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Brakes seeks more cash & carry sites following Croydon opening Wholesalers and suppliers focus on smart use of technology Bidvest 3663 puts festive range online earlier than ever before Probationary periods: benefits for employers and employees Craig O’Connor of Grimsby-based Dee Bee in the Spotlight

The business magazine for cash & carry/delivered wholesalers

P U K C O T S ! W O N • Bottled Water accounts for over 16.5% of Soft Drinks sales in the UK 1 • BALLYGOWAN® is Ireland’s No1 water brand with a 21% share of the total market 2 • Naturally filtered through the mineral rich limestone of County Limerick for up to 750 years

PURE IRISH REFRESHMENT Sources: 1 Canadean 2013, 2 Canadean 2013.




Just try and keep cool It’s the time of year that has line managers dripping with perspiration – and not just because of the prolonged hot spell. It’s holiday time, when staff disappear to Southend or Sorento, depending on how much they earn, and replacements become vital. What do you do – plan well ahead and make sure you have suitably trained staff to carry out more than just one function, ready to step into the breach at a minute’s notice, or panic and call the temp agency down the road? The latter option is costly. Employing someone for a two-week stint will necessitate a bigger outlay by the company than if the staffer was doing his normal job. I was left wondering how all this affects delivered wholesalers after an acquaintance of mine, who drives a refrigerated truck for a frozen food distributor, was forced to work longer hours, at virtually no extra pay, to fill in for a colleague sunning himself on the beach. What made things worse was that he was already under pressure because a couple of drivers had left and not been replaced. Big organisations like Brakes, 3663, JJ Food Service and Creed Foodservice will be prepared for the holiday evacuation. But how many smaller operators leave things to chance? Sorry, I forgot to mention that the firm my friend works for specialises in ice cream. Nice if you can sneak one down during your rounds, but back-breaking when the orders are flooding in.

Creed Foodservice renews Gloucestershire food/farming sponsorship ... see p.9



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employment law


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RTDs update


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Cash & Carry Management

• August 2014 • 3

news IN BRIEF More C&Cs? Brakes Group, owned by Cucina Lux Investments, is seeking more cash & carry sites, the first of which – a 25,000 sq ft depot in Croydon – recently began trading as Brakes Professional Food Market (Cash & Carry Management: March). However, chief executive Ken McMeikan is noncommittal as to when the next units will open, how many are planned and where they will be. The company is also currently building a 173,000 sq ft multi-temp depot in Glasgow.

Drink issues The House of Lords home affairs, health & education EU sub-committee is inviting interested parties to submit views relating to its enquiry into what the next EU alcohol strategy should be. Two of the issues being examined are whether the present framework is in line with the World Health Organisation and the effect of minimum pricing.

New owner Sevenoaks-based chilled, frozen and ambient foods distributor BFP Wholesale has been sold by French owner Lessaffre to private equity consortium Zimt Holding. BFP Wholesale, whose customers include the Greggs bakery chain, has annual sales of £75 million.


Opportunity for Best-one? There might still be two months to go until Bestway Group’s £620m takeover of the Co-op pharmacy business becomes official, but the new owner will already have considered which of the 770-plus branches will be retained and which might close, writes Mervyn Gilbert. For its part, the troubled Co-op has issued a notice to pharmacy managers and staff informing them of developments, alluding to a change of logo. Whether this means the Co-op name will be retained, either largely in the present format, alongside Bestway’s imagery or dispensed with entirely (no pun intended) is uncertain at this stage. The Bestway management has so far declined to point speculators in the right direction – possibly because it is still early days and there remains some uncertainty. But with no expertise in the retail pharmacy sector, the C&C/wholesaler will be relying on the experience of the present management – at least in the medium term. After that, it remains to be seen how many of the 6,500

How many could be converted?

employees will be retained. In the year to 5 January, the Co-op pharmacies had an operating profit of £28.2m on sales of £764m. What will have been seriously considered by Bestway is whether there is any mileage in converting the less successful pharmacies into Best-one grocery outlets, either as companyowned stores or franchised in batches to entrepreneurs or individual businessmen. One of the most successful aspects of the Bestway business, the Best-one chain has amassed more than 1,100 branches under the leadership of director of

symbol James Hall, while sales have grown by around 40% since the start of the year. In addition, the Xtra Local promotional club has nearly 3,000 members, with sales up by about 30%. Despite speculation about possible conversion of many of the Co-op pharmacies, there has been no hint from Bestway that this could happen. Group chief executive Zameer Choudrey said: “We see great potential to grow the business organically and through further acquisitions.” Tel: Bestway Group 0208453 1234.

Lowries name phased out Blakemore Wholesale, which acquired fellow Landmark Wholesale member Lowries Wholesale last year (Cash & Carry Management: July 2013), has relaunched one of the two depots – a 55,000 sq ft dualpurpose unit in Killingworth, Newcastle upon Tyne – under the Blakemore name. A similar conversion will be completed shortly at the other purchased premises – a 30,000 sq ft foodservice

• Cash & Carry Management • August 2014

depot and C&C in Penrith, Cumbria. The change of ownership came about because of the impending retirement of Lowries’ managing director Peter Lowrie. The Killingworth changes include new checkouts, reception area, tobacco room, flooring, racking, energy-efficient lighting, as

well as the new fascia. Launch day resulted in a sales increase of 260% compared with an average trading day. General manager Gavin Brown said: “I lost count of the number of positive comments from customers and suppliers.” Tel: Blakemore Wholesale (01902) 371515.



Scottish drinks purchase Dunns Food and Drinks, the Blantyre-based delivered wholesaler and soft drinks manufacturer, has acquired craft and world beer specialist Dameck Drinks Scotland for an undisclosed sum as part of its strategy to strengthen its product range and increase turnover by £3m to £25m next year. Jim Rowan, Dunns’ managing director, said: “Craft and world beer is a highly specialised category. As Dameck, of Bathgate, is already selling over 1,200 craft and world beer products into the Scottish ontrade, this acquisition will allow us access to a

customer base and market sector in which we have little presence. “Dameck shares the same values as us, offering customers excellent products and service at competitive pricing. We’re also delighted that Danny McGeough (Dameck’s managing director) and his team will continue to introduce and develop innovative product ranges.” Privately-owned Dunns,

which has invested £100,000 in a new IT system to improve customer service and embarked on a £250,000 refurbishment of its 70,000 sq ft depot and offices, serves the licensed and foodservice sectors. A further £160,000 is being invested in the company’s 26-strong fleet, while another £40,000 will be channelled into staff training and development over the next two years. Dunns – a member of Country Range Group – also recently launched its own Wine Academy and joined The Society of Vintners. Tel: Dunns Food and Drinks (01698) 727700.

Five-time award winner The fifth consecutive Queen’s Award for Enterprise in International Trade was presented by Prime Minister David

Cameron to Dr Rami Ranger MBE, chairman of Landmark Wholesale member Sun Mark at the company’s Greenford premises.

Outside of Sun Mark’s Greenford premises.

Among those attending were MPs Keith Vaz (Leicester East and chairman of the Home Affairs Select Committee), Sir Tony Baldry (Banbury) and Stephen Pound (Ealing North), and Ranjan Mathai, High Commissioner of India to the UK. Also present was Mukesh Vithlani, trading director of Dhamecha Cash & Carry, with which Sun Mark has trading links. Tel: Sun Mark 020-8575 3700.

JJ online service exceeds target Foodit, the online service for restaurateurs launched by JJ Food Service last year, has exceeded expectations. Headed by Rif Kiamil, it has recruited around 130 businesses in the 12 months – double the original target. According to business development manager

Serhat Karakus, many signatories have increased sales significantly since joining. One he picked out – a fish and chip shop in Doncaster – is on course to make an extra £35,000 through online customers generated by Foodit. To join the new service, restaurateurs pay a fee of


£538 (including VAT) and 5% commission on additional sales. Consumers looking for, say, a kebab or pizza in their immediate area are given the option of using the Foodit subscriber. Tel: JJ Food Service (0843) 309 0991.

Warning on eggs The British Egg Industry Council is calling on wholesalers to use British Lion eggs, ensuring the bestbefore date is shown, guaranteeing quality, freshness and food safety. A large number of eggs – many of them imported – sold by wholesalers often fail to display a date on the shell and are stocked on keyes trays, raising concerns about the eggs’ freshness. BEIC chairman Andrew Joret said: “The lack of bestbefore dates on egg shells within some wholesalers represents a significant due diligence risk for caterers as well as a potential food safety risk for consumers. “Caterers need this information, and it’s about time that wholesalers gave it to them.” Tel: British Egg Industry Council 020-7608 3760.

Scented Bestway Group has launched a range of five aerosol air fresheners under the Best-in label: spicy apple, citrus, lavender, fresh orchid and linen. All are dual priced – 79p each and two for £1.20. Tel: Bestway Group 0208453 1234.

SPAR host Northern wholesaler James Hall & Co hosted this year’s SPAR International Future Leaders conference, welcoming 36 people from 11 SPAR countries to its Preston headquarters. Tel: James Hall & Co (01772) 706666.

Cash & Carry Management

• August 2014 • 5


Operational change Rizwan Pervez has replaced David Gilroy as operations director of Bestway Group, with responsibility for retail and foodservice operational matters across the 63 Batleys and Bestway Rizwan Pervez David Gilroy branches. He also has control of the company’s symbol and group – most recently as retail clubs – Best-one and marketing director – brings a Xtra Local (with James Hall wealth of experience to the remaining director of symrole and has a total underbol) – as well as the Bestway standing of where we curDirect delivered business. rently are as a business and Younus Sheikh, managing where we are striving to get director of Bestway to in the future. Wholesale, said: “Rizwan, “We have recently having worked across many restructured our operations departments within the to provide a greater regional

focus to customers and improve efficiencies.” Pervez, son of chairman and founder Sir Anwar Pervez OBE, commented: “Operations is an area where you can see tangible results in a very short time. It is a role that will bring me into greater contact with depot managers and customers.” Gilroy, who is joining the W2 food, beverage and FMCG agency in London, was with the group for nine years, having once headed the catering side. He is a former operations director of N&P. Tel: Bestway Group 0208453 1234.

Parfetts plays host Employee-owned Parfetts celebrated Employee Ownership Day last month across its six cash & carries, creating a summer-themed event attended by staff, customers and suppliers. At the Aintree branch, employees assumed a Hawaiian guise, wearing colourful shirts and garlands. Attractions included prize competitions and a steel band. Suppliers supporting the day included AG Barr, CocaCola, Cadbury, Warburtons and Wrigley. Tel: Parfetts 0161-429 0429.

Sales almost double More than 500 suppliers and guests were present to see Bestway Group chairman Sir Anwar Pervez OBE open the new Bestway Batleys depot in Glasgow – formerly trading as Sher Bros. Also speaking was chief executive Zameer Choudrey, who promised customers greater choice, support and flexibility and more competitive pricing. The official opening day of the C&C, which has 110,000 sq ft of floor space and is managed by Pat Collins, produced sales 196% up on the corresponding day the week before, with ‘healthy margins’. There was also a 128% increase in footfall, with traders spending heavily on both promotional and nonpromoted lines.


The Batleys C&C at Cambuslang also posted a 13% sales rise over the previous week, despite fears of cannibalisation. Jonathan Kemp, commercial director of Barr Soft Drinks, said: “Bestway has created a truly phenomenal depot in the heart of Glasgow. “It is clear that a significant amount of thought and hard work has gone into the development of the layout, in terms of both the retail and catering offerings.” In addition to Glasgow and Cambuslang, there are Batleys Scotland cash & carries in Aberdeen, Stirling, Edinburgh, Perth, Dundee and also Bellevue in Edinburgh. Tel: Bestway Group 0208453 1234.

• Cash & Carry Management • August 2014

Approach accepted Metro Group, former owner of the Makro UK chain – now under Booker’s control – has accepted an approach from a Thailand group for its Vietnamese C&C operation, which consists of 19 branches. Latest quarterly results from the Dusseldorf-based Metro Group show that sales of the cash & carry operation slipped by 2.2%. That brought the ninemonth figure to June to 22.9bn euros against 23.4bn euros in the previous corresponding period. Pre-tax profit in the nine months fell from 916m euros

to 715m euros. All regions except Asia/Africa showed a C&C sales decline for the threequarter period, although the directors said that figures were not directly comparable because of a change in the accounting period. In Germany C&C sales were 3.65bn euros, in Western Europe (excluding Germany) 7.92bn euros and in Eastern Europe 8.61bn euros. Between October 2013 and June, the group opened 57 stores (including 13 C&Cs) in 10 countries, while 66 in total were closed.


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Makeover for own-label Hancocks Cash & Carry is relaunching its 52year-old Kingsway ownlabel brand of weigh-out sweets, made by some of the UK’s leading manufacturers. In recent years, the label has been developed to include a wide range of jars, children’s and bagged sweets, chocolate bars and seasonal confectionery. Jonathan Summerley, purchasing director, told Cash & Carry Management: “We’re really pleased with how the relaunch of Kingsway is coming together. “It’s a massive task, given the number of confectionery products involved. We have invested heavily in design and creativity.” The Kingsway brand was introduced by Hancocks’ founder, the late Ray Hancock. The name originated from the fact that Woolworths had a Queensway confectionery

brand at that time and Hancock was adamant that his new company would soon have a ‘King’, choosing

his brand Kingsway. The crown logo has received a more contemporary and ‘fun’ style and the label is being clearly signposted in the 20 C&C branches. The operator has also introduced a wooden tree countertop design for its 136 Kingsway lollies, which have a 25p rsp. Tel: Hancocks Cash & Carry (01509) 216644.

Drinks specialist hit North-west London cash & carry/wholesaler HT & Co (Drinks) suffered a reverse in both profit and sales in the

year to 30 September. Pre-tax profit went down by 9.5% to £3.4m on sales 1.5% lower at £218m. Managing director of the Today’s Group member Prakash Thakrar blamed increased competition and the economic situation. Tel: HT & Co (Drinks) 0208965 2428.

Blakemore Fine Foods’ Patrice Garrigues and Caoire Blakemore with the award.

Blakemore recognition Blakemore Fine Foods (formerly Heart Distribution) topped the ASDA enterprise growth category in the Business in the Community Responsible Awards, presented in London last month. Its winning producer growth scheme was said to have helped local producers overcome logistical and business challenges by providing a cost-effective route to market. Tel: Blakemore Fine Foods (01902) 308996.

Appleby Westward delivers on all fronts Record sales figures were achieved by SPAR southwest wholesaler Appleby Westward in the five weeks to early July. Ambient returns rose by 19%, while there was a 15% uplift in chilled & frozen lines. The Saltash-based company, which services nearly 300 symbol stores throughout the region, also reached record service levels over the past 13 weeks – nearly 98.5% compared with 98.2% for the previous corresponding period. Some 99.7% of deliveries of chilled food were made on time in the 16 weeks from


mid-March (against 98.6%), with some weeks recording a 100% level. Managing director Mark McCammond said: “We have maintained service levels above 98% for the past two years and are offering a consistently reliable first-class service. “We introduced a telesales operation in the spring, and that has enhanced our service to retailers. Investment last year in new vehicles to meet demand has also started to pay dividends.” McCammond added that Appleby Westward is also

• Cash & Carry Management • August 2014

focusing on its fresh foods business and hopes to increase its customer numbers. As reported (Cash & Carry Management: April issue) McCammond leaves Appleby Westward next month to

become retail director of Henderson Group. In November he will be replaced by Blakemore’s trading director Mike Boardman. Tel: Appleby Westward (01752) 854000.


news Creed renews food/farming sponsorship Creed Foodservice is a major backer of the Taste of Gloucestershire Food & Farming Awards, sponsored by the Gloucestershire Echo and Gloucester Citizen. Food and drink producers across the county, along with hotels, pubs, and restaurants, have been invited to enter. The prizes will be presented at Cheltenham racecourse in October. Among the guests attending the event’s launch was Creed’s commercial director Karl Goodwin, who commented: “We try to make sure the food we sell has a story. “The food and drink produced in Gloucestershire is of the very best quality and we’re delighted to be the headline sponsor for the awards again this year.” The categories are: best eating-out establishment, best independent café, farmer of the year, best food producer, best drink producer, chef of the year, young chef of the year, young farmer of the year and best local food producer. Tel: Creed Foodservice (01452) 857555.

Creed’s Karl Goodwin addresses guests at the awards launch.

Wholesale award winners Booker excelled at the him! Wholesale Awards 2014, winning three awards: best wholesaler for own label (voted for by both independent retailers and foodservice operators) and best C&C/ wholesaler (foodservice). Brakes received awards for best delivered wholesaler and best telesales staff in wholesale, while other dual winners were Imperial Cash & Carry, of north London. (best wholesaler for customer service and for promotions) and Parfetts (best wholesaler for category advice and engagement, and best C&C/wholesaler (voted for by independent retailers). Other winners were Bestway (best wholesaler for availability – independents and foodservice) and SPAR (best delivered wholesaler – independents). The awards, which followed the Federation of Wholesale Distributors annual conference (see pp.16–17),

were based on the opinions of 7,400 caterers and independent retailers, who were either interviewed in person or on the phone. They assessed companies on such criteria as availability, promotions, own label, events, merchandising, technology, symbol groups and retail clubs. Ken McMeikan, Brakes’ group chief executive, said that winning two awards was “fantastic recognition of the continuous hard work and dedication of our colleagues and also the significant investment we are continu-

ing to make across our whole business for customers.” Imperial’s managing director John Mulchandani commented: “These awards particularly mean a lot to us because they were voted for by retailers. We would like to thank all customers who voted for us for their continuing loyalty and support.” The awards to Imperial were accepted on behalf of the company by Bill Laird, managing director of Today’s Group, of which the cash & carry/wholesaler is a major member. Tel: him! (0845) 072 7667.

Today’s Group managing director Bill Laird (left), who accepted Imperial C&C’s awards, is pictured with FWD chief executive James Bielby.

James Hall integrates IT systems Following its recent acquisitions of forecourt and c-store distributor GAP Convenience Distribution and Clayton Park Bakery, SPAR franchisee James Hall & Co has replaced its IT systems in both companies with BCP’s Accord Distribution solution. The wholesaler services 500 independent and company-owned stores across the north-west from its site on the outskirts of Preston. GAP distributes ‘brandleading’ products to national, independent forecourt and convenience outlets, focusing on motor accessories, toys and foodservice. Clayton Park supplies


cakes, bread and pies to retail and foodservice customers. IT systems were already in place at both companies, but James Hall wanted to standardise systems across its business. The IT roll-out included Accord’s Telesales module, in addition to the purchasing, sales order processing and ledger functionality operating at James Hall. The GAP implementation also included Accord’s Voice WMS, which is used by James Hall. Dominic Hall, the wholesaler’s IT director, said: “It’s early days yet, but Accord is, as anticipated, proving well up to the job and will scale

up easily to handle expansion in all divisions.” Tel: James Hall & Co (01772) 706666. Tel: BCP 0161-355 3000.

Cake deal Irish cake maker Farmbake has extended its agreement with BWG Foods to supply a new range of five products under the SPAR label. It is understood the deal will increase annual turnover of the symbol’s own cakes produced by Farmbake to around 1.2m euros. Tel: BWG Foods (003531) 409 0300.

Cash & Carry Management

• August 2014 • 9

news Intelligent choice for Soho C&C Soho Cash & Carry, a Today’s Group member, has installed a business intelligence system from STL Technology Solutions. The platform, which features customisable dashboards and pre-built templates to increase flexibility and efficiency, is designed to service all of Soho’s reporting needs by enabling managers to monitor suppliers, customers and stock. Bally Bahra, managing director at Soho, said: “To expand profitably, we need an IT platform that is not only highly functional and scalable, but that can help us extract useable, real-time information that will accurately inform our decision-making. I could think of another 100 wholesalers that could benefit from this solution.” Tel: Soho Cash & Carry (0844) 472 4727.

Coca-Cola deploys virtual assistant in Dhamecha depots Coca-Cola Enterprises (CCE) has unveiled an innovative digital shopper marketing trial to engage retailers and drive awareness of its 2014 ‘Share a Coke’ campaign. Using technology from digital specialist Tensator, CCE has created a new virtual assistant, called ‘Isabelle’, which will feature exclusively in selected Dhamecha Cash & Carry depots in London this summer. Dressed in Coca-Cola branded clothing, Isabelle informs customers about the success of the campaign to date, suggests how retailers can maximise shopper interest in their stores, and plays the new ‘Share a Coke’ TV advert. Simon Miles, digital director at CCE, said: “Digital shopping marketing innovation, such as ‘Isabelle’, is a creative and fun way to reach our customers with the

campaign and is a piece of digital innovation that we’re excited to bring to the market to build on the success of last year’s ‘Share a Coke’ campaign.” Mukesh Vithlani, trading director at Dhamecha, commented: “We’re always looking for fresh ideas to inspire our customers and this

Premium brand focus for spirits The annual spirits and Champagne report, from William Grant & Sons UK (previously known as First Drinks), has revealed that premium brands continue to outperform the sector in both the on and off-trade categories, with premium gin growing at six-and-a-half times the rate of mainstream alternatives. The report, unveiled at Grant & Sons UK’s conference last month, highlights the growth of scarce and desirable products, with limited-edition lines and added-value experiences proving increasingly popular


as consumers are exposed to more choice. Gary Keogh, marketing director at William Grant & Sons UK, says: “The market is more polarised than ever before and it is premium brands that can really take advantage of this trend.”

• Cash & Carry Management • August 2014

Immersive experiences remain a key brand engagement tool, according to Keogh, with many high-end brands excelling at offering drinkers interesting serves, personal touches and quality experiences. Figures show that premium spirits continue to drive market growth, particularly in the on-trade where value has risen by 13.7%. In the off-trade, value has increased by 6.4%, outperforming the growth of nonpremium spirits which are up by 4.5% (CGA Strategy). Tel: William Grant & Sons UK (01256) 748100.

technology from CCE is one of the most innovative we’ve seen. We’re looking forward to seeing Isabelle have an impact in our depots and engage with retailers on a great sales opportunity for them.” Tel: CCE (08457) 227222. Tel: Dhamecha Cash & Carry 020-8903 8181.

New Sunday service Oriental grocer Wing Yip has launched a Sunday distribution service and slashed the cost of its Saturday deliveries by 40%. Brian Yip, director of Wing Yip, told Cash & Carry Management: “We are seeing a significant uplift in our online shopping business and we want to make our service as convenient as possible.” The revamped daily service now features a set weekend rate and will cost customers £14.90 for orders up to 30kg. Tel: Wing Yip 0121-327 6618.


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in focus

Christmas ‘pure and simple’ With temperatures soaring and people flocking to the seaside, the summer feel-good factor shows no signs of stopping. But behind the scenes at Bidvest 3663, the festive season is already in full swing. Perhaps it was the sunshine glistening through the windows, or the sound of the air conditioning whirring in the background, but the prospect of flicking through a Christmas brochure, rather than a holiday magazine, seemed almost incomprehensible amid the sweltering temperatures outside. Indeed, the irony was not lost on representatives from Bidvest 3663, as a selection of festive tableware and crackers greeted visitors to their Swithenbank Fine Food offices in Mayfair last month. Thankfully though, the Christmas decorations were kept to a bare minimum, as campaign and activation manager Gail Bridgeman showcased over 50 new lines in the group’s 2014 Christmas range. From a festive selection of allergen-free starters and desserts to canapés and tableware items, the products displayed were a far cry from the fast-food ‘delicacies’ being consumed less than 100 metres down the street. But as Bridgeman explained, nutritional and budgetary requirements have necessitated a more innovative approach to all product launches this year. “Our message in 2014 is to give our customers the best offers, the best products and the best service to make Christmas pure and simple,” said Bridgeman. “Our new dishes are designed to help caterers offer something to excite their diner. This year we have included products such as Atlantic salmon which is cooked on a cedar plank to deliver a delicious taste and great foodie theatre. “We have also put a twist on traditional classics, for example the 3663 black forest brownie cheesecake mixes – two popular flavour combinations to help create a real point of difference.” Responding to a survey by YouGov which revealed that 4% of adults do not eat meat or fish, Bidvest 3663 has nearly doubled its vegetarian range this year and also extended its

‘Our message in 2014 is to give our customers the best offers, the best products and the best service to make Christmas pure and simple’ – Gail Bridgeman.


• Cash & Carry Management • August 2014

gluten-free options to 282 to cater for health-conscious consumers and those suffering from allergens. Across its product range, four new crackers and nine tableware designs, including children’s, deluxe and sustainable options, have been added at different price points, while a new individually-portioned buffet range has been introduced to reduce preparation time and minimise waste. “We’ve taken on feedback from customers to ensure we can meet every chef’s and caterer’s needs this Christmas,” added Bridgeman. “Remaining relevant and adhering to different planning cycles is key and this year we have launched the Christmas range online three months earlier than ever before. This builds on the success of our ‘Taste of Summer’ campaign, which 70% of customers said they either ‘liked’ or ‘loved’. “We understand that Christmas is the busiest time of year for many chefs and caterers, so it was important to unveil our website and brochure at the same time and make sure our customers have access to printed or online material now.” To supplement both launches, Bridgeman revealed that customers will receive a deals brochure containing 60 promotions, as well as several recipe cards, a turkey and meat cooking guide and wine recommendations from the group’s drinks division ViVAS. Fifteen exhibitions will be held at local depots throughout September and October, while customers will be able to take advantage of a one-day delivery service to accommodate late bookings. And with over 340 products to choose from, Christmas really has come early at Bidvest 3663.










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‘I never accept the norm’ This month’s article features Craig O’Connor, managing director of Dee Bee. What has been the major milestone or turning point of your career? The acquisition of E&S Dunns in Birmingham by AF Blakemore and Son back in 1984. Blakemore strongly believed in developing people within the business, and in a matter of weeks I had been invited to go on a six-month management course. I did well, and very quickly moved up the career ladder. Who has been the biggest inspiration to you? I have had many mentors over the years, but Tony Salisbury, managing director at the time for Blakemore, was, without a doubt, the catalyst of my long career in wholesale. He was a really good leader – he led by example, believed in people and got the best out of them. I still ring him now, even though he’s retired. I also continue to take inspiration every day from everyone I have the pleasure to work with, whether that be colleagues at all levels or customers.

Christmas job was the start Craig O’Connor remembers the exact date he started his career in wholesale – it was 7 December 1979 when he joined E&S Dunns in Birmingham, working part-time in the cigarette kiosk over the Christmas holiday period. He was asked to stay on, which he did, and he was soon promoted to manager of the tobacco part of the business. E&S Dunns was acquired by Blakemore in 1984 and O’Connor worked his way up the career ladder, taking on various management roles within the Blakemore Group. He was marketing manager non-foods when he left in 2004 to join Dee Bee as sales director. One year later, he took on his present role of managing director, and the company has experienced substantial growth ever since.

How do you maintain a work/life balance and how have developments in technology affected this? Smartphones have made a fantastic difference to how we do business and communicate with the business and our customers. There is nothing wrong with smartphones. Having a strong management team around you will allow you to easily manage the work/life balance. What most frustrates you in business and in life generally? I love what I do and have done for over 35 years now. The biggest frustration is probably myself as I never accept the norm. I am always looking to see how we can do things better. If you were able to retire tomorrow, would you, and if so, how would you spend your time? Knowing me, probably not, as I just love wholesale and my customers. However, if I did I would definitely travel the States in an RV (recreational vehicle). What advice would you give someone starting his/her first job? Work hard and have an aspiration in life – we reap what we sow. What type of business would you have gone into if it wasn’t C&C/wholesale? This is a tough question when we work in such a dynamic and exciting sector. At school, I hadn’t considered a career in wholesale. My best friend’s dad had a painting and decorating business, and in the holidays – from the age of 13 – I would help him out. And before I took on the part-time job at E&S Dunns, I had wanted to do something with electronics, but then Dunns asked me to stay...

Craig O’Connor with his five-year old dog Maddy.


• Cash & Carry Management • August 2014

If you had a million pounds to invest in business, how would you spend the money? I would take advice from my colleagues on Dragons’ Den!


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%)

Total cost

Supplier Sales Executive of the Year

To book accommodation at the special SWA rate, contact Yvonne Cashin at YCashin Events. E-mail: ycashinevents@aol.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

fwd conference The wholesale industry’s value is predicted to grow to £32.2 billion by 2018 (IGD)

Growing together: a match-winning strategy for the FWD Just over a month after the England football team concluded their World Cup preparations at the National Football Centre in Burton-on-Trent, nearly 300 wholesalers and suppliers took temporary residence at St George’s Park Hilton hotel for the Federation of Wholesale Distributors’ annual conference. With football memorabilia adorning the walls and rivalling FWD chairman Martin William’s (pictured above) impressive personal collection, the ‘Goals for Growth: Match-winning Strategies for the Wholesale Channel’ tagline for the event paid homage to its surroundings, while several speakers accentuated a wealth of opportunities for the industry. In keeping with the football theme and metaphors, FWD chief executive James Bielby revisited two conferences which had previously coincided with the World Cup – 1966 and 1990 – and spoke about some of the topics which are still prevalent today. Focusing on the FWD’s commitment to tackle key lobbying issues such as alcohol, crime, food, environmental, health and tobacco, Bielby revealed that the Federation aims to raise the profile of wholesaling to provide a “credible and valued voice in Westminster”. Although Bielby (right) admitted that “crime is still an issue for members, both in depot and in transport”, he announced that the FWD has had a number of meetings with James Brokenshire MP, minister for security and immigration, to help improve police response to crime – a tactic he later described as a “real win for members”. Addressing the health agenda, Bielby stated that the new Food Information to Consumers legislation will go live on 13 December and he divulged that the Federation is “working closely with Defra and the Food Standards Agency to talk about wholesale-specific guidance”. After championing the success of its round-table events last year to tackle business issues such as the national minimum wage and Sunday trading, Bielby unveiled how the FWD plans to promote the sector in the next 12 months.


• Cash & Carry Management • August 2014

“We are working closely with Capital Economics to put together some sector research on the role and contribution of the wholesale sector both directly and indirectly,” Bielby announced. “We will be using those findings to make representations to government and other stakeholders to say this is a key part of the economy and should be recognised as such.”

Championing the industry Provisional results from the industry’s first all-inclusive survey, which were unveiled by Mark Pragnell, head of commissioned projects at Capital Economics, revealed that the wholesale distribution sector has a £30 billion annual turnover, with a £36.5 billion source value chain. Citing the amount of photocalls and visits that politicians make to the ‘big four’ multiples, Pragnell argued that “the establishment easily forgets about a sector which has lots of independent stores and supports half a million jobs in the value chain – the biggest in the marketplace. Consequently, Pragnell believes the report will demonstrate the socio-economic value of the wholesale channel to “politicians, the media and opinion-formers”, while also generating “more voice in important discussions which influence regulations and legislations”. Angus Macdonald, vice president of sales at PepsiCo UK, commented: “The opportunity within the wholesale/convenience sector is huge and we are now seeing a big shift towards the discount channel and retailers like Waitrose. This is presenting a huge challenge to manufacturers like PepsiCo whose resources are focused against no-growth and low growth parts of the marketplace.” As a result, Macdonald recommended that suppliers “switch focus towards emerging and growing channels”, with discounters and convenience stores expected to rise to £8 billion and £12 billion respectively in the next five years.


fwd conference

Craig O’Connor, Dee Bee

Tom Lynch, CGA Strategy

‘Understanding each other’s needs and utilising technology can help to bring wholesale together’ – James Bielby, FWD

Noting that the power balance has shifted from major retailers to the shopper in recent years, Macdonald pointed to recent technological advancements and the success of data resources like Tesco Clubcard as an opportunity to leverage growth and increase revenue streams. “We [PepsiCo] are myopically focused on the shopper and have worked with a number of retailer partners to ‘follow the shopper’ using iTracking technology and understand how they shop in-store and online and how they respond to promotions,” added Macdonald. “But it’s important that we don’t treat data as just a revenue stream and I encourage manufacturers and wholesalers to partner up and uncover where the greatest opportunities are. Sharing data is critical not only for merchandising and promotional solutions, but also for improving retail discipline in store and ultimately giving shoppers what they want.” Macdonald’s views were echoed by Craig O’Connor, managing director of Dee Bee, who declared that wholesalers must “embrace technological change”, as more retailers place an emphasis on customer relationship management systems to provide long-term benefits to their customers and suppliers. Since acquiring Re-Scan EPoS Company in 2006, Dee Bee has doubled its turnover and O’Connor cites one customer “who grew from £12,000 a week to £28,000 a week after installing an EPoS system”. And with retailers becoming more time-rich and data hungry, O’Connor highlighted the benefits of introducing loyalty apps, mobile vouchers and proximity marketing strategies via Bluetooth to compete against the major multiples, while also taking advantage of the 79% of consumers who use phones for shopping. Tom Lynch, commercial director at CGA Strategy, believes a rise in premium products, together with familyorientated and female-led purchases, has redefined the foodservice channel, with 9% growth in new restaurant openings


last year offsetting an average of 26 pub closures every week. Despite the tough economic climate, the eating out-ofhome market has remained “pretty resilient”, according to Lynch, with 43% of consumers eating out a least once a week. But with a rising number of consumers exhibiting greater selectivity in their buying habits, Lynch claimed that the foodservice channel needs to replicate “the sophistication and rigour of the grocery channel” to meet its potential and grow from an £80 billion market to £90 billion by 2018 (CGA). “A total of 50% of customers use more than four different suppliers at one time so there is a high degree of promiscuity about what they are ordering,” explained Lynch. “We need to find the incremental value that will help customers build their business, which will certainly pay dividends in terms of loyalty and sustainable sales. This can be achieved through data, genuine partnerships through collaboration, and meaningful business intelligence.” Citing a discussion with 130 CEOs from hospitality businesses who identified transport pubs, cut-down express stores and smaller versions of existing concepts as real areas of investment in the next 12 months, Lynch suggested that wholesalers and suppliers will need to build solutions that address operational challenges such as tighter loading bays and limited kitchen capabilities. Lynch’s recommendations correspond with Brakes’ chief executive Ken McMeikan’s belief that cohesiveness and technology are “crucial” to improving the overall shopping experience for customers. Highlighting Brakes’ £850 million sales through e-commerce, McMeikan urged more wholesalers to recognise the growth potential from investing in IT services. “We are in an industry where relationships are key and many suppliers need to become part of the modernisation in e-commerce by sharing their knowledge and leading the change,” he said. “As an industry, I believe we have a lot to learn from retailers regarding e-commerce. “Brakes and other foodservice businesses have been working with GS1 to adopt a consistent industry database solution to collate and standardise information and I would encourage suppliers to support this approach by maintaining their product information via GS1. “Reputations are won and lost based on visible action and we are investing £250 million over the next five years to create an industry-leading model in terms of network and infrastructure that will deliver Ken McMeikan, Brakes what customers want,” he concluded. Provided the industry addresses these shortcomings and shares James Bielby’s view that “understanding each other’s needs and utilising and developing technology can help to bring wholesale together”, then it will be hard to argue with Martin Williams’ closing statement that “wholesale is a great place to invest in for suppliers”.

August 2014

Cash & Carry Management


employment law

Probation: pass or fail? Human resources expert Cate Ritchie (below) highlights the issues surrounding the use of probationary periods for new employees. Almost one-fifth of all new employees either fail their probationary period or have it extended, according to a recent survey. The study asked 403 managers to provide a list of the reasons why they had ever failed an employee’s probationary period. Only 13% reported they had never seen an employee fail their probationary period. The top reasons that employees do not successfully complete their probationary period all relate to the employer having doubts about whether the employee can do the job or whether they fit into the workplace. The most common reasons for managers not passing an employee’s probationary period are: 1. Poor performance – named by 62% of employers 2. Absence (approximately 50%) 3. Lateness (approximately 25%) 4. Gross misconduct (approximately 30%) 5. Sickness (approximately 30%). It is interesting, but not surprising, to see sickness on the list, and in most cases an employer will be able to dismiss for poor attendance during the probationary period. Employers do need to be careful, though, that the absences are not disability related, which could give rise to a claim under the Equality Act. The study also surveyed around 1,500 employees about their experiences of probationary periods. A total of 22% said that they put in more effort during their probationary period than they do when they have passed it. However, employees also feel under pressure during the probationary period. Around 50% say they felt ‘insecure’ and around 25% felt ‘worried’. Even if a company does not feel able to pass an employee’s probationary period, the research shows that 80% will be prepared to extend it to give them more time to come to a decision. Despite the scope of the survey, Spring Personnel reports that the majority of employees it asked had positive experiences of probationary periods. Probationary periods are a very useful tool for employers when assessing a new employee’s performance. However, it should be remembered that employees now require two years’ service before they can raise an unfair dismissal claim. This means that an employee does not enjoy much by way


• Cash & Carry Management • August 2014

of job security until they have been with their employer for two years. Employers have been known to consider that it is more difficult to dismiss an employee once their probationary period has expired. That is not generally the case, and provided that the employment is terminated more than one full week before the employee acquires two years’ service then, in most cases, there will be nothing the employee can do. If you need further guidance in this area, or if you wish to talk to Cate about any other HR issue, contact her at cate@121hrsolutions.co.uk or phone (0792) 121 3890.

Older workers key to economy The Government’s new measures to support the economy, workers and businesses are set out in Fuller Working Lives – A Framework For Action, which has just been published. The plan suggests that the economy could have been boosted by £18bn in 2013 if the employment gap between people in their 40s and those aged 50 to state pension age was halved. Pensions minister Steve Webb said: “Older workers have a huge amount to bring to any workforce and are a vast untapped talent. We are living longer and can expect many more years of healthy life. It’s great news but it’s something that as a society and as an economy we need to respond to. “As part of building a fairer society, I am determined that we boost our support for older workers and help employers challenge outdated perceptions to see the real strengths of this important section of the workforce.” New measures and action include: Extending the right to request flexible working to all employees in June 2014. The appointment of an Older Workers’ Employment Champion, a respected and independent-minded figure who will advocate the case for older workers within the business community and wider society. The launch of a new Health and Work Service, which will give workers with long-term health problems the support they need to stay in or return to work. Part of the Government’s aim is to challenge outdated misconceptions and encourage more employers to consider the benefits of older workers. According to Office for National Statistics estimates, in the next 10 years there will be 700,000 fewer people aged 16-49 but 3.7 million more people aged between 50 and state pension age – a fundamental shift in the age distribution of the UK workforce that industry cannot ignore. The announcement builds on previous measures over the past four years to tackle age discrimination in the workplace. These include the removal of the default retirement age, making it illegal to dismiss a person simply for turning 65.

• • •


supplier strategy

Investment and innovation: Burton’s recipe for success Founded: 1935 Employees: over 2,200 Website: www.burtonsbiscuits.com Head office number: (01727) 899700

Did you know: Ontario Teachers’ Pension Plan acquired Burton’s Biscuit Company for an estimated £350 million in November 2013.

Burton’s Biscuit Company in numbers • Maryland is the number one cookie brand in Europe and is purchased by 32% of all UK households. • Limited-edition Cadbury Creme Egg Biscuits generated £2.7 million sales in 16 weeks between January and April 2014. Cathedral City Baked Bites and Fish ‘n’ Chips added £4.9 • million to the savoury biscuits category and amassed £1.4 million in convenience sales during the first half of 2014. What’s new this summer The UK’s leading premium biscuit manufacturer has extended its multi-award-winning Cadbury Special Occasions Biscuit collection, the fastest-selling range of new products ever introduced into the UK (IRI), with the launch of Cadbury Wispa Biscuits. Merchandised in shelf-ready cases of 12, the 124g packs have an rsp of £1.79 and are supported by a £250,000 through-the-line campaign and in-store PoS and merchandising activity. The new release follows the launch of Jammie Dodgers Berry Blast into the treats segment, as well as a £14.75 million investment in Burton’s manufacturing operations to increase outlay and enhance new product development.

Table data: him!

Plans for the future To help minimise risk and outlay for cash & carries, Burton’s has unveiled plans to reduce case sizes across all core brands later this year. In the meantime, a plethora of Halloween and Christmas-orientated price-marked packs

Shopper dynamics

Biscuit shoppers

Conv. average




Basket size



Bought on impulse



Bought on promotion



A £2.4 billion market, biscuits are bought by 99.2% of households (Nielsen)

and NPDs are scheduled for the autumn, and will be supplemented by a new impulse range to capitalise on the growth of on-the-go consumption. Burton’s advice for wholesalers • Reflect all shopper missions and separate treat, biscuit barrel and biscuit portion items into categories. • Focus on treat biscuits to maximise impulse purchases and differentiate from discounters and supermarkets. • Support retailer education through depots and retail clubs. • Use beacon brands that display affordable price points and incorporate PMPs for added reassurance. The wholesaler’s view “Burton’s provides a lot of retail club activity and our members are receiving more bespoke deals than from any other manufacturer” – David Lunt, senior business development manager at Confex. “Burton’s has been very proactive with new product developments and, from our perspective, it is reaping the rewards with a strong sales increase. It has been outperforming the category for quite a long time now and is currently 20 points ahead of our total biscuit category” – Martin Williams, managing director of Landmark Wholesale. Unique selling point David Costello, Burton’s head of customer category management, says: “Our strategy is all about investment and innovation and that is the secret to our long-term success. The feedback we have received from our customers has been phenomenally positive and we plan to sustain investment in our luxury brands to capitalise on 45% of total biscuit sales which are impulse-driven treats, as well as the growing savoury category.” All data unless otherwise stated: Nielsen.


August 2014

• 19

oral hygiene update

Constant rate of change The oral hygiene category is driven by innovation, something wholesalers must be mindful of. The total mouthwash category is worth £148m. Within the wholesale and convenience market it is valued at £2m and growing by 4% annually. Listerine Mouthwash is owned by Johnson & Johnson, with SHS Sales & Marketing contracted to sell and distribute the brand in the wholesale channel. Listerine is the UK’s leading mouthwash brand, worth over £72m at a total retail level and generating over £1.4m in sales within the wholesale and convenience channel. The brand accounts for almost 70% of mouthwash sales within convenience stores, a figure that is growing by over 10% annually. Although mouthwash is not traditionally a core category for wholesalers or retailers, the strong performance within the convenience channel demonstrates that shoppers are buying the product in their local stores. Johnson & Johnson identifies key consumer trends and develops preventative in-home treatments and products that have multi-functional use, such as Listerine Total Care and Listerine Coolmint. Within the mouthwash category, the recommended range for retailers will vary based on the size of their store and fixture, so for wholesale depots it is important to stock a broad range of products that cater for the different needs of each retailer. Once these regular products are stocked, wholesalers can add value to the range by stocking lines that start to cater for more specific or multi-functional needs. For example, Listerine Fresh Burst addresses a number of different oral hygiene concerns, such as fighting plaque and keeping breath fresh, while Listerine Zero appeals to shoppers who prefer a less stringent taste or want a product that doesn’t contain alcohol. By providing a range of formats and pack sizes, depots can be sure they are catering for the different needs of retailers. Also, retailers visiting a depot will want to purchase all their dental care products from the same bay to ensure that they have covered all the dental needs of their customers. They need to be able to locate the products they want to purchase quickly and easily. Within the bay itself, all dental health products should be merchandised together to encourage cross-purchasing. SHS Sales & Marketing has represented Johnson & Johnson in the convenience sector since 2009 and has recently been appointed to manage its oral care, baby care and medicine brands for the entire convenience channel.

‘Eat, drink, chew’ The Wrigley gum portfolio, which is worth £260m, is performing ahead of the total £280m gum market, with sugarfree brands Extra and Airwaves driving this growth. Sales of Extra, and in particular Extra White, are continuing to grow, with the latter currently worth £39m. Extra has a leading 71% share of the UK gum category. Sue Cobbledick, oral care marketing manager, says: “The trend towards sugarfree gum is growing and we expect this to continue as chewers seek out a healthy addition to their day-to-day oral care routine. This is why over 95% of Wrigley gum brands are sugarfree and accredited by the British Dental Health Foundation.” Wrigley has extended its number one gum brand with the launch of Extra Ice Citrus, which has a fresh taste and strong oral care credentials. Wrigley’s Extra 46-pellet bottle celebrated its first year on the market, and to mark the occasion Wrigley extended the range with a new flavour, Extra White Bubblemint. The trend for snacking at work and eating and drinking on the road has been key to the bottle’s success. According to Wrigley online customer tracking, almost half of shoppers chew gum. “Eating habits are changing from three square meals a day to more frequent snacking – a reflection of how busy lives are,” Cobbledick explains. “The European Commission has approved oral health claims for sugarfree chewing gum, one of the few food categories to gain such recognition. “Our ‘Eat, Drink, Chew’ strategy aims to encourage consumers to chew sugarfree gum whenever they eat or drink to help remove lingering food and keep teeth clean. “It is important for retailers to understand that gum is a healthy option to stock at the till point. It isn’t just good for your teeth, it’s good for impulse sales too.” All data: Nielsen.

For further information: SHS Sales & Marketing (01452) 378500 Wrigley (01752) 752094

All data: IRI.


• Cash & Carry Management • August 2014


RTDs update

Revolutionising the market With the premix alcohol segment experiencing 14% value sales growth year on year in the off-trade (Nielsen), the RTD category continues to command significant investment as brands look to capitalise on evolving tastes and trends. The ready-to-drink (RTD) category, which is worth £50.8 million a year in revenue for impulse stores, posted a 5% increase in value sales in the 13 weeks to 21 June compared to the same quarterly period in 2013 (Nielsen). SHS Drinks report that there has been a “massive category uplift” in sales of 10-pack formats and price-marked packs, with its WKD Blue and WKD Iron Brew PMP 275ml four-packs increasing sales by 46% and 27% respectively since being launched last year (Nielsen). The growth, which has seen convenience shoppers trading up from single bottles to larger pack formats, has also coincided with a “rise in hybrid sub-sectors”, according to Debs Carter, marketing director – alcohol at SHS Drinks. “With the emergence of spirit-flavoured beers and ciders following in the wake of pre-mixed spirit and cocktail launches, category boundaries are now becoming blurred and this crossover is occurring throughout the FMCG market,” explains Carter. “The increasing popularity of using RTDs in cocktails is probably one of the biggest recent drinks trends and is all part of the consumer’s quest for exciting new flavours. “This trend is good news for retailers and wholesalers as it provides the opportunity to generate incremental sales from the spirits and mixers used to make RTD cocktails.” Last month, SHS Drinks relaunched its WKD ‘Mix It Up’ cocktail-themed pack to capitalise on the rising popularity of the ‘big night in’ occasion. The release, which has an rsp of £11.99, replaces the WKD mixed pack and features two 275ml bottles each of WKD Blue, Red, Iron Brew, Green and limited-edition Brazilian. Carter concludes: “RTD consumers are always on the lookout for new flavours, so refreshing the range with new lines and limited editions does pay dividends for cash & carries.”

Did you know? WKD is the broadcast partner for The Only Way Is Essex (TOWIE)

Keeping cool for the summer Diageo, whose ready-to-drink portfolio experienced doubledigit growth in 2013, has invested in the frozen alcoholic cocktails segment by launching single-serve Smirnoff Sorbets and ready-to-drink frozen Smirnoff Apple Bite and Smirnoff Ice pouches. Building on the success of Parrot Bay, whose ‘freeze and squeeze’ cocktails delivered 61% incremental growth to the total beverage alcohol market last year, the range represents the first time Diageo has frozen a drink that already exists within a brand’s portfolio. Louise McKerrow, brand director for Smirnoff Western Europe at Diageo, says: “We believe in the huge potential of the ‘freeze and squeeze’ frozen alcoholic drinks market and foresee massive growth in this sector. “Shoppers are looking for fresh, interesting drinks to try themselves and serve to friends, and during consumer tests, 87% found the Sorbets appealing.” McKerrow continues: “Smirnoff Sorbets and frozen Smirnoff Ice and Smirnoff Apple Bite provide a truly unique and inventive drinking experience from the world’s number one spirit brand.” The Sorbets, which have an rsp of £2.99, are available in Raspberry, Mango and Lemon flavours, while the frozen drinks replicate the same price structure and are packaged in an easy-tear pouch to appeal to passing trade. All data unless otherwise stated: Nielsen.

For further information: Diageo 020-8978 6000 SHS Drinks (01452) 378555


• Cash & Carry Management • August 2014


refresh your sales with with 7 great tasting, low calorie flavours and vitamins to help your customers be their best, it’s no wonder it’s the uk’s no.1 functional water brand.* delicious with lunch, or refreshing on-the-go, make sure you’re well stocked this summer.

 low calorie – 65kcals per bottle  all natural flavours  no artificial colours  stock up now!

‘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. ‘functional water’: a water containing additives that provide extra nutritional value. *Nielsen: Multiples value MAT to 03.05.14


Sign of the times Quantity means quality in a category which increasingly demands that products prove their health and provenance credentials.

Yorkshire Tea has a 19% market share.

Taylors of Harrogate is committed to developing the hot beverages category, which is worth nearly £630m. John Sutcliffe, out-of-home & convenience controller, says: “We continue to support the cash & carry and wholesale channel with consumer favourite Yorkshire Tea – the only growing tea brand out of the major brands (up 5% in grocery and 8% in convenience), and Taylors Coffee, the number one roast and ground coffee range. “We are also driving innovation in the category with a new Kew Gardens fruit & herbal range, which is helping to drive a market that grew by 7.4% last year.” Taylors commissioned independent research on consumer attitudes to tea – 57% believe the tea served out-ofhome is too weak (Toluna). “Armed with this knowledge, we have created a campaign that launches in September to promote the benefits to operators of stocking a proper brew and drive demand with outof-home customers,” says Sutcliffe. “It is vital for cash & carries and wholesalers to stock not only the bestselling lines, but also the brands that are investing in advertising and have that awareness with retailers and consumers,” he adds. Taylors of Harrogate is investing £5m in marketing over the next 18 months for Yorkshire Tea. Furthermore, says Sutcliffe, there needs to be a real focus on having a quality offer and a willingness to invest to get this quality. “Consumers out of home now expect to replicate the quality and the brands they buy for in home. Yorkshire Tea is one of the nation’s most loved teas and 63% would buy the brand when out of home (Toluna).” All data Nielsen unless otherwise stated.


• Cash & Carry Management • August 2014

Frozen food manufacturer Classic Cuisine’s latest offering focuses on a new range of seafood dishes. Mark Dean, sales director, explains: “Having a variety of seafood dishes to choose from that are healthy, costeffective and appetising should be a priority for the foodservice industry.” White fish like cod and haddock are popular choices, making up more than 80% of total spend in the foodservice industry. The National Restaurant Association and The US National Restaurant Association have predicted that locally sourced meat and seafood are the number one culinary trend for 2014. New product development chef Paul Hunt says: “Nostalgic dishes like quiches, roulades and terrines are reappearing on menus. Experimentation with the use of flavours within sponges and pastry is a trend that is becoming incredibly popular. “We have found that there’s a range of core products that customers seem to choose again and again. We call them Hero products. From beef wellington to fish pie and many more, our range of Hero products emphasises our strength in the frozen ready meal sector.”

Meeting government expectations Nestlé Professional has signed up to the F9 Salt Reduction 2017 pledge – the latest Government Responsibility Deal to help consumers further reduce their salt intake, which was officially launched in May. The initiative from the Department of Health sets new targets for salt reduction across 76 specific food categories to be met by 2017. By signing up to the pledge, companies are committing to support consumers in reducing their salt intake to a maximum level of 6g a day for adults, as recommended by the Scientific Advisory Commission on Nutrition (SACN). Neil Stephens: ‘Nestlé Nestlé Professional is one of Professional is committed to the first major foodservice comsupporting its customers panies to sign up to the new through product innovations that meet government pledge, which replaces the old F2 expectations.’ promise. Neil Stephens, managing director, says: “As part of our commitment to adding value to customer businesses, Nestlé Professional also offers online nutrition training to drive awareness of the issues and solutions across the industry.” The company aims to meet the targets within three years of signing the pledge.


Professional Cleaning Solutions for Catering

Specifically designed for Professionals Powerful Professional Cleaning with Trusted Brand Names • • •

Complete Range - Products covering the vast majority of application areas of Kitchen, Washroom and General Cleaning Well Known Trusted Brands - Integrating Cif, Domestos, Sun, Persil & Comfort under the umbrella brand of Diversey's Business Solutions Professional Formulations - Created using Diversey's market leading expertise specifically for the professional user • Gives excellent results first time • Designed for daily, periodic and problem-solving tasks • Perfume-free products for food preparation areas • Utilises Diversey's Odour Neutralising Technology

catering Tailored solutions Business Solutions by Diversey – a division of Sealed Air – is an integrated range of branded products designed specifically with businesses in mind. Using Diversey’s expertise in cleaning and hygiene solutions coupled with well-known and trusted brands such as Cif, Persil, Domestos and Comfort, Business Solutions aims to provide professional results to speed up working processes, and reduce rewashing, returned dishes and general customer complaints. The range also includes products with new formulations for specialist cleaning tasks, such as perfume-free variants for use in food preparation areas. Many of the products also incorporate Diversey’s patented Odour Neutralising Technology (ONT) that removes smells chemically rather than masking them with strong perfumes. The new Suma Cafe range of The silver banner cleaning products from Diversey identifies the product as Care is a complete set of easypart of the Business to-use cleaning products for all Solutions family. common types of coffee machines. Products are supplied as tablets or liquids in colour-coded packaging to ensure the right amount is always used. The Suma Cafe range has been certified by NSF, the internationally-recognised public health and safety organisation, to meet stringent health and safety standards. Products also carry Halal and Kosher certifications. Diversey Care has developed a set of user guides, which explain how to clean each type of machine. All Diversey Care products are phosphate-free and manufactured using environmentally safe protocols. The packaging is 100% recyclable and labels are printed digitally to reduce emissions.

Premium ‘street food’ offerings This year sees hot dogs listed on 85% more catering menus nationwide compared to last year. Hot dog brand Empire Dogs believes that this is because they offer convenience, while gourmet versions can help meet a more premium consumer demand. Founding director Mark Yates comments: “Highlighted in the Allegra report, street food is still driven by consumers wanting authentic, locally-based food and Empire Dogs’ pioneering recipe of 100% British hot dogs – made entirely from the finest cuts of Red Tractor farm-assured pork, beef and chicken, blended with exotic spices – is truly unique, and can help grow incremental sales.” For wholesalers, Empire Dogs offers an extended range,


• Cash & Carry Management • August 2014

including Bratwurst, Frankfurter, Cajun Chicken, Chicago Beef, Cumberland and Chorizo. These are presented in a variety of sizes including 35g, 55g, 80g and 140g. The Empire Dogs Bratwurst was awarded gold for Foodservice Pork Sausage of the Year 2013 and picked up the special award for the Most Imaginative Sausage of the Year 2013 at the British Pork Executive (BPEX) Awards. Empire Dogs believes that operators looking to sell meatfilled street food style dishes must consider the increasing pressure to offer reduced fat and salt options. With fewer than 350 calories (including the bun), Empire Dogs has 50% less fat content than any other brand on the market, virtually no salt, and is free from preservatives, additives and colourings. Wholesalers can decide to sell the portable and on-the-go Empire Dogs option. The foodservice packs include individual hot dogs in a double-glazed, brioche-style roll, prepacked in on-the-go cartons. For customers who deal with higher volumes, the vacuum-packed catering packs contain nine hot dogs, with 20 packs per case, 30 cases per pallet. They can be warmed in a bain-marie over a sustained amount of time, and are ready to serve instantly.

Partners in pudding The revival of ‘retro’ desserts like sticky toffee pudding, spotted dick and apple crumble has created a profitable opportunity for pubs, and Kerrymaid is helping operators cash in on the trend with its new Pudding Party initiative. Pudding Parties offer customers the chance to taste a selection of seven to eight desserts in one sitting, then rate them according to taste and appearance – encouraging discussion and driving footfall and sales. Kerrymaid has launched an online resource to support licensees in hosting these events. The website includes a range of recipes from brand ambassador Sophie Wright, free downloadable PoS materials, and marketing tips and advice Publican David Thompson preparing puddings in the pub’s kitchen. on running a successful Pudding Party. Licensee David Thompson from the Old Wine Vaults in Faversham, Kent, hosted his first Pudding Party to a sold-out crowd, and has now established it as a permanent fixture in the calendar, earning a gross profit of 60%. Thompson told Cash & Carry Management: “Our firstever Pudding Party was a great success. It generated extra footfall and revenue on an otherwise quiet night. We have already taken bookings for the next three months, which we have promoted using the free PoS downloaded from the Kerrymaid website.”



catering Kellogg’s has made five of its leading cereal skus available in portable pots. They are Kellogg’s Corn Flakes, Krave, Special K, Crunchy Nut and Rice Krispies, all at an rsp of 99p. Nick Dawson, UK customer director of specialty channels, says: “The extension of our single-serve cereal range means that caterers now have a range of formats available for shoppers, whether they are consuming at the point of purchase, or eating on the go.” Kellogg’s is also continuing to sell its popular portion packs, which are mini cereal boxes containing individual portions. “Portable breakfast is a growing trend, with category value sales up 28% year on year,” Dawson adds. “The introduction of our cerealto-go pots will help fuel further category growth for the catering channel as insight reveals that a convenient cereal product is missing from the current breakfast on-thego portfolio. “While porridge pots and sachets have been hugely successful over the past few Portable breakfast is a growing trend. years, we know that the relative size of the ready-to-eat cereal market is six times greater than porridge, at £1.3 billion.” Cereal-to-go pots are available in cases of eight, which means a lower investment for space and cash-conscious caterers, and allows them to stock a broader range of brands. All data: IRI.

On-trend flavouring DaVinci Gourmet’s Honeycomb syrup is the latest addition to the company’s portfolio. Brand manager Steph Goldie says: “Dessert flavoured drinks are growing in popularity, as many customers choose them as a way of enjoying a delicious treat, while not overindulging. By introducing this classic British flavour we have tapped into the ‘dessert beverage’ crossover trend, allowing baristas to create seasonal or limited-edition drinks.” Available in one-litre bottles, Honeycomb syrup provides approximately 62 (12oz) servings. Burts Chips has unveiled a resealable catering pack aimed at the hospitality industry. The launch marks the brand’s entry into the sector and provides caterers with a premium product from an established £14.7m British brand. The 450g pack comes in the brand’s top-selling variant, Sea Salt, which uses Cornish sea salt to meet consumer demand for strong traceability and high-quality ingredients. All Burts Chips products are hand-cooked in small batches and are free from MSG, gluten and artificial flavourings and colourings. In foodservice, Heinz is seeing a trend towards consumers wanting food ‘their way’. This includes the ability to add levels of heat and flavour via condiments (Canadean).


• Cash & Carry Management • August 2014

BUYER’S VIEW FROM HQ Hardeep Singh Rait, buyer at Savona Provisions, says: “After the economic downturn we saw a large swing in consumer demand towards own-brand/discount branded lines as businesses looked to ‘sweat’ every penny. “In recent months, following an economic recovery, we’re noticing that this trend is slowly disappearing as entrepreneurs are feeling more confident taking risks and are looking for innovative initiatives within the catering industry. “We‘ve seen evidence of this with more and more new accounts coming on board, looking for our help to build creative concepts through sourcing niche and individualised products so that they can set themselves apart and stand out in the industry. “The recent trend towards gourmet-style burgers and hot dogs doesn’t appear to be going away any time soon. I have had several approaches from various bread and condiment suppliers, such as Lantmannen Unibake, Speciality Breads and RH Amar, offering gourmet-style product developments like brioche buns and loaves. “The new school guidelines seem to have suppliers working overtime on product development. We are seeing lots of good innovations from suppliers across the board, and I expect to see a wave of new products meeting these guidelines towards the end of the year. “There is also increased demand from caterers for gluten-free products. Over the last few years this category has grown beyond proportion and it shows no sign of easing up, with many big-name suppliers catching on.”

Heinz has launched a range of Heinz 57 sauces that include Firecracker Sauce and Flamin Cajun. Heinz Tomato Ketchup has an 80% value share of the total tomato ketchup category worth £161m (Nielsen). Also, 70% of consumers report they would be more likely to order a side of chips if Heinz was on display (Canadean).

For further information: Burts Chips (0845) 085 2220 Classic Cuisine (01604) 644884 DaVinci Gourmet (01784) 430777 Diversey (01582) 702100 Empire Dogs (0203) 1765291 Kellogg’s (0800) 626066 Kerrymaid (0800) 783 4321 Nestlé Professional (0800) 742842 Taylors of Harrogate (01423) 814000


Giving a child a great start... starts with you Sadly, 1 in 7 children do not start their day with breakfast.* From August, when your customers buy a specially marked pack of Kellogg’s cereal or snacks we will donate a bowl of cereal** to someone who needs it. Stock up on Kellogg’s promotional packs and together we can help give our children a great start!



For range and merchandising information, call the Kareline on 0800 783 6676. *Hoyland et al (2012) Nutr Bull, 37 (3), 232-40 **30g serving of Kellogg’s Corn Flakes or Rice Crispies (excluding milk).

©2014 Kellogg Company

paper products

Perfectly placed High visibility of paper products maximises sales opportunities. The total paper market is currently worth £1.6bn, with household towels representing £341m of this figure. According to SCA Hygiene Products, big brands like Plenty, the UK’s number one brand of household towel, can act as a navigation post for the wider paper category. Plenty utilises the front of its packs to highlight the key benefits for each sub-brand within the portfolio – providing useful shopper communication to help time-pressed convenience shoppers quickly and easily identify the right Plenty product for them. Household paper shoppers are acutely aware of price, making brand blocking important. Doing this alongside the listing of one or two other leading brands will create clear quality tiering while enabling convenience shoppers to identify value, SCA maintains. Promotional visibility has become increasingly important and retailers should make the most of display stands and other PoS to help increase the number of impulse purchases. Although the household towel market is currently stable, it is starting to see recovery into growth, according to the latest data. Contributing to this, Plenty continues to grow ahead of the market at 8.1%. The brand now holds a 25.6% share, thanks to its range of products that cater for a wide variety of usage needs that extend beyond simple spill management in the kitchen. This has resulted in £6.6m being added to the Plenty brand. SCA believes that retailers should recognise that a ‘one size fits all’ approach is no longer appropriate for this category, and, as such, they should offer a range of household towel products to meet differing consumer needs. What’s more, as a key footfall driver, stocking the full Plenty range will benefit the household towel area of any convenience store, maintains the company. Acknowledging shoppers’ needs for simplicity, ease of navigation and a suitable range of products, Plenty boasts new packaging that gives clear positioning for each sub brand. These include The Original One, The Fat One, and The Big One. Plenty is also the first household towel brand to be awarded the Good Housekeeping ’Reader Recommended’ endorsement, which is achieved through rigorous testing by Good Housekeeping readers in their own home under the guidance of the Good Housekeeping Institute. Only those that are given the ‘thumbs-up’ by consumers can carry this logo.

Positioning is key The facial tissue category is currently worth £211.2m and Kimberly-Clark brand Kleenex maintains its position as market leader, accounting for 52% of the category (Nielsen). The company has launched a new integrated marketing programme for Kleenex, which focuses on summer-related tissue predicaments – from dripping ice creams to picnic spillages. The activity centres on an on-pack competition to win a week-long break in a camper van, or one for keeps! Marketing manager Jennifer Rohan comments: “We understand that school holidays are a busy time of year for mums. They can find themselves dealing with everything from BBQ spillages to grazed knees. The summer programme is a great way to raise awareness of such tissue predicaments, whilst also giving them the opportunity to win a great family prize.” According to Kimberley-Clark, product displays that add a touch of theatre are a great way to interrupt shoppers midaisle and encourage them to consider their tissue purchases. To extract greater value from fixtures, positioning is key and Kleenex boxes and pocket packs that are featured prominently within any health and beauty fixtures maximise sales opportunities. Smaller items, such as pocket packs, can also be displayed in standout positions around the cash & carry, suggests the company. Clip strips on the end of the aisle, next to the counter or in more unusual but relevant places, such as next to picnic items or school stationary, all put Kleenex at the front of shoppers’ minds. The health and beauty fixtures themselves should be eyecatching, engaging, clearly signposted and easy to navigate as this not only makes the shopping experience more enjoyable for customers, but also enables them to quickly locate and purchase what they need, boosting impulse purchases. Kleenex offers advice on planograms, must-stock lines and product information in the form of online publications, wholesale and cash & carry magazines, and retail group magazines.

For further information: Kimberley-Clark (0800) 626008 SCA Hygiene Products (0800) 328 8305

All data IRI.


• Cash & Carry Management • August 2014



Rolling in the profits New product developments and promotional strategies are taking the tobacco market by storm as manufacturers look to boost brand awareness before the dark market hits. Value cigarettes account for a 45.3% volume share of the ready-made cigarette (RMC) market (Nielsen). Japan Tobacco International (JTI) estimates that this translates to more than 14 billion cigarette stick sales a year, with its Sovereign Blue brand generating retail sales of £269.7 million since being launched in March 2013. Jeremy Blackburn, head of communications at JTI, says: “In recent years, many adult smokers have chosen to switch to products that offer greater value for money – a trend that has manifested itself in the considerable growth of the value cigarette segment and the roll-your-own (RYO) market within the UK tobacco category.“ To capitalise on a rising number of price-conscious consumers, JTI has introduced Benson & Hedges (B&H) Blue King Size 19s (£6.50 rsp) into the low value segment, while also reducing the recommended retail price of its Berkeley King Size and Blue cigarettes. The updated Berkeley 19s and 10s packs now sit within the super-value segment, price-marked at £6.25 and £3.25 respectively, and also display a new design to differentiate King Size from Super Kings. Blackburn comments: “The repositioning of Berkeley King Size into the super-value sector will ensure the brand is best positioned to provide existing adult smokers with quality and value from a well-established British brand with heritage.” Responding to consumer research which identified that over 70% of existing adult smokers have an interest in organically grown tobacco, JTI has expanded the UK’s number one tobacco brand by introducing Amber Leaf Signature Blend across symbol and national accounts. A European first for the RYO category and a world first for JTI, Amber Leaf Signature Blend contains an organically grown tobacco leaf with a 92% Brazilian origin. The packs are available in a price-marked 10g three-in-one crush-proof box featuring 30 filters and 50 papers (£3.65), as well as a 20g pouch with papers (£6.99 rsp). In addition, JTI has released limited-edition Amber Leaf packs featuring a letterpress design on 12.5g crush-proof boxes, as well as 10g, 25g and 50g pouches. Building on the success of last year’s ‘Handcrafted Moments’ campaign, the packs are aimed at reinforcing


• Cash & Carry Management • August 2014

‘As consumers continue to feel pressure on their pockets, value brands have gained share significantly versus midprice brands’ – Natasha Kendall, Nielsen tobacco analyst.

Amber Leaf’s quality and craftsmanship credentials and are available across all channels until the end of August. “Amber Leaf has three of the top five selling SKUs within the RYO category, so retailers should make sure their tobacco gantry is stocked with a comprehensive range of products, including Amber Leaf 12.5g (the UK’s number one pack), to maximise profits,” adds Blackburn. All data unless otherwise stated: Nielsen

Investing and innovating Zoe Smith, marketing director for the UK and Ireland at Philip Morris Limited (PML), reports that the value segment represents a strong point of focus for its Chesterfield brand, of which more than 19.5 million packs were sold in the UK last year. Nielsen research shows that value for money is still the biggest and fastest growing price segment in the UK and currently accounts for a 38% value share of the total cigarette market — a rise of 3.9% between January 2013 and January 2014. Smith explains: “Consumers now expect more for




Over 19.5m packs of Chesterfield were sold in the UK in 2013.

their money without sacrificing quality, and Chesterfield’s price point makes the product attractive to customers, whilst the quality ensures repeat purchase. “Downtrading needn’t be detrimental to sales, because although the current economic climate is tough for many adult smokers, Chesterfield delivers a better profit on return compared to its competitors.” To coincide with the summer festival season, PML has released limited-edition packs across its Chesterfield and Marlboro Gold Original brands. Chesterfield Red and Blue Kingsize 19s packs now showcase ‘Band’ and ‘Roadie’ artwork, with the former design displaying a retro ’50s chrome microphone and the latter a collection of speakers and DJ decks. Meanwhile, Marlboro Gold Original features a festival lanyard exclusively on 20s packs. Smith comments: “Marlboro Gold Original is the UK’s best-selling premium brand, while Chesterfield sales doubled last year, making it the third fastest growing brand in the UK. “The music festival season presents an excellent opportunity for retailers to maximise their tobacco sales, so we encourage stores to stock up on these limited-edition packs while stocks last.” Elsewhere, PML has expanded its portfolio by purchasing UKbased e-cigarette manufacturer Nicocigs, owner of the Nicolites brand, for an undisclosed sum. The deal gives PML “immediate access to, and a significant presence in, a growing UK e-vapour category, as well as a strong retail presence,” according to PML Europe regional president Drago Azinovic. The acquisition of Nicocigs, which boasts a 27% stake of the UK’s e-cigarette market and an estimated total retail value of £206 million, comes just weeks after JTI bought all shares in E-Lites’ parent company Zandera.

More than 4% of cigarettes smoked in the UK last year were illicit, a study by KPMG has revealed, with the UK government losing an estimated £1.5 billion in tax revenue. The analysis, commissioned by BAT, Imperial Tobacco, JTI and Philip Morris, revealed that ‘illicit whites’, a type of illegal, branded cigarettes manufactured for the sole purpose of being smuggled, accounted for 25% of counterfeit and contraband tobacco in the UK last year. Robin Cartwright, partner at KPMG, reports: “Our latest research on the illegal tobacco market found that while there was positive news on the decreased trade in contraband tobacco products overall across the European Union, there are other trends that are cause for concern, including the continued increase in the number of ‘illicit whites’ being consumed.” The report also identified Poland as the main source of illicit activity in the UK tobacco market, with Marlboro the most prevalent culprit across all brands and accounting for nearly 20% of illegal consumption. Cartwright concludes: “The black market remains a significant source of revenue loss for governments and a resilient competitor to the legitimate trade. This illegal activity not only comes with a financial cost, but it also fosters criminality in local communities.” Elsewhere, Imperial Tobacco has unveiled a series of adverts and short films to supplement its anti-illicit trade campaign: ’Suspect it? Report it!’ Peter Nelson, Imperial Tobacco’s anti-illicit trade manager, comments: “Imperial Tobacco has identified four key impacts on which the illicit trade is having a damaging effect: income, youth, quality and community. Our new, exciting artwork encapsulates a number of alarming scenarios which in reality are becoming more prevalent on UK shores. “Everyone linked to the legitimate tobacco supply chain must ensure we take every opportunity to reduce the impact of illicit tobacco on our businesses.” Imperial Tobacco encourages its trade partners to report illegal trade activities to the Customs Hotline or through their tobacco representative.

All data: Nielsen


• Cash & Carry Management • August 2014



‘A Brand you can trust, a taste you will Love.’ AVAILABLE NOW!

brio E-cigarette range by CLIPPER As yet, no brand has been developed with strong recognition in the eyes of the consumer; but at last, CLIPPER has entered as a brand recognised by all smokers. CLIPPER being a brand that has thrived on its promise and delivery of reliable and quality lighters, has taken this approach to our new E-cigarette range in order to bring safe and dependable products to the market. BRIO’s USP: UNIQUE VAPFLOW SYSTEM – one of the most technologically advanced and reliable in the market! The hypersensitive airflow sensor immediately detects when the user is taking a puff on the e-cigarette and therefore makes Brio’s advanced technology one of the longest lasting E-cigarettes in the market producing more puffs for the consumer’s money! And the soft filter tip and smooth paper create an enhanced realistic smoking experience.

Tank Vaporizers are fast becoming a fashion statement rather than a tool to help addicts quit smoking! So it is an important product to have when offering a complete range. Again we have installed features such as a flexible non-leakage mouth piece and over charge protection chip to ensure the safety of our users. Additionally all our e-liquids are produced in Europe to instil the quality and safety aspect of these products to the consumer in order to gain their trust and respect. CLIPPER is already a well-established leader in the lighter market for delivering good quality and reliable products, and is therefore known and trusted by existing smokers. CLIPPER maintains huge popularity and loyalty throughout the UK and worldwide which, in a market full of questionable brands and a product that we still know so little about in terms of health, is a benefit that money can’t buy! For our launch we are offering your retailers a 5+1 FREE promotion pack on the Disposables and Tank Vaporizers as an incentive to get behind Clipper on our new venture, and prove we can be No.1 in any market we set our sights on!A Brio’s complete range • Disposable – Classic Tobacco flavour Gold (18) / Classic Tobacco flavour Bold (9) / Menthol (9) • Rechargeable Starter Kit (18) • Cartridges / Cartomizers – Gold (18) / Bold (9) / Menthol (9) • Tank Vaporizer • Mini Tank Vaporizer • E-liquids

AA AA Brand you can trust. A taste you will Love

Launch Special 5+1 Promotions - Free Stock Included!


After being the SP SPARK ARK for 40 years, we’re going one step further

The complete range of E-Cigarettes by

tobacco Top 10 tobacco value sales (Nielsen December 13)

Making the right choice Republic Technologies is helping to generate awareness instore by providing off-fixture displays such as counter-top units to signpost RYO accessories and maximise visibility. At a time when many cash & carry depots are struggling to increase tobacco sales and manage the rising popularity of e-cigarettes, the RYO accessories sector continues to outperform the market in the impulse channel, growing at 4.2% and valued at £87.8 million. Republic Technologies’ marketing manager Eleni Koulara says: “Retailers are looking to cash & carry depots to stock the market-leading RYO accessories that their shoppers are actively seeking, so effective display and availability of leading accessory brands such as Swan, ZIG-ZAG and OCB at depot level are essential.” RYO market data shows that filter tips are performing particularly well, led by Britain’s favourite filter, Swan, which is up by 14.4% in volume in the impulse channel. According to Koulara, modern-day smokers are more discerning than ever before and now demand environmentallyfriendly, cheaper and healthier alternatives, hence the recent additions of Swan Ultra Slim – the thinnest ever Swan filter – and additive free, ZIG-ZAG unbleached papers. “RYO products such as Swan Ultra Slim and ZIG-ZAG unbleached papers enable people to make thinner cigarettes, which means they smoke less,” explains Koulara. “ZIG-ZAG unbleached papers are targeted at a number of RYO smokers who want a more natural smoking experience,

The subeconomy sector accounts for 16.6% of the cigarette market (Nielsen)


• Cash & Carry Management • August 2014


Lambert and Butler King Size Silver (£1 billion)


Mayfair King Size (£734 million)


Marlboro King Size Gold (£653 million)


John Player Special Blue (£564 million)


Benson & Hedges King Size Gold (£532 million)


Sterling King Size (£517 million)


Sterling Superkings (£482 million)


Mayfair King Size Smooth (£400 million)


Richmond King Size (£384 million)


Windsor Blue Superkings (£378 million)

and as they’re new and attracting lots of retailer and consumer interest, they offer an incremental profit opportunity for cash & carry depots.” All data: Nielsen

Little and large An estimated 45% of retail sales in the UK RYO market are attributed to 12.5g packs or below, according to Imperial Tobacco UK, with smokers choosing to control their spend on tobacco by switching from factory-made cigarettes to RYO tobacco products. Imperial Tobacco, the UK’s number one tobacco manufacturer (Nielsen), has identified a growing number of tobacco shoppers looking to minimise tobacco outlay and control consumption, with smaller packs of GV Smooth and Gold Leaf becoming increasingly popular. To reflect the increasing demand for smaller pack sizes, Imperial Tobacco has extended its number one RYO brand by launching JPS RYO 9g. With an rsp of £2.99 and containing 22 hand-rolled cigarettes, JPS RYO 9g is designed to replace the existing JPS RYO 12.5g pouch and offers retailers a 13.11% margin, thereby helping to protect turnover by competing with illegitimate and illegal tobacco. Ryan Hopkins, senior brand manager – fine cut tobacco at Imperial Tobacco, says: “As the popularity of smaller packs continues to increase, we saw a real opportunity to introduce JPS RYO 9g. With its great price point, the 9g pack is an attractive offering for both dualists and value-seeking consumers who are now shopping little and often.” Elsewhere, Imperial Tobacco has overhauled its Player’s range by introducing a Menthol variant and unveiling a packaging redesign. The new artwork, which features a metallic finish and the John Player crest, aims to improve shelf standout and aid retailers’ navigation by incorporating a new colour scheme


tobacco across all variants: Full Flavour (red), Smooth (blue) and Menthol (green). The introduction of Player’s Menthol aims to capitalise on the 33% growth of the sub-economy market year on year – the fastest growing price sector in the UK (IGD). With 60% of sub-economy tobacco shoppers favouring 19s pack formats, Player’s Menthol replicates the Super King Size 19s format of its sister brand JPS Silver Superkings and has an rsp of £6.49. Price-marked packs displaying a £6.25 price-point are also available, for a limited time only. Madeleine Pearce, senior brand manager, FMC, at Imperial Tobacco, says: “The Player’s brand has become a major presence in the FMC category and our research shows that consumers are continuing to seek a lower outof-pocket spend when it comes to everyday purchases like tobacco products.” According to ITUK estimates, menthol accounts for almost 10% of the total FMC market and the new launch is targeted at offering “valuable profit opportunities to the 91% of independent tobacco retailers who currently stock the Player’s range”.

Cost conscious Scandinavian Tobacco Group (STG) UK, the leading cigar manufacturer, predicts significant changes in consumer demand ahead of the upcoming display ban, with manufacturers set to shift from offering value for money to promoting their cheapest tobacco products. Although Nielsen figures show that the value-for-money RYO segment is currently worth £338 million and growing at 25%, head of marketing at STG UK, Alan Graham, expects price sensitivity to dominate market trends and ostracise premiumisation in the next 12 months. “Once the display ban is in effect in smaller stores, consumers will ask for the cheapest RYO range or cigar, not the second cheapest,” he forecasts. “As a result, there’s likely to be increased competition in this area. If it’s not a big brand, the cheapest range or a niche tobacco product, the chances are it will no longer feature in a retailer’s tobacco display.”


To correspond with the growth of new products entering the tobacco market, STG has introduced Break Little Cigars – a new sub-category of super-value-for-money cigars offering double-digit margins for retailers.

‘Once the display ban is in effect in smaller stores, consumers will ask for the cheapest RYO range or cigar, not the second cheapest’ Alan Graham, head of marketing, STG The range, which is available in Silver, Blue and Menthol variants, aims to take advantage of the miniatures segment, which accounts for the largest share of the cigar category with 67% of sales. Break Little Cigars have an rsp of £4.59 for 17 and are sold in a hard-box and colour-coded format to enhance

JTI DEMANDS ACTION JTI has urged the UK Government to introduce an independent review into the proposed regulations on plain paper packaging, after the Chantler review failed to address the negative impacts on competition, trademark and freedom of choice. Nearly two-thirds of the 668,000 respondents to the 2012 consultation opposed the measure, and JTI believes the Government’s decision to launch a six-week consultation in June was not only “inappropriate”, but merely “a box-ticking exercise” for health minister Jane Ellison. JTI’s UK managing director Daniel Torras comments: “Plain packaging has not had a positive public health impact in Australia, and the UK will be no different. “There needs to be better assessment of the effectiveness for, and the need of, plain packaging in the face of existing and forthcoming regulation. “No doubt the major crime syndicates across the globe are scrutinising these proposed regulations as the UK Government prepares to provide counterfeiters with a blueprint of exactly how to copy UK tobacco brands in the future.” The latest consultation comes less than six months after the European Parliament approved a revised EU Tobacco Products Directive, a decision which JTI predicts will create a “massive disruption” for thousands of legitimate businesses across the UK. “The EU’s decision to ban 10s, menthol and pouches of tobacco under 30 grams is a gift for criminal gangs as more smokers who find that their preferred pack is no longer available will be tempted to buy illegal tobacco,” adds Torras. “Meanwhile, the UK Government’s exchequer will have to plug the financial gap left and thousands of legitimate businesses will suffer.”

August 2014

Cash & Carry Management


tobacco visibility. The new lines are available in price-marked and standard packs. According to Graham, this provides retailers with flexibility to display value for money on-shelf. He says: “During the last three years, we have seen Little Cigars become incredibly popular in Europe, so popular in fact that they are now the fastest growing tobacco sub-category in Europe with £3.45 billion sold in 2013 (Nielsen). To help smaller stores prepare for the display ban in April 2015, STG has launched a Gantry Guardians’ Guide to Tobacco which offers guidance and peer-to-peer advice from a panel of c-store retailers. Graham (below) adds: “Using our category insights and direct advice from our respected Gantry Guardians, we will endeavour to support retailers through this transition period and help them get ready for the arrival of the display ban next year. “By undertaking simple steps now, like reviewing their range to ensure they are stocking the right products, as well as

thinking about how to conceal their gantry, retailers will be able to get one step ahead of the game and reduce the chances of falling sales once the ‘dark market’ hits.” All data unless otherwise stated: SymphonyIRI

Cultivating loyalty British American Tobacco (BAT) has urged wholesalers to respond to the dynamism of the tobacco market by implementing an educational system. Rory Cotter, head of national accounts at BAT, believes the upcoming display ban will place an emphasis on valueadded services, with tobacco rooms offering “a unique ability to deliver advice on new regulations”. “It is vital that information about the retail display ban and other regulations is readily available within the tobacco room to inform and educate retailers,” says Cotter. As a result, he advises wholesalers to train their tobacco room staff to become “category experts” and points to new product developments, together with frequent pack and price changes, as an opportunity to drive customer loyalty by providing brand recommendations and market insights. Cotter continues: “Retailers need to be able to navigate the room so having clear pointof-sale and shelf labels highlighting POR and price will assist their decision-making. “Retailers know which products drive profits, and if they can’t buy from you, then they may go elsewhere. It is therefore vital that there is 100% product availability for both PMP and non-PMP stock.” In May, BAT pledged to assist smaller retailers to prepare their tobacco gantries by offering brand incentives and guidance on merchandising products via its MOR£ Together programme. This corresponds with the launch of two limited-edition packs of Pall Mall, which have been designed to enhance brand awareness. The new lines, which are available until the end of this month, are price-marked at £6.49 for 19 and are also stocked in non-PMPs of 10s and 19s. Pall Mall brand executive Carla-Maria Streit comments: “Pall Mall has always been known as the innovator in our portfolio and is central to BAT’s MOR£ Together programme. We’re making it easier for retailers to stock up and sell by keeping the brand relevant – that means they will have more opportunity to benefit from our MOR£ programme too.”

For further information: BAT 020-7845 1000 Imperial Tobacco (0117) 963 6636 JTI (01932) 372000 Philip Morris 020-7076 6000 Republic Technologies (01494) 556129 STG UK 020-8731 3400


• Cash & Carry Management • August 2014


legal advice

Legal strategy: why bother? Consultant legal counsel Helen Jenkins (below) explains why wholesalers should manage their legal function as an intrinsic part of business strategy. When asked about their ‘legal strategy’ many businesses will simply say that it is to call a solicitor when they have a problem. However, that is a shortsighted and ultimately costly approach. Most of you will have dedicated resources for key business functions like human resources (HR), finance and sales. Making sure that your business is legally fit for purpose and that risks are properly identified and managed is like the jam in the sandwich of all of those functions. It can be critical to business success but is often ignored. Aligning business practices, objectives and protections with the law will avoid problems and the costly drain on management time and money required to resolve them. How will a robust legal strategy protect you? Ensuring that business policies and procedures are up to date and properly reflect the way your business works will put you on the way to compliance and avoiding problems. For example, a simple complaints policy that records the process you should take for dealing with a retailer or consumer complaint could reduce your exposure to liability. Every organisation has to take risks, but reducing exposure to those is good business practice. For example, as a distributor of consumer goods or a manufacturer of own-label products, you have a responsibility to ensure those products are safe. What is your process for dealing with product recall and notification of unsafe products? If the steps you do or don’t take cause harm to consumers, you could face enforcement action in the form of fines of up to £20,000, not to mention the damage to your business reputation. Use the law in a commercial way to add value to your business. Check your payment terms for both suppliers and customers. Getting an extra day’s credit from all your suppliers and being paid a day earlier by all your customers could have a significant positive impact on cash flow. This may seem obvious but are you doing this and are you enforcing these terms? Maintain compliance by keeping up to date with legal changes. The legal landscape is ever changing, with laws created or changed on a weekly basis. You may not think a law is relevant to you but they cannot be ignored. For example, the Bribery Act 2010 includes an offence for bribing another


person for commercial gain. Not only does that relate to backhanders; ’bribery’ has a broad definition and can also relate to gifts and hospitality. A simple, sensible policy combined with staff training could save you from an unlimited fine or even a prison sentence. Protect and enhance your corporate reputation. A business that keeps on top of legal compliance is more likely to attract loyalty in customers and dedicated staff as it has a professional approach to solving issues that affect them. You are correct in thinking that you won’t be thanked by the outside world for putting in place a contract with your cleaning company that sets out strict service-level obligations. You may regret not doing that if they fail to follow those obligations and a member of staff or a retailer slips or trips, resulting in a serious injury and hefty fines. How to start putting a legal strategy in place: 1. Review your legal expenditure in the last year and identify what issues necessitated you spending it. You may have addressed the immediate legal problem, but have you resolved the underlying issue? 2. Ask yourself some key questions about your contracts, policies and procedures. Are they up to date, in line with current law and business practices? 3. Talk to your business functions like HR and sales and ask them about their common issues. 4. Amalgamate all that information and prioritise it into those areas you perceive could have the greatest impact and add a line to the budget for proactive legal management. By putting a proper strategy in place, you are heading off issues before they arise and your future legal expenditure should be reduced. If you need assistance in reviewing your business’s legal priorities, Legal Edge (www.legaledge.co.uk) can help by undertaking a legal health check. All of its lawyers are commercially minded and, having worked inside business, know how to deliver practical solutions to everyday issues. Contact Helen Jenkins at helen.jenkins@legaledge.co.uk

Cash & Carry Management

• August 2014 • 41

products & promotions Clear message

Golden gift pack

BEL UK – Instead of the previous frontof-pack claim that Leerdammer Light contains ‘38% less fat than Leerdammer Original’, the messaging has now been amended to read ‘50% less fat than cheddar’. The ‘Great for sandwiches’ message has now also been replaced – with ‘Great for sandwiches, wraps or as a light and tasty snack on its own’. Leerdammer, the number one brand in the natural sliced cheese segment (Nielsen), returns to television with its ‘Incognito’ creative execution, featuring an end frame highlighting the Leerdammer Toastie sku, which earlier this year won Product of the Year in the cheese category. Tel: Bel UK (0333) 900 2020.

STORCK UK – Werther’s Original Golden Mix has been launched. The 380g gift box (rsp £5) contains Butter Candies, Creamy Filling, Caramel Fudge, Chewy Toffee and Chocolate Eclairs. It is targeted at consumers who are looking for a comforting seasonal or top-up gift to share during social occasions. Also new is a Toffifee seasonal 400g pack, aimed at consumers who trade up ahead of the festive season. The pack (rsp £5.48) features a Christmas design and a craft game and it complements the established 100g pack (rsp £1.42), which is ideal as stocking filler. The launches are being supported by television advertising for both brands. Tel: Storck UK (01962) 844800.

Monster news COCA-COLA ENTERPRISES – Monster Energy has unveiled two new products. Monster Assault is a blend of soda and energy, which has been introduced into the GB market following a successful activation across Europe. Monster Energy ‘The Doctor’ is a special-edition pack celebrating Monster’s ongoing relationship with the MotoGP series, which honours motorsport competitor Valentino Rossi. Caroline Cater, operational marketing director, says: “The launch of Monster Assault builds on the recent Rehab innovation with Energy+Tea and opens up a new opportunity for retailers. ‘The Doctor’ appeals to Monster Energy consumers’ love of motorsport, and celebrates one of the most popular sportspeople in the world. “The new products help retailers to offer further choice to consumers, reinforced by the existing popularity of the brand. We are confident the new variants will play a key role in the brand’s continued sales growth.” Tel: CCE (08457) 227222.


Flavour finalists PEPSICO – Walkers relaunched the ‘Do Us a Flavour’ campaign with a nationwide search to find new crisp flavour combinations. Entries closed in March and voting is now open to the public (until mid-October), when the £1m prize winner will be announced. Five runners-up will win £10,000. The six flavour finalists are Ranch Racoon, Chip Shop Chicken, Curry, Hot Dog with Tomato Ketchup, Pulled Pork in a Sticky BBQ Sauce, Cheesy Beans on Toast and Sizzling Steak Fajita. Shoppers across the UK can sample each bag and vote for their favourite flavour online at www.walkers.co.uk. The judging panel included comedian David Walliams and Michelin starred chef Marco Pierre White. Tel: PepsiCo (0118) 930 6666.

Wider platform J WRAY & NEPHEW – Premium Jamaican coconut rum Koko Kanu’s first major consumer campaign sees the UK’s only full-strength coconut rum extend its focus to secure listings nationally in the grocery and convenience channels. A series of consumer sampling events and brand tie-ups are taking place throughout the year and sit alongside PR, social media programmes and consumer media partnerships to boost the brand’s wider profile. A new serve strategy, tailored around the summer and Christmas trading periods, has also been launched to encourage trial and introduce new drinkers to the brand and coconut rum category. Tel: J Wray & Nephew 020-7953 3808.

• Cash & Carry Management • August 2014

Sweet deal MARS CHOCOLATE – The Sweet Sundays free cinema ticket promotion is running for a third consecutive year. The campaign, fronted by the Red and Yellow M&M’s characters, is available on packs of four of the top bitesize brands: Maltesers, Revels, Minstrels and M&M’s. Tony Lorman, retail excellence director, says: “The number of participating cinemas has increased by 10%, meaning that 92% of the UK population now live within a 25-minute drive of a valid cinema. “We’ve also simplified the redemption process with the introduction of new mobile technology. Consumers can now check their unique code by text, with winners receiving a link for a QR code straight to their mobile.” Tel: Mars Chocolate (01844) 262517.


products & promotions Paste in a pouch

Makeover HALO FOODS – Harvest Cheweee cereal bars have been relaunched with new packaging and two more variants. The two new lines are Strawberry Crush, with freeze-dried pieces of strawberry, and Rocky Road, containing milk and white chocolate chips, marshmallows, biscuit pieces and raisins. Commenting on the new packaging, brand marketing manager Jodie Cavaye says: “The simple, yet effective carton design clearly shows the permissibility of the whole rolled oats and wheat ingredients, together with the indulgence of the flavour variant. “Inside the carton, children will find individually-wrapped cereal bars printed in vibrant colours, complete with engaging animal facts offering a fun and educational snack-time experience.” Tel: Halo Foods (01654) 711171.

Cup soup launch HEINZ – The nation’s favourite soup brand, Heinz, is now available in Cream of Tomato, Cream of Chicken and Vegetable Cup Soup variants. The new varieties contain no monosodium glutamate, are low in fat, are less than 100 calories per serving, and contain no artificial colours or preservatives. Available at an rsp of £1.19 per pack of four sachets, the Cup Soup range is supported by a £1m national TV campaign, PR and in-store activation including sampling and coupons. The cup soup market is worth £102m and has grown by 39% over the last four years (Kantar). Heinz currently has a 67% value share of the UK wet ambient soup market which is worth £324m (Nielsen). Tel: Heinz (0800) 528 5757.

PREMIER FOODS – Bisto Simply Casserole Concentrated Pastes have joined the dry packet mix category in Rich Beef & Ale, Country Chicken, Sausage & Caramelised Onion and Spanish Chicken flavours. Made with real meat juices, herbs, seasoning and vegetable purees, Bisto Simply Pastes are packaged in a foil pouch to maintain freshness and are free from artificial colours and MSG. Helen Touchais, flavouring & seasonings category marketing director, says: “Our research highlighted that 60% of mums would have more confidence in preparing meals with the use of Simply Casserole Concentrated Pastes, whilst 77% of shoppers preferred the new pastes to current dry packet mix products in the market (LVQ home usage test).” Tel: Premier Foods (01727) 815850.

Celeb campaign MONDELEZ INTERNATIONAL – The biscuit manufacturer has created a 60second advertising campaign for Oreo Double Stuff featuring the stars of ITV2’s The Only Way is Essex. The ad sees James Argent (Arg), Tom Pearce and James ‘Diags’ Bennewith resolve a disagreement by taking part in an Oreo Double Stuff ‘lick race’ – a phenomenon borne out of the US which sees two parties race to lick the crème from an Oreo Double Stuff biscuit. The ad forms part of the wider Oreo Double Stuff ‘Lick For It’ campaign, which aims to help settle disagreements across the web by delivering content in the spaces and places where arguments naturally occur. Tel: Mondelez International (08702) 400861.


Bags of prizes WRIGLEY – The confectionery company has teamed the Skittles brand with Xbox to offer consumers the chance to win Xbox prizes with every bag sold. Packs of Skittles 55g and 174g Fruits, Sours, Confused and new Wild Berry now feature a unique code which consumers can enter at www.skittlesup.com to find out if they have won. Prizes include Xbox consoles, games and three-day Live Gold passes. Skittles is the UK’s fastest growing major fruit confectionery brand (Nielsen). The on-pack promotion is supported by a £3m multi-media campaign which includes a five-second tag announcing the brand’s partnership with Xbox. Tel: Wrigley (01752) 752094.

Oriental sauces ENGLISH PROVENDER COMPANY – Restaurant brand Sweet Mandarin has teamed up with manufacturer and distributor English Provender Company to launch its range of pan-Asian sauces. Six dipping sauces are available: Sweet Chilli Sauce, Sweet & Sour Sauce, Chinese Barbecue Sauce, Sriracha Sauce, Hoi Sin Sauce and Wasabi Sauce. Using all-natural ingredients, the sauces are MSG free and contain no artificial colourings. Sweet Mandarin achieved wide recognition on BBC television programme Dragons’ Den, and Gordon Ramsay’s F Word. Lisa Tse, the chef who developed the sauces, says: “Our sauces are inspired by the three generations of women in our family and the cooking styles they have passed on, from southern China in the 1920s, colonial Hong Kong in the 1930s and a changing England from the 1950s to the present day.” Tel: English Provender Company (01635) 528800.

Cash & Carry Management

• August 2014 • 43


M 3 £




SNICKERS® is a Registered Trademark © Mars 2014


More Nuts is replacing SNICKERS® standard during this campaign

SORT IT OUT WITH *Source: Scan Track, Total Market, EDC, data to we 22.03.2013. **Source: Neilsen total independent MAT 07.06.2014.

Profile for Cash & Carry Management

C&C Management August 14  

C&C Management August 14  

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