UNDER THE SPOTLIGHT: MILLENNIUMâ€™S RISHI LAKHANI
THE BUSINESS MAGAZINE FOR CASH & CARRY/DELIVERED WHOLESALERS
Booker set to drive delivered business Gearing up for new holiday pay arrangements HR expert Cate Ritchie advises employers on the steps to take
In Focus: Bestway Digital innovation in the wholesale channel CATEGORY INSIGHT
4Sweet Biscuits 4OTC Remedies 4Confectionery 4Hot Beverages
This month don’t miss... 08
Broken promises: Fio’s Cash & Carry is refused a traffic licence.
In Focus: Bestway’s new app provides a wealth of features.
Biscuits uncovered: analysis of the latest trends and NPDs.
ESSENTIALS 05 06 24
Editor’s Comment Industry News Products & Promotions
FEATURES 16 22
In Focus Bestway’s new customer app. Spotlight with Rishi Lakhani of Millennium.
Legal Advice Lizzie Bayley examines wholesalers’ packaging waste obligations. Employment Law Cate Ritchie foresees the impact of two recent tribunal decisions.
Category guidance: nine manufacturers offer their advice on how to take advantage of the confectionery market this Christmas.
Product of the month
Achievers First-round results for the supplier award for Best Overall Service.
CATEGORY INSIGHT 26 38 44 48
Confectionery Hot Beverages OTC Remedies Sweet Biscuits
Fighting illicit trade: Philip Morris unveils Manchester-based educational programme.
Tangerine Confectionery marks Butterkist’s 100-year anniversary with on-pack cash promotions.
H p o i o S r , a p i T for great sales y NEW FOR
STOCK UP NOW on promotional Tip ‘N’ Sip packs In market from mid-September One of Kellogg’s highest redeeming kids cereal promotions Supported by £2m marketing campaign Customers buy 3 promotional packs and go online to claim their free bowl. For range and merchandising information, call the Kareline on 0800 783 6676.
©2014 Kellogg Company
[ EDITOR’S COMMENT ]
Welcome to our new look e are all aware that appearances can be deceptive – take the C&C customer whose clothes belie his multi-millionaire status – but they are important for a business journal. To work best for time-pressed readers, the pages should be packed full of news and interesting features yet still be easy to navigate. While we regularly review the content of our magazine to ensure its relevance, we believe that maintaining an established design is helpful to our readers. However, after years of the same format, we decided it was time for a new look. Giving Cash & Carry Management a makeover has been a fascinating process. When it comes to something as subjective as magazine design, there is not always a right answer, but it was gratifying to have so many ideas to consider and to work with such an enthusiastic team. Businesses have long solicited suggestions from staff on how to improve ways of working or the goods being produced. Of course, sharing ideas is part of normal working life, but what about stimulating employees to come up with breakthrough concepts – those that potentially bring substantial financial benefits? Writing in Harvard Business Review (http://blogs.hbr.org/2014/06/dont-offeremployees-big-rewards-for-innovation/),
Oliver Baumann and Nils Stieglitz examine ways to incentivise staff to share radical ideas. They challenge the notion that companies need to offer big rewards, pointing out that this could, in fact, be counterproductive: the sheer volume of ideas provoked might mean that managers have insufficient resources to deal with them, leading employees to wonder why they bothered committing time and effort in the first place! Regardless of how a business motivates its staff, it would surely be remiss to ignore employees’ suggestions when major benefits can be realised. In the 2013 Scottish Wholesale Achievers awards, the winner of the Employee of the Year accolade was Abhay Singh, floor supervisor at United Wholesale Grocers’ Polmadie branch. Using skills from his previous job as a ship’s captain, Singh planned how to deliver a major refit of the cash & carry in less time and with less building work, disruption and investment by using the available space more effectively. Singh’s valuable contribution was recognised by United and he is now training as a buyer. The impact of a magazine redesign is not easy to measure, so that’s where you come in. Please contact us at mail. email@example.com or via LinkedIn. We promise to listen to your views.
Kirsti Sharratt Managing 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 firstname.lastname@example.org or call (01342) 712100 for more information.
Address Winlove Publications Ltd, PO Box 366, East Grinstead RH19 4ZE Tel (01342) 712100 Email email@example.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
THREE WAYS TO GET INVOLVED THIS MONTH 1. ONLINE Catch up on all the latest news via our weekly bulletin, plus take advantage of our Promo Checker service, exclusively for suppliers, and our online magazine edition. cashandcarrymanagement.co.uk
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[ INDUSTRY NEWS ]
Suppliers show faith in Fairway The Hipperholme-based foodservice group celebrates its 30th anniversary. More than £600,000 worth of orders were placed as part of celebrations to mark the 30th anniversary of Fairway Foodservice. Based in Hipperholme (Halifax), the group, which has an annual turnover of £498 million, also held its biannual ‘Meet the Member‘ event – actually its second this year – which saw 30 new frozen lines listed and 29 ambient products join the own-label range. The show was held at Aston Villa FC’s Villa Park ground and attracted executives from all 18 member wholesalers and 20 suppliers. The black tie dinner took place at the ThinkTank
Museum in Birmingham. The amalgam’s members concluded deals with suppliers from across the UK and Ireland, bringing the total amount spent with manufacturers – just at these shows – to more than £1.3 million. At a commemorative dinner, the group’s chief executive Chris Binge commented: “It was fantastic to mark our anniversary. For our members to complete £600,000 worth of orders shows how successful an event it was. “We’re very proud of the success we’ve shared with members over the last 30 years, and the members’ event and dinner were a great way to celebrate that
partnership. We’re already looking forward to our next ‘Meet the Member’ event in March 2015.” The new own-label lines include a range of sliced
meats, sandwich fillings, ethnic sauces and butter blocks. They bring the total number of in-house products to more than 560. a (01422) 319100
Moving from Asda to Brakes Brakes Group has named Louise Hoste (right) as category & pricing director. She joins the delivered wholesaler from Asda Walmart, where she spent 20 years internationally in the food and non-food sectors, most recently as commercial director, general merchandise. Before moving to the retailer, Hoste was with Thorntons and Northern Foods. Hoste takes over from Adam Martin, who now heads the company’s market intelligence division. Ken McMeikan, Brakes Group CEO, told Cash &
Lee Haynes (left), of Fairway member MJ Baker, of Newton Abbot, Devon, with Bernard Broderick of Dublin-based cake supplier Broderick Brothers.
Carry Management: “Our programme of investment is delivering major benefits to our customers and the business is showing strong growth. “We have an enviable reputation for the range of food we sell and Louise will play a major role in ensuring that we continue to deliver the products our customers want and need to grow their businesses successfully.” a (01233) 206000
Natural and organic products wholesaler The Health Store has chosen BCP (Business Computer Projects) to supply its EPoS systems. Founded as a co-operative in 1932, THS supplies more than 900 independent health food stores in the UK, Ireland, Europe and the Far East with over 10,000 products from its 85,000 sq ft warehouse in Nottingham. The Accord-Momentum suite of retail software offers ‘a proven, feature-rich solution which utilises the latest
technologies, including a lean PoS system and a cloud-based architecture to deliver a flexible, resilient and cost-effective solution for all retail operations’. Paul Rideout, THS sales & marketing director, said: “We believe that the AccordMomentum solution is an ideal fit for our retail customers. It offers all the functionality they require to grow sales and profitability and gain greater control of their business operations.” a 0161-355 3000
[ INDUSTRY NEWS ]
Possible London listing for Bidvest Bidvest Group has appointed Barclays and Investec as advisers for a possible listing of its food businesses on the London Stock Exchange. The UK operations of the Johannesburg-based firm include not just the Bidvest 3663 business, but also Seafood Holdings, Swithenbank Fresh & Fine Foods,
Profit up by £3m for JJ JJ Food Service achieved pre-tax profit of £7.5 million for the year ended 31 March, compared with £4.5 million for the previous 12 months. However, turnover was down from £185.5 million to £182.7 million. While expressing his delight at the 65% rise in profit, managing director Mustafa Kiamil commented on the sales decline: “This is in line with the general market place and reflects our ongoing commitment to pass on savings to our customers.” The Enfield-based wholesaler, which recently said it was expanding its customer base to include gastro pubs restaurants and hotels, is forecasting a 46% rise in profit next year to £11 million. a (0843) 309 0991
3663 Catering Equipment and drinks supplier ViVAS. The announcement was made by the group’s chief financial officer David Cleasby in a video broadcast accompanying the recent presentation of Bidvest’s annual results (Cash & Carry Management last month). a (0370) 3663 000
New food show Over 250 exhibitors will be participating in a major new food event being held next month (18-20 November) at London’s ExCel. Food Matters Live, which is expected to draw more than 10,000 visitors, will focus on topics such as nutrition, developments in food science and brand marketing. Manufacturing, foodservice and retailing are among the sectors being examined at the show, which will include a wide range of seminars. a 020-7297 2402
On the right road Blakemore Logistics has given youngsters an insight into a career in light goods vehicle driving by hosting an LGV driver apprenticeship scheme. In partnership with the Logistics Apprenticeship Training Academy, the wholesaler has provided a
series of work placements. One of the participants in the scheme, 22-year-old Ben Hilton, has gained full-time employment with the Midlands company’s cash & carry/wholesale division after qualifying as an LGV Class 2 driver. a (01902) 366066
Ben Hilton – proud to be a fully-fledged driver.
Wholesaler in Today’s u-turn
Having initially declined to join Today’s Group when it had the chance to do so earlier this year, Romfordbased drinks delivered wholesaler Hills Prospect has had a change of heart. The company, which has an annual turnover of £45 million, was previously one of the leading members of the former on-trade buying group, NDD (National Drinks Distributors). That amalgam became depleted last year after six members, with combined turnover of £79 million, joined Landmark Wholesale before 14 of the 17 remaining affiliates, with sales of almost £200 million, signed up with Today’s. However, four of the six companies originally opting for Landmark changed their mind and went over to Today’s, giving that group 18 of the former NDD members. Hills Prospect, which services the south-east and central London, was one of three wholesalers that at the time were undecided. Today’s Group managing director Bill Laird said: “Following the demise of Waverley TBS in October 2012, there are now very few established routes to market for suppliers and manufacturers. “With our rapidly expanding on-trade membership, we have created a new presence in the on-trade sector.” a (0844) 247 0700 a (01708) 335050
[ INDUSTRY NEWS ]
‘Don’t use those vehicles!’ Traffic commissioner gets tough with North London and Peterborough C&C/wholesaler. Fio’s Cash & Carry, which runs a dual-purpose business in Tottenham, north London, and Peterborough, has been refused permission by traffic commissioners to operate any vehicles over 3.5 tonnes. The company has also been warned about ‘serious problems’ regarding the maintenance of its fleet and the number of hours worked by its drivers. The two directors, Artur Zoga, who heads the Tottenham unit, and Hakan Kocak, who runs the Peterborough depot, have been disqualified from any involvement with transportation for six months, with effect from 26 October. “After that period,” said a spokesman for the traffic commissioners, “they can apply for a traffic licence again. But their history will be taken into consideration. “We do not have the power to stop Fio’s trading, but they cannot do so using
the vehicles involved.” A statement issued early this month on behalf of the traffic commissioner for London and the south-east said the company has been using vehicles which they were ordered not to use in April. When the directors failed to keep a promise at that time that improvements would be made, and continued running transport illegally, traffic commissioner Nick Denton called for a second inquiry. He told the C&C/wholesaler’s directors that he “could not trust the business to get things right in the future”, adding that if the company failed to survive, it would be because of the directors’ “lack of real action”. Both branches have an area of around 48,000 sq ft, the Tottenham unit being housed on a site once occupied by Venus Wines. While the north-London
Work continues at the Tottenham branch.
depot primarily operates as a C&C, with minimal delivered trade, the Peterborough depot derives about 40% of its income from delivered customers, Kocak told Cash & Carry Management. Both specialise in drinks. Tottenham, which serves mainly licensed retailers, also sells some food, while Peterborough does a considerable amount of exporting – licensed products as well as Eastern European food. Reflecting the ruling by the traffic commissioners,
Kocak said: “We were using five vehicles, but now we are operating with just three. “We have been kept waiting for some time by the hire company to obtain improved vehicles.” When asked what Fio’s turnover is or which branch has the greater income, Kocak claimed he did not have this information. He referred Cash & Carry Management to Zoga, who failed to respond to any of our calls. a 020-8801 6282
New name and hq for Bestway acquisition Bestway Group’s £620 million purchase of the Co-op Pharmacy, which came into effect on 4 October, will be followed soon by the announcement of a new Manchester head office for the acquired business, which has more than 770 branches and a staff of 6,500. Under the terms of the deal, the new owner can, if it wishes, operate under the Co-op name for 12 months. It is currently in the process of unveiling a new identity. 08
It is already ‘developing and testing’ new brands for
the pharmacy chain. A statement issued by
Bestway said: “We expect to confirm the new name for the business before the end of the first quarter of 2015.” At this stage there is no hint that any of the branches will be closed or converted into Best-one food outlets. Group chief executive Zameer Choudrey said the group now has an annual turnover of around £3.6 billion and a global workforce of 33,000, with almost 12,000 in the UK. a 020-8453 1234
WN O SH E TB O N N A S C N T O S EN A M E E R S I L T A R E EG V L D A R O S I F TH
[ INDUSTRY NEWS ]
Own-brand and vehicles head sustainability aims Denmark next? Metro Group, which opened its first C&C in Denmark in 1971 and currently has five depots in the country, is believed to be on the verge of exiting that market. It would be the fourth C&C territory vacated by the Dusseldorf-based business in recent years, following Morocco (2010), the UK (2012) and Egypt (this year). Vietnam is likely to be some time next year. That would still leave it with well over 700 outlets in 26 countries.
Profits slide at AW South-west SPAR wholesaler Appleby Westward suffered a 65% spiral in pre-tax profit – down to £378,000 – in 2013, blamed on a loss of £108,000 involving the sale of assets and an ‘exceptional item’ totalling £767,000. Sales rose by 3% to £134 million. The Saltash-based company has undergone major changes recently, including the purchase of an 80% stake by SPAR Group in South Africa of AW’s parent company BWG and the departure of managing director Mark McCammond to join fellow SPAR wholesaler Henderson Group as retail director. His replacement is former Blakemore trading director Mike Boardman. a (01752) 854000 10
Bidvest 3663, which has been closely focused on sustainability since 1995, has published details of the latest areas of improvement until the end of the year and beyond. Its 100 new ‘Euro trucks’ were introduced with the aim of reducing emissions throughout 2014. It is also increasing the number of company cars that are lower emission or hybrid powered. All own-brand products are being supplied in packaging that conforms with the new EU Food Regulations, and the company is also ensuring that more than 50% of the own-brand range meets or exceeds the Government’s 2017 salt targets. A sustainability report issued by the delivered wholesaler says that in conducting research among customers, in both the profit and cost sectors, it was found that 90% who responded claimed that sustainability is
Less salt in the own-brand range.
important to their business. Ongoing activity includes Bidvest 3663’s partnership with Convert2Green, in which customers can arrange for their cooking oil to be collected and turned into biodiesel, which fuels the lorries making deliveries to their outlets. Operators can also ask to find out the carbon saving relating to the oil recycled from their site, in line with ISO 14064-1. Last year, working with 91 customers, this process
saved 2,630 tonnes of carbon emissions. Shirley Duncalf, head of safety and sustainability, said: “Sustainability is very important to foodservice operators, as 24% of our customers said they relied on suppliers to overcome their sustainability issues and more than 300 have enrolled in the Bidvest 3663 Zero scheme. We’re also working hard to make our depots and sites more environmentally efficient.” a (0370) 3663 000
‘Point of difference is key’ SPAR independent retailers can thrive by focusing on their point of difference in the marketplace. That was the key message at Blakemore Trade Partners’ ‘Mission Impossible’ retail show, which was attended by more than 1,000 delegates. Managing director Jerry Marwood (right) told Cash & Carry Management: “We need to win the mission battle with our customers each and every day. That’s why our product range, pricing strategy and format
development is built on consumer insight. “We work on a daily basis in partnership with our retailers, providing the flexibility to build a range and format that is specific to a retailer’s
core customers.” Sales director Neil Mercer commented: “Investing in wholesale and retail prices has been a cornerstone of our strategic planning, further enhanced by tactical initiatives such as the Payday deals promotion, investing a further £500,000 to provide our retailers with best-in market prices to drive footfall and grow basket spend.” Blakemore Trade Partners has set aside £2 million to co-invest in its independent retailer store estate. a (01902) 366 066
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*Nielsen: Total market value MAT to 02.08.14. **Nielsen: Total market value growth 6 weeks to 10.08.13. Grocery Mults value growth 6 weeks to 19.04.14. Terms & Conditions apply. See www.vitaminwater.co.uk/competition. ‘glacéau vitaminwater’ and the ‘glacéau vitaminwater’ get up are trade marks of energy brands, inc. aka glacéau. vitamin c contributes to the reduction of tiredness and fatigue. consume as part of a varied and balanced diet and a healthy lifestyle. Quella® is a registered trade mark of Quella Ltd., Copyright Quella Ltd., all rights reserved.
[ INDUSTRY NEWS ]
Premium coffee concept launched
Greater choice Choice, the Country Bestway/Batleys exclusive cider brand, is now available in two new variants for the off-trade. Dark Fruit is a blend of blueberries, blackcurrants and raspberries, with an abv of 4%. It comes in a four-can multipack (six per outer) with a price-mark of £4.49, giving a POR of 19.88%. Strawberry & Lime (also 4% abv) is available in a single non-price-marked 500ml bottle with an rsp of £1.59. There are eight to an outer, delivering a retail margin of 26.4%. Roopinder Singh Toor, licensed controller for Bestway Wholesale, said: “There is a continuing thirst for fruit-based ciders, which is great news for licensed retailers, both in the on and off-trade.” a 020-8453 1234
Gluten-free JJ Food Service has introduced gluten-free ‘chip style’ crisps, made with sunflower oil. They come in three styles: Julienne (7mm), Super (9mm) and Steak Cut (19mm). a (0843) 309 0991 12
Bidvest 3663 has launched a premium coffee concept, known as Beans and Steam. The full package includes not just the coffee, but also equipment (such as espresso and filter machines), branded cups and point-of-sale material. Beans and Steam is said to provide foodservice operators with a ‘bespoke and flexible way’ to serve the growing coffee market, which is currently worth £6.2 billion. The beans include four special blends, which are sustainably-sourced and slow roasted. They are: medium roast, Fairtrade Brazilian roast, Fairtrade medium roast and dark roast. Roast and ground are
also available. They come in a range of pack sizes, while a decaffeinated coffee is presented in individual pods. The Beans and Steam coffee can be seen in Bidvest 3663 winter exhibitions, which take place in depots until the end of this month. a (0370) 3663 000
Snacks up 2% Consumers worldwide spent $374 billion on snack foods over the past year – a 2% rise – according to a new global report from leading researcher Nielsen. While Europe ($167 billion) and North America ($124 billion) make up the majority of worldwide snacks business, annual sales are growing faster in AsiaPacific (up 4% to $46 billion), Latin America (9% higher at $30 billion) and the Middle East/Africa (up 5% to $7 billion). Susan Dunn, Nielsen’s executive vice president of Global Professional Services, commented: “Demand is driven primarily by taste and health considerations and consumers are not willing to compromise on either.” a (01865) 732374
Three gold awards SPAR UK won 22 prizes, including three golds, at this year’s Wholesale Q awards. The trio of major accolades were for the symbol’s London Gin, Budget Milk Chocolate with Hazelnuts
and New York Cheesecake Slices. The group also took the overall Quality Food Awards wholesaler of the year trophy. a 020-426 3700
Essentially Catering, the own-label range from Bestway Batleys Foodservice, now includes seven new ‘premium’ frozen desserts: Rum & Raisin Chocolate Torte, Espresso Brulée Torte, Blueberry Creme Fraiche Tarte, Caramel Apple Tart, Lemon Tart, Victoria Sponge and Madagascan Vanilla Cheesecake. They come in singles (wholesale selling price £6.99) and outers of four (£27.96) and can be bought from Bestway Batleys Foodservice and Bestway and Batleys C&Cs. a 020-8453 1234
TEAMING UP TO BOOST PROFITS Kepak Convenience Foods, the Hot, Quick & Tasty (HQT) snack and meals specialist is teaming up with Bestway as part of a salesboosting category management project for Cash and Carry Management that will run over three months. The project will also involve a retailer to show that by working together, cash and carry depots, retailers and food manufacturers such as Kepak can generate additional revenue through best practice. During the course of the project, Kepak will demonstrate how stocking the right products and improving product visibility using point of sale, can have a positive impact on repeat purchase and long-term sales, both in depot and at store level. In the first article of the series, we visit the Bestway depot in Gateshead, as Kepak’s Regional Account Manager for the North East, Alison Wright, begins working with the depot’s General Manager, Junaid Arif (both pictured), reviewing the current HQT fixture and looking at how it can be remerchandised to maximise profit potential and give added appeal for retailers. Junaid has worked for Bestway since joining the company in 2001 as part of the graduate training programme. He moved from the Manchester depot to Gateshead in 2008, going from part time cash and carry assistant to deputy manager, and now general manager, since joining the company straight from university.
What is Kepak looking for in a HQT fixture?
Products to be presented at their very best Strong POS Good range of microsnacking products Market-leading products well displayed with emphasis on bestsellers including the Rustlers Quarter Pounder, Rustlers BBQ Rib and Chicken Sandwich
Advice for depots Use POS at the main fixture all year round. Pallet displays off the main fixture should also be used for key promotions Use standees outside the chilled room to drive footfall Make sure core products are readily available and that promotions are well signposted to attract consumer to the fixture
Junaid said: “Our customer base is primarily made up of retail customers, and we currently have around 20,000 active SKUs. Our chiller or ‘provisions room’ as we call it has over 1500 SKUs, with a significant proportion of sales in this area being driven by microwaveable snacks such as those on offer from Kepak. “We work very closely with Kepak, and we’ve always found them to be an extremely helpful supplier, providing a tailored approach to ensure we get the best results from our chiller sales. We have worked with Kepak in the past, giving their range greater prominence and results have been consistently positive.” Angela Daulby, Convenience Channel Director at Kepak Convenience Foods, said: “This project is all about working as a team to get the best results. We’ve worked with Bestway for a number of years, and Junaid and the team at Gateshead have always shown willing when it comes to rejuvenating the fixture and getting the best out of the space to maximise chiller sales. “Hot, Quick and Tasty is a dynamic category and we’re determined to help cash and carries make the most of it. By ensuring product is effectively placed, with eye-catching POS, while at the same time educating retailers about what will have a positive impact onshelf, both depots and retailers will see positive results in the long-term.” Next month, we look at how Kepak remerchandised the Bestway fixture, making positive changes in an effort to bolster sales and create greater impact.
01772 688 300
[ INDUSTRY NEWS ]
Booker Group boosted by 16% increase in pre-tax profits SPAR customers receive record service levels SPAR’s service levels are currently running at 98.7%, with all five wholesalers recording an average of 97.5% deliveries arriving on time. The symbol group attributed the ‘record’ success to its streamlined consolidation centre system, and cited its partnership with distribution company Oakland International as helping to deliver “exceptional growth”. SPAR also credited the “huge effort and support” from its five wholesalers to ensure better efficiency, reduced wastage through increased shelf life at point of delivery, and timely distribution in the supply chain. Debbie Robinson, managing director of SPAR UK, commented: “Our service levels make SPAR one of the nation’s strongest convenience supply chains. “We are very proud of our efficient, distribution system, and this winter we look forward to giving our retailers the best possible service, no matter what the weather conditions may be.” SPAR has over 380 lorries delivering to more than 2,400 stores six days a week. a 020-8426 3700.
Booker Group has announced that like-for-like sales increased by 2.4% for the half year to 12 September 2014, with a 16% rise in pre-tax profits (£67.4 million) falling in line with its commitment to “focus, drive and broaden the business”. Chief executive Charles Wilson, who also reported that total sales rose by 1.9% to £2.3 billion, attributed this growth to the contribution of its Makro acquisition, with “improved cash management and operational efficiency” helping to boost sales and customer satisfaction rates during the period. In a statement, Booker said: “The group’s trading in the first four weeks of the current half year is ahead of the same period last year.” Managing director Guy Farrant added that more than 90% of the company’s branded suppliers were experiencing double-digit growth with the business,
while own-label brands Chef’s Larder and Chef’s Essentials generated £124 million and £55 million in half-year sales, up by 26% and 33% respectively. To build on a £800 million increase in delivered sales to £1.4 billion since 2008, Booker unveiled plans to increase its capacity by 80% over the next two years by reducing vehicle types from 20 to three, increasing its fleet size and operating longer hours. According to director of delivery Barry Richardson,
this investment is forecasted to enlarge case capacity from £100 million to £179 million. Elsewhere, Wilson stated that at the four locations where Booker and Makro have been integrated, the outlets were “performing well”, and he confirmed that Park Royal and Charlton were set to undergo similar makeovers in the next six months. Two more will receive the same treatment, but Wilson refused to disclose where they are. a (01933) 371000
BOOKER GROUP IN NUMBERS Net cash: £107.2 million Operating profit: £68.1 million (+15%) Non-tobacco sales growth: 3.4% Tobacco sales growth: 0.6% Premier stores sales growth: 14% Internet half-year sales: £413 million (+12%) Booker Group anticipates that it is on course to meet expectations for the fiscal year ending 27 March 2015.
Philip Morris fights illicit tobacco Philip Morris Ltd (PML) has launched an educational programme for independent retailers in Manchester to help clamp down on illegal tobacco and illicit whites. HM Revenue & Customs estimates that nationwide illegal tobacco costs the taxpayer £2 billion a year and PML has announced that its national field force will meet 250 retailers to drive awareness of illicit tobacco and the effect it has on legitimate businesses. The educational initiative responds to findings from Will O’Reilly, a former
Scotland Yard detective chief inspector, who purchased 32 separate illicit tobacco products in Manchester during a three-day test purchase activity – more than in any other location this year to date.
An Empty Discarded Pack Collection survey by MSIntelligence showed that Manchester had a ‘non domestic’ rate of 18.7% in Q2, 2013, which rose to 26.8% in Q2, 2014. As a result, over a quarter of cigarettes smoked in the North West are illicit. Supported by HM Revenue & Customs’ Hotline and Crimestoppers, PML’s campaign is designed to champion retailers as responsible sellers and help reduce revenue loss and store closures. a 020-7076 6000
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[ IN FOCUS ]
The Best-way to revolutionise the retail experience Lauded by many as pioneers of digital innovation in the wholesale channel, Bestway hopes to redefine the customer experience with its new mobile app. Michael Catling reports. he importance of embracing new technology was perhaps best summed up by the Maginus white paper, Wholesale in an Online World, which urged wholesalers to respond to the lucrative nature of the B2B e-commerce market. E-commerce now accounts for 21% of UK retail sales, according to IMRG, with B2B e-commerce growing at three times the rate of B2C e-commerce. The wholesale channel has long been criticised for being slow to implement new technology, but the success of Bestway Wholesale’s app looks set to herald a new era for the sector. Since unveiling its new app last month, Bestway has received ringing endorsements from the IGD, Burton’s Biscuit Company and GoKart for offering added convenience and changing customer purchasing patterns. Barely a week after its release onto the Apple iTunes store, Bestway’s free app entered the top 10 chart for business downloads and amassed 540 downloads in a single day. Citing the “phenomenal” capabilities offered by its partners RNF Digital Innovation, Jamil Mohammed (pictured),
e-commerce manager at Bestway Wholesale, believes that “Bestway Batleys will lead the way in the wholesale sector with web and mobile development” over the next two years. He commented: “Desktop usage is declining rapidly at the moment and our analytics showed that 80/90% of emails were being opened on a mobile device or tablet. “There is a shifting trend towards mobile technology and our app has already been downloaded over 2,500 times. But we are always trying to perfect our services and a new iOS8 version which integrates location-based services and i-beacon technology is set to be unveiled imminently.” Mohammed’s proclamation that “no other wholesaler can match Bestway’s personalised services” demonstrates the competitive advantage the group currently enjoys. With further digital investment planned, funded by a £702,000 grant, Bestway will be hoping to replicate the success of its two transactional websites, which are currently experiencing double-digit sales growth. “From the outset, our mission was to bring to market a mobile app which coupled greater
CUSTOMER REVIEW “There were a few hiccups at first but Bestway is constantly updating the app now and I would recommend it to everybody. I can place an order instantly and if the item is out of stock, it informs you automatically about next delivery times. You can also scan product barcodes to find out an updated recommend retail price, which is a great feature. I haven’t come across another app like it and I really can’t fault it.” Jarnail Sandhu, director/owner of The Paper Shop, Rugby
functionality with simplicity and that is exactly what we have achieved,” said Mohammed. “I believe we have now developed one of the best apps in the wholesale sector which sets a foundation on which to build future technologies.” Why should customers download the app? Marketed as helping to revolutionise the shopping experience, the app provides a wealth of features, including detailed product insight, promotions and daily price updates on up to 20,000 lines. Customers can also access previous order history and a barcode scanner to increase order efficiency, and book and plot the route of deliveries. As one reviewer said, “it definitely speeds up CCM the ordering process”.
Record sales mark 30th anniversary Bestway’s Abbey Road depot in Park Royal, London, celebrated its 30th anniversary last month with a special trade day. The event attracted impulse and alcohol suppliers, with promotions, giveaways and competitions all adding to the atmosphere. The Abbey Road warehouse is a top five performing depot in the Bestway Batleys estate and the trade day broke the record for a single day’s takings in the branch this year, with sales exceeding £1.2 million.
[ LEGAL ADVICE ]
Packaging regulations: the implications of ignorance Meet the legal expert Lizzie Bayley, Legal Edge Lizzie Bayley is an in-house counsel and waste specialist
e have all heard the phrase ‘reduce reuse recycle’. Did you know that the cost to businesses of ignoring their packaging waste obligations is escalating? In just six months between August 2013 and January 2014, more than £1 million was donated to charity by just 20 companies at the request of the Environmental Agency so that they could escape prosecution. What those businesses all had in common was that they were ignorant of their obligations under regulations introduced in 2007 (Producer Responsibility Obligations (Packaging Waste) Regulations 2007). Not the most exciting subject, but an important one, as the regulations define how UK packaging producers and suppliers must reduce, recover and recycle certain levels of packaging and packaging waste. The aim is to divert material from landfill (an obvious environmental benefit) and also to help the UK meet
its targets under the Europe-wide Packaging Waste Directive. To find out if the regulations apply to you, answer the questions in the box below. Next steps If the answer to all three questions is yes, then the regulations apply to you and your supply chain. So you need to take action. Your business must: register its recovery and recycling obligations either directly with the Environment Agency or through a compliance scheme. work out, using the formula specified in the regulations, what your recovery and recycling obligations are. recover and recycle the tonnage specified. provide a certificate of compliance to confirm it has been done.
• • • •
Keep in mind that you must register every year that the regulations apply to your business. If in one year you fall below the tonnage threshold then you will not need to register. It is also worth considering that, even if your turnover falls below the threshold, you should still be mindful of what you do with your packaging. The regulation thresholds are reviewable and may be reduced. Smaller businesses should try to reduce and re-use their packaging as much as possible in any event. It makes good business sense to adopt sustainable practices that will enhance your reputation and ultimately save money. Ignorance is no excuse The Environmental Agency will prosecute in all cases of non-compliance – even if a company was unaware of its obligations. Fines can be as high as CCM £250,000!
Legal Edge is a group of highly experienced consultant lawyers who work inside companies to manage business risk, protect assets, improve revenue recognition and ensure compliance. If you need more information about your obligations, contact Lizzie Bayley at firstname.lastname@example.org.
Do the packaging waste regulations apply to you? To find out if the packaging waste regulations apply to you, answer these questions: 1. Does your business do one or more of the following? convert raw material into packaging. put goods into packaging or put packaging around goods. import packaged goods or packaging material from outside the UK (including raw materials used to
• • •
manufacture packaging). manufacture raw material for packaging. supply packaging to end users. supply packaging through hiring it or lending it out.
• • •
As wholesalers, it is a given that you will be answering yes to this question because you either supply, import or manufacture packaged products and create waste – everything from biscuits
to bleach. The packaging is an inherent part of the supply chain from manufacturer to retailer and on to consumers! 2. Does your company or group of companies handle 50 tonnes of packaging or packaging waste each year? 3. Do you have a turnover of more than £2 million per annum?
MAKE 20 DRINKS ANYWHERE Robinsons, the no.1 Squash* range, brings you SqUASH’D a genuinely new offering to capture shoppers interest! SqUASH’D is a super concentrated liquid which is added to water. Available in 66ml bottles, measuring just 7cm tall and containing 20 serves, SqUASH’D is ideal for the pocket or handbag to enhance water on-the go and available in three flavours: Summer Fruits, Orange & Peach and Apple & Blackcurrant
Highlight SqUASH’D as a new product to create excitement and make it easy to find by displaying next to the Squash fixture in depot
Use additional SqUASH’D displays in high traffic locations to disrupt your customers and encourage impulse purchase
Provide advice to your customers about the best places to position SqUASH’D in-store to maximise sales – at till point, in the chiller and at the take-home fixture
* AC Nielsen Total Coverage MAT to 2.8.14 BRV89868_14
To maximise your sales - maximise visibility!
[ ACHIEVERS ]
First round results
Here are the suppliers in contention for the Achievers ‘Best Overall Service’ award.
SCORE (max. 50)
Whyte & Mackay
Nestlé 1st Choice
Lucozade Ribena Suntory
Britvic Soft Drinks
[ ACHIEVERS ]
Service under scrutiny How did these suppliers do in September? Wholesalers in Scotland are asked to score them. SEPTEMBER 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
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
Pernod Ricard Premier Foods
Red Bull Tayto
Tunnock’s Unilever United Biscuits
Whyte & Mackay
Contact name & company ...........................................................................
Please email your completed form to: email@example.com or fax to 01334 479695
[ SPOTLIGHT ]
Rishi Lakhani, managing director of Barking-based Millennium Group enough to fight through it and now have a £100 million-plus turnover business. If you were able to retire tomorrow, would you? I don’t think I could ever retire! I thrive on the buzz every day that this type of trade brings. I could not imagine a day without people to see, the phone going incessantly and a constant stream of emails. I would be lost without the excitement of chasing the next deal or pushing to build the business further. What advice would you give someone starting his/her first job? Don’t give up! Keep trying! Most of all, don’t be shy. Contact and meet people: networking is a must.
Thriving on the business buzz What has been the major milestone or turning point of your career? I was hoping it would be the Olympics, which I believed would benefit our trade. However, it was the opening of our Thurrock RDC that really changed our business and took us from a small family concern to the company that now trades on a worldwide basis. Who has been the biggest inspiration to you? I guess my parents. I grew up watching them work so hard to expand the family business, and as soon as I was old enough, I wanted to be involved rather than be at school. How do you maintain a work/life balance and how have developments in technology affected this? Sometimes I wish the smartphone was never invented – it is a great tool but it makes you very unsociable. Take a look for yourself next time you are in a restaurant: most people are glued to their phones. I worry for the coming generations. I hope they experience life 22
the way we have by communicating face to face and not just via gadgets and social media. What most frustrates you in business and in life generally? In the past few years, while the company has been growing at 20% year on year, it has been very difficult to get support from banks because of the financial crisis. I feel that so many SMEs have been affected due to the lack of available finance. We have been lucky
What type of business would you go into if it wasn’t C&C/wholesale? I always seem to have ideas for business. I have always wanted to open a chain of coffee shops. Location would be the key to its success. If you had a million pounds to invest, how would you spend the money? With the experience and contacts I have now, I would want to launch brands, from water to wine. I would carry out research and go to a bank with a business plan of five brands, leverage that £1 million and borrow at least another £2 million. I would then have the funds to run a strong marketing campaign supplemented by the best sales staff I CCM could assemble.
‘Natural evolution’ to managing director In 1999, the year Millennium moved to its current head office in Barking, the cash & carry was just a large empty shell. As the stock began to roll in, regular customers and suppliers alike were welcomed by 16-year-old Rishi Lakhani who had, for a number of years already, been helping his parents in their family business. Customers would find him serving at
the till, while suppliers would find themselves being negotiated down on price by the same 16 year-old. It has been a natural evolution to his present position of managing director, with him picking up the Asian Achievers Young Entrepreneur of the Year award along the way in 2009. However, he is not too proud to pick up a brush and sweep the floor if the need arises!
[ EMPLOYMENT LAW ]
Changes to holiday pay likely to lead to tribunal claims Meet the HR expert Cate Ritchie, 121 HR Solutions Cate Ritchie is a fellow of the Chartered Institute of Personnel and Development
wo recent employment tribunal decisions may create headaches and a steep bill for employers. In the two cases, the tribunal held that a worker’s holiday pay should not only be calculated on the basis of their basic salary, but should also include any other element of remuneration that is “intrinsically linked” to the tasks required under the worker’s contract, including overtime (even where overtime was neither guaranteed nor compulsory), commission, bonus, shift premiums and other forms of “additional pay”. The idea is that holiday pay should represent what workers would have received had they been at work – so if they regularly carry out overtime or receive unsocial hours’ premiums and commissions, those additional payments need to be factored in.
What should employers do now? Before employers panic, it is worth noting that the decisions are being appealed by the employers concerned and may ultimately go to the Supreme Court. However, it seems likely that the substance of the decision will be upheld. As a result, businesses may want to focus their immediate attention on: preparing for the possibility of claims by employees. assessing their likely liability if claims are brought. putting themselves in a position to
• • •
‘Not only does this potentially increase the costs of holiday pay considerably, but it also exposes employers to the risk of claims’ This could have major implications for employers in industries where paid overtime is the norm – such as retail and leisure. Not only does this potentially increase the costs of holiday pay considerably, but it also exposes employers to the risk of claims for unlawful deductions from wages. Many businesses are now reviewing their holiday pay arrangements. One high-profile example is John Lewis, which is currently paying out a total of £40 million to staff in backdated payments – although it is not confirmed if this was prompted by the case law.
implement changes if they need to. It seems fairly likely that the cases – and the publicity over the John Lewis payments – will prompt claims. Businesses can hope that the introduction of fees in the employment tribunal will discourage individual claimants, particularly where small sums are in issue. However, the fees per person are lower for multi-party claims, which may lead employees to band together to bring claims. We also expect trade unions to encourage members to bring claims. Businesses should start by looking at their payroll, overtime and holiday
records and determining how accurate these are – particularly historical records. Evaluate if you believe there are elements of pay which have not been included up until now, such as shift premiums and compulsory overtime. Putting together this information now may mean that you will be in a position to calculate what may be owed to each worker who would be able to make a claim. Bear in mind that the decision affects holiday pay for only the four weeks’ annual leave guaranteed under EU law (20 days). The additional 1.6 weeks granted in UK law need not include any overtime and can be calculated simply on basic salary. While employers should tread carefully and seek specialist advice on the issue, one piece of good news is that the liability is not open-ended. In most cases, tribunal claims must be brought within three months of the most recent underpayment. This means that if holiday pay is calculated from now, based on average earnings, the workforce only has three months from now to bring a claim. What this means is that you should: investigate whether or not existing payroll systems could cope with the more complex calculations that may be required to work out “average pay”. consider whether it may be simpler – and not significantly more costly – to calculate all holiday pay at the enhanced rate, rather than just the four weeks’ leave. consider what, if any, overtime arrangements should be offered to new CCM joiners.
121 HR Solutions provides employers of all sizes with professional, cost-effective human resource support. If you need further guidance about holiday pay, or if you wish to talk to Cate about any other HR issue, contact her at firstname.lastname@example.org or phone (0792) 121 3890.
[ PRODUCTS & PROMOTIONS ]
Butterkist meets the rising trade demand for price-marked packs PRODUCT OF THE MONTH
TANGERINE CONFECTIONERY – The UK’s number one popcorn brand, Butterkist, is now available in a wider range of price-marked packs. Joining the existing PMP sharing portfolio of Toffee (100g) and Cinema Sweet (85g), are Sweet & Salted (85g) and Salted (65g) variants. Both these packs have been launched with a £1 flash. The company has also introduced a range of single-serve 55p PMPs in Toffee (50g), Sweet & Salted (27g), and Sea Salt & Balsamic Vinegar (15g) variants. Helena Blincow, brand manager, told Cash & Carry Management: “The extension of our range allows us to provide our customers with more choice aligned to their sector requirements. The addition of the new sharing bags
will allow us to cater to the growing trend for night-in treats, while the new single-serve packs are perfect for the fast growing area of snacking on-thego. “The Toffee (100g) and the Cinema
Sweet (85g) variants in this range will also feature our 100 birthday on-pack promotion, which gives consumers the chance to win thousands of instant cash prizes, making them an even more desirable purchase.” To mark the milestone anniversary, special golden birthday cards are being hidden inside selected promotional bags of Butterkist. If consumers find a birthday card, all they have to do is enter the code inside the card online at www.butterkist.co.uk to redeem their cash prize. Prizes range in value from £5 to £100, and Butterkist is also offering everyone that buys a promotional pack of popcorn 50p off their next Butterkist purchase. The Butterkist brand is valued at almost £32 million and is growing by 23% (Nielsen). a 020-3727 2420
Best of both
ARYZTA FOOD SOLUTIONS – Cuisine de France has unveiled a major redevelopment of its range, backed by a commitment to providing customers with best-in-category quality, choice, merchandising and in-store training. The initiative, which is supported by merchandising and PoS material, features recipe improvements to its ‘hero range’ and new Artisan-themed product names to promote a boulangerie feel in-store. A packaging redesign has also been introduced to reinforce the brand’s quality cues of ‘fresh baking’. a 020-8332 1188
FLETCHERS GROUP OF BAKERIES – Kara’s Foodservice Half & Half bread has been launched into the out-ofhome market. The introduction of the half-white, half-brown bread provides the foodservice industry with its first major branded 50:50 bread that has the taste and texture of a white sliced loaf and the nutritional benefits of wholewheat. The new product responds to a 20% increase in retail market demand for 50:50-style bread by young adults, and 30% growth in demand by young families (Dunhumby). a 0114-234 8171
OCEAN SPRAY – Cranberry Apple Sauce joins the existing Whole Cranberry and Smooth Cranberry sauces from Ocean Spray. Tara Levine, managing director, says: “Being a farmer-owned co-operative we can ensure the pick of the crop makes it into our products and we are proud to bring our cranberry expertise to innovative new products.” Ocean Spray Cranberry Apple Sauce is available in 250g jars. The Ocean Spray core range will be supported by a £1 offer during the festive season. a 0161-946 0535
[ PRODUCTS & PROMOTIONS ]
MONDELEZ INTERNATIONAL – Philadelphia Duo Cremoso is a new soft white cheese with a dual texture. It features Philadelphia with a ‘delicate whipped core’ of Garlic and Fine Herbs, Vine Ripened Tomatoes, or Cracked Peppercorn flavours. The product is paper-wrapped, ready to lift out and serve on its own or with crackers. Philadelphia is the UK’s number one soft white cheese brand (Nielsen). The launch is supported by a £2.5 million marketing investment, including TV, in-store and digital activity. a (08702) 400861
MAST-JAEGERMEISTER – For the first time, Jägermeister, the UK’s number one speciality spirit (CGA), is available in price-marked bottles. Available in convenience stores and wholesale channels, the price-marked format will apply to 50cl, 35cl and 20cl bottles at £14.99, £9.99 and £5.99 respectively. The price-marked bottles also tap into the demand for fractional bottle sizes which are seeing double-digit growth, with 35cl formats now accounting for one-fifth of all spirits spends in convenience (ACN). a 0203-1899 500
PHILIP MORRIS – The tobacco company has released its first roll-your-own product for the UK market. Marlboro Gold Original rolling tobacco is presented in a pouch that is triple layered for freshness, with gummed rolling papers included. Marketing director Zoe Smith comments: “The rolling tobacco market has grown in both volume and value to be worth almost £2 billion a year (Nielsen), so the launch is well timed. “Last year almost half of all adult smokers stated a preference for rollyour-own products (GCTS).” a 020-7076 6000
FREIXENET – The UK’s leading sparkling wine brand is reinvigorating its Cordon range with a redesign that is unveiled with the Cordon Negro bottle. The new look will also feature across the rest of the portfolio, with the Cordon Rosado pack appearing in store in November, followed by Cordon Oro. Liza Madrigal, head of marketing, says: “By stocking the newly designed bottle from a brand that consumers trust, retailers have the opportunity to leverage this iconic black bottle to signpost the sparkling wine category in store.” The sparkling wine category is the fastest growing in the beers, wines & spirits sector in both the on-trade and off-trade, and the only one in doubledigit growth.
BACARDI BROWN-FORMAN BRANDS – Fire Eater is a blend of Early Times American whiskey and hot-cinnamon liqueur that is now available to managed convenience, wholesalers and independent retailers across the UK. The brand is backed by a £1.5 million integrated marketing campaign including social media, digital communications and experiential sampling. Fire Eater (rsp £18.99) is supported in the offtrade with PoS material and branded neck collars. Joanna Austin, marketing manager, says: “With young adult consumers increasingly seeking new flavours and exciting drinking experiences, we have seen a surge in the popularity of flavoured spirits and growth in the shot segment.” a (01962) 762100
All data: Nielsen. a
Festive gifting UNILEVER – Lynx is the UK’s top male grooming brand at Christmas, with sales up by 9.3% last year (Nielsen). New male gift sets for 2014 include Lynx Peace and Lynx Gold Temptation – the brand’s most recently launched fragrance. The Peace Washbag Gift Set contains shower gel, body spray and a hair cream tin. For ladies, there is a new Lynx Attract for Her wash bag, which includes a deodorant body spray, shower gel and a shower puff. Unilever has a leading 27.8% share of the Christmas toiletries gifting market (SIG). a (01372) 945000
[ CONFECTIONERY ] Did you know? Chocolate represents 76.1% of the total UK confectionery market and is growing at 2.1% (Nielsen).
Confectionery conundrum Forecasted to grow by 11.9% over the next four years (Key Note), the confectionery market continues to thrive, despite several healthy eating campaigns, as consumers refuse to stay away from sweet treats. Michael Catling reports. he UK confectionery market, excluding gum, is worth more than £4.8 billion, a study by Nielsen has revealed, with value sales growing by 1.6% since the turn of the year. Mondelez International, the UK’s leading confectionery manufacturer, holds the number one position globally in the chocolate, biscuit and candy market and currently contributes £111 million to the UK sugar bags sector, up 3.8%. This growth can be attributed to “heavy NPD investment and innovation”, according to Susan Nash, trade communication manager. She says: “Wholesalers should take advantage of the innovation in the marketplace, especially from the market leaders who invest in research, development, technology and marketing to shape the next generation of innovation.” Earlier this summer, Mondelez International expanded its £50 million Cadbury Dairy Milk Marvellous Creations sub-brand by introducing a Banana Caramel Crisp variant and Marvellous Mix Ups. The Marvellous Creations range has generated 49% incremental
sales since being launched in April last year (Kantar), and the brand achieved £20 million sales in its first 12 weeks alone (Nielsen). Marvellous Mix Ups, which has an rsp of £2.13, is designed to reinforce Mondelez International’s status as the market leader within the £3.65 million UK chocolate confectionery market and combines Cadbury Buttons, the number one kids’ confectionery brand, with Oreo biscuits or Maynards sweets. Mondelez International has also expanded its co-branded Cadbury range by launching Dairy Milk Oreo in a single format. The 41g countline (rsp 61p) aims to take advantage of the growth in on-the-go snacking and builds on the success of the tablet format, which is now worth £19.4 million (Kantar). Marketing activation director Matthew Williams says: “This is a great opportunity for retailers to take advantage of two power brands and drive incremental sales. “With a high-profile media investment for co-branded products running throughout 2014, retailers should stock up to make the most of increased awareness.” All data unless otherwise stated: Nielsen.
CHOOSE MAKE LIVES BETTER 5p donation from every pack*
• Celebrities Mollie King, Alesha Dixon and Victoria Pendleton have designed special-edition packs for Galaxy® in support of the charity (RED)™* • Huge £2.5m media spend in support of this high-profile campaign • High sales expected as block is the growth driver in the chocolate category
MAKE SURE YOU STOCK UP! *For every (GALAXY®)RED pack sold, 5p will go to the Global Fund to ﬁght AIDS. Galaxy® is a Proud Partner of (PRODUCT)REDTM. Galaxy® Smooth Milk, Galaxy® Honeycomb Crisp and Galaxy® Cookie Crumble are registered trademarks. ©Mars 2014.
[ CONFECTIONERY ] Mondelez top tips 1. Liaise with suppliers and provide educational material in-depot to help retailers understand their shoppers’ mission and capitalise on each seasonal opportunity. 2. Advise retailers about spending strategy. Some retailers opt for products with the highest profit margins, without considering popularity and trends. 3. Offer added choice by stocking both price-marked and non-price-marked packs. 4. Ensure NPD and promotional products are stocked in advance of consumer media exposure to meet demand and maximise the opportunity. 5. Availability is key – keep fixtures clear and easy to navigate to facilitate category growth.
Golden moments Ferrero, the fastest growing company in total confectionery, has invested £6 million in three multi-media campaigns across its Ferrero Rocher, Ferrero Collection and Raffaello brands – its biggest support plan to date. Responding to consumer demand for a premium tier of boxed chocolate assortments, Ferrero has introduced a new variety range, Ferrero Golden Gallery, to coincide with the Christmas gifting season. Christmas accounts for 39% of confectionery sales (Nielsen), and Ferrero Golden Gallery aims to increase purchasing rates by offering consumers a choice between 22-pack (rsp £7.99) or 45-pack (rsp £14.99) formats. Elsewhere, Ferrero Rocher has launched a new creative designed to drive awareness and trial by reinforcing its taste credentials, modernity and relevance. The campaign, which features the tagline ‘Make Your Moments Golden’, is supported by cinema advertising, video on demand, digital, press, sampling and in-store media. Meanwhile, Raffaello will receive its first-ever standalone campaign this November, as Ferrero looks to boost the brand’s 59.6% value sales growth.
Table data: Nielsen (6/9/2014)
Top 10 total chocolate value sales (MAT this year) 1
Cadbury Dairy Milk (£538.423 million)
Galaxy (£205.862 million)
Maltesers (£180.199 million)
Kit Kat (£99.019 million)
Mars (£96.769 million)
Quality Street (£87.340 million)
Cadbury Twirl (£79.870 million)
Lindt Lindor (£79.238 million)
Celebrations (£76.535 million)
Snickers (£74.291 million)
“Last Christmas was another golden success for Ferrero, with sales at their best ever at 9.3% value growth” – Levi Boorer, customer development director.
Supported by sampling, outdoor and digital activity, the promotion aims to position Raffaello as an everyday premium treat, rather than an occasions-based gift. To coincide with the campaign, Raffaello will be extending its range with a versatile 150g box format and two new seasonal products – Ferrero Rocher Star Tree Decoration and Raffaello Star Tree Decoration (rsp £1.99). Levi Boorer, customer development director, comments: “Last Christmas was another golden success for Ferrero, with sales at their best ever at 9.3% value growth in a relatively flat market. “Improved shopper outlook led to consumers trading up on the little things, with 32% looking for something new and different (YouGov). “In 2013, 47% of consumers planned to buy chocolate gifts for Christmas and this is set to increase this year, as confidence continues to rise.” Boorer urges retailers to maximise incremental opportunities by using premium gold foil PoS material and stocking new seasonal SKUs and top sellers. He adds: “Retailers who have used our displays during seasonal events have generated uplifts of up to +128% (Ferrero independent research).” To conclude its Christmas activity, Ferrero has launched its biggest ever Tic Tac campaign to drive relevancy and frequency amongst its core target group – 16 to 34 year-olds. Pocket confectionery remains an important impulse sales opportunity for retailers and is worth £355 million in the UK market. To help surpass £24 million annual sales, Tic Tac is rewarding every consumer who purchases a Tic Tac product with £5 or £5 off a minimum spend with selected partners. The promotion, which runs until 26 December, is supported by a £1.7 million media package and a shopper marketing programme, which will revitalise the brand in-store and be tailored for different store types and sizes. “Video on demand, mobile, digital and social media all form vital platforms for our Find a Fiver campaign,” says Boorer. “By extending our advertising to include video on demand, we can access a different group of consumers and open the category to a wider range of shoppers.” All data unless otherwise stated: Nielsen.
[ CONFECTIONERY ] Season of goodwill Mars Chocolate UK has unveiled three special-edition Galaxy packs, inspired by celebrity ambassadors Mollie King, Alesha Dixon and Victoria Pendleton, to help drive awareness of its new partnership with HIV charity (RED). The 114g packs, which include Smooth Milk, Honeycomb Crisp and Cookie Crumble flavours, are designed to raise money for the Global Fund to help prevent the transmission of AIDS from mothers to their babies in Africa. Mars aims to generate £750,000 for the Global Fund by donating 5p per purchase of all special-edition and Galaxy (RED) flash-marked packs, including Bubbles 100g, Caramel 135g/204g, Galaxy 390g, Smooth Milk (More To Share) 200g and Nut Crunch 120g. The ‘Make Lives Better’ initiative is supported by a marketing campaign featuring online video advertising and outdoor posters, as well as social media activity showcasing the celebrities’ experiences when they visited Africa to meet AIDS activists.
Mars aims to generate £750,000 for the Global Fund by donating 5p per purchase of all special-edition and (RED) flash-marked packs Mars will also be providing retailers with PoS material to maximise the collaboration, including wobblers and freestanding display units featuring the celebrities. Across its product portfolio, Mars has released three limited-edition 48g variants of Snickers Bars – the UK’s second largest bar brand (Kantar). Snickers More Choc, which has a recommended wholesale price of £7.85 for a 24-count case, is a brand new addition for 2014, while Snickers More Nuts replaces the original bar for a limited time only and is available in 48-count cases (£15.71). Snickers More Caramel returns to complete the range and replicates the same price and case format as the More Choc variant.
A nation of chocoholics One in six Brits, equating to an estimated eight million consumers, eat chocolate every day, with 17% doing so four to six times a week (Mintel). Almost a quarter (22%) of young consumers, aged 25 to 34, eat chocolate every day (compared to 16% on average), while only one in 20 Brits surveyed claimed that they abstain from eating any chocolate-based product. Richard Ford, senior food and drink analyst at Mintel, comments: “Chocolate’s status as a personal treat remains an ingrained part of consumers’ diets, despite the recent focus on the role of foods high in fat and sugar in the nation’s weight gain.” Plain milk chocolate retains its status as the nation’s favourite block and is consumed by nearly three-quarters (73%) of chocolate eaters in the UK. Figures show that filled and flavoured chocolate has grown in popularity and is now eaten by an estimated 49% and 47% of consumers respectively. Meanwhile, dark and white chocolate remains a relatively niche choice, consumed by fewer than two in five shoppers (37% and 30% respectively). Nevertheless, dark chocolate is deemed healthier than milk or white alternatives by 57% of users in the UK. In terms of demographics, Londoners are significantly more likely to consume chocolate every day, with up to 26% of consumers indulging in treats compared to 12% of those living in the South East and East Anglia and 17% in the North and Scotland. Mintel data shows that there has been 120% growth in the number of new chocolate products launched carrying an ethical claim, such as Fairtrade certification, between 2012 and 2013. Overall, out of all new chocolate products released, the share of launches carrying ethical claims rose to 17% in 2013 from just 4% in 2010.
All three additions are supported by a £3 million media campaign, which incorporates a new TV advert to drive its in-store campaign, ‘Who Are You When You’re Hungry?’. Tony Lorman, retail excellence director at Mars, told Cash & Carry Management: “This is the first time we are launching three limitededition bars together. We know that shoppers are particularly attracted to NPD and, with added support from a new advertising campaign, there is a big opportunity for retailers to use in-store displays to drive consumer excitement. “Last year, we found that Snickers More Caramel drove additional penetration to the total brand (IRI) and we’re sure it will drive new customers in-store to try the range.”
[ CONFECTIONERY ] Toffee under the hammer
‘Unique concept’ The Kit Kat brand, which is worth £184 million in the UK (IRI), has been expanded with the introduction of Kit Kat Chunky Double Caramel – the “most significant launch for the Chunky format in 15 years”, according to Nestlé Confectionery. The bar, which Nestlé is marketing as a “unique concept”, contains two portionable halves – each encompassing a contrasting texture of caramel. One half features smooth runny caramel inside, whilst the other has a crunchy caramel filling. Nestlé UK & Ireland spokesperson James Maxton says: “Consumer research has shown that 71% of consumers would either probably or definitely buy Double Caramel compared to the typical new product propensity to buy of 54%.” The new addition, which is targeted at 25 to 35-year-olds, has an rsp of 58p and is supported by a viral film and a digital and social media campaign, which is forecasted to reach 23 million people. Maxton adds: “Kit Kat has over one million fans on Facebook who will be keen to try this major new launch for themselves. “Retailers should therefore expect a high level of trial, and in order to capitalise, stores should stock up now and create as high impact off-shelf displays as possible so that shoppers cannot miss them.”
The sugar bags category has contributed more than £563 million to the total confectionery market (Nielsen), with Walker’s Nonsuch increasing the number of its toffee gift lines by over 30% in the last year. To continue this trend, the family toffee maker has launched a Toffee Twin pack to correspond with the growth of the impulse channel. The packs, which contain a miniature hammer to break the two bars in half, are sold in 12 x 200g case sizes and are now made using sustainable palm oil following “consumer and buyer concerns”. Emma Walker, export and marketing director, adds: “With a retail price point from just £2, Toffee Twin packs are a perfect impulse buy for gifting or a treat for yourself.” The development comes just months after Walker’s Nonsuch gained a Grade A certification in its latest British Retail Consortium audit.
Top five trends driving the chocolate confectionery market Marcia Mogelonsky, director of insight, food and drink at Mintel, examines the most innovative chocolate combinations that are taking the confectionery market by storm. 1. Fruits with a twist We have already seen a wide range of fruit – including orange, strawberry and cherry – added to chocolate, but there has been a recent shift in more unusual and citrusbased produce being integrated. Peach, for example, is becoming increasingly common, while the number of chocolate products flavoured with lemon has doubled over the past year globally. We are even seeing more elaborate variations such as products with lemon, yogurt and pepper, or with lemon oil. 2. Sensory surprises Chocolate used to be an ingredient in desserts, but now desserts have become an ‘ingredient’ in chocolate confectionery. From creme brulee to crepes and tiramisu, desserts are becoming flavours. Beyond baked desserts, we are seeing floral, milkshake and ice cream-flavoured chocolate being introduced.
3. Textural differences Certain grains, nuts and seeds have been used by chocolate manufacturers for a while, but we are now noticing a growth in a number of other blends and ingredients. Although hazelnut remains the top nut ingredient in chocolate, followed by almond and peanut, pistachio has grown in popularity this year. Likewise, granola, muesli and quinoa are also being included to provide added texture and a contrast from mainstream cereal alternatives. 4. Sourcing rare cocoa We are used to seeing ‘sourced’ chocolate labelling onpacks, but we are now noticing this trend even more, suggesting a growing interest in carefully-crafted products. There is also considerable interest in ascribing a ‘taste profile’ to chocolate, much as we see in the wine industry. 5. Unusual combinations Recent quirky and niche NPDs have included beer and chocolate, red wine and marzipan and vegetable-chocolate combinations. This demonstrates the extent to which chocolate serves as a fun base for layering flavours.
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[ CONFECTIONERY ] Standing out from the crowd
Nostalgia is king Swizzels has released an extensive Christmas collection featuring iconic brands and a One Direction branded gift tube. Children’s sugar confectionery sales over the Christmas period in 2013 were worth over £46 million, up 18% year on year (Nielsen). To build on its reputation as the fastest growing manufacturer with value sales growing by 60% year on year, Swizzels has introduced a Parma Violets festive gift tube and unveiled a seasonal packaging redesign across its Drumstick, Love Hearts and New Refreshers lines. The company has also responded to consumer demand by offering a One Direction branded gift tube, which contains mini Love Heart rolls featuring band member messages and icons chosen by One Direction fans. Sarah-Louise Heslop, marketing manager of Swizzels, says: “Our range offers something for all Christmas gifting and family sharing occasions. 34
“The One Direction Love Hearts gift tube has been a hugely popular addition to the Swizzels range since it was introduced last year. “It is the perfect stocking filler for all 1D fans and we encourage retailers to merchandise the range prominently.” Sweet Shop Favourites (the number one selling sugar confectionery tin), Sweet Shop Favourites Gift Box and Sweet Extravaganza complete Swizzel’s Christmas line-up.
A dentist’s dream The total gum category is currently worth £280 million and is in 4.8% value sales growth year on year – figures that Wrigley believes represent a huge opportunity to increase shopper’s basket spend at the moment of transaction. Worth £260 million in the UK, Wrigley accounts for nearly half of the growth seen in the £1.34 billion sugar confectionery category (TGI), with its gum portfolio adding £19 million over the last year. Pamela Bower-Nye, UK & Ireland marketing director at Wrigley, comments: “Gum is a significant front-of-store margin provider. At recommended retail price, Wrigley’s gum typically delivers over 30% profit – significantly higher than other products. “A total of 50% of shoppers who see gum will buy it, and nine out of 10 shoppers who interact with it will buy it. These are the highest conversion rates across all front-of-store segments (TNS).” Top 10 total candy value sales (MAT this year) 1
Haribo Gums & Jellies (£121.945 million)
Rowntree (£92.342 million)
Maynards (£68.851 million)
Skittles (£40.255 million)
Polo (£31.709 million)
Trebor Extra (£28.2 million)
Trebor Softmints (£27.797 million)
Strepsils (£25.884 million)
Tic Tac (£24.697 million)
Bassetts Babies (£24.414 million)
Table data (candy/mints/medicated): Nielsen (6/9/2014)
Storck UK has extended its Toffifee range by unveiling a seasonal 400g pack (rsp £5.48) to target consumers who trade up ahead of the festive season. Kantar reports that Toffifee is growing 14.7% ahead of the flat boxed chocolate category, with Nielsen labelling the brand as the fifth fast-selling SKU during the same period. The sharing pack, which sits alongside Toffifee 100g ‘casual treating’ bags, aims to leverage the phasing within the boxed chocolate category by catering for family sharing occasions and helping to retain brand relevance throughout the Christmas period. To build on the success of its central UK media campaign which delivered a 70% sales uplift (Kantar), Toffifee has commissioned a £3 million national TV campaign to support the new release and drive consumer awareness. The advert, which runs until December, is predicted to reach 45 million consumers, with the target demographic viewing the advert on average 11 times (Media Individual TVR). Meanwhile, Storck UK has introduced its first-ever assortment gift pack, Werther’s Original Golden Mix, into the incremental £14.3 million sugar gifting category (Nielsen). The 380g gift pack, which features five different varietals and has an rsp of £5, is “perfectly positioned to offer an alternative sugar gifting option”, according to Andy Mutton, sales director of Storck UK, which has identified a gap in the market for a caramel product targeting 45+ year-old consumers.
Fastest growing gum brand.* Now available as £1 Price Marked Packs
Highest sugar confectionery value sales last Christmas £2.9m value sales over Christmas, over £1m more than nearest competitor.**
For sweet sales success, call us on: 01663 744 144 *Nielsen defined kid’s sugar confectionery 52 week total coverage to 16.08.2014 **Nielsen Christmas data: 8 weeks to 28.12.13
[ CONFECTIONERY ] Brand refresh
To help increase brand loyalty, rather than relying on the 62% of unplanned single gum purchases (Advantage Group Shopper IQ), Wrigley has renovated its 5Gum portfolio by unveiling a packaging refresh, a £4 million marketing campaign and a new variant – 5Gum Glare. With an rsp of 59p per pack and flavoured with blueberry, acai and pomegranate, 5Gum Glare joins Wrigley’s stable of sugar-free products and is available in outers of 14 packs, with 36 outers to a case. Bower-Nye told Cash & Carry Management: “The trend towards sugarfree gum is growing and we expect this to continue as chewers seek out a healthy addition to their dayto-day oral care routine. “This is why over 95% of our gum brands are sugar-free and accredited by the British Dental Health Foundation.” Across its product portfolio, Skittles has teamed up with Xbox to offer consumers the chance to win Xbox consoles, games and online passes. The promotion, which runs until the end of the year, features on 55g packs of Skittles and 174g Fruits, Sours, Confused and new Wild Berry. Hannah Collings, global acceleration manager at Wrigley, says: “Currently worth £39 million, Skittles is continuing to perform brilliantly and growing three times faster than the total confectionery category at 15.4%. “With Xbox’s credibility, and the success of Skittles as a brand, retailers should ensure that their range is well stocked to profit from the partnership.” All data unless otherwise stated: Nielsen.
Tangerine Confectionery, the manufacturer of leading sugar confectionery brand Candyland, has introduced Refresher Fizz Bombs into the UK convenience channel. The mini bon-bon packs, priced at £1 (rsp), contain four flavours – Raspberry, Lemon, Lime and Orange – and replicate the Refresher packaging design to harness brand loyalty. Sarah Brown, senior brand manager at Candyland, says: “Our Refresher product is one of our biggest-selling kids’ singles items, and consumers have a real affection for the brand. “The bon-bon market is currently growing at 60% year on year (Nielsen), so by combining the two, we are creating a product that is guaranteed to spark interest with consumers.” Candyland has also undertaken a packaging redesign across several of its leading products to assist consumers in identifying their old favourite sweets on-shelf. The new designs, which display on-pack messages, have been applied to Candyland’s marshmallow, Wham and kids’ single-pack range, as well as all Henry Goode soft eating CCM liquorice products.
For further information: Ferrero (01923) 690300 Mars Chocolate UK (01844) 262517 Mondelez International (08702) 400861 Nestlé Confectionery 020-8636 3333 Storck UK 01932 372000 Swizzels 01663 744144 Tangerine Confectionery (01977) 692500 Walker’s Nonsuch (01782) 321525 Wrigley (01782) 752094
Best Cash & Carry Depot
Best Delivered Operation - Retail
Corporate Responsibility Award
Best Symbol Group
Best Delivered Operation - On-Trade
Best Marketing Initiative
Achievers Awards Dinner
• Sheraton Grand, Edinburgh
Thursday 12 February 2015
Now in its 13th year, Scottish Wholesale Achievers, which is run by the Scottish Wholesale Association (SWA) in partnership with Cash & Carry Management incorporating Delivered Wholesaler, continues to raise standards and reward outstanding performance across the trade. This unique scheme will culminate in a prestigious awards dinner, to be held on Thursday 12 February 2015 at the Sheraton Grand, Edinburgh. Dress is black tie. To secure your table, complete the form below and return to Joanne Mathieson at the SWA. Please note: this event always sells out within a few weeks of tickets going on sale.
Great Place to Work
Table of 10: £2,500 + VAT of £500. Total cost £3,000 Single ticket: £275 + VAT of £55. Total cost £330 NAME OF COMPANY............................................................................................................................................
Best Delivered Operation - Foodservice
ADDRESS.............................................................................................................................................................. ............................................................................................................................................................................ PERSON DEALING WITH BOOKING......................................................................................................................
Employee of the Year
Champion of Champions
TEL NO......................................................................... EMAIL ............................................................................
Number of tables
£3,000 per table of 10 (inc. VAT @ 20%)
Number of single tickets
£330 per single ticket (inc. VAT @ 20%)
Supplier Sales Executive of the Year
To book accommodation at the special SWA rate, contact Yvonne Cashin at YCashin Events. E-mail: email@example.com Send form with remittance to Joanne Mathieson, Administrative Assistant, Scottish Wholesale Association, 30 McDonald Place, Edinburgh, EH7 4NH VAT registration number: 269 2437 33
[ HOT BEVERAGES ]
Great expectations Changing drinking habits have created a demand for premium hot beverages that offer health credentials and value for money. he tea market is worth £644 million and in decline at 3% year on year. Standard black tea makes up 64% of the total category and is also in decline – by 7%. Part of this is due to the growth of healthy tea sectors, such as fruit, herbal, green and speciality. According to Taylors of Harrogate, consumers are now shopping around supermarkets, discounters and convenience stores and using online shopping as a way of getting the best value, with convenience stores the ideal outlet for the ‘little and often’ shopper on a top-up mission. Branded standard black tea sales have struggled year on year, but price-marked packs have helped during this decline as shopper faith is restored in finding value in branded products. The brand winner in this sector has been Yorkshire Tea, which has seen growth of 5%.
‘Too many products on promotion can confuse the shopper and create a value decline in the category’ Taylors of Harrogate spokesperson Private label tea sales are down by 8% (Kantar). This is due to the rise of the savvy shopper who is now looking for quality brands at value prices. According to Taylors, stocking at least one private label product for both tea and coffee offers the shopper choice in price tiering, which is what they would expect when visiting a large supermarket. As retailers gain control of the bestsellers on fixture and remove duplication, the standard tea sector will start to recover further, and brands are the key to this success, the company maintains. Taylors forecasts that the growth of healthy teas will continue, as will the rise of roast and ground coffee as shoppers replicate their out-of-home coffee shop experience in-home. When it comes to price-marking, retailers should ensure that their operating margins remain as a primary focus. In
certain geographical locations, more affluent consumers may be willing to pay more of a premium for a product that they are loyal to, so the retailer has a better chance of making more profit through a different pricing strategy. If some retailers only purchase on promotion, then make sure that the promotions are staggered, changing them every two to three weeks, advises Taylors. Too many products on promotion can confuse the shopper and create a value decline in the category. Taylors’ brand strategy in C&Cs is to keep things simple and to make PMPs, as well as standard packs, available – leaving the choice up to the wholesaler and retailer.
[ HOT BEVERAGES] Taylors also has extra-fill packs available for promotions, which have been key to driving rate of sale and creating brand loyalty. All data unless otherwise stated: Nielsen.
Tried and tested Unilever is the biggest tea producer in the UK, generating more than £155 million in value sales and accounting for 25% of the total tea market. PG tips is the number one tea brand, worth over £147 million. The fruit & herbal and green tea sectors have seen growth over the past 12 months and are worth over £70 million and £32 million respectively. The PG tips premium tea range has generated more than £4 million in retail sales for the category in the latest 12 months and comprises four variants: The Rich One, The Strong One, The Fresh One and The Mellow One. The Rich One is a Good Housekeeping magazine readerrecommended product, with 80% of respondents rating the flavour as ‘very good/excellent’. Over two million people drink decaffeinated tea every week (Kantar). PG tips Decaf tea is performing ahead of the category with value growth of 9.64% in the last 12 months versus a flat decaffeinated tea market (IRI). PG tips Decaf has the Good Housekeeping reader recommended stamp of approval, following a survey which revealed that 86% of Good Housekeeping readers would recommend PG tips Decaf tea to a friend. Kate Mitchell, brand manager, says: “As the fruit & herbal and green segments continue to drive value, habit remains the main consumption and shopping behaviour driver for the normal black tea sector. “This presents retailers with the opportunity to grow sales by stocking normal tea alongside fruit & herbal and green variants, to encourage consumers to trade up. “As the number one tea brand (KWP), our new range will tap into the trend for fruit & herbal and green tea, offering consumers a fresh, flavoursome taste from each of the largest flavour segments. “By launching a new range into our portfolio, our ambition is to attract new consumers to the category and drive incremental sales within both sectors.” All data unless otherwise stated: Nielsen.
Sweet and salty DaVinci Gourmet’s new Salted Caramel syrup is a blend of sweet caramel with a hint of saltiness. Originating from France and inspired by the traditional heavily-salted butter caramels of Brittany, the syrup has a salty-sweet aroma that complements the bitter undertones 40
of coffee. Available in one-litre bottles, Salted Caramel can provide approximately 62 (12oz) servings, based on two pumps in an average drink. Brand manager Steph Goldie says: “With latest consumer research citing salted caramel as one of the newest flavour combinations to feature on drink menus and growing by 12% in popularity year on year, it lends a more gourmet, and much more on-trend flavour, to plain caramel. With DaVinci Gourmet’s Salted Caramel syrup, operators can create fashionable and profitable menus.” DaVinci Gourmet aims to offer a complete beverage solution, and has reformulated its syrups to be free from artificial colours and flavours. The brand is celebrating its 25th anniversary and is now sold in over 60 countries.
Reviving sales According to Brett Grimshaw, business sector controller for convenience and out-of-home at Tetley GB, a division of Tata Global Beverages: “With many larger retailers reducing the level of price-led promotions and as tea sales become more aligned with consumption, overall volume sales of tea are falling and a more accurate picture of the tea market and the opportunities for growth are beginning to emerge. “Restored buying confidence is beginning to show and key growth areas like green and speciality teas have performed significantly better than this time last year. The focus on healthy living is benefiting the healthier segments like green and redbush, and speciality teas like Earl Grey.” Tetley remains the number two brand with a 19.8% volume share. Premium teas now account for 23.9% of everyday tea sales, an increase of 5% over two years. Tetley is bringing its three premium teas – Tetley Extra Strong, Tetley Estate Selection and Tetley Blend of Both – together under one umbrella called The Blend Collection. “With tea commonly known as the ‘quick aisle’, shoppers are often met with a sea of products with little differentiation,” says Grimshaw.
Go on, boost your tea sales Take a fresh look at Tetley!
That’s better. That’s Tetley. To find out more about Tetley go to: www.tetley.co.uk
Tel: 0800 387227
[ HOT BEVERAGES ] “This has to change if the tea market is to revive. We are working on a number of initiatives that could make a real difference to the shopper experience in-store which we hope to execute during the course of the year.” Despite the growth of the green tea category, household penetration remains low at just 15%. Tetley has three of the top five best-selling SKUs in the green segment in impulse with Tetley Green Pure Lemon 20s sitting at number two. Four new flavoured green teas launched this year are Tetley Green Tea Mango and Passion Fruit, Peach and Apricot, Raspberry and Pomegranate, and Mint. In total impulse, volume sales of Tetley green teas are up by 36%. Tetley Green Pure 20s and Tetley Green Lemon 20s are both available in £1 PMPs. Tetley has a new digital campaign featuring its range of green teas, which includes two executions, one for Tetley Pure and one for its flavoured variants. “Green teas are among the key growth areas in tea and their appeal is growing. We know that shoppers respond well to adverts featuring The Tea Folk and we hope this fun campaign will tempt even more people to give green teas a try
our consumers, who drink about 8.6 million cups of Kenco a day, have a responsibility towards the communities that our coffee comes from. “This is an exciting and potentially life-changing project. The advert has a completely new look and feel to what people are used to from Kenco, but it embodies the seriousness of life in Honduras.”
Meeting consumer demands
‘Key growth areas like green and speciality teas have performed significantly better than this time last year’ Brett Grimshaw, Tetley GB business sector controller and adopt them into their daily tea drinking routine,” says Andrew Pearl, director of customer and shopper marketing. Tetley is the market leader in redbush, with Tetley Redbush 40s the bestselling SKU in the sector. The company is utilising magazine advertising in key women’s and health titles and promotional tools in-store to drive awareness and reinvigorate sales in this category. Tetley Mood Infusions is a range of tea blends that include Calm, Warmth, Serenity, and Pick Me Up variants.
Nestlé Professional has extended its barista-style Nescafé Azera brand with the launch of new Cappuccino and Latte sachets to the route-to-market sector. The variants deliver the aroma and roasted coffee flavour associated with barista-style coffee, but in an instant. Cappuccino and latte are now the most popular coffees in the out-of-home sector (Allegra). Nescafé ingredients lead Lynn Little says: “Somewhere in the region of £99 million ‘lost’ coffee sales in the out-of-home market can be attributed to poor quality, as people are happier to go without than to settle on a product that’s less than perfect (Incite). As consumers have come to expect baristastyle coffee wherever they go, there’s a clear opportunity to deliver a product that guarantees speed, consistency and CCM quality.”
All data unless otherwise stated: Nielsen.
Give something back Kenco recently launched its ‘Coffee vs Gangs’ television advert, which is part of the ‘Coffee Made Happy’ programme from Mondelez International. The advert tells the story of life in Honduras and a young man who is on the brink of becoming involved in gang activity but embarks on the Coffee vs Gangs project instead. Kenco is working with inner city locals and coffee-farming communities who may be at risk of falling into crime, and equipping them with the skills they need to become successful coffee entrepreneurs. Coffee Made Happy is a global $200 million Mondelez International project that aims to help one million coffee smallholder farmers become successful entrepreneurs. Brand manager Emad Nadim explains: “Mondelez International is a big player in coffee and collectively we and 42
For further information: Da Vinci Gourmet (01784) 430777 Mondelez International (08702) 400861 Nestlé Professional (0800) 742 842 Taylors of Harrogate (01423) 814008 Tetley GB 020-8338 4000 Unilever (0800) 731 1597
OFFICIAL BREW OF ENGLAND CRICKET
[ OTC REMEDIES ]
Distress can equate to success With OTC remedies being less price-sensitive than many other products, wholesalers and their customers can profit from stocking the brands that consumers turn to in need. s a distress purchase, cold & flu and pain relief remedies are of great importance to the independent grocery and convenience sectors. These purchases are often made on the way to or from work, or when a member of the family is unwell. The key purchasing period for cold and flu products is October to March. According to Reckitt Benckiser (RB), 66% of shoppers thought ‘brand’ was the most important decision in this category (43% analgesics, 62% heartburn & indigestion), and 27% of cold and flu sufferers use an analgesic. RB is backing its leading brands Nurofen, Lemsip, Strepsils and Gaviscon with direct-to-consumer TV, online, social media and out-of-home campaigns to the value of over £12 million. This support continues until the spring. Kate Sweeney, senior brand manager, says: “Well-known brands do really well in this category and are the key to winter remedy success, giving better bottom-line results. Many purchases are distress purchases, with consumers buying products because they already have a cold or flu and are suffering from unpleasant symptoms. They don’t want to try something unknown to see if it works: they want results and they want them fast!” RB recommends these five OTC cold and flu/winter remedy items for when space is at a premium: Lemsip Max All in One, Nurofen Express Caplets, Lemsip Cough, Strepsils Extra Blackcurrant (16s), and Nurofen for Children Cold, Pain and Fever (Strawberry 100ml). RB points out that shoppers pick up 2.34 cough and/or cold products before choosing – more interaction than any other recorded category. They also tend to buy across the fixture, making the potential for cross purchase high. A national campaign featuring Nurofen, Lemsip and Strepsils is pushing home the message that antibiotics will not kill the viruses that cause cold and flu and that symptoms can be treated without a visit to the GP. The initiative includes TV, press, online, PoS and in-store support. For Nurofen, the company is using the strapline, ‘Nurofen targets the inflammation at the source of your cold and flu symptoms’. Nurofen is claimed to be unique in the cold and flu sector in being able to target inflammation to aid symptom relief.
Two key remedies recommended for when space is tight.
The marketing for Lemsip Max focuses on the key benefits of the All in One range, which starts working in five minutes and acts on the five major symptoms of cold and flu: headache, fever, body aches and pains, blocked nose and sore throat. New from Lemsip is Lemsip Cough Max for Chesty Cough & Cold powder for oral solution – the first hot drink solution for chesty cough relief. Unlike cough syrups, it not only breaks down mucus but also eases aches and pains. The company is also claiming a first with its Lemsip Mucus Cough Sugar & Colour Free liquid, which meets the needs of the cough sufferer who is turned off by perceived high sugar content of other remedies. The launches will be supported by a 360-degree promotional campaign that breaks in November. There will also be a new TV advertisement. For Strepsils, RB has unveiled a marketing initiative aimed at reaching 15 million consumers and highlighting the advantages of Strepsils over non-medicated sweets for effective sore throat relief, with a particular emphasis on the combined benefits of Strepsils Extra Strength for painful, irritated and sore throats. Gaviscon holds the number one position in the UK heartburn & indigestion remedies category (Nielsen), and a £6 million advertising campaign and promotional activity keeps the brand in front of consumers throughout the year.
The newly expanded Lemsip Cough range from Reckitt Benckiser. 44
NO APPOINTMENT NECESSARY RB has winter all wrapped up with the complete answer for cold & flu relief Antibiotic resistance is an increasing concern with 1 in 5 people visiting their GP unnecessarily and many seeking antibiotics to treat cold and flu. This winter RB is set to support pharmacists’ expertise with a new No Appointment Necessary campaign comprising educational POS material, in store support, television and print advertising and online activity across its Lemsip, Lemsip Cough, Nurofen and Strepsils brands. No Appointment Necessary complements the PAGB’s Treat Yourself Better campaign designed to encourage consumers away from GPs and towards visiting the pharmacy first. This is particularly important for upper respiratory tract infections (URTI) such as cold, flu, runny or blocked nose, sore throat and cough and associated aches and pains where antibiotics are ineffective. Patients get comfort and reassurance from being told that their symptoms can be treated, even in the absence of antibiotics1. Pharmacists are ideally placed to advise on effective self-treatment, reassuring patients, explaining that antibiotics are not necessary and can have adverse effects, and by recommending appropriate symptomatic relief.
Nurofen: Nurofen, is the UK’s No.1 analgesic brand2
Lemsip: Lemsip is, the No.1 cold and flu brand3
Craig Shaw, Nurofen Marketing Director, says: “The Cold and Flu category is complex with many consumers confused and unsure what to do for the best. So it is crucial for pharmacists to get their offer right for their customers and make the most of the season. Our campaign will help drive consumers into the pharmacy for advice and guidance. With our Nurofen; Nurofen Cold & Flu, Lemsip, Lemsip Cough and Strepsils brands, RB literally has winter ‘all wrapped up’ for the retailer, with: leading brands that customers want, and direct to consumer brand campaigns using TV, online, social media and OOH to the value of over £12m. Campaigns break in October and continue through until Spring 2015, keeping the brands in front of consumers, building confidence in the efficacy and helping to drive sales”. References: 1. Van Driel ML De Sutter et al. Ann Fam Med 2006; 4(6) 494-499 2. AC Nielsen Total Coverage value sales MAT w/e 19.07.14 3. AC Nielsen Unit Sales MAT August 2014 4. AC Nielsen Unit Sales MAT August 2014
Strepsils: Strepsils is, the No.1 selling sore throat brand4
0500 455 456
For more information about No Appointment Necessary please call: For more information and education about managing customers’ URTI symptoms please visit www.RBforhealth.com an education portal specifically designed for pharmacists and their teams.
[ OTC REMEDIES ] indigestion remedies with a 78% share (Nielsen), and Dulcolax, the world best-seller in laxatives (IRI), available in a handy pack of 20.
Medicated confectionery boost Product confidence is key Critical to successful OTC sales is confidence that a product is going to relieve a sufferer’s symptoms quickly and easily, insists Johnson & Johnson. “Therefore, it is vital that wholesalers understand the different sub-categories within the OTC remedies market and offer a range of products within those commodity groups to meet different needs,” says Andrew Freestone, commercial director of SHS Sales & Marketing, which sells and distributes Johnson & Johnson brands in the wholesale and convenience channel. “Wholesalers are advised to minimise their range of private or less well-known brands and focus on the market leaders which are well known and heavily advertised,” he continues. “In order to help retailers navigate the fixture in depot, it is also beneficial to group sub-sectors together.” In the cough and cold sector, Benylin Mucus Cough 150ml and Benylin Mucus All in One tablets are products that have been developed to treat a range of the most debilitating symptoms in a single dose and are leading sales in what Johnson & Johnson believes to be an incremental £200,000 opportunity for the channel. In the area of child pain relief, over 87% of sales come from the Calpol brand. Meanwhile, Sudafed is one of the leading brands of decongestant in the convenience channel, with a 26% share of value sales. Also within convenience, Imodium accounts for 84% of anti-diarrhoea relief sales. All of Johnson & Johnson’s OTC medicines benefit from consumer marketing, including digital, TV and PR activities. All data: Nielsen.
Thornton & Ross has expanded the Covonia range of cough remedies with a sugar-free and alcohol-free formulation. The 150ml bottle has an rsp of £4.99 and the nondrowsy formula is suitable for daytime use. Covonia is investing in its largest ever national TV, press, PR and social media campaign to raise awareness throughout the key winter cough and cold season. The Veno’s cough medicine range, which is owned by Forest Laboratories and distributed by Ceuta Healthcare, has a new look this season. The updated packaging builds on its equity as a ‘safe, trusted family brand’, while bringing it up to date and extending its appeal to a younger audience. Veno’s has a 20% share of the cough liquids category in independent grocery (Nielsen). The range comprises Veno’s Honey & Lemon for tickly coughs, Veno’s Cough Syrup for dry coughs, and Veno’s Expectorant for chesty coughs. All variants are non-drowsy and available in 100ml and 160ml sizes, with rsps of £3.30 and £4.27 respectively. Other key brands available from Ceuta Healthcare are Berocca vitamin and mineral tablets, which come in clip strips for off-shelf siting; Rennie, the market leader in 46
Medicated confectionery is worth £94.7 million and accounts for 8% of the UK candy confectionery category (Nielsen). Mondelez International leads the medicated confectionery market, with its brands valued at £31 million. Halls is the world’s number one candy confectionery brand and is available in nine variants. To help boost sales, Mondelez recently introduced a ‘Fresh Stop’ unit, which holds its best-selling mints, gum and medicated confectionery lines. The unit is designed for small counter tops to attract impulsive shoppers. The company has also teamed up with EA Games for an on-pack promotion on Halls. By entering a unique code at www.hallsgameon.com, consumers have the chance to win a Samsung Galaxy S4 16GB smartphone or one of one million free EA Games Android downloads.
Halls is being supported by a £1.2 million marketing investment this year, including TV and video on demand, outdoor, social media and PR activity. Fisherman’s Friend from Lofthouse of Fleetwood has strong expectations for growth in the 2014-15 winter season, following the rise of its Original Extra Strong lozenges to a top 10 slot within the medicated confectionery category. Sales of the Blackcurrant variant recorded a 26% increase in value sales in impulse outlets. The visibility of Fisherman’s Friend will be bolstered this winter with a new round of TV sponsorship on the Discovery Network. Running until March, the initiative is being backed by digital advertising in January and February on Xbox, Unruly and Sky Go, as well as social media, PR and sampling activities plus in-store promotions. Back by popular demand for winter 2014, Fisherman’s Friend will be available in promotional packs for cash & carries and convenience stores: ‘24 for 22’ on Original Extra Strong, Aniseed and Cherry flavours and ‘24 for 18’ on Blackcurrant. Fisherman’s Friend is distributed by Ceuta Healthcare. Rsps are 79p for a 25g packet and £1.45 for a 45g box. All data unless otherwise stated: Nielsen.
For further information: Ceuta Healthcare (0844) 2436661 Mondelez International (08702) 400861 Reckitt Benckiser (01753) 217800 SHS Sales & Marketing (01452) 378500 Thornton & Ross (01484) 842217
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[SWEET BISCUITS] Did you know? United Biscuits’ branded biscuits were purchased by 95% of UK households in 2013 (Nielsen).
Rising to the occasion With on-the-go snacking and the seasonal festivities primed to unearth multi-million pound opportunities within the biscuits market, manufacturers are investing in innovation and marketing to help reinvigorate their brands this winter. easonal biscuits are worth £5.2 million in the impulse channel alone, reports Nielsen, with three out of four UK households purchasing McVitie’s or Jacob’s biscuits last Christmas. To correspond with the popularity of its McVitie’s Victoria and Family Circle assortment boxes, which are the UK’s number one premium and everyday biscuits respectively, United Biscuits has updated its range by reintroducing Christmas variants of the two lines. Following a £1 million investment in packaging technology, McVitie’s Victoria boxes now contain two reclosable individually-wrapped foil film trays to retain freshness and a hinged mechanism to present a premium and modern look. The new 700g box, which has an rsp of £10, contains an extra 200g of weight but maintains the same price mark from Christmas 2013. The assortment also comes in two additional size formats – a new 300g carton (rsp £5) perfect for small gifts, and a 450g tin (rsp £10) for a traditional gifting option. McVitie’s Family Circle has also undergone a festive packaging redesign and is available in 800g and 400g formats, priced at around £6 and £3.09 respectively, to cater for sharing and impulse purchases.
Top picture: Sarah Marshall
McVitie’s Family Circle is worth £63 million in the premium assortments category – more than its three closest competitors combined. Hena Chandarana, trade communications controller at United Biscuit’s UK, urges stores to ensure ‘must stock’ best-sellers are “displayed prominently to attract core shoppers to family favourites”. Karl Bollon, customer marketing and insight manager at McVitie’s Cake Company, echoes Chandarana’s sentiments and advises wholesaler’s to develop cross-category promotions and create in-store theatre to maximise sales. He comments: “Last year, over half of consumers planned to shop around more in order to find the best deals (IGD), with one in four taking extra steps to find the best quality products. “This focus on quality, combined with shoppers’ desire to save money, has made the Christmas consumer increasing savvy, so stores should take advantage of the countdown to Christmas by offering early bird promotions. “Shoppers want and expect seasonal space and signage, and offering secondary sightings and eye-catching shippers can significantly boost your sales,” concludes Bollon. All data unless otherwise stated: Nielsen.
Boost Your Sales with Price Mark Packs
• PMPs worth £22m in Convenience & Impulse1 • PMPs growing at 23%
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Sources: 1.Litmus, 52 w/e 23/03/14 2. Year-on-year. All Cadbury trademarks and copyright are owned by Mondelez International group and used under licence. All Cathedral City trademarks and copyright are owned by Dairy Crest Ltd and used under licence.
Table data: Nielsen 52we 13/9/14
[ SWEET BISCUITS ] Top 10 best-selling biscuits by value sales in the impulse sector 1
McVitie’s Digestives (£24.68 million)
McVitie’s Hob Nobs (£9.585 million)
Cadbury (£8.817 million)
McVitie’s Jaffa Cakes (£6.636 million)
Eat Natural (£5.739 million)
Maryland (£5.464 million)
Kellogg’s Rice Krispies (£5.001 million)
Kit Kat (£4.970 million)
Oreo (£4.527 million)
Jacob’s Crackers (£3.758 million)
Snack happy The total biscuit market is worth more than £2.32 billion, Nielsen data has revealed, with sweet biscuits forecasted to generate 72.5% of total market revenue in 2014-15 (IBISWorld). But while sweet variants account for the largest segment, healthier biscuits represent the fastest growing category, with Belvita Breakfast, the number one breakfast biscuit brand, delivering double-digit growth year on year. The importance of biscuits in the FMCG category is reflected by 99% of households purchasing biscuits 37 times a year, with Mondelez International reporting that its Oreo brand is growing at 13% and driving penetration by 19.6% (Kantar). Available in snack-pack and cross-category formats, Oreo caters for “top-up and snacking missions – two key sectors in the impulse channel”, says Susan Nash, trade communications manager at Mondelez International. She adds: “It’s important that wholesalers make the most of growing trends, as well as the biggest sectors, to help independent retailers appeal to changing consumer preferences and continue to improve their sales.” To ensure all shopping missions are catered for, Nash advises wholesalers to stock a range that covers all the relevant day parts: breakfast, mid-morning, mid-afternoon and on-the-go snacking. To tap into the growth opportunities in the sweet biscuit market, Mondelez International
has introduced Chips Ahoy!, the world’s number one chocolate chip cookie (Euromonitor), into the UK market for the first time. The American brand, which generated $569 million sales in 2013 (Euromonitor), has released two variants exclusive to the UK – Popcorn Candy Chip and Crispy Choco Caramel. The cookies (rsp £1.99) are available in packs of 12, and are aimed at “recruiting new, younger shoppers to the biscuit category and driving incremental sales across the chocolate tablets range”, says Rick Lawrence, head of the biscuits category for Mondelez International UK and Ireland. To support the new range, the company has unveiled an £8 million marketing investment for the next 18 months, including TV and digital activity, to help meet its target of Chips Ahoy! becoming a £50 million brand in the UK by 2015. All data unless otherwise stated: Nielsen
Out-of-home packs Burton’s Biscuit Company has bolstered the UK’s out-ofhome biscuit market by launching three adult single-serve packs into the impulse channel. The launch, which is supplemented by Burton’s ‘SnacksToGo’ app – the company’s first-ever mobile application – is designed to “accelerate the growth of the treatier biscuit market, which is currently the only sector of the in-home biscuits market that is in growth”, claims head of customer category management David Costello. The range features a 30g Maryland Gooeys twin snack pack and a 40g bag of bite size Maryland Choc Chip Cookies, both available in 39p PMP and plain packs (45p rsp). A 40g non PMP of Cadbury Fingers Minis is also available with an rsp of 45p. Costello says: “Sweet biscuits are already the number one choice for snacking in the home, but people have a very limited offer of traditional treat biscuits when they’re on the move.” Each product is available in a
[ SWEET BISCUITS ] counter display unit, enabling retailers to capitalise on the fact that a third of all biscuits are bought on impulse (him!). The range of 39p PMPs is available in cases of 16, reducing retailers’ initial outlay. To capitalise on morning and afternoon snacking occasions, Burton’s is urging retailers to position single-serve packs in-store to drive sales. Costello explains: “With 86% of biscuits consumed with a drink (Kantar), it is important to locate biscuits appropriately in-store to drive impulse sales. “Key in-outlet locations will be adjacent to sandwiches and cold drinks to take advantage of the lunchtime trade and also alongside hot drinks stations as their perfect complement.” To supplement the brand extensions, Burton’s has commissioned its first-ever mobile application, exclusively for independent and convenience retailers.
As reported in Cash & Carry Management last month, the ‘SnacksToGo’ app offers valuable insight into the new range and includes a product catalogue, category management advice and the option to purchase in-store PoS material. Retailers who download the ‘SnacksToGo’ app will also be able to win an iPad Mini and take advantage of an exclusive introductory offer, with 50% off the purchase of four cases of products from the single-serve range. The free app is available for download on iPhone and Android handsets from iTunes and Google Play Store.
Relaunch campaign Fox’s Biscuits, which boasts a 7.9% market share of the sweet biscuit category, has announced a £10 million relaunch campaign, fronted by Vinnie the Panda, to contemporise the brand and guarantee ‘More Yum Per Crumb’. The support plan features ‘prime time’ TV adverts across terrestrial and multi-channel stations, social media activity, improved recipe formulations and a packaging redesign. A nationwide sampling programme, which is estimated to reach 720,000 individuals, has also been introduced, while a national print campaign has been launched with several consumer titles. The above-the-line promotion will run until the end of this month, with an eight-week campaign scheduled for February and March next year. According to managing director Colin Smith, the outlay
has trebled Fox’s media spend compared to 2013 and aims to increase brand relevance by highlighting the company’s generosity and high quality ingredients. Smith adds: “We intend to bring excitement, step-change innovation and sustainable growth to the biscuit category. “We have simplified our range and will focus on our five ‘hero’ brands [Crunch, Chunkie Cookies, Rocky, Viennese and Party Rings], which are most popular with our consumers and have the biggest opportunity for growth.” To help optimise shelf standout and mobilise sales within the convenience sector, Fox’s has announced a new PMP initiative across a range of its best-selling lines. With prices starting at 79p, the “competitive pricing strategy aims to encourage consumers to pick the packs up and drive retailer volume,” says Alastair Johns, senior brand manager at Fox’s Biscuits. As part of its promise to deliver ‘More Yum Per Crumb’, Fox’s has responded to consumer feedback which claimed its Choc Fudge Crunch biscuit was a “little too sweet” by initiating quality improvements, such as removing the fudge flavour and adding more cocoa. Meanwhile, Fox’s has released a new Party Rings variant to engage a female-centric audience of mums and young girls. Manufactured in 130g packs containing 20 biscuits, Fox’s Fairytales Party Rings have an rsp of £1.15 and are suitable for vegetarians following the removal of gelatine and certain colourants. This latest development follows a £20 million investment by Fox’s in its infrastructure to help increase capacity, innovation and flexibility across pack formats. Smith told Cash & Carry Management exclusively: We have a three-year plan of innovation to cover all channels. “This is a key reason for spending £20 million and we will be focusing on catering for all shopper missions and occasions with different pack formats, while also rationalising our five hero brands to sit under the Fox’s portfolio.” All data: Nielsen.
For further information: Burton’s Biscuit Company (01727) 899700 Fox’s Biscuits (01924) 444333 Mondelez International (08702) 400861 United Biscuits 020-8234 5000