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DECEMBER 2011

Wholesalers in a dilemma over Games disruption Bestway angry with UK Border Agency Blakemore sets target of ÂŁ1 billion turnover Top suppliers recognised at AWARDS presentation

The business magazine for cash & carry/delivered wholesalers


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contents Who are the Scrooges? By the time you are reading this (hopefully, someone does!), staff of C&C/wholesalers throughout the UK will either have enjoyed a night out at their boss’s expense, to thank them for their hard work throughout the year, or be planning how to get home from the boozy bash still to come. But that’s not the whole Christmas tale. There are many for whom the ‘season of goodwill’ is anathema to their Scrooge-like employers. The event will come and go with not even a corporate Christmas card landing on their doormat. And if it does, it will probably have a printed signature at the bottom! These curmudgeons take the view they are keeping people in a job when so many are on unemployment benefits. That’s why so many companies are loath to discuss how they reward – or otherwise – staff during the festive season. However, there are kindly directors out there who recognise that their businesses would be nothing without the loyalty of their workforce. One leading C&C operator treated staff to a swish night-out at a London hotel; another wholesaler took its employees to an evening of bowling and a meal; and another gave a fixed amount to branch managers to socialise with their teams. These are the ones I know about; there could be many others doing the same sort of thing. It’s the sort of goodwill gesture that will encourage employees to give of their best in the months ahead. Those who prefer the ‘bah, humbug’ approach, be warned. Merry Christmas to all.

Pictured at Cash & Carry Management’s AWARDS lunch at Dorney Lake earlier this month are (l to r): Martin Lovell of publisher Winlove Publications, Pradip Dhamecha of Dhamecha Food Group, and Kapil Wadhwani of Wanis ... see pp.12–20

news

4–10 Olympics giving C&C/wholesalers a headache ... Abra Wholesale aiming high ... Bestway clashes with UK Border Agency ... Parfetts and Molson Coors take centre stage ... Hyperama in own-label initiative ... Bidvest buys into Chilean business ... Blakemore targets £1bn turnover.

awards winners delivered in focus supplier strategy achievers

28–30 32 34–38 40

pies & meat snacks

42

employment law

44

Editor

Mervyn Gilbert

Managing Editor

Kirsti Sharratt

Media Sales Manager

Clare Phillips

Business Development Manager David Ford Publishing Director

www.cashandcarrymanagement.co.uk

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easter confectionery

products & promotions

Mervyn Gilbert editor

12–20

Martin Lovell

4,555 July 2010–June 2011

46–47

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

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

Cash & Carry Management

• December 2011 • 3


news IN BRIEF Queen’s Award Manchester-based wholesaler Rayburn Trading, a member of Sugro, has received a Queen’s Award for Enterprise for its ‘outstanding achievement in the international trade’. The company, which deals in toiletries, cosmetics, household goods and confectionery, exports to more than 60 countries. Landmark Wholesale member Sun Mark, of west London, celebrated the achievement of winning three Queen’s Awards for international trade by holding a party at the Grosvenor House, in London’s West End, attended by more than 40 MPs and Euro MPs, as well as officials from the Indian Embassy.

Own label Bestway has introduced tonic water (low-cal and normal styles) and soda water to its Best-in range. Packed in one-litre plastic bottles, all are pricemarked at 49p. There are 12 to a tray, priced at £2.69, offering independent retailers a margin of 45.1%.

Wrong man We wrongly identified the person giving the tobacco presentation at Booker’s Brighton branch in last month’s issue as Colm Johnson. It was, in fact, Patrick Toms, Imperial Tobacco’s head of distributive channel.

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Olympics: C&C quandary With just seventh months to go before the start of the Olympic Games, cash & carry operators close to the main venues are still in a dilemma about their opening hours during the world’s greatest sporting event. Faced with what promises to be an unprecedented logistical nightmare, they are weighing up whether it would be better to extend their trading times or close during the ‘rush hour’ and reopen when the major traffic has dispersed. Two of the leading operators affected are Dhamecha Group, with C&Cs in Wembley (where the main football competition will be held) and Barking, only a few miles from the major site in Stratford, east London, and the country’s leading Afro-Caribbean food and drink wholesaler Wanis, based in Leyton.

Still to make a firm decision.

Neither has yet made up its mind which option to take. But either way, any sales increase resulting from retail and catering customers ordering more stock during the Games could be offset by additional costs to staff working longer or unsocial hours over the two-week period. Meanwhile, Michael Spinks, the md of another operator close to the Stratford complex, Essex Foodservice Group, is still

seething that his company lost out in compensation from the London Development Agency because it was just yards outside the zone from where businesses were forced to move, and were then paid handsomely for their trouble. Two other east London C&C operators yet to play their hand are the Leyton branches of TRS Cash & Carry and Eastenders C&C. Pradip Dhamecha on the Olympics ... see pp.14–15

Aiming for £15m-£20m Today’s Group member Abra Wholesale has more than doubled its sales area by moving to new premises close to its former site in Edmonton, north London. Director Alan Foley told Cash & Carry Management: “After eight years in our former depot, we decided it was time to move. “We had outgrown the site and built up turnover to around £10m. “Now, in our 75,000 sq ft building in Picketts Lock Lane, near to Bestway, we are aiming to increase sales in the first year to between £15m and £20m. “We have extended our customer base considerably and have particularly expanded in grocery and pet

• Cash & Carry Management • December 2011

Alan Foley discusses the move with md Dee Taya.

products, as well as all our existing categories – baby products, toiletries, household, paper goods, OTC medicines, confectionery and soft drinks. “Our major suppliers have been very supportive.” Abra Wholesale, which

sells no alcohol or cigarettes, operates a dual-purpose business, as well as being an exporter – largely of toiletries – to countries around the world, headed by Nigeria and Ghana. Tel: Abra Wholesale 0208887 9303.

www.cashandcarrymanagement.co.uk


news

Border Agency incurs Bestway wrath Bestway Wholesale has expressed its anger in a strongly worded letter to the UK Border Agency following the arrest of a member of staff and a customer at its Kingsway Park, Liverpool, cash & carry. The incidident, which involved the police, took place last month. Press reports, endorsed by the UKBA in a statement, “give a totally false picture of the truth of the situation and are incorrect”, said the C&C operator. The UKBA had been informed that Bestway was employing illegal immigrants at the 80,000 sq ft branch. After a search by more than

Pervez: ‘We have never knowingly employed any illegal immigrants.’

50 officers and police dogs, one Bestway employee was “apparently arrested”, along with another person doing his shopping. The member of staff, an Iraqi, is known to the Home

Office. Bestway’s human resources department had, in fact, been in touch with the government department earlier in relation to the employee. It is claimed that the Home Office requested that Bestway should continue to employ the person, because of difficulties regarding deportation. The company agreed. Dawood Pervez, Bestway’s legal director, said: “We feel very disappointed that we were not approached in a responsible manner to discuss any potential concerns and are greatly shocked that the UKBA thought a raid, from a tip-off,

Parfett clinches top award Top accolades at Landmark Wholesale’s annual awards presentation and dinner last month went to AG Parfett & Sons and Molson Coors Brewing Co. They were among 19 prize winners at the Sheffield event, including five new awards to recognise the contribution of suppliers – tobacco/licensed, grocery, impulse, new business and foodservice. The presentations were made by group managing director Martin Williams and business development director Chris Doyle. Both praised the high standard of members and efforts by suppliers. Parfetts won the award for overall member of the year while Molson Coors took the award for business partner of the year (as well as for being the most improved business partner and for the tobacco/licensed category).

Other award winners: Grocery: United Biscuits; impulse: Britvic Soft Drinks; new business: Cott Beverages; core range project: Kraft Foods UK; foodservice: Unilever Foodsolutions (also foodservice project); most improved foodservice supplier: Coca-Cola Enterprises; new foodservice supplier: PepsiCo; suppliers depot: BA Cash & Carry, Cardiff and Swansea; own-brand depot: Parfetts, Liverpool Aintree; small cash & carry: Parfetts, Halifax; large depot: Parfetts,

Somercotes; and foodservice: William Yule & Son. In recognition of his contribution to Landmark, and in particular Hyperama Cash & Carry, Robert Lowe, who has worked for the Nottinghambased C&C operator for nearly 20 years, was presented with the special achievement award. The central office employee award went to Katrina Clay, who has been with the group for three years. Tel: Landmark Wholesale (01908) 255300.

Most of those pictured here work for multi-award winner AG Parfett & Sons.

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was an appropriate and responsible way to deal with the issue. “The company has robust and thorough procedures on employment matters and has a long and successful relationship with the Home Office on all immigration matters, which seems to have been totally overlooked. “The large majority of our 5,000 employees are British citizens. We have never knowingly employed any illegal immigrants. “We have raised the matter at a senior level in government and the very least we expect is a full apology from the UKBA.” The C&C operator had to close the depot for two-anda-half hours, during which time it estimates it lost £70,000 in sales. Tel: Bestway Group 0208453 1234.

Steep growth forecast The UK convenience sector is set to grow to £42.2bn in five years’ time, according to the IGD. It would mean a rise of more than 25% on the present figure of £33.6bn. The channel’s share of the total food and grocery trade is expected to increase to 22.9% by 2016, compared to 21.4% by the end of this year. IGD research shows that if fuel prices continue to go up, 50% of consumers will use local shops to save on petrol, and 46% of convenience store shoppers said the ability to walk to a store was key when deciding where to shop. Tel: IGD (01923) 857141.

Cash & Carry Management

• December 2011 • 5


news

All the Hype does wonders A new means of showing point-of-sale material for own-label products has resulted in a 32% rise in sales of Landmark Wholesale lines in branches of group member, Hyperama. The cash & carry operator, with depots in Nottingham, West Bromwich and Peterborough, has benefited by introducing ‘Value Zones’ – giant point-of-sale displays showcasing Landmark’s core range own-brand products. Managing director of Hyperama Marcus Singh said: “Their implementation has served to increase the profile of own brands with our customer base through impactful displays and signage. The net effect has been a marked uplift in sales, listings and awareness of these products.” The group’s business development director Chris Doyle commented: “The development of own brand has been one of my three priorities over the past two years. Our new business development programme is having a considerable impact for many members.”

Record sum The Caravan Olympians Luncheon last month was attended by more than 800 people from across the industry, raising a record £265,000, which will enable the charity to look after more than 210 of its 2,100 beneficiaries and dependants for another year. Among those attending the event were James Cracknell OBE, double Olympic gold medallist in rowing, and television sports presenter Clare Balding. Tel: Caravan (01252) 875925.

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No danger of not getting the message!

He added: “The scheme has already been implemented at BA Cash & Carry in South Wales which is benefiting from increased ownbrand sales.” ‘Value Zones’ are being

Marwood returns Blakemore Trade Partners, the part of Willenhall-based AF Blakemore & Son that includes the SPAR wholesale operation, has appointed Jerry Marwood as managing director. Marwood, md of the symbol group until leaving in September, takes over from Dennis Evans, who retires this month.

introduced at another nine Landmark Wholesale depots over the next six months. Tel: Landmark Wholesale (01908) 255300. Tel: Hyperama (0115) 985 1301. Marwood (left) and Evans.

Best-one incentive It was a bullish James Hall, head of Bestway Group’s Best-one chain, who addressed the 900 members at a group sales convention. “Make no mistake,” he told them, “2012 presents a really big opportunity for retailers, the like of which has not been seen for years. Extra turnover and income are there for the taking.” The year ahead, he said, included, as well as the Olympics, the Euro football championship and the Queen’s Diamond Jubilee. “There will be good sales opportunities for independents not only from increased tobacco sales but throughout the impulse sector when the ‘go dark’ rule for multiples begins in April – when they are required to hide all tobacco products from public view. ”I can’t remember the last time we had so much new business opportunity in such a short space of time.

• Cash & Carry Management • December 2011

Hall: possibility of an extra 25% turnover.

”I would expect retailers to be able to increase their takings by at least 25% over this period.” In 2012 the group will be celebrating 10 years in business. “Add that to what we are planning for the year as a whole, and I think we can say it’s going to be a big winner for us all,” said Hall. Tel: Bestway Group 0208453 1234.

Evans oversaw the development of the SPAR independent business, trading and distribution during his time as managing director and was actively involved in the integration of fellow symbol wholesaler, Capper & Co, based at Pontyclun, South Wales. He and his wife have a Costa Coffee franchise in Scotland. Tel: AF Blakemore & Son (01902) 366066.

Presidency for Hagon Paul Hagon, Palmer and Harvey group strategy & development director, takes over as president of Sweet Charity on 1 January, replacing Deri Watkins. Hagon has been a main board director at Palmer and Harvey since he joined the company in 1997 from Nestlé. Tel: Sweet Charity 020-7404 5222.

www.cashandcarrymanagement.co.uk


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news

£1bn turnover in sight SPAR wholesaler and Landmark Wholesale member AF Blakemore & Son believes it could hit the £1 billion sales mark next year after announcing a steep increase in turnover and profit in the 12 months to 30 April. The Willenhall-based company lifted like-for-like sales from £815.8m to £878m (£912m in total) and pre-tax profit from just £600,000 to £9.5m. The increased turnover was helped by a partial contribution from fellow SPAR wholesaler Capper & Co, which was acquired early this year. Chairman Gwendoline Blakemore said she was pleased with the sales rise in view of the tough economic situation.

Heavier fuel costs restricted growth.

“Increases in costs were contained wherever possible, but some costs outside of the company’s control – motor fuel, for example – increased by £1.5m (28%) in the year.” She added that there had been “significant benefits” in merging the Capper

business, and that if this company had been part of Blakemore for the full year, total sales would have been £1.2bn. Costs relating to the 5,809 employees rose by £8m to £80.9m. Tel: AF Blakemore & Son (01902) 366066.

Healthy investment Nottingham-based The Health Store, one of the UK’s leading health food wholesalers, has invested £300,000 in a BCP Accord software suite, including a wall-to-wall voice directed warehouse management package. The system, which is being implemented in stages, is expected be fully live by the end of the year. The Health Store produces over 11,000 products, including prepacked wholefoods, chilled & frozen food and vitamins. It supplies over 600 retailers in the UK and Europe, representing retail sales of £300m. Tel: BCP 0161-355 3000. Tel: The Health Store (0115) 9767 200.

Bestway celebrates coral anniversary “Who and where we are today began in 1963 with one man’s vision. That was Anwar Pervez, who opened his first retail store in Earl’s Court, London. “He later borrowed £300,000 for his first cash & carry purchase in Victoria Road, north-west London.” That was how Bestway Group chief executive Zameer Choudrey described the events leading up to the formation of what is now the UK’s second largest C&C operator. He was speaking at London’s Grosvenor House at a lavish event attended by 1,000 guests to mark the company’s 35 years in the C&C/wholesale business. ”Today, we have 61 branches, covering 6m sq ft, 25,000 products, 120,000

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The proud triumvirate at Bestway Group’s 35th birthday party. L to r: Younus Sheikh, managing director, Bestway Wholesale; Sir Anwar Pervez, group chairman; and Zameer Choudrey, group chief executive.

independent retail and catering customers and over 5,000 staff,” said Choudrey. “Our White Pearl is the second largest rice in Europe, we have a more than 51% share in the UBL Bank in Pakistan and with six branches in the UK. We are now a dynamic, diversified

• Cash & Carry Management • December 2011

and global business. “Since 1987 we have channelled over £10 million into the charitable Bestway Foundation.” And in a veiled allusion to Booker, Choudrey said: “While the early bird catches the worm, we are the ones who get the cream.”

Ron Anderson, former chief customer officer at Diageo, told guests that, within 18 months of opening, Bestway’s first cash & carry was taking £12m a year. “I was a young, hungry salesman with Gillette then, and in those days we had to give 14 days’ credit. “Bestway has had a unique impact on developing the C&C business. Its journey over 35 years has been remarkable. “(Sir) Anwar’s mantra was: ‘Just work, try not to borrow and don’t stretch yourself‘. “Since then, the company has always done the right thing for its suppliers, customers, employees and the community.” Tel: Bestway Group 0208453 1234.

www.cashandcarrymanagement.co.uk


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news

Chilean deal for Bidvest Bidvest Group, whose chief executive Brian Joffé said recently that the company’s plan is to extend into Egypt, the Baltic States and Chile (Cash & Carry Management: September), has acquired a 60% share of Deli Meals, a foodservice wholesaler and bakery products manufacturer

in Santiago. The Johannesburg-based concern, which owns 3663, said the deal will enable the Chilean business to grow both organically and through the purchase of others in the ‘fragmented’ foodservice market in that country. In addition to its interests

in South Africa, the UK and Chile, Bidvest has foodservice subsidiaries in Australasia, China, Hong Kong, Belgium, the Netherlands, Czech Republic, Slovakia, Poland, United Arab Emirates and Saudi Arabia. Tel: Bidvest UK 020-7493 4733.

Parfetts honoured by FWD The Parfett family was honoured for its contribution to C&C/wholesale at the FWD Gold Medal Awards event in London, attended by more than 500 people. The Stockport-based company, founded by Alan Parfett in 1980, has sons Steve as chairman and Robert as a director. Among the C&C/wholesale

winners (sponsored caterers and AF by Magners) were Blakemore was David Bell, of Palmer recognised for its and Harvey, Birtley, service to retailers. delivered wholesale Tammy Walker, driver of the year; of Parfetts’ Sheffield James Bielby and Zac Crick, of cash & carry, was Booker’s Kettering adjudged the top branch, shop floor worker of young wholesaler. the year. Walkers crisps were Creed Foodservice won rewarded for being the leadthe prize for service to ing grocery brand; Crabbie’s Alcoholic Ginger Beer took the drinks brand title; and Tetley tea was named as top foodservice brand. FWD chief executive James Bielby said: “The winincluding wines from South ners are stars in their field Africa (Arendsvlei chenin and we are very proud to blanc and pinotage), Chile welcome them, to see their (Talamanca merlot and efforts recognised in front of sauvignon blanc) and so many of their industry California (Grizzy Bear rosé). colleagues.” Within the Cellar Estate Other winners: portfolio, which includes C&C manager (independstyles from France, Germany, ent), Doug Watt, Blakemore, Spain and Italy, the three top Gateshead; C&C manager sellers are: chianti, St Emilion (multiple), Darren Wishart, and Spanish sweet white. Costco, Watford; delivered All wines start at an indepot manager (independdepot price of £16.99 per ent), John Forteith, Forteith case of 6 x 75cl bottles, Foodservice, Oban; delivand some lines also come ered depot manager (multiin 12 x 25cl packs. Profit ple), Tony Martin, 3663, on return ranges from Reading. 24% to 28.5%. Other supplier winners: Bestway and sister retail and actionable insight, concern Batleys have also Coca-Cola Enterprises; and launched a wine of the foodservice, Unilever Foodmonth programme. solutions. Tel: Bestway Wholesale Tel: FWD (01323) 366066. 020-8453 1234.

Revised wine range Bestway Wholesale has revised its wine range under category negotiator Umar Sheikh. The Cellar Estate ownlabel selection, launched six years ago, now comprises 65 Old World styles. However, ‘to create more flexibility’, the C&C/wholesaler is also offering a range of New World exclusives,

Wine negotiator Umar Sheikh

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• Cash & Carry Management • December 2011

Two more members Landmark Wholesale has gained two more members following the announcement that Medina Dairy, of Windsor, with £200m annual sales, has joined (Cash & Carry Management last month). The additions are Brook Street Foods and Turners Fine Foods. BSF, of Needham Market, Suffolk, founded in 1990, uses eight vehicles to deliver frozen, chilled and ambient food to schools, hospitals, hotels, butchers, restaurants and cafés around East Anglia, Essex, Herts, Cambridgeshire, Northants and parts of London. Director Nick Stratton said: “Turnover is currently £11m, but we are expanding and, with Landmark’s help, we are aiming for £15m next year. We have a staff of 25.” Turners, of Goudhurst, Kent, started life as a cheese specialist 16 years ago, with delivered wholesaling introduced in 2004. It supplies more than 1,000 catering and retail outlets in the south-east. Tel: Landmark Wholesale (01908) 255300.

Makro man Stephen Blan, formerly European retail director for Carphone Warehouse, has become operations director at Makro UK. The post was previously held briefly by Martin Schumacher – one of several new directors. Schumacher is being retained by the cash & carry operator in an advisory capacity. The company’s md is Juergen Schwarze. Tel: Makro 0161-788 8448.

www.cashandcarrymanagement.co.uk


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awards winners

Top performers rewarded Cash & Carry Management’s Top 25 Suppliers exclusive AWARDS lunch was this year held at Dorney Lake, the impressive rowing venue for the 2012 Olympic and Paralympic Games.

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• Cash & Carry Management • December 2011

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awards winners

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Cash & Carry Management

• December 2011 • 13


awards winners

Opportunities and challenges At Cash & Carry Management’s AWARDS lunch, guests had a rare opportunity to hear from three excellent speakers about the benefits and challenges surrounding the Olympics: wholesaler (Pradip Dhamecha of Dhamecha Foods), organiser (Darren Tse of the London Organising Committee) and participant (Terry Hunter, head coach and father of Olympic rower Mark Hunter). stations to get to the venues – past “Our company is London centric and the independent store so we are particularly looking forUK residents coming down to ward to next year’s Games,” said London – past the independent store Pradip Dhamecha, chief executive of Visitors staying in hotels, bed & Dhamecha Food Group, which celebreakfasts and guest houses – and brated its 35th anniversary last popping in to the independent store spring by passing the half-a-billionSpectators watching the 26-mile pound turnover milestone. marathon – how many independent “In these recessionary times, the stores are there in close proximity to UK economy – and the retail sector the route? in particular – needs a shot in the “Anyone with a shop near a bus arm, with food sales up just 1.4% stop, tube station, car park or hotel and non-food down by a similar should be raking it in throughout the figure. Games. “So the 2012 Olympics provide a Pradip Dhamecha: “We need to encourage the “And what sort of product is the perfect opportunity to improve on retailer to think outside the box.” consumer likely to be spending his those figures. Specifically, the indemoney on? We need to encourage pendent sector – with its heavy the retailer to think outside the box – it’s not just about deals reliance on the impulse sector – will benefit greatly from on beer and crisps, although, obviously, that is important! increased numbers of customers. “At Dhamecha, we are proud to support the leading “Irrespective of that, the once-in-a-lifetime event will brands. Of course, sales of the major sponsors’ products – inspire millions. It’s a massive global event which is unique Coca-Cola, Cadbury and P&G – will go through the roof in that it doesn’t just have one winner – like the World Cup for during the Olympic promotional period and these guys are example – but hundreds of winners in hundreds of discirealistic enough to understand that their competitors will be plines, whose performances are celebrated by everyone at doing their utmost to steal some of their thunder by investthe venue, as opposed to just that nation’s supporters. ing in promotional packages themselves. “The Games themselves follow close on the heels of the “Think outside the box. Every ticket machine at every tube Queen’s Diamond Jubilee with a four-day break in early June. station is likely to be rammed with queues of people, so sales And that, I hope, will act as a wake-up call for our independent of Oyster cards, bus passes and top-ups are likely to rocket retailers who should remember that, in 2011, another Royal through independent stores in and around London. event took the country by storm after sceptics had suggested “Retailers should be stocking useful items for the typical that it wouldn’t be worth watching...the Royal Wedding: British summer to cater for visitors, from paper hankies to badly underestimated in terms of retail opportunity! sun cream, Wet Ones to batteries. Then there’s the London “Between the Queen’s Jubilee and the London Olympics, memorabilia and Olympic merchandise. we have the European Football Champion“Food to go will be massive. And, of ship which – depending on which round course, throughout the rest of the country, England get knocked out of – could be yet barbecue products, beers, wines and spirits another chance for the nation to celebrate, for house parties… by eating a few more snacks and drinking a “We’re beginning to discuss promotional few more beers. activity with suppliers in the build-up to the “But the big one is, without a shadow of Games – as well as special theme days in a doubt, the 19-day long London Olympics. each of our branches. In my view, all of this “I remember hearing that the average activity shouldn’t begin until after The consumer passes 46 food and drink outlets Queen’s Diamond Jubilee, which culminates on his or her way to work. What a footfall in the weekend celebrations of 2nd–5th June. opportunity when the Olympics are on. And “Those are the opportunities – how do that’s just the UK citizens – what about the we actually take advantage of them? And foreign visitors? Wembley branch may open 24/7 what are the dangers? What are the chalLook at the potential consumers: for three weeks during Oympics. Londoners walking to bus and tube lenges we’re likely to face?

• • •

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• Cash & Carry Management • December 2011

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awards winners “Our staff – and the staff employed in the vicinity of the “Two specific areas need extra special planning – overWembley Stadium site – are already talking of ditching the coming retailer complacency and making sure the logistics car for a month and using public transport instead. work on the day. “But of even greater concern is how do the deliveries get “Our experience tells us that we need to work hard to prethrough? And how do the retailers do their shopping? How vent the retailer underestimating the opportunities until it’s do we organise security cash collections? too late. We have a challenge on our hands to convince retail“We may have to consider taking deliveries during the ers to be proactive. They won’t have a chance to be reactive: night rather than during the day. We may have to consider once the Games start and products start moving off the shelf, opening the branch 24/7 for three weeks. But, of course, in it won’t be easy to get extra deliveries into the branches. both cases, there’s a huge cost involved. “This then has a knock-on effect for us in the cash & carry. “We will definitely need to schedule deliveries well in Whilst we pride ourselves on being able to respond to sudadvance. We really do need to work den trends to keep the retailer in stock, together on this one, to agree continthis time it could be different – instead, gency plans should we require urgent, we need to spend more time planning additional stock. in advance to accurately predict what “We must also emphasise here that they are likely to want.” suppliers cannot allow the multiples to Dhamecha Foods services 10,000 abuse their power during this period active customers through its six cash & by demanding priority deliveries. carries based in and around the M25 in “Some might say ‘Why don’t your London. “A nice position to be in to retailers take in extra stock, in advance take advantage of the Olympics but a Pradip Dhamecha, chief of the Games?’ Fine in theory but, I’m nightmare when it comes to logistics executive, Dhamecha Foods afraid, not in practice. They don’t have during the event,” said Dhamecha. the space, there is an issue on short“Make no mistake, the roads – and dated products – for example, crisps – and in the current in particular the North Circular – will be chaotic. Let me give climate, it’s unlikely that the banks will be willing to help by you an example: our Wembley branch is less than 200 yards allowing extended credit. from Wembley Stadium and the Wembley Arena. Every time “So, an interesting time ahead. That’s why it’s so importhere’s a major international, a Cup Final, a play-off or a pop tant for us to work together – with flexibility. concert, the roads around the branch become gridlocked for “The 2012 Olympics are a unique, once-in-a-lifetime expethe day. Now multiply that by a factor of 19! rience for everyone in the country, they’re also a unique, “Add to that the fact that one of the two approach roads once-in-a-lifetime experience for independent convenience to the cash & carry – which is also our head office – will be stores and their cash & carries. It’s going to be a challenge closed for three weeks, meaning everyone will need to use but one we should all look forward to with relish!” the North Circular, and I think you get the picture.

‘We have a challenge on our hands to convince retailers to be proactive. They won’t have a chance to be reactive.’

ARE YOU READY FOR THIS ONCE-IN-A-LIFETIME OCCASION? “Are you ready for the Olympics? Are you ready to maximise the once-in-a-lifetime opportunities that the Games will present?” Martin Lovell (right), managing director of Cash & Carry Management’s publisher, Winlove Publications, opened the AWARDS lunch by asking guests to prepare for this unique occasion. On behalf of Cash & Carry Management, specialist research company NTouch asked cash & carries and delivered wholesalers three months ago what impact the Olympics will have on their business. In response, just over half were generally positive, 30% were generally negative, and the remainder ’didn’t have a clue’. Explaining why he chose the Olympic opportunity as the theme for the AWARDS lunch, Lovell said: “Bringing together high-profile people who represent three different aspects of the Olympics – wholesaler, organiser and participant – gives a valuable insight into the business benefits and challenges surrounding this event. “It is up to all of us to capitalise on the opportunities and to convert the non-believers to believers,” he added.

www.cashandcarrymanagement.co.uk

Before announcing the research findings and the winners of the Top 25 Suppliers accolades, Lovell explained that the AWARDS (annual wholesale achievement reward & development scheme) are now in their eighth year. “Our top supplier awards reward the very best standards of service given to cash & carries and delivered wholesalers in England, Wales and Ireland. This complements our involvement in Achievers, which runs exclusively in Scotland. “Our AWARDS are applauded for being totally unbiased and independent. All of the suppliers that made it onto the top 25 shortlist deserve huge recognition, but particular congratulations must go to the winners.”

Cash & Carry Management

• December 2011 • 15


awards winners

Businesses: be prepared! The 2012 Olympics is the world’s largest logistical exercise and the world’s largest non-wartime food and drink exercise, offering 14 million catering opportunities, according to Darren Tse, manager – operational readiness of the London Organising Committee of the 2012 Olympic and Paralympic Games (LOCOG). Tse told guests at Cash & Carry Management’s AWARDS lunch that the Games will involve 205 nations, 15,000 athletes, 70,000 volunteers and nine million spectators. Mobilising the food and drink exercise for the duration of the event is a £2 billion operation, he added. Meanwhile, the Paralympics is the world’s second largest logistical exercise, with more events and more medals but fewer tickets on sale. The Olympics are scheduled from 27 July to 12 August, with the Paralympics from 29 August to 9 September. Tse, who was involved in organising the 2010 Winter Olympics in Vancouver, said the experience there showed that local businesses were “inundated day and night”. “It was crazy. There was so much traffic on the streets. So be prepared. London will take on a whole new light. We have to take a pragmatic approach to problems and have contingency plans in place. “Security is one of the overarching themes. We prepare as much as possible but we have to have plans to deal with threats if our defence does not work. “With the Games, we realise there are negatives, such as a resource shift, lost productivity and temporary work. “However, the benefits include an upgrade in transportation, £1.9bn GDP UK-wide between 2005 and 2016, new jobs and training, a boost to economic, social and cultural spirit, and a £600m gross benefit to London. “An example is that we are working hard with the host boroughs hiring 5,000 people who are currently unemployed for catering jobs. Although these jobs will only last until the Games are over, we will be left with a skilled workforce.” In order to provide “great value for money” for spectators,

The torch will go within 10 miles of 95% of people in the UK.

16

• Cash & Carry Management • December 2011

Darren Tse: “London will take on a whole new light.”

Terry Hunter: “Every four years the world goes to war!”

LOCOG is using benchmarking at existing events and facilities, such as concerts at the O2 arena, to check that the pricing of food and drink at the Olympic venues is fair. Spectators will be able to take their own food into the venues, although some restrictions on quantity will be in place because bags will have to be x-rayed. No drinks can be taken in, but free drinking water will be provided. The impact of the 2012 Olympics will not be limited to London. “A lot of countries will send teams over in advance to participate in training camps, and there will be some events, such as football, being held in co-host cities before the opening ceremony,” Tse stated. The torch relay will bring exposure and excitement to regional venues, and he suggested that businesses find out exactly where the torch is passing in order to capitalise on the opportunity. “Be prepared!” he concluded. Terry Hunter, head rowing coach at Dorney Lake – the rowing venue for the 2012 Olympics – and father of Olympic and World Champion rower Mark Hunter MBE, advised guests at the AWARDS lunch that the torch will go within 10 miles of 95% of people in the UK during the relay. “The relay starts on 19 May at Land’s End and finishes on 27 July at the Olympic Stadium. Over 1,000 communities will take part and, at every stop, there will be parties, displays, eating and drinking.” As regards the competition itself, Hunter said: “Every four years the world goes to war. It is a friendly war but very intense. When the athletes compete it is cut-throat.” Dorney Lake – “owned by Eton College and one of the finest lakes for rowing in the world” – is expecting 30,000 spectators every day during the Olympics and 10,000 per day during the Paralympics. “For the Olympics, there are five satellite centres, and people will come into the venue via a bridge,” he explained. “For the Paralympics, we won’t use the bridge.” He added that, while he will be on site in an official capacity, his wife is paying £850 to watch their son compete in the Olympic rowing!

www.cashandcarrymanagement.co.uk


awards winners

Coca-Cola Enterprises triumphs The Cash & Carry Management Top 25 Suppliers AWARDS, as judged by cash & carries and delivered wholesalers in England, Wales and Ireland, have been won by Coca-Cola Enterprises, which was also victorious in two other categories (see pp.18–19).

WINNER: Coca-Cola Enterprises 24.81 out of 30 “We are honoured to have received the Cash & Carry Management Top 25 Suppliers award 2011, in addition to being the proud winners of the ‘Best Promotions for LongTerm Growth’ and ‘Best Sales Development Support’ awards. It’s a fantastic result, and we would like to thank our customers. We are committed to working in partnership with our cash & carry and delivered wholesale customers and greatly appreciate these awards.” Selena Taylor, trade communications manager, Coca-Cola Enterprises Kraft Foods’ trade communications manager Susan Nash and customer marketing manager Ben Kisby (right) are presented with the runner-up award by Martin Lovell.

RUNNER-UP: Kraft Foods (Cadbury) 23.94 out of 30 “Kraft Foods is delighted to have been recognised by winning the Best Quality Representation In-Depot award and as the runner-up in the Top 25 Suppliers category, both of which reflect our insight, experience and commitment to the wholesale and cash & carry market. We greatly value the research that was conducted to select the winners and runners-up, as it is conducted through an independent research company and reflects customers’ views.” Susan Nash, trade communications manager, Kraft Foods

Accepting the top award – and two more accolades – from Martin Lovell, managing director of Cash & Carry Management, is Selena Taylor, trade communications manager at Coca-Cola Enterprises.

HIGHLY COMMENDED: Imperial Tobacco 23.30 out of 30 “We see this award as powerful feedback from our customers that we are responding to their needs. There is still more to do and we intend to do all we can next year to continue to deliver a first-class service to all of our cash & carry partners.” Patrick Toms, head of distributive channel, Imperial Tobacco

www.cashandcarrymanagement.co.uk

Imperial Tobacco’s head of distributive channel Patrick Toms (right) and multiple account executive Kate Canning accept the highly commended award from Martin Lovell.

Cash & Carry Management

• December 2011 • 17


awards winners ‘Best Sales Development Support‘ WINNER: Coca-Cola Enterprises

WHICH OF THE TOP 25 COMPANIES GIVES THE BEST MERCHANDISING ADVICE? Winner Unilever 14.8% Runner-up Kraft Foods (Cadbury) 13.9% 3rd Coca-Cola Enterprises 13% 4th Nestlé 7.4% 5th PepsiCo 4.6%

‘Best Merchandising Advice‘ WINNER: Unilever

Coca-Cola Enterprises’ trade communications manager Selena Taylor receives the ‘Best Sales Development Support’ award from Martin Lovell, md of Cash & Carry Management.

WHICH OF THE TOP 25 COMPANIES OFFERS THE BEST SALES DEVELOPMENT SUPPORT? Winner Coca-Cola Enterprises 21.5% Runner-up Kraft Foods (Cadbury) 19.6% 3rd Nestlé 7.5% 4th Unilever 6.5% 5th Britvic Soft Drinks 5.6%

‘Most Innovative‘ WINNER: Britvic Soft Drinks

Unilever’s customer director convenience Stephen Moodie (right) and C&C channel controller Ian Toft (centre) accept the ‘Best Merchandising Advice’ award from Martin Lovell.

WHAT IS YOUR FASTEST GROWING PRODUCT CATEGORY? 1st Soft Drinks 21.3% 2nd Alcoholic Drinks 11.1% 3rd Energy Drinks 9.3% 4th Confectionery 8.3% 5th Frozen Foods 6.5% Other categories nominated by wholesalers: Ambient foods, chilled foods, convenience foods, ethnic foods, fresh produce, fine foods, fresh meat, snack foods, dairy foods, pet foods, ‘nothing’.

Britvic’s customer development manager Richard Hogbin (left) and regional sales manager Martin Simms (right) are presented with the ‘Most Innovative’ award by Martin Lovell.

WHICH OF THE TOP 25 COMPANIES IS THE MOST INNOVATIVE? Winner Britvic Soft Drinks 13% Joint Runners-up Coca-Cola Enterprises 11.1% Kraft Foods (Cadbury) 11.1% 4th Unilever 8.3% 5th Nestlé 6.5%

18

• Cash & Carry Management • December 2011

WHICH PRODUCT CATEGORIES ARE SUFFERING AT THE MOMENT? 1st ‘All seem fine’/‘Can’t think of any’ 75% 2nd Expensive Brands 7.3% 3rd Alcoholic Drinks 5.2% 4th Confectionery 4.2% 5th Soft Drinks 3.1% Other categories nominated by wholesalers: Branded products, dairy produce, meat, ‘Anything Jamie Oliver tries to ban!’

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awards winners WHAT IS YOUR FASTEST-GROWING CUSTOMER SECTOR?

‘Best Promotions for Long-Term Growth‘ WINNER: Coca-Cola Enterprises

1st Convenience Stores 23.1% 2nd Pubs 13% 3rd Catering 12% 4th ‘Nothing’ 10.2% 5th Restaurants 9.3% Other sectors nominated by wholesalers: Education, cafes, fast-food outlets, ethnic restaurants, accommodation, discount stores, garage forecourts, healthcare, leisure outlets, pet shops, vending.

ARE YOU DIVERSIFYING INTO ANY OTHER AREAS OF BUSINESS? No 95% Yes 5%

ARE YOU HAPPY WITH THE LEVEL OF SALES REPRESENTATION YOU RECEIVE? Yes 59% No 41%

WHICH OF THE TOP 25 COMPANIES PROVIDES THE BEST QUALITY REPRESENTATION IN DEPOT? Winner Kraft Foods (Cadbury) 18.7% Runner-up Coca-Cola Enterprises 15% 3rd Nestlé 9.3% 4th Unilever 8.4% 5th GlaxoSmithKline 7.5%

‘Best Quality Representation‘ WINNER: Kraft Foods (Cadbury)

Coca-Cola Enterprises’ trade communications manager Selena Taylor is presented with the ‘Best Promotions for Long-Term Growth’ award by Martin Lovell.

WHICH OF THE TOP 25 COMPANIES IS BEST AT GEARING PROMOTIONS TO ACHIEVING LONG-TERM GROWTH? Winner Coca-Cola Enterprises 27.1% Runner-up Kraft Foods (Cadbury) 18.8% 3rd Nestlé 9.4% 4th Unilever 4.2% Equal 5th GlaxoSmithKline 3.1% PepsiCo 3.1% Robinson Young 3.1%

DO PROMOTIONS FROM SUPPLIERS LEAD TO SHORT-TERM OR LONG-TERM GROWTH? Short-term growth 65% Long-term growth 27% No growth 8%

DO YOU WELCOME PRICE-MARKED PACKS? Yes 79% No 21%

WHAT IS THE BIGGEST THREAT TO YOUR BUSINESS? 1st Supermarkets 29.6% 2nd Economic Climate/Credit Crunch 24.1% 3rd Competitors 19.4% 4th Duty Free Black Market Stock 8.3% 5th Increasing Costs in General 4.6% Kraft Foods’ trade communications manager Susan Nash and customer marketing manager Ben Kisby (right) receive the ‘Best Quality Representation’ award from Martin Lovell.

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Other threats mentioned by wholesalers: Fuel prices, third-party logistics, poor service from suppliers.

Cash & Carry Management

• December 2011 • 19


awards winners

Suppliers’ final scores

TOP 25 SUPPLIERS

Thanks go to everyone who voted on the Top 25 Suppliers during this year’s AWARDS scheme. Here is the league table of the companies deemed to give the very best standards of service to cash & carry/delivered wholesalers in England, Wales and Ireland.

20

Position

Company

Score (max. 30)

August results

1

Coca-Cola Enterprises

24.81

24.12

(1)

2

Kraft Foods (Cadbury)

23.94

23.84

(2)

3

Imperial Tobacco

23.30

23.23

(4)

4

Nestlé

23.08

23.70

(3)

5

PepsiCo

22.93

22.99

(5)

6

Mars

22.60

22.44

(8)

7

Kellogg’s

22.36

22.73

(6)

8

GlaxoSmithKline

22.31

22.30

(11)

9

Unilever

22.23

22.31

(10)

10

Tate & Lyle

22.08

22.24

(12)

11

Tata

22.06

22.39

(9)

12

Carlsberg

21.93

22.67

(7)

13

JTI

21.83

22.15

(13)

14

United Biscuits

21.62

21.33

(21)

15

Red Bull

21.50

22.00

(15)

=16

Britvic Soft Drinks

21.40

22.01

(14)

=16

Heinz

21.40

21.39

(20)

18

Procter & Gamble

21.26

20.86

(24)

19

Robinson Young

21.18

21.92

(17)

20

Kerry Foods

21.07

21.07

(22)

21

Danone

20.98

21.78

(18)

22

Molson Coors

20.94

21.97

(16)

23

Aimia Foods

20.85

21.02

(23)

24

Johnson & Johnson

20.83

21.46

(19)

25

Premier Foods

19.36

19.41

(25)

• Cash & Carry Management • December 2011

www.cashandcarrymanagement.co.uk


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

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

MERRY CHRISTMAS and a HAPPY NEW YEAR to all our readers and advertisers Š Lftan/Dreamstime.com


delivered

Transport arrivals Bidvest Logistics, parent company of 3663, has taken delivery of a consignment of DAF LF55 220 26-tonne vehicles – the first of a batch of 108 26-tonne Euro-5 trucks. The rest will come on stream at the beginning of the new year. They are fitted with Frigoblock electric twin refrigeration systems, as well as Microlise telematics to monitor driving style and provide delivery tracking.

Managing director of the wholesaler Andrew Selley said: “We have invested heavily in this brand new state-of-the-art fleet to make sure we stay ahead of the game with our transport.

Apprentice scheme for c-store trade

“We pride ourselves on our service delivery standard and these vehicles will transport our offerings in firstclass condition.” Tel: Bidvest UK 020-7493 4733.

SPAR wholesaler Blakemore Trade Partners’ retail training centre, The Guild Academy, has launched an apprenticeship scheme for the convenience retail sector. The initiative is linked with Retail Skill Smart to develop Level 3 Advanced Apprenticeship in Retail Management. So far 15 people in the West Midlands have signed up.

Eating styles to watch out for Researcher Horizons says that growth of different eating-out styles shows that the public is looking for ‘something healthy and different’. It cites the following: Mexican food-to-go Japanese brands Bagel outlets Frozen yogurt. In its recently launched Ones to Watch service, it

• • • •

charts the progress of small chains of between five and 25 units which have shown at least 20% growth over the past three years. The study details the growth of these high street restaurant, quick service and pub restaurant brands. It also includes ‘Bubbling Under’ brands – those which fall below these criteria, but

which show potential as trendsetters. The Ones to Watch service is designed to assist food and equipment suppliers to tailor new product development in line with current demand, as well as provide foodservice operators with information on market activity and eating-out trends. Tel: Horizons 020-8349 0162.

Shortt grows in stature A new accolade, ‘Local Hero of Enterprise’, introduced as part of the Growing Business Awards, has been won by Denys Shortt, founder of DCS Europe and chairman of the Coventry & Warwickshire Local Enterprise Partnership. The presentation to the head of the leading health & beauty products wholesaler was made at a London event attended by a host of entrepreneurs, including James Caan, Julie Meyer and Will King. Created by Real Business and the CBI in 1999, the Growing Business Awards recognise the achievements

22

Proudly accepting the award is Denys Shortt (centre) attended by Eric Pickles and Kate Bassett, representing the organisers.

of UK independent and entrepreneurial businesses.

• Cash & Carry Management • December 2011

The award was presented by Eric Pickles, Secretary of State for Communities & Local Government, who said: “Denys Shortt is my local hero because of his work with the Coventry & Warwickshire Local Enterprise Partnership. When other partnerships were looking for guidance from the Government, he just got on with it.” Accepting his award Shortt said: “I have realised life is not just about making money; it’s about helping others along the way.” Tel: DCS Europe (01789) 208000.

The programme consists of a number of workshops arranged by the SPAR Guild Academy team, covering such subjects as legislation, health and safety, managing performance and growing sales. Those enrolling also complete a work-based project to ensure they can transfer what they have learned into a store environment. Melanie Walker, BTP learning & development manager, said: “The first group of students have all passed the programme, which helped boost their confidence and retail knowledge. “Now, three more groups have enrolled, with The Guild Academy intent on providing this opportunity to stores across the Meridian & Welsh Guild over the coming years.” Tel: Blakemore Trade Partners (01902) 366066.

www.cashandcarrymanagement.co.uk


SCOTTISH

. winter 2011

NEWS

issue 66

the newsletter of the scottish wholesale association

Aiming for world-class status

Speakers at the networking event (left to right): George Benson, Sandie Holmes, Graeme Clark, Scott Brady, Alan Halliday, Kate Salmon. AT a networking event held last month at Hampden Park, Glasgow, more than 20 suppliers that are not currently members of the SWA heard persuasive arguments as to why they should join up. “Wholesaling is a vibrant industry, a challenging industry,” began executive director Kate Salmon. “Suppliers are sometimes seduced by the multiples; we can do sexy too.” The Association has around 35 wholesaler members and 80 supplier members, Kate stated. “As an Association, we value the input of the UK’s suppliers as they play an important role in the success of our wholesale members’ businesses. We want to work with you to influence your marketing and selling strategies.” SWA president George Benson commented: “We must work harder to champion the wholesale sector. We need to challenge wholesalers and suppliers alike to raise their game. “The economic climate is difficult but that creates more opportunities for the local store and, in turn, for wholesalers and suppliers involved in our industry.

However, the SWA is not just about retail wholesalers; we also have some very strong foodservice members.” George urged suppliers to attend the annual conference: “If you are remotely interested in getting your product to the consumer through a viable route to market, the conference is a no-brainer.” As regards Achievers, he said: “From a wholesaler perspective, entering the awards can only be good for business as entrants benefit from a free business review. The same goes for suppliers. Achievers helps to create a strong and vibrant wholesale channel.” Training, lobbying and legislation are other key aspects of the Association’s work, as is liaison between wholesalers and suppliers. “I see my role as a facilitator, encouraging dialogue through our non-licensed and licensed strategy meetings,” George explained. Graeme Clark, managing director of Scot-Serve, cited the strategy meetings as one of the main advantages of SWA membership. “Accessing this level of knowledge means you can come to the

market with a better chance of a successful and profitable launch. “The conference is a fantastic event,” he continued. “As well as offering captivating business sessions, there is plenty of time to network – a great chance to meet with customers, both existing and potential. The contacts I have gained have definitely added value to my business.” Alan Halliday, regional director of Coca-Cola Enterprises, agreed: “I never fail to take something away from the SWA conference: a new approach, a new idea.” He also spoke highly about the SWA’s awards. “Achievers gives honest feedback from those who matter the most: it provides an MOT for the business. Suppliers can get involved in the judging too. One of our sales managers said the judging process was fascinating and helped him in our own business.” Alan pointed out that gaining access to wholesalers is another clear benefit of SWA membership, whether through attending strategy meetings or supporting lobbying and training. Addressing the suppliers in the audience directly, he said: “Your business needs a balance to it. Don’t put all your eggs in the multiples’ basket. “SWA membership will benefit your business. I do not think you get a better bang for your buck.” In conclusion, George Benson said: “Together we want to create a world-class industry but we can only do that if our suppliers are fully behind us.” SWA consultant Scott Brady, managing director of ecos, talked about the Association’s lobbying and legislative roles, while Sandie Holmes, principal consultant of 121 HR Solutions, the SWA’s training provider, discussed the training programme: see page 2.


Legal guide well received TOGETHER with the Scottish Grocers’ Federation (SGF) and leading drinks companies, the SWA has distributed all 20,000 copies of the booklet The Alcohol Act Explained – A Guide to the Legislation. Acknowledged by the Scottish Government, this useful guide to the law for retailers has been very well received. It is supported by an online resource produced by the SWA and SGF, at www.AlcoholComplianceScotland.co.uk, which enables retailers to download ‘Challenge 25’ point-of-sale material and keep abreast of alcohol legislation. Speaking at the recent networking event (see page 1), Scott Brady of SWA consultant ecos said that legislation and lobbying form an important part of the Association’s role. “The political landscape of Scotland has changed with an SNP majority government. “The SWA’s council members are all very well respected and cumulatively they give me the power and authority to make the Scottish Parliament listen,” he noted. “In Scotland it is a different type of Parliament. We have to move much faster if we are going to have an effect on policy but there is a clear opportunity to talk to parliamentary representatives in a language they understand.”

‘Guaranteed return’ NEGOTIATION & Selling Skills, a seminar hosted by Tennent’s last month as part of the SWA training programme, succeeded in providing the delegates with helpful tips and advice on handling negotiations up to the vital point of sale. The workshop covered: The strategy of negotiation Use of different negotiation styles Prioritising negotiation objectives Closing negotiations Forecasting & planning of sales calls Targeting the right people/customers Adding value to the sale Sales methods. SWA members that took advantage of the workshop included Batleys, Dunns Food & Drinks, Filshill, and JB Foods. Without exception, all found the presentation useful and/or interesting and all felt the content was highly appropriate. Speaking at the recent networking event (see page 1), Sandie Holmes, principal consultant of 121 HR Solutions, which has been the SWA’s training provider since 2006, said: “The biggest benefit of the SWA programme is industry-specific training. It is very costeffective; indeed, we can guarantee wholesalers’ return on investment.” Next year’s training programme will include a presenting masterclass, as well as seminars on customer service, sales &

• • • • • • • •

YOUR OPINIONS of the Negotiation & Selling Skills seminar by Tennent’s “Even though this was a refresher course, I still picked up on numerous skills I had perhaps forgotten or not used to their full potential. I enjoyed it.” Kevin Steele, Batleys “I would take the opportunity to attend this course if possible. Refreshing and updating skills was covered at the same time as giving tools to people who haven’t done this before. Excellent.” Cathie Devlin, Dunns Food & Drinks “This course was very interesting. As a new start in sales, I found the tips and techniques a great help.” Craig Colander, JB Foods

negotiation skills, category management and managing conflict. The first event of 2012 will be held on 31 January and will focus on employment legislation.

£5,000 for Whizz-Kidz THE CHARITY Whizz-Kidz is £5,000 better off thanks to a raffle organised at the SWA annual conference with brewer Molson Coors. Conference delegates raised £4,415 and SWA president George Benson personally pledged £585. Whizz-Kidz is Molson Coors’ corporate charity partner, and the money raised will help provide disabled children and young people in Scotland with vital mobility equipment, opportunities to meet and have fun, and training to help them gain skills and look forward to a bright future George commented: “At every conference we like to work with one of our partners to raise money for a good cause, and causes don’t come much better than Whizz-Kidz.

George Benson (left) and Craig Cowles with Whizz-Kidz representative Arthur Lawson. “We are absolutely delighted to have raised so much to support their work.” Together with Craig Cowles, off-trade

sales director at Molson Coors, George presented a cheque to Whizz-Kidz representative Arthur Lawson.


Conference: Ahead of the Game THE 2012 conference, which will be held on 14–17 June at Crieff Hydro (pictured), will have the theme ‘Ahead of the Game’. SWA president George Benson commented: “Ahead of the Game follows up on the theme of Vision from last year’s conference. Once you have reached your vision, it doesn’t end there – you need a new vision in order to stay ahead of the game. This is all part of our attempt to make wholesaling a worldclass industry.” The conference will follow the same format as last year, with all business sessions condensed into two days. Wholesalers speaking include: Alex Fisher, managing director of 3663 Charles Wilson, chief executive of Booker Denys Shortt, managing director of DCS Europe Martin Williams, managing director of Landmark Wholesale Debbie Robinson, managing director of Spar

• • • • •

• Asim

Sarwar, managing director of United Wholesale (Scotland). The line-up also features several suppliers: Karen Salters, joint managing director of Beverage Brands, and Marcus Freer, sales director of SHS Steve Kitching, managing director of Cotts Beverages Mark Hunter, managing director of Molson Coors. Other speakers, including high-profile individuals from the wider business world, will be confirmed nearer the time.

• • •

s s e c c u s e t Tas in a mar

As always, the heavyweight business sessions will be counterbalanced by an enjoyable social programme that includes a formal banquet and the customary champagne breakfast. Kate Salmon, SWA executive director, said: “We are returning to Crieff Hydro because the feedback we received in the last two years confirmed that standards at this independently-owned hotel are excellent. It is also a fantastic venue for families.” To make a booking, contact the SWA on 0131-556 8753.

ar on year ket growing ye

*

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Affordable Tasty Refreshment


Guest editor of this issue of Scottish Wholesale News is Simon Oldham (below), group sales director of Highland Spring. Here he explains why, after an extremely challenging 2011, the future is looking brighter for 2012.

Better prospects THIS year has been one of the toughest many can remember, especially for those involved in soft drinks, whether a supplier, wholesaler or retailer. Severe price rises combined with a drop in sales combined to create a perfect storm. For bottled water suppliers, we have seen our biggest input cost, PET, rise by over 50%. A failed cotton crop in 2010 caused a surge in the demand for polyester to meet demand for clothes in the burgeoning growth markets of India and China, causing a knock-on effect on prices of PET. To make matters worse, after an encouraging spring and a false dawn, and despite the weathermen promising a BBQ summer, it never materialised. Sales of water across June and July were 12% down on last year. So what gives me hope for 2012? I think there are three things that will drive growth for wholesalers:

1. Summer of 2012 – never before have we had so many events that can provide category growth. The Royal Wedding was the solus highlight of 2011; however, 2012 provides four months of nonstop opportunity to capitalise on – from the Diamond Jubilee and European Football Championship to the Olympics and Paralympics. And surely we cannot have another year with such poor weather! 2. Tobacco display ban – Booker’s Charles Wilson has gone on record to say that the impending tobacco display ban in the multiple grocers could drive as much as £1bn of sales for the independent sector. 3. The economy – the one positive arising from the sliding economy has been that consumers are shopping locally, making more but smaller shopping trips.

The combination of these factors provides a real opportunity to create a positive change in consumer buying patterns. The big prize is to make this change long-term by working with retailers to make the shopping experience positive and memorable. Focusing on three elements will ensure success:

• Retail compliance and execution • Creating exciting instore events • Providing quality community-based customer service.

Next year provides a unique opportunity for us all. Let’s grab it with both hands. If you see opportunities to work more closely with Highland Spring, I’d be delighted if you would contact me at SimonO@highlandspringgroup.com.

editor: Kirsti Sharratt publishing director: Martin Lovell Published by Winlove Publications on behalf of: The Scottish Wholesale Association 30 McDonald Place Edinburgh EH7 4NH TEL: 0131-556 8753 FAX: 0131-558 1623 e-mail: kate.swa@btconnect.com web: www.scottishwholesale.co.uk For full details on membership of The Scottish Wholesale Association, contact executive director Kate Salmon

Member offer A DATA collection service already used by SWA wholesaler member William Yule and supplier member Highland Spring Group is now being offered to all SWA members at a discounted rate. Wastepack Data Service is a collaboration between waste management specialist consultancy Greenstreets and the Wastepack Group and is available to any firm with packaging waste obligations, whether a member of a compliance scheme or a direct registrant. As well as data collection, the service can include preparing and submitting returns, handling customer enquiries and attending packaging audits. Further details: (003531) 410 0618.

ANNUAL CONFERENCE 14–17 June 2012

ACHIEVERS AWARDS DINNER 9 February 2012

BOOK NOW! 0131-556 8753 www.scottishwholesale.co.uk


Proud sponsors of the

Corporate Responsibility Award at the Scottish Wholesale Achievers

Imperial Tobacco is proud to support Scottish Wholesalers

www.imperial-trade.com


in focus

The ties that bind Few, if any, C&C/wholesalers reach the 100-year mark as an independently-run business. One West Country concern has just bucked the trend, as Mervyn Gilbert finds out.

Chairman Martin Jones (right) with md Simon Jones (left) and wholesale director David Jones.

Trawl through the Register of Electors in the West Country and one surname crops up time and time again – Jones. Pick any one at random, and the chances are he or she will be associated with perhaps the most closely-knit family the food trade has ever seen. If that sounds a sweeping statement, just scan the pages of a specially produced book to mark the dynasty’s 100 years in business. There are far too many Joneses to count in a labour of love that would do credit to the compilers of tv series Who Do You Think You Are? And there’s more. What has come to be known as L&F Jones is now into its fifth generation. And if the company stays in family hands for the foreseeable future, the name that perpetuates it will be around for a long time yet. Today, the business is based on three strands: delivered wholesale, company-owned retail shops and a site which includes a leisure club and hotel. It’s a far cry from 1911 – the days of matriarch Catherine Lucy Jones. She founded what was initially a small haberdashery business at Stratton on the Fosse, Somerset. Soon after, she turned her attention to grocery, cigarettes and ice cream, with additional money made from running a café. Many chapters – and many Joneses – later, in 1969 the company converted the discontinued café into a 2,000 sq ft cash & carry. That was to be the Joneses’ first venture into this type of trading. The family soon realised, however, that the Stratton on the Fosse site was far too small to

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• Cash & Carry Management • December 2011

allow it to get rich. So in 1971 it paid £15,000 for a 24,500 sq ft C&C at Radstock, nine miles from Bath. The current chairman, Martin Jones (16 years old in those days!), takes up the story. “Radstock stayed open until 1983. It traded very successfully, but again, sales outgrew the premises. “Six years before that, we took over a catering C&C at Shepton Mallet, which 10 years later was transformed into a delivered on-trade operation. We were also running similar depots in Weston-super-Mare and Chard. These three sites were acquired by The Liquid Asset Group in 1994.” While all this was going on, L&F Jones was also operating from what is, today, its sole wholesale warehouse, in Midsomer Norton. The first 30,000 sq ft part of the site was completed in 1983 at a cost of £308,772. The opening ceremony was performed by Catherine Jones, Martin’s grandmother, five of whose six sons worked in the business. The opening day drew 250 customers and takings were double those of a normal day at the Radstock depot. Soon after, the company, headed by Laurence Jones as chairman (Martin’s father), welcomed Weetabix chairman and managing director Richard George to unveil the commemorative plaque at what was now a 58,000 sq ft warehouse. When Laurence stepped down as chairman, brother Chris took over that role – a post he has occupied since 1998. After Laurence passed away last year, Chris became the firm’s first president.

www.cashandcarrymanagement.co.uk


Get ahead of the competition SHS Sales & Marketing are pleased to sponsor the Best Licensed Wholesale On Trade Category for the Scottish Wholesale Achievers. We offer the depth of service and sales experience required to support great brands and give them the boost they need to grow in the cash & carry, independent and convenience channels.


in focus Outside of the wholesale business, L&F Jones has also amassed 17 company-owned retail stores, under the control of group md Simon Jones (Chris’s son and Martin’s cousin). All are situated within a 25-radius of the Midsomer Norton site, where 11 vehicles service the retail outlets with most of their requirements, apart from chilled and frozen food, newspapers, bread, milk, stationery and greetings cards, which are delivered directly by suppliers. The Jones fleet also visits other retailers in the surrounding area. Delivered wholesale turnover is almost equally divided between retail, accounting for 50.45%, and catering, with 49.55%. The company’s Centurion Hotel, with 45 Martin and cousin Simon outside one of the 17 company-owned stores. rooms, is one of just 11 Best Western Plus (superior status) hotels in the 297-hotel group. & spirits, soft drinks, confectionery and crisps & snacks. L&F Jones, which is second only to Andrew McMillan in L&F Jones has a staff of 305, of whom the majority (162) Stanraer in terms of longevity as a Landmark Wholesale work in the retail business. The rest are equally split into member, is forecasting total turnover in its centenary year of wholesale and leisure. £23.4m, up from £22m in 2010. Cheques are awarded annually to long-serving staff, of Of this, £12.3m will be from wholesale (including a small whom Dave Upson heads the list with 41 years’ service. He amount of cash & carry), £9.3m from the retail chain and was head buyer before becoming warehouse supervisor. £1.8m from the leisure division. Monetary rewards are determined by the period of servIn March last year, delivered accounted for 85.48% of the ice. For instance, those reaching the 15-year mark receive wholesale trade and C&C for 14.52%. That split is now £200; for 20 years’ loyalty there is a £300 gift; 25 years with 88.59%/11.41%. (The chairman is meticulous with figures!). the company earns £400 for the employee; 30 years’ service Says Martin: “We have 803 live C&C customers (three £500; 35 years £600; and 40 years £700. checkouts in the warehouse) and 1,617 on the delivered side. The company supports a different charity each year. In its “Many of our customers now require – and expect – a centenary, it is raising money for Kidney Research UK, kidney greater degree of frequency of delivery, so we offer them up disease having claimed six members of the family. to six delivery days a week, particularly those who require Jones set a target of £40,000. But after its gala dinner last fresh meat.” month, held in the Pump Room at Bath’s Roman Baths, Meat is an aspect of the business that has grown since where £6,700 was collected, the total actually reached L&F Jones last year bought the Paul Loader wholesale and £51,500. The centenary event, attended by 200 people, retail meat business. included the presentation of 18 awards. “Company strategy is to steadily expand to drive future “We have held fund-raising activities every month of this growth,” says Martin. “In the past three years we have year,” says Martin. “They include sponsored walks, quiz invested £1.5m, including £500,000 on the hotel and club nights, tea parties, charity balls and golf days. Recently Chris, refurbishment, £250,000 each on fresh meat and frozen food former director Richard and myself walked the 100-mile storage, £150,000 on vehicles and £140,000 on IT.” Cotswold Way, raising £2,500.” Deliveries are made over a 50-mile radius, the minimum Martin Jones, 56, who was md for 13 years before being drop being £50. Education, care homes and pubs are the appointed chairman in October, has been on the Landmark three largest customer groups. board for six years and was recently voted in for a further As well as chilled & frozen food and fresh meat, the 8,000 three-year term. products cover grocery, household/non-foods, beers, wines The first of the fourth generation of Joneses to work for the company, he has already made provision for the next in line to continue the family tradition. Son Gavin, 27, is business development director while daughter Liz, 30, is account manager and charity co-ordinator. When they have both produced offspring of their own, and their children are about to leave full-time education, be sure their careers teachers won’t be asking them: “So what do you want to do when you leave school?”

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From the brands

people love

Kraft Foods are pleased to sponsor Best Cash and Carry for Scottish Wholesale Achievers


supplier strategy

Aiming to be a bigger cheese A prize-winning dairy industry supplier in Ireland is setting its sights on expanding in the UK cash & carry/delivered wholesale and foodservice sectors. One of the leading cheese producers in Ireland is making a concerted effort to expand in the UK. And it is through the C&C/wholesale and foodservice channels that it sees the greatest opportunity for growth. Dairygold Food Ingredients, based in Cork, claims to source 17% of the total Irish milk yield through a bank of 3,000 dairy farmers. That amounts to 850m litres a year. UK sales & marketing director Terry Cunningham says: “We make one tonne of Cheddar every hour. Because Cheddar accounts for 54% of the UK cheese market, it makes sense to concentrate on this variety and not on territorials such as Red Leicester and Double Gloucester.” While the company already has sites in England (Crewe and Leeds), as well as in Germany, France and Spain, UK output represents just 12% of total sales of £700m. Crewe (the factory was formerly occupied by Haslington Cheese, bought by DFI in 2000) is where production of grated and diced cheese takes place, with a capacity of 600 tonnes a week. The company also makes Italian-style cheeses at this location. At Leeds, it produces soft varieties, such as mascarpone and Philadelphia-style cheese, used in the production of cheesecakes, sauces, quiches, savoury dips and sandwiches. Cunningham says: “We are determined to develop in the C&C/wholesale and foodservice sectors, where we are currently represented in all 30 branches of Makro, as well as in Brakes and 3663. We sell them Cheddar in 500g, 1kg and 2kg blocks. “In Makro, where we have been doing business for three years, we have seen our volume over that period increase from an initial two tonnes of Cheddar a week to almost 15 tonnes.” To achieve its UK objective, DFI has recruited a strong sales team, which includes Andrew Marriott as business development manager for the cash & carry channel and for contract caterers; Tim Sparkes, who is responsible for the delivered wholesale/foodservice sectors; and Tony Kourellias and Antonio Altieri, whose role is to develop DFI’s presence with regional cash & carries, delivered wholesalers and foodservice operators. Marriott, who joined in August, previously worked for a soft fruit co-operative. He also spent time with Baxters Food Group and Sainsbury, where he was a buyer for 15 years, handling toiletries, housewares and ambient food. “We make a total of 35,000 tonnes of Cheddar a year,” says Cunningham, “and we augment this with 10,000 tonnes which we buy in. “Production is concentrated on 10 months of the year, excluding December and January, when the milk yield is not at its best. Our potential is 60,000 tonnes of Cheddar annually.” At present, 70% of DFI’s cheese destined for the UK goes

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• Cash & Carry Management • December 2011

Cunningham outside the Crewe site.

into food products, with just 30% targeted at C&C/wholesale and foodservice. Says Cunningham: “Until now, we have been too dependent on the manufacturing side. We have a flexible range and like to think of ourselves as a one-stop shop for dairy products, with a consistent quality and provenance.” DFI, which has 180 staff in England, has been recognised for its quality at the prestigious Nantwich Show, where it has been awarded ‘firsts’ for whole Cheddar and Red Leicester and for grated Cheddar. It has also gained a higher profile by exhibiting at the FIE (Food Ingredients Europe) exhibition in Paris last month and at Anuga in Cologne. Now Cunningham and his team are determined to slice off a larger share of the UK’s C&C/wholesale and foodservice business.

www.cashandcarrymanagement.co.uk


JTI are pleased to support

‘Best Retailer Development Programme’ for Scottish Wholesale Achievers

Japan Tobacco International (JTI) markets key cigarette brands in the UK, Benson & Hedges, Silk Cut, Camel, Mayfair and Sterling. We are a major player in the OTP (Other Tobacco Products) arena with Hamlet cigars, Old Holborn, Amber Leaf and Benson & Hedges ‘roll your own’ tobacco. With over a 39% share of the UK tobacco market1, we employ over 1800 people to support the business including 220 full time professional sales personnel dedicated to supporting our trading partners. Our UK Head Office is based in Weybridge, Surrey, with manufacturing in Ballymena, Northern Ireland, a National Distribution Centre in Crewe, Cheshire and a Business Service Centre in Manchester. 1 Nielsen Market Track 2010

JTI’s UK trading company is Gallaher Limited, Members Hill, Brooklands Road, Weybridge, Surrey, KT13 0QU, England. UK Customer Care Line 0800 163 503


achievers

Vote for best advert Cash & carries and delivered wholesalers across Scotland have named their favourite advert of 2011 for the Achievers ‘Best Advertising Campaign’ category. The trade will now vote on the top nominations (see below). Other products/companies nominated include: Cadbury, Gordon’s Gin, Heineken, Lucozade, M&Ms, Müller, Ribena, Tetley Tea and Weetabix.

Coca-Cola, ’Holidays Are Coming’

Lynx, ‘Cleaner You Are, The Dirtier You Get’

Irn-Bru, ‘Summer Phenomenal’

Tennent’s, ‘Hugh’s Pride’

Company: ...................................................................

Best ad: .....................................................

Contact name: ............................................................

...................................................................

Signed: .......................................................................

Please fax your completed form to Kirsti Sharratt on (01334) 479695 by Friday 23 December. 34

• Cash & Carry Management • December 2011

www.cashandcarrymanagement.co.uk


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At Britvic, we remain as committed to our partners’ success as we’ve always been, driving sales growth through unrivalled customer service, category expertise and best-in-class equipment solutions. To find out more about working with us, call 0845 758 5450 or email newbusiness@britvic.co.uk

Britvic are pleased to sponsor Scottish Wholesale Association Champion of Champions 1. Nielsen Total Coverage Value MAT to 26th Dec 2009. 2. Nielsen Scantrack 52wk MAT W/E 09/07/2011. 3. BSD consumer research, 2009. 4. Canadean, 2010. 5. Nielsen Scantrack 52wk MAT W/E 09/07/2011 (in the past 12months). 6. Nielsen Homescan Penetration, w/e 10.07.10. 7. Nielsen Scantrack Convenience Value - 52 weeks to 27.11.10. 8. Nielsen Scantrack 52wk MAT W/E 09/07/2011. 9. Nielsen Scantrack, March 2010. 10. Nielsen Scantrack 52wk MAT W/E 09/07/2011. Britvic, drench, J2O and Tango are registered trademarks of Britvic Soft Drinks Ltd. 7UP, 7UP Free, Lipton Ice Tea, Mountain Dew Energy, Pepsi Max and the Pepsi globe device are registered trademarks of PepsiCo Inc. Fruit Shoot and Robinsons are registered trademarks of Robinsons Soft Drinks Ltd. The Gatorade name and associated designs are registered trademarks of Stokely-Van Camp, Inc, and are used with permission.


achievers

Top two switch places

OCTOBER PERFORMANCE

In the battle for the Achievers ‘Best Overall Service’ award, Coca-Cola Enterprises has taken over the lead from AG Barr. The scores relate to the suppliers’ performance in October.

36

SEPTEMBER score/position

POSITION

COMPANY

SCORE (max. 40)

1

Coca-Cola Enterprises

34.18

33.34

2

2

AG Barr

34.05

34.00

1

3

Maxxium

32.14

30.01

5

4

Britvic Soft Drinks

31.70

32.45

3

5

Highland Spring

31.08

32.39

4

6

Kraft Foods

30.93

30.98

6

7

Tayto

30.79

30.72

7

8

Whyte & Mackay

30.77

29.98

8

9

Nestlé 1st Choice

30.37

29.53

10

10

Imperial Tobacco

29.21

29.70

9

11

JTI (Gallaher)

28.98

29.45

11

12

SHS

28.65

27.61

16

13

Tata

28.51

28.56

14

14

Mars

27.57

27.18

18

15

Heineken

27.31

29.13

12

16

C&C Group

27.19

28.73

13

17

Diageo

27.00

27.10

19

18

PepsiCo

26.98

28.15

15

19

Carlsberg

26.25

25.40

23

20

Red Bull

26.07

27.57

17

21

Unilever

25.71

24.59

25

22

GlaxoSmithKline

25.63

26.75

20

23

Premier

25.53

24.69

24

24

Kellogg’s

24.76

23.40

29

25

Bacardi Brown-Forman

24.52

25.91

22

26

AB InBev

24.12

26.29

21

27

Unilever Foodsolutions

23.83

24.21

26

28

United Biscuits

23.33

23.81

27

29

Heinz

23.22

22.83

30

30

Molson Coors

23.18

23.59

28

• Cash & Carry Management • December 2011

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ugh. But Market conditions are still to argest l fo r m e mbers of the UK’s ooking buying group things are l ’ll get u g o o d . J o i n t h e m a n d yo es and fantastic wholesale pric e our u invaluable support. It’s tr

passion for the sector burns brighter than ever.

Today’s the day to start making a difference to your business. Call our team on 01724 291745.

What a difference

make


achievers

Last chance to vote In the final round of voting, wholesalers in Scotland are asked to rate performance in November. NOVEMBER PERFORMANCE

Deliveries including Admin Support (max. 15 points) write N/A if not direct

Supplier Contact (max. 15 points)

Packaging (max. 5 points)

Scottish Focus (max. 5 points)

TOTAL

AB InBev AG Barr Bacardi Brown-Forman Britvic Soft Drinks C&C Group

(inc Magners/Tennent’s)

Carlsberg Coca-Cola Enterprises Diageo GlaxoSmithKline Heineken

(S&N)

Heinz Highland Spring Imperial Tobacco JTI (Gallaher) Kellogg’s Kraft Foods

(Cadbury)

Mars Maxxium Molson Coors Nestlé 1st Choice

(retail/confec)

PepsiCo

(inc Walkers)

Premier

(inc Foodservice)

Red Bull SHS Tata

(Tetley)

Tayto

(Golden Wonder)

Unilever Unilever Foodsolutions United Biscuits Whyte & Mackay

Company.................................................. Contact name.................................................. Fax to (01334) 479695


Granules - great tasting gravy everytime

PACK • Bisto gravy granules - made in Britain by British chefs for the British palete • Bisto is best in taste - 77% of gravy consumers prefer Bisto to the leading competitor* • Ready in seconds - the perfect accompaniment to your Christmas menu • Bisto’s new packaging allows caterers to pour straight from the box, helping to reduce waste and the bag is now re-sealable to ensure granules stay fresher for longer

For more information please call 0845 1221 900 or visit www.betteraddbisto.co.uk Premier Foods are pleased to sponsor Employee of the Year for Scottish Wholesale Achievers * Source: MMR 2010 - 148 individuals tasting Bisto vs. Knorr


easter confectionery

Big players are being egged on According to IRI (all outlets for the 16 weeks to 23 April 2011), Mars, Cadbury and own-label increased their value share of the Easter confectionery market. Mars, which claims to be the second biggest player in the Easter market place, performed ahead of the sector in 2011, showing growth of 10.9%. With consumers turning to seasonal products and boxed chocolate at this time of year, in addition to their usual confectionery, the company is launching several new items, as well as ‘returning favourites’. Newcomers include Galaxy Bubbles Filled Egg, which it is hoped will build on the success of Galaxy Bubbles in a bar format, which hit the shelves in February. “The launch also plays perfectly to the strength of the self eat category at Easter time,” says a Mars spokesperson. Galaxy Caramel Filled Eggs are being introduced in a mini format. Each pack contains eight individually wrapped eggs with a smooth chocolate caramel centre, for sharing with friends and family or as an indulgent self eat. Also new from Mars are: Galaxy Ripple Medium Egg (supported by a £2m media investment for Galaxy: a favourite Mars brand. the Galaxy brand throughout 2012); and M&M’s Medium Eggs (100g milk chocolate hollow egg and standard bag of M&M’s peanut) and Luxury Eggs (200g hollow chocolate milk egg with four standard bags of M&M’s peanut). Says the spokesperson: “Introduction of these eggs, featuring the iconic red and yellow characters for Easter, follows an exciting year for the brand which saw the opening of the first M&M’s World Store outside of the US situated in central London.” For the fourth year running, the Malteser Bunny is making a return for Easter. It also comes back as a luxury egg – a hollow milk chocolate egg and four Malteser bunnies. Other Mars products include Galaxy Caramel Filled Egg, which contains a smooth chocolate caramel centre, and Galaxy indulgent shell eggs. Maltesers, first produced in the UK 75 years ago, is said to be the No.1 classic single flavour brand, available in a small and large box format. The boxes had sales of £6.6m over the 2011 Easter period. Another company favourite is Celebrations, which comes in such formats as a mini box, small carton and large carton.

Marketing activity New Cadbury branded products are being supported by a range of marketing activities in a bid to boost the overall Easter category, which grew by 4.4% in 2011. Cadbury Creme Egg, the No.1 Easter brand, is launching a new bitesize product – Cadbury Creme Egg Splats. Each 165g bag includes small chocolate shaped ‘splats’, with a Creme Egg goo filling. And for the first time since the early ’90s, Cadbury Mini Eggs is being supported with a new ad campaign in 2012. The brand, which grew in total sales by 11.2% this year, will be on screen in March. The Mini Eggs brand is also available in a new pack size this Easter – a stand-up 195g bag – while the 45g self-eat Cadbury Mini Egg tube now comes in a square format with resealable lid. All data Nielsen.

Eggs in two flavours New Ferrero Eggs for Easter are described as ‘a premium token gifting sku targeting the top end of the mini eggs category’. Available in two flavours – hazelnut and cocoa – the product has an rsp of £1.99, with each 100g pack containing 10 foil-wrapped eggs. It is being launched to the independent trade through the cash & carry/ wholesale channel next month. Jason Sutherland, UK sales director, says: “We’re really excited to be introducing our new Ferrero Eggs at this key time of year. We also advise retailers to stock favourites such as Ferrero Rocher 16 and 24 and Ferrero Collection 16 and 32, alongside a number of more unique impulse products to highlight the different occasions.”

For further information: Cadbury (08702) 400861 Ferrero UK (01923) 690300 Mars Chocolate UK (01753) 550055

All data IRI.

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MaltEaster®® bunny offers the trade an opportunity for incremental sales* In 2011 MaltEaster®® bunny delivered sales of £9.38m** Supported by TV advertising

Maltesers® and MaltEaster® are registered trademarks ©Mars 2011. *KWP Take Home & FOTG Data to 15th May 2011. **IRI Total Market 16wks 2011.


pies & meat snacks

A £100m market With the nights drawing in, and colder weather on the horizon, hot food sales will keep the cashiers’ fingers warm. Rising demand for hot snacking products within the independent retail trade presents a growing profit opportunity for the cash & carry/wholesale channel, according to Angela Daulby, convenience unit controller for Kepak Convenience Foods. She urges depots to give more thought to key areas such as visibility, availability and range stocking to capitalise on the ‘hot snacking’ opportunity. The sector is worth over £100m (Nielsen total market 3/9/11) and it is a top performer in the broader chilled snacking category. Daulby told Cash & Carry Management: “The huge amount of work we’ve done with independents – in key areas such as instore merchandising, ranging, effective use of One of Kepak Convenience Foods’ leading brands. point-of-sale material and heavyweight brand support – is really paying dividends. by installing Kepak-branded microwaves, boosting hot “We know that increasing numbers of shopkeepers are snacking sales throughout the day. now sourcing hot snacking products via cash & carries, so The equipment is available from RH Hall (tel: 01296 663 our regional account managers are working with, and 400) for £240 plus VAT. This includes £100 worth of Kepak encouraging, depots to give more prominence and space to stock vouchers and a range of PoS material. hot snacking. Where this is happening, the sales uplifts are Kepak continues to drive consumer demand for marketconsiderable.” leading products such as Rustlers and ZUGO’s Deli Café, as She adds that more independent retailers are benefiting well as fast-growing sub brands such as Rustlers Hot Wraps and Hot Subs. Brand support includes national tv advertising and reader offers, supported by a wide range of PoS for both C&Cs and Baxters Food Group, of Fochabers, Morayshire, maker of independents. premium ambient foods, now owns the Fray Bentos brand and business, which it bought last month for an undisclosed sum from Princes. Pukka Pies is sponsoring new ITV 1 show, Ade in Britain. Fray Bentos, formed in 1899, incorporates a range of Broadcast five nights a week, the television production canned pies, including steak & kidney and minced beef & follows Ade Edmondson on a ‘culinary discovery’ around the onion. British Isles. The new owner plans to invest and develop the brand The company has also previously sponsored Who Wants to extend its reach into the ambient meat market. to be a Millionaire, The Championship and Regional Soccer Audrey Baxter, Baxters Food Group chairman, says: Nights. “Like Baxters, Fray Bentos is a heritage brand and is Marketing & business development controller Peter known the length and breadth of the country, holding a Mayes says: “We think there is a great fit between Pukka Pies special place in the hearts of British consumers, both and Ade in Britain. young and old. “Our sponsorship credits are slightly tongue in cheek and “We have constantly sought out new opportunities – we had a lot of fun producing them.” most recently through acquisitions in Canada and Australia – and we also invested in a new-build Polish manufacturing operation. Fray Bentos will provide an array of opportunities to develop our position in the UK market and internationally.” Baxters Food Group (01343) 820393 Manufacture of Fray Bentos products will transfer over Kepak Convenience Foods (01772) 688300 the next 12 months to Baxters’ Fochabers site. Pukka Pies (01162) 644004

Fray Bentos changes hands

Television sponsor

For further information:

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• Cash & Carry Management • December 2011

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employment law

Slippery slope? Human resources expert Cate Ritchie (right) advises wholesalers on how to reduce the risk of slips and trips in the workplace. According to the Health & Safety Executive (HSE), slips and trips are the single most common cause of major injury in UK workplaces, accounting for nearly half of all reported major injuries and almost a quarter of all ‘over-three-day injuries’. The HSE has calculated that one slip or trip incident occurs every three minutes. Slipping and tripping in sectors such as catering, construction and agriculture can lead to more serious injuries such as that of the 16 year-old who plunged her hand and arm into a deep fat fryer to save herself from slipping on a wet floor. Most of these slipping and tripping accidents are foreseeable and could have been prevented by implementing simple control measures; for example, many are caused by wet floors, which could have been signposted or screened off. In all cases, there is a duty for the employer to ensure the health and safety of employees and any other person in or around the workplace.

• obstructions on the floor or on walls at low level • cables or trailing leads across walkways • poor housekeeping, work items or rubbish walkways • poor lighting levels • sloping or uneven flooring or surfaces • unsuitable footwear.

Control the risk The main means for controlling the risks from poor housekeeping include: keeping work areas tidy, and ensuring that waste is not permitted to accumulate in inappropriate areas or to block or restrict walkways ensuring that inappropriate storage of materials, products, tools or other obstructions are not allowed to encroach into walkways ensuring adequate maintenance of the fabric of the building (including floor coverings) to correct defects ensuring adequate inspections of the work areas at regular intervals to spot potential problems and obtain rectification before they become significant risks ensuring that adequate cable management systems are available, and used where cables have to cross walkways ensuring that lighting systems are adequate to prevent hazardous shadows, and are correctly maintained to ensure that they remain adequate ensuring that any changes in level of walkways are well lit and easy to recognise ensuring that protrusions into walkways are removed, re-sited, protected by barriers or covers, or are made easier to see.

What are the causes? Commonly, the causes of slips and trips revolve around housekeeping problems, lack of care whilst completing a familiar action or task, or because of workplace layout. As an example of lack of care of a workplace, it is often felt by the occupiers of an area that it is always someone else’s ‘responsibility’ to rectify or report a fault or clean up spills, or get a cleaner to do it. In addition, factors such as lack of storage space or improperly stored items can present hazards to people using an area – particularly in an emergency situation – and also to maintenance staff attempting to access areas that have been made more restricted by incorrect storage.

The main causes of slips include: wet or dusty floors inadequate concentration – reading or using a mobile phone when walking spills of liquids or fine powders items, such as plastic filing sleeves, left lying on floors loose floor coverings on slippery floors inadequate lighting or too bright lighting causing glare wet or icy conditions use of unsuitable footwear.

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The main causes of trip hazards include:

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If you would like to talk to Cate about a particular HR issue in your business, contact her at cate@121hrsolutions.co.uk or telephone (0792) 121 3890.

• loose floorboards • loose floor coverings – carpets or mats • coats on the backs of chairs, or personal belongings left inappropriately on the floor

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products & promotions Larger packs

‘Mum knows best’ WRIGLEY – The confectionery supplier has launched a campaign for its medicated brand Lockets. It will run until the end of January 2012. The multi-media drive (headed by radio) features a mother figure as the brand ambassador and plays on the idea that ‘Mum Knows Best’. It aims to demonstrate the benefits of the sweets to those who are feeling at their worst and want a simple solution for nasal congestion and sore throats. The company is providing retailers with point-of-sale material, including shelf talkers, counter top units and clip strips to highlight the range. Medicated brand manager Peter White said: “We want to encourage retailers to stock up as the coughs and cold season kicks in. “Lockets should be available throughout the year, but the visibility of the range should be heightened during this key period.” Lockets Honey & Lemon is claimed to be the best-selling medicated confectionery line in independent and symbol stores (Nielsen MAT 10/9/11). Tel: Wrigley (01752) 752094.

WEIGHT WATCHERS FROM HEINZ – ‘Even More’ is a new selection of larger frozen ready meals which include a side portion of vegetables. With a ProPoints value of nine per meal and an rsp of £2.79, the range comes in 380g packs, compared to other Weight Watchers From Heinz meals, which are between 300g and 330g. The two varieties are: chicken in white wine sauce, with tagliatelle and green beans; and beef in peppercorn sauce, with diced potatoes, sweetcorn and peppers. A £1.7 million marketing campaign focuses on the whole range. Weight Watchers From Heinz claims a 13% share of the £466 million frozen ready meal category (Nielsen year to 6/8/11). Tel: Weight Watchers from Heinz (0800) 528 5757.

Making an impact BAT (UK) – Three months after the launch of what the tobacco supplier described as the UK’s first demi-slim cigarette, Vogue Perle is said to be exceeding sales predictions. In August, it achieved a national market share of 0.07%. It is currently stocked in 72% of retail outlets that are covered by BAT UK, and 1,800 packs of Vogue Perle are being sold every day across the UK. With an rsp of £6.20, it is positioned in the mid-price segment, where it accounts for a 0.4% share. All data AC Nielsen retail audit, August 2011.

Tel: BAT UK (0800) 444236.

Reduced oil UNILEVER FOOD SOLUTIONS – The Knorr Patak’s range of 10 Indian spice blend pastes are now available in reduced oil and also meet 2012 Department of Health salt targets. Category manager, sauces, Sarah Branagan said: “Our website gives lots of information, marketing tips and advice to help chefs put authentic Indian dishes on the menu and includes simple four-step recipes.” Tel: Unilever Food Solutions (0800) 783 3728.

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Portion control TASTY LITTLE NUMBERS – Bidvest Logistics, a sister company of 3663, is handling the sales and distribution of this new portion-controlled snack brand, described as ‘the snack that takes the messin’ out of guessin’. The range of 11 skus, which includes chocolate bars, savoury snacks and ‘heat & eat’ microwaveable pots, has gained listings in more than 500 One Stop stores, with Amazon.co.uk, foodservice wholesaler DDC, of Hemel Hempstead, Herts, and 3663. It has also been supported by contract caterers, including Compass Group and Bartlett Mitchell, while a chilled ready range has been developed by Kerry Foods for the retail channel. Concept creator Jo Beach calls Tasty Little Numbers “a lifestyle brand for the health conscious, and not a diet food”. Tel: Tasty Little Numbers 0203-137 5140.

More Platinum PROCTER & GAMBLE – Fairy has introduced a premium Platinum washing-up liquid and relaunched dishwasher tabs under the same name. The new washing-up liquid is claimed to offer consumers the degreasing power of an overnight soak in just 10 minutes, providing ‘exceptional grease cutting power and Fairy’s best ever shine’. The relaunched Platinum dishwasher tabs have been treated to a ‘significant formula and packaging upgrade’. Rsps: Washing-up liquid, 433ml, £1.69; and 650ml, £1.99. Dishwasher tabs, 20, £7.49; 30, £9.99; and 40, £12.99. Tel: Procter & Gamble (0800) 597 3388.

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products & promotions Biscuit launch

Ads and sampling

TETLEY – Continuing its programme to extend the appeal of the Tetley Tea Folk with a range of products, the company has launched a selection of Gaffer’s biscuits, which are being distributed nationally through Nisa stores. They come in three flavours: choc chip, golden crunch and ginger. Sold in packs of six, they have an rsp of £1.29 (following a promotional price of £1). The biscuits are made under licence by Yorkshire bakery Grandma Wilds, in Steeton, North Yorkshire. The tea supplier’s marketing manager Anand Gandesha said: “Tea is a top three top-up item in c-stores, so it makes sense to have this range of biscuits available to partner a good cup of Tetley tea.” Tel: Tetley GB 020-8338 4000.

REPUBLIC TECHNOLOGIES UK – The company is rolling out a national ad and sampling campaign for its Swan RYO smoking accessories. The activity forms part of a £1m marketing investment in the new-look range of filters and papers, relaunched earlier this year with a new identity, pack formats and products. There will be insertions in national daily newspapers in the run-up to Christmas, and throughout this month more than 100,000 pocket-size Swan combi packs, containing both filters and papers, are being issued to adult smokers. Marketing manager Mark Alldred said: “We’re highlighting the convenience, new pack combinations, unique slide and catch slim design and cost effectiveness of the new Swan combi pack at a time when the festive season will be in full swing.” Tel: Republic Technologies UK (01494) 533300.

On the high seas DIAGEO – Talisker is the title sponsor of the Atlantic Challenge, ‘the world’s toughest rowing race’, which began this month as the Talisker Whisky Atlantic Challenge. Each of the 17 crews will row approximately 3,000 miles. Ben Booth, Western Europe brand manager, said: “The whisky, made in the Isle of Skye, represents passion, confidence, challenge and achievement.” Competitors are expected to arrive at the finishing line in the Caribbean from mid-January onwards, although not all teams are expected to succeed. Talisker is described as ‘a powerhouse single malt Scotch whisky’. Tel: Diageo GB 020-8978 6000.

The biscuit company’s major brands.

Rebranding BURTON’S BISCUIT COMPANY – Following a corporate rebrand, Burton’s Foods has replaced its trading name with the Burton’s Biscuit Company. The change is said to ‘represent a significant milestone in the company’s transformative journey over the past two years’. The supplier, responsible for such brands as Cadbury biscuits, Jammie Dodgers, Maryland Cookies and Wagon Wheels, claims to be the only major UK biscuit concern that concentrates solely on biscuits. The corporate strategy, including a new logo, focuses on delivering quality products; driving innovation in the biscuit category through its ‘power brands’; maintaining a rapid pace and agility on a corporate and brand level; and expanding internationally to deliver continued growth. The new strapline for the business reads: ‘Making every day more of a treat’. Chief executive officer Ben Clarke told Cash & Carry Management: “The past two years have seen progressive changes at Burton’s, as we have transformed ourselves into a successful and dynamic UK manufacturing business. “The rebrand, as part of this transformation, represents not only our past achievements, but also our future ambitions as we continue to go from strength to strength.” Based at St. Albans, the company has manufacturing sites in Blackpool, Edinburgh and Llantarnam and employs over 2,000 people. Tel: Burton’s Biscuit Company (01727) 899700.

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Smaller size HEINZ – The supplier has launched an out-of-home baby juice range in 150ml plastic bottles, comprising the bestselling varieties of its 750ml selection. With an rsp of 69p each, the two styles are: apple with spring water and apple & blackcurrant with spring water. The baby drinks market is worth £10.7m, with Heinz having a 55% value share. However, the total market is seeing a year-on-year decline of 5% due to fewer consumers. Nielsen data 3/9/11.

Tel: HJ Heinz 020-573 7757.

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DIAGEO IS THE WORLD’S LEADING PREMIUM DRINKS BUSINESS WITH AN OUTSTANDING COLLECTION OF BEVERAGE ALCOHOL BRANDS.

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Profile for Cash & Carry Management

Cash & Carry Management  

December 2011

Cash & Carry Management  

December 2011