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Ethics and the success of Costco: by trading director Steve Barnett

CCM Chefs’ Own-Brand Awards 2019 launched with Craft Guild of Chefs


4OTC Remedies 4Biscuits 4Confectionery 4Hot Beverages


* Kantar Worldpanel, out of home purchase, Total Barcoded Cans, 52 w/e data to 22/04/18 **Kantar Worldpanel, Take Home & Out of Home Purchase, 52 we, 17 Jun18, vs YA, Total Carbonates. Cans Take Home incremental growth +8.4m, Cans Out of Home incremental growth +13.6m. ˜Increase basket spend by activating the 2 for £1 at fixture and through active-sell. ˜˜Based on a widely available case price of £5.99, see Wholesaler for selling price and promotions.


October 2018

This month don’t miss... 06 6

Bidfood’s Andrew Selley wins top award recognising his leadership.



CCM Chefs’ Own-Brand Awards: the 2019 scheme is launched.

The treasure-hunt environment is part of Costco’s USP.



Editor’s Comment Industry News Products & Promotions


Interview with Steve Barnett, trading director of Costco UK.


Spotlight featuring Frank Fraser, head of catering sales at BB Foodservice.


In Focus IGD Convenience Retailing Summit.


Special Report Women in Wholesale conference.


CCM Chefs’ Own-Brand Awards Cash & Carry Management launches the awards scheme for 2019.

BB Foodservice’s Frank Fraser, pictured with his ‘brood’, talks about his career and people who have inspired him at Bellevue and Bestway.




Product of the month

Employment Law Cate Ritchie offers advice on sick leave and maternity leave.


OTC Remedies Biscuits Update Confectionery Hot Beverages

The IGD’s Guy Ousey on retailers’ plans for growth in convenience.

Quorn has a new ready meals range and is backed by a TV ad.


October 2018



Give women their due hen Theresa May succeeded David Cameron as Prime Minister, she took on the same responsibilities, workplace (10 Downing Street) and, presumably, many members of his entourage. But does she receive the same salary as her predecessor? Salaries of members of the Government are in the public domain (www.gov.uk) so the answer to this is ‘yes’. Comparing men’s and women’s salaries has become one of the most emotive subjects in employment – particularly when the two sexes are doing the same job and working the same number of hours. Currently, our leading supermarket chains are said to be facing a total potential bill of up to £10 billion from disgruntled current and former staff who are claiming up to £20,000 each. Most of these are women, but men, too, figure in the list of out-of-pocket applicants. As the leading trade magazine covering the cash & carry and delivered wholesale channels, we receive many press releases on senior appointments. Almost invariably, these are men who have either risen through the ranks or been recruited from other companies. Occasionally, however, details come in of a woman chosen to fill a major post. One such, many years ago, was of a female branch manager at Bestway.



Ethics and the success of Costco: by trading director Steve Barnett

CCM Chefs’ Own-Brand Awards 2019 launched with Craft Guild of Chefs CATEGORY INSIGHT

OTC Remedies Biscuits


Hot Beverages

Mervyn Gilbert News Editor




Did she, I wondered, receive the same money as the male she replaced? Obviously, sensitive issues such as this were never disclosed. One woman who occupies one of the most senior positions in the trade – presumably on a salary commensurate with a man doing the same job – is Sue Knowles, marketing/HR director of Costco UK. At SPAR, the managing director is Debbie Robinson, while Debbie Harrison is joint managing director of Pricecheck and Coral Rose heads Country Range Group. One of the branch managers at Parfetts Cash & Carry is Becky Webster, who has held this position for about a year. These are just a few who have assumed seniority in positions which years ago might automatically have been handed to men. Forgive me for those I have omitted. It proves that the distaff side – those of the right calibre – can compete with men when progressing up the corporate ladder. One would trust that their gender has nothing to do with how much they are paid – a remark which applies equally to those with a lesser degree of responsibility.


Cash & Carry Management is free to cash & carry and delivered wholesale directors, buyers and managers. The magazine is available to other subscribers for just £65 a year or £6 per copy. Overseas yearly subscriptions are priced at £95. Back issues dating back to 2011 are available online. Email mail.winlove@btconnect.com or call (01342) 712100 for more information.

Address Winlove Publications Ltd PO Box 366 East Grinstead RH19 4ZE Tel (01342) 712100 Email mail.winlove@btconnect.com Publisher Winlove Publications Ltd EDITORIAL Managing Editor Kirsti Sharratt News Editor Mervyn Gilbert Deputy Editor Siobhan Kielty Contributing Editor Kevin Whitlock ADVERTISING AND MARKETING Publishing Director Martin Lovell Media Sales Manager Clare Phillips 4,575 July 2017 – June 2018 Audit Bureau of Circulations Printed by Bishops Printers ISSN 1352-254X All media rates and feature lists can be accessed online by visiting: cashandcarrymanagement.co.uk

THREE WAYS TO GET INVOLVED THIS MONTH 1. ONLINE Catch up on all the latest news via our relaunched website, plus take advantage of our Promo Checker service, exclusively for suppliers, and our online magazine edition. cashandcarrymanagement.co.uk

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3. TWITTER Follow us to receive breaking news, plus live updates from industry conferences. @CandCManagement


October 2018



Blakemore meat trial

Fresh meat and food-to-go retailer Crawshaws Group has linked with SPAR operator Blakemore Retail in a three-store trial. The Crawshaws concept is being used at Blakemore units in Sheffield and Doncaster, with one factory outlet introduced at the Wath (Rotherham) store (below).

The partnership, it is claimed, “will deliver a unique point of difference for shoppers within the convenience market, offering industry-leading quality fresh meat at great value to customers.” Other Blakemore outlets could adopt the scheme, depending on the success of the trial. Blakemore Retail’s MD Stuart Adkin said: “We are in no doubt this initiative will attract additional footfall into our stores. We look forward to developing a prosperous business relationship with Crawshaws in the future.” Blakemore, which recently withdrew from C&C trading, owns nearly 300 SPAR stores. a Blakemore Retail (01902) 366066

Booker benefits in focus Reporting on second-quarter results for Tesco, in which group sales grew by 2.7%, chief executive Dave Lewis said that the Booker merger has already delivered synergies of £16 million and is on track to reach at least £60 million in the full year. Looking further ahead, he believed that the figure could grow to a cumulative £140 million in 2019/20 and around £200 million in the following year. He added that the retail multiple was ‘delighted’ with the C&C/wholesaler’s performance so far. Figures for the total concern’s first quarter show that Booker’s sales rose by 14.3% and in the second three months they were up by 15.1%, making a 14.7%


October 2018

increase for the half year. Referring to changes in the respective product ranges, Lewis said that the top 30 Booker products are now available in 70 Tesco branches. “The integrated Booker offer in Gallions Reach (the east London retail park where a Tesco Extra outlet

operates) is being rolled out to eight more stores.” Joint Booker/Tesco buying terms have been negotiated with the retailer’s top 60 suppliers. “Booker is contributing to faster growth as planned,” Lewis added. a Tesco (01992) 632222 a Booker (01933) 371000

Lots to chew over at ExCel

Brexit, the ‘free from’ boom and more sustainable food will all be in evidence at the Food Matters Live 2018 show being held at London’s ExCel from 20-22 November. The event is expected to be attended by producers, buyers, innovators, scientists and nutritionists. The show will also feature case studies and advice from leaders of the food and drink industry in 80 seminars with health & wellbeing themes.

Business in Stresa

More than 500 business meetings with top suppliers were conducted by Confex members at the group’s annual incentive meeting. There were 88 delegates at the event, which was held

Delivering major synergies for Tesco.

in Stresa, Lake Maggiore. Next year, the incentive will be held in Tenerife. Members will qualify by showing the highest growth across selected Confex suppliers. a Confex (01608) 652333


This year’s show could be even busier than last year’s.

Around 800 manufacturers and ingredients suppliers will be showing their newest products.

There will also be cooking demonstrations and tastings. a Food Matters Live 2018 (0203) 735 5961

Recognition for Selley Andrew Selley, chief executive of Bidfood UK, won The Grocer Cup at the IGD Awards 2018. This award recognises ‘the leader who has inspired his or her team to achieve

remarkable results over the past year’. Selley saw off stiff competition from a shortlist of 10 industry heads, including Tesco’s CEO Dave Lewis. a IGD (01923) 857141

Own-brand awards 2019 Following the success of the inaugural CCM Chefs’ OwnBrand Awards, Cash & Carry Management, in association with the Craft Guild of Chefs, has launched the awards for 2019. These awards give cash & carries and delivered wholesalers whose own-brand products hit the mark the recognition they deserve, with endorsement from the Craft Guild of Chefs, which will conduct the judging in blind tastings. Entries are open for products in all food & drink categories at a cost of £105

per product, with one free for every 10 entered. New this year is a ‘Best Innovation of the Year’ category, open to any foodservice own-brand product launched within the past 12 months. Entries can be made on

our website (www.cashandcarrymanagement.co.uk) and the closing date is 3 April. The winners will be announced at a prestigious awards lunch next June. a CCM Chefs’ Own-Brand Awards (01342) 712100

Well worth all the effort!

given a 20% chance of survival. After a worrying wait, the five-hour operation was a success. I cannot thank them

enough as they saved my husband’s life!” a AF Blakemore 0121-526 8400

Group general manager Terry Larkin said: “We provide credit limits that are affordable and beneficial for

businesses, allowing caterers to buy the stock they need. Now, with longer terms to repay, we’re supporting them to improve their cash flow.” Since the launch of the card, the average customer spend at JJ Food Service has risen by 30%. a JJ Food Service (01992) 701701

More time to pay with JJ card

Caterers now get 56 days (up from 37 days) to pay their bills with the JJ Food Service Mastercard, introduced less than a year ago. Additionally, the maximum spending limit has been doubled to £50,000. The company says the card is providing caterers with more than £3.4 million in credit a month.

Honour for Knowles

The winners of the inaugural CCM Chefs’ Own-Brand Awards.

A heartwarming gesture

Twelve members of staff at Blakemore Foodservice completed the Banks’s 10k run in Wolverhampton to raise more than £600 for the Birmingham Heartlands Hospital. Based at the Walsall site, they chose to support the charity after colleague Nikki Hill’s husband received treatment there. She explained: “We rushed Chris to the hospital, where the Heart of England team conducted emergency surgery; he was


Sue Knowles (above), marketing/HR director of Costco UK and chair of the LEAD (Leading Executives Advancing Diversity) Network UK Chapter, has won a Barclaycard Everywoman in Retail award. It recognises her as a ‘leader of change’ for her expertise in identifying and developing talent and bringing out the best in people. Knowles has created a ‘Journeys’ network at Costco, promoting development through mentoring. Additionally, her work within the ‘Costco University’ training programme has helped over 3,000 employees. Knowles received the award at a ceremony in London attended by business leaders from the UK’s leading retail brands. She was one of nine winners who are “redefining retail to be more than the simple exchange of goods and services”. She commented: “I am honoured to be recognised as a ‘leader of change’ and want to thank all the people and organisations who’ve supported me in my career. I also want to recognise the other women who were shortlisted.” In July, Knowles was presented with the ‘Inspiring Woman’ award at Costco’s annual conference in Seattle. a Costco UK (01923) 213113


October 2018



David Cullen

The death has been announced of former NisaToday’s corporate events director David Cullen (below) at the age of 74. Cullen, who had been with the group for many years, was a member of the family firm of WH Cullen, which, at its peak, operated more than 50 retail grocery shops until 1971. WH Cullen joined Nisa in the late ’70s and David Cullen became chairman in 1980. At Nisa-Today’s, his sociable nature made him the ideal person to greet guests and make the introductions to speeches given by the group’s founders Dudley Ramsden and Peter Garvin at Nisa-Today’s annual charity events, conferences and awards evenings, which he organised with great success.

Health section Confex has launched a health saver category. Marketing manager Jess Douglas said: “We are aware that many of our suppliers are now creating products for the health and wellbeing market, so we are offering this new, exciting section to our Supersaver promotions. “We hope to fill it with innovative and energising products to target healthconscious consumers, while adding another category to the already diverse promotions we have on offer.” a Confex (01608) 652333 08

October 2018

More IT for wholesaler The Cumbrian wholesaler Caterite Foodservice has extended its Sanderson solution to include the latest voice-directed Warehouse Management System (WMS), benefiting from a faster and more accurate operation. The IT company says that the advantages of WMS extend beyond efficient picking. The foodservice concern’s managing director Lorcan Byrne, who earlier this year replaced Richard Fletcher, said: “The voicedirected WMS system has accelerated productivity and improved workflows across the business. “It has, for example, eliminated duplication of effort and streamlined the handover process between the pick team and delivery staff. We now have faster on-time deliveries and improved customer satisfaction.”

Sanderson’s product development director for wholesale distribution solutions Martin Beatty commented: “It is very encouraging to see more customers investing further in our specialist solutions – a testament to our software and expert in-house team. It’s great to see Caterite using our software to its full potential.” Caterite Foodservice was established in 1969 in Keswick and moved to Embleton in 1999. Its turnover last year was

Brakes has introduced several new lines for the Christmas period. With the ‘free from’ market continuing to grow, the wholesaler is offering glutenfree pork, sage & onion stuffing to serve alongside its turkey roulade, pork chipolatas wrapped in bacon, roasting potatoes, honeyglazed parsnips, prepared

baton carrots and baby leeks. For vegetarians, there is cumin butternut squash & lentil wellington. Also available are whole Norfolk bronze turkeys, pumpkin & sage tortelloni, mince pie ice cream and a new range of British cheeses, including Bath soft and blacksticks blue. The fish category will feature Scottish

MSC mussels in a bisque. a Brakes (0345) 606 9090

Country Range Group has strengthened its own-label pastry selection with the launch of a three cheese and onion roll. Baked from frozen in 30

minutes, the new product is suitable for vegetarians and is supplied in packs of 60 x 162g (approx). The 6in puff pastry roll is filled with Cheddar and red

Leicester cheese, together with an onion mix, and is finished with an Italian hard cheese and rusk topping. a Country Range Group (0845) 209 3777

Deliveries are made in Cumbria, SW Scotland and north Lancs.

£25 million and the company anticipates a £3 million rise in the current 12 months. There are almost 170 staff. Caterite, a member of Country Range Group, operates from a 40,000 sq ft depot and its range includes chilled and frozen food, fresh fruit, dry goods and cleaning products. Goods are delivered by nearly 50 vehicles over Cumbria, north Lancashire and south-west Scotland. a Caterite Food & Wineservice (017687) 76000

Christmas newcomers

Cumin butternut squash and lentil wellington.

Great addition for cheese lovers


New MD for Bestway Martin Race, managing director of Bestway Wholesale, is stepping down from this role, which he has filled for two years, and will be leaving the business on 30 November. The reason given is ‘the unenviable burden’ of being away from his family for five years to work from the C&C/wholesaler’s London head office. Race, who has spent more than 30 years in the

industry, was trading director of Batleys before that company was taken over by Bestway in 2005. His replacement as

Bestway MD – from 1 December – will be Dawood Pervez, son of chairman Sir Anwar Pervez OBE. A qualified solicitor Dawood Pervez joined the company in 2002. Since then, he has headed various functions, including legal, HR, property and marketing. He has also played a key role in acquisitions, digital activity, export business and trading. a Bestway Wholesale 0209453 1234


£5,000 donation Blakemore Foodservice staff have donated £5,000 to Midlands-based charities Walsall Breast Cancer Support Group and Balls to Cancer in Wolverhampton. They held a number of fundraising activities during the year, including a 20k bike ride, sponsored walk, BBQ, dress-down days and raffles.

Hefty fines for illicit tobacco Some 51 shopkeepers who were caught storing or selling illicit tobacco more than once were faced with tax bills and penalties in excess of £11 million last year, according to HM Revenue and Customs. A spokesman for HMRC commented: “We have long focused on prosecuting shopkeepers for selling illegal cigarettes. “However, they started to keep fewer cigarettes at the premises in an attempt to

avoid prosecution or ensure any sentence after criminal conviction was as low as possible.” Official investigators now examine the frequency and volume of the seizures made, as well as evidence gathered from business cash books, till receipts, bank accounts and other sources to calculate tax and penalties owed. This approach involves using evidence collected by HMRC, trading standards

officers and the police to calculate the amount of VAT, income tax and corporation tax that should have been paid by the shopkeepers. Mel Stride MP, financial secretary to the Treasury, said: “We will not allow honest, hardworking shopkeepers to be undercut by tax cheats.” He added: “We are determined to level the playing field.” a HMRC Fraud Hotline (0800) 788 887

Money raised from the activities was matched by the Blakemore Foundation, the company’s charitable trust. A representative from Walsall Breast Cancer Support Group said: “How can we begin to thank all the wonderful people at Blakemore for thinking of us with this most generous donation.” a Blakemore Foodservice (01902) 366066

spending this time with their families. The Bidfood findings also revealed that 45.5% of the 750 hospitality workers surveyed felt a sense of

community with colleagues also working on Christmas Day or Boxing Day. This year’s ‘Merry Missedmas’ initiative will be open to nominations from outside of the company’s customer base, making it industry-wide. Four winners, each representing a specific sector of the trade, will be named on 3 December by a panel including Bidfood’s group sales & marketing director Andy Kemp; Anne Pierce, chief

executive of Springboard; Peter Hancock, chief executive of Pride of Britain Hotels; and Kate Nicholls, chief executive of UK Hospitality. Those chosen will receive Christmas dinner and a gift (after the holiday) paid for by the wholesaler. Kemp commented: “The sheer volume of heart-warming stories we received last year is testament to the hard work and importance of the hospitality sector.” a Bidfood (01494) 555900

One of the two cheques.

Making it festive for those who must work

Following research into how the hospitality industry operates over the festive period, Bidfood is renewing its Christmas gift campaign, rewarding those who have to work over this busy time and who go the extra mile to make it special for thousands of others. It has been found that 93.4% of hospitality workers accept there is a chance they will need to work over Christmas or Boxing Day, and 40% feel guilty about not


October 2018



Exclusive for Booker and Tesco

BrewDog Lost Lager is the first exclusive product to go on sale in branches of both Tesco and Booker since their merger. Developed in collaboration with the retail and cash & carry/wholesale giants, it is sold in C&Cs in 12 x 330ml cans, while in retail stores it comes in 4 x 330ml bottles, 6 x 330ml and 12 x 330ml cans and single 600ml bottles. Dom Hill, Tesco lager buyer, said: “The combined Tesco and Booker business allows us to bring together the retail and wholesale expertise of our two businesses and access new opportunities for growth. “Lost Lager from BrewDog is a perfect example of creating high quality products for our customers at Tesco and Booker.” a Booker Group (01933) 371000

Versatility Brakes has launched Cone Bakes – pastry cones that can be filled with sweet or savoury, hot or cold food. Said to be specially suited to schools, they come frozen in cases of 10 x 6. The wholesaler is providing tools, including a free rack, with the first case purchased by each customer. a Brakes (0345) 606 9090 10

October 2018

Unitas unveils its team Darren Goldney (right), managing director of Today’s Group, is to take up the same position at the newly-formed Unitas Wholesale, while John Mills, his opposite number at Landmark Wholesale, is to be deputy MD. Blakemore Wholesale MD Sam Wilcox has been named as chairman and Simon Hannah, MD of JW Filshill, deputy chairman. The £8 billion-plus amalgam is promising that suppliers and independent wholesalers will now benefit from ‘greater efficiency and effectiveness in getting products and services to market’. Commenting on the appointments, Wilcox (below) said: “Darren’s and John’s complementary range of

skills will be vital to drive our development agenda and bring the great experiences of both organisations together to form a new one.” Among other Unitas Wholesale appointments, Landmark finance chief Andrew Thewlis becomes finance director; John Baines, Today’s trading director, takes the same role in the new concern; and John Kinney, Today’s retail director, assumes the same responsibilities for Unitas. Today’s finance director John Schofield, who stepped in to head that group two years ago after the death of ex-MD Bill Laird, is to retire from the business next May. Until that date, he will act as transformation director for

the new group. In addition to the executive directors, the Unitas Wholesale board will be made up of eight member directors from each group. They are: Sony Bihal, Time Wholesale Services; Jim Cummiskey, Failte Foods; Manish Dhamecha, Dhamecha C&C; Simon Hannah, JW Filshill; George Hepburn, JWG; Chris Hughes, Regal Wholesale; Kali Mulchandani, Imperial Cash & Carry; Nick Ramsden, DB Ramsden; Amaan Ramzan, United Wholesale Grocers; James Russell, Blakemore Wholesale; Asim Sarwar, United Wholesale (Scotland); Marcus Singh, Hyperama; Greg Suszczenia, AG Parfett & Sons; Jay Suterwalla, Sutaka UK; Andrew Wild, Wilds of Oldham; and Don Wouhra, East End Foods. All appointments are effective from 1 November. a Today’s Group (01302) 249909 a Landmark Wholesale (01908) 255300

work and permanent contracts available, we are keen to attract more people to consider driver careers with us.” In a separate development, JJ Food Service has reduced idling by its delivery vehicles by 70% since the introduction of telematics, helping it to achieve a 2% drop in carbon emissions. The telematics project began at the start of the year and, within six months, the amount of time vehicles were left idling reduced by 55% (1,449 hours) per month while miles per gallon rose

by 15% to around 9.6. JJ Food Service (01992) 701701

Employee ‘drive’ launched by JJ JJ Food Service has unveiled a new recruitment campaign highlighting the ‘family friendly’ nature of its HGV and 7.5-tonne driver roles. According to the Enfieldbased company’s HR manager Joanna Florczak, driver jobs can often involve late night and weekend work, which can be difficult for those with families. She commented: “Our drivers work Monday to Friday, which makes the job suitable for people who have commitments at home. With no night shifts, no weekend




Strong ethics, strong position In a rare interview, Costco UK’s trading director Steve Barnett talks to Cash & Carry Management’s Kirsti Sharratt about what’s behind the continual growth of the business.

here are no direct competitors to Costco in the UK – it is the only membership warehouse club – but it considers every business that sells any of its products to be a competitor and it categorically will not be beaten on price. However, this is not the only factor in its success. Celebrating its 25th anniversary of trading in the UK, Costco has a business model that sounds simple but requires the full commitment of its employees and management to deliver. Others in the UK have tried to emulate it but have failed (namely N&P with Cargo Club), and yet it is this model that is key to Costco’s robust performance worldwide, as UK trading director Steve Barnett – who has been with the company since it first opened in the UK – emphasised when he spoke to Cash & Carry Management.


Costco first opened in the UK in 1993. How has it performed since then and what are the factors in its success? Our business is showing growth, including like-for-like growth, and that has been the case every year since Costco was launched in the UK 25 years ago. We have very simple ethics: obey the law, take care of our members, take care of our employees, respect our vendors (suppliers), and if we do all that we

will achieve our goal of rewarding our shareholders. We live and breathe by those ethics and we have complete and utter proof that they work. Our mission is to sell top-quality merchandise at the lowest possible price. If a member came to us saying they found a product cheaper elsewhere, we would give them a refund and then we would either remove that product from sale or beat the price. In our market we are continually having to respond to competitor activities. That is the nature of the UK market. There are no other membership

Costco’s mission is to sell top-quality merchandise at the lowest possible price.


October 2018


warehouse clubs in the UK. Charging a membership fee enables us to lower the price of goods. We pass the money back to our members in savings. The more people spend, the more they save against their membership fee. One of our mantras is that we must maintain our core principles, values and culture. That hasn’t changed in the history of the business. We have a handbook several hundred pages long that identifies everything an employee needs to know and understand about Costco, and everything we do is aligned to that. The companies I have worked for previously have not had the same core principles, values and culture, and I am not sure there are as many long-serving employees in any other company. My boss, Steve Pappas (Costco UK’s MD), signs a card for everyone who has worked for us for five years, 10 years, 15 years, etc, and he signs hundreds of them every year. To what do you attribute the high level of employee retention at Costco? There are several reasons. The first is that we like to recruit people to an entrylevel position and then we train and promote from within. People can see a progression, and one of the sayings of our founders is that if you give people good

[ INTERVIEW ] jobs and pay them a good wage, good things will happen. When people start at Costco, they are on an hourly rate. That rate rises in increments every 1,040 hours until they reach what is deemed to be a toppedout salary. Once they have been at the top level for a full year they get a bonus, and the topped-out rate also increases on a regular basis. People can really understand how much they can earn. Most of the management in our business started in entry-level positions. I began as a buyer but that was because we were a start-up – there were nine people at head office when Costco first opened in the UK. Sue Knowles (marketing/HR director), Magan Chauhan (finance director & company secretary) and I were all part of that small, lean team. Now Costco has 6,800 employees in the UK, in our 28 branches and our head office in Watford. How many members do you currently have in the UK and how do you go about recruiting new members? The number is confidential. We mainly get new members by word of mouth, although we also have small marketing teams at each branch who visit businesses in their local area. How has Costco’s UK operation developed in the past couple of years and what plans are there for the future? We are rolling out petrol stations to our UK branches. We have 14 now, and we are working on planning applications in most of the other locations. We are the cheapest in the market for petrol – we respond to local competition – and only members can buy petrol from us. We have also started offering car hire. In the US they have Costco Travel, which also does cruises, air fares and holidays, and we are doing a soft launch here starting with car hire. The US also has a much wider delivered business than we have. We have offered deliveries from our Aberdeen branch for several years and we are trialling the service in a couple of other locations. It is mainly aimed at our trade members who wish to buy larger quantities – it is a wholesale-orientated delivery service. We are always looking to offer additional services to enhance the value of membership. For example, we have

If you go down to Costco any day, you’re sure of a big surprise!

optical departments and hearing aid centres in our branches, and we have approved providers of mortgages, insurance, payment processing, etc, that our trade members can access. Apart from the services you offer, are there any other differences between Costco’s UK and US operations? No – the business model works in all markets and we have no desire to change it. Costco is not a success because we have entrepreneurs coming in to do things differently – it’s a success because of our core principles, values and culture. We’re not revolutionary, we’re evolutionary. The fantastic thing about Costco UK is that we have a parent company in the US that has been around a lot longer than us and it is a great testing ground –

Tyre fitting is just one service offered.

if something works over there then it’s going to work almost everywhere, whether it’s the UK, Korea, Taiwan, Japan, Mexico, Australia, France, Spain, Canada or Iceland. The markets only differ in terms of taste of product; however, because there’s a lot of globalisation of the major brands, the differences aren’t as marked as you might think. In terms of the UK wholesale/retail market place, what is Costco’s USP? Apart from being the only membership warehouse club, we only carry 3,800 items – of these, 1500-1800 are core lines and everything else changes on a seasonal or rotational basis. One of our greatest strengths is that we carry a number of unique products. It is a bit of a treasure hunt environment because people never quite know what they’re going to find. We also carry the broadest range of products of any UK business – from car tyres to jewellery, from fresh meat to wines, from TVs to clothing. Nobody offers the assortment of products that we do and we go for what we believe to be the best quality, best value item in each product category but we don’t offer a great deal of choice within the category. Every item has to stand and fall on its own merits. We run roadshows, which are part of our treasure hunt. These give us an opportunity to trial different items – they are like pop-up shops – and they offer our members enhanced value.


October 2018


[ INTERVIEW ] Why do you think there are no other membership warehouse clubs in the UK? We try to keep things simple and straightforward, and we have the confidence to stay with our mission and do things properly. In the past, a lot of people would have said that Makro was the closest thing to Costco and that would have been a fair summary, but Makro never maintained the level of detail on quality, value and the treasure hunt. We have not changed our stance and the fact of the matter is if you give people great quality merchandise at the lowest possible price they will want to shop with you and continue to shop with you. What’s more, our members know that if they have a problem with a product we will give them a refund, no questions asked. What are the most expensive and unusual products Costco has sold during your time with the business? The most expensive product sold worldwide by Costco was a £250,000 Andy Warhol artwork; in the UK it was a £45,000 diamond ring. The most unusual item sold by Costco worldwide is coffins but we can’t find a way to sell them in the UK – we have tried to but it’s a difficult market here, it’s so controlled. However, we have sold full-size elephant and giraffe sculptures made from scrap metal in Kenya! How is your own-brand Kirkland Signature performing, and what plans do you have to develop your ownbrand offering? Our Kirkland Signature range features around 500 food and non-food lines and is extremely successful. We believe it is the best value product that we offer our members. The quality is as good, if not better, than the national brands and we don’t profiteer on it. It will continue to grow in terms of sales and the number of lines. I think it is unlikely we would introduce another own-brand. Costco worldwide sells huge volumes of Kirkland Signature products and we have to make sure that the volumes are sufficient to meet demand but also that the products are ethically sourced and sustainable. We have a corporate team in the US who spend a great deal of time ensuring those principles are met – we have a lot of corporate responsibility. 14

October 2018

The quality of Kirkland Signature ‘is as good, if not better, than the national brands’.

For example, where we work with developing countries, we carry out factory audits to ensure there are no underage workers, that people are well paid, that their living conditions are good if they live on site – there’s a whole raft of conditions that our supply base has to agree to and these come under the Costco code of conduct. This is important because we don’t want people to think that an item is only cheap in Costco because we are paying the people who make it two and six. Costco is known for having good relationships with its suppliers (vendors). How much is this a factor in its success? Our code of ethics insists that we respect our vendors. That even comes down to the quality of a display in our warehouses because if we are not displaying their products correctly we would consider that as being unfair to them. Our policy also expressly prohibits the acceptance by any Costco employee of any gratuity from a vendor with whom we are currently doing business or who we are considering for future business. This is part of our code of ethics. We are so intent on maintaining

Costco UK in numbers £2.11 billion turnover (year to 28 August 2016) 28 branches (of 761 worldwide) 1 branch in Iceland, managed by Costco UK 6,800 employees 14 petrol stations at UK branches 3,800 lines stocked in each branch 500 Kirkland Signature own-brand lines £7.2 million raised for Children in Need over the last 19 years £45,000 diamond ring – the most expensive item sold by Costco UK


our core principles, values and culture, and that’s what makes us a success. Everybody knows where they stand, from our employees to our vendors. What impact have technological advances had on Costco’s business? We have always had amazing systems of recording what we sell, how we sell it, when we sell it and who buys it, so we have always had an incredible amount of data at our disposal. In that aspect we are very advanced and we are continually evolving our systems to ensure we stay at the forefront of the industry. The secret with data and technology is how to use it to truly enhance a business, rather than letting it dictate how a business operates. There are cases where some businesses have been thrown off track by data whereas we are careful to use it in the right way. In late 2012 we introduced our online business, www.costco.co.uk, which focuses primarily on non-food. We are very happy with it – it has shown high year-on-year growth. Costco contributes a lot to charity. In the UK, which causes do you support and how do you raise funds? Charitable giving is a big part of Costco’s business worldwide. In the UK we are committed supporters of Children in Need. Each year we hold a golf day and dinner at Celtic Manor, which is our main fundraising event, involving over 700 employees and vendors. Our branches and employees also run their own fundraising activities. Over the last 19 years, Costco UK has raised £7.2 million for Children in Need. Besides this national effort, each branch has a budget to support activities in local schools and charities, and we also have a programme working with United Way whereby we will contribute to the same charity donated to by our employees via our payroll system. CCM



[ SPOTLIGHT ] Frank Fraser, head of catering sales, BB Foodservice

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What most frustrates you in business (and in life generally)? People who are inflexible and are not willing to listen to others. One of the Bestway company values is ‘Everyone’s voice matters’ and when people are listened to they feel part of the solution.

‘Always give your best’ What has been the major milestone or turning point of your career? When Bellevue was sold to Bestway there were concerns throughout the management team as we had worked for a family company for a lot of years and suddenly we were part of a major organisation. I was finance director at the time, a role that would no longer exist locally, but Martin Race (now Bestway’s MD) gave me the opportunity to move into operations. As part of the Bellevue management team we all had to perform operational roles when working late nights and weekends so the change wasn’t too dramatic. Who has been the biggest inspiration to you? I worked alongside some characters in the East Rand gold mines in South Africa as a young man in the mid ’80s, but felt at home when I landed the job as financial controller with Bellevue in 1995. Working for Graham and George Benson [the brothers that owned Bellevue] taught me a lot, and as a family business we had to be entrepreneurial to stay ahead of the big players. Since the sale to Bestway in 2010 the biggest influence on my career has been Martin 16

October 2018

Race. He gave me the opportunity to broaden my experience and it has been mostly good times since then. How do you maintain a work-life balance? My current role as head of catering sales for BB Foodservice involves a lot of travel and long days so, as far as is practical, I take the view that Monday through to Friday is the working week and the weekend is for catching up with family and a bit of fun time. Smartphones are crucial and emails are how we communicate in business today but we can lose the personal touch. I make sure I speak to my team every other day.

If you were able to retire tomorrow, how would you spend your time? With the exception of watching the ‘famous‘ Dundee United, I don’t really have any hobbies to speak of, so as long as I’m enjoying what I do and am healthy I intend to keep going. [He is pictured at Anfield with a statue of Bill Shankly and as a young boy (left) with his brother and sister]. What advice would you give someone starting his/her first job? Always give your best, ask plenty of questions and look to become involved in different aspects of business. That way your commercial value grows. What type of business would you go into if it wasn’t wholesale? A beach bar in a sunny climate sounds ideal. If you had a million pounds to invest in business, how would you spend it? Retail/wholesale is a tough place to be just now but residential property is still relatively safe – although locationdependent – so perhaps student accommodation in a university town. On second thoughts I would buy that beach bar CCM and employ someone to run it!

From gold to fruit, family firm to foodservice Frank Fraser went to Dundee College of Commerce in the early ’80s, married in 1983 and moved to South Africa for four years where he worked in various finance roles in the gold mining industry. On returning to Scotland in 1987 he worked for Fyffes in the Edinburgh Fruit Market and then in 1995 he was appointed financial


controller by Bellevue. The company was sold, bought back by the family and sold again to Bestway in June 2010. Fraser moved into sales four years ago, running the Scottish foodservice team, and he was appointed to his current national role – head of catering sales for BB Foodservice – in December 2016.

Better food can mean better business. Meet the experts changing the face of food at this year’s Food Matters Live.

Register now for free entry: foodmatterslive.com Don’t miss your chance to ―― discover new, innovative ingredients & products ―― visit the Innovative Ingredients Live theatre @foodmatterslive ―― connect with buyers, suppliers & producers foodmatterslive.com/linkedin through Match foodmatterslive.com/facebook ―― forge business partnerships with a series of foodmatterslive.com/youtube networking events

Room for change in convenience



ith consolidations in the convenience channel that could be redefining the wholesale sector, the IGD Convenience Retailing Summit came at the ideal time to reflect on a turbulent 12 months for the industry. The landscape has changed in retail and foodservice after the demise of major contributors such as Blakemore Wholesale and P&H, and the newly formed Unitas has emerged as the biggest wholesale player for next year. Online business by C&Cs remains a priority to drive growth in the next four years, with a forecast compound annual growth rate to 2022 of 8.9%. However, in-depot purchasing will continue as the primary route for wholesale customers so innovative thinking and a focus on customer satisfaction remains key. “There were massive changes in the marketplace last year. That seems to be settling – I’m hearing that strategies are

Guy Ousey, IGD head of retail insight: ‘Strategies are being put into place by retailers to take them forward.’

being put into place by retailers to take them forward and to grow over the next two to three years,” remarked Guy Ousey, head of retail insight at IGD. Conference speakers and themes reflected a major shift in the traditional convenience landscape, from wholesalers sharing progress with one another and with new partners outside the channel to the multiples’ clear interest in redefining the boundaries with mergers and acquisitions. Moreover, retailers are not passively waiting for the next move in the marketplace – there are ambitious, committed store owners creating multi-mission destinations that are offering everything a consumer would want, and they are forging partnerships to cater to current and forecast trends. This level of proactivity instils confidence in their own worth and a demand that their needs are met by suppliers and wholesalers alike. As the convenience channel adapts to absorb new interests, approaches and end users, there is an opportunity for all parts of the supply chain to assess their strategies, goals, needs and priorities. Throughout the past year, both wholesalers and retailers have had to make some quick and bold decisions to overcome circumstances and Jonathan Miller, CEO of McColl’s, spoke of how the business managed to turn adversity into opportunity when hit by the collapse of P&H – which supplied around 700 McColl’s stores – last year. “McColl’s today is a true convenience business. We’ve got a new relationship with Morrisons – now our wholesale

McColl’s new partnership is the first foray into wholesaling for Morrisons.

partner – so we believe we’re a stronger business. We’ve achieved this in what has been a pretty tough year,” he noted. “We asked Morrisons to accelerate the roll-out of their supply to our P&H stores; we leaned on our relationship with Nisa, asking them to deliver more stock to the stores they were already supplying; and we set up our own van operation to move stock around locally.” McColl’s was not the only business left flailing last year and supported by an industry that recognises the importance of the bigger picture. “This is a fantastic sector that we work in, where everyone will pull together to help a business when it’s in trouble,” said Miller. McColl’s new partnership is the first foray into wholesaling for Morrisons, so will be followed with interest by the trade. “We need to engage with Morrisons, and we need to do that in a way that is not exclusively through the grocery lens. Those who operate in convenience know there is a very real difference between what works in grocery and what works in convenience,” said Peter CCM Miller, McColl’s trading director.

Mission control: adapting to shoppers’ shifting requirements As the multiples make their presence felt in the wholesale sector, it was pointed out that some of the learnings they bring can benefit convenience as a whole; for instance, it’s increasingly clear that adapting to shoppers’ changing missions needs to be prioritised. The introduction of Co-op’s ownbrand line-up of ready meals to Nisa shops is an example of how convenience stores must choose their range


October 2018

with today’s customer in mind. Food to go remains a growth area for the channel to exploit further, and Co-op’s brand identity resonates with customers seeking quality, fresh and local produce. Sainsbury’s Local has also chosen the mission as part of its strategy to evolve its convenience offering. “We have overinvested in a few areas, including ‘food for tonight’, making sure that mission is competitive,” said director of


commercial operations Graham Biggart. Booker Retail, a £2.65 billion business with double-digit growth in all its fascias and servicing 30 million consumers, has introduced a £5 meal deal as part of its growth strategy for fresh and frozen. Meanwhile, Spar, a group that has £2.9 billion in retail sales, is also addressing the food-to-go and meal-for-tonight missions in recognition of the growth opportunity.


The perfect ingredient for sizzling workforce management

Crown Workforce Management is providing just the right

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and attendance and rostering software.

charitable ethos underpins its values in bringing together

Wing Yip, which was founded in 1970 in Birmingham, supplies authentic ingredients to the UK’s Chinese and Asian restaurants, discerning chefs and food enthusiasts through its stores and wholesaling operation.

cultures and communities. “We look forward to supporting Wing Yip in its future activities and continued success.” Andy Yarnall, Wing Yip’s Group Operations Director, said:

Its national distribution centre spans approximately 200,000

“In order to replace our existing time and attendance software

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Wing Yip looked at a number of companies that provide these

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The family-run business was keen to streamline its

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manage the complexities of people planning and attendance

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reporting. Furthermore, we were looking for a solution that

2018 – will allow Wing Yip to schedule staff and manage its time

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and attendance more effectively. Employees will also benefit from the introduction of self-

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holidays through the system. Mike Hawkesford, Crown’s Managing Director, said he was

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business: “Without doubt, Wing Yip has played a significant role


‘Prepare and be confident’


‘Progress to Success’ was the theme of last month’s Women in Wholesale conference, now in its third year.

The afternoon panel, chaired by Coral Rose of Country Range, included (left to right): Sarah Whiddett of Bidfood, Hazel Detsiny of Unilever Food Solutions, Clare Bocking of Tulip Food Solutions, and Debbie Robinson of SPAR UK.


he issue of equality in and out of the workplace continues to gather momentum, and the third ‘Women in Wholesale’ conference showed that voices are getting louder in the wholesale sector. Under the theme ‘Progress to Success’, the event at The Royal Society of Medicine in London saw around 200 delegates listen to a varied line-up of speakers covering key topics. The wholesale journey of Debbie Harrison, joint managing director of Pricecheck, was an early indication that it is possible to thrive in the channel while balancing family responsibilities. Pricecheck has already seen huge growth from its 2008 £17 million turnover and has further ambitious targets, fuelled by Harrison’s resilience and belief that “adversity can be used to push business forward”. Jill Livesey, managing director of HIM, pointed out that the wholesale industry needs to examine its priorities. In the channel, two in three HR professionals say that their company currently runs an internship or work experience programme. Of these, none of them say they are currently targeting female students or graduates, despite the need for, and benefits of, fresh female talent in wholesale. Taking to the stage to address the predominantly female audience, Tom Gittins, business development director of Confex, talked about inspiring teams 20

October 2018

through effective leadership. “It’s not just about delivering results, it’s about how you deliver results while earning the respect of your team,” he stated. With Confex remaining on target to reach its £3 billion turnover by 2020 goal, the family business is one where a positive and communicative working environment is key to its success. One hurdle that many women in the workplace find difficult to overcome is the ability to communicate with impact, a recurring theme throughout the day. This was the topic for discussion by a panel chaired by James Bielby, chief executive of the FWD. Participating were Natalie Campbell, head office trader at Parfetts; Sedat Kaan Hendekli, head of operations at JJ Food Service; Laura McKechnie, associate director, field sales wholesale at Coca-Cola European Partners; and Elit Rowland, founder of Women in Wholesale. Taking questions from the floor, the panel spoke about the need for preparation, clarity and confidence to progress to the best of your ability. While these are obvious requirements, self-doubt can impair effective communication despite the most rigorous preparation. Hazel Detsiny, managing director of Unilever Food Solutions, spoke about ‘impostor syndrome’. Defined as ‘a belief that you’re an inadequate and incompetent failure, despite evidence that indicates you’re skilled and quite successful’, this fear can affect

New awards for 2019 Next year’s WiW conference will include the 2019 Wholesale Star Awards. The categories are: Best Place to Work Best Recruitment Campaign Best Initiative to Retain and Develop Talent Best Inclusive Leader Woman of the Year

• • • • •

accomplished employees and their career paths. Her advice was to recognise the feeling for the constraint that it is, be thorough in preparation, be brave, and use a trusted support network to draw the confidence needed to present yourself positively. She added: “I do think you should fake it until you make it; even if you aren’t confident, just pretend that you are.” Sarah Whiddett, head of insight and customer experience at Bidfood, supported this view and had some useful advice on where to draw strength. “Confidence is in the eye of the beholder; it’s how you’re perceived,” she explained. “It’s a mix of nature and nurture: some people are naturally confident and for some it’s about having the right people around you. I’ve become more confident as my home life has become more stable and supportive.” By the close of the conference, it was clear that capable, confident women are negotiating their paths in wholesale, CCM and the sector is better for it.

Tom Gittins of Confex and Hazel Detsiny of Unilever Food Solutions share their thoughts and experiences regarding essential skills for effective leadership.


Illegal tobacco is damaging your local community, funding organised crime and undermining local businesses We all have a role to play to combat the issue. Don’t be complicit in the illicit trade

Anyone with information about this type of crime should contact Trading Standards on 03454 04 05 06 or visit www.jtiadvance.co.uk/DontBeComplicit


What exactly should a woman on maternity leave be paid? Meet the HR expert Cate Ritchie, 121 HR Solutions Cate Ritchie is a fellow of the Chartered Institute of Personnel and Development

omen are entitled to take up to 12 months’ maternity leave and many employers still get it wrong when it comes to providing legal entitlements during this time, leaving them potentially liable for claims of maternity discrimination. All women, regardless of length of service or hours worked, are entitled to 12 months’ statutory maternity leave. Those who qualify are entitled to SMP for 39 weeks – the first six weeks at 90% of average salary, with the remaining 33 weeks at statutory maternity pay – currently £145.18 per week. Other than salary, employers’ obligations continue during maternity leave – which means that all normal benefits continue. The only exceptions to this rule are benefits provided solely for


business use, such as a car, mobile phone or laptop. However, if the contract allows for these items to be used for personal use then the employee MUST continue to be allowed to use them during her maternity leave. Other examples of benefits that an employee may enjoy and must be continued include gym memberships, memberships of share schemes and life insurance schemes, private medical insurance, and the reimbursement of professional subscriptions and training costs.

Importantly, women who have been on maternity leave must be treated in all respects when they return as if they had not been absent – they are entitled to any pay rises given while they were away. Women continue to accrue their contractual holidays. If a woman takes 12 months’ maternity leave then she could return to work with a full year’s holiday entitlement to take. Where a woman has not taken her holiday for the leave year before she started maternity leave then she must be allowed to carry that over to a subsequent year. Employers must also continue to pay their pension contributions in respect of a woman on maternity leave based on her usual pay during the period of paid CCM maternity leave.

121 HR Solutions provides employers of all sizes with professional, cost-effective human resource support. If you would like guidance about maternity leave or any other HR matter, contact Cate at cate@121hrsolutions.co.uk or phone (0792) 121 3890.

Applying absence management policies when staff are ill The number of people attending work while ill has more than tripled since 2010. A recent report has found that 86% of 1,000 organisations surveyed had noticed staff coming to work while ill – compared to just 26% eight years ago. Sickness in the workplace is inevitable but it is important to have clear policies relating to the reporting and monitoring of absence: a Employees should report their illness in advance of the time they are due to start work. a There should be a specific policy in contracts or handbooks setting a deadline and stating who to call in the


October 2018

event of absence. a Employers are not legally obliged to allow staff time off work for visits to the GP or dentist. The policy can state that employees attend these appointments outside of work hours, take annual leave or make the time up later on. a If an employee is ill for seven calendar days or more, they need to supply a GP’s fit note. For absences of seven days or fewer, employees can selfcertify. a Those who are employed, earning at least £113 a week and who have been off work for four consecutive days are entitled to statutory sick pay (SSP). The current rate of SSP is £89.35 per week


and can be paid for up to a maximum of 28 weeks for the days employees usually work. SSP is payable after three ‘waiting days’ of absence. There is no rule that says an employer cannot contact an employee during a period of sick leave. However, contact should be handled sensitively, particularly where someone is suffering from mental health problems or work-related stress, and they might find regular contact from their employer distressing. Again, the policy should set out the amount of contact, and by whom, during the absence.

CCM Chefs’ Own-Brand Own-Brand A Awards wards 2019

CCM Chefs’ Own-Brand Awards 2019 ENTRY FORM

CCM Chefs’ Own-Brand Awards 2019 Following the success of the inaugural CCM Chefs’ Own-Brand Awards, Cash & Carry Management magazine, in association with the Craft Guild of Chefs, has launched the awards for 2019. We know the care and passion that goes into creating a successful own-brand. It doesn’t just happen by magic, and development chefs and supply partners work hard to bring exceptional products of excellent quality and great value to market – products that are driven by customer need and provide innovation in many categories. ese awards give cash & carries and delivered wholesalers whose own-brand products hit the mark the recognition they deserve, with endorsement from the Craft Guild of Chefs – the leading chefs’ association in the UK – who will conduct the judging in blind tastings. Entries are open for products in all food & drink categories at a cost of £105 per product, with one free for every 10 products entered. New this year is a ‘Best Innovation of the Year’ category, open to any foodservice own-brand product launched within the past 12 months. e closing date for entries is Wednesday 3 April 2019. e products must be delivered on the date and to the delivery address that will be confirmed on receipt of your entry. e winners will be announced at a prestigious awards lunch in June 2019. For further information, contact Martin Lovell or Kirsti Sharratt at Cash & Carry Management magazine on 01342 712100.

e winners of the 2018 CCM Chefs’ Own-Brand Awards at the awards lunch prepared by chefs of the future.

Product Categories

Are your own-brand products the best in foodservice?

Best Innovation of the Year: open to any foodservice own-brand product launched within the past 12 months Afternoon Tea: scones, cakes, sweet bakery, muffins, doughnuts, cookies, traybakes Antispasto Bakery: baguettes, artisan, bread, rolls, petit pain, burger buns, hot dog rolls, dough balls, tortillas, bagels, ethnic bread, savoury hand-held, pies, pasties Baking Biscuits Butchery: poultry, beef, pork, lamb, game Butter, Fat, Spreads Canned: vegetables, beans, tomatoes, fruit, fish, meat, lentils, pulses, noodles Cereals Cheese Children’s Selection Chocolates, Mints, Petits Fours Cooking Sauces Crisps & Popcorn Delicatessen: sandwich fillings, salads, pesto, dips Desserts: sponge puddings, crumbles, tortes, gateaux, trifles, pies, tarts, flans, pancakes, crepes Egg Products: omelettes, tortillas, souffles, quiches, yorkshire pudding Fish & Seafood: fishcakes, scampi, breaded fish, battered fish Fork Buffet: canapes, Oriental, buffet bites, mini desserts Frozen Vegetables & Fruit Gluten-Free

Product Categories

Are your own-brand products the best in foodservice?

Gravies, Stocks, Bouillons, Jus Hot Beverages: tea, coee, hot chocolate Ice Cream, Sorbet, Gelato, Frozen Yogurt Pizza & Pasta Potato Products: baked, chips, fries, mash, hash browns, wedges, croquettes Preserves Processed Meats: bacon, cooked meats, sausages, stuďŹƒng Ready Meals: British, Indian, Mexican, Americas, Middle East, Oriental, Italian, pies, bakes, vegetarian/vegan Rice Sauces & Condiments: portion packs, bulk Seasonal Products (Christmas, Easter, etc) Spices & Seasonings Soft Drinks: carbonates, still, juices Soup Wines, Beers, Spirits Yogurts Please note that this list is not exhaustive: let us know if you would like any other categories to be included.

To enter, send a list of the products you wish to enter and the category for each product to mail.winlove@btconnect.com or complete the online entry form at www.cashandcarrymanagement.co.uk Closing date for entries: 3 April 2019 We will then contact you with information about the next stage

Meat-free meals offer convenient choices



Quorn is stepping up its activity this autumn, with reformulation and NPD covering a range of meal and snacking occasions. Current best-selling ready meals are being launched in improved versions. As winter increases demand for comfort foods, the new recipe Love It Lasagne, Tantalising Tikka Masala and Comforting Cottage Pie are set to drive growth for wholesalers. Alongside this,

Rolling out world flavours are being introduced to the Quorn line-up with innovative new products such as Moroccan Pieces & Cous Cous, Creamy Laksa Curry and Kicking Cajun Fillets, all of which will be available to wholesale if demand is there. Backing the NPD, brand awareness will be reinforced by a new TV advert running through November – part of a £14 million brand investment this year. The meat-free category is showing 17% year-on-year growth, with sales now exceeding £339 million (IRI/Kantar). Quorn Foods (01642) 717254

Imperial Tobacco has extended its reach in the UK roll-your-own market with the introduction of Riverstone easy rolling tobacco. Available in 30g and 50g packs, with an rsp of £10 and £16.50 respectively, the brand is positioned to offer quality at a value price. “With adult smokers continuing to switch from factory-made cigarettes to RYO products, plus downtrade to products that are perceived to offer increased value for money, we anticipate it will take the economy RYO sector by storm,” says Jamie Burns-Smith, brand manager. Imperial Tobacco (0117) 963 6636

Vape update

Refreshing deals

Seasonal sales

JTI has updated its Logic Pro capsule vaping device to Logic Pro 2. The new product is lighter and smaller, with a new soft-touch finish and an improved charging time of 100 minutes. The upgraded device has an introductory rsp of £10 and uses the same smart capsules as the Logic Pro. “With the vaping category growing by 8.4% in the last year, we are continually developing and innovating to ensure we meet the needs of the evergrowing number of vaping consumers in the UK,” says Nick Geens, head of reduced risk products. JTI (01932) 372000

Britvic has launched a ‘2 for £1’ mix and match offer on cans of its Britvic and PepsiCo brands, following the success of its PET bottle ‘2 for £1.70’ multibuy promotion. “It’s really important for retailers to ensure they stock a range of brands in this format. To support the promotion, we have a range of PoS toolkits available which feature our can range, PMP and the mix and match messaging,” says Trystan Farnworth, commercial director, convenience & impulse at Britvic. The new mechanic provides retailers with a 40% POR. Britvic Soft Drinks (0845) 758 1781

To pick up more seasonal sales, pladis has launched a range of Halloweenthemed cakes, along with two Bonfire Night themed cakes. For Halloween, McVitie’s Hobnobs Terrifying Toffee Apple Flapjacks and McVitie’s Digestive Beastly Bakes come in a four-pack, while McVitie’s Jaffa Lemon & Slime cake bars and McVitie’s Jaffa Freaky cake bars come in packs of five. For Bonfire Night, Tate & Lyle Sticky Toffee Pudding Cake and Tate & Lyle Sticky Toffee Apple Pudding Cake bring sharing opportunities for the event. Both ranges have an rsp of £1. Pladis 020-8234 5000


October 2018



Trust in big brands to deliver

OTC remedies for cold and flu accounted for UK sales of £267.1 million in 2017 (Statista). With the NHS highlighting that winter ailments can often be treated without seeing a GP, consumers are likely to turn to their local store for products that relieve their symptoms. here are around 57 million GP consultations and 3.7 million visits to A&E every year for self-treatable conditions, costing the NHS an estimated £2.3 billion (PAGB). As a result, consumers are being encouraged to self-treat minor conditions, and convenience stores are well placed to respond. “Coughs and colds are among the most frequently suffered ailments and are also the most treatable through selfmedication. This opens a huge opportunity up for retailers and wholesalers to tap into, demonstrating the importance of a well-stocked winter remedies section,” says Jo Cooper, sales director – grocery, wholesale and convenience at GlaxoSmithKline (GSK). “As well as cold & flu and pain relief, shoppers could be looking for products to treat other minor ailments including cold sores, indigestion and heartburn, allergies and cuts and grazes. Shoppers will mainly have a brand and product in mind when entering a store so it is vital that a wholesaler stocks the well-known and trusted market leaders that their customers are looking for.” She adds: “Be sure to offer the leading national brands in a variety of different formats such as liquid, tablets and sachets, along with single and multi-symptom treatments and specific remedies for targeted relief.” GSK’s leading brands include Panadol, Beechams, Piriteze, Zovirax, Savlon and Voltarol. The key for depots to generate the largest profit from the OTC category is to ensure they are driving sales out of the depot, into stores and out to consumers, says Cooper. “Depots can help retailers maximise their sales by further educating them on how to create an open fixture on the shopfloor, where customers can browse the range of options available. Moving OTC products from behind the counter to the shopfloor will help sales not only for retailers but also the wholesalers they buy from,” she points out. GSK urges retailers to offer a wellstocked range of OTC medicines all year round as people suffer from summer colds and winter allergies outside the traditional seasonal peaks. “However, there are fluctuations in demand across the year and October onwards sees the strongest sales of cold and flu treatments,” she says. “Therefore, retailers are advised to stock up early.” Cooper continues: “For cash & carry depots, creating easy to navigate bays that clearly separate the different symptom sub-sectors helps to create an effective layout which retailers can then replicate in store.



October 2018


In addition, by using the well-known brands as signposts to the category, wholesalers are reinforcing some of the key principles which will help retailers create an effective fixture.” The importance of focusing on leading brands is also emphasised by LanesHealth, which distributes the UK‘s leading decongestant oil brand Olbas (IRI). “In order to prepare for the cold and flu season, wholesalers and retailers should stock up on a range of OTC remedies. As decongestants are often distress purchases, consumers will frequently select well-known and trusted brands when looking for ways to soothe their symptoms. Wholesalers and retailers should therefore look to site Olbas prominently in order to help consumers find it when they are feeling unwell and help boost sales at this peak time,” says brand manager Samantha George. Olbas is running a seasonal advertising and PR campaign in support of the full range of products, comprising Olbas Oil, Olbas for Children, Olbas Nasal Spray, Olbas Bath, Olbas Pastilles and Olbas Inhaler Stick. A range of PoS material is also available.


• Sales of Fisherman’s Friend up by +3% year on year (total market)* and by +3% in impulse and convenience • Strongest ever volume sales January - March 2018** • Nationwide sampling campaign kicks off in November • £1 million January 2019 national TV advertising burst starring world-renowned tenor, Alfie Boe

GET ON BOARD & STOCK UP NOW WWW.FISHERMANSFRIEND.CO.UK U.K. Distributor – Ceuta Healthcare: 0844 243 6661 *Ceuta Healthcare, in-market sales, Jan-Aug 2018 v. Jan -Aug 2017 **Ceuta Healthcare, in-market total sales


Medicated confectionery “Medicated confectionery is widely recognised as a distress purchase and, as such, offers a huge opportunity for retailers to capitalise on impulse sales during the winter cough and cold season,” points out Martin Stimson, area business manager for Fisherman’s Friend in the UK. “With shoppers inclined to stock up for the colder months, particularly during high incidents of illness – and often ditching higher-value items in favour of more cost-effective remedies – lozenges provide an effective solution,” he says. “This also helps to maximise opportunities amongst shoppers looking for quick relief from minor ailments, especially if well-known and trusted brands are positioned near the till point. Indeed, to capture those all-important impulse purchases, the key is to stock brands that are recognised and trusted by the customer,” he advises.

‘To capture those all-important impulse purchases, the key is to stock brands that are recognised and trusted by the customer’ Martin Stimson, area business manager, Fisherman’s Friend Fisherman’s Friend, distributed by Ceuta Healthcare, is currently being promoted in the wholesale trade with two offers: 20% free on cash & carry cases of Sugar Free Blackcurrant and Honey & Lemon, and ‘24 packs for the price of 22’ on Aniseed and Sugar Free Cherry flavours. Visibility of Fisherman’s Friend will also be bolstered with a heavyweight marketing campaign featuring a combination of digital, social media and PR activity, as well as sampling. The brand will return to TV screens in the New Year with adverts once again featuring world-renowned tenor, Alfie Boe. The £1 million burst of TV activity will run throughout January across ITV and satellite channels. In the first three months of 2018, sales of Fisherman’s Friend were 33.4% higher than average for the first quarter. The promising start to the year continued across all outlets, as the brand’s sales in the seven months to the end of July were ahead by 3% compared with the same period in 2017 – and by 5% in impulse and convenience outlets. “The Fisherman’s Friend campaign featuring Alfie Boe has become seminal amongst our loyal fan base who expect to see Alfie on screens at the start of the New Year. Our recordbreaking start to the year also proves how much sales growth benefits from the campaign,” explains Stimson. “As such, it is a natural decision to repeat the activity.” 30

October 2018


Mars Wrigley Confectionery’s medicated confectionery portfolio is currently worth £8.4 million and represents 9.9% of the total category (Nielsen). Lockets comes in three flavours – Honey & Lemon, Extra Strong and Cranberry & Blueberry – and the brand benefits from a dedicated range of PoS to help retailers make the most of their OTC medicines and encourage customers to buy on impulse. “Having a fully stocked display will help maximise profit potential and guarantee repeat visits from customers,” maintains confections marketing manager Dan Newell. “Over-thecounter medicine is increasingly important for retailers to stock during the colder months as consumers become more reliant on stores that can cater to all of their top-up-shop needs.” Mondelez International has relaunched Halls with a new look, plus new 75p price-marked packs. The company says that the 75p price-marked packs offer consumers reassurance they are not being overcharged in convenience outlets. For retailers, the PMPs are designed to generate improved rate of sale through stand-out on-shelf and customer trust, and they also have the convenience of clear pricing. Non price-marked packs are also available. The designs highlight the different roles of the Mentholyptus and Soothers products. The Halls Soothers design showcases the texture of the sweets and the real fruit juice centre, emphasising the ‘gentle and soothing‘ benefit of Soothers, while the design for Mentholyptus displays the ‘clearing menthol action’ benefit through the dialled-up relief cue on the pack. Consumers will also be educated on the products’ qualities in a new digital out-of-home advertising campaign in December which will target high footfall locations in close proximity to stores. Amy Lucas, brand manager for Halls, says: “We know that our new designs will stand out on the counter and that the consumer will have confidence identifying which Halls subrange will best fit their needs throughout the winter season. “With total Halls being the number one relief candy brand in the UK and Halls Soothers seeing double-digit growth (11.6%) during the last cold and flu season (Nielsen), we believe that the new look and the PMPs, combined with a nationwide out-of-home campaign close to stores, will provide a real opportunity to inspire purchases and help retailers CCM drive relief candy sales.”

For further information: Ceuta Healthcare (0844) 2436661 GlaxoSmithKline 020-8047 5000 LanesHealth (01452) 524012 Mars Wrigley Confectionery (01753) 550055 Mondelez International (01895) 615000

*Nielsen value sales MAT 15.07.18

A treat for biscuit sales


As consumer habits fuel growth in both the special treats and healthier biscuits segments, wholesalers and retailers should ensure their range reflects the dual opportunity.


ith the sweet biscuits category worth £1.98 billion (Nielsen), there are plenty of opportunities for wholesalers and retailers to tap into areas of growth. Bahlsen is outperforming the category, with growth currently at 19.7% year on year, and it has a 54% repeat purchase rate. The manufacturer has identified health and indulgence as the two key trends, driving 86% of category growth (Nielsen). Today’s consumer tends to pick healthy snacks on weekdays and more indulgent products at the weekend, enabling profit in both areas. Bahlsen’s Choco Moments have responded to consumer demands in the special treats category. Available in Crunchy Hazelnut and Crunchy Mint, they have been developed in line with findings that 31% of consumers said they would pay more for a biscuit with a thicker layer of chocolate (Mintel). The innovation is being supported by a national TV advert. Another recent addition is the Choco Leibniz Snack Pack, containing two biscuits for the on-the-go occasion. Choco Leibniz is growing at 22.1% year on year, ahead of the special treats category growth of 11% year on year (Nielsen). Burton’s Biscuit Company echoes the importance of these trends to manufacturers. “Over the last couple of years we’ve seen a raft of NPD from brands looking to tap into shopper demand, including ‘thin’ varieties of best-selling biscuits, reduced-sugar options and grab bags to cater to shoppers on the move,” says Mandi Bobrowski, UK & Ireland marketing director. “Cash & carries should be thinking about those products that retailers will be looking for to cater to demand.” The supplier also knows the shopper appeal of pricemarking, offering PMPs of its best-selling brands. These include the £50 million Maryland, £20 million Jammie Dodgers and £18 million Wagon Wheels brands (Nielsen/Kantar). Maryland Cookies have been given a seasonal boost with the introduction of a Merryland Minis festive pack – a sharing box with a fun Christmas design. “Seasonal biscuits present a major profit opportunity for convenience retailers, worth £13 million last year (Nielsen) and growing well ahead of the total market,” says Bobrowski. “It’s crucial that retailers maximise this opportunity by stocking a product range that will appeal to the different occasions of home consumption, novelty and gifting.” 32

October 2018


The manufacturer also produces biscuits for Mars Chocolate Drinks and Treats, which has expanded its branded range of sweet biscuits. Galaxy Chocolate Rounds, Galaxy Salted Caramel Rounds and Twix Soft Centres join the cookie line-up that was launched last October and is now worth £8.1 million (Nielsen/Kantar). “We’ve seen the effect and strength of our brands in the biscuit category and know these resonate with shoppers,” says Michelle Frost, general manager. “By expanding the range and moving into the special treat segment we believe we are creating new options for consumers.” Mondelez International has also continued innovating in the biscuits category, its latest development being Joyfills. The bite-sized treats with a creamy filling are available in Oreo, Oreo Choco Caramel Creme, Cadbury Milk Chocolate Creme and Cadbury Choco Cookie Creme variants. In the healthy biscuits subcategory, Mondelez has brought out NPD from its £78 million belVita brand (Nielsen). The belVita Breakfast Soft Bakes Blueberry variant aims to meet the rising demand for ‘superfoods’, providing an opportunity for incremental growth. This year, belVita’s ongoing £6 million marketing campaign has also heightened brand awareness, with TV, radio, digital, out-of-home and sampling activity. “Use manufacturer PoS to highlight products, particularly when you introduce new lines,” advises Susan Nash, trade communications manager. Ferrero is also active in the healthier biscuits market, having introduced Nutella B-ready last year. The brand is now worth £15 million and the 115-calorie snack has been launched in a PMP format (59p) and a 10-pack. “The biscuit category is in growth and this can be partially attributed to a demand for healthier biscuits, which account for 30% of the total biscuits share (Nielsen),” says customer development director Levi Boorer. “Nutella BReady is well positioned in the healthier biscuits category to help retailer and wholesalers capitalise on this growth.” CCM

For further information: Bahlsen (01923) 728500 Burton’s Biscuit Company (01727) 899700 Ferrero 020-8869 4000 Mars Chocolate Drinks and Treats (01753) 550055 Mondelez International (01895) 615000

+ m 1 ÂŁ keting

m a r s t me n t inve

A brand in demand, worth over ÂŁ50m RSV* *Source: Nielsen Scantrack/ Kantar WP, data to 16.06.2018


A premium time for sales

It’s the trend that offers hope for wholesalers and retailers serving thrifty shoppers. Purse strings are being loosened as consumers look to treat themselves, their friends and family – and they don’t mind spending a little more to make the most of the experience.


he confectionery category is vital in the convenience channel and, despite changing shopper habits, it is still showing year-on-year growth – this year, a 0.6% rise (Nielsen) reflects a respectable performance in a difficult retail environment. This is thanks, in part, to suppliers recognising and responding to consumer trends and producing NPD to provide growth opportunities for retailers and wholesalers. Nestlé Confectionery made a move to benefit convenience earlier in the year with its introduction of smaller outers for the channel. The new-size 24-count outer is a permanent change to several core lines from its KitKat, Aero, Toffee Crisp, Smarties and Yorkie brands, while SKUs from Rowntrees Fruit Pastilles and Polo have moved to a 32-count outer. Both are available for PMP and non-PMP singles. Meanwhile, the demand for products suitable for the big night in occasion continues to increase, as consumers opt to 34

October 2018


socialise in a budget-friendly fashion. In chocolate, worth £3.74 billion (Nielsen), suppliers have developed this growth area in line with shopper demands. For Mondelez International, this has led to its convenience-friendly £1 price-marked sharing packs, while its Cadbury, Cadbury Dairy Milk and Green & Black’s brands have driven growth in tablets for the category leader in a segment up by 3.7% (IRI). Mars Wrigley Confectionery UK has similarly gained the benefits of entertaining at home. “A rise in consumption trends like sharing and treat has seen Mars Wrigley occupying six out of the 10 top pouch lines (Nielsen),” says Lauren George, brand and trade PR manager. “As well as large block, bitesize brands continue to be popular with consumers.” Brands like Maltesers and M&M’s have seen developments this year from the manufacturer to expand their reach, with Maltesers Buttons launched earlier in the year in pouches and more-to-share formats as well as singles

Available in all key pack formats: More to Share Pouch Standard Pouch Treat Bag PMP Treat Bag Singles


MALTESERS® is a registered trademark. ©Mars 2018.a Source. *Nielsen Scantrack Data MAT to 10.2.18

media spend on digital campaign – our biggest online campaign ever!

Two powerhouses join forces Buttons and MALTESERS , the No.4 confectionery brand ®


[ CONFECTIONERY ] Guidance for customers Use this Mars Wrigley Confectionery advice to help your retail customers boost confectionery sales

Focus on getting the main confectionery display merchandised well, with strong availability of core singles lines. Multi-face singles lines – this helps to ensure strong availability and attracts shoppers to make those allimportant impulse purchases. Ensure you use all PoS available to you, such as dumpbins and counter units. These are guaranteed to raise awareness and generate impulse sales. Site singles and bars alongside savoury snacks and drinks, to promote additional basket spend in-store for customers looking to fulfil their ‘big night in’ shopping mission.

• • •

and treat bags. Under the M&M’s brand, Crunchy Caramel has joined the line-up as a limited-edition variant available in pouch format along with treat bags and singles. “With the bitesize category continuing to grow year on year, this offering provides retailers with a great opportunity to tap into this trend, boosting those all-important impulse purchases,” points out George. Ferrero highlights key considerations within the sharing segment. “Sharing bags tend to be bought by mum or dad – the main household shopper. Their choice is therefore highly driven by what they like first and what their family like second. Families represent a third of sharing occasions,” explains Levi Boorer, customer development director. “Promotional support and shopper marketing is essential; 90% of purchase decisions are made at the fixture.” It’s also important at this time of year to take into account the extra profit available through seasonal sales, and the supplier’s monster Kinder Choco Bons packs will capitalise on the growing Halloween market. “Last year we saw a 68% uplift in sales during the key seasonal period (Nielsen),” he says. “Taste is the No.1 category driver and that’s where Kinder Choco-Bons wins with a post-purchase intent after trial of 91%.”

the last three years and is now worth £211 million, accounting for 5.7% of total chocolate (Nielsen),” she says. The manufacturer has also added to its iconic Toblerone brand with a new gifting pack featuring five 100g bars in a selection of milk, dark, fruit & nut and white chocolate variants. Ferrero’s recent innovation is Thornton’s Pearls, available in Salted Caramel and Nutty Crunch variants. “The range is perfect for the sharing occasion, which is worth £84 million and growing at 6%. The premium part of the sharing occasion sector is growing even faster at 15% (Nielsen),” says customer development director Levi Boorer. “This will expand the Thornton’s footprint into the sharing category, bolstering its heartland in gifting.” Mars Wrigley Confectionery UK also focused efforts on the premium gifting/sharing category with its Maltesers Truffles range launched earlier in the year, a major development for the brand catering to changing demands for texture innovation. “Maltesers Truffles are special enough to gift to family and friends,” says brand and trade PR manager Lauren George. “They contain a new creamy texture to create a different and more indulgent taste sensation.” Nestlé Confectionery is also targeting the gifting and sharing opportunities with its KitKat Senses boxes, designed to appeal to younger shoppers. The boxes contain hazelnut, double chocolate and salted caramel flavours and the packaging can be opened out into a sharing platter. The manufacturer has also selected Salted Caramel as the flavour for the latest innovation from the KitKat Chunky brand, with the KitKat Chunky Salted Caramel Fudge bar. The NPD is supported by a multi-media campaign that incorporates social media, sampling and PR.

Year-round gifting and premium growth The big players in chocolate confectionery have brought out NPD this year that encourages trading up and with textures and flavours guided by current consumer trends. “Premium chocolate has driven growth both into the category and into tablets,” says Susan Nash, trade communications manager at Mondelez International. The company has extended the offering from its premium Green & Black’s brand to include bitesize products with the Velvet Fruits range. “Dark chocolate has seen consistent growth for 36

October 2018


Innovation in sugar confectionery Although sugar confectionery sales have declined this year in convenience, down 1.6% (IRI), the category is still worth £564 million in the channel. “Confectionery remains in the top four purchases within the convenience channel, so is a category that cash & carries cannot ignore,” says Mark Roberts, trade marketing manager at Perfetti Van Melle. “For retailers, signposting is key for confectionery – as a category, 80% of sales are purely based on impulse. Be sure to align to different shopper missions, targeting different offerings such as bagged confectionery with big night in to capture home sharing, or mints near coffee and food-to-go offerings.”

[ CONFECTIONERY ] Kervan Gida UK has ensured that its range of confectionery products suit the convenience channel, a strategy that has driven double-digit growth for the supplier. “All our products in the sector are in price-marked packs and shelfready packaging, which has been created to provide the most relevant packs to retailers. We provide PoS support that can be tailored to retailers’ needs,” says Paul Simpson, commercial director. “The fact that our range is in high double-digit growth means that we are clearly outperforming the category.” The supplier has recently introduced a ‘three for £1’ range from its Dexters brand to expand its value offering, as well as extending its halal-accredited selection through the launch of Dexters Tiger Tongues. “Consumer demand for sour sweets continues to soar and these new products reflect both this and the growth in popularity of halal-accredited sweets. These new Tiger Tongues formats are part of the latest investment in the brand, sitting alongside our recent redesign of the existing range,” explains Simpson. Mars Wrigley Confectionery UK has also looked to reinvigorate the sugar confectionery category with NPD this year. “Designed to overcome barriers to purchase, Skittles Chewies and Starburst Minis are the latest additions to Mars Wrigley Confectionery’s £48.7 million candy portfolio,” says Dan Newell, confections marketing director. Skittles Chewies have no shell and a soft texture. They also feature standout pink packaging to differentiate the line from the core range. “With customers proactively requesting texture innovation in order to grow incremental sales, this is the biggest NPD launch for Skittles for nearly 20 years,” adds Newell. “An underdeveloped segment within the confectionery category, chewy candy will be the latest creation from Mars Wrigley Confectionery to drive category growth.” Alongside this, Starburst Minis are designed to tap into alternative consumption occasions for the Starburst brand with unwrapped mini pellets in the Starburst Original flavours.

Answering a healthy demand Consumers may be looking to indulge on occasions, but confectionery is also seeing growth at the other end of the spectrum with healthier treating. In the total confectionery market, the ‘better for you’ sub-category has seen a 20% increase, with research showing that 73% of better-for-you sales are incremental to the category (IRI). Perfetti Van Melle recognises the changing and widening shopper requirements for the category that suppliers must respond to in order to maximise growth opportunities. 38

October 2018


Big night in is still driving growth in confectionery, with supplier activity focused around the mission.

“Each consumer desires different offerings, therefore we don’t wish to dictate what people should and shouldn’t buy; instead, by providing choice and information we allow conscious selections to be made,” explains Mark Roberts, trade marketing manager. “Numerous trends are changing the way we live, altering the shopper missions. Most notably, consumers are now more health conscious and are looking for alternative products.” The supplier’s reduced-sugar and sugar-free ranges, which include the Chupa Chups and Fruittella brands, have helped drive growth as the category adapts. “Fruittella has had a strong performance this year across the entire brand at +24% (Kantar) and this doesn’t look likely to tail off. The brand offers alternatives across sugarfree and sugar reduced, as well as classic sugar based, and this choice and balance has led to fantastic growth,” Roberts reports. Mondelez International has also announced developments of its Maynard Bassetts and Cadbury brands in line with sugar concerns. Next year, 30% less sugar variants of Maynard Bassetts hero products Wine Gums and Jelly Babies will be introduced. Cadbury Dairy Milk will also be available in a 30% less sugar bar, which will sit alongside the standard bar. “With the knowledge that options for balanced diets must be achieved without compromising on taste, a team of 20 scientists, nutritionists and chocolatiers have been working for almost two years to find a way to achieve the much-loved Cadbury Dairy Milk taste while delivering 30% less sugar with no artificial sweeteners, colours or preservatives and no increase in calories,” says trade communications manager Susan Nash. The reformulation will be expanded to other Dairy Milk products if it proves popular, as part of the supplier’s plans to address nutritional demands. The Cadbury brand has also entered the protein bar market with the launch of Cadbury Boost, which has 32% less sugar than the standard Boost bar and contains 12g of protein.




Maltesers® is a registered trademark. © Mars 2018.


‘Thank You Very Much’: Suppliers are bringing brand awareness to fresh audiences while satisfying consumer nostalgia with new campaigns like this for Cadbury Roses.

Confectionery in the spotlight Marketing campaigns bring brand exposure and subsequent sales, so wholesalers and retailers do need to be mindful of supplier activity in this area. Swizzels is celebrating its 90-year anniversary in 2018 with an experiential consumer competition prize. “Swizzels is marking 90 years of sweet inventions – from the iconic Love Hearts and Drumstick to the modern creations Squashies and Choos – and looking to future creations through its competition giving consumers the opportunity to create their own sweet invention. The winner has the chance to take a VIP tour of the Swizzels factory to see their creation brought to life,” explains Mark Walker, sales director. Mondelez International also has anniversary activity with its ‘Discover the Taste of Toblerone’ campaign to celebrate the brand’s 110th anniversary. Toblerone has seen growth of 19%, making it the second fastest growing brand this year (Ipsos). Meanwhile, the supplier’s Roses brand turns 80 this year and a £2.8 million marketing campaign has been unveiled to mark the occasion. Focusing on the iconic ‘Thank You Very Much’ slogan but with an updated narrative for relevance today, the new creative includes TV, digital, PR and experiential activity.


October 2018


While Ferrero has significant seasonal campaign investment driving growth in its gifting and sharing brands, Tic Tac benefits from its multi-channel campaign backing the launch of Tic Tac Intense Mint in the core range. The extra-strong mint flavour is differentiated by a bold blue colour to increase on-shelf standout. “The activity continues our ‘Open Up’ campaign, which had an immediate impact on our sales earlier this year, with a 2.2% volume uplift on our core Tic Tac range. The variety of our products, supported by the wider campaign, will help continue to grow people’s love for Tic Tac and drive greater sales across the range,” says customer development director Levi Boorer. “The way that brands can communicate with consumers has radically changed in recent years. However, what is evermore apparent is the need for authenticity and consistency.” For Mars Wrigley Confectionery UK, the proven success of its on-pack ‘Sweet Sundays’ cinema tickets promotion has led to the return of the activation for the seventh year running. Featured on its major brands including Maltesers, M&M’s and Galaxy blocks and pouches, the campaign runs until the end of this month. “Sweet Sundays is a proven category growth opportunity, offering high value to shoppers by overcoming barriers to their favourite out-of-home activity,” says brand and trade PR manager Lauren George. “Our promotion provides consumers with more opportunities to get free cinema tickets, as well as unlocking cross-segment opportunities for retailers CCM to boost sales.”

For further information: Ferrero 020-8869 4000 Kervan Gida UK (01243) 530552 Mars Wrigley Confectionery UK (01753) 550055 Mondelez International (01214) 582000 Nestlé Confectionery 020-8686 3333 Perfetti Van Melle (01753) 442100 Swizzels (01663) 744144


This fundraising event is being held in aid of GroceryAid, the charity for the grocery industry. GroceryAid is the trading name of the National Grocers Benevolent Fund. A Registered Charity Reg. No 1095897 (England & Wales) & SC039255 (Scotland). A company limited by guarantee, registered in England & Wales No 4620683.

A break with tradition


The hot beverages market is seeing a blurring of the boundaries between retail and foodservice, with supplier activity helping wholesalers offer a range that enables their customers to maximise sales to a consumer base with increasingly high expectations.


oth foodservice and retail have seen the benefits of supplier activity in the hot beverages activity this year. There are 3.8 billion out-of-home coffee occasions and 3.1 billion out-of-home tea occasions, according to the 2018 Tetley Tea Report, creating sales for savvy retailers and operators. Taylors of Harrogate’s Yorkshire Tea brand continues to show growth in a category where traditional black tea is declining in popularity, and this is thanks in part to the supplier’s understanding of, and activity in, both the retail and foodservice markets. For caterers, Yorkshire Tea now offers the same strength across its in-home and out-of-home offerings. “We’ve made the decision to bring our One-Cup products in line with our standard bags, increasing the tea bag weight from 2.5g to 3.125g,” explains Greg Harvey, channel controller. “Yorkshire Tea is known for its big flavour and the change will guarantee this strength and quality. In a world where channels are merging and consumers expect high quality, we need to provide a consistent, topquality product to all our customers.” Tata Global Beverages has also considered its end customers. “This year, Tetley has worked to a much more channel-centric approach, providing products and educational materials to caterers, relevant to the channel they operate in,” says Marshall Kingston, Tetley senior brand manager, out of home. “Tetley catering packs, available in various sizes, decaf and original, are great for bulk tea servings within the cost sector, such as those in care environments, while the Tetley string and tag range – which includes black and speciality teas, as well as fruit & herbal and green tea blends – are well suited to cafés, hotels and pubs.” Herbal teas are experiencing growth of 9.6% year on year, while black tea remains responsible for most volume out of home, holding 81.9% of category value share. According the Tetley Tea Report 2018, approximately 7.1 million UK consumers like to try new or different beverages out of home, with 59% of 18-34 year olds selecting premium drink choices.

Volume share of tea sales Total impulse Tetley: 31.5% PG: 29.9% Yorkshire Tea: 16.6%

• • •


• Tetley: 41.4% • Scottish Blend: 12.3% • Twinings: 7.1%

Source: The Tetley Tea Report 2018/Nielsen


October 2018


Two consumer demands driving category growth are convenience and health, and both trends are at the forefront of supplier activity for the retail and foodservice channels. “Increasing penetration of tea out of home can only be achieved by understanding and analysing the identity of prospective customers, and meeting their needs and wants,” says Kingston. “It’s important for wholesalers to stock products that are on-trend and therefore in high demand – such as green tea, which has seen an increase in consumption.” The supplier has added Tetley Green Tea to its Fresh Seal On The Go cup range. “This addition to the on-the-go portfolio will be available to the wider foodservice channels, allowing operators to offer an on-the-go solution that taps into health trends,” Kingston explains. The new cup has a doublewalled feature to keep the tea warm without the exterior of the cup getting too hot, eliminating the need for a sleeve. The NPD is available in cases of 240 cups, with each cup individually sealed.

Retailer viewpoint Thomas Ennis is a leading SPAR retailer from Dublin. With an offering from the Insomnia Coffee Company, his business model is showing the way in café culture and food to go. He believes a collaborative approach between wholesaler and retailer opens up mutually beneficial possibilities: “Wholesalers need to be supportive, and to lead a little as well. When it comes to taking a chance on new ideas, if that support is offered, retailers will be happier to trial. For a retailer, it’s not as risky if you know your wholesaler will be there for you,” he explains. Ennis was early to recognise the potential of the coffee market – he’s offered barista coffee since 2005 – and his stores reflect how anticipating needs, premiumising missions and prioritising customer experience is key: “Today’s consumer is more travelled and knowledgeable than ever before about all aspects of food and drink,” he says. “I love the fact that my customers challenge me – complacency in your business brings trouble.” Meanwhile, Insomnia Coffee Company is now increasing its presence in the UK through a partnership with Blakemore Retail.

[ HOT BEVERAGES ] Research from Tetley’s Tea Report 2018 has shown that the food-to-go sector is now worth a third of all out-of-home spend, and 29% of consumers expect to drink more green tea than they did a year ago. Unilever has also provided for the on-the-move market with its PG2Go innovation in black tea. “Busy lifestyles, changes in culture and eating habits, plus a greater awareness of the environment are all factors that are impacting the way we think about food and drink. Consumers are demanding more from brands and although there is a need for convenient and easy-to-use products, they are not willing to compromise on quality or taste,” says Noel Clarke, vice president for refreshments. The PG2Go solution features recyclable paper cups containing instant tea with milk powder. Only hot water needs to be added, providing maximum convenience to consumers. “Tea remains the number one beverage in the UK, but with café culture continuing to influence and excite consumers, tea brands need to evolve in order to keep up,” continues Clarke. “We are unlocking the potential of black tea by innovating from the core with new formats that respond directly to consumer needs, ensuring our brands are set for the future.”

‘Consumers are looking for premiumquality products that are affordable, and choice is crucial’ Greg Harvey, channel controller, Taylors of Harrogate As ever, cost is at the forefront of shopper considerations and the importance of price marking in convenience remains key. Taylors of Harrogate has been driving brand exposure for its Yorkshire Gold, which has a £1.99 PMP 40-bag pack to answer the top-up shop mission, with its Brownlee Brothers TV advertisement, which returned to screens this summer. “We understand how important PMPs are for the sector as they give shoppers confidence in the store’s pricing in comparison to larger outlets. Our investment in the brand means that we can support these PMPs which add value to the retailer,” says channel controller Greg Harvey. “Consumers are looking for premium-quality products that are affordable, and choice is crucial with tastes constantly evolving. Stocking the finest black teas and a good quality coffee will deliver on what they want.” Rombouts is attracting shoppers through its on-pack promotion for its One Cup Filters, where consumers receive a complimentary coffee storage tin with the purchase of four promotional packs. “On the trade side, we tend to run promotions throughout the year with specific C&C providers across all of our products to ensure they get a steady stream of great deals – be that price reductions or buy-one-get-one-free offers,” says Simon Remmer, sales director. 44

October 2018


“In order to maximise sales and profits, cash & carries need to stay ahead of the latest trends in hot beverages and stock products accordingly,” he continues. “The shift towards espresso pods and innovations such as cold coffee is a key one for this channel, as is the demand for Fairtrade, Organic and single-origin coffee.” The supplier has recently launched its Fairtrade and organic Cold Brew coffees, which contain no added sugar and come in recyclable packaging. Two variants are available: Cold Brew Coffee, which is 100% pure Arabica coffee and filtered water, and Cold Brew Ginger and Lemon infusion. Also investing in activity to appeal to discerning consumers, Nestlé Professional upgraded its Nescafé Gold Blend brand for the benefit of the out-of-home market. “For a nation of coffee lovers, the trend of hyperconvenience is driving diversity in the marketplace. To stay relevant, products and services must seamlessly fit into people’s busy lives,” says Simon Baggaley, Nescafé Beverage Solutions category manager. “The new generation Nescafé Gold Blend is supported by partnerships with key UK machine manufacturers to provide the premium branded experience at the touch of a self-service button.” Mars Chocolate Drinks & Treats has reacted to changing consumer habits with its hot chocolate range extension from its Maltesers and Galaxy brands. Compatible with Dolce Gusto machines, the Galaxy and Maltesers Hot Chocolate pods are available from distributor Aimia Foods. “Combining strong brands with exciting and innovative products has seen our hot chocolate range continue to grow. The range now includes options for those seeking traditional, instant, malted, low calorie or indulgent hot chocolate in a variety of different formats,” says Michelle Frost, general manager. With brands accounting for 89% of value sales of the £89 million hot chocolate market (IRI), keeping up to date with supplier NPD should be a priority for wholesalers in the category. As expanding seasonal opportunities are increasingly opening up to wholesalers and operators, Monin points out useful trends to optimise sales. “Using syrups such as Monin Winter Spice, Salted Caramel and Gingerbread, caterers should actively upsell hot beverages with cues of Christmas to those customers who have chosen not to have a dessert. It is also important to coincide with Instagram culture – simple festive lattes can be given the wow factor with extravagant and festive toppings,” says Lee Hyde, beverage innovation manager.

[ HOT BEVERAGES ] Flavour and health trends are also at the forefront of activity for Drink me Chai, with a multi-functional range that can be used to serve hot or iced drinks, as well as in baking and patisserie. The company offers bespoke support and PoS. “Consumers are becoming much more explorative in their food and beverage choices,” says Amanda Hamilton, founder and CEO. “Already it’s become the norm for foodservice channels to offer a variety of dairy-free and gluten-free options on their menus and consumers are demanding more and more innovation.” Chai saw 43.8% year-on-year value growth between 2016 and 2017, ahead of peppermint, herbal and green tea, becoming the fastestgrowing tea out-of-home within the cafe channel (CGA). Again answering calls for convenience, Drink me Chai offers operators a foil-sealed in-cup solution containing the correct amount of powder. “Within the hot beverage category, chai is an emerging flavour that’s quickly gaining popularity and it has become a must-stock in depot,” says Hamilton. The launch of the Superblends range from the manufacturer in the summer has tapped into this growing free-from market. The three-strong range, comprising Turmeric, Raw Cacao and Beetroot, are all vegan, plant based and free from gluten and caffeine. Tata Global Beverages was early to market with its range of Tetley Super teas, which offer health benefits, and it is continuing activity in this area. Tetley Super Herbal with Turmeric and Chamomile and Tetley Super Fruit with Summer Berry have added vitamins C, E, B1, B3 and B7 to help maintain overall health and vitality. Both the Tetley Super and Tetley Green teas have also seen a pack refresh with clearer display of the flavour and vitamin content, and a slimmer carton that allows 25% more product to be put in the same shelf space. The supplier encourages wholesalers to ensure that they utilise all the tools available to accompany brand activity. “Adding theatre around launches with PoS and in-depot sampling are great ways to encourage customers to try something new,” advises Marshall Kingston, Tetley senior brand manager, out of home. Another priority for the manufacturer is increasing environmental awareness from consumers, especially relevant in the hot beverages category. Tetley’s new packaging is now 100% recyclable. Further news on the extremely relevant topic of hot beverage cup recycling comes from UK recycling company Shredall. It has formed a partnership with Australian packaging supplier Detpak, whose RecycleMe system is aimed at preventing coffee cups from entering landfill – some 2.5 billion coffee cups currently go to landfill in the UK each year. The company then turns the takeaway cups into recycled paper products. Shredall will be providing a collection service and recycling commitment for RecycleMe coffee cup lids, as well as 46

October 2018


Consumers are increasingly concerned about their environmental footprint, with ethical spending up 3.2%.

cups. It currently has 13,000 collection points around the UK and will support the establishment of additional collection stations for RecycleMe cups. “Currently less than 1% of takeaway cups are recycled but the RecycleMe system is designed to provide a guarantee and transparency of the recycling process,” says Nik Williams, managing director of Shredall. The same focus applies at Unilever, which has also made positive steps from an environmental and ethical perspective. “We switched our PG Tips brand to 100% plant-based material, meaning that, to date, PG has produced over 500 million tea bags made from a renewable and fully biodegradable source,” says Noel Clarke, vice president for refreshments. “Last year, ethical spending in the UK grew by 3.2% to a record high of £83.1 billion, as consumers become more selective with their purchases,” he continues. Unilever tapped into this movement with the introduction of the premium Pure Leaf brand, ethically sourced from certified Rainforest Alliance estates. An on-trend Macha assortment is now being added to the range, with Pure, Ginger and Mint CCM variants expected to bring incremental growth.

For further information: Drink Me Chai (01689) 854270 Mars Chocolate Drinks & Treats/Aimia Foods (01942) 408600 Monin (01795) 413754 Nestlé Professional (0800) 745845 Rombouts (0845) 604 0188 Shredall (03333) 555100 Tata Global Beverages 020-8338 4000 Taylors of Harrogate (01423) 814000 Unilever UK (0800) 731 1597

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