Page 1


Get fit and ready for January with the Tetley Green Tea range.

Dhamecha to open No.7 in Lewisham On TV i Januar n y 2012

Delivered catering venture by Booker P&H makes a challenge to C&C sector

January is the biggest month of the year for Green Tea, with customers choosing to enjoy it as part of a healthy start to their new year. It’s going to be even bigger for Tetley as we kick off our Green Tea marketing, including a new TV campaign. So don’t miss out – stock up now with the best selling green teas from Tetley.


Leading ethnic foods wholesalers in growth That’s better. That’s Tetley.

The business magazine for cash & carry/delivered wholesalers




STOCK UP NOW, OBVIOUSLY. CALL US ON 01204-664 295. *Source: Nielsen Scantrack, Value Sales, Low Calorie OFC's, MAT to 29.10.11, Total GB






contents Back to its roots While Booker’s takeover of Nurdin & Peacock and Bestway’s departure from Landmark are incidents that stand out when recalling major changes in the C&C/wholesale sector, there continue to be developments which surprise trade pundits. Back in the late ‘90s, the mighty Booker business was slimmed down to concentrate solely on cash & carry after the delivered retail and catering (now 3663) operations were discontinued. Delivered wholesale was once a major aspect of the former Booker McConnell when the company was the leading distributor to Mace and VG symbol stores. The C&C/wholesale contraction followed a series of disposals by what was once a wide-ranging giant; it had owned the health food chain Holland & Barrett and had major interests in salmon fishing and US poultry. Who would have thought, after such a clear-out, that some of the old interests would one day be revived? Of course, that was before Charles Wilson and his new team came in to revive the perennially underperforming business. Having reshaped the C&C chain, gradually new elements were introduced – notably the takeover of Blueheath, the short-lived online wholesaler. That gave it the incentive to re-introduce delivered wholesaling to retailers, and deliveries were also made from the C&Cs. Now comes the formation of Chef Direct, concentrating on the foodservice sector. So when will it write a new chapter with the Booker Prize returning?

The West Midlands company, which recently opened its third cash & carry in Aston, is a major STL Technology Solutions customer ... see IT feature pp.17–20


4–9 South London for Dhamecha’s seventh ... Booker launches delivered foodservice venture ... P&H throws down the gauntlet ... Fatal accident at cash & carry ... Another senior change at Makro ... Scottish C&C/wholesaler ceases trading ... Bestway in £12m investment ... Tobacco guidance for the trade ... Relaunch for symbol.



innovation & education




it update


employment law products & promotions


ethnic foods wholesaling



Mervyn Gilbert

Managing Editor

Kirsti Sharratt

Media Sales Manager

Clare Phillips

Business Development Manager David Ford Publishing Director

Mervyn Gilbert editor



Martin Lovell

4,555 July 2010–June 2011

Published by Winlove Publications Ltd PO Box 366 EAST GRINSTEAD RH19 4ZE Tel (01342) 712100 Fax (01342) 712101 Email mail.winlove@btconnect.com ISSN 1352-254X

Cash & Carry Management is available on subscription of £46 per year (single copies £5).

Cash & Carry Management

• January 2012 • 3

news IN BRIEF Eat healthily SPAR Scotland wholesaler CJ Lang & Son has encouraged all 108 of its company-owned stores, and selected independent customers, to participate in the Scottish Government’s ‘Healthy Living’ initiative. A full range of products that fit this description can be purchased in these outlets until 18 February.

Product guide Creed Foodservice has unveiled its 2012 Product Guide in an A5 format. Printed on recyclable, sustainable paper and using environmentally friendly ink, it incorporates sections that include pack and case sizes.

Vending boost A survey conducted by vending operator Selecta shows that tea represents a growing profit opportunity because ‘out of home consumers seek to replicate their quality home brewed cuppa’. The company, which has a close association with PG tips, says that of 6,850 people surveyed, 23% said tea was their preferred drink.

Hotelympia The Excel centre, London, stages Hotelympia, the UK’s leading exhibition for the catering industry, from 26 February to 1 March.


In seventh heaven Dhamecha Group’s eagerlyawaited seventh cash & carry will be situated in Lewisham, south-east London. The company is Today’s Group’s largest member, with sales of more than £500m. The six branches it presently operates are all situated around the M25 area in London (Wembley, Barking, Croydon, Enfield, Hayes and Watford) with a customer base of more than 12,000 independent stores. At the moment, the Lewisham site houses an unoccupied 30,000 sq ft building. This will be flattened and a new 70,000 sq ft C&C will be erected. The plan is for it to be ready for trading by the end of the year. Chief executive of the Wembley-based operator, Pradip Dhamecha said:

Lewisham was on ice for Pradip Dhamecha and his board. But not now.

“Since opening our sixth branch at Hayes in 2010, we employ over 500 people. “Our new purpose-built Lewisham C&C will not only provide a convenient location for retailers to collect their groceries, impulse products, beers, wines & spirits, but will also generate significant full and part-time employment opportunities in the south London area.” Today’s managing director

Bill Laird commented: “We are delighted to learn of this latest development from our largest member. “In a tough economic climate it is excellent news to start the year with and, once again, it underlines the significant opportunities that still exist within the independent sector for Today’s Group wholesalers.” Tel: Dhamecha Group 0208903 8181.

Booker’s catering drive Booker, whose like-for-like sales in the 16 weeks to 30 December 2011 rose by 6.5% (non-tobacco by 5.8% and tobacco by 7.6%), has launched a new initiative targeted at caterers. Chef Direct is headed by Mark Aylwin, managing director of the delivered wholesale division, Booker Direct. It will serve major foodservice customers from the C&C/wholesaler’s Didcot, Oxon, site, which is currently being fitted out to begin deliveries from the 250,000 sq ft distribution centre. It is planned that work on the building will be completed by March and that the depot will start operating three months later.

• Cash & Carry Management • January 2012

New venture under Mark Aylwin’s control.

Aylwin said that the new venture would combine Booker’s scale and logistics capabilities with the expertise in catering and speciality foods of recent acquisition Ritter-Courivaud. He commented: “For

years, two players have dominated foodservice in the UK. Catering chains have been looking for more choice and Chef Direct will meet this need.” Tel: Booker Group (01933) 371000.



Don’t use C&Cs! – P&H Palmer & Harvey, which has on previous occasions suggested that independents would do better to use a delivered wholesaler than a cash & carry, has produced further evidence to back up its claim. It says that shopping at a C&C costs private traders retailers over £2,500 a year and wastes 4.81 working weeks. Research conducted by him! shows that the average independent retailer visits the C&C three times a week and travels an average round distance of 9.4 miles. P&H commercial director Martyn Ward said that taking into account vehicle running costs, staff expenditure and the effect on cash flow by paying up front, independents would be paying a total of £2,515.6 extra a year. And being out of their store and not doing something more productive costs them an additional £2,345.72. Ward added: “Cash &

Ward: ‘Waste of money and time for independents.’

carry operators claim they offer big discounts and are always cheaper. But the real picture shows that thousands of pounds are being wasted every year on an expensive and time-consuming C&C habit.” The leading delivered wholesaler is now price matching against cash & carries – regionally and nationally – on 600 of the best-selling fmcg lines. The prices include free delivery and up to 14 days interest-free credit, coupled

Makro finance chief Makro has named Jens Koeppen as its ‘permanent’ finance director – one of several changes that have taken place at the cash & carry operator in recent months to create a more stable business. The company has also announced the ending of an arrangement with Alix Partners, the restructuring specialist brought in last year (Cash & Carry Management: July 2011) following the departure of four Makro directors, including former managing director Hannes Floto. Koeppen has worked for

several concerns, including Alix Partners and Deutsche Bank. Md of the C&C concern Juergen Schwarze will now undertake the transformation programme, along with Koeppen, new operations director Stephen Blan and commercial director Huw Edwards. Schwarze said: “The business is in a much stronger position than it was six months ago and we can continue returning Makro UK to its position of strength with a renewed sense of determination.” Tel: Makro UK (0870) 662576.


with P&H’s ‘industry-leading prices on tobacco’. It is also guaranteeing availability; if a product isn’t in stock, it will be provided free next time. Each week, P&H pricechecks the 600 biggest brands in the impulse, chilled, ambient, frozen and fresh categories against cash & carry prices, both online and in branch, and then adjusts its own prices to match the lowest permanent prices it finds. The brands it analyses are said to make up around 56% of non-tobacco convenience sales. P&H is also offering free, pocket-sized ‘Easy Order’ barcode scanners to its Partnership Plus customers. Tel: Palmer & Harvey (01273) 222100.

Booker fatality Bristol City Council is still looking into the circumstances of a fatal accident that occurred last month at Booker’s Avonmouth branch. A member of staff, Annie Brennan, believed to be in her 40s, was crushed under a forklift truck, suffering severe injuries and a cardiac arrest. She died later at Frenchay Hospital, Bristol. A spokesperson for the cash & carry/wholesaler said that the company was working closely with the police and all relevant authorities “to ensure a full investigation. “Our thoughts are with the family.” Tel: Booker Group (01933) 371000.

Winter warmers Bestway has introduced a range of 20 non-food lines under the ‘Winter Warmer’ label. It features warm clothes for outdoor use, including gloves, scarves, knitted beani hats and long pile ear muffs – all available in adult and children’s sizes. And for indoors there is a snuggle wrap-around blanket. Group negotiator for nonfood products Salim Setra said: “We have found a really top value range for the winter to enable independents to extend their offering. “The well-designed products also include highly practical items like heavy duty scrapers for the car and a set of ice grippers as overshoes. We also have a sledge for the children.” All the items – available in selected Bestway and

Batleys branches – are variously priced, beginning at 59p, allowing independents to make a margin starting at 30%. Tel: Bestway Group 0208453 1234.

Cash & Carry Management

Keeping in the fashion.

• January 2012 • 5

Landmark Wholesale – A Winning Team

Don’t just thin think tomorr

Make 2012 the start of a brighter future, join Landmark Wholesale -

Today more than ever before, Membership of a Group like Landmark Wholesale is crucial for the prosperity of Independent Wholesalers. As one of the UK’s largest Wholesale Groups, we wield massive buying power and negotiate excellent terms for all of our Members. With just 33 Members, we are focused on quality rather

We have powerful marketing programmes, quality promotions,

than quantity; we are lean and manageable and ensure all

excellent terms all in place to ensure you sell more and have

Members are treated equally whilst providing each of them with

better margin and more profit. In addition, our sophisticated

the best possible service. We have never chased numbers.

data/IT systems ensure you get the most up to date information

We are the perfect home for quality Wholesalers.

quickly and effectively to manage your businesses.

We work hard to improve profit margins by harnessing the

It’s these foundations that we have laid that will keep us at the

power of our the Group to obtain better terms and deals for our

forefront of our Sector and the Group will be a major player in the

Members. We collect and distribute monies to our Members as

marketplace for many more years to come. So, if you are an

quickly as possible; we generate more sales for our Members

Independent Wholesaler with a turnover or potential turnover of

and their Customers through an aggressive marketing and

£10m or more, you should be joining us!

promotions programme; our Own Brands are often said to be the best in our Sector; and our Lifestyle Express Retail Development Programme is a runaway success winning many Industry Awards and achieving significant sales uplifts in all converted stores. TH

Martin Williams Managing Director - Landmark Wholesale

Contact us today Scan with Smartphone to see our website

Martin Williams Managing Director Direct Dial: 01908 255313 martin.williams@lmkcc.co.uk

Andrew Thewlis Financial Director Direct Dial: 01908 255304 andrew.thewlis@lmkcc.co.uk


nk today... ow

- The Group of Choice for Independent Wholesalers. Great Value Everyday Own Brands

Extended Lifestyle Value range in Depot Now!

Landmark Wholesale’s Own Brand ranges are specifically developed for Independents. Landmark Wholesale has been widely acknowledged as the leading operator of Own Brands in the Wholesale Sector, with ranges across all key Categories. All products offer “Great Value Everyday” whilst giving excellent profit margins for Members, Retailers and Caterers. We have nearly 1000 SKU’s in our Own Brand ranges.

We really are A Winning Team! A ‘landmark’ five Golds at the 2011 FWD Awards

10 new Members join us

In November 2011 our Members

Amongst our Members, we have traditional Grocery and

went one better than 2010 netting

Licensed Cash & Carries, Delivered, Foodservice, Catering and

an unprecedented FIVE Gold Awards

Toiletry specialists. This wide variety of specialists allows all

at the The FWD Annual Dinner and

Members the opportunity to learn from and develop from each

Gold Medal Awards.These Awards

other as Industry leaders. Recent new Members to join us

acknowledge the excellence of the Landmark Wholesale Group.




Join us and be part of something great! Run by its Members, for its Members.

Don’t just think today... think tomorrow


Guidance on tobacco The FWD has produced a document which provides guidance on the likely requirements of the new tobacco display regulations which come into force in April. Cash & carries which are open to non-tobacco trade customers will be required to sell only tobacco products from a windowless tobacco room. There is also a requirement for a system to be in place ensuring that only legitimate tobacco traders enter this area. Tobacco products cannot be displayed elsewhere in the C&C, and cigarettes and rolling tobacco will have to be covered during re-stocking and before the point of purchase. The rules will be enforced by local trading standards officers. FWD chief executive James Bielby said: “It is expected that interpretation may differ between regions, so C&C operators are

Stricter display rules.

advised to consult their local authority before making structural changes.” JTI, which operates around 300 tobacco rooms in cash & carries, has also produced a brochure to help cash & carry/wholesalers understand the new regulations. A spokesman said: “We are working with our key customers in the distributive trade to manage the transition so they are prepared for the changes.

Push for value range Landmark Wholesale has launched a promotion for its Lifestyle Value brand, enabling retailers to make 35% profit on return. Business development director Chris Doyle (left) said: “This is our firstever integrated launch that pushes products into depots with our 35% POR Counter Attack promotion, displays them, and then concurrently pulls them out with a retailer cashback promotion and instore value


zone displays. “The pricing strategy is aimed at matching the multiples’ value rsps.“ Doyle added: “The packs clearly communicate value, while the product quality inside is at least as good, if not better, than other tertiary brands.” Among recent pricemarked additions to the Lifestyle Value range are: chocolate (100g), 50p; orange juice (one-litre), 89p; vegetable oil (one-litre), 50p; and baby wipes, £1. Tel: Landmark Wholesale (01908) 255300.

• Cash & Carry Management • January 2012

“Our focus is on assisting C&Cs to adapt to this significant change to their businesses. “We remain strongly of the view that the display bans are ineffective, bad for our trade partners and will only put extra pressure on legitimate businesses at a time when they least need it.” Tel: FWD (01323) 724952. Tel: JTI (0800) 163503.

Green light for award National wholesale trading group Confex, which this year celebrates its 40th anniversary, has confirmed that it will be presenting a green wholesaler award at its trade show dinner on 25 April. The competition is being staged in partnership with Eco-veritas, a team of data analysts and environmental specialists, and the Fuel Card People. Entries will be judged in four categories, and then an overall winner will be selected. Wholesalers will be asked to comment on energy, transport and recycling and say what positive influence they have made in their local community. Sponsors of the event include Walkers, Wrigley, Nestlé UK and Kraft Foods. Tel: Confex Group (01608) 649000.

P&H symbol restyled Palmer & Harvey’s Supershop CTN symbol has undergone a major relaunch, with a new brand identity, fascia and symbol package. The new logo is turquoise and gold with the letter ‘S’ dominating the design. Retailers will retain their identity as the new fascia incorporates their name. A new strapline ‘Your Local Hero’ is featured throughout the store, stressing the role that newsagents play in their local community. Richard Hayhoe, P&H marketing director, said: “We started as a tobacco and confectionery wholesaler in

1925 and have a proven track record of making CTNs more profitable. “With our unique Plus News category management service, we are ideally placed to support these retailers.” Tel: Palmer & Harvey (01273) 222100.



McMillan closes doors The oldest member of Landmark Wholesale, Andrew McMillan (Stranraer) has gone out of business. The company, which closed its doors in November, operated from a 25,000 sq ft freehold building, deriving around 60% of its £6m-plus turnover from cash & carry, the rest from delivered wholesale. An accountancy firm in Cumnock, Ayrshire, was brought in to handle the closure. A spokesperson confirmed: “The decision was

taken to close the cash & carry/wholesale concern after a difficult trading period. An associated quarry operation is unaffected.” Andrew McMillan (Stranraer), which had 10 staff, was formed in 1969. The company was responsible for exclusive label Galloway Pride whisky and Silver Thistle Scottish vodka. It was also in the process of developing its foodservice side. The cash & carry/wholesaler had incurred considerable debts, the extent of

Bestway splashes A sum of £12 million is being set aside by Bestway for improvements throughout the business Changes are big made in the frozen, chilled and ambient categories, said wholesale md Younus Sheikh, as well as in the foodservice and Bestpets petcare divisions. Sheikh added that the plan was to make life easier for Bestway’s thousands of independent customers. Consideration is also being given to making the

catering proposition more attractive. Bestway is also working on a range of promotions to tie in with the big events this year – the Olympics, Diamond Jubilee and Euro 12 football tournament. The company, which opens its new 80,000 sq ft Gateshead, Tyne & Wear, branch in the spring, is expected to announce annual trading results at the end of March. Tel: Bestway Group 0208453 1234.

£1m-plus outlay Quayside Wholesale, a member of Today’s Group, has spent well over £1m to improve the business, based at Gateshead, Tyne & Wear. Most of the money has been channelled into a fleet of trucks that meet the Euro 5 emission regulations. The rest has gone on refrigeration refinements and office refurbishment.

The wholesaler, which is celebrating its 30th anniversary, is donating £3,000, split equally between 10 different charities. Quayside Wholesale has over 2,400 customers and distributes more than 45,000 cases of frozen and grocery products weekly. Tel: Quayside Wholesale 0191-482 0303.


which the spokesperson declined to discuss. Two sales have been held to dispose of stock, and a handful of applications have been received to take over the building on a leasehold basis. Tel: Andrew McMillan (Stranraer) (01776) 703621.

Today’s moves The new Today’s Wholesale starts operating from a freehold building at 3 Carolina Court, Doncaster DN4 5RA on 30 January with 30 staff, headed by managing director Bill Laird. “At one time we considered moving within Scunthorpe, but there was nothing good enough,” he said. “This is ideally situated, near the station, off the M18 motorway and with good lorry access.” Tel: Today’s Wholesale (0844) 270 0700.

Improved figures

AG Parfett & Sons, the Landmark Wholesale member that operates from six branches, increased turnover in the year to 30 June by 4.2% to £301.4m. Pre-tax profit rose by 1.5% to £2.8m, while exceptional costs, resulting from the 64 redundancies that took place in May last year, totalled over £720,000. Chairman Steve Parfett (pictured) said: “We continue to trade successfully in an extremely challenging economic environment. We are well placed to deal with the trading conditions we face.” Tel: AG Parfett & Sons 0161429 0429.

Positive action 3663 has launched a health & wellbeing proposition after sounding out the needs of its customers. The company’s marketing manager Angela May said: “Some 79% told us that they had received requests for

healthier alternatives on their menus, so we have introduced this to help them offer their customers even more choice – from starters to desserts. “We have added more than 30 new products to our 150-strong Positive Steps range, all of which contain no more than 3% fat or contain at least 30% less fat than a comparable product.” Tel: 3663 (0370) 3663 000.

Cash & Carry Management

• January 2012 • 9


Soft drinks quench Sugro Mervyn Gilbert looks at the specialist impulse group. There’s a lot going on at Sugro UK. Last year a couple of wholesalers joined the specialist impulse collective, a new sub-group is gradually getting off the ground, additional promotions have been launched, fascia schemes are beginning to gain the support of member wholesalers and the central office team has been strengthened. It was some time ago that The Soft Drink Co, of Sheffield, left Confex to join Sugro, but more recently it has recruited Lynton Exports, of Alsager, near Stoke – a delivered wholesaler formed in 1979. It might seem all hunky-dory for managing director Philip Jenkins and head of trading Mike Sonia, but they are not deluding themselves that the market place is cosy. Indeed, in 2011 Sugro saw a stagnation in members’ tobacco business (up just 1%), although there was a 12% growth in total turnover to around £675m. That level of growth, coincidentally, is the same as it for Sugro’s average income from its top 40 suppliers. While tobacco remains the leading earner for the 56 member group, accounting for 49% of the revenue, in the past two years soft drinks has overtaken confectionery as the second leading category. Soft drinks (including water) now represents 17% of the total, confectionery 15%, grocery & alcohol also 15%, and crisps & snacks 4%.

‘We are tough negotiators with our suppliers. We see the future of buying groups as being about compliance. There are no openended chequebooks these days’ Philip Jenkins, md, Sugro UK Jenkins points his (chocolate) finger at Cadbury and Mars, who negotiated huge multipack deals with the retail multiples, the effect being to erode Sugro’s countline business in the first quarter of last year by 36%. Although group wholesalers managed to claw back some lost ground, the damage was already done. “Our cigarette and tobacco business last year was flat,” says Jenkins. “It’s an expensive sector now and small shops are finding it difficult to maintain the stock. “However, our performance in soft drinks over the past five years has improved tremendously.” Sonia adds: “I reckon that within three years the soft drinks percentage will have risen to 20%. “Grocery & alcohol have also grown, with more of our members beginning to support these product categories.” The top five Sugro suppliers, in order, are: Imperial Tobacco, JTI, Kraft/Cadbury, Coca-Cola Enterprises and Britvic.


• Cash & Carry Management • January 2012

Jenkins: multipack deals with multiples hit the group’s confectionery business.

Jenkins is proud of the fact that, while some other groups have changed the composition of their membership, his continues to specialise in the three core categories of tobacco, soft drinks and confectionery. “We have commercial advantages that drive loyalty from our members,” he claims, adding that the group has, in the past, received approaches from the majors, Jenkins not denying, when questioned, that these are Today’s and Landmark. “We are tough negotiators with our suppliers. We see the future of buying groups as being about compliance. There are no open-ended chequebooks these days.” Jenkins says that while the group could expand its membership by soliciting wholesalers in, say, foodservice, “there would be no point, because we don’t specialise in this sort of thing“. The recently-launched Acorn buying group has signed eight wholesalers of around 40 which have expressed interest, and the Quidz promotional scheme, incorporating confectionery, soft drinks and snacks all priced at £1, has proved popular. And after a sluggish start, 12 retailers have signed up for the Nearbuy symbol scheme. A sticking point was the fact that they have to find £2,000 or so for the fascia installation, and extra for internal modifications. “We now have 21 head office staff, including the cleaner,” says Jenkins. “One of our recent recruits is Herbinder Kaur, who joined from Palmer & Harvey as a business development executive. “She works with Ian Irvine, head of business development, who is responsible for our 1,400 Sweet Break symbol customers and for the Acorn group.”


We’re sure you already know that Red Bull

entire Impulse channel*. Small wonder,

Red Bull Sugarfree appeals to this demographic,

is the No. 1 energy drink. But what you

given that the Sports & Energy category

helping to bring new consumers into the

might not be aware of is just how well its

now even outperforms Cola.** Increasingly,

energy category and into your retail outlet.

slimline sibling is performing. Red Bull

your customers are looking to make healthier

So keep the best-selling sugar free energy

Sugarfree tops the charts in diet energy

food and drink choices. (At this time of year,

drink in stock, and visible in-store, to help you

and is also (prepare yourself!) the third

who isn’t!) And surveys show that limiting

expand your profits – not your waistline.

best-selling diet soft drink across the

sugar is one of their key concerns.***

Red Bull Gives You Wings.

*Impulse CROS rankings 12 wks to 02.10.11 **Nielsen Oct 11 ***Nielsen Homescan Survey (GB) January 2011

innovation & education

Game on! As Official Treat Provider to the 2012 Olympics, Cadbury has a promotional programme chocka-block with opportunities for wholesalers. “The London 2012 Games are the biggest event in our lifetime. It is a billion pound opportunity that is unlike anything any of us has ever dealt with before. It’s important that wholesalers don’t miss out,” says Susan Nash, trade communications manager at Kraft Foods. “It is never too early to get started and think about how sales can be maximised, by stocking special limited-edition London 2012 themed confectionery products and creating in-depot confectionery displays,” she continues. “It’s also important to note that the London 2012 Games are not just confined to London. Events will take place all over the country in England, Wales and Scotland.” Cadbury is the Official Treat Provider of the London 2012 Olympic Games and Paralympic Games, and it last year kicked off a two-year campaign called Spots v Stripes to immerse the nation in game play in the lead up to the event. “It is a campaign that wholesalers and retailers can tap into at any time they wish and with the confidence that it’s long-running, so there’s no danger of missing the activity windows,” Nash points out. “It’s also a campaign that is rooted in local, family and community-based play activities which are perfect for wholesalers to embrace to help build even greater connections with their local community.” Information for wholesalers about Spots v Stripes in the community can be found at www.spotsvstripes.com/ community.aspx. Mike Smith, national account holder at Kraft Foods, advises C&C/delivered wholesalers on how to maximise sales potential from the 2012 Olympic and Paralympic Games. “Firstly, it’s about depots understanding the sheer size of the opportunities that the Olympic and Paralympic Games represent and, secondly, it’s about being creative and trying out new ideas. Depots can achieve a greater return by engaging in bigger and better Cadbury branded displays that will really capture retailers’ imagination, generate excitement and, of course, encourage spend. “There is a magical power innate with the Games and there will be a huge excitement with the public,” he adds.

Displays like this at BA C&C Swansea generate excitement.


• Cash & Carry Management • January 2012

Keep Team GB Pumped In September, Cadbury appealed to the public to help record iconic music tracks to ‘Keep Team GB Pumped’ all the way to 2012. An on-pack promotion also ran across 11 of Cadbury’s top-selling products. Consumers had a chance to win a cash prize and music related rewards. Wispa Gold Wispa Gold made a permanent return in November as part of Keep Team GB Pumped. The pack has a limited-edition design, emphasising the word GOLD. Backing the relaunch is an incremental £1.5m spend on instore and outdoor activity. Olympic and Paralympic mascots Cadbury also recently launched four new Olympic and Paralympic mascots shaped products: the Cadbury London 2012 Mascots twinpack; Bassetts Jelly Mascots; a hollow chocolate Wenlock; and a solid Cadbury chocolate Mascot lolly, in a variety of collectable designs. Race Season The launch in March last year of the Cadbury Spots v Stripes Race Season was supported by a £6.5m campaign, including TV and outdoor advertising, digital activity, PR and the introduction of a limited-edition Big Race bar. Minute to Win It In June, Cadbury and ITV announced a new brand partnership built around a UK version of the hit game show Minute to Win It in association with Spots v Stripes. Next season will feature simple everyday games to be completed in a minute. Spots v Stripes packs Cadbury Dairy Milk, Crunchie, Caramel, Wispa, Twirl and Double Decker have all received a Spots v Stripes facelift along with multipacks and some sharing bags. Each outer contains a mixture of spotty and stripy wrapped favourites, and a selection of the bars also include an on-pack promotion. The special packs will be available up until the Games. Creme Egg: ‘The Goo Games’ Cadbury has just unveiled a multi-million pound integrated marketing initiative for Creme Egg: ‘The Goo Games’. The 13-week campaign includes tv advertising, digital activity, PR, events and sales promotion channels, a dedicated website and social media. Tel: Kraft Foods (01242) 236101.

‘The Goo Games’ is currently supporting Creme Egg.



Protecting the disadvantaged Around 70% of UK consumers recognise the FAIRTRADE Mark and see it as a guarantee that disadvantaged producers are getting a better deal. Over 7.5m people, including farmers, workers and their families, across 59 developing countries, benefit from Fairtrade. In the UK, sales of these products reached £700m in 2008 – 44% up on the previous year. While Cadbury Dairy Milk has been Fairtrade certified in the UK and Ireland for some time, it was about a year later that Cadbury Dairy Milk Buttons also began to carry the logo. Another development saw CDM celebrate Fairtrade Fortnight by releasing its first album, Big Swap Songs, which included an exclusive track by chart-topping artist Paolo Nutini, as well as five other UK chart hits, all covered by Ghanaian group, The Big Ghana Band. The release was created as a free ‘thank you’ to anyone who swapped his products with those with the Fairtrade mark as a result of Fairtrade Fortnight, which ran last year from 22 February to 8 March. Several months later, Cadbury revamped the foodservice and retail packaging of its Instant Hot Chocolate with a modern pack design. It features the deep purple colour and swirling logo that have become synonymous with Cadbury Hot Chocolate, emphasised through a sharper, contemporary look. The redesign also included the FAIRTRADE Mark for the first time, illustrating Cadbury’s continuing commitment to the organisation, which improves the livelihoods of cocoa growers in Ghana. As well as CDM, the entire Cadbury hot beverages range in the UK and Ireland is now Fairtrade. Last year marked the first anniversary of the Cadbury Cocoa Partnership (CCP), an initiative in which Cadbury is investing £45m over 10 years to secure the sustainable socio-economic future of cocoa farming in Ghana, India, Indonesia and the Caribbean, where the cocoa farming industry is facing

increasing challenges. The CDM arrangement with Fairtrade also now extends to Canada, Australia, and New Zealand. In total, these three markets, together with the UK and Ireland, will quadruple Fairtrade cocoa sales from Ghana from 5,000 tonnes (in 2008) to 20,000 tonnes a year with an estimated 40,000 farmers benefiting directly. Cadbury first started working with Ghanaian cocoa farmers over 100 years ago.

Non-exploitative Luxury ice cream brand Ben & Jerry’s, part of the Unilever UK business, is a firm supporter of Fairtrade. Brand manager Rhodri Morgan says: “Fairtrade is about making sure people get their fair share of the pie. The whole concept goes to the heart of our values; nobody wants to buy something made by exploiting somebody else. “The Fairtrade mark on Ben & Jerry’s tubs guarantees that more than 24,000 farmers will receive a fair, stable minimum wage for their work, as well as a social premium, better working conditions and stringent environmental standards.” The ice cream claims a 49% value share of the luxury segment, with 4% growth year on year (IRI MAT April ’11). Morgan adds: “Our commitment to Fairtrade will add further value to the category by driving our customers’ loyalty to the range.

Putting the message across, but discreetly.


• Cash & Carry Management • January 2012



fairtrade ”Our philosophy is to make great ice cream in the nicest possible way, which means that, as consumers increasingly factor Fairtrade into their purchasing decision making, we are best placed to capitalise through increased brand loyalty.”

Major contribution Maltesers is the first Mars brand to carry the Fairtrade label in the UK and Ireland. The confectionery manufacturer reckons the move will contribute more than US$1m in annual funds directed at cocoa farmers in West Africa to invest in their farms, business organisations and communities. Maltesers is claimed to be the third biggest confectionery brand in the UK; its allegiance to the organisation will represent a 10% plus increase in total UK Fairtrade sales. Harriet Lamb, executive director of the Fairtrade Foundation, says: “It’s brilliant news for cocoa farmers and we’re thrilled that the first initiative is to certify Maltesers with the FAIRTRADE Mark. “It means that from this year every Maltesers ball we enjoy will deliver a little bit of extra magic, supporting the farmers who grew the cocoa to invest in a brighter future.” Fiona Dawson, president of Mars Chocolate UK, comments: “I am very excited that Mars in the UK is at the forefront of this global agreement. We are also marking the 75th anniversary of this much-loved product. “We are looking to lead the way in enabling certification for the whole cocoa sector. This agreement with Fairtrade is a significant step in the drive for cocoa sustainability worldwide.” When the ‘twinning’ was announced towards the end of last year, it was welcomed by Comic Relief. Maltesers partnered the charity fund-raiser by running an on-pack promotion, raising over £1.1m for the organisation in the UK. At the time, Richard Curtis, the founder of Comic Relief, said: “We worked closely with Mars on what proved to be a hugely successful brand partnership with Maltesers. “I am delighted that Mars is continuing to support the sustainable development of African farming communities through this new agreement with Fairtrade. “Having seen Dawson: ‘Significant step in the drive so much poverty for cocoa sustainability worldwide.’ in Africa, I believe


• Cash & Carry Management • January 2012

Not long until the year’s major thrust.

that this link-up will transform the lives of thousands of cocoa farmers, giving them the confidence to tackle the problems that they face.” Mars claims to be the first major confectionery company to commit to purchasing only certified cocoa by 2020.

What is it and what does it do? The Fairtrade Foundation is an independent certification body which licenses the use of the FAIRTRADE Mark in the UK on products meeting international Fairtrade standards. The label appears on products as a guarantee that disadvantaged producers are getting a better deal. More than 1.5m people – farmers and workers – across 60 developing countries benefit from the international Fairtrade system. Over 4,500 products have been licensed to carry the FAIRTRADE Mark, including coffee, tea, chocolate, cocoa, sugar, fruit, biscuits, cakes, snacks, preserves, sauces, rice, nuts, beers & wines, cereal bars, yogurt, ice cream and a wide range of non-food products. Last year Fairtrade sales reached an estimated £1.17bn: 40% higher than for the previous year. There are currently nearly 600 producer organisations selling to the UK, representing more than 1.5m farmers and workers. Recent TNS research figures, based on a survey of 2,000 UK people aged over 16, showed that awareness of the FAIRTRADE Mark is 77%.

For further information: Cadbury (08702) 400861 Fairtrade Foundation 020-7405 5942 Mars Chocolate UK (01753) 550055 Unilever UK (0800) 731 1597


it update

No stopping technology The downturn hasn’t prevented the leading IT operators adding to their client tally or modernising their systems.

independent’, giving users the flexibility to mix and match the best-of-breed systems in the wholesale arena in order to suit their specific requirements and budget.

Greater efficiency STL Technology Solutions rounded off a successful 2011 One beneficiary was Venus Wine & Spirit Merchants, of north with a £250,000 deal with East End Foods, one of the largest London, which significantly improved the efficiency of both importers of Indian foods into the UK. its picking and stocktaking activities before the Christmas The West Bromwich-based C&C wholesaler opened its rush by using 12 STL hand-held terminals. third West Midlands branch towards the end of last year at This year, STL has mapped out a programme of further Aston. The 100,000 sq ft depot joins the existing units at developments, including restyling its user interface to ensure Smethwick and Birmingham. it stays at the forefront of the market. It is evidence that the IT supplier is still completing major The company has already completed a new project by contracts, despite the difficult economic climate. The cominstalling its Merchandise Management System, tills and pany is as committed as ever to its ongoing programme of central cash system at Maini Wholesale Cash & Carry, based technology development, which has gained it a reputation in Birmingham for providing solutions that will help C&C/wholesalers beat And this month it is launching a Merchandise the squeeze. Management Solution specifically for small and start-up Harsh Kumar, general manager & IT manager of East End C&C/wholesalers. STL Penta can support up to five users and Foods, a member of Landmark Wholesale, says: “It’s not 10,000 products. This new solution is available only through only quality food that our company reputation relies on; UK resellers. quality information and control are also key ingredients. The first STL Penta reseller to sign up to this programme “When we investigated our options, only STL provided is Niborough Computer Services. the modern, future-proofed solution we needed. With a strong, Microsoft-backed roadmap, web-enabled modules and proven track record, we knew STL would not only give us the functionality we need now, but support us into the Going international, STL has signed up to the Gateway to future.” Global Growth initiative launched by UK Trade & Investment, Last year STL invested substantial resources in porting all working with that organisation to proits core systems onto a 64 BIT operatmote its software solutions outside the ing system. This was a significant UK, particularly to emerging markets. advance, providing C&C/wholesalers As a result, it has already attracted with improved performance, virus the attention of a multinational IT protection and concurrent user capaorganisation, which intends to make bilities. STL software products available to its It also launched its combined Duty partner network worldwide. Management & Warehouse ManageSTL’s managing director Ivan ment solution. The first installation of Durkin says: “The whole team worked this went live last year at United incredibly hard last year to ensure our Wholesale (Scotland), enabling the systems remained the very best in the operator to establish an authorised wholesale arena. And it’s paid off! bonded warehouse, in compliance “These major new orders reflect the with Customs & Excise regulations, recognition that we can help C&C/ and to gain substantial cashflow wholesalers beat the recession, both benefits. by helping them to operate more effiHowever, 2011 wasn’t just about ciently and effectively and by extendbig projects. STL is renowned for its ing their core systems to optimise their ability to add value to its core soluprevious investments.” tions with innovative peripherals, and Durkin adds: “As we enter our 10th last year it redeveloped all of its year fitter than ever, we feel ready for mobile terminals, including its innew challenges. We are looking forstore application, as well as fieldward to developing new reseller netbased ordering systems for sales reps works both internationally for largeon the road – .NET on Windows scale projects, and locally with small Mobile. Still climbing – Ivan Durkin, STL’s md. wholesalers.” This made the software ‘hardware

Worldwide expansion


Cash & Carry Management

• January 2012 • 17

it update Sharpness of Swords Sanderson, the publicly-owned UK provider of software solutions to the delivered wholesale and cash & carry industry, continues to offer its services to companies looking to maximise the benefits from their IT systems and strengthen their operations. Birmingham-based electrical wholesaler Awan Marketing needed something to manage its growing C&C and delivered wholesale businesses, improve customer service and expand its product range. It chose Swords, the wholesale IT system from Sanderson, to integrate all areas of its operations, support expansion and improve the company’s overall efficiency. Awan Marketing found this achievable with Swords, which manages the demands of purchasing, pricing, stock and warehouse management – Awan’s key areas. Time-consuming manual processes have been replaced with an automated, company-wide system, enabling the C&C/wholesaler to deliver a high quality service to customers. Stock management has been significantly improved as the company has instant access to real-time stock information, increasing stock control and avoiding under and overstocking situations with informed buying decisions. Telesales also benefit from complete visibility of stock levels and product information, enhancing customer service with alternative products for out-of-stock items. Nasir Awan, managing director, says: “The Sanderson solution was the natural choice for our company to support our sales growth and expansion. It integrates our new warehouse operations with the rest of the business, significantly improving stock visibility and providing essential business information to strengthen our decision-making process.” Another Sanderson customer, Gold Star Cash & Carry, of Harrow, Middlesex, launched its new business with the Swords wholesale solution, which integrates its C&C and delivered wholesale operations. In addition to utilising this system, the company is implementing the Swords Radio Frequency solution, using handheld scanners to further maximise warehouse efficiency. This application facilitates more efficient order picking, shelf edge label checking and stock taking. It also eliminates manual errors.

Swords RF is claimed to instantly match goods-in deliveries against purchase orders with 100% accuracy, highlighting shortfalls and protecting cash flow by reducing costly errors. Also strengthening its operation is food wholesaler Chapple & Jenkins, of Brislington, Bristol. With expansion, it found it was duplicating efforts in areas such as sales order processing, realising that various processes across the business were generating unnecessary administration. A new wholesale IT system was required to increase control of the growing business and to streamline operational processes for maximum efficiency with minimum administration. The wholesaler chose Swords as it fully combines all wholesale operations with an integrated accounts system; it also replaces manual processes with a time-saving automated system, so delivering an efficient and punctual service to customers. C&J director Martin Jenkins says: “I am confident Swords will streamline our business processes and cut out the manual workload for all departments. This will boost our customer service levels, as staff will have less paperwork to administer and more time to assist customers.”

Today’s recognition Customers of Sanderson won seven awards for business excellence at the recent Today’s Group awards dinner. The wholesalers use Sanderson’s Swords solution to manage their business operations. Additionally, JW Filshill, of Glasgow, and Savage & Whitten, of Newry, Northern Ireland, have added the new voice picking module to their systems. Mark Windebank, md of Savage & Whitten, confirms how the Sanderson system is a crucial component in its business. “We pride ourselves on providing the best service to our customers and the Swords wholesale solution helps us to deliver this. By recently adding voice order picking technology, we have saved valuable working time for staff and increased our overall warehouse productivity.” Swords is backed by a dedicated and experienced team, working to continually develop the software to meet the changing needs of the wholesale market. With over 20 years’ experience, Sanderson claims to be the leading IT provider of integrated solutions for the delivered wholesale and C&C industry.

Utilising Sanderson’s Swords wholesale system makes a forklift truck operative’s work so much easier.


• Cash & Carry Management • January 2012


Integrated software for Delivered  Wholesale and Cash & Carry operations Sales Order Processing Purchase Order Processing Fully Integrated Financials Business Intelligence  Web Trading Stock & Warehouse Management Till Order Processing Rep & Van Sales System

Call: 024 7655 5466 Visit: www.sanderson.com/swords Email: info@sanderson.com

it update Key objectives included improved accuracy and productivity, the tracking of major processes and stock movements and a reduction in costs associated with stockholding and manpower. BWG head of IT Veronica Sullivan says: “After an extensive review, Accord emerged as the best fit for the business, given it is a fully integrated solution capable of covering the complete range of our warehouse activities.” Voice was initially implemented in the Irish company’s wholesale division, which trades from a 52,000 sq ft purpose-built depot in North Road, Dublin. There, the opportunity arose for the deployment of the Voice WMS. For the first time, the Value Centre C&C operation and the foodservice division were sharing the same building to deliver maxiBWG’s Adrienne McDonnell (left) and Veronica Sullivan with Martin Tanner, mum synergy and provide both walk-in and BCP’s business development manager. delivered options for customers. The BCP system consists of the Accord North London concern Dimark, which claims to be the Voice Directed WMS operating with Vocollect’s Talkman T5 UK’s leading wholesaler of Polish and eastern European food terminals and a Motorola radio frequency network. and drink, has invested in a 13-user Accord solution from The IT company worked closely with the BWG Foods IT BCP (Business Computer Projects). team, Irish specialist Heavey RF and building contractors to Founded nine years ago, Dimark also operates a cash & implement the system efficiently. carry under the Garden Foods name. In 2009, it was listed at Sullivan says: “The system has exceeded everyone’s No.50 in the Sunday Times Fast Track 100, and a year later it expectations and feedback from customers has also been was placed 30th in the ‘Real Business Hot 100’. very positive, particularly around the accuracy of deliveries.” Says a BCP spokesperson: “Dimark wanted to replace It is also claimed that picking has been virtually error free separate sytems running its two businesses with a single and that order fulfilment is running at 99%. solution able to run both operations on a single platform. “The net result,” adds Sullivan, “is that it’s allowing us to “Critical requirements were for a fully-integrated, userreduce the amount of money we have tied up in stock.” friendly robust system to support both concerns – which Also commenting on the success of the project is BWG share the same stock location – with flexible pricing features Foods’ IT project manager Adrienne McDonnell, who says: to cope with the price-sensitive nature of the market and the “The system helps us to utilise the warehouse space in the ability to scale up as the company grows.” most efficient and effective manner. We know immediately The Accord system includes the functions of purchasing, when a picking slot needs replenishment and exactly where sales order management, stock control, telesales and finanthat replenishment should come from so we can optimise cial accounting. operations.” Dimark executive Ibrahim Yucesoy says: “We looked at a The Irish company has since rolled out the BCP system at range of solutions in the market place, but Accord outshone its retail distribution centre in Walkinstown, near Dublin. others in terms of functionality and flexibility. The final word comes from Sullivan, who comments: “BCP showed a very clear understanding of our market “The paper-based systems were unable to offer the same sector and business requirements.” level of flexibility and functionality as the Accord Voice WMS, which we need to meet our requirements for growth and expansion. “The technology is proving itself as we extend its use, and Another BCP client, BWG Foods, is experiencing considerthe management team is delighted with the speed, efficiency able benefits since investing £250,000 in a Voice Directed and real time visibility of the key information which is being Warehouse Management System (WMS). delivered.” The Irish company supplies more than 900 SPAR, EUROSPAR, Mace and XL symbol stores and has a chain of 22 Value Centre cash & carries and a foodservice operation. The decision to implement voice technology followed a BCP (Business Computer Projects) 0161-355 3000 comprehensive internal review to expand and upgrade its Sanderson (0247) 655 5466 wholesale activities and improve business performance and STL Technology Solutions (0844) 472 4727 customer service.

£250,000 investment

For further information:


• Cash & Carry Management • January 2012


FREE JOB ADS FOR C&C/WHOLESALERS Struggling to get the right candidate for your job vacancy? Reach every cash & carry and delivered wholesaler in the UK free of charge


Visit the website or contact Martin Lovell at mail.winlove@btconnect.com or 01342 712100

- A single solution for all your business issues • • •

Open, scaleable solution for Cash & Carry and Delivered Trade Leading edge technologies: Voice, RF, XML Web Services, CTI, Wi-Fi and Bluetooth, SMS, RFID ready … Rapid payback – potential 6-12 months

Modules include: Multi-channel Order Fulfilment integrating Telesales, Web Ordering, Internet EDI; Voice Directed WMS; Stock Control; CRM; Purchasing; Demand Forecasting; eBusiness; Web Services; Store Management; Head Office; Financials; Business Analytics … Business Computer Projects Ltd

BCP House, 151 Charles Street, Stockport, Cheshire SK1 3JY. T: +44 (0) 161 355 3000 F: + 44 (0) 161 355 3001 E: accord@bcpsoftware.com www.bcpsoftware.com

employment law

Acas code: common breaches Human resources expert Cate Ritchie (right) highlights where employers frequently go wrong when taking disciplinary action. In unfair dismissal claims, did you know that employment tribunals take the ‘Acas code of practice on disciplinary and grievance procedures’ into account and may increase an award of compensation by up to 25% for an employer’s unreasonable failure to follow it? But where do employers commonly go wrong? Below we provide you with a breakdown of the most common faults: 1. Not warning the employee at the outset of the possible consequences of the disciplinary action. From the outset, the employer must tell the employee the possible outcome of the disciplinary action. In order to give a fair chance of defending the allegation properly, it should not come as a surprise to the employee later on in the process that dismissal is a possibility. 2. Not setting out the nature of the accusations clearly to the employee. The employer should set out the alleged misconduct clearly and should, throughout the disciplinary process, be consistent in what it is accusing the employee of. New allegations that come to light during the investigatory stage can be added to the process, but any disciplinary sanction must be imposed only in respect of allegations that were properly investigated and brought to the employee’s attention as part of the proceedings. 3. Not providing the employee with relevant evidence. The employer should provide the employee with all the evidence (typically in the form of witness statements) in advance of the disciplinary hearing. Ideally, the evidence should be provided when the employee is invited to the hearing, or at least far enough in advance for him or her to be able to prepare a defence. 4. Not operating a system of warnings where appropriate. In some cases, the alleged misconduct will be so serious that summary dismissal for a first offence will be justified. However, in cases of minor misconduct, a series of warnings before dismissal will be appropriate. 5. Not allowing the employee to be accompanied at a disciplinary hearing. There is a statutory requirement to allow the employee to be accompanied at a disciplinary hearing. 6. Relying on evidence from one particular source with no corroborative evidence. There may be limited circumstances where one individual’s evidence is enough to lead to a disciplinary sanction, but an employer should always look for more. Employers should be


• Cash & Carry Management • January 2012

alert to the problems of relying on one person’s evidence and always look for corroborative evidence. 7. The absence of an adequate appeal stage. The right of appeal is fundamental to ensuring natural justice. Employers should give the employee the opportunity to appeal when the outcome of the disciplinary hearing is communicated to him or her. Appeals should be unbiased and not be a ‘foregone conclusion’. 8. Failure to keep clear records of the whole disciplinary process. To stand the best chance of successfully defending employment tribunal claims, employers must keep clear records of each stage of the disciplinary process. It is too easy for claimants to find inconsistencies in the evidence if witnesses have to rely purely on memory. 9. Delays in dealing with disciplinary issues. Most cases should be dealt with in a matter of weeks and unexplained delays in the disciplinary proceedings will always be frowned upon by tribunals. However, more complex or difficult cases (for example, where fraud or a criminal offence is alleged) will inevitably take longer. 10. Having the same person deal with the whole disciplinary process. A common failing found in tribunal claims is that the same individual is in charge of the disciplinary process from start to finish. Ideally, different people should carry out the investigation, disciplinary hearing and appeal stage. If you would like support to deal with disciplinary situations, or wish to talk to Cate about a particular HR issue, contact her at cate@121hrsolutions.co.uk or phone (0792) 121 3890.


products & promotions Slimline pack

£13m prize haul MARS – ‘Win a Million Moments’ is an on-pack promotion offering lucky customers the chance to choose from more than £13m worth of prizes, making it Galaxy’s biggest-ever prize fund. It will be in-store from next month. Rewards include music downloads for 10 minutes, manicures for one hour and lunch in Paris, described as ‘over 120 minutes of pleasure’. The activity will build on Galaxy’s association with indulgence and luxury. The brand is claimed to have achieved growth of 25% in the past five years (IRI all outlets, value sales, year to 13/8/11). Each pack contains a unique code, which can be sent via text or entered online at www.galaxychocolate.co.uk. The promotion is part of a £15m media spend for the brand this year, including a 20-second tv ad on air during February. Galaxy is also launching its first-ever limited-edition product to support the ‘Win a Million Moments’ promotion with the introduction of a 31g variant, Bubbles Orange. Tel: Mars Chocolate (01844) 262517.

Las Vegas trip JACK LINK’S – ‘The world’s No 1 authentic American meat snack brand’ has launched an online competition for a consumer to win a trip to Las Vegas, marking the product’s sponsorship of the World Series of Poker 2012. The winner will spend two nights in a top hotel and enjoy VIP treatment at the gaming event. The competition coincides with the UK screening of the World Series of Poker 2011 tournament – also sponsored by Jack Link’s. UK distributor for the brand is Petty Wood. The competition closes on 28 February. Tel: Petty Wood (01264) 345500.


BAT UK – Next month, Vogue Signature will be available in a compact pack with a metallic finish for both Bleue and Menthe variants. The Vogue Signature range has a 0.05% market share (Nielsen Oct 2011). Brand manager Hinesh Patel said: “The new pack offers a creative approach for today’s smokers who are looking for an accessible, compact option. In a challenging market, the contemporary packaging is designed to ensure that Vogue retains its relevance for smokers.” The packs have an rsp of £7.15 for 20. Tel: BAT UK (0800) 444236.

Redesign COCA-COLA ENTERPRISES – A new look has been unveiled for Dr Pepper and Dr Pepper Zero. The packaging is said to increase shelf stand-out and help consumers more easily differentiate between the two variants. The restyle features the iconic logo and burgundy pack design with a new purple and red paint splash feature. Zero transforms from the original burgundy to bold white packaging with a purple and red paint splash effect. Selena Taylor, trade communications manager, said: “Dr Pepper is worth £83.1m in UK value, and is experiencing a 13.5% rise year-on-year.” Both styles are available in 330ml cans and multipacks, and 500ml and one-litre PET bottles. All data Nielsen.

Tel: CocaCola Enterprises (08457) 227222.

• Cash & Carry Management • January 2012

Ad drive begins TETLEY GB – The tea supplier’s 2012 marketing programme begins this month with a campaign in support of green tea. The £1m-plus drive includes a new Tea Folk commercial which runs throughout the month, press ads and sample giveaways. Customer marketing controller Simon Attfield told Cash & Carry Management: “January is the most important month for green tea sales as consumer focus switches from Christmas excess to healthy new year resolutions. “Our green tea range has been a major success for us and this campaign is designed to push awareness further and attract new customers to this growing sector.” Volume sales of Tetley green teas are rising by 13% (Nielsen MAT 29/10/11). Tel: Tetley GB 020-8338 4000.

Let them eat cake HEINZ FOODSERVICE – Caterers have an opportunity to claim a free sample of an Alveston Kitchen dessert to trial in their restaurant or pub. Last month, the company sent direct mail packs to 12,000 businesses, and the first 500 to respond will be sent either Red Marble Bundt Cake, Rocky Road Bundt Cake or Chocolate Fudge Cake. A further 500 customers will receive £5 cash back against an Alveston Kitchen dessert. Since the range returned to the Heinz Foodservice portfolio in May, recipes have been improved and refreshed. The offer ends on 31 January. Tel: Heinz Foodservice (0800) 575755.


products & promotions Old ‘un celebrates

Fingertip control

WRIGLEY – The company is celebrating its centenary by launching several range extensions and price-marked packs. Under the Extra chewing gum label (valued at £153m: Nielsen MAT week ended 5/11/11) it has introduced a sugar-free strawberry flavour, which, like the other styles, is approved by the Dental Health Foundation. The new variety comes in 10-pellet single packs with an rsp of 40p. The confectionery manufacturer has also launched a new style in the 5 gum range. Called Evolution, it has a sourto-sweet citrus and pear flavour. The product is being supported by advertising, sampling at universities, digital activity and appearances on the 5 gum UK Facebook page. Next month Skittles will use its Facebook base of more than three million to introduce Cora, ‘the face’ of the brand’s digital activity. The product also appears on the small screen, featuring ‘Tim and his Midas Touch’ in an ad that was first shown last year. Skittles ‘Crazy Cores’ is available in a 174g pack (rsp £1.28) and a 55g size (42p). The brand is valued at £21.7m (Nielsen MAT week ended 16/7/11). Wrigley is also launching several price-marked packs, including those under the Extra, Starburst and Skittles labels. They will be available through the C&C channel from April. ‘Handy’ boxes of Extra peppermint and spearmint will be priced at £1, Skittles Fruits (55g) at 45p and Starburst fruit chews at 45p. Sales director Duncan McCulloch said: “The visible price-marked packs reassure shoppers they are getting the best value for money from their local stores. They also offer retailers an incremental chance to boost sales. “We anticipate that the new packs of Extra, Starburst and Skittles will be an instant hit with consumers.” Tel: Wrigley (01752) 752094.

BAT (UK) – Next month, the Pall Mall ‘Click On’ cigarette will be introduced across all channels, offering adult smokers ‘a low price brand with a premium innovation’. They have the option of clicking a capsule in the filter to release a burst of liquid that delivers a fresh taste. If the cigarette remains un-clicked, it retains the same taste and characteristics as the current Pall Mall 7mg variant. The launch follows Kantar research which indicates that many adult smokers under 30 are keen to try capsule cigarettes, but aren’t prepared to pay premium prices. Brand manager Gwilym Cooke said: “Capsule technology has had a huge impact on the premium tobacco market. Now we are introducing it to the value segment in the UK.” Pall Mall Click On will be available in a kingsize 19s format in an introductory £5.33 price-marked pack, before moving to an rsp of £5.47. Tel: BAT UK (0800) 444236.

Swanderful! REPUBLIC TECHNOLOGIES (UK) – The company’s Swan brand, which received high visibility in last year’s MCE Insurance British Superbike Championship, is hoping for even greater coverage in the 2012 event. Last year the race was reported on ITV, the BBC, Eurosport and in the national press. The Swan Yamaha team includes reigning British champion Tommy Hill and five-times Isle of Man TT winner Ian Hutchinson. The supplier’s marketing manager Mark Alldred said: “Last season, it couldn’t have been closer, with just 0.006 of a second – or a Swan rolling paper – between Tommy Hill and John Hopkins for the title.” Tel: Republic Technologies (UK) (01494) 533300.

Mayfair restyle JTI – There is a new look for Mayfair, claimed to be the UK’s leading midprice cigarette brand. The redesign features a new pack background, graduated silver edging and a white logo with red accent and silver base. It is available across the whole range – king size, smooth, fine, menthol and super kings 10s, 14s and 20s, and in both standard and pricemarked packs. Mayfair is said to account for 12.8% of the total UK cigarette market. Retail sales are £1.5bn. The company is supporting the new look with selected cash & carry events throughout the UK. Data: Nielsen MarketTrack August 2011.

Tel: JTI (0800) 163503.


Faster sales SWIZZELS MATLOW – The manufacturer has teamed up with Honda in a ‘retro influenced’ sales campaign. The Japanese car giant is using Love Hearts imagery for its nationwide sales promotion (‘Your Honda, Your Way’) for the Jazz, CR-V and Insight models. Swizzels Matlow has also provided mini rolls of Love Hearts for Honda’s network of dealerships. Tel: Swizzels Matlow (01663) 744144.

Cash & Carry Management

• January 2012 • 25

ethnic foods wholesaling

It’s not all about rice... Ethnic foods wholesaling is a major activity, with the ever-changing cultural mix in the UK. So who are the major players? Mainly known for its growing cash & carry business, Bestway Group also includes the lesser-heralded, but nonetheless lucrative, ethnic foods wholesale operation, MAP Trading. The subsidiary, which was formed in 1990, has been headed by general manager Muzaffar Chowdry from the outset. He is in charge of a staff of 40, although there is also some support from certain Bestway executives. “We source from all over the world,” says Chowdry, “but Pakistan, India and China are our leading territories, the main commodities from India and Pakistan being basmati rice, spices and lentils. India also supplies us with canned fruit – particularly mangoes. “We also import beans and sauces from China, Canada and Australia, lentils from China and canned vegetables from Italy and France.” In terms of branding, White Pearl is the name most familiar with MAP Trading. Says Chowdry: “Some 15 years ago, White Pearl covered rice only, but now that label can be seen on cooking oil (vegetable, sunflower, corn and rapeseed) and on flour, lentils, spices and canned vegetables. It has become a major brand and a household name in ethnic foods. “There are only two premium brands of basmati rice in the UK – White Pearl from Pakistan and Tilda from India. Because of their quality, others on the market are much cheaper, based on a benchmark of 20kg packs. Our rice is sold in various sizes, ranging from 500g to 20kg.” Chowdry declines to give a turnover figure for the ethnic foods business, saying it is contained within the overall Bestway Group figure. He admits, however, that rice is the leading commodity, accounting for 40% of MAP Trading’s volume; the other 60% is shared by a range of products. “Over the past two years, all spices and White Pearl lentils

have shown particular growth. I wouldn’t say we are the biggest ethnic foods supplier in the UK, but we are definitely one of the biggest. And we certainly have the biggest distribution network.” The company utilises nearly 100 vehicles. That includes those operating out of the group’s headquarters at Park Royal, north-west London, and from the cash & carries. Chowdry comments: “We largely operate by delivering food from here to the 62 C&Cs, which then transport them to our customers. They comprise ethnic restaurants as well as superstores, for whom the minimum order is five pallet loads. We also use some third-party distributors.” Answering the question ‘How many ethnic style restaurants does the UK have?’, Chowdry replies: “I don’t know that figure. But every major city here has an Indian/Pakistani and Chinese restaurant. I would say that the Indian/Pakistani outlets now outnumber those specialising in Chinese food.”

Twin operation Natco Foods, based in Hayes, Middlesex, and a member of Today’s Group, trades both as a C&C operator and a wholesaler of ethnic foods. Formed in 1963, the company’s total annual turnover is £62m – around £7m more than in the previous 12 months. The wholesale side currently handles about 45,000 tonnes of product a year, all the business being conducted online. The main countries of origin are India, Pakistan and Bangladesh, which together account for around 80% of the income. China represents 10% and other territories the remaining 10%. Financial controller Devinder Shinh says: “From India, our main category is spices, from Pakistan it is rice and from China beans and raisins. “Over the past two years, the sectors that have made the most significant headway are spices, lentils, nuts, canned food, flour and poppadums.” Natco has a fleet of six vehicles which deliver to independent businesses throughout the UK. There is no minimum drop and the company claims to be flexible in terms of frequency of delivery. “We see ourselves as being in the top three in UK ethnic foods distribution,” says Shinh.

Named after founders

MAP Trading’s Muzaffar Chowdry with the top-selling White Pearl rice.


• Cash & Carry Management • January 2012

JK Foods, the ethnic foods arm of Landmark Wholesale member Hyperama, got its title from the last names of the founders: Mark Johal and father-in-law Karamjit Singh Khera.


ethnic foods wholesaling The company, formed in 1976, has a turnover of £32 million – a £1 million increase on the previous year – and a payroll of 60. Chinese foods are the mainstay of the JK business, accounting for 70% of the revenue. Indian represents 20% and south-east Asian 10%. Says business development manager Amar Johal: “Our top six categories, in order, are: rice, canned fruit & veg, packaging, groceries, noodles and snacks. “The brands which stand out among those making headway in the past couple of years are: Tiger Tiger (all products), China Boy (20kg long grain rice), Mekong (6 x 2kg Vietnamese prawn crackers), Millennium Packaging (MP plastic and foil containers) and Seven Moons (all Mark Johal enjoys one of JK Foods’ products).” major products. While there is a

degree of uncertainty among wholesalers about the number of ethnic restaurants and takeaways in the UK, Johal says, with his company’s knowledge of the region: “There are about 5,000 Chinese restaurants and takeaways in the Midlands alone. There are also around 300 specialist wholesalers and supermarkets.” JK Foods, which delivers from Hyperama’s Nottingham site (the C&C operator also has C&Cs in West Bromwich and Peterborough), uses 10 trucks. “The minimum drop is normally one pallet,” says Johal, “and, depending on the area, we usually deliver every four weeks. “As well as our own transport, we use third-party hauliers, including Palletways, CEVA and Europa. “Where would I say we stand in the ethnic foods distribution league? Arguably, we are one of the leading players in this specialist sector.”

Exclusive deals Another major operator in ethnic foods wholesaling is TRS Foods, whose base is in Southall, Middlesex. Controlled by the Suterwalla family, it has exclusive arrangements for the distribution of various brands of canned foods, pickles, spices and ingredients throughout the UK and Europe. Founded 50 years ago, it also has C&Cs in Southall and Leyton, east London, which are members of Landmark Wholesale.

SNACKS & BISCUITS The March 2012 issue of Cash & Carry Management will include a feature on Snacks & Biscuits

To advertise in this issue, contact David Ford on (01342) 712100


Cash & Carry Management

• January 2012 • 27

Profile for Cash & Carry Management

Cash and Carry Management  

January 2012

Cash and Carry Management  

January 2012

Recommendations could not be loaded

Recommendations could not be loaded

Recommendations could not be loaded

Recommendations could not be loaded