Cash & Carry Management

FEBRUARY 2012

CATEGORY MANAGEMENT

The business magazine for cash & carry/delivered wholesalers

contents

Make every category work for you Making every product category work for you should be a top priority for wholesalers and retailers alike. This special issue contains useful advice from leading suppliers on choosing the correct range, allocating an appropriate amount of space to each category, and merchandising effectively. Of course, one size doesn’t fit all, but by taking on board what is right for your business and combining it with your own knowledge and expertise, you can maximise sales and profits while sharing your insight with your own customers.

Interview

3

Sweet Biscuits sponsored by Burton’s Biscuit Co

4–5

Cheese sponsored by Lactalis McLelland

6–7

Rice sponsored by Mars

8–9

Spirits sponsored by Diageo

10–11

Hot Snacking sponsored by Kepak

12–13

RTDs sponsored by Beverage Brands

14–15

Baby Toiletries sponsored by Johnson & Johnson

16–17

‘Partners for Growth’ by Unilever

19–21

Laundry sponsored by Unilever

22–23

Household Cleaners sponsored by Unilever

24–25

Toiletries sponsored by Unilever

26–27

Tea sponsored by Unilever

28–29

Spreads sponsored by Unilever

30–31

Ice Cream sponsored by Unilever

32–33

Pot Snacks sponsored by Unilever

34–35

Table Sauces sponsored by Unilever

36–37

‘Partners for Growth’ by Unilever

38

Energy Drinks sponsored by Red Bull

40–41

Cooking Sauces sponsored by Mars

42–43

Soft Drinks sponsored by Coca-Cola Enterprises

44–45

Dairy sponsored by Kerry Foodservice

46–47

Milkshakes sponsored by Friesland Campina

48–49

Coffee sponsored by Nestlé

50–51

Caribbean Foods sponsored by Grace Kennedy

52–53

OTC sponsored by Johnson & Johnson

54–55

For more information on our Category Partners go to www.cashandcarrymanagement.co.uk

4,555 July 2010–June 2011

Editor Managing Editor

ISSN 1352-254X Cash & Carry Management is available on subscription of £46 per year (single copies £5).

2

Media Sales Manager Business Development Manager Publishing Director

• Cash & Carry Management • February 2012

Mervyn Gilbert Kirsti Sharratt Clare Phillips David Ford Martin Lovell

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

www.cashandcarrymanagement.co.uk

interview

‘Critical for success’ In an interview with Cash & Carry Management, Mark Keeley, trading director – grocery at SPAR UK, discusses what part category management plays in the strategy of the group, whose six wholesalers service more than 2,500 symbol stores.

C&CM: How important is category management to the group and to its retailers?

Keeley: It’s critical. You have to consider brand versus own brand, promotional strategy, pack strategy, product mix and base sales growth strategy. And there are plenty more things to consider. It’s of great importance to both our wholesalers and retailers.

C&CM: To which product sectors do you attach most importance in terms of category management?

Keeley: No one category is more important than another.

Maximising sales and profit is critical in all categories.

‘Advice must be based on compelling, rational and robust information.’

Mark Keeley, trading director, SPAR UK C&CM: Are suppliers generally fair when it comes to planograms and similar information, or are some biased in favour of their own products?

Keeley: In the main, yes, they are fair. However, all suppliers will, if given the chance, want a biased share of space in favour of their own brands.

C&CM: Are there any ways in which you are working to improve category management advice?

C&CM: How receptive are your symbol retailers to advice?

Keeley: Very receptive. But advice must be based on compelling, rational and robust information. That makes all the difference.

Keeley: Yes. Category management means different things to different people. A good place to start is to define in detail exactly what is meant by this, for instance in or out of scope.

In that way measurement is simpler.

Fruit & veg is an important factor in SPAR strategy.

www.cashandcarrymanagement.co.uk

Cash & Carry Management

• February 2012 • 3

Cheese

Leads the Whey

Cheese provides caterers with a wealth of opportunities to introduce new flavours and add a twist to menu staples. Using different varieties of cheese with interesting, distinct flavours and textures can breathe new life into old favourites and set a menu apart from the rest. Chefs are capitalising on the consumer trend for new taste experiences by expanding their cheese repertoire, which presents a category growth opportunity for wholesalers that offer the range that fulfills these needs.

Lactalis, the international dairy group and producers of leading cheese brands including, Galbani®, Président®, Galloway® and Seriously® Strong, has an exciting portfolio of Continental and British cheeses, supplying both the foodservice and retail sectors.

Operator

Consumer Insight Consumer tastes constantly evolve with many developing tastes for international flavours and cuisines. Continental cheese styles and cheese with more mature flavour profiles continue to gain ground in the UK with brands like Galbani® and Président® leading the way as the #1 selling Italian and French soft cheese brands respectively1.

Branded cheese is still performing well with the assurance that it delivers on quality and taste.

Insight

Operators are adapting and developing their recipes to meet the demands of their customers’ discerning palates. Consumer spending on eating out is under constant pressure, so operators need to get repeat business by exceeding expectations. Offering dishes with a greater perceived value and a clear point of difference will do this. The effective use of different types of cheese, and communicating the provenance of quality cheese brands with a point of difference on menus, is a sure way to engage consumers.

Wholesaler Insight Consumer expectation of quality and taste is driving the growth of the branded cheese category and in order to meet the product demands of savvier operators, wholesalers should ensure their cheese category reflects the diversity demanded by their customers. Stocking a varied selection of British and Continental cheese allows you to meet the demands of your business and your customers.

For more information on any products or to get in touch with our dairy experts visit www.lactalisoutofhome.co.uk

Cheddar

Soft Cheese

Cheddar is undoubtedly the UK’s favourite type of cheese and a staple for any wholesaler.

Growth is being seen in the soft mould category, particularly in the Somerset range of Brie and Camembert produced exclusively at the Lubborn Creamery in Somerset. With frequent reference to the origin of ingredients on menus, wholesalers stocking the Somerset range can benefit from operators committed to using British produce.

Whilst the Mild/Medium and Mature categories are both in volume decline at -5% and -6% respectively, consumers’ more discerning tastes are driving growth of Extra Mature and Vintage Cheddar by an impressive 2.3%1. ®

Seriously Strong Cheddar is the #1 brand in the Extra Mature, Vintage and Farmhouse Cheddar category with a market share of 24%1

Fresh Cheese The Galbani® Italian Cheese range, which includes Mascarpone, Ricotta, and Mozzarella, gives wholesalers the opportunity to provide caterers with ingredients that have authentic Italian taste.

Galbani® is the #1 brand in Italy Mozzarella as a category is in 7% volume growth1 and Galbani® Mozzarella enables wholesalers to capitalise on this by offering a wide variety of formats for either cold and hot usage, with varying moisture content to match.

Galbani® Ricotta is soft, creamy and naturally lower in fat than other cheeses, making it a perfect lighter alternative to cream cheese.

Galbani® Mascarpone is made with a unique recipe that gives it an unmistakably sweeter and creamier flavour than others available on the market.

The Lubborn Creamery, makers of the Somerset range, is the #1 producer of soft mould cheese in the UK1

Capricorn®, part of the Lubborn range, is the #1 brand of goat’s cheese in the UK1

Président® is the #1 brand of soft mould cheese1 (Brie and Camembert)

Blue Cheese Wholesalers can add an authentic French or Italian blue to their offering with three very distinctive cheeses from Lactalis. Galbani Dolcelatte® has remained Galbani’s flagship blue cheese in the UK, since its launch in the 1960s. With its soft, creamy texture and its mild taste, Dolcelatte® is unique in the market and exclusive to the Galbani® brand.

For a stronger, richer Italian blue cheese, wholesalers can select Galbani® Gorgonzola, available as Intenso® and Cremoso®. Both have Protected Designation of Origin (PDO) status.

For the iconic and authentic French blue look no further than Société Roquefort. With the strongest and most complex flavour within the blue cheese portfolio, this ‘King of Cheese’ was the first cheese to be accredited with Appellation d’Origine Contrôlée (AOC) status in 1925.

New Portion of Profit The launch of Seriously® Strong Spreadable in retail created an entirely new category with its unique product proposition. Seriously® Strong Spreadable created an appealing point of difference in taste over cream cheese and cheese spreads.

Since launching, it continues to win more and more consumers and has expanded the category with over 60% volume growth YOY1

Seriously® Strong Spreadable portions bring the same great taste to a convenient foodservice format

Sales continue to grow year-on-year Versatile spreadable format

1 Nielsen Grocery Multiples MAT 52w/e 26 November 2011

Source: IRI Independents, 52 w/e 3rd December 2011

INCREASE YOUR SALES WITH THE NO.1 RICE BRAND

Total Rice is now worth over £12.9m in Independents Value Share of Rice exc. Savoury*

Ready to Heat 53.0% Long Grain Loose 16.5%

Wholegrain Loose 0.6% Speciality Loose 4.4%

Basmati Loose 19.5% Boil in Bag 5.9%

Combined, Dolmio® & Uncle Ben’s® provide 44.5% Ready to Heat rice has gained 1.4% value share in 2011 of value sales of Total WCS Value Share of Ready to Heat Rice*

Uncle Ben’s 91.4%

™/®/designs/© Mars 2012

Tilda 3.8% Veetee 3.1% Own Label 1.3% Other 0.3%

Uncle Ben’s® Express is the No.1 Ready to Heat rice brand with 91.4% share of total Ready to Heat rice sales

Price Marked Packs available

Recommended Planogram for Cash & Carry stores

Based on value sales share, at least 50% of rice space should be allocated to Ready to Heat rice

Category Best Sellers 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Uncle Ben’s Express Long Grain 250g Uncle Ben’s Express Basmati 250g Uncle Ben’s Express Egg Fried 250g Uncle Ben’s Express Pilau 250g Uncle Ben’s Long Grain Boil in Bag 250g Tilda Basmati 500g Uncle Ben’s Express Chinese Style 250g Tilda Basmati 1kg Uncle Ben’s Express Golden Vegetable 250g Uncle Ben’s Long Grain 500g

Four easy steps to 1. Range

2. Visibility

Best Sellers1 Vodka Smirnoff Red Label Vodka 70cl Glen’s Vodka 70cl

Cream Liqueurs Baileys Original 70cl Irish Meadow 70cl

Blends Bells Original 70cl The Famous Grouse 70cl

Malts Glenfiddich 12 Yr Old 70cl Laphroaig Malt 10 Yr Old 70cl

Brandy Three Barrels Grape Brandy 70cl Private Label Brandy 70cl

Specialties Southern Comfort 70cl Malibu Coconut 70cl

Gin Gordon’s Gin 70cl Private Label Gin 70cl

Non Cream Jagermeister 70cl Tia Maria 70cl

Imported Whiskey Jack Daniels Tennessee Whiskey 70cl Jameson Irish Whiskey 70cl

White and Golden Rum Bacardi Rum 70cl Captain Morgan’s Spiced Rum 70cl

Cognac Courvoisier Vs 70cl Martell Vs 70cl

Dark Rum Captain Morgan Dark Rum 70cl Lambs Navy Dark Rum 70cl

The right range doesn’t necessarily mean a big range. Too many products make the fixture harder to shop.

Within spirits, retailers are more likely to buy what their customers want (68%) rather than the lowest price (24%).2

93% of retailers know exactly which spirits brands they’re going to buy before entering the depot, so visibility is key.3

Top Tip

Top Tip

Independent shop owners don’t have room for many lines – just the best sellers. Therefore more SKUs do not equal more sales.

Use headers and bus stops to create spirits sub-categories. This will increase interest and improve navigation.

Don’t forget... Innovation is key to growing your business so include emerging new products in your range.

Sources: 1. Nielsen Scantrak data: Total Route to Market and Convenience GB to w/e 24.12.2011. 2. HIM! Cash & Carry Retailer 2010 (sample 385).

3. HIM! Cash & Carry Retailer 2010 (sample 307). 4. HIM! Cash & Carry Retailer 2010 (sample 371). 5. The Nielsen Company ’09 – market £ data.

selling more spirits.

3. Merchandising by Occasion

4. Logical Layout

Own Label

Smirnoff Red Smirnoff Blue

Small

Party Drinks, Energetic

Relaxing EasyGoing Drinks

Vodka White & Golden Rum Speciality e.g Pimm’s

Gin Dark Rum Liqueurs Cream Liqueurs

Mellow, Sophisticated, Classic Drinks Brandy & Cognac Imported Whisky Blended Whisky Malt Whisky

Large Good

Better

Best

Retailers purchase spirits by type and occasion. A logical flow ensures they can easily find what they want. 10% of retailers who failed to purchase an item in a C&C did so because they couldn’t find it.4

Laying the fixture out logically means your customers will easily locate what they want and are more likely to make a purchase.

Top Tip

Top Tip

Group together sub categories that share the same drinking occasion, such as Vodka and White Rum.

Follow similar layout principles to the supermarkets, by grouping spirits out into Value, Standard, and Premium.

This provides a clear ‘trade up’ ladder.

HOT SNACKING PROVIDES A

Cash and carry depots are reaping the rewards of a sustained drive by Kepak Convenience Foods to highlight the profits that can be made in the £105 million*1 hot snacking market.

Kepak’s Regional Account Managers have been working with depots to show the impact that stocking the correct range, improved product visibility and simple but effective POS can achieve.

Kepak is also urging depots to educate and advise retailers on how they can develop effective displays in their stores, to complement the wide-ranging work that Kepak does in this area.

Kepak’s work with retailers is increasing demand significantly for hot snacking products. Jazz Singh, store manager at Morley News Food & Wine in Leeds, has worked closely with Kepak’s Regional Account Manager, Adam Nowakowski, sourcing products from his local cash and carry depot. Jazz commented: “Kepak helped me to re-merchandise the food to go area of the shop, helping to take it from a few basic products to a very popular, well-stocked fixture, offering customers a successful range of products.

“

EDLP

1 in 5 people buy hot snacking products.*1

MUST STOCK LINES

A range of quick & easy microwavable snacks targeted at young males.

WORTH: £65 MILLION – GROWING 22%

*1

A range of delicious Hot Subs sandwiches targeted at 16-24 year old males & females.

WORTH: £10 MILLION IN THE FIRST YEAR

1

Giving customers the opportunity to heat the products in store boosted sales, as did the branded shelf trays,” Jazz added: “We also sell coffee, which works well alongside the hot snacking offer. Since working with Kepak, sales have gone through the roof.”

A range of Hot Wraps perfect for eating on-the-go

The project comes as Kepak continues to work with cash and carry depots on effective product merchandising, high impact point of sale, correct range stocking and appropriate space for new products.

A range of deli delicious lunchtime solutions, targeted at working adults.

WORTH: £10 MILLION – GROWING 3%

*1

Source: *1 Nielsen Scantrack 24/12/11, *2 Nielsen Homescan 24/12/11, *3 HIM CTP 2011, *4 Retailer Data, *5 Nielsen Impulse May 2010

STRONG PROFIT OPPORTUNITY

1.

2.

3.

4.

1

ENSURE YOU STOCK THE RIGHT RANGE

2

STOCK PRICE MARK PACKS WHERE POSSIBLE

5.

6.

» 1/3 of shoppers will be encouraged to buy a product because it is price marked*4 » 41% of shoppers want clearer pricing*4

INCREASE VISIBILITY & AVAILABILITY » On average shoppers only spend 4 minutes instore » Visibility is key » Kepak branded shelf trays are a proven success, increasing sales by 55% = £ 885 per store*4

4

RE 2 UR A 1 O DS 20 AN IN BR TV N O

3

INSTALL A KEPAK BRANDED MICROWAVE » It has been proven to increase sales by as much as 200%*4 » Buy a branded microwave for £140 excluding VAT. » Contact R H Hall on 01296 663 400

For further details or FREE POS please call the Kepak team on 01772 688 300

OR VISIT OUR NEW WEBSITE! www.kepaktrade.co.uk

1

1

1

2

3

‘Parfetts are grateful for Beverage Brands’ support regarding the RTD category.

After detailed collaboration and mutually agreeable changes regarding the relay, we are happy with the result.’

Greg Suszczenia Trading Director, Parfetts Group

Beverage Brands is a member of The Portman Group promoting responsible drinking.

1. Nielsen Scantrack: Impulse RTDs Value % share by pack category MAT to 26.11.11.

2. Nielsen Scantrack: Impulse RTD Category Value Sales (£) MAT to 26.11.11, Retail Newsagent & Retail Express publications.

3. Nielsen Scantrack: Impulse RTD Category Value Sales (£) MAT to 26.11.11.

Birth rate highest since 1973 We are in a baby boom in the UK. With the economy still in recession this is predicted to continue with the number of 0-2 year olds rising by 3.4% by 2014. Therefore Baby will continue to be a key category for the next 4 years.*

*Office National Statistics 2009

Total Baby Trends The total baby category is currently worth £1.4bn (excl. Toddler) and is growing at +4.2% Value YOY. The growth is driven by Baby Milk and Baby Food.

Total Branded Baby Wipes

Baby Wipes

JOHNSON’S® Baby has a value share of 22%, equal with Pampers, with Huggies at 15% value share.

Value Performance, Total Coverage 53 w/e 26 Nov,11

25.0%

% Value Share

Baby wipes is currently worth £198.8m and is growing +2.0 % YOY.

IRI 52 w/e 3rd Dec,11.

-6.3%

-3.5%

20.0%

22.2%

15.0% 10.0% 5.0% 0.0%

16.5% ®

JOHNSON’S Baby

Pampers

Value Share

Huggies

Simple

% Chg

Recommended Range - Baby Wipes Rank 1 JOHNSON’S® Baby Skincare singles 64ct Baby Wipes 2 Pampers sensitive 56ct Baby wipes IRI 52 w/e 26 Nov, 11

Baby Toiletries Baby Toiletries is currently worth £91.8m and flat at 0.0% value growth YOY. JOHNSONS® Baby is the largest Baby Toiletries brand with 55% value share worth £50.5m.

Nappy Cream is in growth with the biggest Value share (25.5%) Bath remains a key category with 18.6% value share.

Total Toiletries by Segment (excl. Toddler) Value Performance, IRI 52 w/e 26 Nov, 11

30.0%

5.9% 25.0%

2.0%

% Value Share

20.0%

15.0%

-1.2% 10.0%

+2.5%

- 0.4%

-1.7% -8.4%

5.0%

-9.4%

-30.9%

-8.3%

0.0% Nappy Creams

Bath (Excl Toddler)

Haircare (Excl Toddler)

Powder

Oil

Baby Multi Milks/ Purpose Lotions (excl Toddler)

Value Share

Cream (Excl Toddler)

Mixed Packs

Soap (Excl Toddler)

% Chg

Own Label

-2.8% 14.0%

Recommended Range - Baby Toiletries Rank 1 2 3 4 5 6 7

Sudocrem

55.0%

®

JOHNSON’S Baby Bath Sudocrem Nappy Cream JOHNSON’S® Baby Gold Shampoo JOHNSON’S® Baby Lotion JOHNSON’S® Baby Powder JOHNSON’S® Baby Oil JOHNSON’S® Baby Cotton Buds

JOHNSON’S® Baby -0.6%

0.9% 13.0% Others

-3.7%

8.0%

Bepanthen

15.9%

8.0% Infacare

-7.3%

2%

All Data based on IRI Data 52 w/e 26 Nov, 11

Merchandising recommendations Nappy Cream Lotion

Bath

Haircar Hair care e Powder

Oil

Cotton Nappies

Wipes

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

www.cashandcarrymanagement.co.uk

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

Cash & Carry Management’s Top 25 Suppliers awards for 2012 begin soon Will you make the shortlist?

2011 AWARDS winners, pictured at Dorney Lake, Windsor

the wholesaler’s handbook category advice from Partners for Growth and leading wholesalers

Richard Booth

David Warren

Stuart Harrison

Darren Pugh

Monty Wouhra

Chris Smith

Bestway

Landmark Wholesale Ltd

Today’s Group

East End Foods PLC

JW Filshill

Bestway

Winner of “Best Merchandising Advice” 2007, 2008, 2009, 2010, 2011

Denys Short DCS

Bobby Gill

United Wholesale Scotland Ltd

Award winni advice from

P

artners for Growth was established in 2003 to provide unbiased category information to convenience retailers,

to enable them to maximise their sales. The principle of the programme has always been one of partnership – we provide the advice freely so that the convenience sector has every opportunity to flourish. By producing this supplement we are hoping to support the other key partnerships that exist; particularly those between wholesaler & retailer, and retailer & customer.

“Partners for Growth has been providing independent and unbiased advice for retailers for more than nine years.

This booklet contains the latest market information and advice, with comment and insights from industry experts.

I urge you to make the most of it” Tom Hazelden Partners for Growth Controller and Retail Execution Manager, C-Sector, Unilever UK

How advice from Partners for Growth can help grow your business Whether it’s finding out what the best sellers are by category, or understanding how your store location and shopper profile affects your range selection, Partners for Growth can help. With valuable insights about category specific issues, you can ensure you have the right offering for your customers. For example, stores with an older shopper profile may well find that smaller pack formats sell best as they are easier to carry home.

Using national sales data to maximise sales The Partners for Growth best sellers lists are compiled from national data to show the fastest selling products in the UK, i.e. the shopper’s favourites. From this data, Unilever’s category experts have developed category fair shelf layouts which, through in-store trials, have been shown to deliver improved category returns. Stocking products which are the best sellers makes sense as these are most in demand.

Award winning advice Partners for Growth has won the prestigious Cash & Carry Management “Best Merchandising Advice” award for the last five years, so it’s clearly valued just as highly by the wholesale trade as it is by retailers.

ng business the experts Business advice from our Retailer Advisory Panel The Retailer Advisory Panel introduced 2009 has enabled Partners for Growth to offer broader

“Supply chain partnerships are the key to success in this sector, and Partners for Growth is a great example of how suppliers, wholesalers and retailers can work together for their mutal benefit.”

James Bielby Federation of Wholesale Distributors

business insights and advice for convenience retailers. Made up of successful award-winning convenience retailers, the Panel meets quarterly to discuss issues that affect you and your business, such as theft and maximising seasonal sales. Visit partnersforgrowth.unilever.com to read more about

Cont ontents ents

the Advisory Panel members, watch videos

laundry page 4

household cleaners page 6

toiletries

page 8

tea te a

page 10

Retailer Advisory Advisory Panel Panel

spreads spr eads

page 12

of the discussions and put a question to them for discussion at a forthcoming meeting.

I hope that you find this supplement useful – and if you are looking for more insights or different

ice ic e cream cream

page 14

planogram sizes, please visit the website for more information.

Wishing you a successful 2012

Tom Hazleden Partners for Growth Controller and Retail Execution Manager, C-Sector, Unilever UK

pot snacks page 16

table sauces sauces

page 18

laundry a wholesaler’s view David Warren Trading Controller, Today’s Group

“

spend a few min laundry fixture an cattegory expert ca expert’’s view view

The category has had an excellent year to October with figures of + 60.3% Sterling and 39.5% volume

within the group. This category showed excellent growth in 2010 - exceeding double digit growth but 2011 was an exceptional year. Powder is still a

“Powders are “Po are the larges largestt sector sector of the market, market, acc ac counting for 39% of sales value alue.. Ho How wever er,, shoppers hav ha ve been quick to to adopt the new new forma formats, ts, with conc oncentr entra ated liquids (including gels) gels) experiencing experiencing a 44% gro growth in value value compar compared ed to to last last year year,, now now with 25% value value share share of the market market . Yet Yet shoppers often often fail to to find these products products in their local con conv venienc enience e stor ore e. Whilst Whilst these can requir require e a higher initial outlay outlay from fr om the retailer retailer,, these new new forma formats ts are are driving the value in the market, market, so it’ it’s important that that retailers retailers stock a range range to to meet their shoppers’ needs.” needs.”

1

major contributor in the independent sector, but liquids and gels are also performing well and growing their share of the market. The Group is lucky enough to have some specialist players within

advice fr advice from om the retailer advisory panel

the membership and, although the core business has been good, it is these members who have driven the sales forward.

There are a number of major events planned for 2012 – the Olympics, Euro football, the Queen’s Golden Jubilee etc – some of which offer opportunities for seasonal support. However, Spring cleaning is still a vital sales period for this category and wholesalers should ensure they

Consumers often often look for for the best best deal and, whilst whilst they the y acc accept that that they they may may pay pay a premium premium for for the con onv venienc enience e of shopping locally, locally, they they are are less less inclined to to do this on large large items items such as laundry products. pr oducts. Price Price marked marked packs offer offer an opportunity to reas reassur sure e cust customers that that they they are are getting good value alue,, as well well as the con conv venienc enience e.

encourage retailers to take full advantage of this through promotions, in depot displays etc.

As well as our Plan for Profit programme which offers advice to retailers, we always advise them to

rec ecommended ommended 2 b

call on the experience of others outside the group for additional support. Partners for Growth gives

Stain removers & special wash

convenience retailers expert advice on what lines

“

should be carried and how they can maximise the sales and profit opportunities.

Liquid

Gel

The wholesalers within the group are continually

Capsules

growing and learning, working closely with key suppliers through the Today’s Group’s member support centre which has a proven track record and one that will continue to help and support its members.

4

Tablets Powders

1. IRI 52 52 w/ w/e 24 24 Dec 2011.

2011.

nutes on your nd you’ll clean up!

laundry best sellers

1

powder Persil Non Bio 10 wash Ariel Bio 800g Surf Tropical 10 wash Daz 680g

liquid Persil Small & Mighty Non Bio 630ml Surf Small & Mighty Tropical 630ml

gel Ariel Bio 16 wash Fairy Non Bio 16 wash

tablet Persil Non Bio 9 wash

capsule Persil Non Bio 10 wash Ariel Bio 12 wash

fabric conditioner

key facts and tips Offer a product for each wash stage, ie prewash treatment, main wash and conditioning Stock a choice of different formats – powder, gel, capsules etc – as some shoppers will swap fragrance but not format Fragrance is an important factor to shoppers so ensure your range features some products which meet this need It can be difficult for shoppers to see which product does what, so keep detergents together, fabric conditioners together etc

Comfort Blue Skies 750ml Comfort Pure 750ml Lenor Spring Awakening 750ml Lenor Summer Breeze 750ml

wash treatment Vanish Oxi Action Multi Stain Remover 500g

recommended one-shelf retail layout Wash Aid

Powder

Tablet

Liquid

Fabric Conditioner

Include a non-bio product to ensure that someone looking for a product for sensitive skin can make a purchase

recommended two-shelf retail layout

ay wholesale layout

Wash Aid

Capsules

Liquid

Fabric Conditioner

Fabric Conditioner Powder

Tablet

Gel

Powders

for more planograms visit our website For more planograms visit our website 5

household cleaners a wholesaler’s view Denys Shortt Chairman & CEO, DCS Europe

“

clean up your ho and increase profi category expert’s view

At DCS we have seen a 5% increase in distribution in the Household category, an improvement on the

2010 performance despite the difficult market trading conditions. Within the Household category, Surface and Specialist Cleaning and Dishwash sectors all performed well.

We regularly review the range we carry, focusing on

“The household category has seen extensive product innovation over recent years. This has created important sales opportunities but also, for many retailers, uncertainty about which products to stock and how to merchandise them, particularly where space is at a premium.

Washing up and bleach are among the biggest sellers, so make sure they have the most space to ensure availability and avoid out-of-stocks.

Antibacterial is one of the fastest growing segments and wipes are often purchased in addition to other household cleaners, so can provide a growth opportunity for retailers.”

key sellers and removing poor performing ranges or products when necessary. It makes sense for our customers to do the same, keeping abreast of new market place trends and opportunities so they can

advice from the retailer advisory panel

meet their customers’ needs. As convenience retailers have limited shelf space available, they need to ensure their ranges work hard for them and therefore category management is very important.

We find that the key products in each category are the brand leaders and household names, as many convenience store purchases of household products are distress in nature, therefore customers expect to see brands they are familiar with on shelf and are

Group your household products ‘by room’ as this makes it easier for shoppers to find what they are looking for. Stick to the core cleaning areas, such as bleach, toilet cleaners, dishwashing products, and stock the best sellers in each sector to avoid slow sellers sitting on the shelf for months.

less concerned with price.

Retailers should also be aware of seasonal opportunities in the household category. Spring is

recommended 5 b

“

always a busy time for Home Cleaning – sales pick up as the weather improves through Spring into

Summer. The multiples are very good at capitalising

Specialist

Toilet Rim Blocks

drain unblocker, descalers, anti-limescale, mould & mildew

Toilet cleaner

Wipes

Disinfectant

Kitchen cleaner

on seasonal changes, so it’s important for

convenience retailers, with the support of their wholesale partner, to plan their ranges accordingly to remain competitive.

6

Multip

Bathroom cleaner Bleach Window cleaner

1. IRI 52 w/e 24 Dec 11.

Floor/ clea

ousehold fixture its by a tidy 15%

household cleaners best sellers

1

bleach Domestos Bleach Original Blue 750ml

toilet Toilet Duck 4 in 1 Active Fresh 750ml Harpic 3 in 1 Power Rim Block Lavender

bathroom Flash Guard Bathroom Spray 500ml

kitchen Mr Muscle Kitchen Cleaner Lemon 500ml Flash Guard Spray plus Bleach 500ml

multi purpose Flash One for All Multi Purpose Liquid 500ml Dettol Anti Bacterial Surface Cleanser 500ml Cif Cream Lemon 500ml Dettol Anti Bacterial Surface Wipes

specialist Mr Muscle Sink and Plughole Unblocker 500ml Mr Muscle Oven Cleaner Spray Vanish Oxi Action Carpet Cleaner Spray 500ml Pledge Classic 300ml Glade Magnolia and Vanilla Air Freshener

key facts and tips

Dettol Liquid 250ml

dishwash

Divide household products into areas of the home

Finish Dishwasher Tablets

Well known brands attract customers as these are what they have seen on TV or in supermarkets

Finish Rinse Aid

Where possible stock price marked versions of the best selling products as these offer shoppers reassurance that they are getting good value for money

Fairy Original Washing Up Liquid

recommended one-shelf retail layout Bleach Toilet

Multi-purpose

Specialst

Dishwash

Polish & Aircare

Put cleaning tools such as cloths and sponges next to items they will be used with, to gain incremental sales

recommended two-shelf retail layout Specialist

Kitchen

Dishwash

ay wholesale layout

Polish & Aircare

RETAILER wuL 500ml

purpose Bleach

Dishwash

Toilet

Disin- Bathfectant room

Multi-purpose

Aircare o/L bLEAch cITRus 750ml

/carpet aner

for more planograms visit our website 7

toiletries a wholesaler’s view Stuart Harrison Senior Grocery Buyer, JW Filshill, Glasgow

“

freshen-up your and you could c category expert’s view

2011 was a good year for our toiletries category showing year on year growth of 12%. This growth was

generated by a real focus on stocking the core range. Sharing data with our suppliers, utilising our internal business intelligence system and, with the aid of Partners for Growth, we have identified what

“The best range for convenience is one which features the top two or three products in each of the main subsections of toiletries, ie deos, haircare, skincare, shower, lipcare, bath etc. This type of selection will meet the maximum number of shopper needs and thereby maximise your sales.

Top up purchases form a large part of sales, so simplicity and visibility are key to a successful toiletries fixture, enabling shoppers to find what they want quickly and easily. As awareness can be low, and purchase is on impulse, retailers need to let their customers know that they stock toiletries.”

that optimum range should be.

There have been a couple of outstanding performers in the past 12 months with hair care and deodorants leading the way. The convenience retail market is an excellent place for consumers to purchase branded toiletries; increased visibility in store has resulted in category growth.

We continuously monitor all categories on a monthly basis which allows us to make tactical alterations to ensure that the range is performing well within the market trends. Everything we do at Filshill focuses on the consumer and we are quick

advice from the retailer advisory panel Keep an eye out for promotional opportunities such as a Fathers’ Day, Mothers’ Day etc. and create in-store displays to prompt purchase of appropriate toiletries.

Use POS to advertise your range and, if it’s necessary to keep high value products behind the counter, then ensure empty packs or a simple visual prompt of these products are positioned at the fixture.

to embrace NPD and identifying products that are performing well within the category. Above the line marketing support always helps!

recommended 2 b

We see that there are opportunities to build on the seasonality of toiletries. Whilst perhaps not immediately obvious in a category such as

Male Grooming

“

toiletries, which have a significant element of

‘everyday’ use, there are also occasions such as

Male Deos

Father’s Day and Christmas for which we can look

to off-shelf displays or introducing gift packs to the

range. One thing to bear in mind is that January is a relatively quiet time for toiletries – everyone’s had quite enough ‘smellies’ over Christmas!

8

Dental

Soap

Bath & Shower Bath & Shower

1. IRI 52 w/e 24 Dec 2011.

toiletries fixture lean-up

toiletries best best sellers

1

deos & bodysprays Lynx Africa 150ml (deodorant) Sure for Men Active 150ml Sure for Men Invisible Ice 150ml Lynx Africa 150ml (bodyspray) Sure Crystal 150ml Sure Cotton Fresh 150ml Dove Original 150ml Dove Invisible 150ml Impulse Tease 75ml Impulse Hint of Musk 75ml shampoo & conditioner Head & Shoulders Classic Clean 2 In 1 250ml Pantene Smooth & Sleek 250ml (shampoo) Pantene Smooth & Sleek 200ml (conditioner) hair styling V05 Mega Hold Styling Gel Elvive Styliste Non Stop Volume Mousse Silvikrin Maximum Hold Hairspray soap, bath & shower Lynx Africa 250ml (shower) Radox Active 250ml (shower)

Stick to to well well known known brands brands as these will attr ttract act shoppers Use the best best seller list list to to identify fas fastt selling products products so you you don’t tie up cash on-shelf for for too too long Keep men’s men’s products products together together so that that they they are ar e easy easy to to find, if they they can’t find what what they they are ar e looking for the they y will lea leav ve empty handed

Radox Herbal Bath Muscle Soak 500ml Dove Beauty Cream Bar 100g Carex Original 250ml skin, hands & lips Vaseline Healthy Hand & Nail Lotion 75ml E45 Dry Skin Treatment 50g Vaseline Essential Moisture Lotion 200ml Nivea Soft 200ml Vaseline Lip Therapy

rec ecommended ommended one-shelf retail retail lay layout Shaving

Men’s toiletries

Dental

Female deos

Skin care

Shampoo & Conditioner

Make sure Make sure that that shoppers know know you you sell toiletries by by putting them in a highly visible area area of the st stor ores es or by by using PoS PoS to attr attract act att attention ention

Radox Moisturise 250ml (shower)

Bath & Shower

key facts facts and tips

DENTA L

ay wholesale lay layout

rec ecommended ommended two-shelf two-shelf retail retail lay layout

Skin Care

Shaving

Female Deos

SHAVIN G

Men’s toiletries

Female deos & bodyspray

Skin care

Hair Wash Hair Wash

Hair Styling

Soap, bath & shower

Shampoo & conditioner

Hair styling

Dental

Dental Fem Care

for more more planograms planograms visit our websit website e 9

tea a wholesaler’s view Richard Booth Senior Negotiator, Bestway

“

how to bag even from the nation’s category expert’s view “Tea is consumed by 89% of households and is a key distress and top-up item in convenience stores.

Normal tea represents 78% of sales, so focus on this area primarily. However, tea tastes have evolved in recent years, with many people introducing fruit & herbal, specialty or green tea into their repertoire.

These also offer a growth opportunity as they are usually bought in addition to normal tea or coffee rather than as an alternative. A successful tea fixture should reflect these changes, with the best selling lines faced proportional to store size and location.”

1

2

The tea category has performed well for us at Bestway with a 7% value increase and a volume increase of 1%,

an improvement on the 2010 performance. The increases can be attributed to growth in premium brands such as Twinings and Taylors of Harrogate, both of which having seen double digit growth in 2011 as consumers become more discerning about their tea choices. Other sectors which have been performing well include herbals, such as Twinings Herbal Infusions, Lipton’s fruit and herbals and Premium Tea such as Yorkshire Tea.

advice from the retailer advisory panel

Price marked packs continue to be a wise choice for retailers, with Tetley Green 20s £1 PMP being a top seller for us. We are looking to continue to offer our customers price marked packs through 2012 as we see that ensuring shoppers are reassured of value will continue to be important for retailers. We will also continue to offer choice in the speciality teas, including decaffeinated tea

Tea shoppers are very brand loyal and we find that shoppers would rather buy a bigger pack size of their usual brand than swap to an alternative brand.

This presents an opportunity to encourage shoppers to trade up into bigger packs by focusing on offering a smaller range of best selling brands in bigger packs rather than a wide variety of brands in smaller pack sizes.

which should be a regular part of all retailers’ tea category.

Tea is an important category for our customers and as a wholesaler we want to support our retail

recommended 2 ba

“

customers as much as possible to drive sales.

Bestway run regular promotions and produce a wide range of point of sale, so retailers can maximise their own sales in store.

Normal Tea O/L & Entry Level Brands (e.g.

Typhoo) Merchandised by Brand then flavour

Tea tastes vary by region and also by shopper profile so we stock a broad and tailored range by region so that our retailers can meet their customers’ needs.

10

Normal Tea Normal Tea Tetley (Merchandised by pack size)

1. Kantar 52 w/e 24 Dec 11. 2. IRI 52 w/e 24 Dec 11.

PG Tips (Merchandised by pack size)

bigger earnings favourite drink

tea best sellers

2

normal tea PG Tips 80’s Tetley 80’s PG Tips 40’s Tetley 40’s Yorkshire 80’s Tetley Decaf 80’s

speciality Twinings Earl Grey 50’s Twinings English Breakfast 50’s

fruit & herbal Twinings Peppermint 20’s

recommended two-shelf retail layout Normal

Speciality

Green

Fruit & Herbal

key facts and tips Normal tea is almost 80% of all tea sales so ensure that you give this sufficient space to avoid out of stocks Tea shoppers are brand loyal and would rather choose a larger pack size of their brand than switch to an alternative Fruit and herbal teas are a growth opportunity as they are usually bought in addition to normal tea Stock tea next to products like sugar and biscuits to encourage incremental sales

Normal Retailer Choice

recommended three-shelf retail layout Decaf

ay wholesale layout

Speciality Green

Fruit & Herbal

Normal

Green Tea

Speciality Tea (Merchandised by brand then flavour)

(Merchandised by brand then flavour)

Normal Normal Tea Yorkshire & Twinings (Merchandised by brand then flavour, then pack size)

Decaf Tea (Merchandised by Brand)

Fruit & Herbal Tea (Merchandised by brand then flavour)

Retailer Choice

Fruit & Herbal Tea (Merchandised by brand then flavour)

for more planograms visit our website 11

spreads a wholesaler’s view Chris Smith Chilled Food Negotiator, Bestway Wholesale Group

“

get a 40% bigge from your sprea cattegory expert ca expert’’s view view “In con conv venienc enience e, the Butters Butters and Margarines Margarines market market is worth worth £135.6m £135.6m and, as butters, butters, spreads spreads and margarines mar garines are are used by by 99% of households , it is a very valuable valuable cat category for for con conv venienc enience e retailers. retailers.

1

2

Spreads performed well in 2011, with increased sales on 2010, and have helped to drive growth throughout

the Chilled Foods department at Bestway. Buttery spreads have performed well as consumers trade down from the more expensive butter blocks and spreadable butter. All depots in the Bestway and

Butters and Margarines Butters Margarines are are a kitchen kitchen essential, essential, with a high proportion proportion of ‘need it now’ now’ purchases purchases where where consumers hav have run out and need to to st stock up quickly for for packed packed lunches or baking. An amazing 90% of shoppers already already know know what what brand brand of butter butter or margarine margarine they they want want befor before e they they set foot foot inside the st stor ore e, so st stocking the best best sellers is ke key.”

Batley group place a high priority on ensuring there is always excellent availability of Buttery spreads alongside the more traditional spreads so that our customers can meet their shoppers’ changing requirements.

Best practice in depot is when the sub sectors in

advice fr advice from om the retailer advisory panel

spreads are clearly delineated, so that the retailer can shop quickly and easily. Offering value and availability is the obvious route to success and these are things we strive to achieve. Wholesalers can improve their offering by making their Chilled and Fresh departments more inviting and easier to shop for retailers.

Shoppers choose which type of spread spread they they buy, buy, i.e i.e. butter butt er,, healthy healthy spreads, spreads, acc accor ording ding to to their attitudes attitudes to tast taste and health. It is vital that that the brands brands you you offer off er reflect reflect the breadth breadth of your your shoppers’ tast tastes.

Sticking to to a tight range range of the most most popular brands brands and forma formats ts acros acrosss the four four product product groups groups will bring succ succes esss to to this cat category egory..

The Partners for Growth suggestions and insight is very useful for ourselves and retailers alike. The Chilled and Fresh food department are important areas for growth, so taking advantage of their merchandising plans will manifest itself in improved sales.

rec ecommended ommended 2 b

“

There is limited seasonality on spreads however there is a move towards the healthy and lighter

variants in January and the baking spreads in the

Block Butter

cold weather. Products that are linked to the

Queen’s Jubilee, the European Football tournament or the Olympics should all perform well during the spring and summer months this year.

12

Spreadable Butter

1. IRI 52 52 w/ w/e 24th 24th Dec 2011.

2011. 2. Kantar Kantar 52 52 w/ w/e 24th 24th Dec 2011.

2011.

r slice of profit ds fixture

spreads best sellers

2

butter Lurpak Spreadable 250g Lurpak Lighter Slightly Salted Spreadable 250g Lurpak Slightly Salted 250g Anchor Butter 250g

buttery spreads Clover 500g Utterly Butterly 500g I Can’t Believe It’s Not Butter 500g

health Flora Original 500g Flora Light 500g Flora Buttery 500g Bertolli 500g

key facts and tips Stock the most popular brands and formats Make it easy for customers to find the products they want by grouping relevant products together, ie butter, buttery spreads, spreadable butter, healthy spreads, baking

baking Stork Tub 500g

recommended one-shelf retail layout Butter

Buttery Spreads

Keep chillers full and clean at all times

Health

Baking

Butters and margarines are often purchased when browsing for other items so use visual reminders like point of sale or promotions to encourage purchase

recommended two-shelf retail layout

ay wholesale layout

Retailer Baking Choice

Health

Baking

Buttery Spreads

Butter

Buttery Spreads

Health

for more planograms visit our website 13

ice cream a wholesaler’s view Monty Wouhra Director, East End Foods PLC

“

follow this advice ice cream sales b category expert’s view

The Ice Cream category was up 14% in 2011 and outperformed other frozen desserts in our depots. The

uplift was due to broadening our price-marked three and four pack offering and also to independent retailers making moves to capture some of the

“With major events such as the Jubilee and the Olympics attracting more Brits and overseas visitors to holiday in the UK in 2012 it is predicted that adult and premium ice cream brands will continue to grow. Retailers need to highlight to passing trade the fact that they sell ice cream by using pavement signs, flags and waste bins outside the store. These will attract impulse purchases as well as those already looking for an ice cream. Best sellers lists should be used to identify key products that will meet shoppers’ expectations.”

multiples’ market. However, the Frozen sector as a whole was 28% up year on year so there is still plenty of opportunity for growth for Ice Cream.

We try to encourage retailers to get their ice cream range ready at the beginning of the season by passing on multi-buy deals which we get from suppliers before Easter. We also see opportunities in encouraging retailers to increase take-home sales. We offer a good mix from all the categories but we need to recognise that space limitations mean that most retailers are restricted in their offering - the range offered by suppliers is extensive and we must focus primarily on the best sellers across the 500ml, 1ltr and 2ltr SKUs. We

advice from the retailer advisory panel Keep your ice cream cabinet clean, uncluttered and regularly defrosted, as shoppers are easily put off by dirty ice cream freezers. Make sure you maximise your sales and give the best possible impression by cleaning yours at least once a year. Stock multipacks of ice cream separately with frozen desserts so they don’t detract from individual purchases.

think it is important to work closely with suppliers to achieve the best range and a strong promotional package which will help achieve our growth targets.

NPD is even stronger this year and we expect good volume growth to come from these new variants as

recommended

“

they drive interest and dynamism in the category.

In depot, we will also be highlighting to our

retailers the opportunities for volume growth

through promotions during the Olympics and the

Filled Cones

Queen’s Jubilee and encourage them to stock up during these key events to capitalise on the increased number of celebratory events.

14

Choc S

Kids

1. Project Sunrise. 2. IRI 52 w/e 24 Dec 2011.

and grow your by a cool 135%

ice cream best sellers

2

filled cones Wall’s Cornetto Strawberry Cadbury’s Flake 99 choc snacks Wall’s Magnum Classic Wall’s Magnum While Wall’s Feast Wall’s Magnum Double Caramel Crunchie Blast Mars King Size

Children’s Wall’s Twister Wall’s Callipo Smarties Pop Up

key facts and tips Make sure your freezer is near the till with other impulse items such as confectionery Upgrading your freezer to a modern, eye-catching design can result in a 42% increase in sales 1

Use freezer display boards, basket labels and cabinet stickers to make your cabinet stand out and always show the price clearly

Adult Refreshment Wall’s Solero Exotic

recommended layout for slimline maxivision 12 basket cabinet Filled Cones

Choc Snacks

Try to keep to ‘one product, one basket’ where possible as 1 in 10 customers will walk away from a cluttered, confusing freezer so that’s an immediate lost sale

Choc Snacks

wholesale layout Choc Snacks

Children’s

Adult

Snacks

Adult Refreshment

for more planograms visit our website 15

pot snacks a wholesaler’s view Bobby Gill Senior Buyer, United Wholesale Scotland Ltd

“

follow our advice more profit from cattegory expert ca expert’’s view view “The Pot “The Pot Snacks total total market market is worth worth £115m, gro gr owing at at 13% . During the rec reces ession, sion, consumers consumers are are choosing Pot Pot Snacks as a con conv venient and low low cos costt lunchtime option. In fact, fact, 58% of Pot Pot Snacks are are consumed at at lunchtime and are are often often eat eaten ‘on ‘on the go’ with a soft drink, making it a valuable valuable cat category to to retailers where where lunchtime trade trade is high.

1

2

There were buoyant sales of Pot Snacks in 2011, up 25% on 2010, which made it a very good year indeed on

both the cash & carry and the retail club sides of the business.

These gains were, in part, driven by the economic climate, with shoppers looking for a great value

Impulse sales are are high because Pot Pot Snacks are are a quick and con conv venient hot snack option and can be consumed either out of home - for for ex example in offices offices and work work places places such as building sites sites - or in home as a quick bite bite to to eat. eat.””

snack to fill up on, and also partly due to a number of new initiatives and linked deals which we created throughout the year. We offered linked promotions to our members connecting products which are commonly bought together in convenience, such as Pot Noodle, Peperami and energy drinks. These proved to be very successful, and are something which we will be looking to continue to build on in 2012.

advice fr advice from om the retailer advisory panel Visibility is the ke key fact factor or in maximising your your Pot Pot Snack sales as 82% of sales are are the result result of an impulse buy. buy. St Stocking Pot Pot Snacks next next to to other impulse items items such as crisps and soft drinks can increase incr ease your your sales by by 36% , so mov move them here here and you’ll gro grow your your Pot Pot Snacks sales.

3

Value for money is the key factor in the Pot Snacks category, and this has a far greater effect than any seasonality in this category. This year will be a very tough year, with consumers potentially changing their eating habits to make savings. Even though

4

consumers are very brand loyal in this category, Pot Snacks can be very price sensitive, with even small price increases putting customers off. Price marked packs work well as they demonstrate transparency

rec ecommended ommended 2 b

to the consumer and give them confidence in their

“

purchase.

We offer category management advice to the

Pot Noodle Southern Fried Chicken

Pot Noodle

Pot Noodle

Sweet & Spicy

Tikka Masala

retailers in our symbol group, and see that it is a

very important tool for retailers to maximise their profits. Our focus is ‘less is more’ ….. offer less choice but focus on the big brands, as a tight range is the most effective route to success in convenience.

16

King Pot Noodle

Pot Noodle

Chicken & Mushroom

Bombay Bad Boy

Pot Noodle Chicken & Mushroom

1. IRI 52 52 w/ w/e 24 24 Dec 2011.

2011. 2. Kantar Kantar 52 52 w/ w/e 24 24 Dec 2011.

2011. 3. RMS. 4. HIM Pot Pot Snack

and make oodles pot snacks

pot snacks best sellers

1

Pot Noodle Chicken & Mushroom Pot Noodle Original Curry Pot Noodle Beef & Tomato King Pot Noodle Chicken & Mushroom Pot Noodle Bombay Bad Boy Pot Noodle Chow Mein

recommended two-shelf retail layout Pot Snacks

key facts and tips

Pot Snacks

82% of pot snacks are bought on impulse so place them somewhere visible to prompt shoppers to buy them 5

70% of shoppers buy pot snacks with crisps or soft drinks so put them together in store, or put up point of sale to encourage purchase

recommended three-shelf retail layout

To increase visibility, avoid single facings and keep the fixture well stocked

Pot Snacks

Flavours are important so make sure you give space to the best selling variants Offering hot water can increase sales as shoppers can buy to ‘eat now’

Pot Snacks

ay wholesale layout Uncle Bens Rice Time

Uncle Bens Rice Time

Dolmio Pastavita Fusilli

Tikka Masala 300g

Sweet & Sour 300g

Bolognese 300g

Pot Noodle

Pot Noodle

Pot Noodle

Chow Mein

Sticky Rib

Sweet & Sour

King Pot Noodle

King Pot Noodle

Curry

Beef & Tomato

Pot Noodle

Pot Noodle

Curry

Beef & Tomato

Study. 5. RMS.

Pot Snacks

for more planograms visit our website 17

table sauces a wholesaler’s view Darren Pugh Trading Controller Landmark Wholesale Ltd

“

squeeze 25% mor sauces, dressing cattegory expert ca expert’’s view view “The table sauces, “The sauces, dres dressings sings and condiments condiments total total market mark et is worth worth a significant £586 million, gro growing at at +2.7% +2.

7% . With With 99% of households buying these products, pr oducts, it’ it’s important for for retailers retailers to to offer offer a range range which suits their shoppers’ needs. As these products products are ar e usually bought on a main shop, shop, it is important to to focus on well well known known brands brands that that co cover the main meal occasions. oc casions.

1

Our Table Sauces showed growth of 1% volume and 2% value last year.

The growth in the main has been

driven by price marked packs, a popular method of demonstrating value to shoppers, and also the greater prevalence of squeezy bottles.

Other elements which have had a positive impact

In summer, summer, the focus focus should be on may mayonnaise onnaise,, salad cream cr eam and salad dres dressings, sings, swit switching ching to to condiments condiments such as cranberry cranberry and horseradish horseradish sauces sauces in winter winter when people are are eating eating more more roas roasts ts and hot meals.” meals.”

have been the introduction by major brands of new variants, particularly mayonnaise, the move from glass bottles to plastic which has allowed for NPD in different formats and also the growth of own brand in fulfilling the role of the value offering.

The introduction of the NPD and the increased role that Own Brand is playing do have an impact on ranging decisions. There is only a finite amount of shelf space so it is important that retailers get their range right to maximise the return on space. It is important to stock the major players in the category, use NPD to drive interest and offer value choices to the consumer.

advice fr advice from om the retailer advisory panel Capitalise on seasonal opportunities such as last last minute minut e BBQs and summer parties. Shoppers are are looking for for products products they they rec recognise ognise so it is important to to focus focus on well well known known brands brands that that co cover main meal occasions. occasions. Make Make your your cust customer omer’’s life life easy easy by grouping grouping rele relev vant products products together together so they they can quickly find what what they they are are looking for for..

We support retailers and offer advice through the Lifestyle Express planograms, as well as highlighting the best sellers in depot, along with

rec ecommended ommended 2 b

education features in our leaflets. We also encourage retailers to look at what is coming up

“

in the year and take advantage of both seasonal and event driven opportunities. The Queen’s

HP Brown Sauce 425g

HP Brown Sauce 255g

HP Fruity Sauce 255g

Jubiliee and the Olympics in the Summer will both

present opportunities for retailers to capitalize on, along with the annual BBQ push. Retailers would

Heinz Tomato Ketchup 460g

Heinz Tomato Ketchup 342g

do well to plan ahead so that they can maximise sales at these key times with off shelf displays, cross-promotions and offers.

18

Heinz Tomato Ketchup 570g

1. IRI 52 52 w/ w/e 24 24 Dec 2011.

2011.

re profit from table s & condiments

table sauces best sellers

1

mayonnaise Hellmann’s Real Mayonnaise 400g Hellmann’s Light Mayonnaise 400g Hellman’s Real Mayonnaise Squeezy 430ml

condiments & mustard Colman’s Horseradish Sauce 250ml Colman’s Classic Mint Sauce 250ml Colman’s Tartare Sauce 250ml Colman’s Apple Sauce 250ml Ocean Spray Cranberry Sauce 190g Colman’s Mustard Glass Jar 100g

tomato ketchup & brown sauce Heinz Tomato Ketchup Squeezy 460g Heinz Tomato Ketchup Squeezy 570g Heinz Tomato Ketchup 342g HP Sauce Original 255g HP Sauce Original Squeezy 425g HP Sauce Original BBQ Squeezy 430g

Ensure you stock a range which offers something for everyone i.e. mustard, mayonnaise, ketchup, salad cream and condiments Make the most of seasonal opportunities.

Use signs on the shelves to remind customers to stock up on mint sauce in Spring, mayonnaise in summer and horseradish/cranberry etc in winter Ketchup is the largest part of this market but growth is coming from mustard and mayonnaise sales so make sure you are stocking the best selling brands

Heinz Salad Cream Squeezy 460g Heinz Salad Cream Light Squeezy 460g Heinz Salad Cream 295g Hellmann’sThousand Island Dressing 235ml Hellmann’s Caesar Dressing 235ml

recommended two-shelf retail layout Condiments

Brown Sauce

Mustard

key facts and tips

salad cream & dressings Heinz Salad Cream Glass Bottle 285g

Salad dressing

Tomato Ketchup

Mayonnaise

Salad cream

If you have a range of condiments, do not put horseradish and tartare sauces next to each other as they are a similar colour and confuse the customer – use seafood sauce to break up the similarity

recommended two-shelf retail layout Salad dressing

Mustard

Condiments

ay wholesale layout Condiments

Mustards

(Brand blocked)

(Brand blocked)

Heinz Salad Cream (merchandised by calorie content & then pack size)

Mayonnaise

Salad cream

Salad Dressings

Hellman’s REAL Mayo 430g (SQUEEZE)

Hellman’s LIGHT Mayo 430g (SQUEEZE)

Hellman’s REAL Mayo 400g (JAR)

Hellman’s LIGHT Mayo 400g (JAR)

Flavour enhancers

Brown sauces

Tomato sauces

for more planograms visit our website 19

“Partners for Growth gives independent retailers expert advice on what lines should be carried and how they can maximise their sales and profit opportunities” David Warren, Trading Controller, Today’s Group

“Partners for Growth is a free service so it will only cost the retailer their time. The service is a one stop shop for store wide category management and is an invaluable source of expert knowledge in one place accessible by half a dozen mouse clicks.

It makes absolute sense – it’s a tailor made consultancy package for the convenience retailer.”

Denys Shortt, Chairman & CEO, DCS Europe

For alternative shelf layouts and useful business advice visit

Partnersforgrowth.unilever.com

Cash & Carry Management’s Top 25 Suppliers awards for 2012 begin soon

Not your usual awards lunch Comments on last year’s event...

“I really did enjoy the awards at Dorney Lake and found the day very worthwhile. The awards themselves were swift and the Dhamecha presentation highlighted information that we will pass on to our members. It was a great venue and good to learn about the planning going into hosting an Olympic venue. I gained the most benefit from listening to the speaker from the Olympics organising committee who was very interesting from both a personal and business perspective.�

Tom Gittins, business development manager, Confex

was really “The event welcomed good and I e we had the free tim holesalers with the w rs to and supplie ns and discuss pla sight. The market fore ere also speakers w cha.� dip Dhame ra P y rl la u c good, par ti gbin, o r, Richard H ent manage m p lo e v e d r custome Drinks Britvic Soft

“Your awards are genuinely one of the best around and I think this is down to the intimate nature of a relatively small gathering, the informal but professional tone, and the special location – certainly not the norm. Also, the ambience is friendly and approachable, it is a good networking opportunity, the speakers are really excellent, and the time of day (lunch) makes it much more manageable than another evening gig.�

Stephen Moodie, customer director convenience, Unilever

“Great ven ue, great speakers, w ith a passion an d message .I thoroughly enjoyed the balance be tween awards and speakers.

Good news stor y in hard times .�

Nigel Milwa rd, C&C – im pulse mana ger, PLB Group

!

" #

# ! $ % &

'

www.cashandcarrymanagement.co.uk

GIVING ENERGY TO THE SOFT DRINKS Market trends

space to the best performing categories.

With the continued growth of energy drinks across the entire trade environment, it’s no surprise that once again, it’s predicted as the main category driver within soft drinks over the next three years with expected growth around +8.4%1 in each year. The success of sports & energy, currently growing at +8.9%2 in independents, is an indication of the increased consumer understanding of energy drinks and the role they can play in their day to day lives.

The purpose of energy drinks is to meet a need at a time when energy is required and this makes the category relevant to a number of different consumers across a number of different occasions.

This could be an office worker needing a post lunch pick me up, a driver embarking on a long

journey, a sportsperson wanting to be at their best on the pitch or a student studying into the night.

Sports & Energy is the largest and fastest growing category within soft drinks and is in fact, one of only two soft drinks categories, alongside fruit crushes, showing value and volume growth in Independents3.

Sports & Energy in Independents Sports & Energy can be further split into three sub segments; Functional Energy, such as Red Bull; Refreshment Energy such as Lucozade and Sport such as Lucozade Sport. Functional energy is the largest sub-segment commanding a 54.2% share and is the only one in growth at +23% versus Refreshment which is down -1% and Sport which is down -4%4.

Within Sports & Energy, the top four brands; Red Bull, Lucozade, Lucozade Sport & Private Label deliver a massive 69%5 of value sales which shows that consumers look to the most

recognisable and trusted brands when seeking energy. This is evident in the most successful NPD launched last year in the category which was Red Bull 330ml bottle, Lucozade Blackcurrant and Lucozade Sport Lite.

Wholesale and Depots Wholesalers and Cash & Carry’s are enjoying a successful time with Sports & Energy at present which looks set to continue.

There are, however some big opportunities for further growth by adapting range and space to fit the current landscape in the market.

Soft Drinks are the most frequently purchased category for retailers in depots and make up 18% of a retailer’s basket spend6.

As Sports & Energy is the largest category within this and the fastest growing, depots should look at their fixtures to make sure they’re reflecting this. Many depots haven’t relayed fixtures for a number of years which could mean they’re missing out on sales by not giving enough

It’s also recommended that they look at how much space they are giving each SKU. 183 products registered sales in the past 12 Months however over 50% comes from just eight SKUs. Depots should consider the value each SKU is delivering to their business and help retailers understand which products are must stocks by making core range recommendations. Value to the category is being driven by the market leading, branded products but there is a role for value brands too. However, depots should consider the interests of their customer by supporting the brands that drive good cash margin and profit and not trade customers down into cheaper alternatives.

Availability is also key, 23% of retailers failed to buy an intended item in depot with 12%7 of this being soft drinks so reviewing fixture space could help rectify this and ease the shopping experience for customers.

Sources: 1. Mintel report/based on information resources 2. IRI total Independents 29.10.11 3. IRI total Independents 29.10.11 value/volume growth 4. IRI total Independents 29.10.11 5. IRI total Independents 29.10.11 6. HIM Retailer study 2010 7. HIM Retailer study 2010

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.

We’re sure you already know that Red Bull *

*Nielsen functional energy volume share MAT Nov 11 **Impulse CROS rankings 12 wks to 02.10.11 ***Nielsen Oct 11 ****Nielsen Homescan Survey (GB) January 2011

Source: IRI Independents, 52 w/e 3rd December 2011

INCREASE YOUR SALES WITH THE NO.1 WET COOKING SAUCE BRAND

Wet Cooking Sauce (WCS) accounts for 40.6% of value sales of the Foods of the World category which is worth over £20.4m Total WCS sector*

Italian 62.0% Indian 16.4%

Experimental 0.2%

Thai 1.0%

Mexican 3.6%

Chinese 11.0% Traditional 5.8%

® ® WCS is worth £12.7m Combined,Italian Dolmio & Uncle Ben’s provide 44.5% and provides 62%sales of value salesWCS of total WCS of value of Total

Total WCS Brand* Other WCS 11.3%

Knorr 10.3% Loyd Grossman 9.7%

Uncle Ben’s 15.2%

™/®/designs/© Mars 2012

Dolmio 35.4% Seeds of Change 0.1%

Sharwoods Homepride 4.2% 3.6% Scala 3.5% Blue Dragon 3.3% Own Label 2.2% Amoy Bertolli 0.1% 1.1%

Combined, Dolmio® & Uncle Ben’s® provide 50.6% of value sales of Total WCS

Price Marked Packs available

Recommended Planogram for Cash & Carry Stores

ITALIAN - PESTO, STIR-INS, POUCH

TRADITIONAL COOKING SAUCE

ORIENTAL ACCOMPS

INDIAN ACCOMPS

MEXICAN ACCOMPS

ITALIAN - BOLOGNESE WCS

ITALIAN - POUR OVER PASTA SAUCE

ORIENTAL WCS

INDIAN WCS

MEXICAN WCS

ITALIAN - BOLOGNESE WCS

ITALIAN - BAKE AND LASAGNE WCS

ORIENTAL WCS

INDIAN WCS

MEXICAN MEAL KITS

Combined, Dolmio & Uncle Ben’s have the leading SKU in 4 out of 5 of the main WCS sectors

Category Best Sellers 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

Dolmio Original Bolognese 500g Uncle Ben’s Sweet & Sour 500g Loyd Grossman Tomato & Basil Pasta Sauce 350g Dolmio Extra Mushroom Bolognese 500g Loyd Grossman Tomato & Chilli Pasta Sauce 350g Uncle Ben’s Medium Chilli 500g Dolmio Extra Onion & Garlic Bolognese 500g Dolmio Original Low Fat Bolognese 500g Dolmio Creamy Lasagne 470g Knorr Ragu Original Bolognese 500g Uncle Ben’s Tikka Masala 500g Knorr Ragu Traditional Bolognese 500g Uncle Ben’s Korma 490g Dolmio Extra Spicy Bolognese 500g Pataks Tikka Masala 500g

want to open more stock the right range business? and think about good space and layout top tips for space and layout in depot Sector block by need state (see flow fl below) and give more space to best sellers Brand block within sector, sector, with best sellers first fi in flow Help customers find fi what they want quickly by sign-posting sectors and using bay branding Use great POS to maximise promotions, highlight the best sellers and new products Offer customers category advice on maximising Soft Drinks sales

Energy & Sports

Colas

Flavoured Carbonates & Lemonade

Stills

Water & Squashes

Juices

Mixers & Licensed Products

Flow Coca-Cola, Coke, Coke Zero and Diet Coke the design of the Coca-Cola Contour Bottle and the Dynamic Ribbon device are registered trade marks of The Coca-Cola Company.

fact

The Top 30 immediate consumption products deliver 62% of retailers sales.* So make sure you stock the bestsellers.

top tips for range in depot Maintain 100% availability of best sellers The right range should include plain and Price Marked Packs

Top 30 Immediate Consumption Soft Drinks*

Top 5 Take Home Soft Drinks* Soft Drinks is a key category within Wholesale and Cash & Carry. It is the most common category in shoppers’ baskets as well as the most common category bought on impulse Our Open More Business Soft Drinks MOT Checklist is a five minute self-assessment scorecard and is available to all retailers across GB. It gives them the opportunity to see if they can maximise sales mileage from their existing Soft Drinks range The scorecard includes the Top 30 IC and Top 5 FC Soft Drinks.

Retailers will be looking for these brands so open more business for yourself and your customers and stock the bestsellers

For more information call Customer Services on 08705 33 66 99

Sources: *AC Neilsen, 52 weeks to 19.11.11, independents immediate consumption packs excluding own labels.

Kerrymaid: the dairy ingredien ingredients ts range range..

A componen componentt of of almost almost ev every dish on the menu, dairy is the one ingredien ingredientt chefs chefs need to to be able to to rely upon. Chefs Chefs choose Kerrymaid Kerrymaid for for peac peace e of of mind, that that not not only are are they they using the dairy range range that that performs perf orms abov above expecta expectation, tion, but one that that delivers delivers the ex excep eptional tional cre cream amyy tast taste of of true Irish dairy. dairy.

Wholesalers can profit Wholes profit by by st stocking the comple complette range range of of Kerrymaid Kerrymaid dairy ingredien ingredients ts and of offer their cus custtomers the benefits that that only Kerrymaid Kerrymaid of offers ers,, whether whether it be dairy spre spr eads ads,, cheese cheese,, cre creams ams,, ice ice cre creams or cus custar tard d and sauc sauce es – Kerrymaid Kerrymaid is the range range of dairy ingredien ingredients ts dev developed with pro professional cra craft and Irish charm.

Consumers spre spreading the wor word d The consumer consumer trend trend in butt butter and spre spreads has seen a mov move to towar ards ds products products with a butttery tast but taste and spre spreadable te textur xture e driving innov innovation and gro growth.

Kerrymaid has a range range of of chef chef-de devveloped dairy based spre spreads and cooking cooking ingredien ingr edients ts for for all all cat catering requir requiremen ements. ts. Your Your st stock checklist checklist: Kerrymaid Original errymaid Original;; Original’s Original’s gre great cre cream amyy dairy tast taste make makes it a chef chef ’s fa favourit ourite e, suitable for for cooking cooking,, baking and spre spreading. The new new 10g portions now now allo allow w chefs chefs to of offer a fron frontt of of house option option Kerrymaid But errymaid Butttery ery Spr Spre eads ads;; delicious butt buttery tast taste ideal ideal for for spre spreading str straigh aightt from fr om the fridge, fridge, av available in 500g, 500g, 1kg 1kg and 2kg 2kg Kerrymaid Sunflo errymaid Sunflow wer and Sunflo er and Sunflow wer Ligh er Lightt; he healthier althier alterna alternativ tive es to to butt butter er,, these these spre spr eads deliver deliver ex excel ellen lentt value value and performanc performance e Kerrymaid Pr errymaid Premium B emium Baking aking Spr Spre ead ad;; dev developed for for perfect perfect pastrie pastriess and pies pies ev every time,, av time available in 250g and 2kg 2kg Kerrymaid Lar errymaid Lard d; ideal ideal for for sa savoury pastry pastry and basting basting to to give give that that special homemade flav flavour our,, av available in 250g

Gra Gr ated and Slice Slices Kerrymaid’ errymaid’ss Gra Grated and Slice Slices are are flav flavoursome oursome,, con convvenien enientt, and deliver deliver ex excel ellen lentt melt and str stre etch. Your Your st stock checklist checklist: Kerrymaid Gr Gra ated ed;; timetime-saving ving,, in mild white white or colour coloured, ed, it melts ev evenly every time, time, give gives bet better appear appearanc ance e by by not not oiling-out oiling-out in cooking cooking and it’ it’s also ideal ide al for for sandwich sandwich fillings fillings Kerrymaid Pizza Pizza Gr Gra ate; gre great, ev even melt and super str stre etch, its mild cre cream amyy flavvour and melting propertie fla propertiess make make it the perfect perfect pizza topping topping Kerrymaid Original Slic errymaid Original Slice es; sets sets the global standar standard d within quick service servic e re restaur tauran ants ts,, suitable for for burgers burgers,, paninis and toas toastie tiess

Cus ustar tard d and Ice Ic e Cre Cream Kerrymaid’ errymaid’ss con convvenien enientt ready ady--to-serv serve e cus custar tard d and ice ice cre cream mixe mix es are are cra crafted to to of offer simple and more more sophistica sophis ticatted, des dessert acc accompanimen ompanimentt solutions.

The cre cream of dairy…

Your st stock checklist checklist: Kerrymaid’s Ready-to-Serve Custard; delivering a satisfying

Cheff es Che essen sentials tials for for fre fresh tasting tasting single and whipping cre creams. Your Your st stock checklist checklist:

dairy tast taste, this cus custar tard d can be poured poured str straigh aightt from from the pack and served served hot hot or cold. cold. Also av available in low low fa fat

Kerrymaid Single Single Cr Cre eam am;; in handy 1 litre litre packs packs made

Kerrymaid Ic errymaid Ice Cr e Cre eam Mix Mix;; give gives cat cater erers ers a con convvenien enientt

for pouring and a stable stable cooking cooking ingredien ingredientt

way to to serve serve a traditional traditional dairy ice ice cre cream tast taste. Kerrymaid Kerrymaid

Kerrymaid Whipping Whipping Cr Cre eam am;; light light and airy, airy, a perfect perfect filling filling

pro pr ovide videss a simple solution. Also av available in Cornish Cornish ice ice

for meringues meringues

cream fl flavo avou ur

And itit s all deliv delivered ered with with Kerrymaid Kerrymaid craft and Irish Irish Charm For inf informa ormation tion on how how you you can maximise maximise your your dairy ingredien ingredients ts cattegory ca egory,, speak speak to to Kerrymaid Kerrymaid – she’l she’lll be delight delighted to to help!

Tel: 0800 783 4321 www.k www.kerryf erryfoodservic oodservice e.c .co o.uk

YAZOO is the leading brand of flavoured milk in the impulse sector* Flavoured milks continue to outperform total soft drinks market in both value and volume. “Currently growing in value at 11.7%*, flavoured milk provides a real opportunity for convenience retailers to increase their profits” says Helen Cridge Trade Marketing Manager, Friesland Campina “Over the last 52 weeks, we have seen an increase in the number of adults consuming flavoured milk, seeking a tasty refreshment. YAZOO is no exception, remaining the leading flavoured milk brand in the impulse sector and selling almost 4 times that of its nearest competitor!”**

Merchandising for growth Flavoured milks have exploded over the last few years with an array of new entrants into the market, significantly improving the choice for convenience retailers (and consumers) and are forecasted to grow by 6.1%¹ in 2012.

In September 2011 YAZOO underwent a packaging makeover merging the simplicity of the recipe, the natural texture of milk and the great tasting flavours to create a bigger, bolder, design. “Flavour is a key purchase criteria for consumers when choosing flavoured milk and it was vital that the new design brought each of YAZOO’s great tasting flavours to life” says Cridge.

Helen Cridge concludes; “A segment in continued growth, flavoured milk should be considered a part of your core soft drinks offer. And a leading brand, YAZOO is a must stock.

In 2012, YAZOO will be bigger, bolder, better. We will continue to provide our customers with category leading advice to maximize sales revenues, improve our range of instore POS and drive innovation in shopper activation within the convenience sector. Keep your eyes peeled in March for one of our biggest and most exciting campaigns to date!”

Why stock YAZOO?

“Flavoured milks are often merchandised near milk.

However, by siting them next to milk, retailers are risking capitalizing on the sales revenue opportunity this segment offers. Milk is mainly used as a mixer for cereal and hot drinks whereas flavoured milks are perceived as refreshing drinks. An impulse driven product, flavoured drinks need to be sited front of store, alongside other soft drinks to trigger purchase” Helen Cridge adds.

 Available in Strawberry, Chocolate and Banana  YAZOO has a 75% brand awareness amongst adults²  With at least 3 months shelf life, there is no hassle and no waste, just profit!  £3million marketing investment in 2012, YAZOO will attract more consumers to the brand

* Nielsen Scantrack,Total Market 52 wks. 24.12.11, ** Nielsen Scantrack,Total Impulse 52 wks. 24.12.11, ¹Mintel, Dairy Drinks, milk & Cream, UK May 2011 ²Relish, Flavoured Milk Brands Research, Nov 2011

SHAKE UP YOUR SALES WITH THE LEADI NG BRAND Well loved by customers for its refreshing great taste, YAZOO is the No.1 milkshake by volume and value in the Impulse channel.* Milkshakes are one of the fastest growing segments in the soft drinks market, now worth an estimated ÂŁ177m*. With milkshake value growth forecasted to grow at 6.1% in 2012**, make sure you stock the leading brand, YAZOO. www.yazoo.co.uk

*Nielsen Scantrack 52 weeks 24.12.11 **Mintel Dairy, Drinks Milk & Cream UK May 2011

MILK. SHAKEN UP

Simple Steps To Hotter Sales i

61% of all drinks consumed out of home are hot beverages, with coffee the most popular with a 33% share*.

Hot beverages give you an opportunity to deliver a strong and sustainable contribution to your profits. There is a lot you can do to encourage more consumers to drink more often.

What is going on in hot beverages?

What does this mean to you?

The UK’s café culture continues to grow and evolve, with a clear trend towards higher quality and variety driving value in the category.

By improving the quality and variety you offer, you can unlock this valuable opportunity.

Cappuccino has overtaken Latté, to take back the number 1 coffee shop beverage position**.

Capitalise on this trend by offering speciality coffees as part of your range.

Speed and quality of service is increasingly important to consumers.

Providing your customers with products that speed up their service will grow their business and yours.

Consumers’ most important consideration is value for money.

With added value offers, a variety of products and a range of sizes, customers will come back day after day.

Sustainability is an increasingly important factor.

Consumers want to know where their coffee comes from and its sustainability credentials. Include these facts on POS and signage to engage with consumers.

Where are the growth opportunities?

NESTLÉ PROFESSIONAL® commissioned research to better understand the out of home beverage market. This found that the role of coffee changes across different channels, from indulgent and social to more functional. This is important because knowing your customers and their consumers will allow you to differentiate your offering and drive consumption. There are 5 consumer groups and the distribution of these varies by channel, so it is important to target the right channel to drive growth opportunities. The following is a summary of our research’s findings:

<25 yrs

Boosting Youth

Increase coffee consumption among under 25s to over 25s average

Positive Wellbeing

Promoting and communicating the positive health benefits of coffee

My Coffee Now

My Coffee My Way

Provide coffee solutions conveniently, quickly and close to consumer traffic

Offer choice and variety across a range of formats to meet all customer needs

Because I’m Worth It

Improve coffee quality, offering premium alternatives which customers are prepared to pay for

*Kantar Worldpanel 2011 ** NPD Crest, Hot Beverages & Coffee, 2010 *** Incite Marketing Planning, Coffee Promotion and Price Elasticity, March 2011

As a wholesaler, you can add value by y making sure sure your customers buy the right products oducts to capitalise on these growth opportunities. They in turn can ensure they offer coffees that match their consumers’ needs, encouraging more consumers to drink more coffee, more often.

Doing the following 3 things well will enable you to grow both consumption of hot beverages and your sales over the long term.

1

Right customers

2

Right range

3

Right promotions

Understanding the different types of customers you serve, whether they are cafés, offices or care homes for example, will mean you can stock the right range in the right format to suit them. This is important because their needs change in line with the different consumers they are serving.

When customers come into your depot it is important you make their shopping experience easy and logical, as this can positively influence the range and number of lines they buy. This can be simply achieved if you follow some basic principles of Category Management, which NESTLÉ PROFESSIONAL® can advise you on.

Further research commissioned by NESTLÉ PROFESSIONAL® found that trust in the brand is the number one factor in customer choice***. It is interesting to note 55% of Cash & Carry customers only bought 1 coffee brand in the last 6 months, and would even wait for it to be on promotion rather than switch to another brand***.

This makes brand choice by channel a very important consideration.

This is important because previously you may have considered depth of promotion as your only variable.

You can now choose to invest in promoting your coffee range in different ways and put more emphasis behind different, but equally important, customer needs. To discuss how this can benefit you personally, call our Category Team, 0208 667 6419.

The above should be reflected across the beverage fixture and off shelf.

Below shows the range you should consider offering, and how to lay it out for maximum impact.

Small Machine Machine Cartridges

Super Premium

Everyday Regular

Everyday Premium

Decaf

Speciality Coffee

Speciality Tea

Roast & Ground

On the Go

Coffee

Hot Choc

Everyday Regular

Hot Choc/Café Style

Tea

Note: Fixture is a recommendation and not based on market data.

For more information on NESTLÉ PROFESSIONAL® products, category advice and planograms please call 0208 667 6419. ® Reg. Trademark of Société des Produits Nestlé S.A. All rights reserved.

MAKE THE MOST OF THE GROWING OVER THE COUNTER (OTC) MARKET! Impulse Sales at £114m

OTC Market Overview £2,500

+1.6%

52 w/e 6 Nov, 10 52 w/e 5 Nov, 11

£2,000

£2.26Bn (+1.6%)

£2.28Bn £2.23Bn (-2.4%)

£1,500

+1.1%

£1,000

+5.3%

£500

52 w/e 7 Nov. 52 w/e 6 Nov. 52 w/e 5 Nov. 09 10 11 IRI 52 w/e 7 Nov 2009, 52 w/e 6 Nov 2010, and 52 w/e 5 Nov 2011

£0

-10% Total

Impulse

Major

Multiples

Chemists

IRI 52 w/e 6 Nov 2010, 52 w/e 5 Nov 2011 NB. Chemists includes Boots & Superdrug

Don’t miss out on key periods within OTC! Ensure to buy in plenty of stock before key periods so that you don't miss out on sales...

• Smoking cessation - New Year, New You - In January the sales peak in this category with many attempting to quit. During this period, patch especially sees a peak in sales.

• Allergy - hay fever affects around 20% of people in the UK* and incidence are higher in the spring and summer so make sure to stock up.

• Winter - Make sure you are prepared for winter by stocking up typically between October through to February *NHS - Hay fever facts, 2010 - http://www.nhs.uk/Livewell/hayfever/Pages/Allabouthayfever.aspx

Be the first to stock and display innovation...

The development of new products in all health and beauty categories is vital to drive interest and spend in the category. *IGD Retail Analysis, Opportunities in the Health and Beauty market, 2004

Re

Fi T

Consumer Behaviours...

• • •

60% of consumers require immediate relief of their symptoms Half of OTC shopping trips are made to respond to immediate relief of symptoms* Consumers spend 30% more in an emergency dash to shops vs their normal top up shop*

*Shopper Mission Research, Buckingham Research Associates, July 2007

Merchandising Tips

Stock Key Lines To maximise your sales ensure that: • • • •

Stock products for key OTC categories Stock the brand leader - particularly those supported by TV Clearly display the brand leader Have a wide breadth of products - need to cover format as well as brand

Promotional Offers should be mounted in prime locations • •

• • • • • • •

Ensure Health care and key OTC categories are clearly signposted Group products by category and brand block where possible Top selling brands should be merchandising at eye level, leading left to right Value and budget lines on lower shelves Offer a choice and variety but avoid duplication Keep displays full, neat and tidy Prominently display promotional advice

Locate where there is high footfall and at eye level, where possible.

Create impact by displaying promotions with sufficient stock and point of sale materials to advertise your promotional offer

ecommended Fixture Layout

irst Aid/ Topical

Kid’s Meds

Analgesics Stomach Cold & Flu, Decon & Cough

Allergy/ Lipcare/ Sore Throat

Eyecare/ Cystitus/ Stop Medicated Pregnancy/ Smoking/ Skincare Condoms Footcare

ID: UK/MC/12-0116