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Vijay Thanwani on ambitious targets for Gold Star Sterling loses top member but gains two others

Five x ÂŁ50,000 cash prizes Over 200,000 chances to win ÂŁ20

FWD throws weight behind fiscal marks on beer

Check promotional packs for details. Promotional game live from 1st Sept 2012 to 31st Oct 2012.

Spotlight on Sam Wilcox of Blakemore Wholesale See for full Terms and Conditions or call 0800 57 57 55

The business magazine for cash & carry/delivered wholesalers





Brushing aside the opposition Usain Bolt certainly lit up the Olympics stadium in completing the sprint double, and the pyrotechnics at the closing ceremony also left their mark. For cigarette puffers, this was the closest they came to smoke as they watched the events unfold. Designated areas in the park were available for their nicotine intake, but in the stands officials kept vigil to see that no ‘gaspers’ were produced. This is the way of the world. And it’s getting tougher. Plain packs, higher tax duty and the display ban in retail multiples – and soon to come in the independent channel – all add to the woes, not only of smokers, but also of those in the trade for whom tobacco accounts for a bigger share of their income than any other category. Yet despite their coughing and spluttering, smokers are a resilient lot. Many are switching from highpriced brands to cheaper styles, while others are rolling their own. And while the whole market is still very much affected by illicit trading and fake packs, the category doggedly maintains its survival. Nielsen MarketTrack figures for 2011 show that the sector’s value rose by almost £1bn to nearly £13.5bn. No doubt the Government will continue to bring in measures to reduce the smoking habit, although what other initiatives it has up its sleeve is anyone’s guess. For the time being anyway, the C&C/wholesale and independent channels can cash in at the multiples’ expense.

Illicit tobacco packs abound, but the genuine trade is still flourishing ... see pp.36–50


4–8 Three members lost by Sterling, but two gained ... FWD presses for fiscal beer marks ... Ambitious plans for Parfetts symbol group ... Spirits market up 8% ... Brakes sells meat business ... Booker man punished for alcohol theft ... P&H launches Mace scheme.







supplier strategy rtds




employment law


products & promotions


Mervyn Gilbert

Managing Editor

Kirsti Sharratt

Contributing Editor Media Sales Manager

John Wood Clare Phillips

Business Development Manager David Ford Publishing Director




Mervyn Gilbert editor


Martin Lovell

4,560 July 2011–June 2012

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

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

Cash & Carry Management

• August 2012 • 3


IN BRIEF Sponsorship Supplier of IT systems to the C&C/wholesale trade, STL Technology Solutions is sponsoring Langho Juniors under-15 team in the East Lancashire Football Alliance League.

More energy Bestway has added two flavours to its Stimulation energy drinks range: exotic tropical and exotic berry. Both are pricemarked at 39p, affording independents a 36% POR.

Arsenal match North London operator Imperial Cash & Carry is celebrating its 25th anniversary with a ‘Silver Cirque’ charity gala ball at the Emirates Stadium – home to Arsenal FC – on 15 November. The money raised will go to Macmillan Cancer and to the Homeless Resources Centre in Edmonton.

Third wholesaler leaves Sterling Sterling Supergroup’s largest foodservice wholesaler, Castell Howell Foods has left and taken its £73m turnover business to Caterforce. The company’s departure is the third in recent weeks involving Sterling and follows those of Glasgowbased delivered foodservice wholesaler Lomond Fine Foods and Lynton Exports, of Stoke-on-Trent, both of which switched allegiance to Landmark Wholesale (Cash & Carry Management last month). The latest defection means that the Maldonbased group has lost almost £100m worth of buying power in a matter of months. Castell Howell Foods, formed in 1988, has its main site in Llanelli, where its twin depots have a sales area of around 72,000 sq ft. It also operates from Avonmouth (20,000 sq ft) and two much smaller buildings in Merthyr and Chirk, near Wrexham. Managing director Brian Jones, a former Sterling chairman, said: “We joined

the group 14 years ago when what had been a retailoriented organisation started moving into foodservice. “It gave us access to companies like Heinz and Nestlé, which had foodservice divisions. “We have joined Caterforce because it has enabled us to make larger drops with fewer invoices.” The foodservice company, which has a staff of 380, derives 74% of its sales from delivered wholesale and the rest from cash & carry. Deliveries are made throughout Wales and parts of south-west England, using 80 vehicles. The wholesaler services around 4,000 customers across the hospital, hotel, restaurant, pub, café, educational and leisure sectors. Caterforce md Nick Redford told Cash & Carry Management: “I am thrilled Castell Howell has joined us. They not only bring significant volume, but also experience and knowledge to the group. “High supplier and customer overlaps, with minimal

Major blow to Maldonbased group.

geographic conflict, are the backbone of our continued success, and Castell Howell will add significantly to that strength.” Caterforce, which now has seven member wholesalers, is aiming to exceed £300m turnover in the year to April. Redford added: “We are actively looking for the right members to join us. Our wholesalers see themselves as colleagues, not competitors. “Our central promotional compliance is now in excess of 90%. Caterforce is also developing an ambient ownbrand in readiness for a full launch early next year.” Tel: Castell Howell Foods (01269) 846060. Tel: Caterforce (01625) 440188.

Today’s date Members of Today’s Group will meet for their annual conference in Berlin next year from 8-12 March, not as stated last month.

New formula SPAR UK has relaunched its own-label baby wipes range with a Paraben-free formula, widely used in the health & beauty trade.


From Maxxium to P&H P&H Direct, which claims to be the UK’s largest van sales operation, operated by Palmer & Harvey, has appointed Chris Harrison (pictured) as customer marketing controller. He joins from drinks supplier Maxxium UK,

• Cash & Carry Management • August 2012

where he worked on leading retail multiple accounts. Before that he was with Coors Brewing and Shepherd Neame. The role of customer marketing controller has been created to reflect the growth of P&H Direct and follows the

recent acquisition of the Walkers van sales operation from PepsiCo. Harrison’s brief covers Snacksdirect and Sweetdirect, as well as the Walkers business. P&H Direct’s customer base includes 50,000 convenience stores, CTNs, pubs and food outlets. Tel: Palmer & Harvey (01273) 222100.


Sterling adds two of its own Despite the major loss of three members, Sterling Supergroup has announced that two foodservice wholesalers have joined: Eagle Foods, of Peterborough, and McCartney Food Service, of Boston, Lincs. Group chief executive Vanessa Cooper told Cash & Carry Management: “Noone else is going – as far as I know! Apart from the two newcomers, we are planning to recruit more. ”We remain strong in the foodservice arena, the individual members are in growth and we have a strong brand in Sterling Caterers Essentials.” The comings and goings mean that Sterling group turnover stands at just over £340m. Reflecting on the Castell Howell move, Cooper said: “Its managing director Brian Jones was keen on offering our own brand to Caterforce

Cooper: ‘Apart from the two newcomers, we are planning to recruit more.’

members. I was against that. With turnover of more than £20 million, I wanted to keep it for Sterling wholesalers only.” She also clarified the departure of Lynton Exports by saying: “The confectionery and soft drinks side of that business had already left us a year earlier for Sugro; it was the remaining

bit that switched to Landmark. “As far as Lomond Fine Foods is concerned, it’s a mystery why they decided to go.” New Sterling member Eagle Foods, with sales of £13m, was formerly with Confex Group. The company’s six vehicles deliver frozen foods to catering and retail outlets over a 100-mile radius, but also make drops to other wholesalers throughout the country. McCartney Food Service – also previously with Confex – has five vehicles calling on independent businesses over a 60-mile radius. Turnover is £1.7m. General manager Toby Short said: “Around 60% of our sales come from frozen foods and the rest from chilled and ambient.” Tel: Sterling Supergroup (01621) 856300.

FWD support for beer marks Fiscal marks on beer could recoup £500m a year to the taxpayer and protect thousands of shops from buying illicit supplies, according to the Federation of Wholesale Distributors. Chief executive James Bielby said that marking cans and bottles as UK-duty paid would also return millions of pounds’ worth of business to C&C/wholesalers who supply law-abiding retailers. The FWD made its views known in a submission to HM Revenue & Customs’ consultation on alcohol fraud. HMRC figures show that one in 10 beers in the UK is fraudulently traded.

Bielby: Millions of pounds of business would be returned to C&C/wholesalers.

The FWD response said that members’ beer sales have declined by 15% in

recent years, while spirits, which carry fiscal marks, have grown by a similar percentage. Said Bielby: “The illicit market for beer has been allowed to thrive for too long. The nature and scale of fraud in the UK means that enforcement activity alone is unlikely to achieve a sustainable reduction in the illicit market. “We therefore urge the Government to act on HMRC’s proposals and introduce fiscal marks for beer, alongside supply chain legislation and the registration of wholesalers.” Tel: Federation of Wholesale Distributors (01323) 724952.

Parfetts’ symbol Parfetts Cash & Carry has launched Go Local Extra, a new symbol group on the back of its Go Local promotional scheme, available to more than 800 shopkeepers. Head of customer development Andy Whitworth said the fascias would be available through the C&C operator’s six branches and would be managed by a head office customer development department. He told Cash & Carry Management: “As a company, we can see the decline in unaffiliated independent retail stores and, by providing a symbol format and fascia for our Go Local retail club, we are ensuring the future of our customers’ businesses in what is becoming a very difficult trading area.” It is expected that around 50 stores will be sporting the new fascia by the end of the year, and the plan is to have 150 over the following 12 months. Last year, Go Local promotional sales exceeded £20m. Tel: Parfetts Cash & Carry 0161-429 0429.

Charity link As part of its continuing partnership with Hospitality Action, 3663 has launched a campaign which will enable its customers to donate their Safari loyalty points to the charity. Tel: 3663 (0370) 3663 000.

Cash & Carry Management

• August 2012 • 5


Spirits market exceeds £8bn The GB beers, wines and spirits market is worth more than £37bn – up 3% – according to a newly published report from First Drinks Brands. The on-trade share is £22.7bn (3% higher) and offtrade £14.6bn (plus 4%). No specific data is given

for beer and wine, the study being directed at the spirits sector, which is alone valued at £8.1bn – up 8%. The report says: ”The average household purchases spirits 12 times a year; 61% of households buy spirits and spend an average of £180 a year on them.”

Brakes sells meat side Brakes Group has sold its specialist meat wholesale business, Browns Foodservice, to another meat concern, Ensors, of Cinderford, Glos. Rugby-based Browns, with a turnover of £15m, was acquired by Brakes two years ago. It will continue to be used by the foodservice wholesaler as a supplier. Brakes, which gained a number of national accounts following the DBC Foodservice demise, has also won £100m worth of business through contracts with Coffee Republic, Akkeron Hotels, Scotland Excel, The Restaurant Group and OCS Group. Tel: Brakes Group (0845) 606 9090.

Premium spirits (over £23 at rsp) are worth £341m in the on-trade (up 29%) and £158m in the off-trade (10% higher). In the off-trade premium spirits sector, malt Scotch dominates in value terms (64.5% of the market), followed by cognac (13.1%). Vodka and gin are both credited with under 4%. Smirnoff is the leading spirit brand in value and volume, with Jack Daniel’s in second place for value and Glen’s for volume. Vodka is the leading category in both value and volume terms, followed by blended Scotch and gin. On-trade data: CGA strategy 14.4.12 and off-trade data Nielsen 28.4.12.

Tel: First Drinks Brands (01256) 748100.

Second cider festival Bestway and Batleys second cider festival (17 August to 13 September) features a pear cider addition to the Country Choice own-label range. In a two-litre bottle (abv 4.5%), and in shrinkwraps of six, it is price-marked at £2.59, giving independent

retailers a 25.2% profit on return (increased to 30.6% during the event). BWS senior negotiator Roopinder Toor said: “We will be showing more than 40 big brand ciders.” Tel: Bestway Wholesale 020-8453 1234.

IT upgrade for drinks specialist Sanderson has implemented its Swords wholesale IT solution system at delivered wholesaler Global Liquor Concepts. Cork-based GLC supplies a range of beers, spirits, soft drinks and wines to the foodservice industry. Swords integrates all areas of the supply chain, providing visibility of information across the business


and monitoring the performance of key operational areas. Instantly available stock information enables the wholesaler to make effective and accurate replenishment decisions and optimise warehouse space. Accurate product and stock information are also being made available, as well as flexible pricing options.

• Cash & Carry Management • August 2012

Thomas Desmond, managing director of GLC (trading as Drinks Direct), said: “The Sanderson system has established strong operational foundations across the business, especially in our sales and customer service departments.” Tel: Sanderson (0247) 655 5466. Tel: Global Liquor Concepts (0035321) 434 7797.

Taste of nostalgia ‘Back to a time when sweets were fun and a family firm could lead an industry’. So goes the blurb on the front cover of a new book which traces the growth of one of the most iconic names in confectionery – Trebor. Beginning as a ‘quality sweets’ manufacturing business in east London, and then moving to the more salubrious surroundings of Woodford Green and Colchester in Essex, it now finds itself part of the mighty Kraft Foods. No longer a manufacturer, its name lives on largely through a handful of labels, headed by Extra Strong Mints. Once, the Trebor brand was associated with more than 450 products which delighted kids, their pockets filled with copper coins ready to spend in the myriad of independent confectionery shops. The Trebor Story (£18) traces the brand’s development, from the time the business was started by the four ’founding fathers’: Thomas King, a wholesale grocer; William Woodcock, a sugar boiler; Robert Robertson, a retail grocer; and Sydney Herbert Marks, a sweets salesman, whose family later controlled the business. The well-illustrated book captures all the nostalgia of a bygone era, when staff were rewarded for their hard work and loyalty. While the author laments the company’s takeover by Cadbury in 1989, he points out that Trebor itself took over other firms, like Sharps, Clarnico and Maynards. Tel: Muddler Books 0207482 3401.


Alcohol stolen from Booker A delivery driver, Paul Holmes, 24, who worked for Booker’s Swansea branch, stole almost £4,000 worth of alcohol to sell on to customers, it was stated in a case heard last month at the local magistrates court. Holmes, of Winch Wen, was said to have taken 44 packs of alcohol over three months. He sold them to pay for socialising and gambling. Prosecutor Hayley Davies said Holmes began stealing after someone saw a spare crate of alcohol in his van and offered to buy it for £9 less than the retail price. Management at the cash & carry spotted that stock

was going missing and set up an undercover camera to monitor the situation. In addition to loading his vehicle with the correct consignment, Holmes was found to have taken extra cases of spirits. When confronted, he

Mace money spinner Palmer & Harvey is helping Mace retailers engage with their local community this summer with an in-store activity. Youngsters are being challenged to spin a hula hoop for as long as they can,

Collective title Beverage Brands (UK), Caledonian Bottlers, Merrydown and Bottlegreen Drinks – the four drinks businesses operating within the SHS Group – are now known collectively as The SHS Group Drinks Division. They still operate under their separate identities and are based in Gloucester. SHS Group, a privately-

owned concern established in 1975, comprises 11 operating companies and has a turnover of more than £400m. The SHS Group Drinks Division will continue to work closely in collaboration with SHS Sales & Marketing for its sales function. Tel: SHS Group Drinks Division (01452) 378500.

Savage & Whitten md In last month’s IT feature, Cash & Carry Management mistakenly described Mark Windebank as managing director of Sanderson, which is responsible for the provider of the Swords system used by many cash & carry/wholesalers. Windebank is, in fact, managing director of


admitted this and other offences. Holmes was given a community order of 12 months and was ordered to pay costs, plus compensation to Booker totalling £3,596. Tel: Booker Group (01933) 371000.

Northern Ireland wholesaler Savage & Whitten, which was mentioned in the article and is a Sanderson customer. The md of Sanderson Multi-Channel Solutions Ltd is Ian Newcombe. We apologise for the error. Tel: Sanderson (0247) 655 5466.

• Cash & Carry Management • August 2012

with a prize going to the winner. And General Mills, producer of Nature Valley and Old El Paso, is offering Mace retailers the chance to win a road bike. They have to submit the best and most inventive photograph of the hula hoop challenge. Tel: Palmer & Harvey (01273) 222100.

Tobacco decline Latest interim figures released by Booker Group show that in the 12 weeks to 22 June total sales rose by 1.7% compared with the previous corresponding period. While non-tobacco income increased by 3.9%, tobacco revenue fell by 1.7%, which chief executive Charles Wilson said was due to higher duty. He confirmed that the acquisition of Makro UK was completed on 4 July. Looking ahead, Wilson said: “After a good start, we anticipate that we are on course to meet expectations for the year ending 29 March.” Tel: Booker Group (01933) 371000.

Export award

Bestway’s export team was presented with the Queen’s Award For Enterprise: International Trade at the company’s north-west London headquarters. Dawood Pervez (right), the director responsible for exports, accepted the award from deputy Lord Lieutenant for Brent, Mei Sim Lai, OBE (centre). He said: “Over the last

three years we have achieved earnings growth of 86%. “This award has put us in the league of being one of the top performers in food exports from Britain.” Also attending the ceremony was Umar Sheikh (left), Bestway’s central export buyer. Tel: Bestway Group 0208453 1234.

IT news 2012

STL turns 10! Thank you to all our customers, partners and employees who have contributed to our decade of success. Here are some of our highlights.

Works with UKTI and NCR to break into emerging markets

2011 Releases STL solution on 64 bit platform

2010 Invests in a customer service solution, improving service quality

2008 Wins major contracts with Parfetts and Stax Trade Centres



Launches an innovative delivered business solution

Launches a multi-site trade & save solution


2004 Wins 1st contract to supply end-to-end solutions to Dhamecha Foods

1st installation of functionallyrich tilling solution at Oak Cash & Carry

2007 Wins 1st major contract for tilling system - with Bestway

2006 2005

2002 Forms to develop next generation software solely for wholesalers 0844 472 4727

1st ‘go-live’ for flagship solution: STL Merchandise Management System

Acquires the former Riva Wholesale business from Torex



Extra Christmas deals 3663 is offering customers a range of incentives to buy Christmas products. Last year, the foodservice wholesaler promised that the 40 promotional offers would allow caterers to make total savings of around £2.7m by purchasing at the special

From the Christmas brochure.

Retail role SPAR UK has appointed Ian Taylor (below) head of retail. He is responsible for implementing the group’s ‘Inspiring Growth’ strategy by increasing store numbers and developing formats. Ta y l o r ’ s brief also covers the application of innovative approaches to store formats and concepts, and seeking out opportunities for the commercial growth and development of the business. He joins the symbol from The Co-operative Farms, where he was in charge of commercial operations/sales & marketing. Tel: SPAR UK 020-8426 3700.


seasonal prices; this time the aggregate could be considerably more, said product marketing controller Christa Heydon. The incentives cover a range of starters, mains, desserts, drinks (supplied by Vivas) and non-foods such as tableware and crackers. “We will have more than 700 products in the full range – available from next month– of which 40 will be new, including 11 own-brand items and 10 in non-food. “We haven’t gone overboard on new products because people still very much want the traditional, but with a twist, such as smoked turkey and spinach & ricotta ravioli.” The mains include turkey paupiette with cranberry and apricot stuffing and wrapped in bacon, while among the desserts is a layered chocolate orange truffle torte. “We also expect to do well with licensed products, which tend to increase in volume at Christmas time,” said Heydon. “We have not discontinued anything this time round, although during the year we do undertake some range rationalisation. “And because not many of our suppliers are struggling,

The proof of the pudding... Christa Heydon samples the chocolate orange torte.

we see no need to shift our business.” During the whole of the year, 3663 reckons that 70% of its sales are in branded products and the rest in ownlabel. More ordering is being done online, with 17 of the 19 depots offering customers this facility. The two others are expected to follow suit shortly. Heydon said: “What we are noticing is that many are dual ordering – online as well as by the traditional telesales method. That way they tend to buy goods covering more categories.” Tel: 3663 (0370) 3663 000.

Around the world 3663 has introduced five new meal ideas from around the globe, based on ownbrand ingredients: Seafood Chowder (Americas), Chicken Tagine (Africa), Giant Meatballs in a Spicy Sauce (Europe), Thai Chicken Cakes (Asia) and Lamington Cakes (Oceania). The foodservice wholesaler’s own-brand manager Nicky Dixey said: “With summer benefiting from a whole host of global events, we’ve launched our new selection of quality ‘around the world dish ideas’ to allow caterers to boost sales. “They can offer customers dishes that fit in with this year’s trend for global cuisine. “We have also received accreditation from the Craft Guild of Chefs on another 17 of our frozen own-brand products.” Dixey added: “In the past, own-brand products have sometimes been perceived to be of a lesser quality in comparison to branded. However, the Craft Guild of Chefs accreditation just goes to show how great the quality of 3663’s products are.” Tel: 3663 (0370) 3663 000.

Eating out increases A ‘QuickBite’ survey conducted by YouGov on behalf of foodservice researcher Horizons shows that people ate out 2.77 times in a twoweek period in June – up from 2.02 times in the corresponding period last year. Pub restaurants were the most frequently mentioned destinations for eating by the

• Cash & Carry Management • August 2012

2,000 respondents (19% of those surveyed) and food quality was given as the most important factor for diners (78% placed it first) and price came second (72% gave it as their No.2 choice). However, the average spend in a pub restaurant dropped from £17 to £15.46. According to Horizons,

frequency of eating out is at its highest for two years. Director of services Peter Backman told Cash & Carry Management: “Consumer confidence may still be low, but eating out is proving a luxury that few people are willing to forego.” Tel: Horizons (07811) 401356.


Passion and perspective The first in a series of articles features Sam Wilcox, managing director of Blakemore Wholesale.

Wilcox with his daughters (l to r): Faye, Michelle and Natalie.

What has been the major milestone or turning point of your career? Joining Blakemore was probably the biggest change/turning point. It was my point of entry into wholesaling, a business I am passionate about.

perspective in both work and private life. As far as technology is concerned, I must admit to being a bit of a Luddite. Generally, I think life is easier as a result of new technology, but I think it’s always important to know where the off button is.

Who has been the biggest inspiration to you? I have been lucky enough to work with some really talented people, as well as a few plonkers. For me there are two stand-out people. Peter Blakemore has been a source of inspiration in terms of strategic thinking, and Tony Salisbury spent a lot of time teaching me how to be a good operator. No doubt I have been a difficult student to both!

What most frustrates you in business (and in life generally)? I love people who are passionate about what they are doing, so the biggest source of frustration for me is where I come across apathy.

How do you maintain a work/life balance and how have developments in technology affected this? I have learned to deal with both success and failure in my career, more failure than I would have liked! Understanding that both are difficult masters has helped me maintain a

Just two employers Sam Wilcox has had just two employers during his career: Asda and Blakemore. He started as a warehouse worker for Asda in 1973 and reached the position of fresh foods manager before leaving to join Blakemore in 1986 as depot general manager at Walsall. From there, he moved to Wolverhampton as general manager. He was subsequently promoted to area controller, and then operations director, and was appointed to his current post of managing director of Blakemore Wholesale in 2001.


• Cash & Carry Management • August 2012

If you were able to retire tomorrow, would you, and if so, how would you spend your time? Would I retire tomorrow? No. If I had to, I would spend my time travelling and playing guitar. What advice would you give someone starting his/her first job? Have plenty of common sense and use it. I see so many instances of issues being made unnecessarily complicated. Oh, and be honest! What type of business would you have gone into if it wasn’t C&C/wholesale? This might sound a little strange but I would have probably gone into social work! If you had a million pounds to invest in business, how would you spend the money? I have always enjoyed driving fast, so for me I would invest in a business offering track days. Always in demand, and great fun, although I might spend more time driving the cars myself!

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Call: 024 7655 5466 Visit: Email:


‘A new Gold Star standard’ Gold Star’s managing director Vijay Thanwani tells Cash & Carry Management’s contributing editor John Wood how the business intends to achieve a £50 million turnover within five years. Setting up a business with the aim of hitting £50m turnover within five years is ambitious, but the managing director of Gold Star says he is ahead of target after the first year’s trading. The cash & carry depot opened in April last year and Vijay Thanwani comments: “We started from zero so it was going to be a steep climb. Our sales overtook our first year’s forecast, with year two looking even more encouraging. We are building a new customer base in addition to the ones we acquired and therefore it is growing week by week.” The depot may have opened for business in April 2011, in the former premises of Premier Wholesale in Harrow, but a considerable amount of work and investment went in during the preceding months to fulfil Thanwani’s vision. He had developed a very clear idea of how he wanted the depot to look and operate as a result of his previous experience in the industry. He has worked in food retailing, trading, manufacturing and distribution for over 20 years as a member of the family that owns the Choithram Group, which


• Cash & Carry Management • August 2012

runs businesses across 26 countries, including Natco Cash & Carry, Natco Foods and Natco Ingredients in the UK. Gold Star was an opportunity to put all that experience into practice independently of his family. He and his team spent four months refurbishing the depot and installing a new IT system. He wanted to make the depot as welcoming as possible for customers and installed a new roof, new floors and heating and introduced a bright colour scheme. With careful planning they were also able to add an extra 3,000 sq ft of selling space to the 30,000 sq ft depot and a pleasant reception area. Thanwani is a firm believer in the efficiencies that a good IT system can introduce to a business and opted to install Sanderson’s Swords system to manage both the cash & carry operation and his plans for a delivered service. In addition to the Swords system, Gold Star implemented the Swords Radio Frequency system, which uses hand-held scanners to facilitate more efficient order picking, shelf edge label checking and stock taking.

interview He explains: “Having worked with the Sanderson system looking for a slice of the action, but Thanwani is confident his at Natco Cash & Carry, I knew Swords would be crucial for focus on his customers will win new business and keep them my first start-up business. I was really pleased to launch coming back. my new company with a specifically designed wholesale He says: “We are creating a new Gold Star standard for system that covered all its operations. The Sanderson team wholesaling concentrating on ‘Service, Value, Choice’ which were very helpful and supportive throughout the implemenhas brought customers back in quick and happy.” He says tation.” staff are chosen for their warmth and Another part of the trade he was friendliness, and they welcome every familiar with from his days at Natco customer, making it a pleasure for Cash & Carry was the Today’s Group, them to do business with Gold Star. and he says the team from their head The company aims to provide a full office were very helpful. range of products for its customers so Thanwani comments: “Today’s that it can provide for all their needs. Group has been tremendous in Thanwani states: “It is still early to Vijay Thanwani, Gold Star’s supporting us to set up and open determine the exact sales mix as accounts with suppliers at the best being new we are constantly reviewmanaging director terms. We joined at the right time as ing and making changes. However, we managing director Bill Laird is driving the business to a new are listening to our customers and listing what they want, model.” rather than what we want. World foods and world drinks are The feeling is clearly reciprocated because at the recent our fastest growing categories.” Today’s Group silver anniversary Stoneleigh Awards Dinner When it comes to suppliers, Thanwani confirms that most held at the Chesford Grange, Kenilworth, Gold Star was of the companies that they deal with have been very highly commended as a ‘rising star’ in the sector. supportive of the new depot. He adds: “Suppliers are pivotal West London, where Gold Star is based, is a particularly to our business’s success and we have received good competitive area for wholesalers, with depots run by both support from many of the companies I have known from the biggest players and smaller independents and specialists Natco.”

‘We are listening to our customers and listing what they want, rather than what we want’

The depot in Harrow has been made as welcoming as possible for customers.

Cash & Carry Management

• August 2012 • 15

interview Having got the cash & carry side of the business up and running, Gold Star is looking to enhance its customer service by offering a delivered service. Customers can place orders by phone, email or fax for quantities from one cage right up to full pallet orders, and have them delivered by the Express Gold Star service. Thanwani says: “The launch of Express Gold Star offers a fast and efficient delivery service, saving the customer considerable time and effectively bringing the depot to the customer’s doorstep.” The delivered service is still in its infancy, he points out, so it is too early to give a breakdown of its sales, but its catchment area covers north-west and west London. Looking ahead, Thanwani is reluctant to give too much away about his plans, but he believes technology will play a growing role in the business. He says: “Information technology is no longer about the future, it is about now. We have invested in the latest systems with plans to support our customers so they can operate at the same level as a CTN multiple. “We will soon be launching ‘Click & Collect’ whereby customers can order and pay online and come in and collect when it suits them seven days a week.” A turnover of £50m from a standing start in five years sounds like a daunting target, but Thanwani says that after hitting his first year’s target and being on course in year two, he is confident it can be achieved.

The cash & carry stocks a full range of products, with world foods and world drinks the fastest growing categories.

Gold Star staff are chosen for their warmth and friendliness.


• Cash & Carry Management • August 2012

Best Cash & Carry Depot

Achievers Awards Dinner

Corporate Responsibility Award

Thursday 21 February 2013 Sheraton Grand, Edinburgh

Best Symbol Group

Best Delivered Operation - Retail

Best Delivered Operation - On-Trade

Now in its 11th year, Scottish Wholesale Achievers, operated by the Scottish Wholesale Association (SWA) in partnership with Cash & Carry Management incorporating Delivered Wholesaler, continues to raise standards and reward outstanding performance across the trade in Scotland. This unique scheme will culminate in a prestigious awards dinner, to be held on Thursday 21 February 2013 at the Sheraton Grand, Edinburgh. Dress is black tie. To secure your table, complete the form below and return to Kate Salmon, SWA executive director. Please note that this event always sells out within a few weeks of tickets going on sale.

Best Delivered Operation - Foodservice

BOOKING FORM Table of 10 including champagne reception and four-course dinner with wine: £2,250 plus £450.00 (VAT)

Great Place to Work

Single ticket: £250 plus £50.00 (VAT) NAME OF COMPANY............................................................................................................................................ ADDRESS..............................................................................................................................................................

Best Marketing Initiative

............................................................................................................................................................................ PERSON DEALING WITH BOOKING...................................................................................................................... TEL NO......................................................................... EMAIL............................................................................

Employee of the Year

Number of tables

Cost at £2,700.00 per table of 10

Number of single tickets

Cost at £300.00 per single ticket

Total cost including VAT @ 20%

Champion of Champions

To book accommodation at the special SWA rate, contact Yvonne Cashin at YCashin Events. E-mail: Send form with remittance to Kate Salmon, Executive Director, Scottish Wholesale Association, 30 McDonald Place, Edinburgh, EH7 4NH.

Supplier Sales Executive of the Year

For office use only SWA invoice number..........................................................................VAT registration number: 269 2437 33 Tax point - date of receipt of remittance ........................................................................................................

supplier strategy

A decade of profitable growth While the Kerrymaid label is Kerry Group’s pride in UK foodservice, there’s lots more besides. Kerry Group, with 24,000 employees worldwide, has enjoyed McDonald’s and KFC and several major pub groups. a 10-year pattern of profitability which must be the envy of He says: “At one time we marketed six or seven dairy many such global food manufacturers. Each year since 2002 brands. But two years ago we integrated them under the there has been regular growth in trading profit, culminating existing Kerrymaid name, which covers spreads, cheese and in 500.5m euros for the Tralee-based group last year – up cheese slices, custard, cream and ice cream. from 470.2m euros in the previous 12 months. Turnover last “In addition to the UK & Ireland, we have foodservice year was up 342m euros to 5.3bn. interests in the US, Asia Pacific and other parts of Europe.” Yet try to ascertain what percentage of these figures is On the consumer side, Kerry’s chilled food interests are down to UK trading and you hit a headed by Wall’s and Richmond brick wall. Wary of the corporate sausages, and Mattesson’s cooked diktat, Will Richards, who is commeats. These are delivered both mercial director of the UK foodserdirectly to independent retailers and vice business, bites his lip. to C&Cs by more than 300 vans. The only real indicators can be Another part of the business is seen in the annual report, which the Green’s and Homepride home Will Richards, Kerry Foodservice’s show that consumer foods – largely baking operation, acquired in 1998. commercial director located in the UK & Ireland – last year Also under Richards’ remit is the accounted for 23% of trading profit Da Vinci beverage brand, bought six and 31% of sales. The much larger ingredients & flavours years ago. It supplies coffee syrups and dessert and chocoside, spread around the world, represents the lion’s share. late sauces and is described by him as “a gourmet beverage Richards, in his early 50s, and a foodservice veteran, is solution to maintain the artistry of coffee”. understandably regretful about the recent demise of DBC. He The third major part of his brief covers the Margetts fruit worked for the company for four years, leaving 13 years ago fillings and toppings, preserves and meat accompaniments as director of marketing. business (largely in 3kg and 2.5kg tubs), conducted through At that point he moved to Kerry Foodservice, becoming delivered foodservice wholesalers and C&Cs. commercial director two years later. Richards is quick to point out, however: “Kerrymaid is by The company’s business is conducted not only through far our biggest foodservice brand. Nobody else offers such a delivered wholesalers, but also through the leading cash & comprehensive dairy range under one name.” carry groups and their members, as well as global chains For the retail multiples, the group produces a wide selecwith a major presence in the UK. tion of chilled and frozen foods under own label. Richards hesitates to mention names in this context, but A blot on Kerry’s employment record occurred last year they are understood to include such restaurant giants as when, just months after acquiring Grimsby-based frozen food supplier Headland Foods for £15m, the site was closed with the loss of 330 staff, transferring production elsewhere within the group. Under Richards is a team of 11 account managers, the more senior ones dealing with the likes of Brakes and Booker. Putting into context what might appear to be a modest number reporting to him, Richards says: “Some 20 years ago there were far more, and far greater, sales forces. But the days of having more than 80 people on the road are long gone.” And lapsing into reflective mood again, not only does he say “such a shame” when talking about the DBC demise, but he also casts his mind much further back when the likes of Watson & Philip and Cearns & Brown were still powers in the business. “Now, while there are two main players in foodservice, you also have to consider Booker, which is growing all the time and has big plans Richards with the group’s major foodservice label. for its new Chef Direct operation.”

‘Nobody else offers such a comprehensive dairy range under one name’


• Cash & Carry Management • August 2012



Some things are even better together. Caravan and Sweet Charity are merging. Because by joining forces we can help even more grocery people facing hardship. So to help them and the 4,500 people we currently support, let’s all work together. For more information visit, or call our dedicated helpline on 08088 02 11 22.

From factory to store we’re your charity. Caravan is the trading name of the National Grocers Benevolent Fund, A Registered Charity Reg. No 1095897 (England & Wales) & SCO39255 (Scotland). A company limited by guarantee, registered in England and Wales No 4620683. Sweet Charity is the working name of The Confectioners Benevolent Fund. A Registered Charity Reg. No 1109578 & SCO38665 (Scotland). A company limited by guarantee registered in England and Wales No 5425493.


Ready for sales growth? The ready-to-drink (RTD) sector is worth £636 million across both the on-trade and the off-trade (Nielsen 23.6.12 and CGA 12.5.12), with premix drinks valued at £64 million (Nielsen MAT £ sales data to 26.5.12). Both RTDs and premixes are showing strong growth, and more households bought RTDs in the last year than vodka (Kantar Worldpanel MAT penetration Sept 11). A wealth of activity from manufacturers is generating excitement in the trade and among consumers. WKD’s share of the RTD category is greater than the combined shares of the No.2 and No.3 RTD brands and, following the successful 2011 launch of WKD Purple, WKD now has four of the top 10 RTD variants in the impulse sector (Nielsen Scantrack impulse take home RTD category volume MAT to 23.6.12). Now Beverage Brands has introduced promotional 8 x 275ml packs of WKD Blue to build on its position as category leader. Until September, the special packs will be available exclusively to independent retailers via cash & carry and wholesale stockists. Using a fully-enclosed box format, the eightpacks have strong shelf stand-out. Debs Carter, marketing director of WKD, says: “Whilst they have seen a strong growth in sales recently, the eightpack is an under-utilised format in the RTD category. We’d recommend that independents take full advantage of the sales potential by stocking the exclusive WKD eight-packs.” The new packs are the latest component in the brand’s ‘WKD Weekends – Bring It On!’ campaign. The promotional theme is utilising a new form of interactive packaging to link consumers with digital content. Consumers directly view WKD’s augmented reality (AR) activity via the packs. A series of evolving AR content imagery is being used throughout 2012. This summer, via the eight-packs, consumers can view the WKD Cocktail Recipe Maker which enables consumers to create a series of cocktail recipes by selecting their favourite WKD variant. In addition, by utilising augmented reality on the individual 275ml bottle labels, consumers can access WKD’s ‘Big Head’ free app which lets them supersize their own head and make it as large as that of WKD character, Head of Weekends. As well as the augmented reality activity, WKD is being supported with a comprehensive 2012 marketing package which includes tv, press and digital advertising. Earlier this year, WKD introduced price-marked versions of both its 4 x 275ml packs and its 70cl single bottles. The £4.99 promotional four-packs are being sold exclusively through the cash & carry and wholesale sector, and will be available until the end of the year. In July, WKD extended the price-marked activity to all four of its 70cl bottle variants: Blue, Iron Brew, Red and Purple. Available exclusively to independents via participating cash & carries/wholesalers until September, the packs are flashed with ‘Only £2.99 – Result!’ on peel-off promotional neck labels. The trade case outers also have a prominent flash stating ‘Special Price – £11.99’. Says Carter: “The introduction of the price-marked packs has provided independent retailers with exclusive offers in


• Cash & Carry Management • August 2012

WKD provides heavyweight support for cash & carries.

strong value-for-money formats which deliver good cash margins and meet growing consumer demand for PMPs.” PoS materials are available to cash & carries and retailers. All data unless stated: Nielsen Scantrack GB total take home RTD category volume (L) & value (£) share, MAT to 23.6.12.

Strong in convenience The No.1 premix drink in the convenience channel is Jack Daniel’s & Cola, which is growing at 74.3% (AC Nielsen MAT £ sales data to 26.5.12). Part of the Bacardi Brown-Forman Brands portfolio, Jack Daniel’s & Cola is also growing ahead of the category in the total off-trade, with 26.4% volume and 35% value growth (Nielsen MAT to 26.5.12 GB off-trade). A range of PoS material, including open/closed signs, shelf wobblers and barkers, posters, window and fridge stickers, is available to help retailers maximise sales of the product, which comes in a 330ml can. Matthew Critchlow, director of sales convenience, says: “Premix drinks remain popular because they tap into

rtds consumers’ need for chilled ready-to-drink solutions for immediate consumption. This makes them perfect for events such as picnics, BBQs, festivals or ‘Great Nights In’. With the trend for at home drinking showing no sign of abating, retailers should make sure they stock up to take advantage of this demand.” He adds: “Offering an entry level price point to the spirits category, premix variants are often purchased by younger adult drinkers who are drawn to the convenience factor. With large bottles of spirits perceived as expensive by younger adult shoppers, premix cans present retailers with the chance to add incremental sales by tapping into this audience.” Critchlow anticipated a boost in demand during the Olympics as research showed that more than a third of consumers planned to purchase alcoholic drinks to entertain at home during the Games. In addition to Jack Daniel’s & Cola, BBFB offers Jack Daniel’s & Ginger and Eristoff Vodka & Cola. The company also recently launched a Southern Comfort Cherry & Cola 250ml premix can, which joins Southern Comfort & Cola and Southern Comfort Lemonade & Lime. As the No.1 rum in the UK, Bacardi is worth over £360m. The brand’s most popular premix variant, Bacardi & Cola, is growing at 110.9%, while Bacardi & Cola Zero is tapping into the trend for ‘skinny’ serves. Other Bacardi premixes are Bacardi Gold & Ginger Beer, Bacardi Originals Mojito and Bacardi Originals Cuba Libre. Critchlow emphasises the importance of retailers selling premix drinks chilled. “78% of consumers intend to consume premix on the day of purchase so having them fully stocked and chilled is a must (Alcovision).”

VK promotion runs until October.


• Cash & Carry Management • August 2012

BBFB recently launched a new trade support programme, ‘Your Store’, to assist the convenience channel in driving sales of spirits, RTDs and sparkling wine. Through, the company is giving category, range and merchandising advice tailored to suit any store type. The website also offers downloadable PoS material to support promotions and key in-store events, and it will host regular competitions for retailers.

‘Biggest ever’ Global Brands’ brightest and biggest ever promotion for VK, ‘Win the Ultimate VKend’, is appearing on the neon neck tags of 18 million bottles until October. VK has partnered with some big brand names, including Club 18-30 holidays, Barry M cosmetics and Zavvi music, to offer every VK consumer a weekendenhancing prize. The on-trade received visibility kits to encourage consumers to enter the competition, and the campaign is being bolstered by social media activity. Global Brands’ marketing director Simon Green says: “Striking PoS, the promotion of long drinks and pitchers and ensuring there is a wide range of refreshing, chilled flavours available can help boost RTD sales. Also, social media is a hugely influential tool for connecting with target consumers and allows retailers to boost awareness and alert fans when special drinks offers are on.” As part of the ‘retro revolution’, Global Brands has relaunched Hooch, the original lemon RTD. Hooch Alcoholic Lemon Brew is back on the market almost a decade since it was last available in the UK. The iconic brand, which contains real fruit juice, features the new tagline, ‘Refreshment with Bite’. Global Brands signed a licensing agreement with Molson Coors Brewing Company to distribute Hooch in the UK. Available in distinctive 500ml bottles, Hooch is now designed to be served over ice and is a competitor for fruit beers and ciders. It is targeted primarily at 18 to 35 year-old men. Green comments: “For retro brands to be relaunched successfully, they must draw on positive associations of past times by retaining the brand’s authenticity, whilst also connecting with today’s consumers who are seeing the brand for the first time. Hooch delivers on all points as it has a loyal following, and the new, ‘over ice’ serve is popular with the current generation of drinkers.” The company’s investment package for on and off-trade outlets is focusing on supporting customers to promote the awareness of Hooch’s return and the brand’s ‘over ice’ serve. Global Brands also recently unveiled a new look for Reef as part of a £400,000 marketing campaign to revive what is the only still RTD on the market. Orange and Passionfruit Reef (4% abv) contains 42% fruit juice, which is more than any other RTD. The campaign

rtds is aimed at establishing Reef as the perfect summer drink due to its refreshing, still taste profile and its mixability. Available in a 275ml bottle, Reef currently has distribution in over 9,000 outlets. “Reef is already a widely recognised brand and we’re confident that our significant customer support relaunch package will successfully re-engage former Reef fans and win new ones,” says Green.

‘Different audience’ In May, Accolade Wines launched the Sparkling Collection of ready-to-serve drinks in 250ml cans into the off-trade. The range includes Hardys Peach Bellini and Hardys Strawberry Bellini (both 5.5% abv, rsp £1.85); Banrock Station Infusions Summer Berries (5.5% abv, rsp £1.85); Stone’s Ginger Punch (5.4% abv, rsp £1.85); and Echo Falls Spritz Pinot Grigio and Echo Falls Spritz White Zinfandel Rosé (both 4% abv and rsp £1.49). Clare Griffiths, European marketing director for Accolade Wines, says: “The Sparkling Collection is specifically geared towards female consumers aged 25-35 years old, which is very different to the audience in which most RTDs and alcoholic ginger beer are engaging with.” Accolade Wines is supporting The Sparkling Collection in the off-trade with print advertising, social media and in-store displays. In addition, Stone’s has benefited from specific advertising for the limited-edition Union Jack packaging. All through the summer, Diageo GB and Coca-Cola Enterprises are supporting their portfolio of British brands with a campaign entitled ‘A Celebratory British Summer’. Limited-edition premix cans of Gordon’s Gin & Tonic and Pimm’s & Lemonade feature Union Flag designs, offering great standout on shelf. Diageo has invested strongly in premix over the last year resulting in 67% growth from £18 million to £30 million. Last year saw five additions to the line-up of ready-to-serve drinks: Smirnoff & Diet Cola, Archers & Lemonade, Bell’s & Ginger Ale, Smirnoff Lime & Cola and Gordon’s & Bitter Lemon. Roz Nash, senior category development manager, RTM & convenience, says: “The 14-can range is popular with consumers as it provides the perfect serve and gives consumers the confidence to serve spirits and mixers at home. “With such a strong opportunity for convenience stores to cash in on premix, wholesalers should ensure they make their offering as visible as possible with striking PoS. A comprehensive range of premix drinks should be stocked so that retailers can target a wider range of shoppers looking for convenient serves, or a quick purchase.” With 51% of Sourz drinkers drinking RTDs, Maxxium felt the time was right to introduce an RTD based on the noncream liqueur brand. “However, we knew that we needed to stand out from the competition and, importantly, give a refreshing alternative,” says a company spokesman. With a lightly sparkling format, new RTD Sourz Fusionz brings the Sourz brand into different consumption occasions. The product is available in Apple Bite and Purple Twist styles, in 275ml bottles for the on-trade (rsp £1.79), 24 to a case, and 330ml cans (rsp £2.11) and 700ml cans (rsp. £3.33) for the off-trade, both 12 to a case.


• Cash & Carry Management • August 2012

Bringing Sourz into new consumption occasions.

This year sees investment of over £10 million in the Sourz brand with a fully integrated ‘Get Sorted For…’ campaign, which includes Sourz and Sourz Fusionz TV commercials, partnerships with MTV, Capital FM, more! and FHM, a national sampling campaign, consumer promotions and bespoke trade support. There will be experiential activity at three festivals and in six cities across the UK. The campaign will be underpinned by digital and social media activity. This summer, Pernod Ricard has added a new product to its Malibu cans portfolio – Malibu & Cloudy Lemonade. Combining the traditional taste of cloudy lemonade with a Caribbean twist, Malibu & Cloudy Lemonade is available in a 250ml can with an rsp of £1.99. The new addition follows the successful launch of the brand’s range of pouches and cans last year. Patrick Venning, marketing director at Pernod Ricard, says: “Malibu cans present a significant impulse opportunity for retailers, with 77% of Malibu can purchases unplanned. There is longer term growth potential in Malibu cans, given that 88% of Malibu can consumers say they would repurchase. To help retailers realise this opportunity, we have created our ‘Summer Starts with Malibu’ campaign, supporting the trade at point-of-sale with activation materials.” Malibu & Cloudy Lemonade launched on the ‘Malibu VIP’ Facebook app and featured at the brand’s ‘Malibutique’ events this summer in Cardiff, Liverpool and Birmingham.

For further information: Accolade Wines (01483) 690000 Bacardi Brown-Forman Brands (01962) 762100 Beverage Brands (01452) 378555 Coca-Cola Enterprises (08457) 227222 Diageo GB 020-8978 6000 Global Brands (01246) 216000 Maxxium (01786) 430500 Pernod Ricard 020-8538 4000

Jack Daniel’s & Cola is the number 1 premix brand in Impulse* • Jack Daniel’s & Cola is growing at 90.5 % MAT volume more than twice as fast as the overall Impulse premix category* • In addition Jack Daniel’s & Cola accounts for over 28% of Total premix sales within Impulse* • Consumer research shows that Jack Daniel’s premix is most commonly consumed ‘on the move’ and therefore needs to be chilled**

To find out more and where to order please contact Bacardi Brown-Forman Brands Customer Services on

01962 762100 * Source AC Nielsen 26 May 2012

**Source: 2CV Qualitative premix research – July 2011

Just chill and enjoy responsibly. For the facts Copyright © 2012 JACK DANIEL’S. All rights reserved. JACK DANIEL’S and OLD NO.7 are registered trademarks. 6660002070


A major aspect of wholesale

The above image is taken from the Booker website and gives an indication of the range of catering products available to the company’s customers. Similar graphics could just as easily be used to illustrate the importance of this segment to a host of other leading cash & carry operators. As for Booker, catering customers (326,000) far outweigh independent retailers (78,000), although retail spending is more than double that of caterers. What follows gives an idea of the activity in this sector by some of the major manufacturers. Kenco Refill from Kraft Foods, the product that is claimed to have revolutionised sustainable packaging in the retail coffee market, is now available in a 650g refill pack for away-fromhome use. Trade communications manager Susan Nash says: “It enables caterers to continue to deliver excellence to consumers through the provision of premium quality coffee at a great price.” The format has 84% less packaging weight than composite tubs and reduces storage and shelf requirements. It also offers customers and consumers ‘the promise of a trusted premium brand’. In the retail sector, Kenco Refill is said to have contributed significantly to volume growth of the Kenco brand over the past two years (Nielsen MAT 15/4/12). Nash says that more people now buy refill packs (16.25% penetration) than jars (13.78%). “By offering a premium coffee with reduced packaging, we hope more and more caterers will choose Kenco to serve


• Cash & Carry Management • August 2012

in the workplace. After all, serving such a trusted and well loved brand can make a real difference to their customers’ perceptions. “Kenco 650g Refill offers quality and flexibility, encouraging customers to upgrade to premium coffee. C&C/wholesalers should look to stock early to help maximise this opportunity.”

Additional flavours Five more flavours have been added to the Heinz Kitchen range from Heinz Foodservice: Lager & Lime BBQ, Fiery Marrakesh, Flamin’ Cajun, Rocky Mountain Maple and Steakhouse Supreme. They join the existing styles in the 930ml squeezy ‘centre of plate’ sauces selection, created specially for the foodservice market by the company’s culinary development chefs. Research shows that 28% of all out-of-home diners and 43% of 18 to 34-year-olds are more likely to try new flavours than a year earlier. And 39% of out-of-home diners prefer venues offering unique or original flavours. “So the new sauces offer professional chefs a risk-free and versatile solution,” says brand manager Daisy Lewis. “This can be used in and around their best-selling dishes, such as marinades, bastes and dips, to create mouth-watering flavour combinations.” She adds that, as well as flavour opportunities, the quality assurance that the Heinz brand gives to consumers means that outlets can build margins on items containing the centre-of-plate sauces.


How do you save time creating a lasagne? Bottle it.

For further information on all our ranges and recipes please visit ™/®/designs/© Mars 2012

catering Lewis says that outlets can do this by bringing the backof-house sauces ‘alive’ front of house, featuring them on menus and leveraging the variety of merchandising solutions to include branded ramekins, beer mats and cocktail flags. This increases brand visibility, reassures the customer of the quality being offered, allows price mark-up to increase profit and offers a range of appealing menus. Complementing popular foods such as burgers, steak, grilled chicken and fish, the sauces, in the squeezy format, allow for easy and controlled application, help reduce wastage, keep overheads low and have an eight-week from open shelf life. Lewis comments: “We’ve taken a lot of time researching what modern consumers are looking for from eating out and we have identified three key trend platforms: heat, modern classics and safe adventures. “As a result, we have pushed the boundaries and created these five unique sauces, each packed with bold and exotic flavours, which allow chefs to confidently and cost-effectively enhance their best-selling dishes.” The existing styles in the range are: Lemon & Black Pepper Salad Cream, Classic Burger Sauce and Fire Cracker Sauce. Heinz Foodservice has also extended its range of individual sauce pods by launching SqueezMe! Amoy Sweet Chilli Sauce, which it claims is the first branded sweet chilli portion pack on the market. Brand manager Shireen Hamdy says: “Sweet chilli has become a favourite over the years. Not only does the Amoy product work well with traditional Asian cuisine, but it is also a great accompaniment to an array of other foods, such as chips, wedges, chicken and fish. “It also provides a simple and cost-effective way for foodservice operators to spice up their menu with a modern offering.” Hamdy adds that research shows 96% of customers would pay a minimum of 20p per SqueezMe! portion because not only does it contain three times the amount of sauce in a regular sachet, but it is easier to dispense. “We are confident it will be a huge hit with consumers as there has been strong growth in hot sauces in the UK in

recent years. As outlets are able to charge for the pods, they are also a good revenue driver as well as meeting the demand of an ever more sophisticated consumer base.” The Heinz SqueezMe! pods range also includes (under the Heinz name) Tomato Ketchup, Salad Cream, Mayonnaise, Garlic Mayonnaise and Tartare Sauce, as well as HP Sauce and HP BBQ sauce. Data: For Heinz Kitchen sauces Menumonitor 2011, for SqueezMe! independent research February 2010.

Expecting more Sarah Gray, marketing manager of Mars Foodservice, describes catering as something of a minefield, with consumers expecting more and having greater awareness of health concerns and their dietary requirements. Caterers, too, are more pressed for time, they can find themselves with a limited skill base and, with the continued recession, there is pressure on budgets and margins. The company, responsible for Uncle Ben’s and Dolmio cooking sauces, has over 50 years’ expertise in providing solutions for foodservice operators, and it continues to meet the needs of a constantly changing industry. Gray comments: “We have a long history supporting UK caterers and we are committed to further exploring how we can help them. One way is to work with wholesalers and cash & carries to ensure the right products are available. This, in turn, benefits these channels.” She adds that the 21-strong range of cooking sauces under the two brand names plays a key role in the C&C/wholesale sector. “Each sauce has undergone a major reformulation. We have been doing some activity to deliver added value to the promotional programme. “Display and awareness is key in cash & carries and we encourage our customers to highlight deals and products in-depot and in brochures to help end-users find great offers easily. We perpetuate this through good communications and trust. “Mars Foodservice can offer the C&C/wholesale channel a range of support, including promotional days with our development chef.” This way, says Gray, the company can show caterers the sauces’ benefits, which can be highlighted before or at the point of sale. “We have, for instance, demonstrated the Indian sauces’ versatility by cooking up variations on traditional meatballs,

Heinz Tomato Ketchup in a squeezy bottle – easy to use without interrupting conversation.


• Cash & Carry Management • August 2012

catering swapping beef and pork for turkey and single product due to space, rather than lamb mince, right through to tikka masala multi-deal promotions? Try different things. Linking the new as a marinade for fish. Dolmio lasagne sauces to lasagne pasta “Special packs such as the Uncle Ben’s sheets is a great way to drive volume and long grain rice, 100% extra free, and runpotentially get customers to buy into new ning promotional deals with high value products they have not tried before. prizes, make selling that much easier for Do you really need five tikka masala C&Cs. We also provide support to sauces? Look at range consolidation for C&C/wholesalers and their customers better pricing from suppliers. through advertising, brochure support, Gray comments: “It’s all about working added incentive and fun with telesales and together with Mars Foodservice as a team. field sales activities.” If something isn’t working, tell your Dolmio Tomato Sauce for Lasagne and account manager so they can look at alterCreamy Sauce for Lasagne are recently native solutions. No point flogging a dead introduced products, Gray saying that horse!” lasagne sauces are the most requested The company’s top five selling skus in NPD in foodservice. foodservice are: Dolmio Tomato & Basil (2 The tomato sauce (76% tomato based) x 2.27kg), Uncle Ben’s Sweet & Sour Sauce builds on the success of the brand’s (2 x 2.43kg), Uncle Ben’s Tikka Masala Bolognese and Tomato & Basil Sauce, but Sauce (2 x 2.24kg), Dolmio Bolognese (2 x is smoother in consistency. The creamy 2.28kg) and Uncle Ben’s Sweet Thai Chilli variety can be used in ‘everything from (2 x 2.54kg). cauliflower cheese to salmon filo parcels’. Both come in 2.18-2.28kg jars and have a One of two new sauces for lasagne. 12-month shelf life. Uncle Ben’s and Dolmio have also launched a foodservice The latest product from cleaning products manufacturer campaign to highlight how much time chefs can save with no Diversey is Surf Small & Mighty in a 4 x 4-litre pack. compromise on quality by using these cooking sauces. It joins the existing Persil branded line which comes in the ‘See It For Yourself’ comes on the back of a project with same packaging format. And, like its ‘sister’, it can provide University College Birmingham (UCB), which put 10 recipes 114 washes. using the sauces to the test over the last year. The company makes products for every aspect of kitchen, The idea of the tests, conducted by trainee chefs, was to washroom, laundry and general cleaning. It claims to offer ‘some of the best known and industry leading brands, developed specifically for small businesses and professional users who need exceptional quality and value for money at their local cash & carry’. Says executive Leon Wright: Sarah Gray, marketing manager, “Like Persil Small & Mighty, the Mars Foodservice Surf product offers incredible value for money. It has an easy-to-use dosing cap for check the recipes devised by the Uncle Ben’s and Dolmio both convenience and development team and inspire chefs to look at convenience cost-effectiveness. products instead of exclusively ‘scratch making’. “It also has added Says Gray: “We recognise that there are preconceptions pre-treaters to improve about ready-to-use products in foodservice, but, through cleaning performance ‘See It For Yourself’, we hope to show caterers they can play and is great at attacka key role in today’s commercial kitchens.” ing stains caused by Uncle Ben’s and Dolmio ready-to-use sauces are based on grease, oil and recipes from Italy, the Far East, India and the Deep South. blood.” Each sauce is described as ‘robust and hearty, offering a yield Wright added: “It that might surprise the most vociferous sceptic, while leavhas been designed to ing plenty of room for a caterer’s own creativity’. wash clothes as low Gray advises C&C/wholesalers: Work with your Mars Foodservice account manager to as 15 deg, leading develop a sales strategy that suits your customers’ requireto performance and ments. energy efficiency in a Ensure promotions are what your customer base needs. cycle of just 30 Would a small catering establishment prefer price down on a minutes.”

Two big brands

‘We hope to show caterers that ready-to-use products can play a key role in commercial kitchens’

• •


• Cash & Carry Management • August 2012

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catering Foodservice manager Yorkshire Tea, the Taylors of Harrogate brand, is best known in the UK for its connections with the retail multiples. But there’s more to the supplier than just this channel. Not only has it been developing its export trade and pumping more more money into advertising, but it is also bent on securing a lucrative niche in the C&C/wholesale channel, as well as in foodservice. Indeed, says out-of-home and convenience controller John Sutcliffe, the company will shortly be announcing the appointment of a national account manager specifically for foodservice. “I am the channel controller, with Matthew Huffer as our sales director. The channel team also includes Steve Evans, Nick West and Tanya Webster, all of whom contribute to driving growth and success in the channel.” Commenting on the foodservice/catering sector, Sutcliffe says: “We carry the appropriate core range for Yorkshire Tea and our Taylors of Harrogate speciality and roast & ground coffee products. “For Yorkshire Tea, we have a one-cup format in large catering polybags and we also have envelope products for different sectors of the out-of-home channel. “Our main focus on speciality tea is to ensure we concentrate on the main skus: Earl Grey, English Breakfast, Peppermint, Green and Fruit teas, all of which are available in an envelope and naked bag format. Coffee is available in ground and bean styles. “We are also looking at NPD and will enhance our offering as we continue our progression in the out-of-home channel.”

Now going places in foodservice/catering.

The company’s three top sellers in foodservice/catering are: 1. Yorkshire Tea 1,200s, 2. 100 envelopes and 3. 600s. Sutcliffe refutes suggestions that the C&C/wholesale channel is a limited area for Yorkshire Tea, which has been making strides with 3663. He says: “We will will continue to focus on this as a key development area in out-of-home.

THIS BURGER’S A CUT ABOVE THE OTHERS! Following a competition mounted by Heinz Foodservice and 3663, the man judged to have created Britain’s favourite burger has been found. He is Chris Norfolk, head chef at the Elm Tree pub, in Elmton, Derbyshire. His 31-day matured steak burger with Stilton & jalapenos was the dish among the 12 final entries that most impressed the judges, who included chefs from both the food manufacturer and foodservice specialist, as well as Masterchef winner, Tim Anderson (third left). Also among those pictured are Ben Wilson (second left), representing the Elm Tree; Andy Bacon (centre), Heinz Foodservice chef; and Lucas Williams (third right), 3663 chef.


• Cash & Carry Management • August 2012

Makes Great Scents!

Surf is a registered trademark of Unilever.

catering “With 3663, we are a category B partner and are using this relationship to ensure we work with them to develop their hot beverages sector and bring a new offer to their independent and national accounts. “The main sku development comes from our polybag range, but we will introduce some NPD to bring in new customers to our products and offer the consumer something different within hot beverages.” Sutcliffe adds that the company is working with “as many wholesalers as possible,” adding: “We have just gained a listing for Yorkshire Tea 1,200s with Booker and we have a good range in Makro. Costco are performing really well with our two-cup 480s and we also have some delivered wholesalers on board, such as Creed Foodservice, who deliver our products to National Trust sites.” Other ‘names’ in the C&C/wholesale channel with which the supplier has connections are Today’s Group, Landmark Wholesale and Bestway/Batleys. Sutcliffe comments: “This is a key growth area for us and we will continue to support this channel with the right packs and the right promotions to assist in developing the foodservice category.”

‘We have put a lot of effort into catering. As a result, catering pack sales have seen double-digit growth’ David Gilroy, operations director, Bestway Group In addition to its domestic business, the company has developed an export side which is valued at £4m a year. The key territory is North America, but trade with various European countries is growing. Asked what percentage of turnover could come from C&C/wholesale if progress is made at the current rate, Sutcliffe comments: “It’s difficult to gauge at the moment, but our aim is to achieve double-digit growth over the next two years.” He offers this key message: “At Taylors, we are committed to driving growth outside of our core retail business. This will come from the C&C/wholesale and out-of-home channels. We feel we currently have the right range and we will continue to look at new opportunities. We are also resourcing the business to manage our development. “As well as bringing in a new account manager to work solely in the out-of-home channel, we are close to recruiting a specialist foodservice PR team to further enhance our presence in this sector.”

Branded and own-label push Bestway Group, once known purely for its retail packs, is now making a push into the catering sector – not only with branded products but also with its own-label range. Operations director David Gilroy says: “We introduced our BIG pack deals last year and we believe they stand out well in terms of the offer to our foodservice customers.


• Cash & Carry Management • August 2012

Catering non-foods are kept in a separate area to food in Bestway cash & carries.

“Our 3kg pasta selection is proving to be very popular, as are our new condiment sauces. “We have put a lot of effort into catering within both Bestway and Batleys C&Cs and, as a result, catering pack sales overall have experienced double-digit growth.” Gilroy comments: “In non-food, branded detergents are performing well. We put this down to the fact that there is a gap in the multiple trade. “As for looking ahead in this channel, we feel that Nestlé coffees could be the real mover.” In Bestway branches, all catering aisles are flyposted. Catering foods are merchandised with grocery and ambient lines, but non-food is kept in a separate department.

For further information: Diversey (0800) 525 525 Heinz Foodservice (0800) 575755 Kraft Foods (01242) 236101 Mars Foodservice (0800) 952 0011 Taylors of Harrogate (01423) 814000

employment law

Volunteers and interns Human resources expert Cate Ritchie (right) offers guidance on providing work experience. In an age when the economy is under strain, students and graduates are increasingly approaching businesses for an opportunity to work for free, to bolster their experience and CV. What should you remember before engaging in this type of arrangement? Volunteers There is no formal legal definition of a volunteer, but it is generally thought that a volunteer is someone who spends time, unpaid (apart from out-of-pocket expenses) doing something for the benefit of a third party (other than, or in addition to, for close relatives). A major issue to be concerned with in relation to volunteers is their employment status — and therefore whether they acquire the rights associated with being an employee and protection from discrimination. Genuine volunteers do not have these rights and protections. To establish entitlement to any of these rights, the volunteer first needs to show that he or she has a contract with the organisation concerned. This does not need to be in writing. If there is a contract, then it should next be decided what type of contract it is (ie whether it makes the individual an employee). There is a series of cases which show the factors to consider when determining a volunteer’s status and therefore his or her rights. These are whether: expenses are only paid when the volunteer is out of pocket, or whether they are always paid (in which case they are more likely to amount to pay and the volunteer may be an employee or worker) the volunteer is obliged to volunteer at specific times for a specific period and is entitled to give and receive notice of termination (in which case it demonstrates that there is ‘control’ being exercised by an ‘employer’). the volunteer is provided with training as part of the role (this could amount to a benefit in kind) reimbursement for loss of earnings for time spent volunteering creates an obligation personally to perform the work a uniform or equipment is provided (this could lead to employee status). Wrongly categorising an individual as a volunteer, and therefore not according him or her the rights and protections of a worker or employee, could have serious consequences.

• • • • •

Letters of understanding Assuming a voluntary organisation is seeking to avoid inadvertently conferring employee or worker status on its volunteers, it would be helpful to draw up a ‘letter of understanding’ for the volunteer which: states that the arrangement is intended to be ‘binding in honour only’ and does not seek to create any contractual obligations on the parties confirms that volunteers will receive no pay and will only

be reimbursed for out-of-pocket expenses when they can provide receipts uses flexible, non-contractual sounding language like ‘expectation’, ‘usual’ and ‘suggested’ (ie an expectation feels not as strong as an obligation, a suggestion sounds less than an instruction).

Interns As with volunteers, there is no legal definition of an ‘intern’ and the term is used to cover many types of work experience arrangements. In general, though, the term describes graduates who want to gain some experience of a particular profession. A good rule of thumb is that interns will generally be at least workers (if not employees) and are therefore entitled to the National Minimum Wage (NMW) unless they are volunteers or students undertaking work placements of up to a year as part of a further or higher education course. Organisations should document their arrangements with interns using either a short-form fixed-term contract of employment (for interns paid the NMW or more) or a work experience letter of understanding (for volunteers). If an intern or volunteer claims that they have employee status, despite an organisation believing differently, they may have the right not to be unfairly dismissed, the right to a statutory redundancy payment, and rights to statutory sick pay and to maternity/paternity/adoption leave and pay. They can also claim the right to receive the NMW, protection from unlawful deductions from wages, and the right to rest breaks and to annual leave under the Working Time Regulations 1998. Remember, too, the right not to be discriminated against could result in an entitlement to uncapped compensation for loss of earnings, and an award for injury to feelings.

• •

If you would like assistance with a letter of understanding, or wish to talk to Cate about or any other HR issue, contact her at or phone (0792) 121 3890.

Cash & Carry Management

• August 2012 • 35


Market worth £13.46bn The Government, counterfeiters and smugglers do all they can to make life difficult for the tobacco trade, but this is still a highly lucrative category, valued last year at £13.46bn – up from £12.49bn in 2010. Of this, cigarettes rose from £11.32bn to £11.98bn and RYO tobacco from £1.17bn to £1.48bn (Nielsen MarketTrack). “2011 was a challenging year for Imperial Tobacco,” says Patrick Toms, head of distributive sales. “The tobacco category went through some significant changes, with unprecedentedly high tax increases from the Chancellor, combined with tough economic conditions. This led to growing numbers of tobacco shoppers demonstrating increased value-seeking behaviour and switching to lowerpriced products.” Toms adds that this trend is likely to continue as the 12 million UK adults that choose to smoke are still showing a preference for quality brands that offer value for money. “This has seen sales of the economy-priced JPS Silver range increase month on month, with the brand now holding a market share of over 9%. Windsor Blue is also a strong performer, accounting for around one in 12 packs of cigarettes sold in the UK. “Cigarettes from other price categories are still selling well too; around one in 10 packets of cigarettes purchased in the UK are from the Richmond brand range and Lambert & Butler king size continues to lead the cigarette market with around 12% market share.” Toms advises the trade that tobacco brands from the more premium priced segments should not be overlooked.

Imperial Tobacco’s Patrick Toms: ‘Growing numbers have switched to lower-priced products.’


• Cash & Carry Management • August 2012

Tobacco rooms remain one of the most frequently visited sections of a cash & carry.

“Despite the challenging economic conditions, cigarettes from the premium priced sector still account for around one in four of all packs of cigarettes purchased. Enhanced cash margins provided by brands such as Embassy, Superkings and Lambert & Butler mean they will continue to be important in 2012 and beyond.” He adds: “Tobacco is a fast moving category and we’re seeing a significant amount of product innovation in both the cigarette and RYO segments. All manufacturers need to innovate and update their brands to ensure they stay relevant to adult smokers. “In a crowded market place, tobacco brands need to ensure they reflect the preferences of the adult smokers that choose to purchase them or they will risk brand switching.” Adult smokers, he says, appreciate good looking, quality products that reflect their pricing and do not look ‘dated’. “The new Lambert & Butler Glide Tec packs are a great example of how clever pack modifications add variety and keep brands looking fresh. We have already seen a positive impact from Glide Tec, with L&B king size 20s’ UK market share increasing since the slide open packs were launched.” Toms says that Imperial Tobacco continually undertakes research into the preferences of adult smokers both in the UK and other territories. Looking at the roll-your-own sector, he comments: “There is still plenty to be positive about for retailers of tobacco products, particularly the robust market performances returned by RYO tobacco brands. “This category segment has traditionally been vulnerable to the twin threats of smuggling and counterfeiting, but it has fought back remarkably well over the last few years. In 2011, the volume of RYO sales in UK retail outlets increased by around 12%. “Due to the economic downturn, smokers have shown an increasing propensity to seek value in the cheaper cigarette price sectors. But they don’t stop there. Many are moving into the world of RYO for the economy, control and qualityassurance offered by renowned names such as Golden Virginia, Gold Leaf, Drum and JPS. “This ‘value seeking’ trend is now firmly entrenched in the RYO market and it has seen brands such as Gold Leaf, Golden Virginia Yellow and JPS return hugely successful

tobacco performances. Gold Leaf and Golden Virginia Yellow each hold a market share of over 6%, and this is growing.” Toms says that, over the past three years, retail sales of additive-free RYO tobacco have more than trebled. “Through extensive consumer research, Drum – the world’s second best-selling RYO brand – was identified as being the right brand to launch an additive-free variant. Sold in more the 45 countries across the globe, it has a strong heritage and is synonymous with quality and authenticity. Drum Additive-Free has already had a positive impact on the brand as a whole. “RYO brands that include rolling papers in the offering are becoming more popular. This has seen brands such as Gold Leaf and the new Golden Virginia Handy Packs, which include papers and filters, perform well. However, Imperial Tobacco is still committed to offering retailers a quality range of RYO brands and rolling papers separately.” Toms adds: “This is important because the UK’s No.1 rolling paper, Rizla, is still hugely popular with RYO tobacco smokers and it offers retailers significant profit margins.” He says that the continued growth of RYO represents a great opportunity for C&C/ Available this month. wholesalers “as despite the twin threats posed by counterfeiters and smugglers, retail sales of RYO tobacco continue to increase month on month”. ‘Make your own’ is another area highlighted by Toms. “We have already seen that sales of our JPS cigarettemaking kits, and 50g packs of JPS cigarette tobacco, are growing each month.” As far as cigars are concerned, some 400,000 UK adults smoke them, spending over £275m a year. Imperial Tobacco’s cigar range, which makes over £80m at rsp, includes Classic, Panama, Castella Panatellas and King Edward Coronets. Over the past year, Classic maintained its 25% market share, helping the company’s brands account for 37% of all small cigar sales. In the large category, Castella Panatellas are said to enjoy a share of just under 10%. Toms comments: “The public smoking restrictions have undoubtedly had an impact on the cigar segment, especially in pubs, restaurants and in the workplace.“ Turning his attention to C&C/wholesalers, he says: “They must continue to focus on retailers’ needs and find ways to help them increase their turnover.” As regards price-marked packs, Toms says: “The number of retailers stocking PMPs has increased significantly over the past 12 months and they have become must-buy items.


• Cash & Carry Management • August 2012

“We have been highlighting the importance of including a large range of PMPs to wholesalers to ensure that their range reflects what their retail customers are looking for.” From the middle of this month, Imperial Tobacco’s new Golden Virginia Smooth (Yellow) 8g handy packs will be available across the UK in a £2.50 price-marked pack. They contain a zip-lock tobacco pouch, rolling papers and filter tips, all in one flip-top box. The 8g packs replace the 12.5g handy packs, although the 12.5g Golden Virginia Original (Green) handy packs continue. All data: TGI 2011.

Effects unknown Jeremy Blackburn, head of communications at JTI (Gallaher), believes it is premature to reach conclusions about the effect of the tobacco display ban on the retail multiples and any benefits that might have accrued to the independent channel, where the rules haven’t yet come into force. He told Cash & Carry Management: “If you want some feedback about the effect of the ban, I would say it’s far too early to come to any conclusion. If you were to ask me in, say, six months’ time, we might see some sort of pattern emerging. “Large stores covering up, and small stores displaying, is something of a unique situation. And we still have Scotland, Wales and Northern Ireland to fall into line.” Blackburn offers the independent trade this advice: “Monitor your own sales and note the trends. Avoid out of stocks and keep up with your ranges.” Meanwhile JTI (Gallaher) continues to be vigilant over how its 100 C&C tobacco rooms are being maintained in relation to the new regulations.

‘It’s too early to weigh up trends in tobacco purchases since the display ban in multiples came into force’ Jeremy Blackburn, JTI (Gallaher) head of communications

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tobacco Says Blackburn: “We have a team of 21 people who are dedicated to the distributive trade. They call on head offices of C&C/wholesalers and individual depots. “In the C&C tobacco rooms, we have had to create a display ban environment, which some operators cannot really understand. We can offer guidance on this on our website (” Reflecting on how JT”s brands are performing, Blackburn says: “Amber Leaf is now the No.1 tobacco brand in the UK. That’s including cigarettes (Nielsen MarketTrack 20/4/12). “We are currently running a free prize draw in which three retailers can win a year’s supply of Amber Leaf 12.5g. And a further 21 can win a month’s supply.” He adds: “Sterling is our top-performing value brand in C&C/wholesale. In fact, it is growing across all channels and in all regions. The mid-priced Mayfair brand is going from strength to strength.”

Growing across all channels and in all regions.

Recently, the manufacturer launched the latest addition to its Benson & Hedges range: B&H Dual (rsp £6.93), a capsule cigarette providing smokers with ‘an alternative fresh taste’ by releasing the enclosed capsule. About the trade generally, Blackburn comments: “There is a growing trend in price-marked packs, while RYO and the value category are also growing. This reflects the best possible choice available.” He adds that RYO now represents 28% of the whole tobacco market, with potential for even further growth. “There have been several brand extensions, and we would advise the trade to look at the range of pack sizes: 12.5g, 25g and 50g.”

PMPs for those who want them Scandinavian Tobacco Group UK has come late into the price-marking arena – with Salsa, its new roll-your-own tobacco range. But the format is generally available for those who want it, says head of marketing Alan Graham. “It’s more a service we are now offering retailers direct. If they want it, we will provide the necessary price-marked stickers.”


• Cash & Carry Management • August 2012

STG UK’s Alan Graham: ‘Independents have gained 0.4% in their share of cigars since the display ban in multiples.’

Salsa comes in a 5 x 12.5g pack, with an rsp of £3.35 each. Graham also provides some early indications of the effect of the tobacco display ban on the retail multiple sector. He says: “The multiples have lost some share in cigars, which may have been partly due to the bad weather. They have lost 1.6% since the imposition, and as much as 3% at some point during this period. “Independents, meanwhile, have gained 0.4%; this is against the previous trend where the channel lost some share. But the situation is fluctuating all the time.” Like JTI’s Jeremy Blackburn he says: “Maybe we’ll have a clearer indication in six months’ time.” Graham also reports that STG’s Moments, its value range miniature cigar launched last year, is “doing really well”. He adds that it has become the seventh ranked miniature cigar in the UK. Available in original and blue (“a lighter smoke”), it has an rsp of £3.31 (10 sticks) compared with the company’s brand-leading Café Creme at £4.56. Café Creme claims to have around 60% of the miniature cigar segment, which is said to have grown for seven of the past nine months, bucking the trend for cigars generally. “Value is a growing trend in cigarettes and RYO,” says Graham, “but cigars have been a little slow on the uptake. The segment that has suffered most is panatellas.” In another development, Clan pipe tobacco will shortly be available in a smaller case size for C&C/wholesalers – 5 x 25g, replacing the present 10 pack. The rsp is £5.61. “It might take a little while to drip through to C&C/wholesale,” says Graham, “because they still have larger packs available.” He adds that the Natural American Spirit brand, for which STG UK acquired UK distribution rights earlier this year, is “absolutely flying”. And referring to the supplier’s growing business in the C&C/wholesale channel, Graham picks out Dhamecha as a major customer. “While we work closely with many operators, Dhamecha is one with whom we’re doing particularly well,” he says. “They’re very good at working collaboratively with us. “In the past year they have bent over backwards to help our sales team, enabling us to secure double-digit growth with the company.” A recent innovation by STG UK saw the launch of





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tobacco One of STG UK’s major brands in the cigar category.

limited-edition packaging for Henri Wintermans Half Corona (rsp £8.44) and Corona De Luxe cigars (£4.25) in celebration of the ‘big events’ held in the UK this year. The new look packs are available throughout the summer.

Small, but growing British American Tobacco, which claims to be the second leading tobacco manufacturer in the world, excluding China (the first is Philip Morris), has a relatively small market share in the UK. But it’s growing, says Ian Robertson, head of CORA (Corporate & Regulatory Affairs) in the UK & Ireland. ”We have 8% of the domestic cigarette market and 13.2% in hand-rolling tobacco. This is our highest share since 2001 and comes after a period of continual growth.” By contrast, the supplier claims brand leadership in such countries as South Africa, Brazil and Australia – just three of 180 markets where the company’s products are sold. Robertson adds: “In such a highly competitive market, small steps add up to good progress in the UK. We have plenty of opportunity, with 92% (in cigarettes) still to aim for!”

‘We have 8% of the UK market in cigarettes and 13.2% in hand-rolling tobacco’ Ian Robertson, head of CORA, BAT UK & Ireland


• Cash & Carry Management • August 2012

Pall Mall (cigarettes and RYO tobacco) alone account for half of BAT’s volume share in the UK. The Aylesbury-based company has just announced that its 12.5g Pall Mall tobacco pouch is to be reduced to 11g and that it will also cut the price per gramme. The rsp is £2.99. The change for Pall Mall RYO, launched in the UK two years ago, follows research suggesting that ‘adult smokers want quality and trusted brands at a low out-of-pocket price’. The 11g pouch is available nationally in a price-marked format from this month and as a non-PMP from October. The 25g size is unchanged. In addition to Pall Mall, BAT UK markets the Dunhill, Rothmans, Lucky Strike, Vogue, Craven A, Consulate, Royals and St Moritz cigarette labels, and Cutters Choice and Samson tobacco brands. Robertson refers to the growth in value cigarette brands, in which the manufacturer is represented both by Pall Mall, introduced in 2007, and Rothmans king size, launched just a few months ago. “The main action has been at the bottom of the market. The big challenge is the increase in excise duty, which is increasing relentlessly. Smuggling and illicit trading are also growing, to the detriment of the legitimate market.” He says that around 50% of hand-rolling tobacco in the UK is not legally purchased. “Is this declining or increasing? The evidence is mixed. There has been lots of loose tobacco coming into the market,” Robertson adds. “There was also an 11% rise in illegal cigarette purchasing in the last quarter of the year. “We absolutely support the intelligence effort to crack down on the problem. But increased duty and the move towards plain packs create greater incentive for the illegal traffickers.” Robertson, like many in the trade, claims it is too early to say what effect the display ban in multiples has had on this channel or on independents. “What we have been hearing about, anecdotally, is increased queuing times (in the supermarkets), people walking away – so lost sales – and confusion among staff.” He says BAT UK is growing in both trade sectors, with each accounting for half of its volume. “We deal with all the major C&C/wholesalers – a channel which is absolutely essential for us. We are also well established in price-marked packs, which represent a growing proportion of our output.” The manufacturer has a sales force of around 140 visiting all channels. It has 13 people in national accounts, several of whom are specifically assigned to C&C/wholesale. Globally, BAT last year produced 705bn cigarettes at 46 factories in 39 countries. Worlwide revenue totalled £15.4bn (3% up) and profit was £4.7bn (9% higher).









Price-marked packs. For the avoidance of doubt, retailers are free at all times to determine the selling price of their products. *20 rolled cigarettes based on 0.4g tobacco per rolled cigarette.

This advertisement is for the information of tobacco traders only

tobacco Strong brand identity This year Clipper UK is celebrating 40 years of trading since production of its first cigarette lighter. Since 1972, the company has built a strong brand identity in the UK market, resulting in it becoming the No.1 selling refillable lighter, says managing director Bryan Jenkinson. “Clipper’s iconic shape and refillable, reflintable and reliable features make it first choice in consumer demand.” To celebrate its ruby anniversary, it has launched several promotions on key products over a period leading up to Christmas. It is giving retailers the opportunity to win a 3D television set by entering a code with every purchase of a four-tier stand, as well as receiving an additional 24 translucent lighters free. Clipper is also offering traders the chance to win a trip for two to Paris by entering a picture of their display of the company’s lighters.

Clipper’s Bryan Jenkinson: ‘Lighters represent a high margin opportunity.’

“Display stands therefore give the independent retailer an opportunity to prepare for the forthcoming display ban.” Jenkinson concludes: “Consumers instantly recognise the classic Clipper lighter by its iconic shape. Consequently it demands a higher suggested rsp than the basic Far East imports.”

Cigarette pack lookalike

Iconic look for a lighter that first began production 40 years ago.

“Furthermore,” says Jenkinson, “we are giving the trade the opportunity to win a new generation Apple iPad 3 with every purchase of our best-selling solid colour promotion pack, which also gives four lighters free.” Clipper UK sold 3.5 million lighters in last year’s six-week ‘36 + 4 free’ activity. And, with the 2012 incentives, it anticipates even greater business over the promotional period. Details of how to enter the competitions are inside each pack. Jenkinson comments: “Lighters represent a high margin opportunity to the retailer, and our designs generate additional demand. “Many retailers choose to display lighters on a tobacco gantry, although this does not always make the product visible to the consumer, resulting in a loss of potential sales. “Market research shows that placing a display on the front counter can increase a retailer’s lighter sales by up to 103%.” He says that with the tobacco display ban in mind, Clipper introduced – and has been promoting – the use of eye-catching display stands and ‘fun designs’ to increase visibility and maximise lighter sales. “Given a choice, younger consumers prefer designs that say something about them or, indeed, make a talking point among friends.


• Cash & Carry Management • August 2012

Since the electronic cigarette arrived on the UK market five years ago, the sector has become both vibrant and exciting, says Graeme Carpenter, an executive of FTA Group, which has launched Matchless as a cigarette pack lookalike. He comments: “We know that cigarette smokers are conscious of what they smoke and that they require confidence in their alternative cigarette. That is why our pack looks like any other mainstream cigarette.” Sales of e-cigarettes are said to be growing by 30% per month, and there are now more than 300,000 UK adults who are regular users of e-cigarettes, or ‘vapers’ as they are otherwise known. It is anticipated that sales will reach over £70m this year. Carpenter says that Matchless is partnering Balance magazine, which is circulated to NHS staff to promote health and well-being.

New electronic cigarettes.


Preparing responses to Government consultation documents

Struggling to get the right candidate for your job vacancy? Lobbying Reach every cash & carry and delivered wholesaler in the UK free of charge Representation at the Scottish Parliament Legal Updates


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tobacco Matchless king size disposables have an rsp of £5.49 (one cigarette that lasts for 200 puffs – the equivalent of 1520 standard cigarettes). Commenting on the market, Carpenter says: “There has been substantial growth in rechargeable cigarettes due to the hike in cigarette pricing. ”The Matchless rechargeable has been designed to cater for this market by introducing a rechargeable cigarette plus two cartridges at £13.99 compared to others that range from £20-£35. The rechargeable cartridges work out at only £1.30 each and are long life, lasting 300 puffs.” Carpenter describes e-cigarettes as “a must-stock line for the distributive trade in a rapidly expanding market”. He adds: “Due to the display ban, e-cigarettes are the only ‘cigarettes’ that can be both advertised and merchandised, reminding consumers that other tobacco products are on sale. In addition, e-cigarettes offer up to five times more profit on return compared to tobacco cigarettes.”

More space for RYO “The Chancellor’s annual budget increase on tax of underlying inflation plus 5% is driving cigarette consumers towards roll your own tobacco, which, with its higher margins, the trade is welcoming,” says Sean Glynn, sales & marketing manager of Mascotte GB. He adds that the trade has been increasing its RYO range and area size within the gantry to allow for the influx of new consumers. One in four smokers is now dualling between cigarettes and RYO, while one in three is just an RYO follower. “With RYO growing rapidly, Mascotte GB has launched the only UK assortment of sundries, with 26 product lines. In addition, to allow for the new duallists and value seekers, we have made our products the most economical in the midrange sector,” says Glynn.

‘We offer a higher POR for both distributors and retailers’ Sean Glynn, sales & marketing manager, Mascotte GB


• Cash & Carry Management • August 2012

The supplier, which has been part of the sundries market since 1856, having gained the No.1 or 2 position in both Continental Europe and globally, claims to know what the consumer and trade require. Says Glynn: “We want to add interest to the market. Our major rallying call has been ‘Buy papers and get free tips’. Look out for future exciting promotional activity!” For regular RYO smokers who are now making slimmer cigarettes, Mascotte GB has produced a slim paper for the UK market – Mascotte 66. This is supported by Mascotte Extra Slim Filters, rsp 74p, compared to others at 89p. Glynn comments: “We have green papers, with cut corners, at an rsp of 20p, and king size at 50p. These, and most of our other products, offer a higher profit on return for both distributors and retailers. We know that some retailers premium price papers and tips. If they premium price our range, then the POR becomes very appealing. “The display ban in retail multiples, and ‘adopted’ by cash & carry operators, has highlighted this category sector as the only one now on display. This represents an opportunity for trade channels to take advantage of the exposure for new entrants into the RYO market. “And again due to the increased price of cigarettes, the other sector that is growing is make your own. Mascotte offers tubes for all occasions – from standard to menthol, in seven different packings and with four different tube filling machines.”

Quite a line-up in the Swan range!

Boosting category sales “C&C/wholesalers and retailers, both large and small, can look to RYO accessories to boost tobacco category sales as smokers adapt to the display ban and, in some cases, alter their buying habits.” That is the view of Mark Alldred, marketing manager of Republic Technologies, which supplies papers, filters and smoking accessories. He says that, although it is early days since the display ban was introduced in retail multiples, “we’ve noticed some initial confusion among smokers who, despite all the media coverage, seem to have been taken by surprise”. Alldred adds that c-stores have experienced an initial increase in sales, although whether that rise will be sustained or be as great as some have forecast is open to debate. “Larger c-stores covered by the tobacco ban are already using accessories, such as paper and filters, to ‘signpost’ the category and help smokers adjust to the immediate changes. “We’ve noticed that a growing number of c-stores are taking more care in merchandising RYO accessories.

tobacco “This should accelerate growth and profit opportunities as RYO accessories is already a high-margin, fast-growing category that the trade should capitalise on,” says Alldred. “And with a quarter of all smokers now choosing roll your own – a market that’s virtually doubled in value in the last decade – the display ban is, for some, an opportunity to use accessories to develop this sector.” With value, convenience and flavours being key drivers of the RYO market, Republic Technologies has been introducing multipacks and combi-packs for its Swan range. Says Alldred: “When times are hard, people look to make savings on regular purchases, such as tobacco and accessories. Combi-packs, which combine filter tips with rolling papers, are perceived to offer better value. “They’re convenient, and all Swan branded combi-packs offer more than 50% margin. Latest statistics show that sales of this segment are up 48.6% – compelling evidence to stock them.” Another trend Alldred points to is downtrading in both the cigarette segments and switching from cigarettes to RYO tobacco, which is in growth at 12.1%. He adds that filter tips sales are up by 12.4%, menthol filters by 24.5% and multipacks of rolling papers by 56.8%. “With regard to papers, green (corner cut) account for 60% of the category, but too many retailers lose out by neglecting the other 40%. “The key to maximising the RYO accessories segment is to offer smokers a choice of brands and weights of paper. Lighter weight papers, like Swan Ultra Fine (Silver), are showing category growth of 29.1%.” The £68.9m lighters sector is growing at 4%, with Republic Technologies claiming a value share of £25.5m and advancing by almost 16%. Its Poppell, Swan and Cricket lighter brands are said to have a combined, market-leading share of 38.4%. Alldred gives this advice to C&C/wholesalers: Always ensure you stock the key lines and volume sellers in the category. Make sure the fixture is signposted with key brands, such as Swan and Zig-Zag. Be aware that combi-packs were part of Swan’s NPD last year and sales figures show they are very popular.

• • •

‘Combi-packs, including filter tips with rolling papers, are perceived as offering better value’ Mark Alldred, marketing manager Republic Technologies

• With shoppers looking for value, multipacks are a muststock item. All data: Nielsen MarketTrack MAT January 2012.

Republic Technologies has extended its established ZigZag range by launching a selection of non-wrapped acetate (NWA) filters. The skus are: Extra Slim and Slim Filter tips in packs of 165 and 120. Rsps start at 59p. Alldred says that NWA represents the “fastest-growing and favourite filter tips”, growing by 12.3%. “They offer a better smoking experience than paperwrapped mono acetate filters. They are easier to grip and roll, offer up to 10% better tar retention and, as there is no paper barrier, there is full ventilation and porosity around the filter, increasing the air flow and creating a smoother smoke.” All data: Nielsen MarketTrack June 2012.

Familiar brand has extended its range.


• Cash & Carry Management • August 2012

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Late news... JTI’s Mayfair, which is celebrating its 20th anniversary, has introduced a limited-edition pack for the mid-price cigarette brand. Available in all channels until the end of September, it features a modern background and a 3D crest, as well as a ‘20 Years of Quality’ on-pack message and a coloured inner foil. The design, said to ‘emphasise the heritage and quality’ of Mayfair, is available across the king size full flavour and king size smooth 10s and 20s while stocks last (in both pricemarked and non price-marked formats). To support the milestone, the supplier is giving independent retailers the chance to win £20,000 worth of prizes, including 50in plasma screen television sets, 8GB MP3 players and £100 ‘Love to Shop’ vouchers. To take part, traders need to cut out and collect four barcodes from outer wraps of Mayfair sold during the competition period and send them to JTI with the accompanying entry form.

Retailers can receive entry forms in the post, from cash & carries and through the trade press. Barcodes must be sent in by 30 September. The winners will be announced the following month. Jeremy Blackburn, JTI’s head of communications, says: “The Mayfair brand is all about providing adult smokers with quality at an affordable price. “We’d like to say a big ‘thank you’ to retailers for their continued trust and support, which has helped Mayfair become the UK’s No.1 mid-price cigarette brand.” The brand is claimed to account for 11.8% of the total cigarette market and 47.6% of the mid-price sector. It delivers £1.5bn in annual retail sales across the UK. The Mayfair range includes: king size 10s (rsp £3.38), king size 20s (£6.60), smooth 10s (£3.38) and smooth 20s (£6.60).

Imperial Tobacco has called on the Government to provide a summary report of the responses it has received on the subject of standardised (plain) packaging. Head of UK corporate & legal affairs Colin Wragg (right) says: “The UK consultation closed on 10 August but the Government has not confirmed when it will publish a summary report of the responses it has received. “Our current expectation is that we could see something towards the end of the calendar year or in early 2013. “We trust the Government will have an open view with this consultation and will take notice of the submissions from retailers, wholesalers and packaging manufacturers whose businesses are threatened by these proposals.” A summary of Imperial Tobacco’s submission states: ‘The introduction of legislation that prevents the owner of a lawful product from differentiating their products from those of their competitors, depriving them of the ability to exploit their intellectual property, would be unprecedented in the UK and require the clearest and most cogent justification. ‘One would expect, therefore, the consultation to set out a rigorous and comprehensive assessment, supported by solid, credible evidence, that standardised packaging will achieve the Government’s stated objectives and that the benefits of introducing standardised packaging will outweigh the costs.’ The company’s submission goes on to say why plain packs would be bad for business and consumers, but good for criminals. They would ‘provide a stimulus’ for illicit tobacco trade by creating a ‘counterfeiters’ charter’. They would also be illegal under national, European and international law and would ‘expose the Government to a bill for compensation for deprivation of the manufacturers’ intellectual property rights. Tobacco manufacturers hold billions of pounds’ worth of registered trade marks’. Another reason for not having standardised packs, says Imperial, is that they would be ‘anti-business, anti-competitive and anti-consumer’. It concludes that the consultation has ‘completely failed to make a convincing case, supported by credible evidence, for the introduction of any form of standardised packaging’.

For further information: BAT UK (01296) 335000 Clipper UK (01268) 662222 FTA Group (01527) 557825 Imperial Tobacco (0117) 963 6636 JTI (Gallaher) (0800) 163503 Mascotte GB (01527) 557822 Republic Technologies UK (01494) 533300 Scandinavian Tobacco Group UK 020-8731 3400

All data Nielsen ScanTrack.


• Cash & Carry Management • August 2012

BROKERAGE The September 2012 issue of Cash & Carry Management will include a feature on Brokerage

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

products & promotions NW drive

Relaunched range BURTON’S BISCUIT COMPANY – The manufacturer has relaunched the Lyons’ Biscuits range with bold, new packaging. Using the strapline ‘Come in, I’ll put the kettle on’, the brand is being positioned as an everyday treat, perfect for sharing with friends and family along with a cup of tea. David Costello, Burton’s category & activation controller, said: “Cost-conscious consumers are looking for value for money and quality, which Lyons’ Biscuits delivers. “The timing of the relaunch is ideal, as it comes ahead of the brand’s 75th anniversary next year.” The full range comprises: Viscount, £1 price-marked pack (seven pack, 98g, and 14-pack, 196g); Toffypops, £1 PMP (eight, 120g, and 16, 240g); Coconut Mallows, 69p PMP (six, 125g and 12, 250g); Jaffa Cakes, 69p PMP (12, 135g, and 24, 270g); Jam Teacakes, 69p PMP (10, 125g, and 20, 250g); Rich Tea, 69p PMP (300g); Digestives, 69p PMP (400g); Shortcake, 69p PMP (400g); Cookies (Chocolate Chip), 69p PMP (400g – 2 x 200g); and Fig Rolls, 69p PMP (200g). Tel: Burton’s Biscuit Co (01727) 899700.

Smoother butter GRAHAM’S THE FAMILY DAIRY – ‘Scotland’s largest independent dairy’ has reformulated its spreadable butter. It now has a smoother consistency when applied to bread and oatcakes. Lids of 250g and 500g packs are incorporating the words ‘Spreadable now spreads even better!’ The butter is made in a new £1.2m plant at the family’s Airthrey Kerse Farm in Bridge of Allan. Tel: Graham’s the Family Dairy (01786) 833206.


HOLLAND’S PIES – The Accringtonbased producer of pies, puddings and pastries has launched three savoury slices into convenience stores and garage forecourts in the north-west. The 160g slices are: chicken, steak and chicken curry. The rsp is £1.39. The chicken and chicken curry slices contain diced chicken breast in a sauce, baked in puff pastry. The steak product features diced steak, gravy and puff pastry. Tel: Holland’s Pies (01706) 213591.

10-year record TATA GLOBAL BEVERAGES – The company is investing £10m in marketing for its Tetley tea business, the biggest such programme for the brand in 10 years. Using the endline ‘Make Time, Make Tetley’, it is promoting the importance of spending quality time, face to face, with people who are special to you, over a ‘great quality’ cuppa. Simon Attfield, customer marketing controller, said: “Where other brands focus on the ‘me moment’, we will be all about sharing special tea moments with others. Aside from tap water, people drink more tea in this country than any other beverage, but the frequency of consumption is falling which is affecting the size of the market.” Tetley, which is intent on increasing its share and attracting new, younger consumers into the category, is using tv and radio ads, film sponsorship, digital activity, sampling and social media. The first tv commercials begin this month. The supplier has also introduced a ‘radical’ new pack design. It includes a QR code, which, if scanned by a smartphone, will provide details about the tea’s sourcing and blending. Tel: Tetley GB (0800) 387227.

• Cash & Carry Management • August 2012

Film promotion MARS CHOCOLATE – Sweet Sundays is a new promotion in which Sunday cinema tickets are being given away to consumers. The deal is redeemable with the purchase of four special packs across the company’s bitesize range. The activity, which builds on Mars’ previous film promotions, such as ‘Bag A Million Movies’ and ‘1 in 10’ DVD giveaway competition, is fronted by the Red and Yellow M&M’s characters. Running until 13 January, 2013, it coincides with such film releases as the new James Bond movie Skyfall, The Hobbit: An Unexpected Journey and The Twilight Saga: Breaking Dawn Part 2. The manufacturer is supporting the campaign with a £3.3m budget, including tv advertising. Tel: Mars Chocolate (01844) 262517.

Weekend trips WHYTE & MACKAY – In Vladivar vodka’s newest promotion, consumers are offered the chance to win a weekend trip to Moscow, Prague or Krakow with five of their friends. Details are printed on the label, and the brand is available in shelf-ready packaging to further increase standout. John Bradbury, UK sales director, said: “We have just extended the Vladivar family by introducing four new flavours. We have also been undergoing national magazine advertising, as well as launching a Facebook page and a competition to win a karaoke night with Chesney Hawkes.” Tel: Whyte & Mackay 0141-248-5771.

products & promotions Naan chips


WARBURTONS – The baker has added a range of Indian-flavoured baked naan chips to its snacks portfolio, which already includes baked pitta chips. The new products are initially available in 150g bags and come in three flavours: creamy korma, classic tikka and fiery Madras – representing mild, medium and hot. The rsp is £1.79. Tel: Warburtons (0800) 243684.

BACARDI BROWN-FORMAN BRANDS – Bacardi has launched a new campaign as part of a £20m marketing budget for 2012, celebrating the brand’s 150th anniversary. Consisting of tv, press, digital and out-of-home advertising, it runs over the next few months and builds on the global platform: ‘It started with a party’. The first of three themed press ads is entitled ‘It started with a what if’, while the tv ad is called ‘Summer trip’. Marketing director Liam Newton said that more activity will follow later in the year. Tel: Bacardi Brown-Forman Brands (01962) 762100.

Extra coffee DOUWE EGBERTS PROFESSIONAL – Two new roast and ground skus for the cash & carry sector have been introduced by the company to capitalise on the trend for ‘occasion drinking’: House Blend and Morning Americano (both in 1kg bags). Morning Americano is described as having ‘a full bodied and intense style, bursting with nutty flavour’, while House Blend is a medium strength coffee, ‘perfect for everyday consumption, with a smooth, full-bodied European-style, prepared with a classic blend of the finest beans’. Douwe Egberts’ trade marketing manager Martyn Bell told Cash & Carry Management: “Each provides caterers with the option to tailor their coffee offering to suit their key trading hours with blends that will both excite and satisfy consumers, while maintaining value for money.” Both styles will be available through Booker during the next six months in 1kg packs, with a special introductory price of £9.99 (usual rsp, £12.99). Tel: Douwe Egberts Professional (0845) 271 1818.

New distributor EURO FOOD BRANDS – The company has been appointed distributor for Jack Link’s, claimed to be the world’s leading authentic American meat snack brand. The manufacturer’s European managing director Michael Ollerup commented: “In recent years, we have established Jack Link’s as the No.1 jerky brand in the convenience channel; the time is now right to extend into other sectors. “Euro Food Brands has excellent credentials and a significant presence in UK grocery, with successful brands such as Hershey’s and illy Coffee.” The plan is not only to reinforce Jack Link’s position in convenience, but also extend into grocery. A newly-launched line is Jack Link’s Curry Chicken Bites. It joins Beef Jerky (original and sweet & hot), Beef Steak Bites (original and teriyaki) and Chicken Bites (flamin’ buffalo style and curry). All are available in two pack sizes: 25g (rsp up to £1.99) and 75g (up to £3.99). Tel: Euro Food Brands (01604) 821200.

In handy style KRAFT FOODS – Cadbury Eclairs has been launched in a 48g ‘handy’ bag (rsp 55p), replacing the roll-pack. The new format includes the ‘more modern and indulgent’ design introduced on the brand’s carton and sharing bags last year. Tel: Kraft Foods (08702) 400861.

Diwali packs AG BARR – Exotic juice drink brands Rubicon and Sun Exotic are celebrating Diwali with special promotional packs, supported by tv advertising. Over the corresponding festival last year, 1.1million packs of price-marked Rubicon were sold (Nielsen ScanTrack Oct/Nov 2011 total coverage). During this year’s celebration, Rubicon will be available in one-litre packs price-marked at £1.29 or two for £2, while Sun Exotic will come in 99p price-marked containers. Both will be on sale in this format until the end of the year. The supplier’s head of marketing Adrian Troy said: “Diwali is celebrated by one million people in the UK, and has the potential to deliver £8m at retail value, presenting a tremendous profit opportunity.” Troy added: “Large pack sizes are particularly important during this period to cater for families.” As well as being seen on tv during the festival, both Rubicon and Sun Exotic will be advertised at Christmas. Tel: AG Barr (01204) 664295.

Cash & Carry Management

• August 2012 • 53

products & promotions Christmas range

Altered look WRIGLEY – The manufacturer has introduced a new look across all channels for its range of Extra and Extra Ice mints to create greater stand-out on shelf and differentiate between the label’s chewing gum and mints. The packaging features a simplified design to ensure the word ‘mints’ stands out. An on-pack flash communicates the brand’s oral health care credentials (sugar-free and endorsed by the British Dental Health Foundation). Peter White, customer activation manager, said: “Studies show that one of the main barriers to purchasing mints is that they are perceived as being harmful to teeth. “By introducing visual oral care cues, we are confident we can eliminate these barriers to purchase.” Extra Mints is worth £8.3m and is growing ahead of the category at 16.2% year on year (Nielsen MAT 16/6/12). Tel: Wrigley (01752) 752094.

KRAFT FOODS – The company has unveiled its range of products in the run-up to Christmas. It has also issued a ‘responsible retailing advice’ package under the Seasons Made Simple name. Once again, the jewel in the manufacturer’s self-eat seasonal range is Cadbury Wishes, which between Halloween and Christmas last year contributed over £2m to the sub-category (Nielsen total coverage 24/12/11). The key sales period is 1 November to 25 December. As in previous years, 10% of all profits from Cadbury Wishes will be donated to the Make-A-Wish charity. Other self-eat products being highlighted are Cadbury Magical Elves, Snowbites and Dairy Milk coins. Terry’s Chocolate Orange is ‘another essential seasonal treat’. To keep the brand fresh, Kraft Foods is introducing a limited-edition Toffee Crunch flavour. The company is also modernising the Terry’s Chocolate Orange range and brand this Christmas, ‘bringing consistency across the portfolio to help it stand out on shelf’. Tel: Kraft Foods (08702) 400861.


MARS PETCARE – A new ad campaign for premium cat food brand Sheba, featuring Eva Longoria as the product’s first celebrity ambassador, went live this month. The £3.3m ‘Follow Your Passion’ drive focuses on celebrating and fuelling the passions of cat lovers. The integrated activity includes tv commercials, in-store promotions and social media. New products being introduced include Tender Terrine with Tuna, Tender Terrine with Salmon & Cod, Rabbit in a Delicate Gravy, Tender Terrine with Beef, and Beef in a Succulent Jelly. Tel: Mars Petcare (01664) 411111.

It’s a deal! Citrus flavour

Biscuit launch KELLOGG’S – Special K Biscuit Moments is the first biscuit to be launched under a brand which claims to be the No.2 selling cereal snack in the UK. The company predicts the launch will bring more people into the cereal snacks category – specifically weightconscious women. The new product contains just 99 calories per two-biscuit serving. The launch is being supported by £3m worth of advertising, sampling and retailer support. Special K Biscuit Moments is available in two flavours, strawberry and blueberry, with an introductory pricemarked pack of 35p. Tel: Kellogg’s (0161) 869 2000.

‘Queen’ of Sheba

UNILEVER UK – PG tips has partnered with Channel 4 programme Deal or No Deal. In a three-month arrangement, the tea’s branding will be seen on the mug used by the show’s main contestant. The first episode to feature the logo was shown on 7 August. Tana Walker, PG tips brand executive, said: “The partnership is a great way to communicate with our loyal customers and drive growth into the tea category through encouraging late afternoon tea moments.” Tel: Unilever UK (0800) 731 1597.

• Cash & Carry Management • August 2012

BOOST DRINKS – A new flavour in the functional energy drinks range is citrus, price-marked at 55p (250ml can). The impulse market for this category is currently worth £302m, with citrus flavours growing at 130%, compared with original flavours at just 22%. Managing director Simon Gray said: “Functional energy drinks are the core of our business and we already have a number of very popular products in this market. “The new Boost Citrus Energy is being launched on the strength of huge market growth.” As well as Citrus Energy, Boost offers three other flavours in functional energy drinks: Original Energy, SugarFree Energy and Cola Energy. They come in a variety of sizes – from 250ml cans to one-litre resealable bottles. Tel: Boost Drinks (0113) 240 3666.

What have they all got in common?

Ask Next time you pick up a successful brand in household and personal care products it’s a fair bet it came from Robert Mcbride Ltd. That’s because we are the clear leader in the sector at over twice the size of our nearest rival. We supply over 90% of Europe’s leading retailers with our products; we have our own portfolio of brands; and we contract manufacture. We fill 100 million bottles of bleach a year from our Middleton factory alone. Any brand can claim to be a top seller, but nobody knows the market quite like we do. So if you want to know what’s real value and what isn’t, what will sell and what won’t, ask Mcbride.

*AC Nielsen Total Market 52we value sales to 12th May 2012. ** +£15.5m YoY ***AC Nielsen Impulse 12we value sales to 12th May 2012. ® Registered Trade Mark of United Biscuits (UK) Limited.



• McCoy’s is the NUMBER ONE ridge cut crisp.* • The brand is now worth a MASSIVE £110m.* • Strongest value growth of ALL Bagged Snacks!** • Flame Grilled Steak, Salt & Malt Vinegar and Cheddar & Onion are in the TOP 10 SKUs in Impulse -


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