter a prize draw for a pair of tickets to this year’s event. Two winners are selected at random every week until the end of June. Inside each pack, drinkers will also find a special new T in the Park can, designed using crowd-sourced quotes that were generated after Tennent’s asked fans to share their memories and thoughts on the festival on Facebook. The campaign will make its mark in-store with festivalthemed fixtures and PoS material, backed by PR and digital marketing. Marketing director Paul Condron says: “As T in the Park looks forward to its 21st year, we know that it’s the festival’s fans that make it the huge success it is today. As founding partner, Tennent’s wanted to celebrate by giving fans the chance to create this year’s T in the Park packs, telling

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Special T in the Park packaging for Tennent’s Lager.

us the moments they love the most about the festival. The resulting packs look fantastic and we hope that everyone will enjoy sharing a pint and a few festival memories with us this summer.”

Sporting promotion To support its sponsorships of the Barclays Premier League and England team, Carlsberg has created the Carlsberg Fan Squad headed up by a trio of celebrity football fans: comedian Paddy McGuinness, former football legend Ian Wright, and Sky Sports Soccer Saturday’s Jeff Stelling. The campaign appears on-pack and is supported by print, broadcast, PoS and digital activity, with prizes available across the footballing calendar. A Fan Squad on-pack promotion, featuring Wayne Rooney, Ricky Lambert, Steven Gerrard and Michael Carrick, offers consumers the chance to win a place at the ‘ultimate England experience’ at Wembley Stadium in October by entering a unique code at www.carlsbergfansquad.co.uk. Over 100 TVs and Carlsberg branded items, including flags, cooler bags and T-shirts, are also available. A Carlsberg Fan Squad Twitter promotion @CarlsbergUK offers football fans the chance to predict the scores of Barclays Premier League fixtures in return for match tickets. Carlsberg launched a retailer incentive for impulse customers whereby new and existing customers stocking Carlsberg and Carlsberg Export can enter a promotion to win a trip to Rio by photographing their retail display and uploading their images to a dedicated impulse retailer incentive website at www.carlsberg.co.uk/retailerincentive. Later in the year customers stocking other Carlsberg products, such as Tuborg, San Miguel, Mahou, Staropramen and Somersby Cider, will have the opportunity to win a new van or city break. The incentive aims to reward and share best practice across impulse retailers. Carlsberg Blackcurrant has been launched in the off-trade. The new blend of lager and natural blackcurrants has an abv of 2.8% and is available in a variety of pack sizes, including 4 x 275ml, 12 x 275ml, and, as a category-first for beer mixes, a 660ml sharing bottle. The brand is supported by a £3m above-the-line campaign including print, digital and in-store sampling, as well as targeted opportunities around the summer and music.

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• Cash & Carry Management • May 2014

As the official beer and cider partner of The Open Championship and the official beer supplier of The Championships, Wimbledon, Stella Artois, produced by AB InBev, has unveiled an on-pack initiative to give consumers a chance to win tickets to attend two of this summer’s great sporting events. Two different promotions are available, one for The Open Championship and one for Wimbledon. The Wimbledon packs offer consumers the opportunity to win a VIP experience at a centre court match, including fivestar hotel accommodation in London. There are also 50,000 special-edition Wimbledon Stella Artois chalices to be won. The Open Championship on-pack promotion offers similar prizes. The activity features across a range of packs available in the off-trade. Stella Artois’ status as the official beer and cider of The Open Championship at Royal Liverpool was announced earlier this year and the launch of the on-pack promotion marks the first opportunity to bring both this, and the Wimbledon partnership, to life for consumers. These events bolster Stella Artois’ roster of partnerships, which also include the Cannes Film Festival and the Kentucky Derby. The brand’s sponsorships are supported by a fully integrated campaign encompassing media, digital marketing, in-store activations and experiential activity.

One of two on-pack promotions from Stella Artois offering consumers the chance to win tickets to sporting events.

Phil Pick, marketing manager, says: “As with prestigious events which take care in every detail and celebrate excellence, we’re delighted to begin our partnership with both The Open Championship and Wimbledon with the launch of our on-pack promotion.”

For further information: AB InBev (01582) 391166 Brookfield Drinks (01234) 783034 Carlsberg (01604) 668866 Heineken 0131-528 1000 Tennent Caledonian Breweries 0141-552 6552

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soft drinks

Summer of sport set to energise soft drink sales The nation is bracing itself for its annual dose of sports fever and with forecasters predicting the hottest summer in over a century, the soft drinks category continues to shine brightest for the wholesale sector. With the sports and energy categories growing at 3.7% and 7.3% year-on-year respectively across the soft drinks market (Nielsen), category director Georgina Thomas at Lucozade Ribena Suntory believes the synergy between sports and energy drinks and major sporting events this summer provides significant growth potential for the sector. Thomas points to the high category demand levels during the 2010 World Cup as a strong source of encouragement for retailers and believes that wholesalers should recognise the 5.7% year-on-year growth of the Ribena brand ahead of the impulse category to help retailers grow their business. Thomas says: “Retailers need to take full advantage of these events in order to maximise incremental sales through mechanisms of cross-merchandising and creating stand-alone displays focusing on the key promotions, which will encourage shoppers to cross purchase and impulse buy with other adjacent categories.” Ribena recently added a new

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• Cash & Carry Management • May 2014

Orange & Guava variant to its portfolio, in a bid to capitalise on the 10% year-on-year growth of the exotic flavour sector. The launch is supported by a £1m media investment as part of a wider £2m campaign – Ribena’s biggest spend on the RTD category in the last five years. Available in 500ml bottles, the Orange & Guava style is also sold as a 99p pricemarked pack. Lucozade is also helping convenience retailers to capitalise on summer sales with the launch of exclusive 79p PMPs. Figures from IGD 2013 show that 57% of shoppers look more closely at the prices of products before deciding what to buy. The 79p price flash is present across key SKUs – including the recently launched Brazilian themed packs: Lucozade Sport Brazilian Guava Flavour and Lucozade Energy ‘The Brazilian’ Mango & Mandarin. Thomas adds: “We have seen more and more retailers experience the benefits of stocking PMPs, with 63% claiming they would be more likely to stock a new product if

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soft drinks it is released in a PMP as well as a non-price-marked pack format (him!).” Thomas recommends that wholesalers take time educating their retail customers on the role that NPD, promotions and price-marked packs can play within store, while also emphasising the importance of brand beaconing and bestsellers-branded PoS. In other developments, Lucozade Ribena Suntory is set to drive category growth and added value with a new on-pack offer on the Orange & Raspberry single and four-packs. As part of the brand’s £10m ‘Fuel to Rule’ campaign, consumers have the chance every day until 15 June to win a pair of limited-edition Adidas football boots designed by England captain Steven Gerrard. All data unless stated: Nielsen

Sporting new products Coca-Cola Enterprises (CCE) has unveiled a sport-themed promotional campaign, as it looks to capitalise on being named the official partner of the 2014 FIFA World Cup in Brazil. CCE’s value sales grew by 13.3% during the 2010 World Cup, with soft drinks experiencing a 6.2% uplift – more than any other immediate consumption category. In an attempt to achieve a similar spike in sales, Glaceau vitaminwater has launched an onpack promotion that gives consumers a chance to win a trip for two people to watch a World Cup quarter-final match. The ‘Shoot to Win’ campaign, which features on promotional bottles until 17 May, challenges consumers to capture an ‘everyday colourful moment’ on their camera. Operational marketing director Caroline Cater says: “Glacéau vitaminwater had a hugely successful Olympic year in 2012, when it grew by 34%, and we aim to build on this growth in 2014 by driving trial of the brand and encouraging repeat purchase.” Similarly, Fanta, which grew by 11.8% last year, has unveiled a new promotion. The ‘Play #Fanta100 – 100 ways to play’ campaign, which is set for release in mid-May, targets teenagers by offering them ‘once in a lifetime’ prizes. It will feature on two-litre, 6 x 330ml and 8 x 330ml packs, as well as on the 500ml and 330ml plain packs and 59p PMPs across the Fanta Orange, Orange Zero and Fruit Twist range. A multi-media marketing operation will also run throughout the summer

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Market data Soft drinks became the first £10bn category, after value sales grew by 2% in 2013, according to The Britvic Soft Drinks Review. The grocery channel remained the largest and accounted for more than three-quarters of all soft drinks value, with sales totalling over £5.6bn. However, the convenience sector experienced the strongest growth, with on-the-go consumption a key factor in value and volume sales both rising by 5%. Britvic’s general manager Paul Graham reports: “Shaped by multiple consumer trends, such as value, premiumisation, health and convenience, we have seen a wealth of innovation hit the market, all of which has helped to keep the sector relevant and exciting amongst a diverse audience.” Value for money remained a core purchase driver but consumers continued to favour brand names over private label options, while a growing trend for premiumisation saw many new premium brands emerging as star performers within the category’s sub-segments. Cola remained the category’s star performer with sales totalling more than £1.6bn Cold hot drinks accounted for the highest growth, with value sales rising by 43% Glucose and energy drinks grew ahead of the category with a 7% increase in value sales.

• • •

and will feature advertisements airing on teen-focused TV channels such as E4 and Comedy Central, alongside online, social media and outdoor advertising. The latest move by CCE follows the relaunch of Coke Zero, with the ‘Just Add Zero’ marketing campaign responding to a significant increase in shoppers looking to maintain a healthy lifestyle. Figures show that 40% of all carbonated soft drinks sales come from light or diet variants, with sales worth over £1bn to retailers last year. And with the figure growing by 2.5%, CCE has released a new mid-calorie special edition Raspberry and Passionfruit Fanta variant, together with an on-pack Diet Coke promotion offering a free copy of Look or Now magazine, to coincide with the growing popularity of healthy and tropical flavours. “CCE’s portfolio of energy drink brands has grown by 2.9% in independents and symbols in the last year, with Monster Energy now worth £30.1m and Relentless worth £18.6m,” adds Cater. “As the energy drinks sector continues to grow, it is vital that we drive innovation and bring new products that support our customers by directly targeting shoppers’ needs.”

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soft drinks As part of its focus on innovation, “Mango flavour drinks are now outselling a Relentless Cherry variant has been apple flavour drinks by 18%, while exotic released alongside a relaunch of the sugarjuice flavours have grown the category by free alternative with bold packaging and a 17% in the last two years (Nielsen new name, Relentless Origin Ultra. Scantrack).” CCE has also made a significant investAvailable in one-litre take-home packs ment in its Oasis juice drink range with the and 330ml ‘drink now’ impulse packs in launch of a Pineapple Rush variant to tap both plain and price-marked presentations, into the popularity of tropical flavours. the Rubicon Coconut Water launch is being The new flavour, which is available in supported by a £2m brand investment plain and £1 price-marked packs, will featuring an outdoor media campaign and feature in a TV commercial that aims to consumer sampling. engage teenagers by taking a light-hearted AG Barr has also released Barr Xtra Cola look at overnight celebrity culture. as it bids to capitalise on the fast-growing As part of the brand revamp, the low-calorie cola market, which accounts company has revealed that Oasis Mighty for 51% of the UK cola market worth Drops will be released in mid-May to £1.6bn (Nielsen Scantrack). AG Barr has introduced Rubicon selected retailers, with a wider release in Coconut Water to its portfolio. 2015. The 56ml packs of concentrated squash will be available in Mixed Berry, Mango and Raspberry Lemonade flavours (rsp £2.49). Razin Ali, Sunmagic brand manager, says that the cash & Meanwhile, Capri-Sun has introduced a new 89p PMP for carry sector must ensure it has a broad juice and smoothie independent retailers, with revamped packaging of its 330ml range to satisfy the products’ universal popularity. range. Capri-Sun 330ml, available in Orange, Tropical and He advises delivered wholesalers to stock “a range of Apple & Blackcurrant flavours, features a redesign displaying price-marked and non-priced-marked bottles, priced comthe use of spring water to appeal to a young adult demopetitively”, while offering a balanced choice of bestsellers, graphic. classic combinations and exotic flavours. The Orange variant is available with an 89p PMP, while a “Given that 83% of adults in the UK drink fruit juice, juice plain pack at an rsp of 99p enables convenience retailers to drinks and smoothies, these should feature heavily in any provide value to their shoppers to encourage trial. The cash & carry’s soft drinks range, responding to the drinks’ investment is supported by the brand’s first TV advertiseestablished role in consumers’ diets,” explains Ali. ments in five years, as well as in-store activity. “A sensible range would include bestsellers such as apple and orange juice, as well as cranberry juice. Delivered wholeAll data: Nielsen. salers should also ensure they have a range of price-marked and non-price-marked bottles, priced competitively. “At Sunmagic, we are able to offer delivered wholesalers a strong range of price-marked packs includAG Barr, which has doubled in size over the last five years, ing an extensive range of 500ml impulse has invested a record £12 million in sponsoring the 2014 bottles of juice and juice drinks, priced at Commonwealth Games (Cash & Carry Management: 79p and 99p.” February 2014) and is now set to broaden the appeal of its Earlier this year, Sunmagic added a Barr range and KA. lightly sparkling juice drink featuring a Following IRN-BRU’s biggest ever on-pack promotion, sports cap to its price-marked range – ‘Cheer We Go’, which offered consumers the chance to win the first of its kind in the UK. tickets to the Commonwealth Games, AG Barr has launched The new product, which is supplied a new range of Barr packs featuring the Glasgow 2014 logo in 6 x 500ml PET bottle packs, is to celebrate its partnership with the event. available in two variants – Apple & KA Karnival Krush has also been reintroduced as a Cranberry and Peach & Melon. The rsp permanent product after selling 1.2m packs over 10 weeks is 79p per bottle. last summer. The new citrus flavour from the UK’s No.1 Sunmagic has also been named Caribbean brand (Nielsen) is available in price-marked 330ml soft drink category partner for How cans (49p), 500ml PETs (89p) and two-litre bottles (£1.69). To Train Your Dragon 2, with specialNational impulse controller Guy Gissing says: “KA conedition 200ml and one-litre cartons sumers react really positively to product and flavour innovaand 300ml and 500ml bottles set for tion and 45% of KA sales over the last two years have come release in late May. from NPD, new flavours and special packs.” Sunmagic’s latest announcements The KA addition coincides with the launch of Rubicon follow a record sales increase of 15% Coconut Water after “outperforming the brand leader in conin 2013 and come after securing sumer taste tests”, reports head of marketing Adrian Troy. several new listings, including with “Exotic flavours have seen a rapid growth in recent years Hancocks and B&M Retail. as consumers seek new, authentic flavours,” he adds.

Satisfying popularity

Capitalising on consumer trends

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• Cash & Carry Management • May 2014

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soft drinks Just Juice packs offers consumers the chance to win a tennis lesson with John McEnroe. A special edition 500ml Just Juice Orange, Mango and Lime ‘Brazil blend’ (£1 PMP) has also been launched to coincide with the World Cup and comes in a 6 x 500ml PET format, while Um Bongo has released a limited-edition football themed 1.75-litre pack. Gerber is also undertaking a nationwide sampling campaign for its brands until November, whereby over 200,000 samples of Del Monte, Um Bongo, Fruit Burst, Sunpride and Welch’s will be distributed, together with discount vouchers, at 13 major county and lifestyle events attended by 1.7m people.

Category driver

Strength in numbers

Cash & carry depots and delivered wholesalers need to allocate their resources between promoting ongoing value offers and satisfying recent consumer trends, claims Refresco Gerber. Product innovation, freshness and low sugar content are driving consumer demand and commercial director James Logan suggests that “wholesalers should signpost these trends, creating different product areas with information on each, especially in the chiller cabinets where there is minimal space”. The latest figures show that chilled single-serve juice is up 18.2% by volume and 18% by value year on year (Nielsen). Logan continues: “The arrival of new flavours such as cherry and mango and products like coconut water and cold pressed juices are also becoming mainstream and will increase the premium end of the soft drinks category, growing it in value.” The recent addition of Sunny D’s Sour Cherry Twist flavour, building upon the success of Orange & Passion Fruit last year, corresponds with rising consumer demand for new variants. Logan also points out that demand for low sugar, low calorie and high fruit juice drinks such as Del Monte Naturally Light, will “increase in the light of the recent WHO announcement and ongoing media attention”. The WHO advised halving daily sugar intake before reiterating that sugars naturally present in fruit juices are discounted from this total. Del Monte Naturally Light has added a 50% less sugar and 50% less calorie Orange flavour to its range. This coincides with Libby’s new Orange C one-litre chilled carton format (rsp £1) featuring 25% juice, no added sugar and 33 calories per 250ml serving. Meanwhile, in keeping with the sport theme this summer, an on-pack promotion on one-litre and 500ml

Britvic and PepsiCo have launched a marketing campaign for Pepsi MAX, communicating ‘Maximum Taste, No Sugar’. The initiative, targeted at 18-24 year olds, aims to disprove the perception that no-sugar cola compromises on taste. As part of Pepsi UK’s ‘Unbelievable’ campaign, the message is being communicated via a multi-million pound above-the-line plan alongside a new TV advert featuring footballers Robin van Persie and Lionel Messi. Several players also feature on limited-edition Pepsi MAX packs and the on-the-go 330ml and 600ml formats, while consumers can unlock Pepsi video content through Blippar via promotional Pepsi packs as well as playing a reality football game. Britvic and PepsiCo have also teamed up to launch Mountain Dew Green Screen – a new marketing platform which sees Mountain Dew embark on a partnership with X-Men: Days of Future Past. The promotion, which runs until 8 June, features Mountain Dew 500ml PET bottles swathed in X-Men capes, encouraging consumers to post a ‘selfie’ with their bottle on social media channels for the chance to win on-thespot prizes. Point-of-sale material, including dump bins, shelf-barkers, posters and branded in-chiller solutions, is available. The brand is also targeting consumers via partnerships with Kerrang! radio and Empire magazine and a new Mountain Dew X-Men advert that is showing at cinemas nationwide. A new label design for adult soft drink Juicy Drench has also been revealed as part of Britvic’s new brand positioning targeting adults aged 30 years and over. GB marketing director Jonathan Gatward comments: “Recent trials have shown that the new label has advanced purchase rate of Juicy Drench by 40% amongst the brand’s target consumers.” Juicy Drench is available in 440ml PET bottles with an rsp of £1.09, as well as packs of 12 and 24. PMPs at 99p also feature the new design.

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• Cash & Carry Management • May 2014

All data: Nielsen and CGA. All growth figures are based on The Britvic Soft Drinks Review 2013.

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soft drinks Boost for independent sector Boost Drinks has launched three new variants exclusively for the independent sector – Sugar Free Pink Lemonade, Citrus Zing and Exotic Fruits variants – as it aims to capitalise on its 32% growth in sugar-free sales. Original and Sugar Free Boost are available in 79p 500ml resealable PET bottles and 49p 250ml cans, and there is also a limited-edition one-litre PET bottle, price-marked at £1. Sales director Al Gunn comments: “We have invested heavily in research that has shown there are some huge opportunities to grow the market, and our share, around value, taste and flavours.

‘The refreshment energy category is now worth £334m in the UK, with growth of 8.3% by value and 7.2% by volume’ Al Gunn, sales director, Boost Drinks “As a champion of the independent sector, we now have a fantastic range across all three sectors of sports and energy drinks – stimulation energy, glucose and sports/isotonic – with very attractive price points for the consumer and great margins for the trade.” Figures show that the refreshment energy category is now worth £334m in the UK, with growth of 8.3% by value and 7.2% by volume. But with the market leader holding around 96% market share, Gunn believes there is potential for a branded competitor to offer consumers a choice in terms of price and range options.

Price marking has been successful for Boost.

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• Cash & Carry Management • May 2014

BUYER’S VIEW FROM HQ Stuart Lane, head buyer at Lansdell Soft Drinks, of Whitstable, Kent, says: “Quality soft drinks are driving consumer demand, with people now moving away from the cheaper products and favouring more expensive and recognised brands. Coke is continuing to lead the way and it often comes to the forefront in times of hardship because people know exactly what they are getting. “We are noticing, however, a growing trend towards a particular brand called San Pellegrino. It has flavours like Limonata, and consumers tend to drink these products on holiday and fancy trying them again when they come back. “There seems to be an increased focus on lowcalorie options at the moment and exotic flavours like guava also seem very popular due to their association with the World Cup in Brazil. Big names like Ribena and Lucozade have released their own guava range, while Coke has decided to bring out Oasis pineapple and mango flavours. “The problem is that people often revert back to original or classic combinations after two or three drinks so longevity is an issue as they only seem to hang around for a short period of time. “We try to promote a large range of products all the time and we have a monthly promotional brochure which is proving very popular. We pride ourselves on responding quickly to customer requests. Using our brochure, telesales and website, we can publicise a new type of food or drink almost instantly. “We are also using social media platforms and QR codes which customers can scan on the back of our lorries to visit our website direct. We are always trying to offer various ways to help increase brand awareness and maximise sales.”

Gunn adds: “Given the market leader’s dominance, we believe there is a need for a meaningful challenger brand, providing it has a smart price point and, of course, taste and margin credentials.” Boost has an improved high-margin branded glucose range, with new recipe Boost Active Glucose available in Original and Orange varieties and presented in redesigned 500ml and one-litre PET bottles. The rsps are 59p and 89p respectively. The product launches are being supported by sampling, merchandising, advertising, PR and social media campaigns as Boost looks to ‘challenge for a larger share of the £410 million energy drinks category outside multiples’ (IRI, impulse only).

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soft drinks Capping up Nestlé Pure Life, the biggest global water brand (Zenith International 2013), has introduced its 50cl and one-litre sports cap range into convenience channels. Since launching into the grocery channels six years ago, Nestlé Pure Life’s value and volume have risen considerably, and the latest step is targeted towards bringing new shoppers to the category and satisfying a gap in the market for quality and good value. Senior brand manager Alberto Kechler says: “We’ve geared our Nestlé Pure Life formats in convenience and impulse channels towards on-the-go and impulse purchases, reflecting the nature in which consumers shop for bottled water in these outlets.” Elsewhere, Vimto has extended its no-added-sugar still range with a limited-edition flavour. The new Strawberry still variant, supplied in a ready-to-drink 500ml sportscap format, corresponds with the growing demand for healthier options and on-the-go consumption. A new four-pack can format has also been released and is available at Co-op, Spar James Hall and Spar Appleby Westwood, with June releases at Musgrave, Nisaway and Martin McColl’s. Brand manager Clare Brown says: “We believe that by introducing a competitively priced four-pack to convenience shoppers this will help to meet their needs by giving them a brand in demand, in a format they can easily carry home and at a price they can afford, whilst helping retailers maximise their sales opportunities in outlets where fixture space is at a premium.” The no-added-sugar still Strawberry edition is available in a £1 PMP, while Vimto 330ml four-pack cans have a £1.99 standard price and are £1.50 on promotion.

New brand hits UK shelves Innovation Drinks has introduced Coco5 – one of the fastest growing coconut water brands in America – into the UK market. Coco5, which is aimed at sports enthusiasts and endorsed by British sportsmen Sir Ian McGeechan, Kenny Logan, Gary Gold and Neil Best, is available in six flavours: Natural Coconut, Tropical Passion, Lemon, Cherry Crush, Citrus Splash and Pineapple (rsp £2.29). The drink contains all five essential electrolytes, just 80 calories per 473ml bottle and is already stocked by a number of regional and national convenience retailers. Steve Barton, chief executive of Innovation Drinks, comments: “Coconut water is currently the fastest growing sector in the drinks category, forecast to hit £83m in the UK this year, up from £7m in 2013. “A brand’s aesthetic appeal on shelf has been an important factor in the sports drink category and we hope the

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• Cash & Carry Management • May 2014

vibrant colours and packaging of Coco5 will be appealing amidst an exceptionally well marketed competitive set.” Coco5 has launched a nationwide sampling programme at 150 rugby clubs, gyms and health and fitness outlets and is supported by PR and a social media campaign.

Six is the magic number Vita Coco has extended its core 330ml Coconut Water range by introducing a sixth flavour, Vita Coco Lemonade. The new variant, which is available in three sizes – 330ml, 500ml and one-litre – with rsps of £1.69, £2.69 and £3.69 respectively, contains less sugar and fewer calories than other leading UK chilled still lemonades. Vita Coco and coconut water were recently reported by IRI as the fastest growing brand and drinks category in UK non-alcoholic beverages, with Vita Coco accounting for 89% of the market share. Sun Mark has remodelled its Pure Heaven Fruit Juices and Juice Drinks range to include 200ml lunchbox-friendly packs. Pure Heaven, which contains no artificial colours or preservatives, is available in 100% Pure Apple and Orange variants, as well as Mango, Pineapple & Coconut and Tropical. The launch of the 200ml format builds on the success of the one-litre packs and is part of a new brand positioning to target young kids.

For further information: AG Barr (01204) 664295 Boost Drinks (0113) 240 3666 Britvic (0845) 758 1781 Coca-Cola Enterprises (08457) 227222 Innovation Drinks (07713) 444006 Lucozade Ribena Suntory 020-3727 2420 Nestlé (0800) 000 030 Refresco Gerber (01278) 441600 PepsiCo (0118) 930 6666 Sunmagic 020-7274 6090 Sun Mark 020-8575 3700 Vimto (01925) 220122 Vita Coco 020-7183 7312

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employment law

Limited grounds for refusal Human resources expert Cate Ritchie (right) warns employers that, from 30 June, all employees may request flexible working. Government proposals to extend the right to request flexible working to all employees will be implemented on 30 June. Any employee with 26 weeks’ continuous service will be able to ask their employer for flexible working, for any reason. Working flexibly can involve changes to the employee’s daily or weekly hours, place of work, etc, and can include arrangements such as flexitime, homeworking, term-time only working, structured time off in lieu, compressed hours, part-time hours and job share. Only employees can apply under the regulations, so agency workers and office holders do not have the statutory right to request flexible working. There are still procedural rules concerning what an employee should include in their application in order to bring themselves within the legislation. There will not be any need for the employee to state that the flexible working is required because they care for a dependant (child or adult). The current statutory process requiring employers to meet an employee within 28 days, give a decision within 14 days of the meeting and set similar deadlines for appeal meetings will also be scrapped from 30 June. There will instead be a duty on employers to consider requests “in a reasonable manner”. What this is likely to mean in practice is that the application should be dealt with as soon as possible, and handled objectively, fairly and in a non-discriminatory way. There will generally be a need for a meeting or telephone conversation to discuss the request. The employer should consider the request carefully by weighing up the benefits to the employee and the business, as well as any cost and/or adverse business impact of the changes. Having done so, it is good practice for the employer to put its decision, which could be an agreed compromise, in writing. If the employer refuses the request, it should state its clear business reasons for doing so. Alternatively, the employer may suggest a trial period under the new arrangement. The employer should generally give its decision within three months of the request being made. There will still not be any right to have the request granted but the grounds on which an employer can legitimately refuse are limited. An employee will only be able to make one request per year, and any request to which his/her employer agrees has the effect of changing the contract of employment indefinitely (unless the employer and employee agree otherwise). The aim of the Act is to help people achieve a better balance between their work and home life but employers can

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benefit too! Flexible working can enhance motivation and loyalty and lower staff turnover, so requests should not automatically be viewed as difficult or unmanageable. Remember: employees may be able to bring a legal claim if they think they are being treated badly because they asked for flexible working arrangements and were refused for what is not a legitimate business reason. Businesses should update their employee handbooks in order that they contain a clear written policy for handling flexible working requests. Having such a policy should ensure consistency and clarify matters like who requests should be directed to, each step in the process, timescales and who can accompany the employee to meetings. If you wish to talk to Cate about any HR issue, including the introduction of this legislation on flexible working, contact her at cate@121hrsolutions.co.uk or phone (0792) 121 3890.

Minimum wage crackdown Employers who do not pay their workers the national minimum wage (NMW) face tough new sanctions, with the maximum penalty rising from £5,000 to £20,000. Moreover, they will not be able to avoid this penalty by saying that their failure to pay the NMW was a mistake or an oversight. A recent report suggested that over 300,000 people in the UK earn less than the NMW but only nine employers have ever been prosecuted for underpaying their workers. The Department for Business, Innovation and Skills (BIS) has published a policy setting out how HM Revenue & Customs (HMRC) will deal with employers who break minimum wage law. HMRC will issue a notice of underpayment setting out both the penalty and the arrears of wages payable to employees. If the employer does not comply, HMRC can take further action under the National Minimum Wage Act 1998 to establish a debt enforceable in law. It can then use civil enforcement mechanisms, such as seizure of goods, to enforce the notice. The penalty for underpayment is equivalent to 100% of the arrears. The naming of employers on BIS press notices who break the law now applies automatically to all employers issued with a notice of underpayment who do not appeal against it or make representations to BIS. Employers should take action to ensure their rates are not below the NMW. The adult NMW is due to go up from £6.31 to £6.50 on 1 October 2014.

Cash & Carry Management

• May 2014• 37


products & promotions Curry flavour

Snacking format

KEPAK CONVENIENCE FOODS – The micro-snacking company has added a new Chip Shop Curry flavour to its range of Rustlers Noodle Pots. The new 300g variant (rsp £1.99) combines chicken breast pieces with noodles in a chip shop curry sauce. It comes with a fork and can be microwaved in two minutes. “We’re giving people the chance to enjoy a familiar chip-shop favourite in a substantial hot snack,” marketing director John Armstrong told Cash & Carry Management. Research undertaken by Kepak highlights that 70% of Rustlers consumers also buy the market-leading ambient Pot Noodle, reinforcing the potential of Rustlers’ chilled alternative. Tel: Kepak Convenience Foods (01772) 688300.

UNILEVER – Ben & Jerry’s Peanut Butter Cup flavour is now available in a 150ml format. Brand manager Alessandra Salvo told Cash & Carry Management: “Snacking presents a real opportunity for retailers to unlock sales. By offering Peanut Butter Cup – a flavour which has already proved itself to be immensely popular – in a smaller format, we’re helping retailers to capitalise on this opportunity.” The new flavour is packaged in line with the rest of the range, featuring Ben & Jerry’s mascot, Woody the Cow, the brand’s signature blue sky and a colourful pack design showcasing the key ingredient – peanut butter cups. Ben & Jerry’s Peanut Butter Cup 150ml has an rsp of £1.68 for in-home consumption and £2.04 for out-ofhome. Each case contains 12 x 150ml tubs. Unilever has also announced that Ben & Jerry’s All or Nut-ting flavour has been added to the brand’s Core range. The new variant has a soft core of chocolate and hazelnut sauce surrounded by two Fairtrade ice creams, chocolate and hazelnut, with chocolate chips. Tel: Unilever (01372) 945000.

Price-marked BURTON’S BISCUIT COMPANY – The snack-size version of Wagon Wheels, Wheelies is now available as a £1.29 price-marked pack. Two variants, Original and Jammie, come in an eight-pack format exclusively for the cash & carry trade. Established as a £4.2m sub-brand after just 12 months, the new format is enjoying better trial and repeat purchase rates than any other product in its sector (Kantar). “The price-marked packs will enable retailers to meet growing demand in the sweet biscuit category among costconscious consumers seeking everyday treats at affordable prices, accelerating the growth of the £580m (Nielsen) treat sector,” says Stuart Wilson, chief commercial officer. Wagon Wheels Wheelies are being backed by a £1.2m advertising campaign that communicates the adventurous nature of the brand. Tel: Burton’s Biscuit Company (01727) 899700.

Additive-free IMPERIAL TOBACCO – The JPS portfolio has expanded with the launch of JPS Just Additive Free cigarettes. The new variant is available in packs of King Size 19s within selected areas of the south-east of England only, where there is a high propensity for additive-free tobacco products. Senior brand manager Madeleine Allen says: “JPS Just Additive Free represents the first American blend offering within the growing economy sector, enabling retailers in this geographic area to capitalise on the economy-price sector growth opportunity.” Tel: Imperial Tobacco (0117) 963 6636.

Dairy double MONDELEZ INTERNATIONAL – Cadbury Dairy Milk Marvellous Creations now include a Banana Caramel Crisp variant that contains banana candy, caramel cubes and crispy pieces in a 200g tablet as well as a 47g countline. The latest cross-category innovation for Cadbury Dairy Milk, Marvellous Mix Ups bags bring together combinations of family favourites in two variants – Oreo, featuring the world’s number one biscuit (Euromonitor) in miniature, and Maynard’s, the UK’s number three candy brand, both combined with Cadbury Buttons, the number one kids’ confectionery brand. The Cadbury Dairy Milk Marvellous Creations range is supported by a £4.5m marketing investment and is worth £49.7m.

Express version RECKITT BENCKISER – The company has launched Nurofen Express with a £5m multi-channel media campaign that includes TV, digital and commuter out-of-home activity, as well as consumer PR. The aim of the campaign is to educate consumers on how Nurofen Express, with its ‘unique formula that includes a boost from sodium to speed absorption, provides faster headache relief than paracetamol’. Nurofen Express 16-packs (256mg tablets) have an rsp of £3.56. Tel: Reckitt Benckiser (01753) 217800.

Data: Nielsen unless otherwise stated.

Tel: Mondelez International (08702) 400861.

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• Cash & Carry Management • May 2014

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products & promotions Bold branding

Five in one MARS CHOCOLATE – To celebrate its renewed partnership with the FA as an official supporter of the England team, the confectionery company has introduced a limited-edition Mars & Team tub. The football memorabilia tub brings together five Mars brands: Mars, Twix, Snickers, Bounty and Milky Way. Retail excellence director Tony Lorman comments: “The Mars & Team tub is a great opportunity for retailers to tap into football fever during the busy summer period.” He adds: “Products such as the Mars & Team tub are the ideal way to tap into that sharing trend, especially considering that 83% of all UK adults will be supporting the England team (Mintel).” The launch is being supported by a £3.5m spend on television advertising during the summer of football. Tel: Mars Chocolate (01844) 262517.

Sense of history PERNOD RICARD – A new media campaign has been launched to celebrate Brancott Estate’s heritage. Running across print, online, mobile and social media channels, the initiative targets food, wine, lifestyle and entertainment sectors to drive awareness of the wine brand amongst its target audience. The campaign also highlights the pioneering credentials of Brancott Estate as the first winery to plant Marlborough Sauvignon Blanc back in 1975. The creative is underpinned by the brand’s ‘Be Curious’ platform, which celebrates its continued desire to combine innovation with exploration. Tel: Pernod Ricard 020-8538 4484.

UNITED BISCUITS (UBUK) – Healthier biscuits brand go ahead! has a new logo and redesigned packaging to improve product recognition. The go ahead! logo is now contained within a green circle and features prominently on packs, which are also colour co-ordinated across ranges and flavours. Marketing director of sweet biscuits Sarah Heynen says: “Healthier biscuits is the biggest biscuit segment. With its eye-catching new look, go ahead! is sure to grab the shopper’s attention and attract new and existing customers to the fixture.” The brand will also benefit from a £4m marketing campaign later this year. Tel: UBUK 020-8324 5000.

Crafted crisps KETTLE FOODS – Kettle Chips features in a new press advertising campaign, which is an extension of the ‘Lovingly Crafted’ creative introduced last year. Kettle has commissioned three craftspeople to ‘craft a pack’. Sea Salt & Balsamic Vinegar is sculpted from ceramic, Mature Cheddar & Red Onion has been carved from wood, and the summer Seasonal Edition Lime & Black Pepper (available for a limited period), is blown from glass. Kettle Chips is the UK’s number one hand-cooked crisp with value sales over the last year up by 5.9%, ahead of the market which is expanding at 3%, with sharing bags growing even faster – up by 12.3% year on year. (Nielsen). Tel: Kettle Foods (0800) 616996.

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Saucy serving MONDELEZ INTERNATIONAL – Creamy Peppercorn has been added to the Philadelphia Simply Stir range of sauces that take just a few minutes from pouch to plate. Brand manager Beatriz Portela comments: “Philadelphia is the UK’s number one soft white cheese brand, worth £107.7m. “Retailers should stock the Simply Stir range next to Philadelphia in the chiller aisle to inspire shoppers looking for a more convenient way to make a delicious meal.” The Philadelphia Simply Stir range is worth £6.9m. All data: Nielsen.

Tel: Mondelez International (08702) 400861.

New look DIAGEO – Blossom Hill, the nation’s most loved wine brand (Millward Brown), has redesigned packaging across its entire portfolio. The refreshed look taps into a new brand positioning, which invites consumers to enter ‘The Wonderful World of Blossom Hill’ and explore the range of wines. The new pack label communicates the brand’s ‘fruity wine taste’ and offers consumers greater differentiation between its red and white wines, rosé and varietal range. The £2.1m support package includes PR, PoS material, and an above-the-line campaign, which includes TV advertising, video-ondemand and YouTube. Tel: Diageo 020-8978 6000.

Cash & Carry Management

• May 2014 • 39


2014 ANNUAL CONFERENCE • 13-15 JUNE • CRIEFF HYDRO, CRIEFF, PERTHSHIRE The Scottish Wholesale Association invites you to attend its annual conference at Crieff Hydro. As always, an outstanding business programme has been put together. Speakers include:

• Stephen Glancey, Chief Executive, C&C Group • Martin Glenn, Chief Executive, United Biscuits • John Howie, Chairman, CBI Scotland • Jill Livesey, Director, him! • Philip Jenkins, Chief Executive, Sugro • Jonathan Kemp, Commercial Director, AG Barr • Bill Laird, Managing Director, The Today’s Group • Peter Lederer, Chief Executive, The Gleneagles Group • Martin Williams, Managing Director, Landmark Motivational speaker:

• Olympic Gold Medalist Dr Katherine Grainger, CBE Prices for attending the conference have been held at the 2013 rate.

PROGRAMME OF EVENTS Friday 13 10.30am 11.00am 1.00pm 2.00pm 7.15pm

June AGM (members only) Business session Lunch Business session ‘Gold, Glamour & Glitz’ themed reception and dinner

Saturday 14 June 9.00am Business session Afternoon Leisure activities 6.30pm Formal banquet followed by champagne breakfast Sunday 15 June Morning Breakfast and depart

For details contact executive director Kate Salmon kate.swa@btconnect.com • tel: 0131 556 8753 • www.scottishwholesale.co.uk

C&C Management May 14  
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