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Gold Star focuses solely on delivery SPECIAL REPORT Revealed: the true value of the wholesale distribution industry Under the spotlight: Elbrook’s Frank Khalid CATEGORY INSIGHT

4Cigars 4Hot Cereals 4Savoury Snacks 4Soft Drinks



November 2014

This month don’t miss... 08



Subject to clearance: Musgrave Group acquires Allied Logistics

Top tips, trends and NPDs: your guide to savoury snacks.

Fighting back: how Coca-Cola has overcome adversity.

ESSENTIALS 05 06 18 50


Editor’s Comment Industry News Achievers Products & Promotions


Legal Advice Using software developers.


Employment Law Antenatal appointments gain added relevance for dads.


Spotlight featuring Frank Khalid, owner of Elbrook Cash & Carry.


Special Report

I’ll drink to that! Soaring soft drink sales are set to continue as social gatherings gain added prominence during the festive season.


A flash in the pan or a blueprint for success? Brakes’ cash & carry delivers food for thought.

Lighting up the market: Kepak has released a price-marked Rustlers Super 6 range.

The wholesale industry uncovered. 22

Product of the month


Behind the Scenes at Brakes Professional Food Market in Croydon.


Supplier Strategy A year to remember for Coca-Cola.


Savoury Snacks Soft Drinks Hot Cereals Cigars


November 2014



Whipping up interest hen the Prime Minister or Opposition Leader want to muster their troops for a particularly important debate in the Commons, that’s when the chief whip earns his corn. His job is to impress on his colleagues how vital their attendance is in the lower chamber. Outside of Westminster, the Federation of Wholesale Distributors has been doing a pretty good job of its own communicating with politicians about what is going on in the independent and wholesale channels. What began several years ago by encouraging MPs to visit small stores later spread to the cash & carry trade, with the local Member being given a tour of his local depot to give him or her a clearer understanding of how the operators liaise with their retail customers and how they both deal with the might of the multiples. For the time being, however, these regular dealings with MPs with food trade responsibilities have been put on the back burner. No-one at the FWD wants to secure the services of an MP to walk round his local cash & carry if the chances of him or her being in office after the General Election are slim. After next May, FWD chief executive James Bielby will no doubt be contacting those MPs who have retained their seat or those who have replaced them to see the likes of Booker, Bestway, Parfetts and Dhamecha in action.


Meanwhile, it’s good timing by the leading trade body to partner a research company in the production of a new wholesaling report and then to launch the publication in what is fast becoming the Eastbourne-based FWD’s second home, the Palace of Westminster. In its third event staged in the Commons, the FWD and the report’s publishers, Capital Economics, managed to lure Defra Minister George Eustice, making him aware in no uncertain times of the £30 billion-plus value of the UK food and drink wholesale distribution industry and the important role played in the economy by our leading operators. Referring to the report, the FWD claims: “No-one has measured the industry this way before, involving jobs and the value-added aspect of the trade.” And not only was George Eustice in attendance at the publication’s launch, but also several other MPs, including Brandon Lewis, Minister of State for Communities and Local Government. No-one can doubt that the FWD is doing a good job trying to educate our Parliamentary representatives. Would it be too much to ask that in the not-too-distant future, the MPs might be persuaded to fight even harder against duty evasion and further impositions on the tobacco trade?

Mervyn Gilbert News Editor

NEVER MISS AN ISSUE... Cash & Carry Management is free to cash & carry and delivered wholesale directors, buyers and managers. The magazine is available to other subscribers for just £52 a year or £5 per copy. Overseas yearly subscriptions are priced at £80. Back issues dating back to 2011 are available online. Email mail.winlove@btconnect.com or call (01342) 712100 for more information.

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

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November 2014



Welsh honoured Dual role at P&H by Blakemore Jez Pegg (pictured) is the new sales & marketing director of Palmer & Harvey. He takes over the role from Martyn Ward, who is now responsible for P&H Wholesale.

Retailers with drive Two Today’s Group retail customers, ‘Gold Rush’ prize draw winners at the group’s recent annual suppliers’ and members’ presentation, were last month presented with Citroen Relay vans, worth £20,000 each, by managing director Bill Laird at the Doncaster head office. The lucky pair were Baljit Singh Thakkar (seen above with Laird), of World Wines, East Molesey, Kent, who buys from Venus Wines & Spirits, and Erol Akarsu, of Woodgrange Supermarket, Forest Gate, east London, who shops at Dhamecha’s Barking branch. Looking ahead to next year, Laird said: “Today’s event days theme in 2015 will be ‘Checkout Mania’, running from March to September. Prizes worth over £50,000 will be on offer to independent retailers across the UK.” a Today’s Group (0844) 247 0700

Brakes deal First Milk’s Lake District Quark has secured a listing with Brakes. The dairy’s commercial director Glyn Hughes said the product will be available to “thousands of pubs, restaurants, coffee shops and larger scale caterers in the Brakes network.” a Brakes Group (01233) 206000 06

November 2014

Winning retailer Rashed Aziz (left) with Brendan Geach (centre), Blakemore Wholesale Swansea depot manager, and Jonathan Allen, of JTI.

Blakemore Wholesale’s Cardiff and Swansea cash & carries presented awards to seven of their top retail customers at an event held at the Welsh capital’s National Indoor Cricket Centre and attended by over 400 customers, suppliers and staff. The major prize of BA’s member of the year, went to Rashed Aziz, of Lifestyle Express, Gendros, the citation referring to his loyalty and commitment to the

group’s brand. His store, which received a refit in 2012 to Evolution standard, has consistently increased monthly sales. In addition to the awards ceremony, dinner and entertainment, guests danced the night away to the AF Blakemore band, No Direction. A charity raffle and auction raised over £5,000 for children’s hospice, Ty Hafan. a Blakemore Wholesale (01902) 371515

Pegg, who previously held positions in the UK and Europe for Nestlé and Unilever, has also worked for Brakes as business unit director. More recently he was sales director for dairy co-operative Fonterra in Australia and client director for Reach UK. a Palmer & Harvey (01273) 222100

More fundraising by SPAR SPAR Scotland wholesaler CJ Lang & Son has donated £2,500 to the charity CDH UK (Congenital Diphragmatic Hernia). The money was raised through the sale of singleuse carrier bags, which cost customers 2p each. The charity’s Beverley Power said: “We thank SPAR Scotland and its customers for helping to raise such an incredible amount. “We would also like to give a special mention to SPAR employee Joyce


Richmond and her daughter Rachel who is a CDH survivor.“

SPAR store staff with the CDH UK cheque.

Last year the wholesaler raised more than £70,000 for local causes and charities. In another fundraiser by the symbol group, Midlands wholesaler and retailer Blakemore collected more than £2,000 in a sky dive for Prostate Cancer UK. The brave trio who took part were retail employees Suzanne Williams, Bernese Jones and Emma Davies. a CJ Lang & Son (01382) 512000. a Blakemore Wholesale (01902) 366066


Lynagh prepares for second term as president of the SWA The Scottish Wholesale Association has confirmed the appointment of Eddie Lynagh, an area manager for Booker, as its senior vicepresident. It means he will become only the second person to assume the SWA presidency for a second term when he takes over from the current president, Asim Sarwar. Sarwar, managing director of United Wholesale (Scotland), announced the news of Lynagh’s two-year appointment, which takes effect after the SWA’s annual conference at Crieff Hydro next June. “Eddie’s experience and enthusiasm will bring fresh ideas and impetus to the association,” said Sarwar. Lynagh, who is based at Booker’s depot in Shawfield,

In charge of wholesale Following the departure of Stuart Pay-Savage, Cott Beverages has appointed Mel Morrisey (below) wholesale commercial controller. She has been with the company since 2009, developing its field sales and, more recently, also leading its business with high street discounters. Morrisey will continue to take control of the field sales team along with her responsibility for wholesale national accounts. a Cott UK & Europe (01509) 674915

Sales up 13%

Eddie Lynagh

Ruth Sutherland

Glasgow, was previously SWA president from 2002-04. He said: “With the recent changes in the political landscape, this is a great time to start building new relationships to influence key decision makers, and I look forward to working with Asim, executive director Kate Salmon and council members to deliver our goals. “Having been involved

with the SWA for many years, I am very aware of the challenges we face as an industry and I am keen to start making a difference.” Ruth Sutherland, director of Sutherland Brothers, has joined the SWA council, replacing Tom Maclennan, the Wick wholesaler’s former sales director, who has now left the wholesale industry. a SWA 0131-556 8753

Bidvest changes mind The Johannesburg-based Bidvest Group, which had planned to list its shares on the London Stock Exchange (Cash & Carry Management last month), has decided not to proceed. A spokesman for the

largely global foodservice business commented: “The board has considered that the potential listing will not, in current circumstances, be in shareholders’ best interest.” a Bidvest UK 020-7493 4733

Own-brand awards MarketPlace, the cash & carry chain operated by Musgrave Group in Ireland, has won five awards for its own brands. Four were presented at the Blas na hEireann (Irish Food Awards) ceremony. They were for Butchers Select 8oz fillet steak (silver); Butchers Select lamb rack,

French trim (silver); Musgrave Excellence white pudding (gold); and Musgrave Excellence tea bags (silver). Butchers Select lamb rack, French trim, won first prize at an Irish Quick Frozen Awards event. a Musgrave Group (0035321) 452 2100

Landmark Wholesale sales in September rose by 13% compared with the previous corresponding month. Income from cigarettes increased by 17% while licensed revenue was up by 7.2%. Between May and September there was an 11% overall gain. Managing director Martin Williams said: “These figures clearly demonstrate that our focus on price, range, service, promotions and NPD is working. We are delighted to be achieving significant sales growth in every area and are determined to continue this upward trend.” a Landmark Wholesale (01908) 255300

Hurry for tea! John Sutcliffe, out of home & convenience controller for Taylors of Harrogate, has reminded caterers that they have little time left to win a year’s supply of tea – worth £35,000 and described as “one of foodservice’s biggest giveaways”. In order to participate, they must visit www.taylorsoutofhome.co.uk and request a free point-ofsale kit. a Taylors of Harrogate (0500) 418898


November 2014



Tobacco sales dip

Palmer & Harvey, which began its new distribution deal with Costcutter in July, suffered a 0.6% drop in sales to £4.2 billion in the 12 months to 5 April. Costcutter’s previous contract with Nisa was worth around £550 million, so the retail chain’s new arrangement is likely to enhance considerably the wholesaler’s income this year. In the period under review, P&H’s tobacco sales, traditionally worth about 73% of total revenue, fell by 3.3% in value with the loss of business to several major customers – notably Makro, now owned by Booker. In non-tobacco, sales rose by 7.2% to just over £1 billion, buoyed by gaining the One Stop chain contract, among others. Van sales rose by 10% to £120 million. P&H also operates 16 company-owned convenience stores, generating income of £17 million. a P&H (01273) 222100

New plan Today’s Group has distributed 20,000 copies of its new Plan for Profit soft drinks merchandising guide to retailers buying from its wholesale members. The guide includes advice on ranging, seasonal lines and planograms. a Today’s Group (0844) 247 0700 08

November 2014

Local boost

Irish logistics business bought Musgrave Group, which almost a year ago bought the Allied Foods foodservice division in Ireland from the energy and distribution group DCC, has now acquired Allied Logistics from the same company – a deal subject to clearance by the Irish Competition Authority. The logistics concern, with sites in Cork and Dublin, provides ambient and temperature-controlled storage and distribution services to a number of food distributors. The Allied Foods foodservice business handles deliveries of ambient, chilled and frozen food to large restaurants and fast-food outlets across Ireland.

Both Allied divisions are being integrated into the MarketPlace network. At the time of the foodservice purchase early this year, Noel Keeley, managing director of Musgrave MarketPlace, said: “The acquisition will continue a long-term and sustainable growth of MarketPlace and strengthen our offer in Ireland’s foodservice sector, where we already supply over 45,000 pubs, hotels, restaurants and hospitality businesses.” MarketPlace operates from 10 C&C sites – seven in the Republic of Ireland and three in Northern Ireland – all of which also do deliveries. a Musgrave Group (003531) 883 5333

NVQ eightsome Eight employees of Hyperama’s West Bromwich cash & carry have passed their NVQs in a variety of subjects, including customer service, business administration and management. They are: Lynze Duffield, front-of-house manager; Emma Holyhead, non-food supervisor; Nicky Hornby,


front-of-house supervisor; Carrie Anne-Knight, customer receptionist; Heather Beattie, general assistant, tobacco; Neena Sahauli, junior buyer; Pavandeep Kaur Khera, store administrator; and Pankaj Morker, general operative. a Hyperama C&C 0121-522 0386

American Express has announced the launch of its second ‘Small Business Saturday’, which takes place on 29 November to encourage consumers to buy from independent stores. The initiative has been backed by a ‘Think Big, Shop Small’ national advertising campaign using tv, radio and social media. Last year’s programme resulted in 43% of the public surveyed choosing to shop at their small local stores on the day of the promotion, spending an average of £33 each. a American Express (0845) 604 2634

Next year Monte Monte Carlo has been chosen by Today’s Group as the venue for its next annual conference (18-22 September 2015). More than 250 group executives, suppliers and members attended this year’s event in Rome and managing director Bill Laird is confident that figure will be beaten. He said: “With an even stronger business programme, we expect to exceed this number. Membership continues to grow, which means we must continue to develop and enhance our supplier relationships.” Ascot Racecourse will stage the group’s annual trade show from 10-11 March 2015. a Today’s Group (0844) 247 0700



Wholesale group on the move North-east combine aims for more growth. Further acquisitions are not being ruled out by the North Shields-based Kitwave Wholesale Group, which earlier this year bought £40 million-turnover frozen food and ice cream wholesaler Eden Farm, of Peterlee, Co Durham (Cash & Carry Management: April). That deal – KWG’s fourth in three years – was financed through NVM Private Equity and Barclays. The group, which also includes Turners & Wrights, of Bolton, FW Bishop & Son, of Bradford, M&M Value, of North Shields, Telford-based Westones Wholesale and Automatic Retailing, of Cramlington, Northumberland, increased annual pre-tax

profit from £5.2 million to £5.5 million on sales up from £193 million to £197 million. Finance director David Brind said that, with a fullyear contribution from Eden Farm, sales would increase to almost £250 million. KWG, with a staff of more than 400 and headed by chief executive Paul Young (his son Mike is in charge of supplier relationships), has more than doubled its turnover in five years. Although Eden Farm is headquartered in the northeast, it also has a depot in Cambridge and one in

Bradford, which will enable Kitwave to expand in the south. Commenting on the group’s rapid progress, Brind said: “It’s been a really positive year for us. “The new product range of Eden Farm will allow us to develop a deeper relationship

David Brind: ‘It’s been a really positive year.’

with our customers, while maintaining our high levels of customer service. The independent retail sector demands product range, value and availability. The Kitwave solution continually delivers in all of these areas.” While Kitwave’s wholesale businesses retain close ties with Sugro UK, the combine runs its own promotions every three weeks under the Mystore name. The group – which is increasing its penetration through online business – is also one of just 18 companies designated as ‘Elite’ by the Stock Exchange – those considered to be among the fastest-growing in the country. a Kitwave Wholesale Group 0191-259 2277

Family business award

Optimistic Laird Today’s Group managing director Bill Laird is forecasting impressive results from the new Checkout Mania promotion, even though the scheme does not get under way until next March. He said: “We will be offering over £50,000 worth of prizes in members’ depots. Our trade days give retailers fantastic deals while driving sales for wholesale members. “Some have enjoyed a sales boost of up to £1 million in just one day at previous events. We expect 10

November 2014

Checkout Mania to match this success. The instant cash prizes are a first.” He added that the promotion would include free products as well as money prizes. The timing of the activity was strategically aimed at the post-Christmas ‘slump’ period, with Laird commenting: “The start of the year can be difficult for our members and their customers, so we are giving them the deals they need to drive footfall.” a Today’s Group (0844) 247 0700


Steve Parfett, chairman of Parfetts Cash & Carry, has received the family business director of the year award from the Institute of Directors. The IoD awards, open to both members and nonmembers, are presented to directors at the forefront of leadership excellence across British businesses. Parfett was invited to enter the national event after receiving the IoD north west award in autumn 2013. The winners were announced at a function in London last month attended by around 400 directors and presided over by former MP Michael Portillo. The C&C operator has six sites, 541 employees and turnover of £309 million. Parfett is a director of the

A proud Steve Parfett with his IoD award.

the company’s Employee Ownership Association and sits on the council of the Federation of Wholesale Distributors. a Parfetts Cash & Carry 0161-429 0429

Fizz, Juice & Sparkle throughout the festive season

Did you know: Britvic led the growth at Christmas 2013 in Impulse, growing at +13.6% and adding a whopping ÂŁ2.3m growth to the soft drinks category - more than any other distributor?*


Make sure you get your festive season started properly and stock up today!

All copyrights and trademarks are the properties of their respective owners. Subject to availability. *Source: Nielsen Scantrack Total Impulse 6 wks to 4th January v YA

Making life’s everyday moments more enjoyable


Group winners

On course for £50m in delivered Harrow-based Gold Star Wholesale is on the verge of turning itself from a dualpurpose operator into one that is exclusively focused on deliveries. It also claims to be on course to becoming a £50 million turnover business by 2017. Managing director Vijay Thanwani said: “When I took over the site in 2011, it was trading as a cash & carry operator under the Premier Wholesale name.

“With cash & carry shrinking as a format, my plan was to convert the business into delivered-only. “We currently have six vans of just under twotonnes and we will soon add three more. “They are presently each making three trips a day, going to every sort of outlet in the high street, but they will soon be increasing their visits to four daily. “Going into London with

14-tonne or 7.5-tonne vehicles is just not on.” Gold Star, which has just appointed a sales manager, also has four business development managers and four working in telesales. The Today’s Group member recently installed a Sanderson CRM (Contact Relationship Management) system and is rapidly developing its online business. a Gold Star Wholesale 0208427 6848

Two board changes

Yorks deal JJ Food Service’s business in the local authority and educational sectors has been boosted with the award of a four-year contract with the £460 million Yorkshire Purchasing Organisation. The foodservice business, which has two depots in the white rose county – Doncaster and Leeds – will supply an area that includes over 100 Yorkshire Purchasing Organisation members, covering colleges, schools, universities and other local government departments. a JJ Food Service (0843) 309 0991 12

November 2014

Today’s Group marked the retirement from the board of two long-standing directors – co-founder of Nisa-Today’s, Dudley Ramsden, and Sucha Singh, managing director of Reading-based Thames Cash & Carry – with a gift presentation at the group’s suppliers’ and members’ forum in Birmingham.

They each received a fine crystal decanter. Filling their places on the board are Dudley’s son Nick Ramsden, md of family business DB Ramsden C&C in Grimsby, and Fukhera Khalid, head of Elbrook C&C, of Mitcham, Surrey. a Today’s Group (0844) 247 0700

With Today’s Group managing director Bill Laird (left) and chairman Mark Windebank (right) are Nick Ramsden, who received the award on behalf of his father Dudley Ramsden, and Sucha Singh, of Thames Cash & Carry.


With Landmark’s Martin Williams (left) and Chris Doyle (right) is Russell Grant, director of Blakemore Wholesale.

Hyperama Wholesale was named member of the year and Blakemore Wholesale took the catering business development member award at an event to celebrate the achievements of Landmark Wholesale’s members, suppliers and staff. Hyperama also won the trophies for cash & carry small depot (Peterborough) and large depot (West Bromwich), while Blakemore also multi scored with the awards for leading delivered depot (Penrith) and top ownbrand depot (Barnsley). Premier Foods was named foodservice partner of the year, while Heineken UK clinched awards for top business partner, business development partner and tobacco/licensed business partner. The awards were presented by Landmark managing director Martin Williams and business development director Chris Doyle. Other winners included United Wholesale Grocers, Unilever Food Solutions, PepsiCo International, CocaCola Enterprises, Kellogg’s, AG Barr and Parfetts Stockport. a Landmark Wholesale (01908) 255300.


Bestway reiterates ambition to lead the wholesale channel Bestway Group CEO Zameer Choudrey has dispelled fears that the company’s £620 million acquisition of The Co-operative Pharmacy last month could affect its wholesale operations, claiming that the sector remains its “core business and origin”. Speaking at Bestway’s 13th annual Retail Development Awards at the Grosvenor House Hotel in London last month, Choudrey claimed that the group has invested over £275 million in the wholesale channel over the last decade and remains committed to its customers, staff and suppliers. Lauding a number of firsts achieved by the group, including surpassing half a billion pounds in delivered sales, Choudrey also revealed that Bestway Batleys Foodservice has secured 23 contracts covering local authorities, NHS hospitals, schools and private ventures, with a further 22 tenders in place. He added: “In digital, our web business continues to grow, with over 26,000 registered users of our websites. The web business is on

Bestway and Batleys’ triumphant retail customers shared a prize fund of £32,000 at the Retail Development Awards.

target to achieve £230 million in 2014/15, with 15% coming from new business.“ Concluding his speech, Choudrey reported that the group boasts 4,300 symbol and club stores (four times the size of Nisa Local) and highlighted the “critical importance” of collaboration and developing partnerships at customer level to compete in the convenience sector. Meanwhile, Bestway also hosted its inaugural supplier conference at Ascot Racecourse to showcase its new i-beacon technology to over 300 senior executives from food and drink companies such as Coca-Cola and Nestlé. Guests were able to

sample a ‘special event’ version of the updated app, featuring location-based services and a video demo function. Bestway Group’s e-commerce manager Jamil Mohammed said: “This technology represents an important step forward for the Bestway Group in enhancing our customer experience and those attending the Ascot event were able to see the array of opportunities this technology offers.” The first i-beacons were integrated into Bestway’s flagship Park Royal store at the end of last month, with a new Android version of the app released just days later. a Bestway Group 0208-453 1234

Bestway Retail Development Awards – roll of honour Overall winner (pictured left collecting a £10,000 cheque) Abdul Rashid (Best In Salina Mini Market, New Stevenson) Best-One national winner Muhammad Yusuf (Best-One Green Ocean, Manchester) Northern winner Kalpesh and Meeta Raja (Ishiv, Leicester) Southern winner Santhosh Sundaresan (BMP Star Supermarket, London) Scottish winner (pictured bottom left) Ahmet Dursun (Prego Local, Edinburgh) Community award Gurinder Ghag (Best One Radford Stores, Radford Semele) For a full list of winners, visit our website: www.cashandcarrymanagement.co.uk/blog

Wholesalers recognised in Top 250 survey Enfield-based JJ Food Service has been ranked 167th in The Sunday Times Top Track 250, up two places on last year. The Top Track 250 list, which is published annually, ranks Britain’s top mid-market private companies by their turnover over the previous year. JJ managing director Mustafa Kiamil said: “We are delighted to be included in this year’s list, which has collectively contributed 4.3% to the UK’s economy.” JJ is joined on the list by Elbrook Cash & Carry (249), which also features ninth in The Sunday Times International Track 200. Elsewhere, Kitwave Group, foodservice supplier Reynolds and independent drinks wholesaler LWC are ranked 158th, 183rd and 213th respectively in the Top Track 250 league table, while food manufacturers Burton’s Biscuit Company, R&R Ice Cream and Warburtons feature inside the top 75. a JJ Foodservice 0207076 6000


November 2014



Sourcing software services: making it work for you acceptance of various stages of the project.

Meet the legal expert Sophie Spread, Legal Edge

7. Intellectual property rights Ideally, the intellectual property rights for the software you have developed should belong to your business. However, there may be a cost benefit in allowing the supplier to re-use some of the code. In any event, make sure you have access to the ‘source code’, in case your supplier goes into liquidation.

Sophie Spread is an in-house counsel to small and medium businesses

f you had better business software, such as a new or improved product order system or use of Electronic Data Interchange, could you create new income streams and increase your business revenue? If the answer is yes but you do not have the internal resources to deliver it, then you can remedy that by using software experts. Remember, if you can think it, they can build it! If horror stories of projects going wrong are putting you off working directly with a developer, then use the 10 steps below as a starting point to getting it right and improving your business software.


1. Check out your developer Try to get as much information and feedback as you can and ask for recommendations. At the end of the day, while agreeing a sensible contract will help, it is working with someone reliable that will prevent problems from arising in the first place. 2. Do some deep thinking If you do not know in detail what you want, and possibly even if you do, get some help in defining the project. Ask a specialist IT consultant to look at your ideas and recommend a supplier. Or take advantage of the growing availability of on-demand chief technology officers and retain one to help you. Alternatively, work with your developers – they are the experts after all. 3. Clarify the detail Once you have a rough aim, the chances are you still won’t know what you want the software to do in detail. Consider engaging your software developer for 14

November 2014

an initial discovery period to look at what you do, how your business works and to come up with a very detailed plan or scope. Wherever possible, make sure you ‘own’ that plan – even if you decide not to go ahead, you can use it in the future or to brief a different provider.

8. Software and support Consider if you would like the developer to support and maintain the software after it is built. You should try to agree a sensible warranty period where the developer promises that the software will work once accepted. If they do this then you may get a reduced rate on supporting it.

4. Consider how you want to work If you do not have time for the discovery process, then remember that developers will happily start work on a ‘make it up as they go along’ basis with just an end goal in sight. In fact, they like it and call it ‘agile’ methodology. As long as your goals are clear and you can put some certainty around pricing, even when they charge on a day rate basis, you can then work day to day with the developer to make sure that what they are doing is exactly right.

9. Just in case of problems It is useful to have the right to service credits in the event of poor performance, especially if you are buying support and maintenance. It will help to focus the developer’s mind on being responsive. Ensure that you can terminate the contract if they are really doing a bad job or you are just not getting on, and consider handover provisions to ensure a smooth transfer.

5. Keep things flexible As the process continues, you may well have brainwaves about what else can be done. Make sure the contract allows for you to change things as you go. 6. Establish clear criteria for accepting the software It is crucial to ensure that the process and criteria for accepting the software are very clear. If in doubt, it is always best to have the last word on whether the software is delivering what you have asked for. We recommend including payment milestones that depend on


10. Put it in writing Once you have agreed all the details, make sure it is all in a written, enforceCCM able contract!

Legal Edge is a group of highly experienced consultant lawyers who help businesses to thrive. They work inside companies to manage business risk, protect assets, improve revenue recognition and ensure compliance. If you need help with contractual arrangements or structuring commercial projects, contact Sophie Spread at sophiespread@legaledge.co.uk.

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Frank Khalid, owner of Elbrook Cash & Carry in Mitcham, Surrey customers: things like pension schemes, cigarettes that can’t be displayed in certain areas of our premises, waste disposal management systems – it goes on forever and causes headaches for everyone. We tend to spend time dealing with these extra laws rather than improving our business where everyone benefits. If you were able to retire tomorrow, would you? If I were able to retire tomorrow, I would follow my beloved Chelsea FC home and away. At the moment, because of work, I only go to occasional games.

‘My parents taught me everything I know’ What has been the major milestone or turning point of your career? The biggest milestone of my career was the opening of our Mitcham cash & carry. When we originally opened, we were based in Barking, Essex, and our Mitcham branch, where we have stayed, took us to another level. We have enjoyed so much success here. Who has been the biggest inspiration to you? My parents. (A young Frank is pictured above with his mum.) They owned a supermarket and worked long hours. They taught me everything I know, including values and respecting everyone I know, and that has helped me so much to achieve what I have today. How do you maintain a work/life balance and how have developments in technology affected this? Has technology helped? I think 100% it has. My wedding anniversary was a couple of weeks ago and my wife and I went to Dubai. I took my iPad and 16

November 2014

iPhone, which basically helped me enjoy my holiday because, at the same time, I managed my business with the emails and other stuff associated with it. What most frustrates you in business and in life generally? The legislation the Government brings in, which adds costs to me and my

What advice would you give someone starting his/her first job? Be honest, work hard and the rewards will eventually come. The more effort you put into the business, the bigger the reward. What type of business would you go into if it wasn’t C&C/wholesale? Funnily enough, I’m already into property, restaurants, catering and the film industry: that doesn’t leave much left to do! If you had a million pounds to invest, how would you spend the money? I would try to buy the warehouse next door and expand our range, perhaps by CCM going into grocery.

Award-winning entrepreneur Frank Khalid began his business, Elbrook Cash & Carry, in 1984. He was just 16 years of age. He worked in his family’s retail and wholesale businesses and wanted to do something of his own. Now his whole family are together with him and have helped his business to where it is today. It achieved a turnover of £145 million last year and was in The Grocer’s top 30 wholesalers. As well as the cash & carry, Khalid has an Indian restaurant/catering company


called Chak89 (also in Mitcham), which has won many awards, such as the British Curry Awards ‘Best Restaurant in London’ in 2012. Khalid is currently the holder of the English Curry Awards ‘Curry King of the Year’. He also opened West London Film Studios in Hayes this year. It is the home of the BBC1 drama New Tricks and has seen some big Hollywood stars work there. These include Bradley Cooper, Matt Damon, Matt LeBlanc and Benedict Cumberbatch.

[ SPECIAL REPORT] Key findings: the wholesale industry in numbers

• The entire sector turns over annual revenues of £30 billion, employs 66,000 • • •

people and generates £2.8 billion of Gross Value Added annually. In total, food and drink wholesale distributors supply up to 330,000 foodservice businesses and 72,000 retail grocery stores in the UK. They support 540,000 jobs in retail and 300,000 jobs on the catering side. FWD members pay approximately £460 million in taxation to the Exchequer each year. Food and drink wholesale distributors spent an estimated £26 billion on goods from their suppliers in 2013, with food, tobacco and drinks accounting for 45%, 25% and 21% of purchases respectively.

Revealed: the true value of the wholesale channel new report, commissioned by the FWD, has revealed that the food and drink wholesale distribution industry supports over 1.1 million jobs and more than £30 billion of Gross Value Added – equivalent to 4% of all employees or 2.2% of total output in the UK. The findings, which were unveiled by Capital Economics at the House of Commons earlier this month, were presented to FWD members and Defra minister George Eustice, who later announced plans to address the industry’s problems with perception. Mirroring his speech at the FWD conference, report author Mark Pragnell reiterated how the wholesale channel is often ignored by policy makers in favour of the major multiples, despite providing a “key link” between manufacturers, retailers and caterers. Pragnell (right) said: “This is not a small industry.


Considering the entire value chain, including the direct jobs, supply chain jobs and retail and service jobs supported, the food and drink wholesale distribution industry is nearly two-and-ahalf times larger than Tesco. “FWD members spend £26 billion on suppliers, supporting 123,000 jobs, 75,000 of which are in UK manufacturing. “A rich and diverse set of customers rely upon the wholesale distribution industry. Independent small and medium-sized businesses provide competition and access and proximity to the end consumer – all the sort of things this government is after.” Following Pragnell’s address, Eustice concluded proceedings by praising FWD’s members, before lauding the wholesale sector as Britain’s “biggest manufacturing industry and our biggest success story”. It was a passionate, if

Wholesale chain (economic contribution)

Employment (thousands)

Turnover (£ million)

Gross Value Added (£ million)

































not, predictable presentation. But as with most politicians, actions often speak louder than words. Whether Eustice (left) will indeed tackle the industry’s image problem and help it gain greater recognition among policy makers, only CCM time will tell.

The Whole Story: Wholesale Distribution, The High Street, Consumers and the National Economy is claimed to be the first report to measure the full economic and social contribution of the food and drink wholesale sector.

The FWD’s view “Wholesale is a large part of the food supply chain but it is not always recognised as we’d like it to be. We can use this report in our work in Westminster and Whitehall to show the value of our sector. It demonstrates the value wholesalers give to suppliers as a route to market, the economic contribution of our members themselves, and perhaps most importantly, the work our members do in supporting SMEs, giving consumers choice, and protecting high streets.” James Bielby, FWD chief executive

Overall economic activity supported by the food and drink wholesale distribution industry, 2013


November 2014



Second set of scores There has been a change at the top of the league table for the ‘Best Overall Service’ award.


SCORE (max. 50)


AG Barr










Whyte & Mackay










C&C Group










Imperial Tobacco






























Lucozade Ribena Suntory










Coca-Cola Enterprises










Red Bull





Cott Beverages





Nestlé 1st Choice





Pernod Ricard










Highland Spring





AB InBev





United Biscuits





Premier Foods





Molson Coors










Britvic Soft Drinks





Bacardi Brown-Forman





AUGUST score/position


November 2014



Higher or lower? Wholesalers in Scotland are asked to mark each supplier on its performance in October. OCTOBER PERFORMANCE

Deliveries inc Admin (max. 15 points) write N/A if not direct

Supplier Contact (max. 15 points)

Scottish Focus (max. 15 points)

Packaging & Merchandising (max. 5 points)

TOTAL (max. 50 points)

AB InBev AG Barr Bacardi Brown-Forman Britvic Soft Drinks C&C Group

(inc Magners/Tennent’s)

Coca-Cola Enterprises Cott Beverages Danone Diageo Heineken Highland Spring Imperial Tobacco JTI Kellogg’s Lucozade Ribena Suntory Mars Maxxium Molson Coors Mondelez Nestlé 1st Choice PepsiCo


(inc Walkers)

Pernod Ricard Premier Foods

(inc Foodservice)

Red Bull Tayto

(Golden Wonder)

Tunnock’s Unilever


United Biscuits


Whyte & Mackay

Contact name & company ...........................................................................

Please email your completed form to: kirsti.sharratt@virgin.net or fax to 01334 479695


November 2014


HEAT UP YOUR SALES WITH KEPAK Hot, Quick & Tasty (HQT) Snack and Meal experts Kepak Convenience Foods are teaming up with Bestway in a three-month category management project to show how best practice in depot can boost chiller profits. Last month, we introduced the Bestway Gateshead depot, and saw Alison Wright, North East Regional Account Manager for Kepak Convenience Foods, reviewing the current HQT fixture with depot General Manager, Junaid Arif, ahead of remerchandising the Kepak display. This month, we look at how Kepak worked with Bestway, Gateshead to remerchandise the HQT space, and maximise sales of micro snacks in the chiller. Junaid Arif joined Bestway in 2001 as part of the graduate training programme, before moving to the Gateshead depot from Manchester in 2008. He has since worked his way up from part time cash and carry assistant, to his current role as general manager. Junaid says: “Historically, we have worked well with Kepak, so we knew that their advice would be extremely valuable when it came to boosting sales of HQT products.

“From the outset, Kepak gave great advice on the best way to display products and how effective use of POS would have a positive impact on customers visiting the chiller. “They started by re-dressing the shelf, making sure any ‘older’ products were situated at the front so that SKUs are consistently sold in line with their use by date. The quality of the POS provided was extremely strong, and priority shelf space was also given to bestsellers such as the Rustlers Quarter Pounder and Rustlers BBQ Rib. This has proven particularly helpful for retailers when trying to decide which products are going to make the biggest impact on-shelf.” Angela Daulby, Channel Director at Kepak Convenience Foods, says the importance of displaying products correctly, whilst providing effective and up-to-date signposts for the HQT fixture, cannot be overlooked when it comes to boosting chiller sales both in-depot and in-store. Angela says: “Working with Bestway Gateshead, we have endeavoured to provide practical advice as well as ongoing support to Junaid and depot staff, which will in turn have a positive impact on HQT sales.


“Re-merchandising is just one part of an ongoing education process, which will not only benefit the depot, but also retailers looking to stock the bestselling lines and make the most of promotions which will boost profits in the long-term and generate repeat custom.” Junaid adds: “So far, it has been an extremely beneficial exercise for both depot staff and customers alike, and we’re already seeing sales uplift. Not just for Kepak products, but for our overall chiller sales – so it’s had a positive impact on the depot generally. “One thing that sets Kepak apart is that they understand the needs of our customers. Retailers often have limited time to spend in depot, so having POS that highlights bestsellers, new products and promotions is a real benefit as it allows them to make the right choices for their store. It’s been a great education for our customers.” Next month, we return to Bestway, Gateshead, to review HQT sales following re-merchandising and ongoing advice provided by Kepak. Plus, we visit a retailer to find out how they’ve worked with Bestway and Kepak to boost HQT profits in their store.






*1 IRI, Total Coverage 52 w/e 16th August 2014

HQT products are bought by 60% of all UK households

The category is worth £457 million 1 *


It is forecast to grow to £1 billion within the next 10 years


WHAT KEPAK DID... Switched out existing POS for the very latest stands and shelf-edge labels Stripped the fixture and re-merchandised, bringing ‘older’ products to front of-shelf, with fixture effectively signposted and clearly defined Checked that all shelf-edge labels corresponded to products on-shelf Gave prominent placement to top-selling products – Rustlers Quarter Pounder, BBQ Rib and Chicken Sandwich Ensured that range also catered to different markets – with EDLP (Everyday Low Price) products given space on-shelf


01772 688 300


Diversification with a difference Heralded as the biggest delivered foodservice supplier, Brakes sent shockwaves across the industry by opening its first Professional Food Market in Croydon eight months ago. But in the face of adversity, Brakes has paid homage to the expression: ‘Never judge a book by its cover’ and delivered a new recipe for success. ith over half a dozen cash & carries located within a 10-mile radius, many foodservice operators would scoff at the idea of opening a new depot in the same vicinity, let alone trying to diversify into the channel for the very first time. Factor in the growth potential of online ordering and home deliveries and you can perhaps understand why Brakes’ decision to open its inaugural Professional Food Market in Croydon was greeted with such ridicule and disdain by competitors and other critics. Nearly nine months on from the store’s official unveiling, however, the initial hostility appears all but a distant memory. Delivering on its promise to create a multi-channel experience, the group has reinvented the cash & carry concept and uncovered a new and lucrative customer base. Upon entering the store, the attentiveness and friendliness of the staff bear closer resemblance to a fine-dining restaurant, with customer service forming the focal point of the business.



November 2014

By Michael Catling Editorial Assistant Exclusive insight It is a refreshing trait that is often overlooked in many establishments and one which operations director Martin Sandler immediately adheres to as I accept a guided tour. “We are very proactive and have a

Brakes at a glance Opening times: Monday to Friday: 7am – 8pm Saturday: 7am – 6pm Sunday: 9am – 4pm Product lines: Over 4,000, including those from its specialist businesses M&J Seafood, Wild Harvest, Pauleys and Prime Meats Store size: 25,000 square feet Employees: 35 Tel: (0844) 871 7997 Website: brakesfoodmarket.com


dynamic and innovative team who are focused on driving new customers and capturing increased basket spend,” he explains. “We have a multilingual mix of staff, 12 of whom speak different languages. This reflects the diverse nature of our customer base and also makes our customers feel at ease. “The design of the store was geared towards ensuring the fresh section was the first port of call. We have over 4,000 fresh, grocery, frozen and non-catering products but we are constantly evolving our range and responding to customer feedback.” Some will argue that the added convenience of online ordering has weakened demand for cash & carries. But as Sandler points out, the foodservice industry is an entirely different proposition. “Our critics were comparing us to another Makro or Costco but we have our own identity and a real point of difference compared to other cash & carries,” says the former warehouse manager of Costco Croydon. “The entire concept is designed

[ BEHIND THE SCENES ] around the caterer and providing added solutions for customers to develop their menus and grow their business. “The density of caterers in Croydon represents the backbone of our business and we believe there is an opportunity to meet our customers’ desire to buy fresh and seasonal produce on a daily basis, sample new products and take advantage of our in-house expertise.” Sandler cites top-up shopping as a key purchase driver, and with many foodservice companies restricted by limited storage capacity, Brakes’ latest venture offers an immediate and flexible solution. From duck tongues and potato starch to dragon fruits and truffle oil, Brakes’ multicultural mix of core and niche SKUs illustrates its responsiveness to consumer demands, with a next-day delivery ordering system compensating for all fish preparation being performed off-site. An in-built preparation facility is a noticeable omission from an otherwise finely tuned set-up, with ‘chiller jackets’ offered to customers upon entering the store and a range of purchasable freezer bags, boot bags and pallet shrouds available for temperature control and product protection. It is often the finer details that separate the good from the great and it is here that Brakes thrives in delivering the ‘complete’ customer experience. While the group’s attention to detail is laudable, its in-house kitchen is the one element that really stands out and has been earning rave reviews thanks to a combination of daily demonstrations

‘The concept is designed around the caterer and providing added solutions for customers to develop their menus and grow their business’ Martin Sandler (pictured), operations director, Brakes Professional Food Market and a team of charismatic chefs. It seems a shame, then, that the main showpiece is hidden towards the back of the store, with head of food Neil Smith’s joviality and customer interaction offering greater comedic value than most stand-ups. Nevertheless, as a swarm of customers gather round for a turkey demonstration, it is easy to see why the depot has achieved “very high” customer satisfaction levels. “The kitchen is really appreciated by our customer base and has become a hugely successful and focal hub in offering advice for caterers,” says Smith. “It is a bit like an in-store development kitchen and it offers an ideal

opportunity to provide an added-value service and explain our special offers and develop menus for our customers.” Sandler echoes Smith’s sentiments and speaks glowingly about the “support, insight and knowledge” provided by CEO Ken McMeiken. As he begins to relay some of the “great feedback” the depot has received in recent weeks, it seems hard to find too many faults with a store that has “surpassed all its targets”. For now, Brakes has no fixed plans to roll out the concept, but with the group already identifying potential sites for the future, who would bet against its Croydon depot becoming the blueprint CCM for success?

Customer feedback “I have never been anywhere like it – you receive such a personalised service.” “The quality and value of the food is amazing.” “The concept is inspirational.” “The customer service is great and you feel part of the family.” “The staff are brilliant – that is why I love coming here.”


November 2014



Dads gain the right to attend antenatal appointments Meet the HR expert Cate Ritchie, 121 HR Solutions Cate Ritchie is a fellow of the Chartered Institute of Personnel and Development

Asking for proof The employer is not entitled to ask for proof via an appointment card because it relates to the mother, not the father or parent of the child. However, employers can ask the employee to make a written declaration stating: That they have a qualifying relationship with the pregnant woman or her expected child That they are taking the time off specifically to attend the antenatal appointment with her That the appointment has been made on the advice of a registered medical practitioner, midwife or nurse The date and time of the appointment. This can be given in an email. If you later discover that the employee has misled or deceived you, these are CCM grounds for disciplinary action.

rom 1 October, employees have been granted the statutory right to take time off to attend antenatal appointments if they are in a “qualifying relationship” with a pregnant woman. This new right applies from day one of employment, i.e. no continuous period of employment is required.


Who qualifies for it? a pregnant woman’s husband, partner or civil partner, i.e. if she’s in a same-sex relationship the father of the child the parent of the child intended parents in a surrogacy situation who meet specified conditions. Therefore, it is possible that a woman’s partner may qualify for time off even if he is not the child’s natural father.

• •

Restrictions Those who qualify for time off only have the right to attend two antenatal appointments and they cannot take more than six-and-a-half hours for each.

• • • •

A question of pay Pregnant employees have the statutory right to reasonable time off work with pay to attend their antenatal appointments. But fathers (or partners) accompanying those women do not have the right to be paid. Therefore the time is unpaid unless an alternative arrangement is made with the employer (such as using holiday entitlement).

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

Revised shared parental leave and pay regulations Revised Shared Parental Leave (SPL) regulations are due to come into force on 1 December for babies born on or after 5 April 2015. The regulations are designed to give parents more flexibility in how to share the care of their child in the first year following birth or adoption. Parents will be able to share a pot of leave, and can decide to be off work at the same time and/or take it in turns to have periods of leave to look after the child. Employed mothers will continue to be entitled to 52 weeks of Maternity Leave and 39 weeks of statutory


November 2014

maternity pay or maternity allowance. If they choose to do so, an eligible mother can end her maternity leave early and, with her partner or the child’s father, opt for Shared Parental Leave instead of Maternity Leave. If they both meet the qualifying requirements, they will need to decide how they want to divide their Shared Parental Leave and Pay entitlement. The options to use the new SPL rights will apply to parents who meet the eligibility criteria, where a baby is due to be born on or after 5 April 2015, or for children who are placed for adoption on or after that date. Employers


could start to receive notice of eligibility and the intention to take SPL from qualifying employees from January. To qualify, the parents (or adopters) must have worked for at least 26 weeks in the 66 weeks leading up to the due date and have earned above the maternity allowance threshold of £30 per week in 13 of the 66 weeks. On 14 October, ACAS published its new guide on SPL. This includes a step-by-step guide on how eligible employees can make an SPL request to their employer and advice for employers on how to deal with SPL requests fairly.


Snack happy this Christmas As shoppers disregard diets and bulging waistlines over the festive season, crisps and nuts represent the perfect snacking accompaniment for all entertaining occasions.

onsumer confidence and higher frequency of top-up shopping has fuelled growth of crisp and snack-based products, with revenue rising by 40% within the convenience channel last year, according to KP Snacks. Data shows that single packs account for almost twothirds of the overall bagged snacks spend, with KP Snacks retaining a 13.6% share of the £2.8 billion UK savoury snacks category. The company’s brands are currently worth £377 million in annual retail sales, with consumers purchasing over 45 million packs of McCoy’s three best-selling flavours – Salt & Malt Vinegar, Flame Grilled Steak and Cheddar & Onion. To drive revenue across its £100 million brand, the snacks manufacturer has released 55p PMPs across McCoy’s top three handy range, available exclusively to convenience and independent retailers on a ‘three for two cases’ deal. KP Snacks has also introduced McCoy’s Ultimate, supported by an above-the-line campaign, including sampling, in-store free-standing display units and PoS material. Available in three flavours – Sizzling BBQ Chicken, Chargrilled Steak & Peri Peri and Sea Salt & Black Pepper – McCoy’s Ultimate has an rsp of £1.99 for a 150g sharing bag, with a 90g pack price-marked at £1. In addition to this, KP Snacks says that healthier innovation represents an “incredibly important”


part of its product development, hence the recent release of New Velvet Crunch, which is marketed as a healthy gourmet alternative to crisps. The 30g packs have an rsp of 55p and are sold in Thai Chill & Aromatic Sweet Basil, Mature Cheddar & Onion and Salt & Rich Balsamic Vinegar flavours. KP Snacks has also expanded the UK’s favourite nut brand by adding three new variants – KP Coated Nuts (rsp £2.50), £1 PMP handy packs and 450g/500g KP Big Bag Nuts (rsp £2.50). The latter two formats are available in the top four flavours shoppers demand (Salted, Dry Roasted, Salt & Vinegar and Spicy Chilli), according to Nielsen, with KP Coated Nuts and new larger packs of KP Big Bag Nuts helping to tap into the large sharing occasion, which has the biggest rate of sale at Christmas. Worth £200 million in incremental sales at Christmas, KP Nuts Caddies have been reintroduced by the UK’s number one nut manufacturer and are joined by KP Frosted Nuts, which generated an 88% sales uplift last year. KP Snacks trading controller convenience Matt Collins points to 19% year-on-year growth of £1 nuts in impulse, and urges wholesalers to market exclusive special offers for convenience and independent retailers, such as ‘two for £11’ case promotions, to help stores cater for one in three nut shoppers who only purchase KP products. To conclude its festive product launches, KP Snacks has released Cheese & Tomato Christmas Crackers and two new Snackers tubs – limited-edition Phileas Fogg Fire Roasted Chilli Taco Rolls and Penn State Sour Cream and Chive Christmas Tree Pretzels – all of which retail at £2.50. KP Snackers tubs amassed a £3.2 million retail sales value during Christmas 2013 and Collins expects KP’s festive lines to deliver incremental sales opportunities for retailers once again. “This year we’re unveiling our strongest ever Christmas range that really meets retailers’ and consumers’ needs across all segments and flavour variants with both brand new and tried and tested favourites,” he says. “Market research shows us that planning early is key to a successful holiday period. Offering festive lines earlier can generate consumption and drive a need for repeat purchase later on.” All data: Nielsen.


November 2014


the UK’s No.1 Ridge Cut Crisps brand *

*AC Nielsen Total Market 52 wks to 25.09.14

McCoy’s IS The Must-Stock Brand! ✔ McCoy’s is worth £106M* ✔ Consumed by more than 1/3 OF UK HOUSEHOLDS* ✔ 1 pack eaten EVERY 15 SECONDS*

e s a e r c n i O T p u k Stoc your profit!

ff s O e ck Sal oy’s i K ur C c Yo h M n t g i a wi mp

ca oon! g n gs i t i Exc comin

[ SAVOURY SNACKS ] Natural over artificial

The UK crisps market is worth £2.4 billion – one-and-a-half times the size of the cereal market (Nielsen).

Merry Crisp-mas Kettle Foods has unveiled three Kettle Chips seasonal flavours, alongside its first-ever on-pack promotion across its core 150g range, to help generate consumer interaction and reinforce the brand’s status as the UK’s number one hand cooked crisp brand (Nielsen). Replacing the summer flavour of Lime & Black Pepper, Cheshire Cheese, Red Wine & Cranberry has been launched as the winter seasonal edition until March 2015, while Stilton & Port and Salsa & Mesquite have been re-released until the end of December following consumer requests. The new 150g bags, which have an rsp of £2.19, are designed to ”capitalise on consumers’ desire to buy premium products for sharing occasions”, says Jim Couchman, head of impulse at Kettle Foods. Sharing bags are growing by 9% year on year within the convenience market. Elsewhere, Kettle Foods has announced a new on-pack promotion across the top five seasonings in the Kettle Chips 150g range, on a total of 10 million bags. The campaign, which runs until 30 June, offers consumers the chance to win a handmade kitchen, worth £35,000, or a cash alternative of £25,000. A thousand instantwin prizes, ranging from designer appliances to Kettle Chips bowls, are also up for grabs until 8 January. The promotion is supplemented by consumer facing activity and a press advertising campaign, which has been running across a range of newspapers and lifestyle magazines, including BBC Good Food, Good Housekeeping, The Guardian, The Times and The Telegraph, since the autumn. Andrew Slamin, marketing director at Kettle Foods, says: “Kettle Chips 150g bags are regularly purchased for sharing with friends and family, especially at Christmas time. “The promotion provides excellent brand synergy, working in harmony with our advertising and generating increased shelf stand-out during this key sales period.”


November 2014


Nearly half (45%) of consumers believe it is important that snacks contain natural ingredients, a study by Nielsen has revealed, with the absence of artificial colours (44%), genetically-modified ingredients (43%) and artificial flavours (42%) rated as very important. One-third of respondents believe it is key for snacks to be low in sugar (34%), salt (34%), fat (32%) and calories (30%), while one in four consumers feel caffeine-free products are more desirable. Susan Dunn, executive vice president for global professional services at Nielsen, comments: “There is a perception that snacks are intended more for in between meals than for actual meal replacements. “But busy, on-the-go lifestyles often dictate a need for quick meals, and many opt for fast-food options that can be high in calories and low in health benefits.” This corresponds with NEMS consumer research, commissioned by Keynote, which disclosed that 54.4% of respondents were driven by the desire to purchase healthier snack foods regularly, with nearly 70% claiming that brand trust was a driving factor in regularly buying snack-based food.

Big things come in small packages Savoury biscuits are playing a key role in driving growth within the wider biscuit market, according to Burton’s Biscuit Company, with its Cathedral City Baked Bites and Fish ‘n’ Chips brands adding £8 million to the category since being launched earlier this year. According to David Costello, head of customer category management at Burton’s, innovations within the 420 million savoury biscuit market are driving growth, with household penetration for savoury biscuits currently standing at 67% (Kantar). To tap into the growth of on-the-go consumption and the popularity of snack bags, Burton’s has introduced 40g Fish ‘n’ Chips and 35g Cathedral City Baked Bites grab bags (rsp 59p). Costello remarks: “Cathedral City Baked Bites and Fish ‘n’ Chips are already acting as beacon brands on the fixture, and we’ve made a high impact entry into savoury biscuits with these two products.” Targeted at a broad spectrum of consumers, particularly families with children aged 10+, Cathedral City Baked Bites provide access to 16 million Cathedral City Cheddar loyalists (Kantar) and are also available in a five-pack snack bag (rsp £1.69) and a large sharing bag (rsp £1.59). Similarly, Fish ‘n’ Chips are sold in a 5 x 25g multipack and a 125g share bag to cater for all snacking occasions, in and out of home.

The best films this Christmas are in the can. Pringles is the no.1 large sharing brand.** So if you want to grow your business make sure you’ve got big stocks of our special movie packs. This promo is going to be a real Christmas blockbuster.



Contact the Kellogg Kareline and quote PR00311

For range and merchandising information, call the Kareline on 0800 783 6676 *See pack for details **IRI YTD 13th Sept 2014 †Maximum of 100 available on a first come first served basis @KelloggsTradeUK ©2014 Kellogg Company

[ SAVOURY SNACKS ] “Savoury biscuits is an area which is benefiting from increased focus on health, due to the perceived health benefit of baked versus fried snacks,” adds Costello. “Burton’s Fish ‘n’ Chips and Cathedral City Baked Bites have taken the market by storm and are set to become two of our most successful launches ever.”

Movie magic Kellogg’s reports that Pringles’ value sales have grown by 9.3% (IRI), with the UK’s number one sharing snack brand contributing £64 million to the convenience channel, up 16% year on year. Nick Dawson, UK customer director, speciality channels at Kellogg’s, points to Pringles’ popularity across 12 million households and urges stores to stock bestselling flavours such as Sour Cream and Chive, Original, Salt & Vinegar and Texas BBQ – all of which display a new on-pack Christmas promotion with Twentieth Century Fox. Shoppers can download one of 40 HD films for free when they buy two promotional packs and Dawson anticipates that the campaign will drive incremental sales, provided cans are located in high footfall areas such as near the till or chiller cabinet to increase visibility. He adds: “October through to December is the peak consumption period for in-home snacking and accounts for 30% of large snacking sales, making it an attractive proposition for retailers.” In 2013, ‘Merry Pringles’ cans generated £50 million sales and Dawson urges stores to stock Pringles 40g cans, together with Special K Cracker Crisps, to capitalise on the big-eat and healthier categories within the single-serve market. He adds: “The single-serve format provides almost half of category sales in the convenience channel so it is really important to get your offer right and appeal to all shoppers.” All data unless otherwise stated: Nielsen.

Seasonal shake-up Seabrook Crisps has unveiled a new premium Lattice Cut range featuring the UK’s first peel-front crisp packets. The unique packaging, which is exclusive to the foodservice and convenience channel, responds to the growth of the premium crisp category, which is currently valued at £223 million, up 7% year on year (Nielsen). According to Kevin Butterworth, Seabrook Crisps marketing director, the 40g packs (rsp 75p) are designed to cater for “all out-of-home eating occasions, from snacking at work to socialising in the pub and café culture”. Available to cash & carries in outers of 18, Seabrooks Lattice Cut is the only certified gluten-free sharing crisp and 30

November 2014


The sharing occasion for crisps is valued at £292 million and growing by 4% annually (Nielsen).

comes in Natural Sea Salt, Sea Salt & Red Wine Vinegar and Rich Farmhouse Cheese and Onion variants. The range is also supported by consumer activity, ranging from in-store media and PoS material to national sampling and a trial-driving programme.

Festive favourites United Biscuits has extended its Christmas range with three new Jacob’s variants, as well as relaunching over a dozen festive favourites. Seven out of 10 UK savoury biscuit purchases last year were Jacob’s branded, according to Nielsen, with three out of four UK households opting for McVitie’s or Jacob’s biscuits last Christmas. To reinforce Jacob’s status as the number one cracker brand, United Biscuits has added Jacob’s Christmas Crackers and Cracker Selection packs, with rsps of £4.29 and £1 respectively, and a new 800g Tin (rsp £7) containing four roll-wraps. Elsewhere, resealable tubs of Jacob’s Twiglets Antler, Mini Cheddars, Oddities and Treeselets Caddies (rsp £3.49 each) have been reintroduced for the festive season, together with Crawford Teatime and Carr’s Assortment – the number one premium savoury biscuit brand. The latter variant has an rsp of £7.50 for a 500g Christmas box, while Crawford TeaTime is available in a 650g carton and 275g pack, retailing at around £2 and £1 respectively. To conclude its Christmas activity, United Biscuits has relaunched 250g (rsp £2.50) and 900g (rsp £7.50) tubs of Jacob’s Biscuits for Cheese, Jacob’s Savoury Favourites (rsp £2.19) and Jacob’s Savours Assortment (rsp £4.29). All data: Nielsen.

For further information: Burton’s Biscuit Company (01727) 899700 Kellogg’s (0800) 626066 Kettle Foods (0800) 616996 KP Snacks (01977) 692500 Seabrook Crisps (01274) 546405 United Biscuits 020-234 5000


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GroceryAid is the trading name of the National Grocers Benevolent Fund. A registered Charity Reg. No 1095897 (England & Wales) & SCO39255 (Scotland). A company limited by guarantee, registered in England & Wales no 4620683


Nielsen reports that 67% of snacks and soft drinks are consumed together, but only 13% are sold together.

Quenching a thirst for growth Lauded for its responsiveness to emerging trends, the soft drinks category has undergone a major facelift in recent years as consumers favour healthier alternatives and exotic flavour combinations. But with top-up shopping, on-the-go consumption and at-home entertaining adding greater complexity to the market, the festive season represents a fine balancing act for all concerned. Michael Catling reports. oft drinks rank as the second most popular food and drink item in the UK, a study by Kantar has revealed, with 61% of households purchasing Coca-Cola products 11 times a year. Historically, revenue across Coca-Cola Enterprises’ (CCE’s) portfolio has grown significantly during the festive season, claims Dave Turner, trade communications manager at CCE, with Kantar figures showing an increased basket spend across the company’s brands. “The spike in popularity means there is an average of 8.4 purchase occasions per shopper in the eight weeks leading up to Christmas, with 95% of households enjoying soft drinks products,” says Turner. To help replicate similar success this year, CCE has unveiled a marketing campaign, fronted by a ‘Holidays are Coming’ television commercial this month, to help drive sales in-store. This will be supplemented by a new advert running throughout December, with a raft of Christmas packaging and promotions set to be launched later this month. Turner advises wholesalers to stock a selection of multipack and share-size formats, such as Coca-Cola 1.75 PET bottles and 300ml multipacks, to help cater for Christmas occasions. He adds: “Multipacks are available in quantities of six, eight, 10, 12, 24 and 30 cans, helping

Top picture supplied by Didriks



November 2014


to provide a solution to suit different requirements and offering optimum value.” Turner also highlights the attraction of mixers during the Christmas period, with consumers favouring a ‘special’ drink “which differs from what they would have day to day”. To correspond with nearly half of all mixers being consumed without alcohol (Kantar), CCE unveiled a new packaging redesign and multi-million pound above-the-line campaign for its Schweppes brand this summer to help recruit a new generation of adults. Turner says: “Schweppes is the number one mixer brand and this overhaul of its packaging across regular and slimline variants provides a modern design that will have greater on-shelf stand out to engage a younger 35+ demographic.” Although carbonates accounted for a 44.2% market share by volume of the overall soft drinks market in 2013 (Zenith International), the UK bottled water category has grown by 6% year on year in value sales to £1.38 billion (Canadean), with experts forecasting a further increase of 8% over the next three years. To tap into the third largest sector within the soft drinks market, CCE recently launched a new bottled water brand – Glaceau Smartwater. The product, which is the number one premium water in the US, is available in 600ml

[ SOFT DRINKS ] AG Barr secures licence deal Irn-Bru manufacturer AG Barr has extended its portfolio by securing the exclusive rights to distribute Snapple soft drinks in the UK and Europe. The 10-year partnership with Dr Pepper Snapple Group, which begins in January 2015, will see the Scottish manufacturer sell, market and distribute Snapple’s range of teas and fruit juices. Roger White, chief executive of AG Barr, said: “Snapple is a high quality brand that is very successful in the United States and we strongly believe in the significant potential of Snapple in Europe.” The collaboration comes three months after AG Barr agreed a two-season sponsorship deal with Scottish Rugby to become its official soft drinks partner.

and 850ml PET bottles, with an rsp of 57p and 89p respectively. Glaceau Smartwater is also supported by a multi-million marketing campaign, fronted by Jennifer Aniston, who is providing the voiceover for the television advert and featuring in the out-of-home and digital campaign. All data unless otherwise stated: Nielsen.

Re-energising the market Cott Beverages has announced that its energy drink brand Emerge released the second biggest soft drink product this summer. Emerge Zero, which was launched in March, delivered sales of 348,992 litres this summer, according to Kantar, with Bauer Media Group identifying Emerge as the “energy drink of choice for 16-34 year-olds”. Calli O’Brien, brand manager for Emerge, comments: “Following careful and extensive product development, we are delighted that our new zero sugar offering has proved to be a popular hit with both our traditional target market and new audiences. “With an rsp of just 35p a can, and less than 10 calories in each 250ml serving, Emerge Zero is the perfect choice for a growing market of cost and calorie-conscious consumers.” Reduced sugar and healthier options represent £1.7 billion worth of sales within the soft drinks market, up 5.8% year on year, with Emerge Sugarfree energy drink posting 81% volume growth during 2013 alone. Industry experts forecast that the low calorie energy drinks market will rise in value from £46 million to £200 million in the next five years. All data unless otherwise stated: Nielsen.


November 2014


Splashing out The festive season presents a major profit opportunity for UK wholesalers, according to AG Barr, with 21% more carbonates sold in the eight weeks leading up to Christmas. The Scottish manufacturer reports that its leading brands outperformed the market last year, with sales of two-litre Irn-Bru and Barr Family experiencing 19% growth and two-litre bottles of Barr Lemonade generating a 90% sales uplift. The AG Barr Family range, which is worth over £50 million, is a “massive hit” during Christmas, claims Adrian Troy, head of marketing at AG Barr, with shoppers turning to “familiar flavours such as cola and lemonade”. He continues: “Large pack sizes and multipack cans are particularly important during the festive period to cater for family gatherings and parties, with Irn-Bru and Barr multipack cans showing a 43% seasonal uplift last year.” To deliver “exceptional value and choice for shoppers”, AG Barr has announced a £1 million Christmas support package for its Irn-Bru brand, featuring digital, social media and PoS activity throughout December. Snowman-branded two-litre Irn-Bru packs, price-marked at £1.49, have also been introduced to help deliver a festive feel-good factor, as AG Barr looks to build on a 5.6% rise in first-half revenue. Elsewhere, AG Barr has sought to capitalise on 12% year-on-year growth across 500ml big can energy formats by introducing Rockstar Xdurance Electric Fruit Mix. The new 500ml can, which is available plain and price-marked at 99p, aims to replicate the success of Rockstar Xdurance Blue, which has generated over £40 million in sales since being launched by the company in August 2011. All data: Nielsen.


1 . o N UK’S



*Nielsen Scantrack, Vol Sales, MAT to 03.09.14, Total Impulse


The 250ml Coca-Cola can Designed for cash conscious shoppers looking for refreshment on-the-go. The Coca-Cola 250ml slimline can range is now the second fastest-selling Immediate Consumption Cola pack in Independent & Symbol outlets, second only to the well-established 330ml Coca-Cola range.* Also available in 49p price-marked packs.

Stock up now.

*Nielsen Independents & Symbols MAT to we 26.07.14

Š2014 The Coca-Cola Company. Coca-Cola, Coke, Diet Coke, Coke Zero and the Dynamic Ribbon device are registered trademarks of The Coca-Cola Company.

[ SOFT DRINKS ] Driving home for Christmas The Christmas period represents a “lucrative” opportunity for the energy drinks sector, according to Boost Drinks’ sales director Al Gunn, with designated drivers, tired travellers and hungover partygoers predicted to stimulate sales. The 4% growth of the energy drinks sector, which is valued at £539 million, is being driven by sales of future consumption formats, particularly multipacks, which have risen by 13.1% across independents and symbols (Nielsen). To secure a share of the seasonal take-home market, Boost Drinks has introduced £1 PMPs of one-litre Original and Sugar Free PET bottles, reduced from the standard £1.29. The company also hopes that its 250ml 49p PMPs will be a big seller as a mixer, with Gunn highlighting the success of its Sugar Free Pink Lemonade, which has helped increase Boost’s sugar-free sales by over 70% since being launched in April 2014 (Nielsen). As a result, he urges stores to stock 250ml cans and 500ml cans and bottles in “regularly refaced chiller cabinets” to entice impulse customers, with shelf talkers and PoS material helping to create added interest. To drive incremental growth within the sports and energy drinks sector, Lucozade Ribena Suntory has released a new Reduced Sugar Cloudy Lemonade variant of Lucozade. Supported by a £1.8 million media spend including outdoor, online and in-store activation, the new variant is available in 380ml PMP, 500ml, 6 x 380ml and one-litre formats, with rsps of 95p (PMP), £1.15, £3.85 and £1.99 respectively. Lucozade Ribena Suntory has also unveiled a £2.5 million media investment to reinforce Ribena’s status as the UK’s number one juice drink brand (Nielsen). Following a four-week TV advertisement in September, Lucozade is currently implementing outdoor advertising, digital and shopper activation to promote Ribena’s core range.

I’ll drink to that! Volume sales of flavoured still, plain sparkling and plain still water grew by 18.6%, 16% and 11% respectively in 2013 (IRI).

Sporting a new look Navson has unveiled a multipack redesign across its Saka mineral water range to enhance shelf stand-out and reinforce its support of sport organisations, teams and events. According to Andrew Roser, brand manager at Navson, the new look has generated “extremely positive feedback” from customers, with the integration of sporting silhouettes on 500ml multipack bottles, together with the SportsAid logo on all multipack bottles, helping to reinforce Saka’s positive health message. The brand’s logo has also been enlarged and centred on packs to increase prominence, while the colourful butterflies, which currently feature in Saka’s first-ever television campaign, are incorporated on packs to enhance brand awareness. To drive sales across Navson’s brands this Christmas, Roser advises wholesalers and cash & carries to work closely with its representatives to enhance relevance and exposure. He adds: “Stocking up over the Christmas period is vital for any wholesaler or cash & carry to make sure they are not caught out by any sudden influxes in demand. “Building a relationship with your account manager will help to drive sales with the creation and implementation of national and localised campaigns.”

Consumer concern for carbonated sugary drinks One in four consumers are drinking less carbonated soft drinks (CSDs) than they were six months ago, new research from Mintel has revealed, with half of those surveyed citing “too much sugar” for their reduced consumption. Value sales of CSDs are anticipated to reach just £7.5 billion in 2014, compared to £8.3 billion in 2011, while consumption of CSDs are expected to fall to 5.95 billion litres this year – the lowest rate since 2010. Just over a third (34%) of those surveyed said they were drinking less because they were worried about the health impacts of artificial sweeteners, while one in six (16%) cited health campaigns such as Change4Life as an influential factor in limiting their consumption. Earlier this year, Mintel identified that 32% of those who


November 2014


had drunk fruit juice, juice drinks and smoothies in 2013 said they limited their consumption of juice drinks due to their high sugar content. Despite this, 55% of consumers said they opted for CSDs to quench their thirst, with over a third (37%) drinking them to accompany a meal. Although 24% of those over 18 said they drink CSDs as an alternative to an alcoholic beverage in a bar, pub or restaurant, 61% of CSD drinkers said that pubs, bars and restaurants should make the drinks more visible to consumers at the point of sale.

Table data: Nielsen Scantrack (13/9/2014)

[ SOFT DRINKS ] Top 10 soft drinks by sales value (total impulse) 1

Coca-Cola (£1,027,069,470)


Lucozade (£586,557,676)


Red Bull (£446,128,771)


Volvic (£291,640,322)


Pepsi Cola (£279,751,247)


Euroshopper (£190,675,782)


Ribena (189,234,819)


Evian (£149,529,563)


Monster (£139,344,199


Fanta (£131,774,144)

A very berry Christmas Sales of standalone soft drinks and mixers for alcoholic drinks increase by as much as two-thirds over the festive season compared to other times of the year, a study by Nielsen has revealed. During Christmas last year, lemonade grew by as much as 67% in volume, with mixers and colas generating 35% and 21% growth respectively. Meanwhile, fruit drinks and fruit juices were up by 17% and 8.7% respectively, figures which Refresco Gerber attributes to the perceived “better value and longer shelf life” of ambient products. James Logan, commercial director of Refresco Gerber, comments: “For Christmas entertaining, shoppers will be looking to buy more drinks in bulk. This, coupled with concerns about budget, means that ambient products, like juices, will be at the front of shoppers’ minds. “As chilled single serve is the fastest growing sector within the juice drinks category, it is important that wholesalers and retailers cater for consumer preferences for chilled drinks, even if it means chilling ambient products.” Single serve represents the best performing format for juices, according to IRI, with chilled single-serve products up by 5.6% compared to last year; evidence that the on-the-go market is a key driver of sales. To correspond with this category growth, Refresco Gerber has introduced new pack designs and price marks across its Just Juice range, exclusive to the convenience channel. A 49p price mark features across its 200ml range, while a ‘two for £2’ price point is displayed on one-litre cartons, alongside a £1.29 price mark. According to Logan, the new pricing strategy is designed to build on 5% and 6.4% volume growth in the chilled and ambient category respectively for the company’s 200ml range. Elsewhere, Del Monte has released Naturally Light Orange 40

November 2014


Just Juice 200ml lunchbox-sized pineapple, orange and apple variants grew by 20%,18% and 8% respectively last year.

– a low sugar and low calorie alternative for health-conscious consumers. The new premium variant, which comes in a one-litre resealable carton, has an rsp of £1.59 and is specifically targeted at the breakfast orange juice market. Although traditional flavours such as orange and apple continue to perform well during the festive season, up 20% and 30% by volume respectively, last year consumers opted for more distinctive flavour combinations, such as pure grape (up 65% by volume), tomato (29%) and blueberry (33%). To coincide with new taste preferences, Refresco Gerber recently relaunched its Del Monte Occasions range – a readymade cocktail mixer.

‘It is important that wholesalers and retailers cater for consumer preferences for chilled drinks, even if it means chilling ambient products’ James Logan, commercial director, Refresco Gerber Available in Pineapple Mojito, Spicy Tomato Mary and Mango Margarita flavour combinations, the one-litre variants retail at around £1.99 and aim to take advantage of 56% yearon-year growth across premium products (Kantar). Logan says: “The relaunched Occasions range is a cocktail mixer and also works well as an adult soft drink, addressing two needs in one, helping with space constraints.” To help drive dual purchases, wholesalers are encouraged to relay the importance of co-locating juices, mixers and soft drinks with food and other drinks, such as spirits, which are likely to be consumed at the same time. Logan concludes: “At Christmas time, entertaining is front of mind so cash & carries should display juices and mixers under entertaining, as well as under a non-alcoholic banner, to drive sales.” All data unless otherwise stated: Nielsen.

Available at Most Retailers & Superstores



Trade enquiries welcome

and many other leading wholesalers.

Tel: 0208 575 3700


Did you know? NPDs account for only 3.2% of the £1.9 billion impulse soft drinks market (Nielsen).

Panic-buying solutions Britvic has identified top-up packs and distress purchasing as two key shopper missions set to drive growth within the convenience channel this Christmas. In-home entertaining and social events account for one in four purchases from a convenience store, with one-quarter of beer, wine and spirits shoppers already buying premium soft drinks. This corresponds with Britvic’s research, which reveals that 56% of consumers are perfectly happy to drink soft drinks when socialising, regardless of what others are doing. To help deliver solutions for all shoppers, Nigel Paine, commercial director for out of home at Britvic, believes PoS activity should centre on larger pack formats and NPDs, with cross-category promotions helping to increase basket spend. To help target those socialising with friends but choosing not to drink alcohol, Britvic has re-introduced limited-edition four-packs of J20 Glitter Berry. The launch, which coincides with the brand’s geomarketing, digital and TV and consumer experiential activity, will be supplemented by educational material communicating J20’s suitability in cocktails. Paine adds: “December is the biggest month for multipack sales in impulse, driven by consumer demand for larger packs which fit the increase in social occasions. But retailers should not forget two-litre carbonates at this time of year too – not only are they consumed on their own, but there is also an opportunity to upsell products such as Pepsi, 7UP and R Whites as they are likely to be used as mixers.” Paine cites 250ml and 330ml formats of multipack carbonate cans such as Pepsi, 7Up and Tango as perfect for sharing, and also urges stores to place chillers in high traffic areas to enhance visibility. All data unless otherwise stated: Nielsen.

Concentrated growth Sunmagic has responded to consumer trends for both lowcalorie drinks and exotic flavour combinations by releasing a raft of new products. The brand, owned by Multiple Marketing, has extended 42

November 2014


its Elopak range by adding a new Premium Mango variant, which comes in aseptic packaging to enhance shelf life. Two 500ml bottles – Apple, Mint & White Grape Juice Drink and Cherry & Apple Juice Drink – have also been introduced and are joined by five one-litre pack formats. These comprise Mango, Tropical, Orange & Mango, Caribbean Delight and Summer Delight Juice drinks – all of which have an rsp of £1.29 and contain no added sugar. The latter three variants are also available price-marked at 75p, exclusive to the C&C sector, while the two new 500ml bottles, which contain 35% juice, are price-marked at 99p. Razin Ali, Sunmagic’s brand manager, comments: “The fruit juice, juice drinks and smoothie market is currently valued at £4.8 billion, and with 83% of adults drinking products from the category, cash & carry outlets should ensure they have a comprehensive range of drinks to cater for all customers (Mintel).” To correspond with new government regulations regarding school food standards, which come into force in January 2015, Sunmagic has also released two pack formats containing 150ml juice – the maximum allowance in single-size portions for schools. Sunmagic 75% Juice range is available in Orange, Apple and Pineapple 200ml variants, while its new range of 330ml PET bottles contain 45% juice and are available in Orange, Apple and Tropical flavours, as well as Fairtrade Orange and Fairtrade Apple. Following on from the success of its partnership with How to Train Your Dragon 2 this summer, Sunmagic has signed a deal to be the official UK soft drinks partner of the Hobbit 3: the Battle of the Five Armies. The sponsorship, which is promoted across Sunmagic’s 200ml, 500ml and one-litre packs, is supplemented by a two-week radio campaign, adverts in leading consumer CCM magazines and digital activity.

For further information: AG Barr (01204) 664295 Boost Drinks (0113) 240 3666 Britvic (0845) 758 1781 Coca-Cola Enterprises (0845) 722 7222 Cott Beverages (01509) 674915 Lucozade Ribena Suntory 020-3727 2420 Navson (0845) 644 0992 Refresco Gerber (01278) 441600 Sunmagic 020-7274 6090

[ SUPPLIER STRATEGY ] Turning a negative into a positive...

Coca-Cola Enterprises Name: Coca-Cola Enterprises

Top performing CCE brands (independents and symbols)

• • • • •

Oasis +20.6% Monster Energy +11.2% Coke Zero +10.5% Fanta +6.9% Relentless +6.1%

Website: www.cokecce.co.uk

Head office number: (0845) 722722

The Coca-Cola Christmas Truck will be visiting over 40 cities this winter.

‘The wholesale channel brings a lot of creativity and entrepreneurialism to any product launch’ – Simon Harrison, wholesale sales director at CCE.

ebates often rage in the PR industry on whether all publicity is good publicity. Some claim it is myth that smacks of naivety, while others simply point to a marketing mechanism that can be spun in any direction. Times, though, are changing and an increasing number of government campaigns and new regulations have seen several manufacturers subjected to the harsher realities of social media due to non-compliance. Over the last 12 months, Coca-Cola Enterprises (CCE) has been forced to deal with a sizeable backlash following a Newsnight episode aired last November, when Jeremy Paxman demonstrated the high sugar content of Coca-Cola. The fallout, led by health activists, continues even now and with CCE suffering a 2.1% decline in year-on-year sales in 2013-2014 (IRI), wholesale sales director Simon Harrison could be forgiven for feeling a little downcast. Contrary to expectations, however, he remains unperturbed about external affairs and points to CCE’s


commitment to “support sustainable growth and deliver more choice and information for consumers”. He says: “We have a long-standing strategy focused on communicating the importance of merchandising excellence and increasing brand visibility. “The wholesale channel brings a lot of creativity and entrepreneurialism to any product launch and we have certainly benefited from really impactful displays in-depot and some great execution in brochures and online.” From introducing a permanent £1.69 price mark on 1.75-litre bottles to adjusting pack sizes to coincide with on-the-go shopper missions, CCE has created compelling propositions for caterers and retailers to help fuel growth. Harrison says: “We have launched some really interesting brands this year, as well as new pack formats and zero sugar options, to help create excitement across the soft drink category.” Harrison cites Coca-Cola Life and Glaceau Smartwater as two products that “really stand out” and with excitement building around the Coca-Cola

Christmas Truck Tour, CCE is hogging the spotlight again for the right reasons this time. But while Harrison can take solace from a brand reinvigorated, his major challenge remains helping wholesalers to capitalise on the convenience channel. “One of the biggest emerging trends is that consumers are shopping locally and using independent retailers as a destination for shopping more frequently,” points out Harrison. “People are also eating out of home more regularly now, and it is important that wholesalers and retailers get behind the phenomenal growth opportunities presented by plain water, energy and juice drink categories (up 5.2%, 5.2% and 10.3% respectively).” To encourage repeat purchase, says Harrison, stores should utilise digital media and offer incentives such as special offers and redeemable vouchers to engage more customers directly. From CCE’s point of view, Harrison expects the next 12 months to follow a similar pattern, with plans built around embedding its latest product launches and tapping into new trends. Provided that it can also continue to diffuse any adverse publicity with NPDs and promotional strategies, CCE’s stranglehold on the soft drinks industry CCM could prove irrepressible. All data unless otherwise stated: Nielsen.


November 2014



Pots of opportunity Convenient formats are driving sales of hot cereals and are ideal for wholesalers’ customers. he ‘hots’ segment has brought £7 million to the cereals category as porridge continues to become increasingly popular, meeting consumer demand for convenient healthy options that are good value for money. Two-thirds of UK households buy into ‘hots’, leaving plenty of room for growth in this segment. PepsiCo recently launched 99p price-marked Quaker Oat so Simple pots and Quaker Oat so Simple mini packs (rsp £1.50), exclusively for convenience retailers. The pots come in Original and Golden Syrup flavours, while the mini packs are also available in Original (six sachets) and Golden Syrup (five sachets) varieties. “Products that are quick and easy to prepare are among the top four motivations for breakfast choice, making it important for cash & carry managers to focus on the right range of convenient products,” says Matt Goddard, head of impulse field sales at PepsiCo. He continues: “The top-up shop opportunity is worth £38 billion (him!), with 88% of UK adults topping up at least once a week, so encouraging retailer customers to stock relevant formats to drive midweek basket spend is important for cash & carry managers.” Quaker Oat So Simple 500g bag, which is available price-marked, has had a “fantastic response” from retailers and is encouraging penetration in smaller, younger households. Quaker Heaps of Fruit, which was launched in January in sachet and pot format, has also been successful for PepsiCo, driving sales of £5.3 million (Nielsen) and appealing to younger consumers in particular. Also introduced in January was Oat So Simple Multi-Grain, which has helped retailers boost sales by offering even more choice. A campaign to raise awareness of the diverse Quaker range is running throughout the winter and includes TV advertising and in-store shopper marketing activity.


All data unless otherwise stated: Kantar.

Marketing boost Hamlyns of Scotland is ramping up its marketing and promotional activity in support of its Scottish Porridge Sachets and Porridge Pots to drive sales and distribution over the key winter period. The programme includes advertising with money-off coupons in the Scottish local weekly press, competitions, and sampling in goody bags at a wide range of sporting, food and drink and lifestyle events. 44

November 2014


The company is also offering in-store demonstrations to promote the products to cash & carry customers throughout Scotland, with guest appearances by arrangement from the Hamlyns Porridge Pot Man. The Scottish Porridge Sachets and Porridge Pots are both available in three varieties: Original, Golden Syrup and Mixed Berry. Since the launch in early summer, sales of the convenient formats through multiple retailers, co-ops and independents have been very encouraging, and they are expected to shoot up over the winter months due to seasonal demand and heightened awareness resulting from significant investment in trade and consumer promotions. Hamlyns of Scotland is already a well-established brand in Scotland. Hamlyns Scottish Oatmeal is the brand leader, and the company’s Scottish Porridge Oats is the fastest growing porridge oats brand. The full range is now available in shrinkwrapped shelf-ready packs for cash & carries. John Kerr, director of The JFK Partnership, which is responsible for Hamlyns’ sales, says: “With our new pots and sachets, we have two more excellent products from Hamlyns of Scotland, and the packaging design and price point make them very attractive to consumers. We will be talking to all of our cash & carry customers in the coming weeks to make sure that they have distribution to meet customer demand, and to offer them demonstrations.” Hamlyns’ managing director Alan Meikle adds: “Everyone knows that eating porridge for breakfast is one of the best ways to start the day. With our new convenient products complementing our traditional range of Hamlyns Scottish Porridge Oats and Hamlyns Scottish Oatmeal, we now offer porridge to suit all lifestyles, and we’re looking forward to working with our sales team and trade customers to increase sales of both ranges over the winter months.” All data unless otherwise stated: Nielsen.

For further information: PepsiCo (0118) 930 6666 The JFK Partnership (01343) 541496



Preparing for the display ban Support for retailers in the months leading up to April – when the tobacco industry becomes a ‘dark market’ – may prove key to the future success of the cigar category. he cigar category is worth £245 million, reports Scandinavian Tobacco Group (STG), which recently launched Break Little Cigars, a new sub-category of super-value-for-money cigars. The product consists of a little cigar with an inbuilt filter and an Ecuadorian wrapper made of natural tobacco leaf to ensure a milder taste than most machine-made cigars. The brand is available in three variants, Silver, Blue and Menthol, in both non-price-marked and price-marked packs. James Higgs, head of public affairs, comments: “Little cigars are now the fastest growing tobacco sub-category in Europe with 3.45 billion sold in 2013 (Nielsen). “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, Break Little Cigars respond directly to this trend with a contemporary proposition that will hold great appeal for price-sensitive smokers.” With the arrival of the display ban in April 2015, when all stores will go dark, retailers will have little choice or control in terms of the layout and look of their tobacco gantry. As a result, STG advises wholesalers to support retailers through this transitional period by ensuring they are fully prepared and compliant by the time the dark market arrives. “Wholesalers should make sure they are aware of the market trends surrounding trusted brands, value-for-money and niche tobacco products,” says Higgs. “Well known, big selling brands should always be a key focus for all wholesalers. Café Crème is the number one selling cigar brand in the world.” Value for money still plays a big role in influencing shopper decisions, and without sight of the prices, it is likely that consumers will simply ask for the cheapest cigar available. STG believes that it will be crucial for retailers to stock products that offer customers exceptional value for money, such as Break Little Cigars or Moments Miniatures. Stocking niche cigar ranges like Café Crème Filter Arôme will also enable retailers to give their store a point of difference. The company is offering retailers guidance on how to prepare for the dark market with its Gantry Guardians’ Guide to Tobacco – a four-page report with advice on key trends, as well as important diary dates and top tips. STG recently launched new hygro-foil packs for its Henri



November 2014


Wintermans Half Corona and Slims ranges to preserve the humidity of the cigars and lock in the freshness. Both ranges now also feature cigars that have been individually bar coded, allowing them to be sold separately. All data: SymphonyIRI unless otherwise stated.

Key category insights

JTI has a 30% value share of the cigar market, and Hamlet has been a key player in the cigar market for over 38 years, generating £103.1 million last year in retail sales (Nielsen). Hamlet large whiffs is the UK’s leading fine cigar brand. Small whiffs is the most popular cigar format in independent and symbol stores, accounting for 58.9% of cigar sales. The current volume share for each of the market segments in independents and symbols stands as follows: large cigars at 0.1%, large whiffs at 36%, panatellas at 3.7%, small whiffs at 58.9% and cigarillos at 1.4%. In preparation for the restricted market environment, JTI has invested in website development to help customers grow their business. JTI Advance trade website (www.jtiadvance.co.uk) has been created to provide key category insights, news on product developments and up-to-date industry and legislative information. “There’s no coincidence over the timing,” explains head of communications Jeremy Blackburn. “The new site will add huge value to the face-to-face sales calls and will enable JTI to build on some of the key areas where retailers need support, which could be around profitability, stock level and availability, which is absolutely key going into the restricted market.” All data: JTI estimates unless otherwise stated.

Quality and value According to Andy Swain, field development manager for Ritmeester, the majority of the company’s business is still in the multiples. Only 10% is currently in convenience. “We continue to grow in the multiples (4% to Q1 vs a market decline of 5%), driven by price,” he says.


[ CIGARS ] “Multiples have been dark for over two years now, yet we continue to grow. This is driven by value: in a dark environment, price becomes even more important. Consumers revert to asking ‘What’s your cheapest?’. This will go so far, but if the product does not deliver quality, the consumer will soon switch back to brand. This is the main reason Royal Dutch Miniatures continue to grow.” Ritmeester Moods is the biggest-selling cigar SKU in the world and Mini Moods and Moods Filter are delivering double-digit growth in the UK. Advice from Ritmeester is to stock a range of cigars

‘In a dark environment, price becomes even more important’ Andy Swain, field development manager, Ritmeester

offering brand and value alternatives. When the gantry is closed, consumers will want value for money, not necessarily brands, so it is important to offer both. “We have been able to learn from the multiples,” says Swain. “From the evidence we have seen, sales have stabilised. There was an initial drop, but that came back quickly. Cheapest-on-shelf sells.” Ritmeester’s focus is on educating retailers and helping them to understand the category and its products. For example, cigarillos can be offered as an alternative to cigarettes. The company is looking to offer small cigar-specific units with their own curtains that can fit on the sides of the gantry. These will be free to the right locations, and will help to make cigars visible so a choice can be made.

Importance of availability Imperial Tobacco brands account for 36% of small cigar sales in the UK. Brands from the miniature segment have continued to increase their market share, now accounting for just over 67% of all retail sales. Small cigars sales have remained consistent over the last 12 months and currently make up around 30% of the cigar market, while large cigars hold the remaining share of 3%. Classic is the second bestselling small cigar brand in the UK, accounting for 26% of the small cigar sector and over 8% of the total cigar market. Available in five packs or as singles (in 50s drums), Classic cigars have brought in over £30 million for UK retailers in the last year. 48

November 2014


Imperial Tobacco’s large cigar brand Castella Panatellas (five pack) and single cigars (in 25s drums) maintains a 7% share of the large cigar sector. Montecristo Mini cigars are available in two variants, Full Flavour and Smooth. These Cuban blend cigars are packed in embossed tins, each containing 10 miniature cigars. “When the display ban comes into effect for retailers, cash & carries should ensure they have excellent availability in order to improve sales,” says communications manager Rachael Geake. “Demonstrating best practice in terms of availability means stock on the shelves in the tobacco room, not in the store room. When retailers visit tobacco rooms they expect the bestselling brands to be constantly available and well priced. “By simply making the environment more pleasant with helpful and attentive staff on hand, wholesalers will be able to stand out from the crowd. Their customers, who are traditionally time poor, will have a far greater buying experience which will be reflected in their profits deriving from having better stocked display units.” Imperial Tobacco is distributing Display Restrictions Update information packs to its trade customers. The pack includes information on how retailers can remain compliant, as well as tips on how to explain the changes to customers. All data: ITUK.

New product development Hunters & Frankau has launched a filter version of Agio Mehari’s Sweet Orient cigars, which joins the three existing variants: Ecuador, Java and Sweet Orient. Mehari’s Sweet Orient Filter is presented in a retail pack of 10, with 10 packs to an outer. The unique character of Mehari’s Sweet Orient is the result of vanilla aromas that harmonise with the Java wrapper and a tobacco blend from Indonesia and Brazil. Mehari’s is available in CCM over 100 countries.

For further information: Hunters & Frankau 020-7471 8400 Imperial Tobacco (0117) 963 6636 JTI (0800) 181 519 Ritmeester (0118) 903 4921 Scandanavian Tobacco Group 020-8731 3400



Rustlers’ PMP range of bestsellers offers consumers value for money PRODUCT OF THE MONTH

KEPAK CONVENIENCE FOODS – The company has set its sights on accelerating the growth of the UK’s £122 million micro-snacking market (IRI) with the launch of Rustlers Super 6 – a range of Rustlers’ top-selling SKUs all pricemarked at £1.99. Rustlers Super 6 PMP range, which already accounts for more than 40% of all sales within the micro-snacking market of 60 SKUs, was created to offer reassurance to price-conscious consumers, with a dedicated promotional plan helping to provide added value and simplicity for stores. Marketing director John Armstrong comments: “The key to retailers maximising sales from the chiller is to stock the competitively priced products that their shoppers are looking for, and micro-snacks are no exception.

“The range is forecast to deliver a £5.2 million incremental opportunity within the convenience channel.” For optimum chilled fixture management, retailers are able to purchase the range in cases of four. Rustlers Super 6 comprises the UK’s bestselling micro-snacking products: Tikka Chicken Hot Naan, The Quarter Pounder (purchased by two million households), Hot Subs Southern Fried

Chicken, The Deluxe (Bacon Cheeseburger), The Chicken Sandwich, and The BBQ Rib (the UK’s second best-selling micro-snack). The relevance of chilled products to consumers is highlighted by research which confirms that people take food out of the fridge at home an average of 42 times a week, almost twice as often as from the cupboard (Kantar). “Micro-snacks are already amongst the top performing products in the entire chilled foods market,” says Armstrong. “For the one in four convenience retailers who already stock Rustlers, this is an opportunity to grow sales by an average of more than 20%.” Rustlers is the UK’s number one micro-snack, with annual sales exceeding £78 million. a Kepak Convenience Foods (01772) 688300

Menthol variant

Frozen additions

Smaller sizes

IMPERIAL TOBACCO – The L&B Blue Superkings range now includes L&B Blue Superkings Menthol 19s, with an rsp of £6.79. Price-marked packs are also available at £6.55, while stocks last. Over 48% of cigarettes in the economy-priced sector are above king size. Menthol accounts for almost 10% of the total factory manufactured cigarette market. Brand manager Rebecca Cottee comments: “The L&B Blue brand has already achieved a 1.69% market share in its first six months (all ITUK).” a Imperial Tobacco (0117) 963 6636

PREMIER FOODS – The company has made its first foray into the frozen food aisle with the launch of Paxo Stuffing Balls, available in a 300g bag containing 12 sage & onion stuffing balls. Meanwhile, the latest addition to the Sharwood’s portfolio consists of a range of six steamed rice bags, each containing two rice steamer pouches. The frozen range includes Egg Fried Rice, Pilau Rice, Golden Vegetable Rice, Vegetable Fried Rice, Biryani Rice and Spicy Chilli Rice variants. They are available at an rsp of £1.75 per 380g pack. a Premier Foods (01727) 815850

EMPIRE BESPOKE FOODS – A revamp of the Thai Taste brand continues with new pack sizes for the Sticky Rice and Rice Noodles products, which are now presented in 200g packs (instead of 454g). Carine Gauyet, associate marketing director, comments: “Our Thai Taste brand is the fastest growing branded range in the category and we feel the changes to the pack sizes of our Sticky Rice and Rice Noodles will help us to continue momentum and growth, improve shelf standout, and be more convenient for consumers.” a Empire Bespoke Foods 207-091 3200


November 2014



Winter warmer

On-pack offer

Eggs to savour

KOPPARBERG – New cider variant Kopparberg Spiced Apple can be served over ice or warmed up as a winter drink. Head of marketing Rob Calder says: “Kopparberg cider fans have frequently asked us for a winter variant and after a limited trial in 2013, we have decided to roll the variant out to a wider audience in 2014. We’ll be supporting the variant with PR and social media over the winter period.” Off-trade retailers are encouraging consumers to taste the mulled serve through sampling and in-store media. a Kopparberg (02890) 668901

HALEWOOD INTERNATIONAL – The UK’s leading independent drinks manufacturer has launched an on-pack offer for its Lambrini brand in association with Heat magazine. The promotion aims to encourage trial of the Lambrini variants, particularly Strawberry which was launched earlier in the year. The offer is running on 750,000 75cl bottles of Lambrini Original, Strawberry, Cherry and Peach. The label features a unique code to claim a free copy of Heat until February 2015. a Halewood International 151-480 8800

UNILEVER – The company has once again teamed up with Kinnerton to create two innovative Easter eggs, which will be available from February. Marmite and Pot Noodle are being launched in chocolate Easter egg formats for the first time to bring excitement to Easter fixtures. Following consumer research, the Marmite Easter egg will actually combine Marmite with chocolate. Marmite Easter egg will be available in cases of four, while the Pot Noodle Easter egg with mug will come in cases of six. The rsp of each product is £5. a Unilever UK (01372) 945000

Absolutely new

Sweet hot choc

Festive promotion

PERNOD RICARD – Flavoured vodka variant Absolut Cherrys has been relaunched with a new bottle design that is in keeping with the brand’s heritage within the art world, which dates back to 1984. The redesign is being supported in-store with PoS material and a neck collar providing shoppers with recipe inspiration and information about the flavour. Absolut is the number one brand in the premium flavoured vodka category and is growing at 27.7%, ahead of the market at 4.2% (Nielsen). a Pernod Ricard (0800) 376 5550

MARS – Mars Chocolate Drinks & Treats has extended its range of treat-size hot chocolate pouches with the launch of two new variants, White Maltesers and Chocolate M&M’s. The White Maltesers hot chocolate has the same malted taste as its confectionery counterpart and contains white chocolate pieces, while the Chocolate M&M’s hot chocolate contains mini M&M’s. Both variants can be made by adding hot milk or water and are presented in 140g pouches containing seven portions. a Mars Chocolate (01753) 550055

SHS DRINKS – Seasonal offers from the drinks company includes a selection of case deals, as well as a range of account-specific promotions for WKD, Britain’s number one RTD (Nielsen). SHS Drinks is also providing a range of PoS items to highlight WKD’s festive offers, including door notices with space to communicate store Christmas opening hours. The free items are available from the WKD PoS hotline: (0800) 917 3450. Price-marked at £4.99, promotional 4 x 275ml packs of WKD Blue and Iron Brew are available to independents. a SHS Drinks (01452) 378500


November 2014


mers can u s n Co

TV Starts 1st Jan

up to

1000 by unwrapping the

No.a1staetr E


Store wins if a consumer wins


One winner everyday 1st Jan to 5th April For category advice from the No.1 Easter confectionery manufacturer* go to deliciousdisplay.co.uk *Nielsen Jan - April 2014. **For full T&C’s go Cadbury.co.uk or delicious display.co.uk.

Profile for Cash & Carry Management

C&C Management Nov 14  

C&C Management Nov 14  

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