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JULY 2012

Stock price-marked packs. Better value value for your customers and more profit profit for you. Jersey-based wholesaler joins Country Range Group Forteith Foodservice acquired by 3663 owner

• Sports & Energy PMPs are growing 6 x faster than standard packs1 • 76% of people think PMPs improve a Convenience Store’s price image2


Nielsen Total Impulse, Total Sports & Energy MAT to w/e 21.04.12 HIM Price Marked Pack Study 2011 LUCOZADE SPORT, LUCOZADE ENERGY and RIBENA are registered trade marks of the GlaxoSmithKline group of companies


Police have say against plain packs for tobacco SWA unveils mentoring and training programme

The business magazine for cash & carry/delivered wholesalers

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contents Attraction of transfers Way back, when the UK economy was stable and buying & marketing groups abounded, there was no shortage of C&C/wholesalers switching from one amalgam to another in a bid to improve their lot. Nowadays, with fewer choices to be made and operators more wary about jumping from the frying pan into the fire, movements have become less frequent. Yet that hasn’t deterred some from transferring. Quite often it’s because they have changed their trading emphasis and, what was suitable for them, say, 10 years ago, isn’t right now. So it makes sense to change. Others, hitherto unaffiliated, feel group membership is necessary. Landmark Wholesale, from being a largely retail-oriented group, now has foodservice as a major element of its composition, accounting for something like 40% of turnover, with the support of the likes of Country Range Group and the growing JJ Food Service. And more from this sector of the trade are joining them. The rival Today’s Group, now in its new Doncaster home, appears to be taking a more retail route, based on the trading functions of its four latest members. Of course, all this doesn’t mean to say that one is making a conscious decision to move in one direction and the other taking an opposite course. Neither would be averse to taking on a variety of C&C/wholesalers, assuming of course, they passed close inspection and that they didn’t clash with existing members. These days no-one can afford to turn down business.

Orders flood in from abroad ... see p.5

news delivered

9 10

in focus


fwd conference


swa conference


focus on vodka employment law

19 21–26 27

information technology


top 25 suppliers awards


price marking


dairy update


products & promotions



Mervyn Gilbert

Managing Editor

Kirsti Sharratt

Contributing Editor Media Sales Manager

John Wood Clare Phillips

Business Development Manager David Ford Publishing Director


country range conference

supplier strategy

Mervyn Gilbert editor

Scottish firm for Bidvest ... see p.6

Martin Lovell

4,555 July 2010–June 2011

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

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

Cash & Carry Management

• July 2012 • 3


Jersey member

IN BRIEF Drinks recall Early this month, Britvic was forced to recall all Robinsons Fruit Shoot and Fruit Shoot Hydro packs featuring a new design cap, which could have been fully or partially damaged. Neither packs of Fruit Shoot My-5 nor any other Robinsons products were affected.

Food parcels Fresh & chilled foods supplier Swithenbanks Foods, part of 3663, has committed to sending a consignment of fresh food twice a week to the GB women’s volleyball team before and during the Olympics. The food includes potatoes, pineapples, melons, bread and milk.

Willkommen! Today’s Group, which officially celebrates its 25th anniversary in London in October, will hold its next annual conference in Berlin on 12 March 2013 over four days.

Blakemore role AF Blakemore & Son has replaced Nisa as supplier to The People’s Supermarket, a two year-old co-operative retail store in Holborn, central London. The building is currently being refitted, in time for the start of the Olympic Games. Further branches are planned.


Outside the main depot in Swindon.

First of DBC freeholds goes As this issue of Cash & Carry Management went to press, one of the five freehold exDBC depots – in Exeter – had been sold and plans for disposing of the others were at an advanced stage, with Newmarket likely to be the first of these to complete. The largest site, at Petersfield, is currently occupied on lease by Vestey Group, which is servicing the MoD account. This company is understood to have expressed interest in buying the building. Offers are also being considered for the ex-DBC Cardiff and Newcastle sites. The 42,000 sq ft Exeter depot is now owned by N&B Foods, which already has delivered foodservice sites in Swindon (55,000 sq ft) and Reading (12,000 sq ft). The company has spent £3m on the Exeter project, including the purchase of 11 vehicles, bringing the number used at all three locations to 30. Nick Trumper, N&B’s head of IT and general business management, said: “We already have a good number of customers in the southwest. “However, it is timeconsuming delivering to that area. Having the Exeter site will make all the difference.

• Cash & Carry Management • July 2012

“Currently, our turnover is £25m, but operating from three sites should enable us to reach around £40m.” He added that his company was not only retaining the 10 former DBC staff at Exeter, but, by the end of the year, it will also have recruited another 40 at that depot, meaning a total company payroll of nearly 150. N&B, which was founded in 1986, is headed by managing director Nagajan Karavadra. The company specialises in serving the kebab, burger, chicken and pizza market. It also supplies fish & chip shops – which account for 20% of its business – with all their needs, including oil, fish, batter mixes, sausages, fish cakes, chips, condiments and soft drinks. An expanding sector for the company is Indian food shops. Order/collection, as well as delivery, is being offered at all three branches – similar to what is available for customers at the Enfield branch of J&J Foodservice. At present, Swindon is N&B’s central delivery hub, but the plan is for all three sites to conduct their own distribution. Tel: N&B Foods (0844) 880 2020.

A former member of Today’s Group, Valley Foods has joined Country Range Group. The Jersey-based wholesaler was formed in 1981 and, after several changes of ownership, was taken over by the present managing director, Andrew Clackett, and his wife Helen (financial director) five years ago. The company, whose product range covers meat, frozen, dry, ambient and chilled products, wine and non-foods, moved to its present 16,000 sq ft site in 2007. The wholesaler, with annual turnover of £4.5m, has a staff of 26 and uses eight vehicles, four of which are multi-temp. The minimum drop is £50, and orders can be placed through the company’s website. Before taking over Valley Foods, Clackett was the owner of another Jerseybased wholesaler, Farmpak Foods. He told Cash & Carry Management: “At that business – which we sold in 2004 – we were members of Country Range Group, so we know that CRG is the only group of which to be a member!” Tel: Valley Foods (01534) 866542. Country Range Group conference: p.10


Ambitious director Rubayeth Kamal.

Rapid expansion Restaurant Wholesale, the wholesaler dual-purpose which specialises in the catering sector, has expanded its year-old Barking, east London, depot by around 12,000 sq ft to 40,000 sq ft and increased turnover at its Manchester site by 50% in 18 months. Director of the Landmark Wholesale member Rubayeth Kamal said: “The extra space at Barking has given us more C&C storage, provided us with a new frozen fish section with cutting facilities and enhanced our packaging area. “We have taken on six new staff and will also be increasing our telesales team. “We are hoping to hit £8m turnover at Barking by the end of the year, with our

delivered side rapidly catching up with C&C. We have three vehicles calling on customers within the M25 belt.” Kamal said that the longer-established 40,000 sq ft Manchester depot had increased sales to £18m compared with £12m around the start of last year. Delivered accounts for 60% of sales and C&C the remainder. He added: “We have our eyes on two new locations which could open by the end of the year, but I can’t tell you where they are.” Restaurant Wholesale is owned by the $200m Seamark Group, a global supplier of frozen foods and exporter of shrimps. Tel: Restaurant Wholesale 0161-202 8205.


Orders are flying! Stratford-upon-Avon based health & beauty manufacturer DCS Europe, a member of Landmark Wholesale, has taken export orders for more than one million bottles of its Enliven brand, worth over £600,000. The in-house range of 70 products, made in the UK, covers skincare, shampoo,

conditioner, hand wash, hair gel and deodorant. Chief executive Denys Shortt said: “Our factory is seriously ramping up production and we are working extra shifts to produce the stock. We already export to 70 countries.” Tel: DCS Europe (01789) 208001.

*Nielsen MarketTrack MarketTrack YTD Apr ’12 (RYO (RYO converted at 0.4g/stick).

Tobacco T obacco smugglers stealing s yourCash business? If so, contact: & Carry Management Customs Hotline 0800 59 5000

• July 2012 • 5


Bidvest Scottish purchase Scottish wholesaler Forteith Foodservice has been acquired by Bidvest through its 3663 subsidiary. The news was announced by Alex Fisher, the foodservice specialist’s managing director, wholesale, at last month’s Scottish Wholesale Association conference in Crieff. The two companies have had a trading link for some time, with Oban-based Forteith undertaking some distribution for 3663 north of the border. The Scottish concern was formed in 1955 by the late Jack Forteith, whose grandson John is the present managing director. It operates from a 22,000 sq ft depot and has a fleet of 12 multi-temp vehicles, delivering to 1,200 caterers and 300 retailers.

Alex Fisher

The 35,000 lines available cover frozen, chilled and ambient foods. There is also a butchery facility. A Bidvest spokesperson said: “There are no plans to change the staffing levels, liveries or brands of Forteith at this time. Its refrigeration services operation is excluded from the acquisition.” In 2008 Forteith became an associate member of

Landmark Wholesale, supporting that group’s Hot House independent retailer initiative. Asked whether the connection could come to an end, John Forteith answered: “Not necessarily. We also do not disclose our turnover.” The acquisition by Bidvest comes shortly after the Johannesburg-based concern announced the purchase of a 60% stake in Deli Meals, a foodservice wholesaler and bakery products manufacturer in Santiago (Cash & Carry Management: December 2011). It is also planning to spread its foodservice interests to the Baltic States and Egypt. Tel: Bidvest UK 020-7493 4733. Tel: Forteith Foodservice (01631) 569100.

‘Record deal’

A little lighter after their exertions!

Challenge completed Confex marked its 40th anniversary by sending an assortment of suppliers, members and staff to compete in the Three Lakes Challenge in the Lake District. The money raised is part of a £10,000-plus target in aid of four charities: Cancer Research, Help for Heroes,


Sobell House Hospice and Sweet Charity. The brave souls had to paddle the length of Windermere, Coniston and Ullswater – around 25 miles – in under 12 hours, with the 40 participants divided into five teams of eight. Tel: Confex Group (01608) 649000.

• Cash & Carry Management • July 2012

Bestway and Batleys are featuring more than 1,000 products in their Big Summer promotion. The wholesale group’s trading director Kaiser Yousaf claims that the items have been “slashed to record low prices”. With the Olympics in mind, they include soft drinks, water, ice cream, wines, beers, snacks and household essentials. Customers will also be eligible for a 4% cash back offer along with the Big Summer deals, which run until September. Tel: Bestway Wholesale 020-8453 1234.

Police anti plain packs A poll conducted among police officers shows overwhelmingly they believe that the introduction of plain cigarette packs will fuel organised crime and smuggling. The survey, among 500 policemen at constabularies throughout the UK, was conducted by Populus for Philip Morris International. It found that 86% of police officers feared that the government move would play into the hands of lawbreakers and 60% said it would encourage teenagers to turn to the black market for supplies. Former Scotland Yard detective chief inspector Will O’Reilly said: “There are 269 cigarette brand variants available in the UK, providing a high level of complexity for criminals attempting to counterfeit cigarettes. “Even so, the black market continues to thrive, so it stands to reason that if that is taken away, the result will be an open playing field for criminals to carry out even further exploitation.” Some 93% of those questioned also believed that profits from smuggling illicit tobacco products help fund other criminal activity. Tel: Populus 020-7253 9900.

Costco rise June sales of Costco’s international division (including the 22 UK branches) rose by 2%, bringing the increase to 7% for the first 44 weeks. Total global income for June was $9.18bn ($8.69bn) and for the year so far $80.46bn ($73.44bn). Tel: Costco UK (01923) 213113.


‘Masses’ unclaimed ‘Hundreds of thousands’ of UK businesses – including cash & carry/wholesalers – could be entitled to a hefty tax rebate from the Inland Revenue. According to capital allowances tax specialist, CA Tax Solutions, any company that owns a commercial premises has a ‘high probability’ of receiving a capital allowances tax rebate, which could range from thousands of pounds to tens of thousands of pounds. It cites research from one of the major accountancy firms, Deloitte, which says that in nine cases out of 10, capital allowances reports will uncover a tax rebate for the owner of a commercial property. CA Tax Solutions managing director Mark Tighe said that, to date, the average rebate his company has generated for smaller commercial property owners is £25,000, the biggest tax rebate being more than £10m. He added: “We estimate

there to be between £65bn and £70bn of net tax rebate that is lying unclaimed in the UK’s commercial property stock. “Smaller businesses that own commercial property are most likely to be due a rebate as their accountants will often not understand the intricacies of capital allowances and how to uncover them.” Tel: CA Tax Solutions (0300) 303 1903.



P&H/Mace deal Through wholesaler Palmer & Harvey, the Mace symbol chain has devised a series of promotions with Britvic, Walkers and Cadbury. Each ‘On-the-Go’ deal – which is changeable every three weeks – will feature a chocolate countline, packet of crisps and a 500ml or 600ml bottle of soft drink. The suggested rsp for the three products is £2. Tel: Palmer & Harvey (01273) 222100.

* *


Money for cancer

Bestway Wholesale entertained more than 800 people from across the grocery and foodservice industries at its annual charity race day held last month at Royal Ascot. This year’s beneficiary was the Royal Marsden Cancer Charity. Pictured at the event, l to r, are: professor Martin Gore, medical director of the charity; Channel 4 racing pundit John Francome; and Bestway Group chairman Sir Anwar Pervez OBE H Pk.



Tobacco T obacco smugglers stealing stealin your business? If so, contact: Customs Hotline 0800 59 5000

Tobacco T obacco smugglers stealing s your business? If so, contact: Cash & Carry Management Customs Hotline 0800 59 5000

• July 2012 • 7


25% made a loss last year One in every four cash & carry operators is making a loss as economic conditions continue to take their toll. That’s one of the conclusions of the latest study of the C&C trade conducted by Plimsoll Publishing. It adds that many of the 148 loss-making companies have simply had an isolated bad year. Many, however, are trying to hide from the situation. Author of the report, David Pattison says: “More and more companies are making a loss for the first time in their history. “Many can rightly claim to be victims of difficult trading conditions. A quick refocus on profitability would ensure this is an isolated occurrence. Some 85 companies are making a loss for the second – even third – year running and are simply selling at prices their business cannot sustain. “They have put off making the painful decision that more prudent companies made a while ago. No-one wants to trim costs, lay off staff, cancel dividend payments and the like, but

carrying on regardless is unviable. They can no longer bury their heads in the sand. “I congratulate management teams that have made the often difficult and unpopular decisions. “They have cut their cloth according to the market conditions and are more stable for it. Those failing to do so are running out of time and cash. Without a big increase

in demand they cannot support their pricing strategy much longer. “Watch out for a number of failures among the companies we have identified.” The Plimsoll report (available to Cash & Carry Management readers at a £50 discount) assesses 542 C&C concerns. Tel: Plimsoll Publishing (01642) 626400.

Landmark on the up

Delegates at the recent Landmark Wholesale conference in Istanbul heard from managing director Martin Williams (pictured) that the group achieved record turnover last year of £2.5bn.

Own-brand sales, which showed a rise of 27%, were the highest in 20 years. Around 240 attendees at the ‘Inspiring Customer Excellence’ event also heard speeches from Simon Weston OBE, Baroness Tanni Grey-Thompson, the Rt Hon Norman Lamont, James Walton (the IGD’s chief economist), James Lowman (chief executive of the Association of Convenience Stores) and Tom Fender (managing director of him! research and consulting firm). Tel: Landmark Wholesale (01908) 255300.

Finance director

SPAR wholesaler and Landmark Wholesale C&C operator AF Blakemore & Son has promoted Scott Munro-Morris (above) to group finance director. He was appointed chief financial officer in November after serving as finance director and company secretary for fellow SPAR wholesaler Capper & Co prior to Blakemore’s acquisition of that company in March last year. Munro-Morris now holds responsibility for all finance and IT matters across the £1bn-plus Blakemore group and he sits on the company’s main board. Tel: AF Blakemore & Son (01902) 366066.

Utilising Nisa retail expertise The £700m Sugro UK group is to develop its retail side with the aid of Nisa. The arrangement, which does not affect Sugro’s wholesale membership, operating 61 depots, will centre on its fledgling Nearbuy stores group, which has been slow to grow. At present there are just 18 outlets – nine in the northwest and the same number in the south-west. Sugro managing director


Philip Jenkins said: “I don’t want to speculate on how many more Sweetbreak members we can attract with the aid of Nisa. What we are

• Cash & Carry Management • July 2012

targeting is cities where we can grow in clusters. “Nisa vehicles will handle temperature-controlled distribution to these stores, while our wholesalers will be responsible for ambient. We are looking at imposing minimum drops. “Retailers will carry Nisa promotions, but in the name of Nearbuy, and we are considering incorporating newspapers. “We will take advantage

of Nisa’s chilled and frozen ranges, grocery and beers, wines & spirits.” Jenkins told Cash & Carry Management that the partnership would not affect Sugro’s Sweetbreak retail group, which has around 1,500 members. Alluding to the paucity of Nearbuy growth, he said: “We have learnt by our mistakes.” Tel: Sugro (01270) 628728. Tel: Nisa (01724) 282028.


Symbol collaboration Developing the partnership between AF Blakemore & Son and SPAR was the main theme of the delivered wholesaler’s annual symbol conference. Opening the event, group md Peter Blakemore (below) spoke of the success of the Capper/ Blakemore integration and how the two companies had become a strong business. He said: “By the end of 2012 there will be complete integration. By adapting a ‘best of the best’ approach, we will achieve not just a bigger Blakemore but a better Blakemore.”

Festival Palmer & Harvey has just completed a three-week cider festival, at which retail customers were able to take advantage of promotional offers. They included savings of up to £2.50 per outer on key lines. In addition, Mace symbol operators were provided with gondola end planograms. The event also saw the launch of Stella Cidre Pear, which is being promotionally priced at £14.19 per outer, saving retailers £1.60. Richard Hayhoe, marketing director, said: “Cider sales soar in summer, even when the weather’s poor. Customers were able to achieve profit on return of more than 28% on key cider lines.” Tel: Palmer & Harvey (01273) 222100.

Jerry Marwood (below), md of Blakemore Trade Partners, discussed how he had approached the business since joining six months ago. “Longer-term business goals are built around delivering what the customer wants and how we plan to refine them going forward, using a partnership approach,” he said. Retail md Geoff Hallam highlighted the change in focus for Blakemore Design & Shopfitting – from being a sales arm of the group to offering a complete store refit package with development and support. He offered all retailers the

chance to have an energy survey (valued at £400) undertaken in their stores which would be refunded against any future work done by the shopfitting division. Trading director Mike Boardman outlined activity to drive sales on produce. He also highlighted an increased focus on SPAR own label and developments in non-foods. Md of SPAR UK Debbie Robinson outlined her vision for the future, including a collaborative approach for all the group’s UK wholesalers to drive sales and profitability through a 10-point plan. Tel: AF Blakemore & Son (01902) 366066.

Varied background Rory Brick has been named as head of symbol at Palmer & Harvey. Brick, who joins the wholesaler from a construction and consultancy firm, has worked in the retail, marketing, supply chain, category management, equipment development and store design sectors.

One of his former jobs was as Safeway’s operations manager for compact stores. P&H marketing director Richard Hayhoe said: “Rory has fantastic retail experience and he is a real asset to our team. “His addition to the team gives us an ideal platform to drive our offer and bring an even greater focus to our symbol business. He will be focusing on growing our existing customers’ business and targeting new areas for development.” Tel: Palmer & Harvey (01273) 222100.

Brick: laying the foundations for growth.

Six for Brakes... Brakes collected six prizes at the British Frozen Food Federation awards event – two golds, one silver and three bronzes. Products from across the wholesaler’s range were recognised, with La Boulangerie, Creative Foods and Brakes’ own products all winning awards. The wholesaler’s marketing director James Armitage said: “Winning so many awards is a credit to the hard work and commitment of everyone involved in the innovation, development and sourcing of award-winning products for our customers.” Full list of Brakes’ winning dishes: New Main Course/Meal Centre Product: Pork & Red Onion Burger and Creative Foods Lamb Chettinad (joint gold). New Meat Free/Vegetarian Product: Somerset Brie & Asparagus Cheesecake (bronze). New Dessert: La Boulangerie Fruity Granola (silver) and Raspberry Sabayon (bronze). New Bakery/Pastries Product: La Boulangerie Fruit Breads for Toasting (bronze). Tel: Brakes Group (0845) 606 9090.

• • •

...and three for 3663 3663 collected two gold medals and one silver medal at the BFFF awards. The golds were for its Chocolate Caramel Salted Torte and Stuffed Mushroom Lattice and the silver for Chicken Makhani. Tel: 3663 (0370) 3663 000.

Cash & Carry Management

• July 2012 • 9

country range conference

Group sales up 10% Over 300 delegates attending Country Range Group’s annual exhibition and conference at Stoneleigh Park near Coventry listened to a typically bullish presentation from managing director Colin Birchall. He told them that turnover was growing by around 10% year on year. And without disclosing the actual figure, it is understood to be around £220m, completing a regular period of growth since 2000. CRG – now linked with Landmark Wholesale – has 15 members operating 23 depots, the latest being Valley Foods in Jersey (see News p.4), following on from last year’s new recruit, Henderson Foodservice. Delegates also heard Birchall run through a list of members who have either expanded their business over the past year or reached notable milestones. They included: Birchall Foodservice, which towards the end of 2011 acquired Willow Fresh Foods in Wrexham – company turnover up 23%. Savona Provisions, of Kidlington, Oxon – sales ahead by 12%. Bury St Edmunds-based Thomas Ridley – up 15%. Mike Watson presents the awards. Trevors Foodservice, of Blackpool – 50th anniversary. Ilfracombe Foodservice – 40th anniversary. “We are carrying the flame for foodservice,” said Birchall. “Our vision is to achieve sector leadership by supporting independent caterers, enabling them to provide excellent service and allowing them to compete by adding value. Basically, what caterers want are quality, price and service.” He added that the CRG promotional programme comprises national deals, a local support plan and managers’ specials. And in terms of communicating with members, a major medium is the group’s Stir it up magazine.

• • • • •

Taking a break on the CRG stand.


• Cash & Carry Management • July 2012

‘We are carrying the flame for foodservice’.

Supplier awards Awards were presented to the following suppliers of the year by group trading director Mike Watson: Frozen Foods: Kara Foodservice, of Manchester. Own Label: Pritchitts, part of Lakeland Dairies, in Killeshandra, Co Cavan, Ireland. Branded: Britvic Soft Drinks, of Hemel Hempstead, Herts. Ross Brown, of Premier Foods, received the national manager of the year award, and the CRG telesales focus award went to Aghadowey Food Services, of Coleraine, N Ireland.

Exhibitors Some 75 companies took stands at the CRG exhibition, of which 29 were featuring Christmas products. The best stand was adjudged to be that of Kerry Foodservice, of Dublin, and the runner-up frozen baked goods & desserts supplier Erlenbacher (Nestlé Professional). Supplier presentations were made by John Moore, of Tilda, who highlighted Tilda Kids, a new product for Country Range Group members, and Emma Gooch, on behalf of Kellogg’s, which has launched a new kids cereal, Mini Max, into foodservice and announced a new initiative with CRG to support breakfast clubs in local communities.

Coral Rose, group marketing & projects manager, introduces guest speaker Sally Gunnell OBE.

vestment in g in t e k r a m ampled! s s r e ÂŁ2.5 million m u s n million co in 2012 - 1 ing soft w o r g t s e t s The fa the UK in y r o g e t a drinks c is in 31% t a h t d n a r Ab h year value growt on year*

*Source: AC Nielsen Total Coverage Value Sales MAT to week ending 26.11.11. All trademarks are recognised as the property of their respective owners.

in focus

Another four for Landmark Mervyn Gilbert hears how the group has bounced back after a series of setbacks.

Yeh, we’re doin’ all right! Pictured celebrating the addition of four new Landmark Wholesale members are (l to r): finance director Andrew Thewlis, trading director John Searle, managing director Martin Williams, vice chairman Sam Wilcox and business development director Chris Doyle.

As if Landmark Wholesale didn’t have enough to celebrate, what with its 40th anniversary! Now, with another four new members, together adding £60m of buying power to the Milton Keynes-based group, there’s plenty more to smile about for managing director Martin Williams and his team. Three have officially joined: Glasgow-based delivered foodservice wholesaler Lomond Fine Foods and Lynton Exports, of Stoke-on-Trent (both previously with Sterling Supergroup, which recently severed ties with Landmark) and GAP Convenience Distribution in Preston, part of SPAR wholesaler James Hall. The fourth new member – early next year – is First Choice Wholesale Foods, of Burton upon Trent, which is switching from Today’s Group. Yes, it lost Henderson Food Service early this year, but that concern aligned with Country Range Group, which is itself a member of Landmark, joining last year along with JJ Food Service. It’s a far cry from the two anni horribilis – 2004, when leading member Bestway left, taking with it more than £1bn of the group’s £2.6bn turnover, and 2010, when Bestway bought Bellevue and CJ Lang’s wholesale division. But Williams and his Milton Keynes cohorts are bullish about what they have achieved. Turnover is now back to where it was when Bestway defected, representing 18.6% growth. Of that £2.5bn, foodservice now accounts for around £1bn – “a real growth area”, according to Williams. Delivered accounts for 55% of the total and cash & carry 45%. Speaking at a London reception to announce the good news, Williams said: “The split between C&C and delivered has been the real change in recent years.” Landmark was founded in 1972 after a meeting hosted by former Nottingham C&C operator Peter Turpin and five other


• Cash & Carry Management • July 2012

concerns who were to become founding members. After a period in Tunbridge Wells, Kent, the group merged with Consort, the C&C offshoot of SPAR, and moved into the symbol group’s Harrow headquarters. That was in 1985. Some 13 years later, Landmark and SPAR demerged, the C&C combine migrating to Milton Keynes. Said Williams: “We were the first to launch an own brand (Lifestyle) and own-label beer (Scandia). We were also one of the first companies to be associated with Air Miles. “Our Lifestyle Express symbol chain has been a huge success, with over 2,000 retail members. “We are now associated with four influential organisations – the Federation of Wholesale Distributors, Institute of Grocery Distribution, Scottish Wholesale Association and the Association of Convenience Stores. “The biggest challenge we have had to face is the strength of the multiples. But ours is still a dynamic industry. “We at Landmark Wholesale are customer focused and we encourage relationships with suppliers. That’s why we are as good as we are.” His words about suppliers were echoed by trading director John Searle, who added: “It’s our structure of terms and the best returns why our members are with us.” He disclosed that while retailers represent 45.57% of the group’s customers, they account for 61.58% of sales. Caterers, 22% numerically, represent 9.4% of turnover, and foodservice fills the remaining boxes. “Our main considerations,” said Searle, “are overriders, central pricing, promotions and own brand (which last year recorded 27% growth).” Landmark’s 40th anniversary celebrations will include a golf day in September and a gala dinner in February next year.

fwd conference

Connections are vital! Almost 200 attended the Federation’s annual event entitled ‘Teamwork in Distribution’. When it comes to food trade conferences, there are only so many topics that can be discussed before they become the old dressed up as the new. So it is with C&C/wholesaler and supplier relationships – a liaison that has been identified countless times in the past as being vital if both sides are to win a larger share of the independent trader’s purse. It came as no surprise, therefore, to hear several speakers at the conference choose this as one of the main themes of their presentation. Do both sides do enough to make the concept work? While Bill Laird, managing director, Today’s Group, and Craig Clarkson, trading director, wholesale & convenience at Heineken UK, who were on the platform together at one stage, gave every indication that partnerships can, indeed, produce dividends, the other side of the coin was shown by Nestlé UK chairman and chief executive officer Paul Grimwood. He told his audience that of all last year’s visits by the trade to the company’s York headquarters ”only 5% were Farrant: more recruits by C&C/wholesalers”. Another area of duplication among speakers’ papers – understandably so because of its significance – was the value of the UK wholesale sector, worth around £26.6bn and forecast to grow to £31bn by 2016, with C&C outstripping delivered wholesale. However, Guy Farrant, managing director of Booker’s cash & carry business, who was announced as the new chairman-elect of the FWD, said the figures could be vastly inflated if other sectors of the wholesale trade were taken into account. Opening the conference, the Federation’s chief executive James Bielby spoke of the growth of orders being placed over the internet – especially by Booker customers – and the expansion of own-label. He forecast that, “in 10 years’ time, the symbols will be more encompassing, there will be more consolidation among C&C/wholesalers and around 50% of orders will be placed online”. He added: “The FWD will this year be undertaking a thorough audit of our sector, taking in the views of our members and their cusBielby: Internet expansion tomers.”

Brandon Lewis, MP for Great Yarmouth, commented: “How fascinating it was to see how the C&C/wholesale trade is serviced when I made a visit to my local Palmer & Harvey depot.” He is no stranger to the trade, having from an early age accompanied his father when he bought stock from cash & carries. “Yours is one of the most important industries in the UK,” he told delegates. “For many, it’s what keeps the wheels rolling.” Roger Suddaby, head of sales at SalesOut, presented a wealth of data which showed that the foodservice industry is “growing extremely well” – by 8.5% annually according to his company’s records. “And there is a £300m-plus opportunity for cigarettes in the convenience sector,” he said, based on the tobacco display ban being imposed initially in the retail multiple channel. FWD criminal intelligence data analyst Isabel Koppel said: “About 3% of C&C customers have been the victims of crime over the past six months and, for many, that will make them think twice before making another visit. “We also found there has been a 145% increase in tobacco theft since May, but a significant lessening of theft of vehicles on C&C premises.” Palmer & Harvey chief executive Chris Etherington said: “Wholesalers are now definitely engaging more with their customers and there is greater flexibility in delivery.” Etherington: more flexible He called for suppliers to invest more in chilled foods and to devise more exclusive promotions for c-stores and symbol retailers. Amal Pramanik, general manager of Imperial Tobacco UK, said the value of tobacco through C&C/wholesale and independent retail was £6.5bn. He also spent some time explaining that the amount of excise duty and VAT within the price of cigarettes can be as high as 88%. While his company had been ‘highly commended’ in last year’s Cash & Carry Management AWARDS competition, he said it wanted to do even better in 2012. Guy Farrant reviewed Booker’s progress with a set of impressive figures. He outlined plans to expand the butchery department, where 100 apprentices have been signed up, and in fresh produce, where 35 greengrocers have been recruited and trained. And five wine specialists have been taken on to deal with the pubs & restaurants sector.

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swa conference

Aiming for world-class status By investing in people and other key elements of business, the Scottish Wholesale Association and its members are determined to remain ‘Ahead of the Game’ – the theme of the SWA’s recent conference at Crieff Hydro. The Scottish Wholesale Association has launched a Mentoring & Training Trust to improve skills and nurture emerging talent within the wholesale industry. Unveiling the initiative at the annual conference last month, president George Benson said: “Investing in people builds trust and helps achieve better results, and we need the right people with the right attitude and the right skills to create a truly world-class industry.” The Association is working with 121 HR Solutions, which currently delivers its training programme, to put together a small number of professional qualification courses which will be offered to member wholesalers in the coming months. Anyone undertaking one of these courses will be assigned a mentor, and mentoring will also be offered as stand-alone support for people working in the key areas of buying & replenishment, sales development and management. Those with one year’s mentoring under their belt will be expected to work towards a professional qualification via the Association’s training programme. The mentoring programme is designed to allow individuals to realise their capabilities and potential. It is being structured around the needs of the business so will happen within the workplace. Candidates will be selected through an application process, which must be endorsed by their manager or the business owner. The individuals taken on will be carefully matched to mentors based upon the type of development they need. Technical expertise will be provided by mentors recruited from within the wholesale industry and any soft

SWA president George Benson: “Investing in people builds trust and helps achieve better results.”


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‘Resilient and proactive’ Wholesalers must work hard to help retailers deal with new legislation, insisted SWA president George Benson. Referring specifically to minimum pricing on alcohol which could be in place in Scotland by next April, he said: “It is difficult for the SWA to come out in favour or against the change, but we have to recognise it as a new law, and the real task for the Association is to help its members and their customers deal positively with the implications.” The SNP government, he continued, was “pushing hard” with its agenda for a healthy Scotland. “They are moving fast – minimum pricing on alcohol, plain packaging on tobacco, and a proposed tax on ‘unhealthy’ food, such as sugary drinks, chocolate and crisps and snacks.” Independent retailers and wholesalers have rallied to back the SWA’s trade-only ‘Plain Nonsense’ campaign against the UK Government’s proposals to introduce standardised packaging for cigarettes and tobacco products, with 3,000 supporting a ‘no change’ option. The Association encouraged traders to register their opposition to plain packaging via a postcard, app and online. The UK Department of Health has extended the consultation period by one month – the new closing date is 10 August.

skill requirements will be met through 121 HR Solutions. Meetings between the mentor and protégé will be held between six and 12 times a year to discuss goals and review progress. Telephone support will also be available to allow for more pressing issues to be dealt with in a timely fashion. “This is a massive commitment from the Association in terms of both time and finance, but the return will be evident to our members as they see their emerging talent develop and grow,” said Benson. A new category in the Scottish Wholesale Achievers awards, ‘The Emerging Talent of Wholesale’, will be introduced for 2014 and will be open only to those participants of the Mentoring & Training Trust who have successfully completed a programme of mentoring or a training course. “The winner of this award will be someone who demonstrates sound understanding and awareness of the wholesale sector and has a commitment to continuously improve the industry through their performance,” explained Benson. Jason Wouhra, director and company secretary of East End Foods, told delegates how mentoring helped him fulfil his responsibilities within the company. Established in the late ’60s by five Wouhra brothers, East End Foods has grown to be a £180m turnover business with cash & carry/wholesale depots in Smethwick, Aston and central Birmingham, as well as a production facility in West Bromwich for lentils, rice and spices, which are distributed within the UK and to 22 countries worldwide.

swa conference now comprises 61.6% retail, 9.4% caterThe company, which remains wholly ing and 29% foodservice. Sales in the past family owned, has 320 employees, nine of year hit £2.5bn – an 18.6% increase – and whom are directors. this year the group is expecting to hit “Some of the best businesses in the £2.6bn. world are family businesses,” said Jason In order to achieve this, Landmark has Wouhra. “At East End Foods, we are able set improvement goals of execution, custo adapt to market conditions in hours tomer insight and return on investment, rather than months. We look 15-20 years and has identified core strategies and in the future rather than three to five years. tactics, including benchmarking, central Our long-term view means it is essential to distribution, new product development create a route map to success.” and retail audits. For its customers, it is Wouhra, who currently runs the Aston aiming to offer services such as best and Birmingham branches, joined the Jason Wouhra of East End Foods: “Our business has huge potential.” practice advice, 100% availability and business full-time 14 years ago after gradaggressive promotions. “Everything we uating with a law degree. “At 21 years old do has to be good for our customers,” he I was left to run the Birmingham depot concluded. alone. What I lacked was long-term strate“I think the route to success is really gic direction. In 2003, I was introduced to listening and responding to what cusRobin Alexander, former managing directomers want,” agreed Debbie Robinson, tor operations at S&N Europe, and he managing director of Spar UK. became my mentor. Spar UK has sales of £2.7bn from 2,435 “I really enjoyed the process. It gave stores and around 14 million customer me a sounding board to check that my transactions. “We are operating in a decisions were correct and I devised a growth market. Convenience stores and personal strategy for development. Over symbols are outgrowing the grocery the past nine years I have gained clarity sector. Staying ahead of the game is about and confidence. I have achieved a Masters constant reinvention, taking brave steps in Commercial Law and I became the Landmark’s Martin Williams: “We into the future,” she declared. youngest Chartered Director in the UK – in have to develop trust between us.” “Our challenge is to increase basket fact in the world. spend. Suppliers need to come to us with “I introduced the concept of a family ideas that allow us to compete with the constitution. Our business has huge multiples in a different way. Our retailers potential and we have to ensure its continshould not have to compete directly with ued growth, but to do this we must have Tesco.” rules. With an ageing first generation, we Spar’s investment in private label – it updated the board structure using exterhas launched or relaunched over 500 lines nal advisors for the interview process. in the past 12 months – is driving higher “Now, the new board uses the first genfootfall, bigger baskets and consumer eration members in an advisory capacity. loyalty. “For example, S Budget is a real It is for the second generation to build on fighter brand that gives a decent margin the achievements of the first but to make for the retailer and great value for the the changes they want. We will bring the consumer.” third generation into the business and Robinson highlighted some of the innomentoring will play an important role in Spar UK’s Debbie Robinson: “We will lead from the front.” vative steps Spar UK is taking, including its this. We are securing the future of the ‘Fresh For Less’ initiative to offer five fresh business for generations to come.” foods for £1 each. It is also offering meal deals for breakfast, Martin Williams, managing director of Landmark lunch and dinner and remerchandising stores accordingly. Wholesale, endorsed the SWA’s mentoring and training pro“This may break a few rules regarding category managegramme and urged fellow wholesalers to raise their game. ment. It will look different and feel different.” “Suppliers over-invest in training. Most are unbelievably Spar UK also intends to maximise the sales opportunity well prepared for meetings. We have to make sure our around special events, such as Halloween – “it still has some wholesale people are better at what they do so that meetings profit in it”. with suppliers are more equal and we get more out of them.” Robinson added: “Our biggest week ever was the week He continued: “The competition is getting better and leading up to the Jubilee. We can plan for the events we better. Unless we improve at what we do, we will get know are going to happen. For example, we will be doing squeezed out of it. As wholesalers, we have to collaborate early-bird Christmas deals. more. The key to that is trust. We have to develop trust “By playing to our strengths, such as fleet of foot, we can between us and work better together.” do things that the multiples cannot do. We will lead from the Williams confirmed that Landmark is adapting to the front.” changing market place. The total sales mix of its members

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swa conference

Game plans for getting ahead Several speakers at the Scottish Wholesale Association’s annual conference explained how they are using the latest technology to gain a competitive edge. In a presentation entitled ‘Are Price, Quality, Choice and Service Enough?’, 3663’s group managing director Alex Fisher said that the £1.1bn turnover UK business intends to tap into parent company Bidvest’s impressive growth in Australasia which is attributed to the ecommerce trading platform, FindFoodFast (and FindHospitalityFast) are virtual Bidvest branches available 24/7 online that give customers more control over their ordering. There is a multitude of features, including the complete product range available at the customer’s Bidvest warehouse, detailed product information, customer-specific pricing, order template creation and account information. Fisher pointed out that around half of Bidvest’s business in Australia and New Zealand now trades online and that orders placed online are, on average, 20% higher than offline orders. The cost of processing an order has been reduced by 62.5%, while the number of credits is down by 37%. Admin costs are also lower because customers can download invoices and run financial reports online. Meanwhile, customer uptake of new products has improved, as has the ability to accurately forecast stock requirements. “But more importantly it has helped to put them ahead of the competition,” said Fisher. “We are so impressed by the growth in Australasia,” he continued. “What’s next? iPhone and iPad apps are being rolled out, there is full EDI integration for customers where required, and Bidvest now owns the source code for FindFoodFast and has launched a software development company called Blue Pepper with the aim of rolling it out worldwide. We are going to embrace it.” Referring to the theme of a book by W Chan Kim and Renee Mauborgne, Fisher said that FindFoodFast was a Blue Ocean Strategy, in other words the process of differentiating a business. Quoting from the book, he said: “In today’s overcrowded industries, competing head-on results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. “Blue Ocean Strategy challenges companies to break out of the red ocean of bloody competition by creating uncontested market space that makes the competition irrelevant.” Concluding, he said: “Are price, qual3663’s Alex Fisher: “We are going ity, choice and servto embrace FindFoodFast.” ice enough to keep


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ahead of the game? Probably not. In today’s world, they also need to be combined with Blue Ocean thinking.” United Wholesale (Scotland), which has increased its turnover from £35m in 2002 to £186m in 2011, currently services 240 Day-Today stores that attract 725,000 consumer shopping missions every week, stated managing director Asim Sarwar. “We are totally committed to supporting these retailers,” he said. “They get a visit from one of our business development managers at least once every three weeks and we help them with legislation and audits. We hold regular group training sessions and we have interactive websites – for the trade and for Day-Today consumers. We also support local charity.” United Wholesale (Scotland) is aiming for all its Day-Today members to be using EPOS within 18 months. It is also investing in key-fob scanners, picking productivity and web ordering technology. UWS’s Asim Sarwar: “We will drive Its technological consumers into Day-Today stores.” innovation, however, is utilising the 180,000-strong database of its subsidiary company Indeed, United Wholesale Scotland describes it as a ‘world’s first’. “The UK is the biggest in Europe for online shopping,” Sarwar pointed out. “It has seen a 46% increase in three years and is now a £44bn market. Furthermore, it is set to account for 12% of all sales by 2013.” With, a daily ebulletin is sent out highlighting a deal from a local vendor with a minimum discount of 60%. The subscribers have 24 hours to buy the deal and between three and six months to redeem the coupon. The offers focus on Edinburgh and Glasgow. Following a successful trial with Cadbury at Easter, which attracted 8,000 hits, United Wholesale (Scotland) will be adding Day-Today grocery deals to the website from 25 July. These will be changed every three weeks, when a bespoke newsletter will also be sent out. “The subscriber can print and redeem the coupons any time during the three-week period, and the system allows us to put a limit on the number of coupons per deal and per customer. Subscribers can share the deal with friends by email, Facebook or Twitter,” said Sarwar, adding: “We will drive these consumers into our Day-Today stores.” United Wholesale (Scotland) is also investing in other areas of its business, such as opening a new bonded

swa conference warehouse at Queenslie and spending £2 million on the expansion of its Maxwell Road branch which will allow the addition of beers, wines and spirits to its range. The extension will be finished by April 2013 and is expected to result in a £35 million increase in turnover. In a joint presentation, Marcus Freer, sales director of SHS Sales & Marketing, and Karen Salters, joint managing director of Beverage Brands (both SHS Group), spoke about a new piece of technology they are using to “stay ahead of the game”. But first they explained that SHS is a private Karen Salters of Beverage Brands: SHS’s Marcus Freer: “We have to “We have one team, one goal.” be prepared for change.” family business founded by Salters’ father. Turnover is £420m. “The board and employees masses and to maximise its investment. Its latest marketing are made up of complementary personalities but we have tool is Augmented Reality, which involves the consumer one team, one goal. We insist on empowerment, trust and downloading an app – Blippar in this case – and holding a clear direction,” said Salters. smartphone over artwork that then comes to life. “For us, the consumer is hero, and our marketing team is “We are going to run a responsibility campaign for WKD one of the best at understanding the consumer. Our conwith this technology,” Salters explained. sumers will rarely just watch TV – they’ll be playing on their Freer commented: “We are still a small family business in laptop, checking out their phone, downloading some music a big world but we are trying to lead the way, such as by or maybe even interacting live with the programme they’re using Augmented Reality. We are all facing a balancing act in watching.” running a business. We have to be prepared for change and The company incorporates all these differing forms of recognise it can be a key path to growth.” media in its marketing to ensure it gets its message to the

CAPITALISING ON RESPECTIVE STRENGTHS Charles Wilson (below), chief executive of Booker, told delegates that, following the acquisition of Makro, Booker is aiming to be the best wholesaler to retailers, caterers and small and medium-sized enterprises by capitalising on the strengths of the respective businesses. Booker’s sales to retailers are worth £2.6bn; Makro’s, £200m. Booker’s sales to caterers are valued at £1.2bn; Makro’s, £200m. However, Booker’s sales to SMEs are £100m while Makro’s are £400m. “We are excited about SMEs and serving them is something we are passionate about,” Wilson commented. “The economy is going to be tough for at least five years. It won’t help us but we can help ourselves. SMEs will do well – for instance, through preferential tax and property rates. “For Booker, cash & carry is important but we do a lot in delivery (27%) and on the internet (16%). By having Makro we can do a better job in all of these.” Wilson admitted that Booker’s fresh food offer “is not very good” but Makro’s is, partly because of its sustainable


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fish sources. On the other hand, Booker has an excellent meat business. Wine is another strength for Booker, while for Makro, spirits perform particularly well. Wilson also gave delegates an update on the progress Booker is making in its core business. The Extra initiative to upgrade its estate has embraced 142 of the 172 branches, with a further 20 to be completed by the end of 2013. The enhanced shopping environment has contributed to Booker achieving £3.9bn in sales in 2011. Another key factor is internet trading, which has risen from £109m in 2008 to £635m in 2012, with internet customer numbers up from 12,000 to 170,000 during the same period. “The web is totally transforming the way our business works. It is the most exciting thing about being in wholesale,” Wilson declared. “We are pleased with how Booker Direct is continuing to build. For example, virtually every cinema group is now a Booker Direct customer.” To enhance its specialist catering credentials, Booker bought Ritter Courivaud and it has since introduced a branded department at its Brighton depot, with 20 Ritter Lite sections planned for other Booker branches this year. Similarly it acquired the Classic on-trade business, which it launched from Brighton in July 2011. Five more Classic operations will be introduced from other depots this year. Chef Direct is another focus area for Booker. It has invested £5 million at its Didcot distribution centre and is looking to work with around 30 long-term low-risk, profitable foodservice businesses.

supplier strategy By promoting core lines and allocating more resources, Taylors of Harrogate is determined to increase distribution of Yorkshire Tea and Taylors speciality tea and coffee in C&C/wholesale.

‘Massive focus’ on wholesale With 7.5% growth in value sales, Yorkshire Tea from Taylors of Harrogate is bucking the decline in the tea market (-1.9%) and is vigorously pursuing distribution gains in order to boost its share of the standard tea market from 13.8% in England and Wales and 3% in Scotland (Nielsen 52 w/e 28.4.12). “The price differential between Yorkshire Tea and our competitors has been reduced, which has contributed to our success,” says John Sutcliffe, out-of-home and convenience controller. “Through cash & carry/wholesale, Yorkshire Tea 80s is price-marked at £2.49. It is the same price for independents as for the multiples, making it very appealing.” According to Sutcliffe, UK distribution in C&C/wholesale currently stands at 70%. “We are putting massive focus on this channel and the support is there – from extra-fill promotions and price-marked packs to stronger trading relationships,” he says. “Yorkshire Tea is a quality product at an everyday affordable price. It is the No.3 brand and the fastest growing. We deserve a fair share of the voice.” The company is promoting a core range to C&C/wholesalers: 40s and 80s for retail and 480s and 1200s for catering. For out-of-home, it has enveloped bags in 100s, with new The company is concentrating on five lines for this sector: products planned that will increase the brand offer. Other key Earl Grey, English Breakfast, Peppermint, Chamomile and SKUs are Yorkshire Tea Decaffeinated, 80s, Yorkshire Gold, Green Tea, which are available in sachets in packs of 20, 50 40s, and Yorkshire Tea for Hard Water, also 40s. and 100. As NPD is pivotal to this sector of the tea market, Sutcliffe says: “We will continue to allocate more the core range will be enhanced within the next few months. resource to the wholesale channel. We will also work closely Taylors Coffee, which has grown by 35% year on year for with our marketing team to ensure we communicate our key the past three years, is similarly benefiting from a drive in brand messages to our customer base.” C&C/wholesale, with the aim of increasing distribution from Melissa McMinn, assistant brand communications the existing level of 50%. Although the portfolio consists of manager, adds: “We have to reinvigorate the tea market by 10 lifestyle blends, the company is focusing on three for this bringing back the theatre. We are best positioned due to the channel: Rich Italian, Lazy Sunday, quality of our product.” and Decaffé. New TV ads were shown nation“These are the top three bestally earlier this year and are back on selling SKUs, not only in our range, the air this month. Little Urn, a but also in the entire roast & ground converted ice cream van that plays coffee market,” says McMinn. ‘Tea for Two’ as its jingle, is touring All come in 227g packs, six to an venues throughout the UK. outer. Sutcliffe says: “We want to Yorkshire Tea is also sponsoring build on our retail success in coffee various cricket events, including and have plans to further develop the Yorkshire Tea Village Cup. our product range within the “Yorkshire Tea is a good fit with out-of-home and C&C/wholesale cricket as both are quintessentially channel. We will focus on our packEnglish,” McMinn explains. aging format and ensure we have Taylors of Harrogate’s speciality the best-selling products available, tea range has little distribution in with some NPD to throw into the C&C/wholesale – something that mix as well.” Sutcliffe is keen to address. “Our Taylors Coffee has recently priority is out-of-home wholesalers signed another year-long contract but we won’t rule out cash & carry with Sky Arts, featuring adverts for as well. Our relationship with 3663 each blend and an experiential is developing and we aim to Sutcliffe serves Yorkshire Tea from ‘Little Urn’. campaign. broaden our reach going forward.”

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focus on vodka

Value and flavour in demand Premium and flavoured vodkas are growing in popularity, while smaller bottle sizes and keen prices are key in the standard vodka category. Vodka is still the leading spirits category – by far – for Wallaces Express, the Irvine-based delivered wholesaler that focuses almost entirely on the on-trade. Managing director Brian Calder says: “Vodka is still growing its market share. There has been increased interest in premium and flavoured vodkas, with the consumer looking for a point of difference. This is a trend that is reflected across several spirit categories where customers are offering premium brands. RTD vodkabased products continue on a steady decline, as has been the case over the past five years.” Wallaces Express offers a range of more than 50 vodkas from an ‘everyday’ selection to top-end premium brands. “Smirnoff is still the market leader by quite a way,” states Brian Calder: “There has Calder. “As is normal, the 80/20 been increased interest in premium and flavoured rule applies where 80% of our vodkas.” sales come from less than 20% of the brands we stock.” He continues: “In today’s economic climate, price is always important especially for value brands and the market leaders. However price is less important at the premium end of the market.” Calder acknowledges the tough trading conditions publicans are facing. “Consumer trends are changing – there is more home consumption. Publicans must offer a range of quality drinks, served perfectly, in a welcoming atmosphere by well trained and polite, helpful staff. Going out for a drink is an occasion and the consumer is looking for service, surroundings and variety that are of a high standard. Customers are still prepared to pay for quality and service.” According to Today’s Group’s trading controller Kevin Walshe, total vodka is down 3.9% in the independent offtrade year on year. This compares to cognac, golden rum and non-cream liqueurs, which are in growth within independents. Whisky (both Scotch and Irish) is slightly down. He says: “Flavoured vodkas have fared reasonably well, although they have seemingly cannibalised sales of the original parent brand. Own-label and tertiary vodkas are taking volume from premium and branded products in the category. “Total RTDs are down 14.6% in volume year on year with the vodka-based varieties remaining the category leaders, albeit steadily losing share. However, canned RTDs are performing well and vodka-based varieties are no exception.” Commenting on the importance of price, Walshe says: “Value for money remains the key factor in consumer choice,

and margins must be protected along the route to market. Duty, legislation and commodity price increases continue to add pressure. “All involved in the route to market must keep in mind that a product can only consider itself sold once it is in the hand of a consumer. Pack size in the convenience sector is crucial, as is the abv of a product in terms of allowing the retailer to hit an attractive price point. Category management initiatives, such as Today’s Plan For Profit, can help an independent grocer maximise the profitability of limited licensed shelf space.” Roopinder Toor, senior negotiator for beers, wines & spirits at Bestway wholesale group, reports that the entire spirits category at Bestway has shown good growth recently. “The sector is driven by vodka, with own-labels Imperial Czar and Petrushka – both Bestway brands – taking a good slice of the market for us. As always in difficult economic times, the smaller 35cl size has stronger growth in the convenience channel than the full bottles. Price is important, and we expect this to be the case for some time. “So downsizing and looking for cheaper alternatives seems to be what is driving the consumer,” he confirms. “The new Vanilla flavour Smirnoff Vodka did very well at Christmas and, hopefully, along with the other flavours, will continue selling well during the summer months.” According to Toor, vodka is popular with consumers who like to make their own cocktails and drinks at home with lemonade, cola and other mixers, rather than spending their cash in bars and pubs. Top brand sellers for Bestway wholesale group are Smirnoff and Glen’s. The Big Summer promotion, running at Bestway and Batleys branches until September, is currently Own-labels take a offering a deal on Smirnoff, with a good slice of the market for Bestway. POR of 13.8%. Toor points out that the RTD sector has now settled down. Nielsen stats for the year to March put category value growth as 5% in take-home. “The RTD market is being led at Bestway and Batleys by sales of ‘Jack and Cola’ – Jack Daniel’s whiskey and cola rather than a vodka mix,” he states. “VK looks set to do well with a summer promotion.” Toor believes that the big events this summer should produce great sales opportunities for independents, with people en route to events and parties and also stocking up for picnics. He urges retailers to capitalise on the promotions Bestway is offering during the summer.

Cash & Carry Management

• July 2012 • 21

focus on vodka “Customers only really want the one size of RTDs so shelf-wobblers and shelf-barkers are being provided via the independents should only stock that,” he says. “The key to PoS Hotline (0800 917 3450). this market is to keep a supply ready in the chiller for cusDebs Carter, marketing director of Beverage Brands, says: tomers who want to drink within an hour or so of purchase.” “PMPs are extremely popular with both convenience store Toor highlights the issue of duty fraud. “This is still someshoppers and retailers. Some 86% of convenience stores thing that causes us and the industry great concern. In addistock price-marked products (him! wholesale tracking protion, there is a real threat to the health of people who buy grammes 2010/2011). Three-quarters of independent retail‘cheap’ vodka from unscrupulous sellers and we constantly ers say PMPs offer a good deal for them and their customers remind our customers that there are hefty fines and closures and are now the second most preferred form of promotion in being imposed on people who are caught and prosecuted.” this trading channel (him! Price Mark Pack Study 2011). For Batleys Scotland’s Drinks Direct and Foodservice “There is also strong evidence that PMPs help independoperations, vodka remains the No.1 sector within its spirits ent retailers drive impulse purchase, with 44% of convenoffering and has experienced ience shoppers stating that they are more likely to buy a significant growth – it now product on impulse when it is price-marked (him! Price Mark accounts for 45% of total spirits Pack Study 2011).” versus 41% in the previous In addition to the price-marked offers, WKD is using new year, says operations manager interactive digital technology on its packaging and point-ofFrank Fraser. sale materials to bring its ‘WKD Weekends – Bring It On!’ “In percentage terms, vodka summer campaign to life before consumers’ eyes. is currently outperforming all Multipacks featuring the smartphone-linked augmented other spirits with the exception reality (AR) activity were launched this spring, and the of imported whiskies and campaign has now been extended to individual WKD 275ml speciality shot type drinks. and 70cl bottles. RTDs are less significant than in A series of AR content imagery is being used during 2012. Frank Fraser: “Single bottle sales have become previous years and they have This summer, simply by pointing their smartphone at a pack, more prevalent.” suffered badly in the current consumers can view the new WKD Cocktail Recipe Maker. marketplace,” he adds. They can also access WKD’s ‘Big Head’ free app which lets Smirnoff Red Label is still the leading brand and accounts them ‘supersize’ their own head and make it as large as that for almost half of all vodka sales, but has seen modest of WKD character, the Head of Weekends. growth when compared to the rest of the category. WKD is also being supported with a TV campaign featur“There has been a move to less expensive brands, Glen’s ing both the popular ‘Pub Hush’ execution and the new ‘Bike’ and Red Square, which likely reflects the current climate in ad, and press and digital advertising. which the on-trade has to operate,” he maintains. WKD’s share of the £232 million RTD category is greater “Price in this category has always been of prime importhan the combined shares of the No.2 and No.3 brands. The tance but competition between wholesalers is fierce, and 2011 launch of Purple further consolidated WKD’s position as single bottle sales have become more prevalent as publicans brand leader. Initially launched as a limited edition, WKD look to keep their stockholding and financial outlay as tight Purple proved to be so popular it became a permanent part as possible.” of the range. With Purple, WKD now has four of the top 10 Beverage Brands is strengthening vodka-based WKD’s RTD variants. All data unless stated: Nielsen Scantrack GB Total Take Home RTD position as the brand leader in the RTD category with the category volume (L) & value (£) share, MAT to 26.5.12 expansion of its range of promotional price-marked packs. In the spring, the PMP mechanic was introduced on WKD four-packs. The £4.99 packs of WKD Blue, Iron Brew and Purple variants are being sold exclusively through the C&C/wholesale/convenience sectors, and will be available until the end of the year. And this month, Beverage Brands is extending its PMP activity to 70cl bottles of all four WKD variants: Blue, Iron Brew, Red and Purple. Available exclusively to independents via C&C/wholesalers until September, the 70cl packs are flashed with ‘Only £2.99 – Result!’ on peel-off promotional neck labels. Retailers can easily identify the stock in depot as the case outers also have a prominent flash stating ‘Special Price – £11.99’. PoS material is available to cash & carries. To help retailers promote the offer in store, Price-marked four-packs are exclusive to the C&C/wholesale/convenience sectors.


• Cash & Carry Management • July 2012

You don’t become


staying happy being No.2

• Russia’s best-selling PREMIUM vodka, distilled and bottled in St Petersburg • £3.5m UK investment in TV and Cinema campaign during 2012 • UK’s no 2 PREMIUM vodka branding growing at +28%* • Now distributed by Whyte & Mackay, contact your Account Manager for details

*source: Nielsen data MAT volume w/e 26.05.12




Enjoy Responsibly

focus on vodka demonstrating which products deserve more space on shelf. “Where products only have one to two facings they can be easily missed so it’s important to give space to each brand relative to their market share. Retailers should be aware of any innovative brand promotions that will help drive sales through both the wholesale and customer channels and stock accordingly.” Vodka is currently the largest category in the off-trade, growing at 11% within the grocery channel, according to Diageo GB. Smirnoff is growing ahead of this at 14% (Nielsen 52 wks to 3.3.12). Diageo points out that 93% of shopping trips in the convenience sector are for ‘something for tonight’ as opposed to a routine shop or for an event (Kantar Worldpanel 52 wk data to end Oct 2011 and Diageo shopper understanding research 2011). This means that fractional Vladivar Flavours are available in a 50cl bottle (rsp £10) and at an abv of 20%. sizes for single occasions are growing in popularity. Whyte & Mackay has added four new flavours to its To tap in to this, wholesalers should stock products in the Vladivar vodka range to capitalise on the growing consumer right range of sizes: 35cl is growing seven times faster than demand for flavoured spirits. the market average for spirits in RTM and convenience The range, comprising Raspberry & Vanilla; Apple & Pear; (Nielsen Scantrack impulse read value MAT to 2.2.12). Blackberry, Blueberry & Raspberry; and Lemon & Lime, has “As well as appealing to on-the-day shoppers, smaller been designed using detailed consumer insight to create bottles are also more relevant for budget-conscious conflavour combinations that appeal to men and women. sumers, and they give convenience stores a point of differThe launch has been supported with national advertising ence from supermarkets,” states Roz Nash, senior category and a voucher campaign in key consumer titles. The brand is development manager RTM & convenience at Diageo. also offering a series of ‘Vladi Great Nights In’ via its Premix cans are growing eight times faster than the total Facebook page, with prizes such as a 80’s/90’s themed alcohol market, making them the fastest growing segment in house party. Trade support includes the convenience sector (Nielsen 52 in-depot PoS material and retail wks to 3.3.12). kits. Diageo GB currently offers a John Bradbury, Whyte & range of 14 premix cans, including Mackay’s UK sales director, says: Smirnoff & Cola, Smirnoff & Diet “Vodka and flavoured vodkas are in Cola and Smirnoff Lime & Cola. growth and it’s great to have four Nash says: “60% of consumers new additions to the Vladivar family intend to drink premix cans on the Peter Wells, channel controller, that will strengthen brand awareday of purchase so wholesalers Whyte & Mackay ness and encourage trial.” should encourage retailers to The Vladivar Flavours come in a merchandise them in the fridge as 50cl bottle (rsp £10) and at an abv of 20%. This will capitalise selling them chilled will improve chances of purchase.” on the trend for convenient sizes and lower abv products. Earlier this year, Diageo GB invested in a nationwide Russian Standard vodka, which is distributed in the UK by outdoor advertising campaign worth £1m to drive further Whyte & Mackay, is putting significant investment behind the awareness of the newest addition to the Smirnoff Flavours brand with a number of consumer-facing promotions, includrange – Vanilla Smirnoff. ing a national advertising campaign on TV and in cinemas. Also earlier this year, the company introduced an excluIn order to maximise sales and profits of vodka and sive Smirnoff limited-edition pack into the off-trade to celevodka-based RTDs, Peter Wells, channel controller of Whyte brate Madonna’s 12th studio album MDNA, and the start of & Mackay, offers the following advice: “Make sure you stock her 2012 World Tour. and merchandise based on customer/consumer demand and Each pack contained a VIP access card with a unique code not out of habit. that, once entered into a Facebook page, unlocked exclusive “Market data should be used to show which brands content. This included a download of Madonna’s latest remix consumers are demanding so that retailers can ensure they track as well as other music downloads, behind-the-scenes are stocking fast moving lines. Market data is also good for content, and the chance to win VIP concert tickets.

‘Make sure you stock and merchandise based on customer/consumer demand and not out of habit’


• Cash & Carry Management • July 2012

focus on vodka

Reef is benefiting from a £400,000 marketing campaign.

Special packs and VIP access activity are currently being supported by a multi-million investment encompassing a TV ad, digital content and PR. Diageo advises retailers to maximise chiller space of premix drinks, bring spirits out from behind the counter, and use PoS material to improve visibility instore. It also advocates using permanent off-shelf units to boost sales during key times of year. Reef, the only still RTD on the market, has been relaunched by Global Brands. “Over 50% of pubs now stock a cocktail menu, and research has shown that consumers are seeking out more natural, fruity products, so this is the perfect time to relaunch Orange & Passionfruit Reef,” explains marketing director Simon Green. Orange & Passionfruit Reef, which has a 4% abv and contains 42% fruit juice – more than any other RTD – now has a new look and is benefiting from a £400,000 marketing campaign designed to establish the brand as the perfect summer drink because of its refreshing, still taste and its mixability. As over 80% of UK consumers have tried Reef (Survey Monkey 2012), Global Brands has retained the product’s identity but refreshed the label with a more premium design. The new-look 275ml bottle also features a neck label to improve stand-out on shelf. Global Brands has created an extensive menu of long drink, cocktail and sharing pitcher recipes to drive rate of sale in the on-trade. Branded pitchers, digital media, ’perfect serve’ sheets and PoS material also form part of the customer support package. Green comments: “Consumers are inundated with choice when it comes to their summer drinks options, but unlike most brands, which are vying for attention in a crowded category, Reef has a unique proposition. It is the only still fruit-flavoured RTD on the market and has the highest fruit


• Cash & Carry Management • July 2012

juice content, so the brand delivers against consumer demands for more natural, fruity products.” The RTD category is worth £629 million to the trade (CGA on-trade data MAT March 2012 and Nielsen off-trade data MAT April 2012) and Reef has distribution in over 9,000 outlets (CGA Nov 2011). Global Brands plans to target the 18 to 24 year-old market via in-outlet promotion, social media engagement and consumer competitions. In a separate development, Global Brands has renewed its focus on VK Mojito, and is extending the ready-to-drink cocktail portfolio with new VK Cosmo. With an abv of 4%, VK Cosmo is a sparkling alcoholic blend of cranberry juice, lime juice and flavours with vodka that closely replicates the popular Cosmopolitan cocktail. “VK Cocktails, which are available in a 275ml format, are convenient, they reduce waste and they make the latest trends more accessible to consumers and retailers,” says Green. “They are perfect for the summer months so we will be encouraging retailers to give ready-to-drink products the space and focus they deserve, and provide a range which appeals to primary users, ie 18–27 year-old consumers.” To encourage impulse purchases, Global Brands advises retailers to use cross promotions and display VK Cocktails with other categories, such as snacks or barbecue food, to highlight the different drinking and social occasions. Finlandia Vodka from Bacardi Brown-Forman Brands (BBFB) is now available in a 35cl bottle in two of its most popular variants – Classic and Grapefruit. Designed to help retailers capitalise on the social occasions and sporting events taking place this summer, the smaller bottles offer consumers a premium vodka at a much lower price point. The 35cl bottles (rsp £9.99 for Classic, £10.49 for Grapefruit) come in counter-top display packs of six, allowing retailers to capitalise on impulse sales. BBFB recently added Finlandia Blackcurrant Vodka to its range of premium flavours. Available in both the on-trade and the off-trade, it joins Cranberry, Lime, Mango and Grapefruit varieties. The company has also announced the launch of 35cl Eristoff Original in the convenience channel. The new format (rsp £7.49) is sold in cases of six to help minimise outlay. Eristoff Vodka is growing at 58% in the convenience sector (AC Nielsen MAT, w/e 26th May 2012). In addition, Eristoff now holds the position of second largest branded vodka in the on-trade. Eristoff Gold 70cl, a golden caramel flavoured vodka variant, will be rolled out later this year following an exclusive listing with Sainsbury’s. National sampling is scheduled for both Eristoff Gold and Eristoff Black. This will reach 20,000 consumers and will be accompanied by a print advertising campaign.

For further information: Bacardi Brown-Forman Brands (01962) 762100 Beverage Brands (01452) 378555 Diageo GB 020-8978 6000 Global Brands (01246) 216000 Whyte & Mackay 0141-248 5771

employment law

Considering staff requests HR expert Cate Ritchie (below) answers your questions on employment law.


An employee who is off sick has put in a request for annual leave. Do we have to agree to this request? We are concerned that in doing so we will be setting a precedent.


Our current advice is to allow an employee who is off sick and who has requested holiday to take it. If the employee is still in receipt of sick pay, you would then top up any sick pay to full pay for the period of the holiday. However, do ensure that you seek relevant certification. If the employee has been abroad this would consist of some form of certification proving that they had sought medical help whilst there. This is consistent with the principles outlined in the case of Stringer v HMRC and allows an employee to request and take their annual leave entitlement whilst legitimately off sick.


An employee has accepted alternative employment with a four-week trial period during a redundancy process. If, at the end of the trial, the employee decides to opt for redundancy, when does the employee’s notice period commence?


Before starting a statutory trial period, the previous contract of employment must have been brought to an end. This means that notice must be given. This can happen in a number of ways: the employee works his or her notice and then begins the trial period the employer and employee agree to a shorter period of notice which is served prior to the start of the trial period the employer and employee agree to start the trial period at the end of the old contract without any notice being served, agreeing only to pay notice if the trial period is unsuccessful the employer and employee agree to waive any entitlement to notice. However, notice of dismissal from the previous contract of employment cannot run at the same time as the statutory trial period. If notice was not given prior to starting the new alternative role, and was not waived by agreement, it would start when the trial period ended – ie either at the expiry of the four weeks or earlier if the employee rejects the role without working the full trial.

• • • •


An employee has requested that a trade union representative attends an informal meeting. Is it correct to say that a trade union representative can only attend and represent their members in ‘formal’ meetings, including disciplinary, grievance or sickness hearings?

It is good practice to allow the right to be accompanied at any meeting which could result in a dismissal, including the ending of a fixed-term contract or a confirmation of a redundancy decision. Some organisations may choose to extend this right and allow employees to be accompanied at investigation meetings. Therefore, it is advisable to check internal policies and procedures, trade union recognition agreements and any custom or practice before refusing or accepting the right to be accompanied at any other kind of meeting. Failure to grant a reasonable request to be accompanied could give rise to two weeks’ pay capped at the weekly limit (currently £430).


We are undertaking a business restructure and it looks like one employee will be at risk of redundancy but there is an opportunity that this employee can be offered a position with terms and conditions that are lower than those in their current role. Is this possible?


As you are undertaking a process with the employee and advising that their role is at risk of redundancy, you have to seek alternative employment opportunities within the business that the employee is capable of carrying out. The employee must be made aware of any alternative vacancies in the company. They then have the opportunity to apply for any alternative job knowing the terms and conditions on offer and if they are successful in securing that position, it will be on those terms and conditions. Therefore, providing there is no contractual right to retain employees on the same terms and conditions on redeployment, if they apply for a job with a lower salary, there is no legal obligation for you to keep them on a higher salary.


The right to be formally accompanied by a trade union representative generally applies to any disciplinary (to address an issue of misconduct, poor performance or ill health) or grievance meetings.

If you wish to talk to Cate about a particular HR issue, contact her at or phone (0792) 121 3890.

Cash & Carry Management

• July 2012 • 27

information technology

It’s the bits that matter Although money remains tight, businesses are still conscious of the benefits of IT. STL Technology Solutions, under managing director Ivan Durkin, has continued its sales success through the first half of this year. The company followed a major implementation at East End Foods in the West Midlands by installing its flagship Merchandise Management System (MMS), Sales Order Processing system (SOP) and Rep Order System (ROS) at the 80,000 sq ft Edinburgh warehouse of hardware & housewares wholesaler DF Wishart. A Stax Trade Centres member, the company holds some 35,000 products at any time. Durkin says that STL’s systems will help the wholesaler to sustain its reputation for offering the widest range along with a fast and efficient service – even as its business expands. He adds: “We have also helped Today’s Group member Dhamecha to extend its competitive lead by upgrading all of its order and merchandise management systems to STL’s new suite of 64-bit powered solutions. “Operating system revolutions might not sound exciting, but there is a very tangible bottom-line benefit in upgrading servers from the industry standard 32-bit operating system to 64-bit ones. “A 64-bit operating system lifts the limited memory cap imposed by 32-bit on most wholesale systems installed today, and, among other benefits, it gives C&C/wholesalers the ability to handle far more products and data, faster, by more users, and with greater virus protection.” STL is also installing a new Chip and PIN solution across the estate of the £100m Stax DIY wholesale chain to ensure it meets new Payment Card Industries Data Security Standards regulations. PCI DSS is a set of requirements describing both the environment and the procedures any vendor must have in place to protect customer payment card data. If a C&C/wholesaler processes, stores or transmits payment card data without being PCI DSS compliant, it could be fined, face legal action, or lose its right to accept payment cards. Durkin and his team at STL were delighted to learn that two of their clients were winners at the recent Today’s Group annual Stoneleigh show, with Elbrook Cash & Carry in Mitcham, Surrey, being crowned member of the year and Soho Cash & Carry, with branches in Smethwick and Wolverhampton, receiving the rising star award. Says Durkin: “As we have done since our inception, this year we have continued to push the IT boundaries for C&C/wholesalers, identifying and finding solutions to their business challenges. “Not only have we already upgraded all our systems to 64-bit, giving users greater memory, greater operating speed


• Cash & Carry Management • July 2012

Durkin: ‘We have continued to push the boundaries for cash & carry/wholesalers.’

and better virus protection, but we have also revamped our STL Rep Order System for reps on the road. “It now includes an enhanced appointments diary and details of previous orders. And it has the ability to both place and release customers from stop & record returns for uplift. All this information is communicated in real time over the 3G network.” Durkin says that another common challenge facing C&C/wholesalers today is server overload – one of the main causes of trading disruption. “Quite simply, if their server is full, they can’t process orders or issue invoices.” STL has addressed this problem through a partnership with support specialist Comspec IT Solutions, which offers a proactive server monitoring service. This provides cash & carry/wholesalers with a monthly health check of their server and automatically alerts the IT company if server performance is compromised, enabling STL to take swift remedial action on the C&C/wholesaler’s behalf before trading issues arise. STL has also investigated bottlenecks at C&C/wholesale checkouts, and has combined with retail solution expert NCR to bring self-service checkout options to wholesale. Durkin comments: “C&C/wholesalers’ checkout aisles can often be chocked by retailers doing multiple-trolley buys, to the frustration of a small pub or catering company manager doing a quicker, top-up shop.

CATERING The August 2012 issue of Cash & Carry Management will include a feature on Catering

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

Get ahead of the pack with STL


IT solutions that give wholesalers the winning edge The difference between running with the pack and crossing the line first is a high performance IT system. And no-one performs higher in IT solutions for wholesalers than STL. STL’s proven track record of constant innovation, using only the latest development tools, combined with our in-depth industry knowledge, can give you the competitive advantage.

0844 472 4727

New Thinking. New Solutions.


information technology “A self-service checkout unit from STL would allow a customer with up to 15 items to bypass the normal checkout operation and pay by card, enhancing his experience and thereby encouraging his repeat custom.”

‘Pivotal’ solutions In today’s economic climate, IT solutions are pivotal to achieving operational efficiency and helping to reduce costs, says Mark Windebank, managing director of Sanderson, which continues to help C&C/wholesalers maximise the benefits from the company’s Swords system. It is claimed to provide solutions which save time and money, overcome challenges and ensure operational strength for future growth. Latest customers to implement the Sanderson solution include Irish company Global Liquor Concepts, which has launched its new operation with Swords to manage and integrate all areas of the business, and Wolverhampton-based AIB Foods, which has selected Swords’ Radio Frequency to improve productivity in its warehouse. Joining the list of new customers is convenience foods wholesaler O’Reilly’s, which has implemented Swords Voice Order Picking into its warehouse. Windebank says that Swords solutions boost speed, accuracy and warehouse productivity by reducing the number of picking errors compared to a traditional paper-based system. Another Sanderson customer is grocery wholesaler Savage & Whitten, of Newry, Northern Ireland, which is benefiting from using voice technology. “The company recently revealed that its picking rate went up by 35% last year,” Windebank comments. “We believe it can improve further this year.” A number of clients are also taking advantage of the latest Sanderson solution, Mobile CRM. By using this, staff can access their Swords system via mobile devices, helping to enhance customer service, improve order taking efficiency and increase staff productivity.

A depot worker makes use of the Sanderson system.


• Cash & Carry Management • July 2012

Mobile CRM also provides business continuity for sales reps when away from the office. Windebank says that drinks wholesaler Preston Beer chose Swords to support its increasing product range and manage all wholesale operations. The system chosen delivers management and stock information, helping the company to make effective replenishment decisions and maximise the use of warehouse space. “Telesales are benefiting from instant visibility of stock levels and product information – enhancing service levels and avoiding missed sales opportunities. The system has also introduced much-needed pricing controls, simplifying complex pricing structures and saving time on setting unit costs and promotions.” Preston Beer has also implemented a new solution from Sanderson to streamline and automate the ‘quotation to contract pricing’ process, saving time and improving customer satisfaction by providing a faster service. The wholesaler’s managing director Tony Oxley says: “The Sanderson solution has improved our overall operational efficiency, transforming the areas that were causing us difficulties such as warehousing and setting pricing controls. We have the ability to extract information at the touch of a button, making a huge difference to our business.”

‘Enlightened approach’ BCP claims to have been delivering IT software solutions to the food & drink wholesale industry probably longer than any other niche supplier in the sector. “It’s this pedigree,” says distribution divisional director Tim Williams, “combined with our enlightened approach to working with clients and commitment to delivering the best of breed and cutting-edge technologies that underpins our position as a market leader and our continued success during a period of perhaps the toughest trading conditions in our more than 30 years’ history.” Although several well-known names have disappeared from the overall market, BCP has signed up several new clients over the past year. Says Williams: “As well, most of our existing clients have realised that strategic investment in IT can give them a real edge and help them not only survive, but thrive where others may go under.” The new clients include foodservice wholesaler Brook Street Foods, of Needham Market, Suffolk, which is investing in an end-to-end Accord Distribution System, incorporating Voice WMS, to support further growth, improve efficiency and eliminate time-consuming processes. BSF operations director Mark Huggins describes Accord as “a brilliant match to our needs”. Web ordering and Voice WMS are among the popular investments for BCP clients; newer functions have also been enthusiastically received. Williams comments: “We pride ourselves on being not just a technology leader, but also in working with customers and understanding their needs. This means we can incorporate new

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information technology

BCP Voice functionality aids the picking procedure.

technology as appropriate and evolve Accord in line with changing market conditions and business needs. “Simple Manufacturing, Bonded Voice WMS, C&C Centralisation and Rep Remote Ordering are a few recent developments that have come through in this way. And our annual Accord release programme keeps our clients on a future-proof platform.” The trend among certain BCP clients to bring some manufacturing in-house prompted the development of Accord’s new Manufacturing module, which is ideal for the kind of operation that C&C/wholesalers can handle themselves in order to add value. Similarly, with 15% of C&C/wholesalers’ sales on average now being taken on the road, the ability to handle orders remotely has become increasingly important. Accord’s Rep Remote Ordering module allows sales reps to use a tablet PC or other remote device to take orders while travelling, feeding directly into the head office system to place orders quickly and efficiently, while simultaneously checking availability and lead times. “It’s all much more efficient for both C&C/wholesalers and their customers,” says Williams. He adds that it is generally recognised that BCP has been at the forefront of introducing Voice technology to the UK C&C/wholesale channel with a solution that has been available across all warehouse operations from the start. Now the company has extended its Voice offering to include comprehensive labour management features and it has developed a Bonded Warehouse module, which is claimed to be a first in the marketplace as it works with wall-to-wall Voice technology to give C&C/wholesalers with a bond the full benefits of Voice across their warehouse. One of the biggest breakthroughs for the C&C sector is BCP’s Centralised Cash & Carry module, which allows C&C/wholesalers to replace servers at each depot with a


• Cash & Carry Management • July 2012

single central server, significantly reducing costs. Says Williams: “The module uses proven technology in a unique way to deliver significant benefits for multi-depot operations. For bigger organisations with a large number of depots the savings can be enormous. “With continuing tough economic conditions, competition in the marketplace is intensifying and service differentiation, underpinned by solid systems, is one of the few defences against profit margin erosion and customer migration. “At BCP we remain committed to ensuring that Accord gives our clients the firmest possible foundations so they can not only survive, but improve their competitive position.”

Further functionality BCP recently introduced further Voice functionality to its Accord Voice WMS. New advanced labour management features provide enhanced graphical tools for monitoring and evaluating picking activities so that managers and supervisors can easily optimise the use of labour across the whole picking operation. Managers can now easily review picking rates and estimated completion times both individually and across departments. This means pickers can be redeployed to different sections or carry our different orders to improve overall productivity.

For further information: BCP 0161-355 3000 Sanderson (0247) 655 5466 STL Technology Solutions (0844) 472 4727

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Now in their ninth year, Cash & Carry Management’s AWARDS

Please email your scores to or post this page (no stamp required) to:

trade and are entirely judged by C&Cs/delivered wholesalers.

Winlove Publications Ltd FREEPOST NAT 15060 PO Box 366 East Grinstead RH19 4BR

recognise and reward the efforts of the best suppliers to the

Top 25 Suppliers June performance

(max. 30 points)

AB InBev Accolade Wines Britvic Soft Drinks Cadbury

your votes

Carlsberg Coca-Cola Enterprises Diageo

The top 25 suppliers in England, Wales and Ireland, as voted by readers of Cash & Carry Management, are listed opposite. Each month for the next three months, readers are invited to award each supplier points based on the previous month’s performance. Please consider the following when assessing your top 25 suppliers:

• • •

Operations: deliveries, supplier contact, admin support, complaint handling Support: marketing and promotional activity, advice on merchandising and ranging, customer development Wholesale focus: right products, competitive pricing, appropriate packaging, understanding of wholesale marketplace

GlaxoSmithKline Heinz Imperial Tobacco Johnson & Johnson JTI Kellogg’s Kerry Foods Mars Molson Coors Nestlé

(including Professional)


Name ............................................................

Premier Foods Red Bull Robinson Young Tata

Company....................................................... Address ......................................................... .....................................................................


Tate & Lyle Unilever United Biscuits

ADDITIONAL QUESTIONS: 1. What is the fastest growing product category?................................................................................................................................................ 2. Which of the above companies is the most innovative?................................................................................................................................... 3. What is your fastest growing customer sector?................................................................................................................................................ 4. What is the biggest threat to your business? ................................................................................................................................................... 5. Which of the above companies gives the best merchandising advice? .............................................................................................................

price marking in C&C

‘Wonderful opportunity’ How do some of the leading C&C operators view price-marked packs?

Richard Booth, deputy trading controller, Bestway and Batleys Wholesale: “If used correctly, price marking is a wonderful opportunity for a supply company to develop sales of its brand and, in turn, our sales, because the manufacturer has full control of the proposition to the consumer. “In addition to the long-established companies we deal with in relation to PMPs, recently a small supplier of ours developed a range of pickles and chillies that carry a £1 mark. They offer very good value for money and are selling very well. “This is a good example of a supplier developing a brand from scratch. “While price marking is now being used extensively throughout most categories, I would pick out chilled foods as an area where it is weak. “Among leading brands where price marking has had a significant impact on our takings are Coca-Cola, PG tips tea bags, Andrex toilet rolls, Nescafé coffee, Pot Noodles and Weetabix. “For our customers, the appeal of PMPs is that they combine a leading brand, at a competitive price and in a convenient location. It’s a winner for the consumer. “As far as our Best-in own brand is concerned, virtually all items are price-marked – a format that is welcomed both by retailers and their customers. “Our Stimulation own-brand energy drink, price-marked at 35p, is now the best-selling canned soft drink in our business by volume.”

“There’s also Coca-Cola, whose price marking on cans represents a very radical move. And then there’s Walkers, which has introduced PMPs for its core flavours. “Which categories are most prolific in terms of price marking? I would say tobacco, soft drinks, biscuits, breakfast cereals and beverages. “As regards differences in the impact made by PMPs in the categories in which they appear, they revolve around the shared margin. For instance, tobacco offers a lower shared margin than soft drinks, although these categories are equally important as far as we are concerned. “Brands whose PMPS have had a significant effect on our takings include Red Bull, CocaCola two-litre, Nescafé coffee, PG tips tea bags, Walkers crisps and McVitie’s biscuits.” Neil Govind, buyer, Imperial Cash & Carry, north London: “The benefit of price-marked packs is really for consumers, because they know they’re getting the product at the right price. “As for our customers, those in high-end areas, such as central London, prefer non-priced packs as they can make better margins. However, for some products, like Red Bull, PMPs improve the rate of sale. “One of the more recent PMPs that we were selling was Martell, although it’s not a tactic that would work for wine. “Tobacco has most PMPs, while this format also works well in the energy drinks sector. “In addition to Martell and Red Bull, the branded products in PMPs that have had a major impact on our sales are Bacardi, Fosters and Boost.”

Pradip Dhamecha, chief executive, Dhamecha Cash & Carry: “Price-marked packs are crucial to our business as they now command a higher share of sales than packs which are not price-marked. “I must mention the recently reintroduced range of PMPs from Kellogg’s. Sales of these are rising.

Cash & Carry Management

• July 2012 • 35

price marking

What the customer wants Who started it – tobacco suppliers, confectionery manufacturers or maybe soft drinks specialists? No matter, price-marked packs are here to stay, and the strategy is gaining momentum.

Gissing with some of Barr’s substantial price-marked range.

Price-marked packs are driving market growth in the soft drinks category as the tough economic climate makes value an important consideration for shoppers, according to soft drinks specialist AG Barr. The company’s popular brands, including Irn-Bru, KA, Rubicon and Rockstar, are available in this format on a longterm basis, supported by additional promotional bursts. “Lower earnings and increased living costs have resulted in the average UK family having 5% less spending power, but the good news is that people are still prepared to spend money on low-cost treats,” says national impulse controller Guy Gissing. “Price-marked packs are growing in importance as they clearly indicate value for shoppers and therefore represent an important profit opportunity for cash & carry outlets. Some 70% of overall soft drinks growth has been driven by price-marked packs.” KA and Rubicon are examples of the positive effect that these packs can have on sales. Their use, long term, has delivered year-on-year sales increases of 37% for Rubicon and 51% for KA; and they have resulted in 26% growth for Rockstar. Sales of Irn-Bru have also increased, by 14%, with the use of price-marking in impulse. Says Gissing: “Research has shown that 40% of shoppers would be more likely to buy a product on impulse if it’s price marked, while an impressive 98% would buy a soft drink in a price-marked pack from a convenience store (him! 2011). “The importance of PMPs to retailers is clear: 75% of those surveyed already stock soft drinks in this format, while


• Cash & Carry Management • July 2012

65% said sales of PMPs had risen in their stores over the past 12 months (him!). “Our advice to cash & carries is clear: with the economy set to stay tough, supporting PMPs is key to growing sales.” Data source (unless shown): Nielsen Scantrack, value sales growth, MAT to 26.5.12.

Important factor “Value for money will remain an important factor when shoppers are choosing soft drinks. So C&C/wholesalers need to supply retailers with big name brands to offer added value, such as price-marked packs,” says Neil Gibson, head of marketing at Vimto Soft Drinks. He adds: “Our soft drinks portfolio supports this demand to offer a range of PMPs across the Vimto, Sunkist and Levi Roots brands. “Consumers are shopping locally more, but are still expecting great value from the best known brands, and this makes the availability of these packs vital when retailers are choosing stock at their C&C/wholesale depot.” Referring to Vimto, brand manager Clare Pritchard says: “Brand value has recently topped £60m, gaining £6.5m in the last year, and it is currently growing at 12.1% year on year.” The company’s ready-to-drink skus are shooting ahead by 77.8% year on year, and they are claimed to be the fastest-growing RTD range among the top 10 brands. Pritchard comments: “Our 500ml still original has been a major factor in the success of our RTD range as its


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price marking sportscap bottle format fits perfectly with our energetic teen audience looking for refreshment on the go. Both the Vimto 500m Still and Fizzy are available as £1 price-marked packs.” Vimto cordial is claimed to be growing at 6.4% and at 25.5% through the impulse channel. A multi-million pound advertising campaign is headed ‘Seriously Mixed Up Fruit.’ “We offer a 725ml cordial bottle with a special £1 price,” says Pritchard. “This is an ideal pack size and price for retailers to offer impulse shoppers. “Our strong association with a teen audience makes our range of PMPs an ideal offer for young shoppers looking to make their pocket money stretch further. Other products in the Vimto range include 330ml cans with a 49p price mark as well as a two-litre fizzy at £1.” Price-marked packs also cover Sunkist (growing at 69%) and Levi Roots, whose value is £4.2m. Sunkist orange two-litre has a £1 price tag – the same price as for the fizzy style. Levi Roots recently added a mango & pineapple flavoured carbonate to its range. This, together with the existing Caribbean crush and ginger beer with lime ’n’ honey, are available as 500ml PMPs. All data Nielsen total coverage MAT 26.5.12.

Value conscious The soft drinks sector is the biggest category in impulse, worth £2.43bn and growing at 10% (Nielsen 4.2.12). “Consumers today are more value conscious,” says Colin Seymour, long-term strategy director of GlaxoSmithKline. “Soft drinks are more of a treat and the decision to buy tends to be value-based.” He cites these three key ways that brands can offer additional value: Price-marked packs Multibuy offers Engagement through on-pack offers. “PMPs are particularly important in the impulse environment where research suggests that over 44% of customers are more likely to purchase a product on impulse if it is pricemarked (him!).” Seymour points to research conducted by him! last year which highlighted that 65% of retailers believe that sales of PMPs have risen in their stores in the last 12 months. Over 50% said they intended to stock more PMPs in the months to come to meet consumer demand (Nielsen total coverage 25.12.10).

• • •


• Cash & Carry Management • July 2012

He adds that if retailers have limited display space they should focus on the key brands as the top 10 make up over 60% of total category sales (Nielsen). Promotional offers and PMPs should also be stocked. “There is a clear opportunity to grow the category with PMPs; some 98% of consumers would purchase soft drinks PMPs, but only 76% of retailers stock them (him!). “This presents an ideal opportunity for retailers to maximise consumer demand for PMPs. “And him! demonstrates that 47% of retailers would be more likely to stock NPD if it was a PMP.” Seymour adds that promotional activity in support of PMPs is “desirable and a good way of communicating savings to consumers.” While GSK has increased its range of PMPs (including those for Ribena and Lucozade variants) it also ensures that it continues to offer a proportion of non-PMPs so retailers have a choice. The Lucozade Energy portfolio now includes Caribbean Crush, featuring a 95p price mark. It is predicted that it will drive incremental sales and expand the energy drinks category.

‘There is a clear opportunity to grow the soft drinks category with price-marked packs’ Colin Seymour, GlaxoSmithKline’s long-term strategy director Within the Ribena range, GSK offers blackcurrant 288ml at 55p and 500ml at 99p, blackcurrant sparkling drink 500ml at 99p, squash 600ml £1.69, raspberry sparkling drink 500ml 99p, really light blackcurrant 500ml PET 99p, strawberry 288ml carton 55p and strawberry RTD 500ml 99p. Referring to the soft drinks category in general, Seymour comments: “Retailers can benefit from bringing a bit of fun and excitement to their customers by supporting big consumer or brand events in 2012. “These create an additional reason for purchase and increase impulse sales as they drive excitement and engagement among the public. “Use of secondary displays to shout messages to customers also helps to drive extra product sales.” Seymour adds: “Activity in support of various promotions and PMPs is desirable and a good way of communicating savings. We encourage retailers to pass on deals from their C&C/wholesalers to their customers.”

price marking

One of several price-marked products in the Kepak range.

Record swing “Cost-conscious consumers are turning to price-marked packs in record numbers – and that’s good news for cash & carry customers,” says Angela Daulby, channel director for Kepak Convenience Foods, which claims market leadership in the UK’s hot snacking sector. She adds: “Today’s price-sensitive shoppers demand value for money. him! research clearly shows they gravitate towards PMPs which they believe represent a good deal. “It’s important for retailers to recognise that standard price-marked packs deliver higher cash margins than launch or promotional offers.” Kepak offers many of its best-selling lines as permanent PMPs, including its original Rustlers range (Quarter Pounder, Chicken Sandwich and BBQ Rib) which is a warm order at £1.99. New products can also benefit from being price-marked as they encourage trial, Daulby believes. Rustlers Hot Subs and Hot Wraps are good examples of this. Both are price-marked at £1.99 and have achieved sales of £31.7m since launch (Nielsen Scantrack total market sales 12 months to 31.3.12). “There’s no doubt that price sensitivity will continue and this highlights the need for independent retailers to offer price-marked options,” says Daulby. “However, what’s even more important is to ensure that products are readily available. If they are not on shelf, then whether or not a product is price-marked is irrelevant. “Too many independent stores are losing out because shelves are not always fully stocked. Empty shelves means lost sales and, more importantly, lost customers, as they will go elsewhere for what they want and may not return.”

Premium snacks Specific price-marked packs for the independent sector in both sharing and single-serve formats have been a valuable marketing tool for Kettle Chips. The brand claims to be the the UK’s No. 1 hand-cooked


• Cash & Carry Management • July 2012

crisp and is a key player in the premium snacking category, where impulse sales are showing strong growth ahead of the market (23% up over the last 12 weeks against 4.1% for the total crisps & snacks market). Head of impulse Jim Couchman says: “The Kettle brand has delivered more value sales growth within the impulse crisps & snacks sector than any other top 10 brand in the latest 12 weeks.” He adds: “Consumer brand awareness of the brand is much higher than that of competitor handcooked products and in impulse (as well as the total market) Kettle Chips is the leading premium crisp brand with a market share of more than 70%.” Couchman describes Kettle as “the must-stock premium crisp brand for impulse retailers in both sharing and single-serve formats. It is a top three brand within the sharing category in this channel, along with Pringles and Doritos.” He highlights the 40g pack in the impulse singleserve sector where it is delivering growth of 14.5% yearon-year in a flat market. The trend is even stronger in the last 12 weeks, during which value sales have increased by 29.8%. “Due to the recession, people are eating in more and this is particularly evident among upmarket consumers (Kantar). On such occasions people still want to treat themselves and Kettle Chips remains a little luxury that they can afford,” he explains. “Research shows that almost 70% of sharing bags of crisps & snacks sold through independents weigh less than 130g and that pricemarked packs are one of the top promotional mechanics favoured by retailers. Consumers also like price marking as it provides reassurance and can prompt trial and impulse purchase (him!).” Because of this, the supplier has launched a range of smaller price-marked sharing bags specifically for the independent convenience sector. Available through C&C/wholesalers, the 100g ‘little big bags’ come in the top-selling flavours of Kettle Chips: lightly salted, sea salt & balsamic vinegar, sea salt with crushed black peppercorns, mature Cheddar & red onion and sweet chilli. They are price-marked at £1.29. Says Couchman: “These new price-marked packs combine the brand strength of a top three sharing brand and the value proposition of a smaller pack format, at a price point in line with the market.”

price marking Another innovation is Kettle Ridge Crisps, also available through C&C/wholesalers. The 85g bags (flamed steak and spicy chilli varieties) are price-marked at 99p. They include no artificial additives, colours or flavourings. The PMP range also includes 40g bags at 55p, the styles comprising lightly salted, sea salt & balsamic vinegar, sea salt with crushed black peppercorns, mature Cheddar & red onion, sweet chilli and sour cream & onion. Data source: Nielsen, except where shown.

Long-term packs Britvic Soft Drinks this month launches a range of pricemarked packs for such brands as Pepsi Max, Lipton Ice Tea, 7UP, Tango and Juicy Drench. Kate Fletcher, commercial director for impulse, says they will be available long term, “ensuring retailers can maximise sales opportunities throughout the summer and beyond”. She adds that the soft drinks category is worth £1.8bn in impulse and is growing by 7% (Nielsen MAT 17.3.12). “PMPs are a great way for retailers to capitalise, with research revealing that almost half of convenience shoppers are more likely to buy a product on impulse when it’s price-marked (him! September 2011).” To ensure shoppers have a choice of PMP options across different pack sizes for different occasions, 330ml cans will be price-marked at 59p in the Pepsi range and 49p for 7Up and Tango. The 600ml and 500ml bottles will be priced at 99p, and this will feature on Pepsi, 7UP, Juicy Drench and ‘star performer of the cold hot drinks category’, Lipton Ice Tea. With prices displayed clearly on-pack, says Fletcher, the range delivers visible value for money and is set to offer retailers profit on return of up to 49%. The price-marked packs are available through the C&C/wholesale channel, which is being supported with a range of point-of-sale material and displays to generate in-depot interest. Fletcher comments: “Our research shows that customers trust price-marked packs, as they feel reassured they are getting a good deal. “Britvic is committed to supporting the convenience channel, as well as fuelling growth of the soft drinks category. We are confident our latest range of PMPs will contribute to this. “With consumers looking for added value in the current economic climate, our latest range of PMPs delivers this on big brands that shoppers know and trust.”


• Cash & Carry Management • July 2012

‘Ahead of total market’ Weetabix generates around 30% of its turnover in C&C/wholesale and the convenience channel through pricemarked packs. Darryl Burgess, business unit controller, wholesale & convenience, says: “Weetabix is the only manufacturer to perform ahead of the total cereals market in the impulse sector (Nielsen 26.5.12). While total impulse volume is down by 6.3%, ours is 0.7% higher.” He picks out three skus which have done particularly well over the past year: Weetabix 24s (priced at £1.99), 12s (£1.39) and Weetos (£2 for a 350g pack), all of which are in double-digit growth. “Over the past six months,” says Burgess, “we have introduced smaller cases for C&C operators in all six and eight packs, allowing the independent retailer to buy more of our core range while laying out less money. “The launch of Golden Syrup 12s, priced at £1.49, and on promotion at £1, has been extremely successful for a new product, and it continues to perform well.” Reflecting on when the supplier came to be involved in price marking, he says it was in 2008 with the launch of Weetabix 12s at £1.19. “Our strategy was to drive the core range of cereals (Weetabix, Weetabix Minis, Weetos, Ready Brek and Alpen Bars) by providing transparent pricing on pack in the independent sector,” he told Cash & Carry Management. “That way, consumers could trust they were still getting value for money in the cereals category when shopping in independent stores.” Burgess adds: “While we have moved very much into price marking, it should be remembered that the full range is also available in non price-marked packs. “Generally, price marking has been a key driver for our growth in the independent sector over the past three years. “Additional focus towards new product development has also allowed Weetabix to gain distribution and trial quickly through this channel. Therefore it will continue to be our key strategy going forward across the core range and future product development.”



een driven b s a h th w ro g s k oft drin 70% of overall s s* k c a p d e rk a -m e by pric arked packs -m e c ri p rm e -t g Great value, lon ft Drinks o S rr a B m o fr le availab

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*Source : Nielsen Scantrack, Value Sales, MAT to 26/05/12, Total Impulse


price marking Premier in name... One of the major brands within the JTI (Gallaher) range to have offered a price-marked alternative is Winston. Among the many independent retailers supporting this label is Pritesh Patel, of Swanscombe News in Notting Hill, west London, who says: “I’ve stocked Winston ever since its UK launch in 2009. “It has proved to be one of my best sellers, especially during the August carnival season. “At this time of year, I significantly increase my Winston facings to meet demand and use point-of-sale material to ensure adult smokers are aware that I stock it. “However, it’s not just about the carnival. Some 60% of my store’s traffic is from the local community, so ensuring availability is key all year round. “To achieve the level of sales I do – around four Winston Blue and three Red outers a week – my advice is simple: ensure the brand is positioned in the right place on the gantry, always use a double facing if space allows and stock price-marked packs. Do this and you’ve got yourself a winning Winston formula!”

Saving money Iain Watkins, UK communications manager at Imperial Tobacco, says: “Continual tobacco taxation increases by the Chancellor and the tough economic conditions are driving the ‘value-seeking’ trend, prevalent among tobacco shoppers. “Consumers are looking to save money while retaining a desire for quality, and many carefully manage their finances each month. “It is predicted that, when significant economic growth returns, this ‘professional budgeting’ will have developed into default behaviour for many consumers. With more and more people now watching their pennies, it is sensible for retailers to ensure they provide a good range of pricemarked packs in their tobacco offering.” Watkins, describing tobacco and cigarettes as “a destination purchase for adult smokers”, adds that price-marked packs provide a major on-shelf presence for retailers who seek to highlight their value to the 12 million UK adults who choose to smoke. “Tobacco shoppers visit stores more frequently than nonsmokers and spend twice as much as the average convenience store shopper each year (him! CTP 2012), so providing the products local smokers prefer at the right price is vital.


• Cash & Carry Management • July 2012

“Evidence suggests that consumers will shop in outlets that offer a good range of price-marked packs in preference to those that do not, as they offer reassurance of value when seen on-shelf.” Watkins says that retailers could lose tobacco sales, and the impulse purchases made with them, if they do not realise their commercial value. And stocking leading brands such as Lambert & Butler and Golden Virginia Green in PMPs enables independents to compete more effectively with the retail multiples. “Products supported by PMPs are offering value to tobacco shoppers, and retailers can utilise them to increase their footfall and protect their turnover. This is vital, as many smokers are turning to the cheap, poor quality brands offered for sale by criminals in the illicit trade. “Independents should constantly monitor trends in the preferences of their customers as around 60% of their turnover will come from people who live close to their shop. If a store is located in a particularly price-sensitive area then it would be wise for the retailer to stock tobacco in PMPs,” says Watkins. He adds that Imperial Tobacco aims to have a member of its sales force call regularly on every shop that sells tobacco in the UK. “Our representatives are there to help retailers manage the tobacco category in their business to ensure they realise their commercial opportunities. We have a responsibility to help and support the trade and the range of products stocked is obviously important to the retailer and his customers.” He maintains that the reps provide local market share information and trends for every part of the UK to ensure the range and offering of PMPs is right for each outlet. “We have also developed merchandising solutions and provided PMPs to help retailers meet the requirements of all tobacco shoppers. We want the retail trade to retain and gain customers with brands such as JPS Silver, Windsor Blue, Gold Leaf, JPS RYO tobacco and Golden Virginia Yellow, all of which are provided in price-marked packs.”

First-time PMP format Following the successful launch of its roll-your-own tobacco Salsa range early this year, Scandinavian Tobacco Group has introduced a price-marked variant. The multipack represents the company’s first PMP format for RYO tobacco.

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price marking Alan Graham, STG UK head of marketing, says: “With each multipack containing five 12.5g packs, each with an rsp of £3.35, retailers can now control cash flow better than ever before, thanks to a smaller financial outlay. “The combination of Salsa’s low price point and the new PMP will drive sales for retailers by allowing them to demonstrate visible value for money to customers while ensuring they are getting a good deal.” Graham adds: “As the RYO market continues to grow at a fast pace, we believe that the addition of a PMP variant to the Salsa range will help retailers develop the market’s potential even further. “The value-for-money trend that is dominating consumers’ buying habits is very much here to stay, and we are able to offer one of the lowest cash outlays to retailers for a 12.5g variant. “PMPs deliver a strong rate of sale as cash-conscious shoppers still feel that if a manufacturer is willing to put a price on a pack, it is likely to be a good deal.”

He adds: “In September, we intend rolling out the £1 price-marked format to the whole trade.” The company has also just launched a campaign to make the public aware of its 40th anniversary in the UK. Using the ‘Deliciously Continental World of Bahlsen’ tagline, the activity features a 10-date experiential tour around retailers’ headquarters to encourage the trade to spend time at the biscuit supplier’s ‘Deliciously Continental Café’. Managing director Jim Tierney says: “This is an opportunity to thank customers for their continued support, reinforcing our impressive biscuit heritage and commitment to excellence.” He adds that the company will be embarking on some new product development later this year.

European producer Established in 1889, Bahlsen, the Hanover-based biscuit producer which enjoys a considerable presence in the UK, introduced its Choco Leibniz brand in £1 price-marked packs at the recent Nisa-Today’s annual exhibition. The product describes itself on pack as “more chocolate than biscuit”. The ingredients go further by declaring that Choco Leibniz are “butter biscuits set in milk chocolate (63%).” Trade sector manager Layne Chisholm says that while most of the Bahlsen range are made in Germany, some of the

Dipping into PMPs Doritos, from PepsiCo, has launched a television campaign, plus a range of price-marked packs, for sharing bags and dips, featuring the Mariachi Doritos brand. Available in four styles (cool original, tangy cheese, chilli heatwave and bbq ribs), the £1m PMPs are said to ‘enable retailers to offer a value proposition during popular summer sharing occasions, like bbqs and picnics, at a price point that appeals to consumers’. The company has also introduced two £1.29 pricemarked Doritos dips in mild and hot salsa varieties. Marketing manager Hugo Amos says: “The launch of the campaign and new PMPs means impulse retailers can maximise the sales opportunity created by the Doritos investment.”

For further information: Before the biscuit manufacturer introduced the packs in a £1 format.

manufacturing is also conducted in Poland, Switzerland and France. Choco Leibniz biscuits (125g), which are available in milk and dark chocolate varieties, come in shrinkwraps of six and, prior to the £1 price mark introduction, had an rsp of £1.99. Another of the company’s range, Hit chocolate sandwich biscuit (250g), comes in 99p price-marked packs and in trays of six. Chisholm describes the product (in choco, vanilla, hazelnut and coconut varieties) as “convenient for cash & carries and the retail trade”.


• Cash & Carry Management • July 2012

AG Barr (01204) 664200 Bahlsen (01753) 889822 Britvic Soft Drinks (0845) 758 1781 GlaxoSmithKline (08702) 415132 Imperial Tobacco (0117) 963 6636 JTI (Gallaher) (0800) 163503 Kepak Convenience Foods (01772) 421442 Kettle Foods (0800) 616996 PepsiCo (0118) 930 6666 Scandinavian Tobacco Group 020-8731 3400 Vimto Soft Drinks (01925) 220122 Weetabix (01536) 722181


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dairy update

Delivered to C&C doorsteps Milk, cheese, butter and cream are a powerful combination.

Regional tastes are a priority for Robert Wiseman Dairies.

Built on the business principles of first-class service and high quality products, Robert Wiseman Dairies is one of the UK’s leading fresh milk suppliers. Formed over 60 years ago, it has grown rapidly in recent years – from a market share of just 2% in 1997 to around 30% today. The Glasgow-based company has increased its percentage across all milk retail sectors. It also has a significant presence in cash & carry, in which it is the sole supplier to Booker and Bestway/Batleys, as well as having ties with Costco and Makro. Sandy Wilkie, sales & marketing director, says: “Cash & carries are an important market for us. In the past few years supply to this sector has grown significantly. “Recognising that people are becoming more aware of the provenance of the food they eat and drink, we introduced a series of regional labels to our Black & White range. This instantly tells consumers that the milk is sourced within their region and sold in local areas, such as Grampian or the West Country, ensuring we are producing a local product of the highest quality that everyone expects from Robert Wiseman Dairies.” Wilkie adds: “Throughout the year, we also run a calendar of special edition and seasonal packaging on our Black & White brand cartons and labels. Our aim is to introduce a bit of excitement into the milk fixture and create some interest around an everyday product. “We often work very closely with external partners to be able to create the most interesting packaging, and we sometimes offer an exciting array of prizes too.” Creating a distinctive brand has also been central to the


• Cash & Carry Management • July 2012

Wiseman success story, with all its iconic black and white ‘cow print’ vehicles carrying the same designs as its core brand milk range. In addition, the company’s portfolio includes what is claimed to be the UK’s first 1% fat milk brand – the One, which is continuing to grow in popularity as consumers look for easy ways to reduce fat consumption. Robert Wiseman Dairies has invested over £475m since 1994 to create an unrivalled network of state-of-the-art dairies and distribution depots. Its dairies are located in Aberdeen, Glasgow, East Kilbride, Manchester, Droitwich Spa and Bridgwater – “strategically near the main milk producing regions of the country”, says Wilkie. Once the milk is processed and packed, it is moved to distribution depots close to major population centres in order to maximise efficiency and minimise food miles.

£15m on brand marketing According to Unilever, whose brands include Flora, I Can’t Believe It’s Not Butter and Bertolli, the butters & spreads market is worth over £1.2bn and grew by 12% over the last year (IRI 25.3.12). Senior category manager Adrian Adams claims that the company has a 30.1% share of the market, while Flora alone is valued at £213m, with Unilever this year spending £15m on marketing the brand. Early this year, the company reformulated Flora Light and Original following a 35m euros investment in a new production facility.

dairy update At the same time, Unilever introduced a 250g format for Flora pro.activ. Says Adams: “Currently, Flora is the largest brand in the butters & spreads market, with a household penetration of 53%.” Bertolli olive-based spread will be introducing Gold at the beginning of September. It is said to ‘combine the rich taste of butter with the natural goodness of finest Mediterranean olive oil and with 40% less saturated fat than spreadable butter’. Brand manager Kieran Danaher says: “Bertolli Gold, which comes in a 400g tub (rsp £2.40, cases of 16), taps into the current trend for products that offer a quality taste with health credentials. The brand is currently worth £49m and is in 10% growth (IRI). The launch will be supported by a £2.5m marketing budget, covering tv and print ads, digital activity and sampling. The first commercial will appear in October.

Take your choice Cathedral City, from Dairy Crest, has introduced a twin pack, containing both 350g mature and mature lighter styles (rsp £2.39).

The brand is claimed to be worth £21m in the convenience sector and is increasing in value by 13.4% year on year. Marketing manager Jackie Wilson says: “We know that many people use more than one type of Cheddar and will have at least two types in the ‘fridge. “The variety pack will enable convenience shoppers to purchase two types together and encourage them to expand their repertoire, which is important for category growth. The mature and mature lighter variety pack is perfect for those that want a lighter cheese for mum and a regular block for the rest of the family.” The pre-pack cheese category is worth £241m in convenience and is growing at 10.9%. Everyday block is the largest sector, worth £110.6m, driven by mature, and is increasing by 8.3% in value and 6.8% in volume.

gone into ensuring the Chedds range is perfectly designed for children. The conclusion is that cheese for kids should be made of real cheese – 100% Cathedral City Cheddar – “because kids are real”. Senior brand manager Jo Huergo says: “We are thrilled with how Chedds is performing. The biggest cheese snack launch of the last year is now worth £5.5m and has been bought by 1.6m UK households (Nielsen 24.4.12).”

Pre-packs dominate Within the £2.6bn UK retail cheese market, with a volume of 413,000 tonnes, pre-packed is worth £2.4bn, or 94% of the total. Katy Ryan, director of insight & innovation at Adams Foods, says: “With 5.6bn meal occasions in the UK including cheese last year, we must understand each key moment with the consumer and shopper. “If we can bring to life versatility and width of appeal at these points, we will help people think differently and deliver the next stage of growth. One more portion a week could add £350m to the category.” She says that research conducted by the company showed that consumers are actively seeking value for money. “This is reflected by an increase in food and drink in-store promotional activity from 28% to 36% over a threeyear period.” The major variety, Cheddar, is growing in value by 5%, with the extra mature variant 18% up, mature 2% higher, medium 13% and mild 5%. To maintain this upward trend, Adams Foods relaunched its Pilgrims Choice brand, with mature Cheddar, extra mature, vintage, lighter and lighter extra all receiving a new livery at the start of the year. And two months ago, the company unveiled a marketing campaign under the ‘Good Choice Pilgrim’ banner. The two commercials featured a tiny cowboy reminding shoppers, as they make their cheese selection, that not all cheese is created the same way and that the choice should be based on wanting the best quality, taste and texture. Marketing director Alastair Jackson says: “The campaign was a new direction for the brand, but one we’re confident will pay off. “There are a lot of cheese brands out there, and our indepth research has shown that consumers really don’t know enough about individual brands to make an informed choice, so they buy on price or availability rather than sticking

All data Nielsen 31.3.12.

Another Dairy Crest brand, Chedds, last month began a six-week tv campaign. The 30-second commercial describes the product (rsp £1.99) as ‘the youth department of Cathedral City’, where the head of department (an 11 year-old boy) talks the viewer through an array of increasingly elaborate child-run product testing experiments, explaining how ’countless hours’ have


• Cash & Carry Management • July 2012

Meet the locals

Today’s consumers love to buy local produce - especially when they don’t have to pay a premium for the privilege. At Robert Wiseman Dairies we’ve introduced a range of regional milk brands within our iconic Black & White range and we’re expanding our portfolio to cover more of the country. The latest edition is Our Northern Dairy - the sixth in the set. For more and more consumers right across Britain, it’s now easy to choose local milk at no additional cost. It’s milk to be proud of - and that’s great news for you, wherever your business.

The professionals in milk

dairy update to a favourite or choosing by quality. “We hope that with the aid of our trusty cowboy we can change all that by inspiring shoppers to think about what they’re buying and encourage them to make the right choice.”

The company offers a complete range of dairy ingredients, including spreads, cheese, cream, ice cream, custard and sauces – all suitable for C&C/wholesalers. Richards adds: “The consumer trend in butter and spreads has seen a move towards products with a buttery taste and spreadable texture, driving innovation and growth. Kerrymaid has a range of chef-developed dairy-based spreads and cooking ingredients for all catering requireAccording to Warren MacFarlane, foodservice marketing ments.” manager for Lactalis McLelland, sales of unsalted butter in The list includes: Kerrymaid Original, suitable for cooking, baking and the UK are growing, with a year-on-year volume increase of spreading and now in 10g portions for front of house. 15.7%. By contrast, salted is down by 2.1% and slightly Buttery Spreads, in 500g, 1kg and 2kg packs. salted by 4.3%. Sunflower and Sunflower Light – ‘healthier alternatives to He claims that the company’s Président unsalted butter butter’. last year achieved 53.9% volume growth. Premium Baking Spread for pastries and pies, available in “It is a lactic butter, meaning a starter culture is added to 250g and 2kg sizes. the cream prior to churning to produce its distinctive taste. It Lard for savoury pastry and basting (250g). contains no preservatives, no added colours and is made in Richards comments: “Customers are looking for all the Normandy using the finest creams,” MacFarlane explains. taste of a traditional butter, but the The range includes 8g foil-wrapped convenience of a spread. portions, as well as larger variants such “The retail market picked up on this as 250g blocks and 250g and 500g trend 20 years ago and now less than rounds. 20% of the retail trade buys standard The Président name also extends to block butter. This trend is starting to brie and camembert cheese. emerge in foodservice, with more Referring to the cheese market, chefs demanding spreadable formats. MacFarlane says: “Strong demand for “C&C/wholesalers need to ensure new taste experiences and ingredients their spreads offering reflects current with provenance has encouraged chefs customer and consumer demands. to extend their cheese repertoire and Customers are increasingly looking for the ways in which they incorporate more buttery tastes and spreadable cheese into their menu. textures, in a convenient, consistent, “As a result,” he adds, “there is real versatile and reliable format. opportunity for growth within the cate“The unique characteristics of the gory for those cash & carry/wholesalers Kerrymaid dairy solutions range prooffering a range to gratify this growing vides quality tasting and great-looking demand.” food, which makes for a more visually The company’s Seriously Strong appealing menu item.” Cheddar is said to be the leading brand Last year, Kerry launched a range of in the extra mature, vintage and farm‘Versatile and consistent’ grated ingredients for caterers seeking house Cheddar category, with a market ‘a great-tasting grated that is versatile share of 24% (source: ibid). and consistent’. Says Richards: “These are designed for Also part of the Lactalis McLelland stable is Galbani Italian easy and even distribution with minimal clumping and reduccheese. This year, two new variants were added to the range, ing back-of-house labour. specifically for use on pizzas: Mozzarella Cubetti, in 2.5kg “Kerrymaid Grated promises less starch and a more plastic trays, and Mozzarella Optima, a grated product that ‘freshly grated’ texture. It can drive growth in the category, allows chefs to use up to 20% less cheese to cover the same adding value to chefs and C&C/wholesalers alike. By solving surface area. this issue we expect that over 70% of chefs will buy into the The portfolio also includes The Lubborn Creamery’s grated cheese category over the next two years.” Somerset range of soft mould cheese and Capricorn goat’s cheese.

Unsalted butter rising

• • • • •

All data Nielsen unless shown.

Complete dairy range “Chefs choose Kerrymaid for peace of mind that they are using the dairy range that not only performs above expectation, but also delivers the exceptional creamy taste of true Irish dairy,” says Kerry Foodservice’s commercial director Will Richards.


• Cash & Carry Management • July 2012

For further information: Adams Foods (01538) 399111 Dairy Crest (01372) 472200 Kerry Foodservice (01784) 430777 Lactalis MacLelland (01737) 783300 Robert Wiseman Dairies (01355) 244261 Unilever UK (0800) 731 1597

products & promotions For foodservice

Film partner

MARS – Dolmio has beefed up its foodservice range by launching a pair of lasagne sauces: tomato and creamy. Sarah Gray, marketing manager, said lasagne sauces were the most requested NPD in foodservice, adding that the new products were “more than just a red and white sauce. “The Dolmio tomato sauce, which is 76% tomato-based, builds on the success of our best-selling Bolognese and tomato & basil sauce, but is smoother in consistency to make it the ideal component in building up this classic Italian dish. “The creamy sauce is not just any old white or béchamel sauce, either. It is ultra-versatile and can be used in everything from cauliflower cheese to salmon filo parcels.” Both sauces for lasagne come in 2.18–2.28kg jars and they have a 12-month shelf life They are also suitable for gluten and wheat-free diets. Tel: Mars Foodservice (0800) 952 0011.

GLAXOSMITHKLINE – Two new toothpastes are Sensodyne Repair & Protect Extra Fresh (75ml, £3.99 rsp) and Sensodyne Repair & Protect Whitening (75ml, £4.29), targeted at 25-44 year olds. They are extensions of the Repair & Protect product which was introduced last year. Since then, it has attracted almost 1.5m households (Kantar Worldpanel 15/4/12) and is worth £10m in the UK, achieving a 2.7% share of the total toothpaste market (Nielsen). Also being launched are three Sensodyne toothbrushes: Precision Medium, Precision Soft and Daily Care. The two new toothpastes are being supported by a £7m campaign, including tv, outdoor, press, online, in-store and PR. Tel: GlaxoSmithKline Consumer Healthcare (0800) 783 8881.

‘You can’t beat it’! COTT BEVERAGES – Old Jamaica ginger beer is embarking on a major marketing drive utilising a seven-figure budget. The ‘You Can’t Beat An Old Jamaican’ package includes Facebook applications, tv advertising, PR and a sponsorship package with Comedy Central, expected to reach 39 million viewers. The campaign will provide members of the public with an opportunity to win a starring role in one of Old Jamaica’s idents as part of the television sponsorship. The tv activity includes six new commercials, which will air until September on channels including ITV1 and Channel 4. Tel: Cott Beverages (01509) 674915.

Dual capsule JTI – The tobacco supplier has announced the latest addition to the Benson & Hedges range: B&H Dual (rsp £6.93). The new capsule cigarette, which provides smokers with ‘an alternative fresh taste’, follows the introduction last year of Silk Cut Choice in a capsule format. Head of communications Jeremy Blackburn said that in just over four months (December 2011 to March 2012), the capsule segment of the UK market has generated over £3m in retail sales. He added that B&H Dual offers existing adult smokers “an on-demand fresh taste, using the innovative capsule system”. The B&H sub-premium house is said to be worth over £422m in annual retail value (Nielsen market track MAT 12.2.12) Tel: JTI (0800) 163503.

In Hyde Park CADBURY – The official treat provider for the London 2012 Olympic and Paralympic Games will be bringing ‘Cadbury House’ to Hyde Park as part of the BT London Live experience throughout the Olympic Games. From 27 July until 12 August, there will be a free interactive experience that will ‘bring the magic of Cadbury to life right before your very eyes and celebrate the magical, mythical world of Joyville, where Cadbury Dairy Milk comes from’. The campaign, appropriately, is being spearheaded by former Olympic javelin thrower Steve Backley, who is highlighting the importance of alternative ways to experience the Games in the host city. He said: “There are many different magical experiences that form part of ‘Cadbury House’, but the one I am most excited about is the Great Games Zone, where people will get the chance to try their hand at a number of sports with a Cadbury twist.” ‘Cadbury House’ forms part of BT London Live, a partnership between the Mayor of London, the royal parks and the London Borough of Tower Hamlets. Tel: Cadbury (08702) 400861.

Fairtrade extends MARS CHOCOLATE – The first packs of Fairtrade certified Maltesers are now available as the latest step in the company’s commitment to source its entire supply of cocoa from sustainable sources by 2020. The manufacturer has now met its goal of purchasing 10% of its total cocoa supply as certified sustainable, and this year it will exceed its original target of 20%. Tel: Mars Chocolate (01844) 262517.

Cash & Carry Management

• July 2012 • 53

products & promotions ‘Compact’ style

Limited edition

IMPERIAL TOBACCO – Richmond Profile is the latest company innovation. The cigarettes, described as ‘compact’, are designed for the ‘modern, busy consumer’. ‘Compact’ cigarettes are king size in length, but with a smaller diameter, and are offered at a lower rsp: £6.50 for 20. Price-marked packs with the same price are also available while stocks last. Amy Kiss, head of consumer marketing, said: “Since January this year, sales of ‘compact’ sized cigarettes have tripled (internal estimate). They provide tobacco shoppers with an alternative to king size cigarettes. “Growing numbers of retailers across the UK are recognising the evolving trends within the category, resulting in more extensive ranges containing differing brands and cigarette sizes.” Tel: Imperial Tobacco (0117) 963 6636.

SCANDINAVIAN TOBACCO GROUP – Limited-edition designs have been introduced for Henri Wintermans Half Corona (rsp £8.44) and Corona De Luxe cigars (£4.25) to celebrate this year’s big events. The two new designs illustrate the London skyline, featuring landmarks such as the London Eye and Wembley Stadium, as well as a Union Jack design in the brand’s trademark red colour. Head of marketing Alan Graham said: “There’s a natural increase in cigar sales over the summer period as the weather warms up and more social occasions are enjoyed outside. These designs will appeal to those that enjoy a cigar in the sunshine.” Tel: Scandinavian Tobacco Group UK 020-8731 3400.

Improved format BERNARD MATTHEWS FOODSERVICE – The format of one of the company’s most popular roast dinner products in the Big Green Tick range of British turkey cuts and ingredients for schools has been changed. Cooked Sliced Turkey Breast in Stock now offers improved portion control for educational caterers. Each pack contains a minimum of 20 slices per 1kg, with each slice (average weight 38g) a consistent size and shape. Low in saturated fat, each turkey breast slice is claimed to be made from fully traceable British turkey. General manager Duncan Marsh said the improved product will be available from next month in time for autumn/winter menus. Tel: Bernard Matthews Foodservice (0845) 519 4097.


Syrup addition UNITED BISCUITS UK – McVitie’s HobNobs now includes a dash of Golden Syrup. The new style comes in a 300g roll wrap with an rsp of £1.36. Sarah Heynen, marketing director of sweet biscuits, said: “We’re sure that this new recipe will help drive sales for retailers in the everyday biscuits segment, which is currently worth £320m and is growing by 7%.” Tel: UBUK 020-8324 5000.

Three toppings GENERAL MILLS UK – Mexican food brand Old El Paso has launched a trio of toppings: chunky salsa, cool soured cream and chunky guacomole. They come in a 300g squeezy dispenser (rsp £1.99). The brand, which claims leadership in the UK for Mexican dinner kits, spice mixes, salsa and tortillas, is supporting the launch with a marketing campaign that includes tv and press advertising. Old El Paso is featuring in-pack coupons to encourage consumers to try the new squeezy toppings. It is also giving away samples online and the brand’s presence will also be seen in theme parks, university canteens and retail stores. Marketing director Ed Culf said: “Mexican food is more than ever making its way onto dinner tables across the UK, with the category having grown by 5.9%. Old El Paso has penetration of 26.9% and value sales of £78.4m.” All data IRI/Kantar 17.3.12.

Tel: General Mills UK (01895) 201367.

• Cash & Carry Management • July 2012

Tv ad drive MILLER BRANDS – A tv ad campaign has been launched for Miller Genuine Draft. It features a new creative that builds on the ‘Tonight, It’s Miller Time’ drive. As part of the support package, the brand is also sponsoring four MTV channels. Lucy Jordan, director of customer marketing, said: “Miller Genuine Draft is the second biggest packaged lager in the Scottish off-trade (Nielsen Scottish off-trade year to 24.12.11). It is a premium beer for fun-loving people who are drawn to the energy and potential of their city at night.” Tel: Miller Brands (01483) 264118.

products & promotions 10 years later...

Household lines

GLOBAL BRANDS – The company is taking the drinks industry ‘back to the future’ by relaunching Hooch. Hooch Alcoholic Lemon Brew is back on the market almost 10 years since it was last available in the UK. The brand, which includes fruit juice and is renowned for its sharp lemon taste, features the tagline, ‘Refreshment with Bite’. The drinks supplier has signed a licensing agreement with Molson Coors Brewing Co to distribute the drink (4% abv) in the UK. Available in 500ml bottles, Hooch Alcoholic Lemon Brew – designed to be served over ice – is seen as a competitor to fruit beers and ciders. It is targeted primarily at 18 to 35 year-old males. Marketing director Simon Green told Cash & Carry Management: “For retro brands to be relaunched successfully, they must draw on positive associations of past times by retaining the brand’s authenticity, while also connecting with today’s consumers who are seeing the brand for the first time. “Hooch delivers on all points as it has a loyal following, and the new, ‘over ice’ serve is popular with the current generation of drinkers.” Tel: Global Brands (01246) 216000.

CHALLS INTERNATIONAL – The producer of ‘high performance’ specialist household cleaning products has launched three additions: Bin Buddy wipes, kitchen Bin Buddy and Bin Buddy disinfectant spray. The wipes are claimed to be able to kill 99% of bin germs and bacteria, including E.Coli, listeria and salmonella, and remove stains such as dried food, tea and coffee. The 40 wipes are infused with a citrus fragrance. The kitchen product acts as an indoor bin freshener, destroying germs and getting rid of nasty bin smells, while the disinfectant spray can be used in outdoor and indoor bins. Spokesperson Louise Turpin said: “We are supporting the launch of the range with a national advertising and social media campaign showcasing the products to households up and down the country. “Running until October, we are confident that the activity will boost awareness and deliver incremental sales and profit.” Rsp for the existing product Bin Buddy as well as kitchen Bin Buddy, wipes and disinfectant spay is £2.49. All are available nationwide from this month. Tel: Challs International (0870) 603 0420.

How it’s made AB-INBEV – Budweiser has launched an initiative called ‘Track Your Bud’, which enables consumers to trace the journey of the drink from the first grains of malt and rice to the final pour. A bespoke website has been created – – showing the story and care taken in the brewing process. Tel: AB-InBev (0870) 241 7670.

Larger bottle ACCOLADE WINES – Alcoholic ginger beer, Stone’s Ginger Joe, now comes in a 500ml bottle (rsp £2). The new format is set to support the b r a n d ’ s growth in the on and offtrade. The target age group is 22-30 (men and women). The drink already comes in a 330ml size. Backing the launch is sampling at a series of university balls. Tel: Accolade Wines (01483) 690000.

On the road again BACARDI BROWN-FORMAN BRANDS – Southern Comfort has launched a new media partnership and summer campaign. It has joined forces with Bauer Media Group as it takes its experiental platform, the Southern Comfort Juke Joint, back on the road to some of the UK’s leading festivals. The partnership sees the drink teaming up with radio station KISS FM, the activity running across radio and digital channels in the summer and autumn. The brand’s marketing manager Gwen Ridsdale said: “We’re confident that the new sponsorship platforms will enable us to raise brand awareness among consumers.” Tel: Bacardi Brown-Forman Brands (01962) 762200.

In convenience HJ HEINZ – Soft drinks brand LOL, which is said to have enjoyed considerable success in Australia and New Zealand, has made its entry into the UK convenience sector. Aimed at teenagers, the lightly sparkling drink is a blend of 75% fruit juice and 25% carbonated water. With no added sugar and no artificial sweeteners, colours, preservatives or caffeine, LOL has an rsp of 99p and comes in a 250ml can, in three flavours: O Ranj (apple & orange), Razz Bri (apple & raspberry) and B Current (apple & blackcurrant). The soft drink is being sampled to over 300,000 teenagers during the summer. Tel: HJ Heinz (0800) 528 5757.

Cash & Carry Management

• July 2012 • 55

Refreshment with bite

Global Brands Ltd. 01246 216 000

Profile for Cash & Carry Management

Cash & Carry Management  

July 2012 issue

Cash & Carry Management  

July 2012 issue