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JULY 2013

Stock price-marked packs. Better value for your customers and more profit for you. Steve Ainger of First Choice on balancing retail and foodservice SWA and its members seek opportunities to add value

• PMPs are growing at 59% and now represent over a quarter of the market1 • 76% of people think PMPs improve a Convenience Store’s price image2

GROW YOUR SALES... ...STOCK PRICE-MARKED PACKS

Visit www.gsk.com

Blakemore buys Lowries and boosts presence in north east Spotlight on third-generation greengrocer Tony Reynolds

Nielsen Total Impulse, Total Drink Now, MAT to w/e 02/03/13 HIM Price Marked Pack Study 2011 LUCOZADE SPORT, LUCOZADE ENERGY and RIBENA are registered trade marks of the GlaxoSmithKline group of companies 1 2

The business magazine for cash & carry/delivered wholesalers


Energy – the fastest growing category, with stimulants driving growth


contents

Cash in while the sun shines Earlier this year I was discussing the prospects for this summer with the boss of one of the biggest wholesalers and he cautioned that 2013 did not have any big blockbuster sporting events compared to last year’s Olympics, or one-offs like the Queen’s Diamond Jubilee. The Olympics had actually been a damp squib as far as sales had been concerned, he said, and the weather wasn’t helpful for the long bank holiday for the Jubilee either, but big events have the potential to do wonders for sales in the drinks and catering categories. The other factor that gets products flying out of the depot is sunshine, but again there had been precious little last summer. If this was a developing climate trend, he warned, then another factor boosting sales for wholesalers and their customers would be missing. Thankfully though, at least for a week or two, everything seems to be going right. We’ve had dawn to dusk sunshine in many parts of the UK, the British Lions triumphed in Australia, and even the Scots who missed out on the sunshine could celebrate a home-grown winner at Wimbledon. And with the sunshine forecast to favour many parts of the UK for at least another week, the England cricket team will be expected to keep the feel-good factor going as they take on the Aussies. Times are still tough, with many consumers, retailers and wholesalers feeling the pinch, but let’s make the most of the opportunity while it lasts.

Parfetts’ income relating to Go Local is up 11.2% for the year to date ... see p.7

news

4–8

delivered

10

in focus

12

interview

14–16

country range conference

17

customer cares

18

swa conference

20–22

employment law

24

spotlight

25

information technology

26–30

dairy products

32–36

price-marked packs

38–56

products & promotions

58–59

Managing Editor

Kirsti Sharratt

Editor

John Wood

News Editor

Mervyn Gilbert

Features Editor

Amber Aitken

Media Sales Manager

Clare Phillips

Published by Winlove Publications Ltd PO Box 366 EAST GRINSTEAD RH19 4ZE Tel (01342) 712100

Business Development Manager David Ford

Fax (01342) 712101

Publishing Director

Email mail.winlove@btconnect.com

Martin Lovell

4,560 July 2011–June 2012 John Wood editor

www.cashandcarrymanagement.co.uk

ISSN 1352-254X

Cash & Carry Management is available on subscription at £52 per year (single copies £5). Overseas subscription: £80.

Cash & Carry Management

• July 2013 • 3


news IN BRIEF Care for needy GroceryAid’s Candy Ball, held in London last month, raised £170,000. Leading sponsors of the event, which was attended by well over 500 guests, were Hancocks, Mars UK, Mondelez International, Nestlé, Palmer & Harvey, Procter & Gamble, Reach Contact and CPM.

Sales head Neil Mercer, 41, former director of sales for brewer Charles Wells, has become sales director of Blakemore Trade Partners, in charge of independent SPAR stores in Wales, the Midlands, London and the south-east.

Close call! Three of Brakes’ telesales team were finalists in the CCMA (UK) call centre annual awards. They were: Pat Naysmith, Dawn Taylor-Goulden and Chris Amson.

Nappy range Booker has launched a range of Happy Shopper nappies (sizes from 3 to 6) in price-marked packs of £3.29. The POR is 30%.

Leeds event Today’s Group is holding its annual members and suppliers forum in Leeds on 24 and 25 September.

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The good news for JJ... While JJ Food Service will be disappointed to have lost the distribution contract for Innovate Services (see story below), it will have been heartened to gain two other major accounts. Wagamama has reappointed the Enfield-based wholesaler to handle food deliveries to its chain of around 90 UK Japanese restaurants, with more outlets planned. JJ was previously sole supplier for three years. The renewed deal – for an undisclosed sum and including

Approaching 100 outlets in the UK.

alcohol – is for a year. The second new contract – for three years and again undisclosed – is for the London Borough of Newham

and involves supplying frozen food to around 100 delivery points. Tel: JJ Food Service (08719) 730999.

...and the bad news Creed Foodservice has won a multi-million pound contract to become sole national foodservice supplier to school catering company, Innovate Services. The contract was previously handled by JJ Food Service for more than five years. Creed will supply frozen, chilled and ambient foods nationally across a network of 85 secondary schools, academies and colleges. The deal, it is claimed, will bring a number of benefits, including improved availability, greater food choice, a 60% cut in food miles due to the location of Creed’s depots and a reduction of C02 emissions. Derick Martin, co-founder and chief executive officer of Innovate Services, commented: “Not only do Creed offer an excellent range of fresh and frozen produce but the investment they have made into their distribution centres (based at Staverton, Glos, and Ilkeston, Derbys) and transportation means we

• Cash & Carry Management • July 2013

Chris Creed, head of Innovate’s new ‘partner’.

have better availability and delivery options. “I also liked the fact that they have grown from being a regional supplier to a significant national player, yet they retain the personal service and approach you would expect from a specialist supplier.”

The wholesaler’s managing director Chris Creed said: “Our team will be working with all areas of the business to ensure we can develop high quality products and supply a full range of items from our current range.” Tel: Creed Foodservice (01452) 857555.

Promising start Landmark Wholesale’s new financial year got off to a promising start, with May’s sales 10.1% ahead of the same month in 2012. This follows final results for the full year which were

up by 22.8%. Md Martin Williams said: “Our commitment to the independent sector remains as high as ever.” Tel: Landmark Wholesale (01908) 255300.

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news

NE growth for Blakemore Blakemore Wholesale has paid an undisclosed sum for north-eastern operator Lowries Wholesale. Both are longstanding members of Landmark Wholesale. The acquisition of the £25m turnover business comprises a 55,000 sq ft C&C and delivered depot in Killingworth, Newcastle upon Tyne, a 10,000 sq ft C&C in Hexham, Northumberland, and a 30,000 sq ft foodservice depot and C&C in Penrith, Cumbria. Blakemore Wholesale managing director Sam Wilcox said: “The forthcoming retirement of (managing director) Peter Lowrie has prompted the sale of the business. “We are very pleased to have acquired this excellent family company, which is a good fit with our own business and gives us an increasingly strong presence in the north-east.” Wilcox added: “The strength of Lowries is a credit to Peter, which he has run successfully for more than 30 years, and we wish him all the best for a long and happy retirement.” Blakemore Wholesale already has a presence in the

Retirement forces leading operator’s sale.

region with the Tyne Tees Cash & Carry depots in Gateshead and Middlesbrough, which were acquired in 2008. Excluding the Lowrie’s purchase, it operates 10 C&C/ wholesale branches. Parent company AF Blakemore has a staff of

7,500 people and turnover of more than £1.1bn. This includes its SPAR distribution franchise, foodservice distribution from Walsall and Wakefield and Blakemore Fresh Foods. Tel: Blakemore Wholesale (01902) 371515.

Tobacco for coffin! Martin Hill, a warehouse worker at Booker ’s Darlington branch, was given a 12-month community order, instructed to pay £300 compensation and £85 court costs and handed a £60 victim surcharge after pleading guilty to stealing £300 worth of tobacco from his employer over a nine-day period between March and April. It was said that Hill, 35, intended selling the tobacco to help pay for the costs of a family funeral. Tel: Booker Group (01933) 371000.

Healthy situation for DCS Beauty, household and health products wholesaler DCS Europe, of Stratfordupon-Avon, is set to complete its 20th year in business with record growth. Sales rose by 31% to £86m in the half year to June. Chairman and chief executive Denys Shortt OBE says that if the company can maintain this rate it will end the year on £194 million – up

£46m – and be well on target for its £200m goal by 2015. The wholesaler is busy fianalising plans for new 300,000 sq ft headquarters to

be built within five years and located a short distance from its present building. Tel: DCS Europe (01789) 208000.

Artist’s impression of the new hq.

Top changes in SHS Group SHS Group, which has considerable involvement with the C&C/wholesale channel, has made a number of senior appointments. Spearheading the changes, Peter Butler assumes the newly-created position of divisional managing director for the group, giving him overall responsibility for both the SHS Drinks Division, whose flagship

brands include WKD, Merrydown, Bottlegreen and Shloer, and SHS Sales & Marketing GB, which manages the sales, marketing and distribution of a range of leading products for brand owners such as Johnson & Johnson, Heineken, Douwe Egberts and Reckitt Benckiser. Marcus Freer, who was group sales director, succeeds

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Butler as md of SHS Sales & Marketing GB. As well as continuing to build the agency side of the business Freer will aim to forge closer working relationships with the drinks division to maximise opportunities for wholly-owned brands. The drinks division’s joint md Finn O’Driscoll becomes sole md. Fellow joint md

Karen Salters is moving to ‘a new strategic position’ within the group. Michael Howard is md of the SHS Group, half of whose £400m-plus turnover is currently derived from the sales, marketing and distribution of high street brands, the other half being generated by group-owned brands. Tel: SHS Group (028) 9045 4647.

Cash & Carry Management

• July 2013 • 5


news

Event a ‘huge success’ Landmark Wholesale’s San Francisco conference, titled ‘Customer Insight For Growth’, was attended by 230 delegates, comprising group members, industry leaders and suppliers. The line-up of speakers included The Rt Hon Ann Widdecombe, FWD chief executive James Bielby, head of the Association of Convenience Stores James Lowman, IGD chief executive Joanne Denney-Finch OBE, sales director of Unilever Food Solutions Chris Hales, him! managing director Tom Fender, JTI head of sales

Martin Williams addresses delegates.

Andy Stevens, Cott Beverages md Steve Corby, economics editor of the Sunday Times David Smith, Molson Coors Brewing sales director Nigel Tordoff and Mars Chocolate president Fiona Dawson.

Advice from Brakes Brakes is offering pubs support and advice on the food they serve with a newlypublished guide. The wholesaler has been working closely with publicans to identify the areas they find most challenging and thereby pinpoint what would help them to improve sales. More than 90% of the publicans who have fed back information to Brakes said they felt they could benefit from help and guidance from a major food supplier. Less than 20% said they felt they were fully maximising their food offer, despite it becoming an increasingly important part of running a successful and profitable pub business. Although the majority of publicans were confident about what they were putting on the menu, more than two-thirds said they struggled to keep the list interesting and innovative. More than a third found encouraging customers to

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Commenting on the event, Landmark md Martin Williams said: “It was a huge success. “Delegates left San Francisco inspired, having heard speakers talk about how we can achieve our growth agenda through customer insight into their changing needs in these times of austerity, and how best we can continue to offer them the very best value. “With the economy remaining tough, events like this provide a backdrop and framework for members and suppliers to address the issues faced by our Industry.” Group sales were up by 10.5% last year, with ownbrand 8% higher. Tel: Landmark Wholesale (01908) 255300.

Service with a smile.

buy food more frequently and attracting new patrons difficult. And three in five claimed that making their food profitable was a challenge. The Brakes guide not only deals with food and menu solutions but also advises on how to drive footfall. The company’s Pub Club members can log on to the wholesaler’s website where they can access a variety of information. Tel: Brakes Group (01233) 206000.

• Cash & Carry Management • July 2013

Today’s man Mark Bottomley has joined Today’s Group as licensed controller. He was previously retail club manager for Bestway Group (including Batleys) for six years and before that he was Batleys’ wines & spirits buyer. Tel: Today’s Group (0844) 247070.

Booker and M&S still on Despite cutting back on the selection of branded food products that it offers in its stores, Marks & Spencer has no intention of eliminating them completely, a spokesman for the retail chain told Cash & Carry Management. In conjunction with Booker, the company began a trial scheme three years ago to stock a range of around 100 branded skus. Said the spokesman: “While we certainly have fewer of these products available now – representing less than 1% of our food turnover – they will remain a small part of our business.” Clarifying the situation he said that where, for example, four and six-packs of Sprite had been available, there might now be one or the other.

One of the major branded items stocked by M&S is Tabasco Pepper Sauce made by the McIlhenny Co, of Avery Island, Louisiana. “This is largely because we do not have an own brand equivalent,” said the M&S spokesman. He added: “I must stress that, while we offer a small number of branded food products, we remain overwhelmingly an own-label operation.” Tel: Marks & Spencer (0845) 609 0200. Tel: Booker Group (01933) 371000.

www.cashandcarrymanagement.co.uk


news

Retail contract is split The Martin McColl retail chain has changed its distribution arrangements, the business now being split between Palmer & Harvey and Nisa. The change means that P&H, which previously handled the whole contract, delivering to 670 c-stores, as well as 595 newsagents and variety outlets, will forego responsibility for 330 of the c-stores. These will switch to Nisa over the coming six months. The five-year deal is understood to be worth around £1bn to the Scunthorpebased group. Martin McColl chairman and CEO James Lancaster said: “We believe Nisa’s emphasis on quality fresh and chilled food, together with their wide range of ambient and chilled ownlabel products, will enhance our convenience store offering to existing customers,

attract new customers and significantly increase sales. “We believe that this is the right time to review our supply arrangements and take this step forward.” James Roberts, Nisa’s head of commercial operations and member service, commented: “We very much look forward to developing our service to the stores covered under this agreement. “Our extensive product range and well-established Heritage own-label means we are well placed to provide an unrivalled service to McColl’s larger c-stores.”

Tighter family control Nicky Whitechurch (below) has become sales & human resources manager of J&R Food Service, of Exeter. The wife of managing director Jan Whitechurch, she originally joined the company in 2003 as an area sales representative. Now, with fewer family commitments, she has been able to return to work.

In another recent appointment, Peter Barnes has been named as finance director, adding to his role as company secretary. He is the son-in-law of chairman John Whitechurch and wife Jill. The changes have been made in preparation for John’s coming retirement. J&R, founded in 1980 and in the Whitechurch family control since 2003, has been a Sterling Supergroup member for 12 years. The company has a turnover of more than £10m and a payroll of around 80. The family also owns Tregida Smokehouse in Launceston. Tel: J&R Food Service (01392) 445510.

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Andy Maclay, director of sales (distribution) for P&H, said: “We are delighted that Martin McColl has opted to retain us as distribution partner for the majority of its stores, supplying ambient, chilled and frozen products.” Tel: Martin McColl (01277) 376374. Tel: Nisa (01724) 282028. Tel: Palmer & Harvey (01273) 222100.

Scottish growth Brockmans 40% abv gin has added Elgin-based wholesaler Gordon & MacPhail to its list of stockists in Scotland, which already includes Dunns Food & Drink, Filshill, Forth Wines and Wallaces Express. Booker has increased its coverage of the drink from 23 to 54 branches. Tel: Brockmans 020-7101 9248.

Importance of Go Local Parfetts’ managing director David Grimes has been playing up the value of the Go Local retailer club and symbol group to the Landmark Wholesale member’s business. Over the past five years, the chain has seen a 127% increase in sales. Grimes said that income relating to Go Local stores has risen by 11.2% (£3.3 million) for the year to date, while promotional extra sales have increased by 60% (£585,000). He told Cash & Carry Management: “It is very satisfying that, during challenging times for all in the sector, Go Local, with 1,000 stores in the north and Midlands, is performing strongly and, in the majority of categories, is in growth.” Tel: Parfetts C&C 0161-429 0429.

Drink and drive Tahir Mahmood, who trades as City Booze in Dundee, won a Ford van worth £12,000 in a Miller Genuine Draft promotion in Scotland. The activity ran in Booker’s 22 regional branches. Aidan Wilday, director of sales at Miller Brands, said: “Miller Genuine Draft is the

second biggest packaged lager brand in the Scottish off-trade (Nielsen Scantrack 30/3/13) and No.1 in the on-trade (CGA Scotland MAT 23/2/13). Tel: Booker Group (01933) 371000 Tel: Miller Brands (01483) 264118.

With the proud winner are Booker manager Richie Davie and Miller Brands executive Tom Slaven (left).

Cash & Carry Management

• July 2013 • 7


news

‘Our biggest and best’ Booker has launched what it describes as its ‘biggest and best’ Locked Down Prices campaign. Running until 10 September, it covers 150 products across the fresh, frozen, grocery and licensed categories. Among the branded lines are Hellmann’s mayonnaise (£21.49 for 10 litres), 1kg

Nescafé (£17.99), Coke Icon (£10.99 for 24 x 330ml), Walkers Grab Bags (£13.99), Laurent Perrier rosé (£29.99) and kegs of Carlsberg (£85) and John Smith’s (£89). The list also includes ‘gourmet’ burgers (£23.99 for 24), BBQ spare ribs (£2.50), pork sausages (£4 for 1kg) and pre-sliced Scotch beef steaks (£18.99 for 1.75kg). The C&C/wholesaler’s Chef’s Larder range features

chocolate fudge cake (£5.74), fresh double cream (2.27 litres at £5.85) and UHT whipping cream (£2.65 per litre). Sales director – catering Stuart Hyslop said: “Having price stability gives our customers confidence that they can set their menus and make strong margins by shopping at Booker.” Tel: Booker Group (01933) 371000.

Cost guide for caterers

Hyslop: importance of price stability.

Booker has launched the second edition of its All About Food book to help catering customers devise their menus. Available in the company’s branches, the guide includes the cost and rsps

of hundreds of dishes, as well as profit opportunities. There are sections on breakfast, kids’ meals, Mexican food, fish dishes and wine. Tel: Booker Group (01933) 371000.

Over 1,000 at BWG event More than 1,000 retailers from across the Republic of Ireland, with a combined annual turnover of 1.6 billion euros, descended on Dublin’s Convention Centre to see what 150 local and international suppliers had to offer in the country’s largest retail trade show. The trading day was arranged by BWG Foods, which operates the SPAR, EUROSPAR, MACE and XL brands, as well as 23 Value Centre C&Cs and a wholesale foodservice division. The show included stands of 44 new indigenous Irish companies who have become listed BWG suppliers since last year’s event. Managing director Willie O’Byrne said: “This is the third successful staging of

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BWG’s Leo Crawford (left) and Willie O’Byrne show their approval of this fish display.

our trade show, an event which has established itself firmly in the retail calendar as the industry’s leading retailer-supplier showcase.” It was announced that this year will see the opening of 80 new stores. BWG Foods group chief executive Leo Crawford said:

• Cash & Carry Management • July 2013

“There has been significant investment over the past year in our supply chain and chilled distribution channels. Our stores (around 900, covering more than 350,000 sq ft) are a good barometer of the local economy.” Tel: BWG Foods (003531) 409 0300.

CBE for Agnew

In last month’s Queen’s Birthday Honours List, John Rupert Henderson Agnew (above), chairman of Northern Ireland SPAR wholesaler Henderson Group, received a CBE for services to business and charity. Also honoured was Phil Orford, chief executive of the Forum of Private Business, which is based in Knutsford, Cheshire. Established in 1977 by Stan Mendham – who later received an OBE – the organisation acts for small and medium sized businesses. It is currently working with the Association of Convenience Stores on the Labour Party’s ‘Small Business Saturday’ initiative, which is being held on 7 December. Tel: Henderson Group (02890) 342733. Tel: Forum of Private Business (0845) 130 1722.

Chef approval A further 14 of 3663’s ownbrand products have gained accreditation from the Craft Guild of Chefs, making 64 in all. They include Somerset Brie & Beetroot Chutney Tart, Irish Stew with Dumplings and Apple, Kentish Cider & Butterscotch Pudding. Tel: 3663 (0370) 3663 000.

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TEXT

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Tobacco smugglers stealing your business? If so, contact: Customs Hotline 0800 59 5000 Terms & Conditions: 1. The promotion is open only to independent retailers based in the United Kingdom who are responsible for making decisions regarding the purchase of tobacco products for a business and are aged 18 years or over. It is not open to members of the general public, employees of the Promoter and their families, the Promoter’s agencies or their employees or anyone else professionally associated with the promotion. Entrants should ensure that they have their employer’s or senior manager’s permission to participate and must have permission from the business proprietor to claim. 2. There are 32 prizes to give away in total: 2 x Neon Signs, 10 x 16GB Ipad 2 and 20 x Bose® SoundLink® II Wireless Mobile Speakers. 3. To enter please text MAYFAIR to 61144. Texts cost one standard rate text message or are part of your free text bundle. Texts received from 61144 are free of charge. No purchase is necessary to take part in the promotion. 4. Limit of 1 entry per mobile number per day. Maximum one prize per person. Entrants who do not give correct details or those who make an entry on someone else’s behalf will be disqualified. 5. The prize draw will be held at 5pm on Friday 30 August 2013. All valid entries received at that time and date will be entered into the prize draw. 6. For full terms and conditions please contact the Gallaher Customer Careline on 0800 163 503 quoting Mayfair Pump Up Your Volume Prize Draw 7. Promoter: Gallaher Limited, Members Hill, Brooklands Road, Weybridge, Surrey, KT13 0QU.


delivered

Three golds for Brakes Brakes was the only company to win three golds at the British Frozen Food Federation’s annual awards presentation in London last month. Its prize tally also included a silver. The wholesaler’s Pulled Pork came first in the new main course/meal centre product – traditional style cuisine category; its Sweet Chilli Chicken Snack Box was top in the main course/meal centre product/international cuisine section; and in the new meat-free/vegetarian product category, Brakes’ Asparagus & Pea Girasole took gold and its Vegetable

Chow Mein Snack Box won silver. Category merchandising director Heidi Easby commented: “Quality food is the foundation of our business and we are dedicated to deliver innovative products that meet the ever-changing and diverse requirements of our customers. “To win three gold awards – and be the only company to do so – is a fantastic achievement and a glowing endorsement.” Country Choice, part of the Brakes Group, and a supplier of in-store bakery and retail foodservice products,

Easby: ‘Quality food is the foundation of our business.’

took bronze in the new bakery/pastries product category. Tel: Brakes Group (01233) 206000.

Plenty on offer at P&H event Palmer & Harvey, which has just completed a three-week cider festival, was able to offer customers a range of deals, including a saving of £3.90 per outer on certain products. Brands featured included Bulmers Pear and Original, Brothers Strawberry and

Toffee Apple, Stella Cidre Pear, Carling British Cider, Kopparberg Strawberry & Lime and Mixed Fruit, Rekorderlig Apple & Blackcurrant, Mango & Raspberry and Strawberry & Lime and Somersby cider (Carlsberg UK). Commenting on the

event, Claire Mason, P&H alcohol category development manager, said: “The cider festival provided retailers with the opportunity of taking advantage of the trend for drinking cider over ice in the summer. “The promotional offers allowed them to achieve more than 15% profit on return on key cider lines.” Tel: Palmer & Harvey (01273) 222100.

CRG extends own-label range Country Range Group has introduced two 100% pure fruit juices from concentrate – Orange Squeeze and Press Apple. In 200ml cartons (cases of 27), they join the group’s Front of House portfolio. Brand manager

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Martin Ward claimed that the new drinks “look much more attractive than competing brands and are more cost-effective for caterers at leisure sites and pubs”. CRG has also launched a selection of 11 chicken products. These include

• Cash & Carry Management • July 2013

Steam Cooked Chicken, Chopped & Shaped Chicken, Cooked Wings and Whole Muscle Chicken Breast. Ward said: “According to Mintel, the UK poultry market is expected to grow by 17% to £3.3 billion between 2010 and 2015, with this figure largely reflecting chicken.” Tel: Country Range Group (0845) 519 6181.

Expansion continues Fairway Foodservice, which recently launched a range of spices and herbs (Cash & Carry Management last month), has also introduced a selection of condiments and sauces as part of a 300 product expansion within its ambient food portfolio. They include 70% Premium Real Mayonnaise, Tomato Ketchup, Sticky BBQ Sauce, Dijon Mustard, Sweet Thai Chilli Sauce and Horseradish Sauce.

Chris Binge, group CEO, said: “We aim to provide high quality products which are benchmarked against leading brands to ensure that we are delivering on price.” Tel: Fairway Foodservice (01422) 319100.

N Ireland food show SPAR Northern Ireland marked its strong ties with local fresh food suppliers at the 2013 Balmoral Show held in Lisburn, Co Antrim. The event was attended by executives of the symbol’s regional wholesaler Henderson Group, including fresh foods director Neal Kelly and fresh foods trading controller Nigel Dugan. Patrick Doody, the wholesaler’s sales & marketing director, said the company had been been supporting local sourcing and provenance for over 100 years. Tel: Henderson Group (028) 9034 2733.

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in focus

Togetherness is the way forward Mervyn Gilbert meets Sud Patel, managing director of Bolton cash & carry/ wholesaler Turner & Wrights. ‘Strength in numbers’ is a term that is uttered by Sud (short for Sudhir) Patel, when asked about the success of one of the leading dual-purpose operators in the north-west. As managing director of Turner & Wrights, a longstanding member of Today’s Group and of Sugro, which it joined in 2000, he runs a £65m turnover business, which last year saw takings grow by 10%. It’s a progression that is destined to continue with the ambitious programme mapped out by Kitwave, the company which has been its parent since 2006 and which now has six constituents, including four other Sugro affiliates. “The advantage of being owned by Kitwave,” says Patel, “is that we can buy in greater bulk and obtain better deals. It’s a case of strength in numbers.” The purchasing benefits will grow even more if Kitwave carries on expanding. The two most recent additions, Teatime Tasties and Automatic Vending, became part of the group within the past 18 months and there is no reason to suppose that other wholesalers won’t join them in the foreseeable future, adding to Kitwave’s total income of around £200m. Patel is a prime example of someone who has risen from the shop floor to become top man. Aged 39, he joined the company 16 years ago – his first job – after reading business information and technology at Preston University. He is quick to tell you that he only spent a year at the educational establishment, suggesting that he was itching to make money rather than gain a degree. “The job was advertised in my local job centre,” he says. “I started by filling shelves and sweeping up. They certainly wouldn’t let me near the till!” A major promotion came in 2005 when he became senior buyer, and last year he was appointed managing director after his predecessor, John Hope, was named Kitwave operations director. Among the 72 staff reporting to him are assistant md Bob Fife, sales manager John Shaw and operations manager

Company background In the ‘80s, Bury entrepreneur Steve Turner began a small wholesale business called Five Star Foods. In 2001, he acquired the assets of Wrights of Horwich, a long-established drinks wholesaler, which had gone into liquidation. In the same year, Turner relocated Five Star Foods to Bolton and changed the company name to Turner & Wrights.

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• Cash & Carry Management • July 2013

Sud Patel checks a Turner & Wrights promotional leaflet.

Martin Gilmore. Another colleague is David Udall, who is Kitwave’s financial controller, but who spends most of his time at T&W’s site. The wholesaler has undergone a series of changes since its founding (see background below), assuming its present title after the turn of the century. Dealing in ambient food only, its major categories are soft drinks, alcohol, crisps, confectionery and tobacco. The 35,000 sq ft depot operates partially as a cash & carry, from which goods are picked for delivery. C&C accounts for just 10% of the turnover and delivered wholesale the rest. The minimum drop is 25 cases. All 2,000 customers are retailers, including just over 100 who belong to Sugro’s Sweetbreak club, through which they can receive planograms and special deals every six weeks, as well as standard promotions. C&C/wholesale opposition in an area stretching from Carlisle in the north to Telford in the south, plied by T&W’s 17 vehicles (including vans and 26-tonners), include Booker, Bestway, Parfetts and Palmer & Harvey. While Patel says he can live with most of the tobacco problems – “they’ve been around for such a long time” – he is more vocal when it comes to the matter of alcohol duty fraud. Asked whether trade bodies have made an imprint on the situation, he replies: “I don’t think they’ve made a great deal of difference.”

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interview

Aiming to live up to its name Steve Ainger, managing director of First Choice Wholesale, tells John Wood how his company has managed to increase deliveries to both independent retailers and foodservice customers. Like many other businesses in the cash & carry and delivered wholesale sector, Burton upon Trent-based First Choice Wholesale Foods started out as a family-owned retail business. Now a company involved in cash & carry and delivering to both retailers and foodservice customers, it was formed in 1968 by Eddie Ainger, father of the current managing director Steve Ainger, and his brother-in-law Arthur Taylor. Shortly after establishing the business they were joined by Eddie’s brother Graham Ainger. Steve explains: “They started off with one retail store and dad and Arthur used to work the markets – Burton and Bolsover – in the days when markets were thriving.” As the business prospered they opened more stores. By 1980 they needed a warehouse to service their estate because they started getting more direct accounts, and they decided to make it a cash & carry to serve other shops in the region. In tandem with the retail operation, the cash & carry business grew and in 1988 they opened a delivered operation supplying retail stores. Ainger says: “The retail stores were turning over about £15m by the time we got to 10 in 2004. We built three new stores between 2000 and 2004 so at that time we had no intention of selling the retail business. “But it was the period when the multiple retailers were starting to be interested in moving into smaller stores. We

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had three of them all wanting to buy our stores, and it came at the right time in life for my father and his partners.” The three of them sold the stores to the Midlands Co-operative Society and retired, and that’s when Steve and Nick Grantham, his business partner and now the company’s buying director, decided to take on the wholesale business. Initially things did not go well. With the loss of the retail business, turnover dropped dramatically to £8m and the partners looked for ways to replace the lost sales. “We tried a couple of things in the cash & carry – not very successfully,” says Ainger. “We tried to do non-food and we tried to be a mini Costco but it didn’t work that well.” However, they then looked to the delivered side and took on three retail reps. Within two years they had doubled turnover to £16m. Ainger says all the growth was down to deliveries to independent stores. But while the retail side of the business was flying, another part began to fade. He explains: “At this stage we did a bit of catering and we delivered to a few nursing homes almost by accident really, but while we built up retail the foodservice element was going backwards and we’d started to lose a few of our caterers to other more competent foodservice wholesalers. “So up to 2010 we had fairly steady growth as a business, but foodservice was going nowhere and that’s when we decided to look at it carefully. We got a lot of help from other

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interview wholesalers, and in particular from Malcolm Baker at MJ effort went into launching the foodservice business. It was a Baker. We realised that if we wanted to do foodservice much different proposition to what we thought it would be, properly, we had to compete with the really large players. both in potential and also in the attention to detail. While we “We did it in stages. We took on a completely new range, were building foodservice, our retail business started to slip changed our minimum drop from £500 to £50, and back, which was the main reason for our move to the redesigned the logo and all the branding on the vans, overLandmark Wholesale group in January this year. alls and invoices.” “Once we had foodservice launched, we had a close look Within 18 months foodservice turnover trebled and then at the retail operation, which included going out and talking they began talking to the Fairway Foodservice group and to our top retailers. The message that was coming back was decided to join in 2011 and introduce frozen food. “We built pretty loud and clear. It was that our retailers didn’t think our a 100-pallet space freezer,” says offer was strong enough, particuAinger. “We were told it would be larly with own brand, which had too small, but at that time we become so vital in our sector and didn’t have a box of frozen food to also in symbol development. sell to anybody. We are now doing “We had a lot of good years £500,000 a year and we are with the Today’s Group but our extending the freezer to take 300 needs had changed and it was the pallets.” own brand that was the encourSteve Ainger, managing director, In addition to the freezer, the agement to speak to [Landmark First Choice Wholesale company bought five multi-temmanaging director] Martin perature vehicles and separated Williams. Since we joined in the retail and foodservice interests. Ainger says: “We are January the attention to detail and the way the package is put almost running two separate businesses now because their together – the own brand, the cashback, the fascia/symbol needs are so different, although we have some shared overand the Counter Attack promotions – have all been huge heads. The more we have separated, the more we have been improvements. able to focus on the two businesses, so much so that we’ve “We have rapidly clawed back that turnover and we are even separated the telesales office and the sales teams. starting to get in a position of growth again. We have just put “We are all in the same building, but basically foodservice our 32nd Lifestyle Express fascia up.” First Choice also runs is picked into one area and retail into another. One goes out its own retail club, with about 120 members who receive free of one door, the other goes out of another.” point of sale, free leaflets and enhanced prices. One of the changes caused by the foodservice expansion Overall the company has about 400 retail customers it was an increase in the range of stock. Ainger says: “With delivers to, and its catchment area runs as far north as both sides of the business there is a fairly wide product Sheffield, to Stratford in the south, east as far as Grantham range, and we have seen how different delivered foodservice and to Stoke-on-Trent in the west. is to cash & carry catering. When we launched foodservice Ainger is excited by the opportunities Landmark memwe put in 3,000 new products, and we stock about 7,000 bership has brought. He adds: “The Counter Attack threeproducts overall. “ weekly promotions have worked well. We do a limited numBut with so much focus on the foodservice side, the retail ber of our own local promotions – we do a few local booze arm then began to suffer. Ainger says: “A lot of time and deals and one-week specials – but with the retail club and Counter Attack there is already a comprehensive promotional package that does the job.” Just six months after joining Landmark, First Choice is already a top 10 member in terms of own-brand sales. Ainger comments: “It’s mostly on the retail side – there are some deals that that fit foodservice as well such as the 1.5-litre spirits and singleserve wines – but in the main it’s retail that is driving sales of own brand. “We’ve had excellent feedback from our customers on the move to Landmark and we have managed to keep all our symbol and retail club customers. We have set ourselves a target of 50 symbol stores by Christmas and we are confident that we can achieve that.” Managing director Steve Ainger Buying director Nick Grantham Other Landmark members have

‘In the last 18 months we have invested £250,000 and we’ve got to put the same in again now’

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Cash & Carry Management

• July 2013 • 15


interview also been very supportive, says Ainger. “When we joined we had help from Parfetts and we’ve had help all the way round. The family feel to the group fits into our organisation really well. The members share best practice, and we get over to see how they do things. In some cases we have been loaned some stock. If we have sold out of something we have had help from the guys at Parfetts.” Currently the company is turning over about £14m on delivered retail with another £3m in cash & carry, and approaching £3m in foodservice. However Ainger says: “That’s the split in turnover but it doesn’t reflect the profitability of each because the £3m of foodservice equates to about 40% of our gross profit, whereas the cash & carry is probably less than 5%.” Looking ahead Ainger says First Choice is aiming to hit £15m in delivered retail sales and £5m in foodservice sales by 2017, but he says those targets may need to be revised. “We are on £14m now for retail and the way we are going we might hit the £15m by Christmas this year. I’m very confident that foodservice will be a stand-alone business of £5m by 2017, but at the current rate of growth it will be before then too.” Coping with growth has required a fair amount of investment however. Ainger reveals: “In the last 18 months we have invested £250,000 and we’ve got to put the same in again now. The extension to the freezer alone is £120,000 and three new vehicles is another £170,000.” The new vehicles will be added to an existing fleet of eight retail and five temperature-controlled foodservice delivery vehicles. “The other big investment is in staff in order to cope with the growth. We’ve been playing catch-up to ensure the

service level remains where it needs to be. In terms of foodservice, our in-stock position is 99.7% and we pride ourselves on our service hitting time windows and delivering full orders.” When First Choice stepped up its foodservice business, it brought in a foodservice specialist in telesales and three foodservice specialist reps, including a former chef who can identify with customers’ needs and talk their language. Recruitment is not something the company has had to do too often though. Out of its 55 staff, half have been with the company for more than 10 years. Six have over 20 years’ experience on the shopfloor, and two have been there for 28 years. First Choice is also planning to upgrade its Sanderson computer system, but one option it has considered and had to shelve is radio-controlled voice picking. The company’s 33,000 sq ft warehouse is an old-style building which is full of metal girders, and these would disrupt the signals, so for the time being it is sticking with the old-fashioned picking system using written orders. However, other IT projects have progressed successfully. First Choice is just rolling out EPoS into retail stores and this provides customers with a link back to the cash & carry so they can download prices and promotions. And more than £5m a year is being taken through its online ordering service. The system provides day one for day two deliveries for retail customers, while for foodservice customers there is a 4pm cut-off for next-day delivery. With an eye to the way the wholesale sector is developing, and ensuring the company continues to live up to its name, Ainger says: “It’s a big part of the business and a part we need to develop further.”

First Choice is targeting £5m in foodservice sales by 2017.

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country range conference

All will be revealed! Delegates at CRG’s annual event heard a lot, but not quite everything. Perhaps it was the prospect of sun, sand and the seashore that attracted a record number of delegates – over 400 – to Country Range Group’s annual exhibition and conference, held last month in Brighton. But besides the weather, there was more they had come to learn about, particularly who was to succeed Colin Birchall as managing director, six months after he announced he would be stepping down from the post after several years in charge, becoming group chairman instead. If they were hoping to hear the name of the new md, they were unlucky. There was no official news of the identity of the man who is taking over, although he could easily have been wandering around incognito at Brighton. There was also a buzz among delegates as to what will be disclosed at ‘An Evening with Country Range’ event, which is being held in London on 4 December. Officially, it will be to announce details of the group’s restyled supplier awards and to unveil future plans. Apart from that, Birchall wasn’t giving anything away! Presumably by then, the new md will have made himself known to the 15 member wholesalers, who together operate 25 depots. There might also be an update on CRG’s involvement with Landmark Wholesale – a link established just over a year ago. Meanwhile, at the Brighton event, Birchall told guests that group turnover last year was £320m, with branded sales up by 21% and frozen food income by 27%.

New Scottish member A new member for the Burnley-based group is Dunns Food & Drinks, previously an affiliate of Fairway Foodservice. The wholesaler, which operates from a 70,000 sq ft depot in Blantyre, South Lanarkshire, services over 2,000 customers, has a turnover of around £21m and almost 100 staff.

Colin Birchall, in typically animated pose, addresses the audience at CRG’s annual conference.

The installation of a new computer system, planned refurbishment of the warehouse and office, plus additional trucks, could help the operator reach its next sales target of £25m. Dunns’ joining comes six months after that of Jerseybased Valley Foods and within a year of Caterfood in Paignton, Devon. The CRG exhibition attracted 90 suppliers – almost 20 more than last year – with Whitby Seafoods winning the prize for best stand. A main guest at the event was Caribbean food entrepreneur Levi Roots, who assisted group marketing & projects manager Coral Rose in presenting the member of the year awards. It was also announced that Damien Barrett, managing director of Henderson Foodservice in Newtownabbey, Co Antrim, has joined the Country Range Group board.

Award winners

• • • •

Best brand performance: Essex Foodservice Group Best own-brand performance: Thomas Ridley Foodservice Best group support: Birchall Foodservice Telesales focus team award: Ilfracombe Foodservice.

Levi Roots signs a copy of his book for one of the CRG delegates.

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Cash & Carry Management

• July 2013 • 17


customer cares

sponsored by

Very satisfied This month, John Wood is in Edinburgh to talk to traders about the wholesalers they use.

save 50p. There’s not much difference in the prices and most of the cash & carries seem to be the same. Both of them have some good promotions. We’ve got Booker’s Shop Locally and sometimes that does good offers such as two for £1 or three for £1.20. They are good for us and for the customers too.

Babu Abraham Janatha Food Store Wholesalers used: I usually use Booker and Bellevue Cash & Carry. Which one I go to depends on where the prices are best. I visit Bellevue most because it is nearest and its prices are very good. I go two or three times a week. Paul Davies has been using Batleys for 30 years.

Paul Davies Merchants Restaurant Wholesalers used: I mainly use Batleys Cash & Carry although I do source a few things from Brakes. I generally go to the Batleys depot about two or three times a week and it supplies a good proportion of my meat and dry goods. Plus points: Batleys is close to where I live so it is convenient and it has everything that I need. The staff have been there a long time – I’ve been going for 30 years. I know most of them by name and they are very friendly. Whenever the manager is in I have a chat with him. Also, because I have been going there for so long I have no problems finding what I want. It can get a bit busy but there are no queues at the tills if you know the right time to go. The rules are not to go on a Saturday morning or a Friday lunchtime.

Plus points: Every month Bellevue has some special promotions and it offers you a good deal on more cases. Bellevue staff are very friendly and helpful. I have been going for seven or eight years and I know them and they know me. Because I’ve been going for so long I know where everything is and they don’t move things around. At Booker some of the prices are not so good. Some are on offer and are very good, but generally Bellevue is better. Getting through the tills is also much quicker at Bellevue than at Booker. At Bellevue we can pay at the till, but at Booker we have to queue again and wait in line to pay. Suggestions for improvement: At Bellevue they don’t have some items I want, such as milk powder and Häagan-Dazs. Perhaps most grocers don’t need them. For these products I go to Alfa Cash & Carry in Glasgow. The managers at Bellevue have more freedom to take decisions than at Booker. If I ask for a deal on 40 or 50 cases the manager at Bellevue can give it to me, but at Booker the manager can‘t do it.

Raja Shafiq Elm Row Grocer & Off Licence Wholesalers used: I go to Booker and Bellevue. I like the Euroshopper and Happy Shopper own-label products at Booker and the Best-in products at Bellevue. It just depends on what is selling fast or what I need as to which one I go to, so I don’t have a main one out of the two. How often I visit depends on how busy we are. If we are busy it’s about two or three times a week. Plus points: I use those cash & carries because they are the closest to me. Bellevue is just down the road and Booker is a 10-minute drive. There doesn’t seem to be any point in going further to

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Babu Abraham wants managers who can do deals.

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swa conference

Inspiring Scottish wholesale Tackling challenges and seeking out new opportunities were recurrent themes from the speakers at the Scottish Wholesale Association’s recent conference in Crieff. “The Scottish Wholesale Association is an increasingly proactive organisation. We have a duty to respond to the many challenges and changes in the industry,” said George Benson, who hosted the annual conference as president before handing over the reins to United Wholesale Scotland’s managing director Asim Sarwar. The Association continues to focus on six key areas: the annual conference itself, the Scottish Wholesale Achievers awards scheme, liaison between suppliers and wholesalers, lobbying, legislation, and training & mentoring. After three years as president, the legacy Benson leaves to the SWA is the Mentoring Trust. “People are the lifeblood of our industry, which means that training and improving skills across the board are of vital importance to the future of wholesaling in Scotland,” he said. The first four mentees officially joined the Association’s mentoring programme earlier this year. They are Fiona MacFarlane from Forteith Foodservice, Stuart Harrison from JW Filshill, Paul Dickson from Booker and Waqas Khawaja from United Wholesale Scotland. Since then, they have had sessions with their mentors to set goals and objectives. They have also benefited from unlimited telephone support, allowing on-the-spot issues to be dealt with. One of the key learnings from the mentees’ training day was their total aversion to risk. “It is a specific intention of our mentoring programme to encourage our mentees to learn the benefits of risk-taking with the full support of their George Benson: ‘Training is of vital mentors and, cruimportance.’ cially, their line managers,” said Benson. “I believe it should be the role of all senior managers to instil the necessary confidence in staff to take carefully considered risks in pursuit of beneficial outcomes for the business.” Benson highlighted the implications of the SWA’s focus on staff development. “By mentoring and training our emerging talent we might just be able to hold on to them long-term and create the trust with our suppliers that will give us a competitive advantage.” He added: “As the Association moves forward, we are keen to forge new relationships with suppliers and strengthen existing ones.”

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‘A business worth fighting for’ Jeremy Blackburn (below), head of communications at JTI, congratulated the Scottish Wholesale Association for its efforts “in trying to establish some balance in the tobacco debate in Scotland” and for its production of a fingertip guide to the tobacco display ban. He added that, although the ban came into force in large Scottish stores on 29 April this year and the full implications are not yet known, the shift of smokers to smaller stores for their tobacco purchases has not happened to the extent that some forecasted. “The training of staff needs to be very informed. 30% of people will go elsewhere if you run out of stock of the brand they want. This has an impact on associated purchases, such as of drinks and snacks,” he warned. A brief respite from the onslaught of legislation occurred when the Plain Packaging Bill was not mentioned in The Queen’s Speech in May. “However, the antitobacco lobbyists are less than happy and will try to pressure the Government to put it back on the agenda. The issue has not gone away,” Blackburn pointed out. Another hurdle faced by the tobacco industry is the EU Tobacco Products Directive, a proposal published last December that advocates graphic health warnings and restrictions on the size of cigarettes and packs, as well as a ban on characterising flavours such as menthol. This legislation could come into effect as early as 2015. Tobacco Products Directive 2: Article 14 Track & Trace is also on the cards. “This would track all purchasers from the manufacturer to the first retail outlet and would mean a lot of admin. It isn’t something we need,” he said. Smuggling and cross-border shopping is as much an issue in Scotland as in the rest of the UK. In 2012, 12% of cigarettes avoided domestic taxes, up from 10% in 2011. For hand-rolling tobacco, the figure was 42%, down from 45%. A newer development, according to Blackburn, is retailers selling illicit cigarettes and tobacco from under the counter. “For me, that will drive a perception among consumers – they will lose trust in independent retailers – and it will drive business to the multiple retailers.” Concluding his presentation, he said: “We are at the edge of a tipping point with all this legislation. It is a business worth fighting for. Tobacco accounts for 40% of cash & carry sales and 29% of wholesale business in Scotland.”

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swa conference Reiterating the importance of suppliers AG Barr revised its strategy towards and wholesalers working closely together, the independent channel and he advised Al Gunn, sales director of Boost Drinks, other suppliers to do the same. “Tesco is said: “The results of a strong team are going to come into the high street and the always better than those of an individual.” independents will struggle without a level He added that all parties have to be playing field, so we need plans that create aligned to a common goal, there has to be this or even a field that tilts a bit.” open and honest communication, and Kemp also recommended adopting a needs have to be understood and met. For long-term view. “It took us six years to win its part, Boost Drinks only serves the indethe Achievers Best Overall Service award, pendent channel, not the multiples. and it doesn’t stop there. If, as suppliers, Gunn pointed out that sports & energy we all challenge each other, all our perdrinks is an £800m ‘super category’ in formances will improve.” Al Gunn: ‘The multiples can be beaten in convenience.’ impulse and is forecast to more than douAG Barr also decided to keep it simple ble in the next three years. Independents and fun. “The soft drinks industry is tough, are in a strong position to take advantage but it is fun. Keep a sense of perspective. of this as they overperform in sports & 2014 will be a great year for inspiring the energy drinks with a 70% market share. Scottish wholesale trade. The referendum Boost is the second largest stimulation will be a challenge but an opportunity as drink in independents and is now a £35 well. And we will have the Commonwealth million brand. Over 5.3 million cases were Games, the Ryder Cup and Homecoming sold in 2012, and the company has tripled Scotland. We will work with wholesalers its size in the last three years. “This shows on these opportunities. We know we have that you can be successful without giving to get better if we want to keep winning.” your life and soul to the multiples,” said John Forteith, general manager of Gunn. “Why do I love the independent Oban-based Forteith Foodservice, warned channel? Joint business plans are joint. both suppliers and wholesalers against You are dealing with empowered people basing their business solely on price. Jonathan Kemp: ‘We truly listened and looking to develop business together “There is a tendency to focus on the to our customers.’ in the long-term.” here and now, but people are spending He added that the company actively their money on quality. Having your USP engages with independent retailers and as price alone does you no favours and it wholesalers to talk about its business. It drives value out of the food chain.” has consumer focus groups and conducts Forteith had been considering how he trade-specific research. Boost Drinks also could make the business “stand out from has “case sizes that work and margins that the crowd” and in 2006 he made a breakmake sense, even on price-marked packs”. through. “I looked on my doorstep and “The multiples want to expand in conprocured all the venison I could from a venience but they can be beaten,” Gunn local gamekeeper. Before that, I sold less insisted. “This is an amazing channel, with than two tonnes of venison a year; now I great people in great companies who want sell over 20 tonnes annually under the to win against the multiples. We can all Wild Argyll Venison brand.” play our part, so please do not drop the The wholesaler also developed relabaton.” tionships with other local suppliers. For John Forteith: ‘Be brave. Explore new opportunities.’ Jonathan Kemp, commercial director example, it now sells and promotes Argyll of AG Barr, explained how the soft drinks hill lamb, Argyll pork, Argyll Angus and supplier has improved its relationship with the Scottish Argyll free range eggs. It also sells more than 150,000 bottles wholesale industry over the past nine years. of local ales annually. In 2004, AG Barr placed 10th in the Achievers Best Overall “We are trying to nurture provenance. It gives improved Service award. “We took a conscious decision to try to margins, increased sales and loyalty, and adds value down change that,” said Kemp. “We started by truly listening to our the supply chain,” said Forteith. “We have been successful customers to understand both the challenges and opportunibut it is high maintenance because some of the local proties. We got great feedback from retailers and the Scottish ducers have little knowledge of selling and marketing outside Wholesale Association. We were using McCurrachs at that auction marts and farmers markets.” time and we took the business back in-house because our He urged delegates: “Be brave. Explore new opportunicustomers wanted to see us face to face.” ties. Some of ours have been right under our noses.” He continued: “This industry is all about people and we Wine Importers is another business that firmly believes in wanted our employees to be passionate, committed and concentrating more on quality than price, said managing empowered. Now, we make heroes of them and celebrate director Billy Bell. The wholesaler stocks 1,200 wines at its success.” warehouse in Livingston and has a £5.5m turnover.

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Cash & Carry Management

• July 2013 • 21


swa conference A fascinating insight into wholesaling in India was given by Michael McCrosson, who spent nine months in Mumbai and three in Pune as operations manager for Booker before returning to Scotland to become area manager for the Longstone branch. McCrosson pointed out that the infrastructure of Mumbai is against deliveries – it has the same land mass as Glasgow, but 25 million people live in Mumbai compared to 750,000 in the Scottish city. “Getting round Mumbai is very difficult – there is so much traffic – so we provided a cash & carry solution with all prodBilly Bell: ‘2014 will be a good year Michael McCrosson: ‘We have lost for wine in Scotland.’ sight of the value of the pound.’ ucts under one roof. Our catchment area had a two-mile radius and a population of 2–3 million.” “We estimate that business at Edinburgh restaurants is The product/sales mix was also very different to that in a down by 30% compared to before the economic downturn. typical UK cash & carry. “We didn’t sell alcohol and only 5% People are not dining out as often but when they do, they of our sales were tobacco. Staples of wheat, rice, flour and want a decent glass of wine,” he insisted. oil made up 35% of turnover, and it was not unusual for a “What we can bring to the market is wine knowledge and Happy Shopper store out there [Booker supplies 192 Happy quality of product. We invest in staff training and also run Shopper outlets in India] to stock 50 different skus of white regular courses for our suppliers and customers. We hold £1 rice. What also amazed me were the volumes that went million worth of stock, meaning that we can offer reliability through the cash & carry – one customer’s shopping took up and a guarantee of supply. Adding value is another very 29 trolleys!” important part of our business: for example, our Epicurean McCrosson was struck by people’s attitude towards price. event at Gleneagles Hotel is highly acclaimed.” “People know the value of money in India. We have lost sight Wine Importers is looking at 2014 as a year of opportunity, of the value of the pound over here. The pricing of staples with the Commonwealth Games, Ryder Cup, The Gathering was key to our sales.” and other events promising to attract high numbers of visiThe staff’s approach to work was also impressive. “The tors. “These visitors will want to try good wines. We believe standards achieved are excellent. People operate with pride it is important to be seen as a local supplier and we can link and enthusiasm, and their willingness to learn is immense,” in with wines that have a very strong Scottish connection, he said. “Nothing daunts them: they just carry on because such as Capercaille and Angus The Bull. 2014 will be a good they have a goal they want to achieve. Living and working in year for wine in Scotland,” said Bell. India was a life-changing experience for me.”

SIMON WESTON: ‘DON’T WORRY ABOUT WHAT CAN’T BE HELPED’ Falklands veteran Simon Weston OBE (pictured), who suffered 46% burns in the bombing of Sir Galahad, recounted the horrors of that fateful day and his subsequent struggle to overcome his injuries and redefine his role in life. His story and the life lessons he shared with SWA delegates were both moving and humbling, and brought the audience to its feet. “I was just 20 years of age on 8 June 1982 when the bomb hit us. I lost friends, my career, the way of life that went with it all, and my identity and self confidence,” he said. Weston endured years of reconstructive surgery, including 85 major operations or surgical procedures. “As I improved physically, I went downhill within myself and started to give up.” Weston’s mother contacted his regiment and an officer turned up at his house. “He asked me if I wanted to go to Germany to watch the rugby team and, of course, I went. I was being killed with kindness at home but the guys understood. That was the key that unlocked the door to my survival.

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“I had forgotten that you can learn from your mistakes,” he continued. “You have to keep a proper sense of proportion. Don’t worry about what can’t be helped. Think about the detail of the things you can affect.” Weston came to recognise that the world did not owe him a living. “My mother made that very clear to me and she was right. My mother and grandmother were my inspiration. They gave me the belief that I could do anything. However, although people can inspire you, you have to motivate yourself.” Weston concluded: “It is not what happens in your life that matters, it’s what you do about it that counts.”

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OFFICIAL BREW OF ENGLAND


employment law

Coaching gives tangible results Human resources expert Cate Ritchie (below) explains how to get the most from coaching. Have you considered the benefits of planned and supported coaching for developing managers? Our 10 top tips below should help you get the best possible results: 1. Schedule coaching sessions in the morning, early in the week Most people’s biorhythms are less energised later in the day and later into the week. Increase the likelihood of tangible benefits by coaching on a Tuesday morning as opposed to a Friday afternoon. 2. Never agree to less than three coaching sessions for any coachee For any tangible benefits to be realised, schedule a minimum of three sessions, ideally between three to six weeks apart, and ensure an effective tracking and review process. 3. Be clear about the measures of success When embarking upon the coaching process, encourage the coachee to identify ‘what success will look like’ and capture that in terms of tangible benefits. This means mapping out the ‘critical path’ to be taken (including timescales) and any barriers to be overcome. 4. Provide the coachee with a shortlist of options that will assist them to maintain focus on the priority areas – not just their own preferences If a core priority list is identified within the coachee’s work assignments/business objectives, invite them to select the one area that will deliver the most important, long-lasting results. This helps the coachee to clear any ‘fog of uncertainty’ about what they should focus on. 5. Establish a currency of success within the coaching process Score each aspect of the coaching plan and highlight ‘soft’ or ‘hard’ targets/achievements. ‘Hard’ targets are measurable, such as ‘deliver increase in profit by 5%’, and ‘softer’ targets are along the lines of ‘be more assertive’. Most people tend to gravitate towards achieving a clear result. 6. Start each coaching session with a review of when a previous plan or initiative made by the coachee had a successful outcome Maintaining a focus on successful progress helps the coachee to become more confident about addressing any

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• Cash & Carry Management • July 2013

future challenges and issues. Each coaching session will also reflect on the previous session in relation to progress made. 7. Build a chart showing progress and developments to capture results and successes By physically displaying the results and progress made, all parties involved will feel a greater motivation to deliver on commitments and actions. This will mitigate the very real threat of a weakening of commitment. 8. Encourage managers to be coaches By creating a culture of coaching, where all managers embrace the fact that effective coaching can significantly improve leadership skills, the results from each individual involved will be significantly enhanced. 9. Train all managers to coach This may be as little as three days’ delivery to encourage each manager to follow up on coaching support commitments and action plans. The only situation where coaching support does not deliver tangible benefits is when there are no disciplines in place to follow up on agreed action points. 10. Advertise that coaching support is a core component of the business By confirming publicly that coaching is valued, it encourages all parties to commit to the process. If you wish to talk to Cate about coaching or any other HR issue, contact her at cate@121hrsolutions.co.uk or phone (0792) 121 3890.

Driver CPC training deadline Lorry, bus and coach drivers must do their Driver Certificate of Professional Competence (CPC) periodic training or risk being fined or banned. So, ahead of the deadlines, the Driving Standards Agency (DSA) is warning drivers to complete their training. According to the rules that were introduced in 2008/09, new professional drivers had to start taking the Driver CPC initial qualification from that date. Existing drivers were given “acquired rights” that take their previous experience into account. All drivers must complete 35 hours of periodic training every five years. Bus and coach drivers with acquired rights have until 10 September 2013 to finish their first 35 hours, while lorry drivers with acquired rights and those with a licence to drive both buses/coaches and lorries have until 10 September 2014. This means that it is imperative to start the training as soon as possible. Operators are also responsible for ensuring that their drivers undertake the training or they risk facing action against their operator licences.

www.cashandcarrymanagement.co.uk


spotlight

‘Business is all about people’ This month’s article features Tony Reynolds, managing director of fruit & veg wholesaler Reynolds. successful than I could have ever imagined. Investment in people and technology is key to any business that wants to be the best at what it does. What most frustrates you in business (and in life generally)? Poor service and bad communication are my pet hates, and the two things are inextricably linked. We have a philosophy at Reynolds of ‘no surprises’. No matter how bad the situation is, we encourage the team to get the truth out there, discuss it, learn from it and build from there. If you were able to retire tomorrow, would you, and if so, how would you spend your time? So long as I am happy and have good health then I will never contemplate retirement. When I get out of bed each day, I always want to achieve something that will make a difference. What advice would you give someone starting his/her first job? Firstly, try and do something you enjoy – it’s so important. Work as hard as you can to improve yourself and take opportunities that present themselves. If you make mistakes then learn from them and don’t be frightened to keep driving forward. I have a saying on my office wall: ‘Don’t chase money, chase success, because money follows success’. Tony Reynolds (left) is a keen cyclist and runner. He is pictured here with Lawrence Dallaglio, taking a break during a charity cycle ride from Greece to London.

What has been the major milestone or turning point of your career? Starting to supply Pret A Manger in the early ‘90s was certainly a good move and a catalyst for the Reynolds business! Since then our relationship with Pret has developed from strength to strength, as it has with many of our other customers. Certain failures have also had a big influence – the most notable being not making it as a professional footballer with Crystal Palace, which led to me taking a very different career path. Who has been the biggest inspiration to you? Without doubt my family. [Reynolds is married with two sons.] They are the ones who know me best and who know which buttons to press. How do you maintain a work/life balance and how have developments in technology affected this? In my earlier years it was very much all work and no play. Building the business was an obsession and I think that made me quite selfish at times. The best thing now is having a fantastic team around me at Reynolds, which means I can spend more time with my family. Being able to play a part in developing our people, from ‘new-starters’ to ‘lifers’, is extremely rewarding and will make this business more

www.cashandcarrymanagement.co.uk

What type of business would you have gone into if it wasn’t C&C/wholesale? I’m a third-generation greengrocer so fruit and veg are very much in my DNA, but I would find anything that involves fresh food and people interesting. I worked for a bank before I joined the family business. It was good life experience, but only made me more committed to do what I’m doing now. If you had a million pounds to invest in business, how would you spend the money? As I said earlier, business is all about people, so that investment would have to be in further development of the team at Reynolds.

Third-generation greengrocer Tony Reynolds is a third-generation greengrocer who has been involved with the family business – Reynolds Catering Supplies, of Waltham Cross, Herts – since childhood, initially working on the market stall in Hackney. After an early career in banking at Barclays, he joined the family firm in 1988 alongside his father Dave. Since then, he has driven the rapid expansion of Reynolds. He retains his passion for fresh produce and is often spotted in the warehouse checking out the evolving variety of fresh fruit and veg coming through the doors.

Cash & Carry Management

• July 2013 • 25


information technology

Increasing sales and efficiency Cash & Carry Management looks at IT solutions that offer investment returns for wholesalers. “Accord Voice has transformed operations and more than lived up to our expectations,” says Thomas Ridley managing director Justin Godfrey. “As expected, increased accuracy has been one of the greatest benefits, with picking errors now virtually eliminated and service levels running at more than 99.99%. “We’ve virtually eradicated all errors and that leads to very happy customers – a massive intangible benefit we just can’t measure.” Productivity has also improved as workers have benefited from the hands-free, eyes-free nature of Voice, allowing them to focus fully on their work. Direct interaction with the WMS, Thomas Ridley temperature-controlled trucks preparing for deliveries. removal of the need to visit the office to collect new assignments, and more Foodservice distributor Thomas Ridley Foodservice is realisaccurate real-time stock information which minimises ing performance improvements and savings of more than re-picks and time spent exploring stock inconsistencies have £175,000 per year following an investment in Accord Voice all contributed to an increase in productivity of around 10%. WMS (Warehouse Management System) from supply chain “Moreover, the system allows us to analyse individual software and warehouse management systems specialist worker productivity,” adds Godfrey, “meaning we can spot Business Computer Projects (BCP). any potential bottlenecks, address any issues and schedule Thomas Ridley has grown to become one of the UK’s operations more efficiently.” leading independent wholesalers and uses its own fleet of 45 The new technology has been readily adopted by waretemperature-controlled vehicles to provide a multi-temperahouse workers, and training of new workers is now much ture delivery service to caterers across England. faster, allowing them to become productive much more The company’s investment in Voice was prompted by its quickly. expanding customer base and desire to increase accuracy in Godfrey concludes: “We now have full visibility and an order to improve the customer experience, ease out-ofaccurate audit trail across the warehouse. We’re expecting to stocks and reduce the costs associated with rectifying incorrealise even greater rect deliveries. efficiencies as we use Although using computerised stock control and RF the data we’re gatherscanning for goods receiving, the wholesaler still had ing from the system to manual, paper-based procedures for other warehouse operre-lay the warehouse ations. Though efficient, these were still subject to human to optimise both the error – a significant factor for Thomas Ridley where 1,000 use of space and deliveries per day are assembled from over 10,000 different movements within it.” skus. BCP has also incorThomas Ridley invested in Accord Voice WMS with porated the best parts Vocollect T5 hardware for all warehouse operations, from of Accord Voice WMS put-away through picking and replenishment to stocktaking into an RF Picking and perpetual inventory. solution which can be BCP worked closely with Thomas Ridley’s in-house IT used without a full team to phase the system in over 12 months, starting in the warehouse managemost complex department – frozen goods – followed by the ment system to give chilled department and finally, the largest of the three departreal-time, paper-free ments, ambient goods. benefits to small Once checked in by RF scanning, goods in the 100,000 sq wholesalers and cash ft warehouse are now managed entirely by Voice, with 65 & carry operations, in Warehouse management system. workers using the system. particular.

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• Cash & Carry Management • July 2013

www.cashandcarrymanagement.co.uk


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information technology

Training and consultancy STL has seen strong uptake of its new, affordable consultancy and training packages. Designed to help wholesalers maximise their return on investment, the packages range from bite-sized, in-house training sessions to full, bespoke consultancy courses. One beneficiary is BA Cash & Carry, which has experienced tangible, bottom-line benefits after just two days of consultancy. These benefits include faster picking rates, improved order accuracy, greater invoice accuracy, reduced wastage, reduced delivery costs and satisfied customers. STL is enabling an e-commerce future for Jones Wholesale Business Store. The specialist trade and business non-food cash & carry has already established a foothold in the Northamptonshire area, and now aims to take its offering to a broader market through a webstore. Jones Wholesale turned to STL for a more modern cross-operational solution, comprising STL’s tills, Merchandise Management System (MMS), Sales Order Processing (SOP) system, online ordering solution Order Wizard and MM3 handheld terminals. STL’s solutions are browser-based and so Jones Wholesale will be able to add new users easily and cost-efficiently as it expands. The Windows-based tills running STL MMS have proven very intuitive to use. MMS, like all STL software, is based on the Open Microsoft platform, making it easy to integrate with other systems. “We like the fact that STL provides us with more extensive out-of-hours support than we’ve had before,” says company director Simon Allitt. Jones is now integrating STL Order Wizard and STL SOP with MMS. These systems will make it easy for customers to order items online, and will automatically process sales through to the warehouse for picking. The integrated MM3 handheld terminals/scanning units will enable pickers to receive accurate picking sheets, make real-time product enquiries, pick orders in a timely manner, log goods in, capture barcodes, conduct stocktakes and confirm order status. Data input from the warehouse will

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• Cash & Carry Management • July 2013

dynamically update MMS in real-time, keeping the entire company up-to-date regarding merchandise levels, sales and order progress. “We spend a lot of time and money putting quality data into our systems,” adds Allitt. “By enabling us to collate, query and extract data from across the business as meaningful information in different formats, STL is effectively helping us to integrate and inform our entire team. That’s a powerful return on investment.” In Glasgow, STL tills, powered by STL MMS, have helped Alfa Wholesale to successfully resume trading following a fire last year. The intuitive STL solution was installed in just three weeks, and enables Alfa to provide its customers with fast check-out, transparent sales, market-responsive prices, better deals and special price schemes. Director Atif Rashid says: “Choosing STL was a good decision – it’s meant we can get on with running our business safe in the knowledge that our critical IT systems are efficient and in safe hands.”

Data insight service The Whole Sale Company’s data-led consultancy services are designed to help suppliers to the wholesale & convenience industry increase their sales effectiveness and efficiency. Using wholesaler EPoS data that a supplier already purchases, The Whole Sale Company overlays a data insight service that demonstrably improves sales performance and delivers objective market analysis to increase the efficiency and effectiveness of suppliers’ wholesale sales teams. The Whole Sale Company provides key insight to a supplier’s direct sales force, or outsourced third-party sales team, as well as producing market analysis and ongoing performance monitoring to the organisation’s wholesale management team. The combination of key facts to sales personnel on the ground and broader analysis of threats and opportunities to management ensures that suppliers can maximise the use and value they get from their EPoS data to develop their business. This is achieved by identifying strategic distribution gaps and growth opportunities as well as providing tactical information that enables sales personnel to work collaboratively with wholesalers to target opportunities and deliver incremental sales growth. Mike McGee, co-founder and director, explains: “While many suppliers recognise the potential value of their electronic point-of-sale data, few have been able to imbed the use of this data within the day-to-day function of their business – either due to a lack of focus and/or

www.cashandcarrymanagement.co.uk


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CATERING The August 2013 issue of Cash & Carry Management will include a feature on Catering

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

For more information on STL’s licensing options:

0844 472 4727 • sales@stl-solutions.com @STLTechSolution • www.stl-solutions.com


information technology available resource. It’s becoming increasingly clear that brands have to make their data work harder for them to deliver the most relevant offering possible.” By analysing the sales data already being purchased, The Whole Sale Company is able to identify gaps and growth opportunities in wholesale distribution, for example, underperforming depots per category or depots where a supplier is under-performing in comparison to its competitors (where this data is available). By working in partnership with the suppliers’ national accounts teams, The Whole Sale Company develops a sales strategy to fill those gaps and maximise the opportunities, which will then be measured and monitored through a series of bespoke Key Performance Indicators and reports. Co-founder and director Tanya Pepin says: “Identifying key facts within the data and developing an execution strategy for those facts is a complex task and demands high levels of experienced resource and a well-defined process. This is not something that can be automated, nor a task that many suppliers have time for right now. “The Whole Sale Company’s data-led services can help by providing sustainable and measurable incremental sales volume, with a transparent and measurable return on investment.”

Managing business operations

Voice order picking.

Sanderson customers won eight awards for business excellence at the Today’s Group Awards Dinner 2013. The award-winning customers use the Sanderson wholesale IT system, Swords, to manage their business operations – from purchasing and sales order processing to warehouse management and stock control, with fully integrated financials. The solution helps customers to streamline operations, reduce operational costs and drive their business forward. Sanderson customers who celebrated achievements include: Regal Wholesale, HT & Co (Drinks), Dee Bee Cash & Carry, Savage & Whitten, Thames Cash & Carry, JW Filshill and Imperial Cash & Carry.

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• Cash & Carry Management • July 2013

Another wholesaler using Swords to increase efficiency, launch new service offerings and support business expansion plans is drinks wholesaler Temple Wines. Having experienced significant growth, the company chose the Sanderson solution to integrate all areas of its supply chain. Swords provides real-time stock information that enables Temple Wines to make effective replenishment decisions to protect essential cash flow. The system further benefits the company by automating time-consuming manual processes such as order processing. Vimal Kataria, operations manager, comments: “The Sanderson solution is central to our operations and we’re already seeing the benefits with better stock visibility and real-time business information.” Another Sanderson customer, Cork based Global Liquor Concepts, has selected the Sanderson solution to support and manage operations at its newly launched business. The system delivers vital management and stock information and monitors the performance of key operational areas. Customer services is benefiting from accurate product and stock information, allowing representatives to provide fast response times and offer alternative products for out-ofstock items. In addition, the Swords system has introduced flexible pricing options and a simple promotions process, making efficient use of administrative time and offering a fast customer ordering service. Managing director Thomas Desmond says: “The system has established strong operational foundations across the business, especially in our sales and customer service departments. A great strength of the system is its flexibility to grow with our company so we can add functionality as we require it.” To support growing companies, the latest modules include: new Mobile CRM (Customer Relationship Management), Web Ordering and Voice Order Picking. Using the latest technology for smartphone or tablet PCs, the Mobile CRM solution enables staff to work remotely and provides business continuity with 24-hour access to the Swords system. Staff can create quotes, process sales orders and view essential information while with customers to maximise sales opportunities and respond faster to customer enquiries. The Voice Order Picking solution boosts speed, accuracy and productivity of order pickers, benefiting companies with fewer costly picking errors. The latest Web Ordering system makes ordering faster, easier and more convenient for customers, increasing sales. Fehad Shexad, IT executive at JW Filshill, states: “The biggest benefit is increased sales. We are currently averaging one hundred thousand pounds of web sales per week.”

For further information: Business Computer Projects 0161-355 3000 Sanderson (0333) 123 1400 STL Technology Solutions (0844) 472 4727 The Wholesale Company (01296) 711011

www.cashandcarrymanagement.co.uk


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dairy products

A market in motion Consumer demand for premium products is driving growth in the dairy category.

Irish brand Kerry Foodservice has invested time and money into creating a professional culinary dairy range with all the flavour and texture of traditional dairy, but without the inconsistencies. New to the portfolio, Kerrymaid Culinary promises the taste of fresh cream but with added functionality for use across a multitude of applications. It reduces like fresh cream, is more stable than fresh cream when whipped, and is also lower in calories and saturated fat than market leaders and fresh whipping cream. In a blind consumer taste test, 66% of participants voted Kerrymaid Single number one for its creamy taste and desirable appearance in dishes compared to other leading cream alternatives in the market. With its easy-to-pour format, it can be used in hot dishes, as a topping or drizzled over desserts. Kerrymaid Whipping scored 7.11 out of 10 for creaminess in a blind taste test and held better when whipped compared with the other creams used for testing. Unlike fresh creams, Kerrymaid Culinary, Single and Whipping can be stored in ambient conditions until opened, which reduces wastage and costs for commercial operations. They are available in 12 x 1-litre packs. Kerrymaid Grated Red and Grated White provide an even melt and less oiling out than standard cheddars, giving a more visually appealing end product. The pre-grated format is convenient and time efficient. Similarly, Kerrymaid Pizza Grate has been specifically developed to have stretch and melt qualities, helping the pizza to hold its shape without an oily residue. Kerrymaid Original Grated Red, Grated White and Pizza Grate are available in 2kg bags. Easy-to-peel Kerrymaid Original Slices are used by chefs to speed up service back-of-house and contain 112 slices in each pack, with eight packs per case. Kerrymaid Original Spread has the taste of Irish butter (with less saturated fat) and the convenience of a spread. It is available in 1kg and 2kg sizes and also comes as 10g Kerrymaid Mini Portions for front-of-house service. Consumer tests confirmed that Mini Portions had a buttery taste, good spreadability and went twice as far as butter, reports the company. Snacking is driving substantial growth across the total category, and data shows that the sector is worth £16.2bn

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• Cash & Carry Management • July 2013

(Worldpanel food on-the-go database for foods, purchase plus foods only 12 w/e June 2011). As the second biggest sub-sector of cheese in convenience, cheese snacking is performing well, with Cheestrings, the No.1 cheese snacking brand, spearheading the market (Nielsen Scantrack: total coverage cheese snacking category MAT value to 9 February 2013). “Cash & carry is an important route to market for Kerrymaid,” says marketing manager Anthony Wilkinson. “It plays a key role in placing our products in various markets, including retail and convenience, professional businesses and foodservice, catering and hospitality.” All research by Cambridge Direction, 2012.

Continental cheese “Provenance, authenticity and diversity are some of the big food trends for 2013, and we have a range of cheeses that will allow chefs to keep up with these trends,” says Warren MacFarlane, marketing manager at Lactalis McLelland. Sales in the retail market show that continental cheeses are popular, with year-on-year sales of mozzarella, brie and camembert up 4%, 9% and 20% respectively. Similar trends are being seen in the out-of-home market, where continental cheeses are becoming popular additions to menus. Président Brie and Camembert are favourites with consumers, with a volume share of 32% and 28% respectively. A total of 42% of shoppers said that they buy continental cheese for a special occasion, and French favourites such as brie and camembert are two of the most popular options. Galbani Gorgonzola and Galbani Parmigiano Reggiano are also doing well. With summer approaching, consumers are after lighter, fresher tastes to reflect the improved weather, and the versatility of Galbani Mozzarella allows chefs to provide a range of dishes that will complement the warmer summer months while using authentic Italian ingredients. All

data

Lactalis

McLelland 128 shoppers’ survey.

Lighter, fresher tastes for summer.

www.cashandcarrymanagement.co.uk


: Cooks, whips and never splits

New

Kerrymaid Culinary is the cream alternative that does it all, outperforming on taste, functionality and versatility.

Irish Dairy Craft For more information contact Customer Services T: 0800 783 4321 E: info@kerry-foodservice.co.uk W: www.kerrymaid.co.uk


dairy products Flavour innovation Regionality and traceability within the ‘Black and White’ fresh milk brand remain focus points at Müller Wiseman Dairies. Chilled yogurt & pot desserts generated over £2.2bn worth of retail sales last year, and the 2.3% growth rate over the past 12 months – driven largely by a 4.4% increase in yogurt sales value and a 4.5% value growth in kids’ yogurts – has added over £50m to the value of the category (Nielsen total coverage GB 52 weeks ending 13 April 2013). Müllerlight’s packaging redesign features a lipstick-onthe-mirror style font and larger images to illustrate the flavours, designed to appeal to style-conscious consumers looking for a healthy snack. Product expansion of the brand includes a dessert range in three styles: Mischievous Milk Chocolate, Frivolous Fudge and Wickedly White Chocolate. Müller Corner Product expansion. has introduced four new flavours and new packaging to the existing Corner portfolio in the form of Müller de Luxe Corner. The new range of flavours includes: Marc de Champagne, After Dinner Mint, Coconut Dream, and Crème Praline. The £5m ad campaign features pop star Nicole Scherzinger tucking into her favourite dessert – a ‘Müllerlicious’ Müller de Luxe Corner. Amore yogurts feature new crimson packaging, now available in Lavish Me Strawberries and Cream, Tease me, Please me…Peaches and Cream, Caress Me…Coconut and Vanilla, and You, Me, Now Mango flavours. Cadbury Pots is a new range of desserts made with real melted chocolate, available in three flavours: Dairy Milk, Caramel and White Chocolate Buttons. Müller Rice is also set for a relaunch, with redesigned packaging in vibrant colours, limited editions and flavours that include Strawberry, Raspberry, Apple (all with 20% more fruit), Original, Vanilla Custard, Banana & Toffee, Maple Syrup Flavour Sauce and Apple Strudel Flavour Sauce. The brand is the biggest in the desserts category, worth almost £50m (Nielsen total impulse 52 w/e 13 April 2013). The relaunch will be supported by a £2.2m TV ad.

Sweet options Flavoured milks continue to outperform total soft drinks in both value and volume; they are currently growing in value at 10.9% (IRI, total market, latest 52 weeks 27 April 2013). “We have seen an increase in the number of adults consuming flavoured milk,” says Helen Cridge, trade marketing manager at FrieslandCampina. “Yazoo is no exception and remains the leading flavoured milk brand in independent convenience retailers with a volume share of 62.2%.” The purchase of flavoured milk within convenience is predominantly for food-on-the-go consumption but with

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• Cash & Carry Management • July 2013

Yazoo one-litre growing by 40% year-on-year (where volume rate of sale has increased by 8.8%), shoppers of flavoured milk are also buying it as part of their weekly repertoire. Flavoured milk has evolved in the last two years with NPD: new flavours in traditional thick shakes, new confectionery-based drinks, an increased range in cold hot drinks to target women, and, more recently, clearly messaged protein drinks targeting males. Yazoo is available in 475ml and one-litre bottles. The introduction of a 99p price-marked pack has given shoppers the reassurance of a value-for-money price resulting in increased rate of sale and a greater profit margin of more than 40% for independent convenience retailers. Yazoo will continue to improve its range of in-store PoS, driving innovation in shopper activation and further interacting with consumers. All data IRI, independent convenience retailers, latest 52 weeks 27 April 2013, unless otherwise stated.

BUYER’S VIEW FROM HQ Chris Smith, dairy negotiator at Bestway Group, says: “Dairy is a key focus area for Bestway Group. The key drivers for our business in dairy are milk and flavoured milk, yogurts and cream, butters and spreads and cheese. “Our own-label, Best-in Butter 250g, is performing well this year, offering good value versus the brands. Flora 250g, price-marked at £1, is also doing well as the price point resonates with the end consumer. It’s our intention to continue to support the brands as well as driving our own-label forward in the dairy category. “Although dairy can be challenging, the market is in good growth as a whole. We work closely with our supplier partners to ensure we have the best offering in terms of price and product to suit the needs of our customer base. “We encourage a collaborative approach with our supplier partners that results in improving sales for the mutual benefit of all parties. We want to work with the suppliers that are proactive and offer insight and initiatives that appeal to customers. “Suppliers that understand and support our business and do not disadvantage their brands in the convenience channel will benefit most from the growth journey we are on. “Promotions form an important role in our proposition; however we strive to offer everyday competitive prices on the key lines to give retail and foodservice customers the opportunity to get the best deal for their business.”

www.cashandcarrymanagement.co.uk


dairy products Natural ingredients The UK’s number one soft white cheese brand, Philadelphia, from Mondelez International, has been extended with the introduction of Simply Stir in two Philadelphia flavours: Mushroom and Garlic & Herb. Susan Nash, trade communications manager, says: “We know how busy life can be, and that’s why we’re so excited to launch Philadelphia Simply Stir as the solution to dinner dilemmas. It’s ideal to stir into any meat, fish and vegetables or mix into pasta or rice to make your midweek meal much more delicious.” Dairylea Mighty Mature and Dairylea Springy Onion spreads, both made with all-natural ingredients and available in 160g tubs, are the firstever flavours for the Dairylea range, and are designed to give families more tasty options for the lunchbox. A solution to dinner dilemmas. Worth £29 million across its spreads and portions portfolio, Dairylea is the UK’s biggest processed cheese spreads brand. Last year, the spread underwent a reformulation and is now based on a recipe containing all-natural ingredients, and this new launch aims to drive incremental growth in the cheese spreads category, currently worth £100.3m. The launch of Mighty Mature and Springy Onion is being supported by a £1.6m marketing investment, including social media and high-profile in-store activity to help excite shoppers about the new products and drive impulse sales. “This is the latest in a series of market-leading innovations for the brand,” says Nash. “We’ve had a fantastic response to Springy Onion and Mighty Mature in consumer testing. The new flavours bring something completely new and different to our range. We’re confident that consumers will love them.” All data Nielsen, total value MAT to w/e 23 March 2013, unless otherwise stated.

Bake off Stork, the leading baking brand from Unilever UK (IRI data February 2013), spearheaded World Baking Day in the UK on 19 May. The campaign benefited from experiential, digital and on-air support, including a new consumer-driven marketing campaign to recruit novice home bakers to host official World Baking Day parties. Stork also partnered with Food Network UK to share campaign messages both on and off air ahead of World Baking Day.

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• Cash & Carry Management • July 2013

The 100 bakers who were selected to become a World Baking Day party host were each supplied with a hamper containing everything they needed to throw an exclusive baking party for nine friends who each brought their own home bakes to decorate. Prizes for the best culinary creations included a private baking session with a Stork ambassador, tickets to see the hit West End musical Wicked, as well as the accolade of Stork UK Cake Decorator 2013.

‘Largely driven by TV programmes such as The Great British Bake Off, the trend for home baking continues to gain momentum’ Rhiannon Carr, brand manager, Unilever The theme for World Baking Day 2013 was Bake Brave and aimed to inspire people to step out of their baking comfort zone and master a cake they had never baked before. One hundred Bake Brave recipes were collected for the event from ambassadors around the world – from Level 1 for a complete novice, up to Level 100, designed for a master baker. “Largely driven by TV programmes such as The Great British Bake Off, the trend for home baking continues to gain momentum and we’re tapping into this as the official sponsor of World Baking Day in the UK,” says brand manager Rhiannon Carr. Worth £38m, Stork is the market leader in baking with an 80% share of the baking segment (IRI data February 2013).

Healthy options Responding to the growing demand for healthier products, Lurpak Lightest Spreadable, from Arla Foods, is already worth £12m since its launch in January 2012. “We’ve seen a rise in consumers moving towards more natural products, such as Anchor and Lurpak, says business unit director Stuart Ibberson. “Rather than just counting calories or looking at saturated fat content, consumers are paying more attention to what is included in the product and don’t necessarily deem low fat as a healthy option if it’s packed full of e-numbers, additives, preservatives and stablisers.” Both Anchor and Lurpak have launched multi-million pound marketing campaigns for 2013.

For further information: Arla Foods (0113) 382 7000 Friesland Campina (01403) 273273 Kerry Foodservice (01784) 430777 Lactalis McLelland (01737) 783300 Mondelez International (08702) 400861 Muller Wiseman Dairies (01355) 244261 Unilever (0800) 731 1597

www.cashandcarrymanagement.co.uk


44.5% P.O.R

ON EVERY BOTTLE*

REFRESHINGLY TASTY MILK *Based on manufacturer’s recommended wholesale price of £5.49 and retail price of £0.99 per bottle.


price-marked packs

Communicating value With no sign of a let-up in the harsh economic climate, cash-strapped consumers are increasingly associating price marks with good value and retailers are responding to the demand. Cash & carry outlets should ensure they stock up on pricemarked packs, which are fuelling impressive growth in the soft drinks category as consumers continue to seek value, according to AG Barr. “As a result of the tough economic climate, shoppers have become more forensic in their decision-making, scrutinising prices and promotions more closely in their hunt for the best value. In recent research by IGD, 63% of those surveyed said they are looking more closely at the price of products before deciding what to buy,” says Guy Gissing, national impulse controller for AG Barr. “Shoppers have also come to expect promotions as a key part of this hunt for value, with 58% saying that they buy more on promotion. “This trend represents a clear profit opportunity for cash & carry outlets. Shoppers are looking for ways to spend less without trading down, and increasingly expect retailers and brands to create new ways of helping them to save money. Price-marked packs provide a simple solution, as they clearly represent value for consumers.” The impact of pricemarking was shown in a recent retailer study carried out by AG Barr, when the Rockstar range was moved from unpriced packs to 99p price-marked packs. This resulted in an 800% uplift in rate of sale for Rockstar, and this growth was incremental as the overall energy category in this retail store actually grew at the same time. “This trial clearly demonstrates that price-marking is a winning strategy for retailers,” says Gissing. “It drives footfall and rate of sale, builds shopper loyalty and, managed correctly, is a proven way to drive incremental category growth.” However, with price-marked packs being used more frequently as manufacturers across all product categories realise their importance, he says there is a need to innovate continually to maintain impact and deliver great value to shoppers. “AG Barr has raised the bar by using the next generation of price-marked packs, which incorporate an additional multi-buy element,” maintains Gissing. “This benefits retailers

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• Cash & Carry Management • July 2013

as it encourages additional purchase while still delivering profit, and consumers feel like they are getting even better value.” This promotional mechanic was trialled last year on Rubicon one-litre cartons, which were offered with a ‘£1.29/2 for £2’ flash on pack. The additional multi-buy element has proved so successful that it has already been used on Irn-Bru and Barr flavours and is being repeated on Rubicon this summer. It is also being rolled out on Sun Exotic and Ka onelitre cartons. Gissing says: “Our message to cash & carries is clear: price-marked packs are an essential tool for your customers and the single most important sales driver within the category. It is essential that a wide range of price-marked packs is stocked and prominently merchandised to ensure that retailers can take advantage of this profit opportunity.”

What the experts say Price-marked packs (PMPs) are a key tool for communicating value to shoppers in convenience stores, but the debate between suppliers and retailers over the role they play and their importance continues, according to market research experts him! The company conducts regular research into the shopping habits of both retailers when in cash & carries and of consumers in convenience stores. Marketing manager Natalie Goodridge says: “Our consumer research found that PMPs are not a key driver of store choice but they do score highly in shopper value-for-money perceptions. “Two out of three shoppers said PMPs improve a store’s price perception image and over half say a PMP encourages a trial of new products. We found that shoppers’ value-for-money ratings increase by 9% if their c-store price matches, but it soars by 18% if a c-store has price-marked packs. A total of 34% of shoppers say that a c-store with a range of PMPs is offering good value for money.” Among independent retailers, many are getting the message about the price perception for their store, but they tell him! they are often concerned that price-marked products offer lower margins than unpriced stock. Goodridge adds: “We encourage more suppliers to work with retailers to create a compelling story to prove that PMPs deliver higher value and volume sales than non PMPs, despite lower margins. “Shoppers tell us that bread, produce, milk and fresh meat in particular are seen as the most expensive categories, and 26% of shoppers say they use bread, milk and fruit and veg as a gauge for overall price perception in c-stores, so these should be a focus priority for PMPs.”

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price-marked packs Independents’ advantage Price-marked packs also play a significant role in Boost Drinks’ strategy to support independent retailers via the wholesale industry, and its recent launches – 500ml cans of Original Energy and Orange & Mango flavour – are both available in PMPs at 89p. Managing director Simon Gray explains: “As a champion of the independent retail sector, price marking forms a major part of our business and marketing strategy. Our aim is to price our products at a point which offers the consumer great value for money to drive sales and increase brand loyalty, while at the same time ensuring great profit margins for both wholesalers and retailers. “Nearly 90% of our business is through the wholesale channel and it will continue to be our main priority. From a soft drinks category perspective, when it comes to consumer purchase behaviour, independents have a major advantage over the multiples.”

Focus on value Georgina Thomas, GlaxoSmithKline (GSK) Consumer Healthcare category controller, says that in the current economic climate, consumers are focusing on value, and GSK has tapped into this trend with a range of PMPs across the Lucozade and Ribena ranges. She maintains that PMPs represent good value to consumers and are particularly important in the impulse environment where research by him! suggests a quarter of customers would use c-stores if they offered more PMPs. Recent data (Nielsen total impulse, drink now data to 2 February 2013) also shows that PMPs have helped to put value into the total soft drinks category. Within the sports & energy sector, PMPs have driven 58.9% value growth compared to a standard straight pack. This is also similar within the juice drinks sector, where PMPs have been driving value growth by 27.6%. By stocking PMPs, retailers can show customers good value for money and, in turn, encourage purchasing both at the time and on repeat visits. “We have increased the range of PMPs that we offer but we have also made sure we continue to offer a proportion of non-PMPs so that retailers can make the right choice for themselves and their customers,” she says. With all NPD going forward, GSK will be launching a non-price-marked variant as well as a price-marked pack.

Channel investment Britvic Soft Drinks and PepsiCo UK are also extending their PMP range, with a new 49p PMP in cases of 24 x 330ml cans of Pepsi, Pepsi Max and Diet Pepsi. This format is available

40

• Cash & Carry Management • July 2013

exclusively in wholesale depots. The new 49p PMPs bring the Pepsi range in line with the existing 49p priced cans across the fruit carbonate portfolio, which includes 7Up and Tango. The company told Cash & Carry Management that Pepsi, Pepsi MAX and Diet Pepsi were previously offered in 59p PMPs, and the move to reduce the price to 49p highlights its ongoing investment in support of the independent channel.

Special edition Red Bull is launching a special-edition 473ml hero can, featuring champion street trials rider Danny Macaskill, with a £1.99 price mark. The can will give consumers the chance to ‘Enter Danny’s mind’ by scanning the code on the can with their phone to watch Danny performing his new moves. Simon Hewitt, head of Red Bull category, says the onpack promotion sits perfectly alongside a fixed price mark. Research by him! shows that 44% of consumers would buy PMPs on impulse, with soft drinks having the highest purchase intent of any product category. He says: “With sports & energy being the largest and fastest growing category in soft drinks, and with Red Bull being the No.1 brand, this activity will benefit retailers by increasing engagement and penetration of the category, which in turn, will put more cash in their tills. “We know from the success of last year’s special-edition 473ml pack that our Danny Macaskill can will drive incremental sales for retailers. This, alongside the price-mark provides a compelling proposition which will help retailers maximise sales and drive additional profits.”

Cost-conscious With prices being forced ever higher by repeated duty and tax increases, tobacco consumers are some of the most costconscious shoppers. Jeremy Blackburn, JTI (Gallaher) head of communications, comments: “In these tough economic times, the RYO (roll-yourown) and value cigarette markets are continuing to grow as adult smokers seek out greater value for money when purchasing tobacco. So it is

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Weetabix is the UK’s No.1 breakfast cereal

*

And look out for our other great price mark packs!

Source: Nielsen data to 5th January 2013 - Total Market


price-marked packs important that manufacturers and retailers demonstrate to smokers that they are getting the best possible choice and value when making their tobacco purchase. PMPs do exactly this while also driving footfall, customer loyalty and associated purchases.” He says that PMPs are performing particularly well and, according to Nielsen MarketTrack year to April 2013, they currently account for 58.6% volume share of the total UK tobacco market (excluding cigars) in independents and convenience. With volume growing by 6.9% year-on-year, this presents retailers with a significant sales opportunity. He adds: “Most recently, JTI extended its Sovereign brand with Sovereign Blue, available in a £5.99 price-marked pack for both King Size and Superkings 19s packs. Sovereign Blue offers retailers another opportunity to capitalise on the growing value cigarette sector, while responding to rising demand from existing adult smokers for full flavour cigarettes at competitive prices. “In February, JTI also announced a new price point for Winston, offering even better value for the world’s second favourite cigarette brand. Winston is now available nationally in a £5.99 PMP containing 19 cigarettes in both Blue and Red variants, helping retailers capitalise on the growing demand for value products. The new proposition also comes with a refreshed pack design for Winston Red.”

Value seeking Imperial Tobacco is also introducing more PMPs. Gayatri Barua-Howe, UK communications manager, says: “Since mid-April, Player’s Smooth has been available in King Size and Super King Size 19s, reflecting the growing popularity of a quality blend cigarette at a competitive price.” According to IGD shopper visit 2012 research, smooth variants represent 38% of the sub-economy sector, which has grown by a third year on year and is the UK’s fastest growing sector. A new PMP price for Player’s was recently set at £5.79 (19 cigarettes). Barua-Howe says: “Value-seeking is, and has for some time been, the dominant trend in the tobacco category.” Imperial Tobacco visit data from February 2013 shows that 75% of independent tobacco retailers are already stocking Player’s, and new Player’s Smooth will offer valuable profit opportunities for them and wholesalers. UK RYO retail value is currently £1.75bn, and Imperial Tobacco estimates that while the smooth market has grown by 16% in volume terms in the last year, Golden Virginia Smooth volume is up by 24% year on year.

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• Cash & Carry Management • July 2013

Barua-Howe says: “The New GV Smooth range is available in PMPs across all pack variants, from the 8g Handy Pack at £2.50 to the 50g pouch for £14.99, which also includes quality cut-corner papers.”

Profit driving PMPs have become a common sight across many categories in independent stores, but one of the sectors that has been slowest to implement them has been the wine trade. However, Chris Ellis, off-trade channel director for wines at Pernod Ricard, says that in line with its strategy to offer independent retailers profit-driving solutions, Pernod Ricard UK is launching a £6.99 PMP for the UK’s highest selling Rioja brand, Campo Viejo. The brand’s Tempranillo varietal will feature the price marking and will be available to all cash & carry depots, both national and independent. The pack will be supported with PoS material in selected outlets and a comprehensive marketing campaign across the sector. Nielsen total off-trade data for the week ending 2 February 2013 shows Campo Viejo outperforming both the Spanish and Rioja categories, up 28.5% in volume and 23.9% in value against 3.7% volume and 7.2% in value for Rioja. Ellis believes that PMPs provide independent retailers with a trusted mechanic to offer value to consumers, while driving profit for the channel through increased rates of sale and encouraging repeat custom. Research by him! shows that 86% of shoppers would trust the price of a PMP over the shelf price, and 79% of shoppers regard PMPs as a promotion. Ellis adds: “Campo Viejo is performing incredibly well in the off-trade, showing a clear consumer demand for the brand. This price-marked pack will enable independent retailers to capitalise on this popularity, offer their customers something unique and increase their profit margins.”

Meeting the challenge PMPs are less uncommon in other parts of independent retailers’ alcohol sections, but Ali Brown, business sector controller – impulse retail and off-trade wholesale at Maxxium UK, believes wholesalers and their customers are not maximising the opportunity they offer. He says: “Insight tells us that shoppers are making fewer trips to out-of-town stores to cut fuel costs and are managing basket spend closely. This presents a fantastic

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T I F O R P PR FROM OUR

S K C A P D E ICE MARK

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price-marked packs opportunity for wholesalers and convenience retailers. The way they can best maximise this potential is to stock a range of PMP propositions in spirits as readily as they do across other categories. “Wholesalers can capitalise on this trend by maximising visibility of PMPs, which offer the means to differentiate their range and promotional offering from the major multiples.” However, he says PMPs can only generate incremental sales if their price point offers the shopper great value while also rewarding the retailer with a margin that gives them a reason to stock that pack. He adds: “Meeting both criteria has previously proved challenging for suppliers to the spirits category and they have been relatively few in number. However, where premium branded propositions have entered the category in independent retail, they have thrived. “In 2013 Maxxium UK will be building on previous success by introducing exciting launches allowing wholesalers to offer more PMPs to the independent convenience channel.” Maxxium currently offers PMPS of The Famous Grouse 35cl, priced at £8.99, and The Famous Grouse 70cl at £14.99. There are also PMPs for Sourz fruit liqueur, with the 35cl variant at £5.99 and 70cl at £9.99.

Summer classic Diageo GB is launching a new 70cl price-marked pack of Pimm’s, and says that it is aiming to improve shopper perception and confidence to buy in the convenience sector. The 70cl bottle is price-marked at £11.99 and will be available in the route-to-market and convenience channels. The launch follows research that found PMPs provide reassurance to shoppers that they are getting value for money and a fair price, with him! reporting that 90% of convenience consumers consider buying pricemarked spirits and 86% said they would trust the price of a pricemarked pack over the shelf price. Vicky Mundy, category development manager RTM & convenience at Diageo GB, says: “Pimm’s is a British summer classic – it is the number one speciality drink in the summer. It is considered an integral part of the Great British summertime, which explains why it makes up 10% of the speciality drinks category and is growing at 8% year on year in the convenience channel. “The new PMP will offer consumers increased value during the summer months where casual gettogethers are more frequent. Pimm’s is twice as likely to be bought for a casual get-together. Therefore, it is important that retailers stock

44

• Cash & Carry Management • July 2013

Pimm’s where it is clearly visible because it is often an impulse purchase.” Pimm’s returns to TV in July to raise brand awareness and support the launch. The brand is being backed by a £3m marketing campaign this summer.

Valuable category Nielsen data shows the biscuit category is worth £2.3bn, and biscuits remain a firm favourite in the UK with a household penetration of 99.1% – higher than any other snackfood category, reports Hena Chandarana, shopper marketing controller at UBUK. She says that innovation in on-the-go biscuits, savoury biscuits and breakfast has recruited younger consumers into the sector, driving relevancy and helping to safeguard the future of the biscuit category. She adds: “The category remains extremely valuable to retailers and wholesalers alike thanks to the annual 6.6 billion consumption occasions, higher than cakes & pastries (5.4bn), snacks (4.8bn) and confectionery (2.9bn).

‘We’re starting to see a shift in consumer buying behaviour as more shoppers opt for products with a lower price point over multibuy deals’ Hene Chandarana, UBUK shopper marketing controller

“Value for money has always played an important role in shopper behaviour but, as the current economic climate has put increased pressure on consumers, it’s now become an essential factor in a shopper’s decision-making process. We’re also starting to see a shift in consumer buying behaviour as more shoppers opt for products with a lower price point over multibuy deals. Consumers are now paying more attention to the immediate cost of their basket rather than the long-term savings on offer through volume deals.” Chandarana says studies by him! show that 44% of consumers are more likely to purchase an item on impulse when it is price-marked, and that nearly 50% thought PMPs to be cheaper than the usual store price, highlighting how effective PMPs can be. She adds: “These figures really demonstrate just how important it is for wholesalers to have a strong range of price-marked products on offer for retailers from trustworthy brands like McVitie’s and go ahead! in order to provide the low price point consumers are seeking and avoid them going elsewhere.”

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


price-marked packs McVitie’s has added more chocolate to its Milk and Dark Chocolate Digestives biscuit ranges, and the revamped products are available in 300g and 400g roll-wrap formats with mrrps of £2.49 and £2.89 respectively, as well as a £1.85 300g PMP.

Targeted approach

She maintains that delivering value for money is now an essential requirement in almost every category as consumers become more conscious of how and where they spend their money. Price perception is key for shoppers and they need confidence that they are getting value for money from brands they can trust. By stocking PMPs, wholesalers enable retailers to deliver this visible value for money on shelf, allowing them to demonstrate that they’re listening to the needs of their customers and stocking accordingly. Chandarana adds: “UB’s range of PMPs respond to this need perfectly, offering consumers brands at a visibly attractive price which is highlighted to the shopper on pack, instantly providing them with the added reassurance that they are getting a good deal from a big name brand they can trust. In fact, a trial by UB with price-marked packs generated a 13% increase in retail sales value. Similarly, research has shown that 98% of shoppers want PMPs, but only 78% of retailers stock them, so it’s crucial that they get them on shelf and stay stocked up. PMPs are also proven to drive rate of sale, which means less product out the back and better cash flow for retailers.” United Biscuits has an extensive range of price-marked packs spanning both its sweet and savoury biscuit portfolio, from traditional family favourites such as McVitie’s Milk Chocolate Digestives (£1.85 PMP for 300g) or Jacob’s Cream Crackers (£1.19 PMP for 300g), through to individually packaged McVitie’s Medley and go ahead! bars (55p PMP). UB’s range of 55p cereal bars from its Medley and go ahead! ranges are also available in counter display units, making them easy to stock regardless of the size of the store. There are also a number of products with new or updated PMPs. Crawford’s recently celebrated its 200th anniversary with the launch of a packaging redesign and a new range of 69p PMPs. The 69p price point is a reduction from the previous price of 75p, and the range of PMPs has been extended with additions including Fig Rolls, Garibaldi, Pink Wafers and Digestives. Crawford’s unmarked range is also being aligned to have a minimum recommended retail price (mrrp) of 75p, and the selection now includes a Milk Chocolate Digestives 200g format which is available at an mrrp of £1.10 and PMP of £1.

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• Cash & Carry Management • July 2013

Burton’s Biscuit Company says it is enabling cash & carry outlets and wholesalers to meet the needs of today’s pricesensitive shoppers by significantly increasing its range of PMPs, a key sales driver of sweet biscuits in convenience and impulse. Over the past year, Burton’s has doubled its sales of PMPs of brands such as Maryland Cookies, Wagon Wheels, Dodgers and Cadbury Fingers. David Costello, Burton’s Biscuit Company’s category and activation controller, says sales of some Burton’s skus have risen by as much as 90% over the last two years in outlets that have switched from plain packs to PMPs. Burton’s internal data shows PMPs in the convenience and impulse sector are now worth over £50m a year, representing 27% of all value sales in the sector. Costello says PMPs help retailers to attract consumers to the fixture, particularly at a time when price sensitivity is so prevalent. “Our price-marked packs, which benefit from sustained brand investment and support, not only provide accessible price points to many of Britain’s best-loved biscuit brands, they also attract new customers and encourage both brand loyalists and occasional impulse buyers to purchase.” He says that as one of the UK’s first FMCG companies to introduce price-marked packs, Burton’s was quick to spot how they can help to drive sales, particularly in times of economic uncertainty, while also ensuring wholesalers make a good return.

“Today’s shoppers are more cost conscious than ever and are actively seeking products that provide good value for money, without compromising on quality,” adds Costello. “Burton’s price-marked packs not only create standout on the fixture, they also deliver the winning combination of taste, quality and value which consumers are seeking.”

Broad usage Mondelez International uses PMPs across both its confectionery and hot beverages. It offers a £1 price-marked range on sharing bags and tablets (120g-140g), including Cadbury Eclairs, Cadbury Dairy Milk Giant Buttons, Maynards Winegums, Maynards Sports Mix, Bassetts Jelly Babies and Bassetts Liquorice Allsorts, and has also used price marks to highlight new launches. In April it introduced Cadbury Dairy Milk Marvellous

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Smaller s of case size uire eq 5s & 6s r m minimu outlay

Your customers love the price, you’ll love the profit! 44% of shoppers would be more likely to make an impulse purchase if the product was a price-marked pack (PMP)1 57% of retailers agreed PMP would be the biggest driver of sales increase over the next 12 months2

For further information please contact: Rachel.parker@cpuk.nestle.com Source: 1. him! CTP 2011 2. him! pmp-retailer study

All br a backe nds d by multi -milli pou on activ nd media ity in TV, ra cl dio, c uding ine prom otion ma, s and o n-line


price-marked packs “So ensuring every customer notices a PMP or any promotional offer is critical. The number one reason for purchasing on impulse is incentivised by a deal or promotion. A secondary display in a high traffic area such as on the counter can be very effective as it will improve visibility.”

New designs

Creations in two flavour combinations: Jelly Popping Candy Shells and Cookie Nut Crunch. They were launched in 200g tablets (rsp £2), in cases of 12 for Cookie Nut Crunch and 14 for Jelly Popping Candy Shells, and in 47g bars, in cases of 24. This format (rsp 59p) had an initial price mark of 50p. This spring, Kenco also launched PMPs of its Eco Refill range to the convenience trade, with 100g Kenco Rich and Smooth both priced at £3.29, Decaff Eco Refill at £3.59 and 85g PMPs of Kenco Millicano Eco Refill at £3.29. Susan Nash of Mondelez International says him! research shows hot beverage shoppers spend double the amount of the average shopper in convenience stores, and 95% of shoppers say they would buy a coffee PMP from their convenience store, so these packs should help independent retailers to drive value sales and boost their coffee range. She adds: “Compelling research from him! shows that 76% of consumers buy PMPs some or most of the time, and awareness of PMPs is high with the majority of shoppers believing them to be a promotion. “The research also shows that PMPs help consumers to feel confident they are not being overcharged when purchasing products. Furthermore, the majority of consumers think they are likely to continue purchasing the same amount of PMPs and over 20% think they may purchase more. “PMP advantages also include time-saving, as they do not need labelling and can go straight on shelf, as well as their proven ability to increase impulse purchases, with 48% of consumers saying they would be encouraged to switch from their normal brand to purchase a PMP.” She says a number of variables determine which particular promotional mechanic is optimal for an individual retailer. Factors to be considered include product format, product category, unit price, customer profile, seasonality, frequency of purchase and store environment. “To make the most of confectionery PMPs, it is important for retailers to ensure they have a great display in key areas throughout the store to maximise impulse purchasing. A total of 68% of shoppers don’t see confectionery while in store, and of those who do, 80% usually purchase,” says Nash.

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• Cash & Carry Management • July 2013

Sugar confectionery company Perfetti Van Melle has launched a £1 price-marked bags range across its Fruittella and Mentos brands for retailers who want to stock a pricemarked option. Fruittella brand manager David Leal says these bags offer retailers the opportunity to create a range in store. Pricemarked bags have grown in popularity in the last few years and have become a destination point in many independent retail stores, especially since the recession began, as consumers look for value as well as quality. Fruittella has two bags in its £1 price-marked portfolio: Summer Fruits, with its mix of square, wrapped strawberry, orange and lemon flavoured chews, and Duo Stix, which contains wrapped chewy sticks in flavour combinations of Cola/Lemon, Strawberry/Peach and Raspberry/Apple. The entire Fruittella brand has recently undergone a makeover with fully refreshed and updated packaging across all of its bag designs. These new designs are intended to give the range greater standout in store and allow the individual bags to be identified more easily by consumers at the point of purchase. Leal adds: “This is a more modern and inviting look for the brand, but maintains the strong natural feel and positioning for which Fruittella is known and loved. Fruittella already has a heritage of strong sales in the cash & carry sector and now this £1 range of bags gives independent retailers a further option in addition to our stick pack formats.” The Fruittella brand will be receiving consumer support during 2013 with a national TV and cinema campaign over the summer months. The Mentos brand also has price-marked bags available for its mint and fruit flavour chewy candy lines. Mint

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facebook.com/campoviejo

campoviejowines.co.uk

NEW CAMPO VIEJO* PRICE MARKED BOTTLES

ÂŁ6.99 EACH

IN DEPOT NOW!

NO. I SPANISH WINE BRAND IN THE UK** Enjoy Campo Viejo responsibly

* Campo Viejo Tempranillo only ** Source Nielsen MAT Off Trade Value Sales 020213


price-marked packs and lollies, New Refreshers chew bars, Fun Gums, Rainbow Drops, Wine Gummies and Fizzy Wine Gummies, and Mega Rainbow Dust. Lee adds: “Our new ‘Flashback to 10p’ collection offers a host of great tasting, low-cost products, designed to drive sales in recessionary times. The 10p price point makes it easy for children to calculate how much they’re spending. Coupled with this, our new bold packaging has been updated to appeal to a new audience and really jump off the shelf.”

Increasing loyalty

bags are showing the second highest growth in the bags market after kids’ bags. Mentos brand manager Claire Powley says: “The launch of the Mentos £1 price-marked bags gives even more retailers a reason to stock the world’s second largest sugar confectionery brand, and feedback has shown that there is demand for a Mentos bag option.” The Mentos brand will receive national TV support in the second half of 2013 and will also reach consumers through an extensive sampling campaign. Both Fruittella and Mentos price-marked bags are available in colourful, printed cases to stand out in cash & carry depots.

‘Recession-proof’ range Swizzels Matlow, the makers of Love Hearts, Parma Violets and Drumstick Lollies, has launched a new ‘Flashback to 10p’ collection. Claire Lee, brand manager at Swizzels Matlow, describes the range as ‘recession proof’ and says it contains of a host of iconic brands that were previously priced at 13p. The products feature updated bold designs with the new price point clearly shown. The Drumstick range, established in 1957, has been refreshed with a modern twist while maintaining the iconic colours and feel of the original logo. Products in the 10p selection are: Drumstick chew bars

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• Cash & Carry Management • July 2013

“The last few years have been exciting times within the neighbourhood retail sector, if not challenging and competitive. The growth within the sector as a whole has shown that success can be achieved,” says Sonja Bentley, business unit controller at Cereal Partners. “Through investment, hard work and of course getting the right offering in place, shoppers are increasingly using their neighbourhood stores.” Bentley continues: “For retailers, increasing shopper loyalty and encouraging them to raise their basket spend is key to their success and therefore your own. Shoppers are price conscious and their value-for-money rating increases by 9% if their neighbourhood store price matches. The rating then doubles to 18% if that store stocks pricemarked packs.” She says that as shoppers become ever more confident in their local stores offering value for money, it is essential that the retailers have access to products and packs to meet those expectations. This means ensuring that leading brands are available in suitable pack formats and are price-marked competitively. She adds: “This is even more important when we know that one in four shoppers said that if their c-store increases the range of PMP products they would visit more often, thus helping to drive footfall and loyalty. With regards to increasing basket spend, 44% of consumers said they would be more likely to buy a product on impulse if it was in a pricemarked pack. “At Cereal Partners we have six of our key brands available in cases of five and six and with price marks that ensure the shopper can be confident they are getting great value for money. For cash & carry operators, offering the range of price-marked packs and making sure they are always available and readily visible is essential for supporting their customers.”

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£2.5M

MEDIA

CAMP

Don’t forget Jordans Country Crisp, now outperforming total cereals (val. +15% and vol. +21% YOY)* Also available in PMP.

AIGN

For all sales enquiries please contact SHS Sales & Marketing: Phone: 01452 378 500 Email: info@shs-sales.co.uk *AC Nielsen Total Coverage 52 w/e 27.04.2013

£1 PMP’S l

RYVITA ACCOUNTS FOR 84% OF ALL CRISPBREAD SALES IN THE UK AND IS GROWING AT +4.1%*

l

RYVITA CRISPBREAD IS A MUST STOCK AND NOW WORTH £41M **

STOCK

UP NOW!

AS SEEN ON TV! www.ryvita.co.uk For all sales enquiries please contact SHS Sales & Marketing, Phone: 01452 378 500 Email: info@shs-sales.co.uk *AC Nielsen Total Coverage 52 w.e 01.06.13 **AC Nielsen Total Coverage 52 w/e 27.04.2013


price-marked packs

Fast-growing segment Jordans Cereals says it is the leading branded manufacturer of granola in the UK, growing at 27.7% year-on-year, according to Nielsen for the 52 weeks to 9 February 2013. Rob Lemon, category activation controller, says: “Granola is the fastest growing segment of cereals and Jordans continues to meet consumer needs by producing naturally delicious wholesome cereals.” Jordans started making Crunchy Oat Granola Raisin & Almond more than 40 years ago and has just produced a 500g PMP format specifically to support the wholesale, convenience & impulse channel, which it supplies through SHS Sales & Marketing. Lemon says: “PMPs are becoming increasingly important to stock as they give shoppers confidence that they are not being overcharged, and the addition of PMPs in the granola segment will help encourage impulse purchases in an area which convenience stores currently under trade in, but which is in strong growth.”

handy on-the-go format. They are available in three flavours, contain six vitamins and minerals, and provide 32% of the recommended daily intake (RDA) of vitamins and irons ensuring, says Weetabix, that they are better for you than the average breakfast biscuit. The company says its decision to retail them in single PMPs at 49p ensures customers are aware of the value for money they are getting, as well as providing healthy and tasty options in a convenient way. Weetabix 12s and 24s are being backed with a ‘Fuel your Day’ campaign and Weetabix Chocolate has recently been relaunched. Weetabix says the relaunch follows the success of Weetabix Golden Syrup, which since its introduction has achieved a market penetration of over 6% and recently won the cereal category in the 2013 Product of the Year awards, which are voted for by consumers. The company says that Alpen continues to be the number one muesli in small and large price-marked packs and complements the Weetabix cereal offering, with favourable pricing helping to drive sales ever further. It adds that ‘hot’ remains one of the fastest growing categories in the cereals market. Its Ready Brek range continues to be a strong seller, and a new recipe accounts for 26% RDA of Vitamin D “in addition to all the usual Weetabix goodness”.

Cash margins

Communicating value All of Weetabix’s top selling lines now come in PMPs to highlight the value of the products to consumers. This is especially important in the current economic climate where value for money has become one of the defining purchasing factors. Earlier this year Weetabix on-the-go breakfast biscuits were launched to cater for consumers who are looking for the same nutritional benefits as traditional Weetabix, but in a

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PMPs have long been part of the strategy of Kepak Convenience Foods, market leader in the UK’s ‘hot, quick and tasty’ sector. The company recognises that cost-conscious shoppers are turning to price-marked packs in record numbers. “Today’s price-sensitive shoppers demand value for money. Research by him! clearly shows that they gravitate towards price-marked packs, which they believe represent a good deal,” says Angela Daulby, Kepak Convenience Foods’ channel director. “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 price-marked packs, including its original Rustlers range (Quarter Pounder, Chicken Sandwich and BBQ Rib) which is flying off shelves at £1.99.” Daulby says that new products can also benefit from

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NEW 10p Range

Drumsticks, New Refreshers, Fun Gums, Rainbow Drops, Wine Gummies, Fizzy Wine Gummies.


price-marked packs being price-marked as they encourage trial. Rustlers Hot Subs and Rustlers Hot Wraps are good examples. Both are price-marked at £1.99 and have achieved sales of £43m since launch. “There’s no doubt that price sensitivity will continue and this highlights the need for independent retailers to offer price-marked options,” adds Daulby. “However, what’s even more important is to ensure that products are readily available. If products are not on shelf, then whether a product is price-marked is irrelevant. Too many independent stores are still losing out because shelves are not always fully stocked. Empty shelves mean lost sales and, more importantly, lost customers as shoppers will go elsewhere for what they want and may not return.”

which are a great way for convenience retailers to up trade consumers at lunch time or when snacking on-the-go,” says Couchman “Priced at 59p, the new range is available in the four most popular seasonings to encourage trial and help retailers to maximise the hand-cooked opportunity.”

Fast-growing sector

Shift to smaller packs Jim Couchman, head of impulse at Kettle Foods, says that across impulse, and particularly in independent retailers’ stores, Kettle Chips is seeing a shift towards smaller pack sizes and PMPs. Nielsen’s independents unit sales data for the 12 weeks to 27 April 2013 shows that 76% of all sharing snacks sold in independents are 130g or less, versus 70% last year, and 77% are price-marked, compared to 66% last year. Kettle Foods has launched PMPs for the independent convenience sector and they are available to cash & carry and delivered wholesalers. The new price-marked ranges are offered in both sharing and single-serve formats and Couchman maintains they are ideal for outlets in more price-sensitive areas, or where the rate of sale of premium products is lower. He says: “The new range of smaller pricemarked sharing bags allows more price-sensitive retailers to tap into the sharing category which is the number one growth sector in the impulse market. A total of 36% of consumers are entertaining at home more as a result of the state of the economy and 26% of c-store shoppers buy more premium products for such occasions, according to research by him! “The 100g bags are ideally placed to capitalise on this trend as they are price-marked at £1.29 and combine the strength of a top three sharing brand and the value proposition of a smaller pack format.” They are available in five top-selling seasonings: Lightly Salted, Sea Salt & Balsamic Vinegar, Sea Salt & Crushed Black Peppercorns, Mature Cheddar & Red Onion and Sweet Chilli & Sour Cream. “Also new are the Kettle Chips price-marked 40g bags

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PMPs have long been an important aspect of Tetley’s promotional activity in the convenience and independent sectors because it says they are an excellent way for stores to attract shoppers by demonstrating value for money. “This doesn’t mean that everything that carries a promotion is right,” says Andrew Pearl, director of shopper and customer marketing at Tetley. “A promotion from a small or unknown brand can end up being a slow seller and clog shelves. More importantly retailers risk their shoppers turning away when they see that the top brands aren’t available.” Tetley says it was the first tea company to introduce specially priced packs. Today it offers a variety of PMPs, with each featuring a prominent yellow price flash, a colour that shoppers’ eyes are trained to look for when shopping. The colouring achieves good shelf presence, while Tetley’s soft packs minimise the use of physical space on shelf – an important consideration for the many independent stores with limited sales space. According to Pearl, one of the effects of the recession is that many shoppers are moving away from doing the ‘big shop’, instead choosing to shop more locally. Location, the right range of grocery items and having trusted brands at good value prices make smaller stores a viable shopping destination and PMPs have an important role to play here. In addition, stocking the right range of tea is essential. Pearl says the range of teas that a store will stock depends on store size and location. However, more households drink Tetley than any other brand and Tetley and PG Tips have the strongest loyalty, accounting for over 60% of branded tea sales, so it makes sense for wholesalers to have them in the mix. He adds that people tend to buy out of habit and that even in a heavily promoted market, shoppers still buy what they know and they expect stores to hold their favourite brands. Tetley advises that a good minimum stock range for retailers would include: Tetley Original 40s, Tetley Original 80s,

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price-marked packs PG Tips 40s, PG Tips 80s, Tetley Decaf 80s, and Twinings Earl Grey 50s. Offering a mix of pack sizes is also important. Pearl says Tetley Original 40s are a great top-up item and strike-through priced Tetley Original 80s, £2.45-£2.00, offer a good value everyday purchase. Tetley claims it is the only tea company to offer a strike-through priced pack in this size. Upsizing the sale one more step, a neighbourhood store with a strong grocery bias should also consider 160s. These will last a family of heavy tea drinkers little longer than a week. Tetley Original 160s have a PMP of £3.65. Pearl says the focus on healthy living means that sales of herbal and green teas in particular have increased, and they offer a real opportunity for convenience stores to generate higher value sales. Tetley states that it is the only company to offer PMPs of green teas and its Tetley Green Pure 20s and Tetley Green Lemon 20s have been developed specifically for the convenience sector, with both available in £1 PMPs. Pearl says these packs have helped to drive the price of green teas down and present real value while being a higher margin sale for stores. Tetley Green Pure 20s are now the second largest green SKU in the market. “I would urge store owners to keep an eye out in their cash & carry for the price-marked packs and extra-free packs that will generate the best sales for them,” adds Pearl. Cash & carries and delivered wholesalers should also try to keep customers informed of any forthcoming promotional activity from manufacturers that could cause a surge in

For further information: AG Barr (01204) 664295 Boost Drinks (0113) 240 3666 Britvic (0845) 758 1781 Burtons Biscuits 0151-676 2352 Cereal Partners (01707) 824400 Diageo 020-8978 6000 GlaxoSmithKline Consumer Healthcare 020-8047 5000 Imperial Tobacco (0117) 963 6636 Jordons Cereals 01767 318222 JTI (Gallaher) (0800) 163503 Kepak Convenience Foods (02772) 688300 Kettle Foods (0800) 616996 Maxxium (01786) 430500 Mondelez International (08702) 400861 PepsiCo (0118) 930 6666 Perfetti Van Melle (01753) 442100 Pernod Ricard UK 020-8538 4484 Red Bull 020-3117 2000 Swizzels Matlow (01663) 744144 Tetley GB 020-8338 4000 United Biscuits UK 020-8324 5000 Weetabix (01536) 722181

buying, so they can cater for these sales peaks and show their shoppers that they won’t miss out by spending their weekly shop with them.

Promo Checker is a website reporting national promotional activity from suppliers in key wholesale outlets

“Promo Checker is a user-friendly tool that enables me to monitor competitor activity at the click of a button. It saves me a lot of time as I do not need to go through individual promotion brochures/leaflets any more.” Soraya Hussain, Customer Marketing Manager, Mondelez International

For further information:

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• Cash & Carry Management • July 2013

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products & promotions Italian herb

Single serve BAYER – The energy and mind vitamin brand Berocca has expanded its product range with the launch of a singleserve sachet, providing a risk-free entry point for new users as well as the opportunity for the brand to appear in the wider convenience channel for instant consumption along with other on-the-go options. The sachet contains one orange tablet which is added to a 250ml glass of water to create a refreshing drink, once fully effervesced. Containing energy-releasing minerals such as magnesium, zinc and vitamins B1 and B2, the full Berocca range is also available in other flavours including Tropical and Mixed Berries and contains no artificial stimulants, caffeine or sugar. Berocca Single Serve Sachets (rsp 99p) are available in a clip-strip and countertop unit. Tel: Bayer (0844) 243661.

Instant flavour NESCAFÉ – The ‘nation’s best-loved coffee’ (IRI MAT 52 weeks October 2012), has launched Nescafé Azera out of home, the brand’s first instant barista-style coffee that delivers the taste of a barista coffee, but with the ease of an instant. Lynn Little, ingredients lead, says: “As Nescafé celebrates its 75th anniversary, the appeal of instant remains strong as our convenience culture grows. “Nescafé Azera marks the culmination of years of innovation and research. In essence, it offers a completely new generation of premium quality convenience.” Nescafé Azera is available in a 100g tin. Tel: Nescafé (0800) 745845.

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KERRY FOODSERVICE – Mattessons Fridge Raiders – the largest meat snacking brand in the UK and showing growth of 35% – is extending its range with a new limited-edition flavour, Italian Herb. By delivering a constant flow of flavour innovation with a fresh new variant every six months, Mattessons is aiming to cater for growing lunchbox, on-the-go and after-school snacking occasions. Meat snacking is currently worth £103m (Nielsen, data MAT w/e 30 March 2013) and Mattessons has grown by £8m since the launch of its ‘Hank Marvin’ marketing campaign last year which incorporated TV advertising and digital activity. Tel: Kerry Foodservice (01784) 430777.

Energy boost BRITVIC SOFT DRINKS – The soft drinks manufacturer has launched a new addition to the Mountain Dew brand. Amp Energy contains extra caffeine, B vitamins and taurine, and is aimed at consumers who want high-impact energy, without compromising on flavour. Now worth £463m, energy is the No.1 soft drink category within the impulse channel (Nielsen impulse channel 52 week 19 January 2012), with sales of stimulant energy drinks up 16% year on year (Nielsen 52 week 19 January 2012). Targeting people who are on-the-go, the new drink is available in a 500ml can with an rsp of £1.39, and is sold in cases of 12. In addition, 99p price-marked cans will offer visible value to shoppers. Amp Energy is being supported by a nationwide in-store campaign, digital activity and eye-catching PoS material. Tel: Britvic (0845) 758 1781.

• Cash & Carry Management • July 2013

Cheesecake UNITED BISCUITS (UBUK) – The cake and biscuit manufacturer has launched a new addition to the McVitie’s Digestives portfolio. McVitie’s Digestives Cheesecake Creams consist of cheesecake-inspired cream fillings sandwiched between two McVitie’s Digestive biscuits. The 68g roll wrap range is available in two variants: Vanilla and Lemon, at an rsp of £1.36. The range is also available in a £1.19 price-marked pack. UBUK will be rolling out an outdoor and women’s weeklies advertising campaign to drive consumer awareness and encourage trial of the new range. Mark Sugden, director market strategy and planning, told Cash & Carry Management: “McVitie’s Digestives has always been considered an essential ingredient for making cheesecake. Our new addition takes this intrinsic link one step further.” Tel: UBUK 020-8234 5000.

New twist FERRERO – The company has launched Tic Tac Spearmint Twist, a new addition to the pocket confectionery range that replaces the existing Spearmint flavour. The redesign matches the rest of the range. In consumer trials, it resulted in a 50% uplift in purchase intent. Spearmint Twist will benefit from a £3.6m investment in the wider Tic Tac brand as part of Ferrero’s plans to double the size of its UK business. Tic Tac is the fastest growing top 10 brand in pocket confectionery. Impulse purchases are crucial for the mints sector of pocket confectionery and Ferrero has developed impulse-specific PoS to capitalise on this by raising visibility in store. Spearmint Twist is available as a 18g single pack with an rsp of 55p, or a 49g 100-pack (rsp £1.25). Data TNS Omnibus, February 2013.

Tel: Ferrero (01923) 690300.

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products & promotions Vanilla velvet

Cash kitty

MONDELEZ INTERNATIONAL – Cadbury Crispello has added a new flavour to its range: Vanilla Velvet. The 30g countline features three crispy wafer shells with a vanilla filling covered in Cadbury milk chocolate. The launch will be supported by a £2.5m UK marketing investment, including TV advertising and sampling. Matthew Williams, marketing activation director, says: “Vanilla is a popular and growing flavour trend (Google Trends, January 2009 – 2013). We’re delighted that Cadbury Crispello has driven category value by bringing new buyers to chocolate singles, and we expect the new Vanilla Velvet variant to keep up the momentum.” Tel: Mondelez International (08702) 400861.

BRITVIC SOFT DRINKS – Inspired by the Cats and Dogs TV ad, the J2O Kitty is a reward fund promotion that offers consumers prizes and cash to enhance their get-togethers with family and friends. Rolling out across grocery and convenience, the J2O Kitty is designed to bring a consistent approach to all marketing activity, whilst engaging and rewarding consumers for choosing J2O and cementing the brand’s position “at the heart of modern British gettogethers”. The J2O Kitty promotion will benefit from the increased awareness driven by marketing activity for the total J2O brand, including heavyweight TV support, a radio partnership with Heart, and interactive content on the J2O Facebook page. Tel: Britvic Soft Drinks (0845) 758 1781.

Bigger bag TAYLORS OF HARROGATE – The company’s number one coffee brand (Kantar Worldpanel 52 w/e 14 April 2013) is now available in a new 100% Arabica 1kg espresso bag. Arabica is a Rainforest Alliance certified, dark roasted coffee blend. John Sutcliffe, out-of-home and convenience controller, says: “We’re committed to the out-of-home market and so when our customers demanded a bigger format we delivered. The new 1kg espresso bag means that operators can enjoy the same great quality Arabica coffee that has made us the UK’s number one coffee beans brand – all in an optimum format.” The new larger pack is available in cases of 3 x 1kg. Tel: Taylors of Harrogate (01423) 814006.

Bite-size MARS CHOCOLATE – Twix has launched its first-ever bitesize variety: Twix Mix. Each 140g sharing pouch contains caramel pieces and Twix biscuit bites, covered in milk chocolate. Nicola Lacey, central sales director, says: “As we continue to see consumers swapping their Big Night Out for a Big Night In, we have witnessed the incredible impact this has had on the confectionery market and on bitesize products in particular.” There will be a £9m media spend and a national outdoor advertising campaign to mark the launch. Alongside the growing Big Night In trend, bitesize confectionery has seen growth of 40% over the last four years and is now worth £550m. Mars currently has four of the top five selling sharing-pouch products. Twix Mix has an rsp of £2.09. Tel: Mars (01753) 550055.

Campaign COTT BEVERAGES – Emerge, the UK’s fastest growing value functional energy drink (SIG, all snack scan outlets, 52 w/e 27 April 2013) is embarking on its biggest ever marketing campaign. Promoting the brand’s new tagline ‘Sorts You Right Out’, the combination of TV, PR, design and experiential marketing will help to increase brand awareness amongst Emerge’s young and predominately male target audience. Headlining the campaign is a partnership with one of the summer’s biggest blockbuster movies: Pacific Rim from Warner Bros Pictures. Tel: Cott Beverages (01509) 674915.

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Hot stuff ENCO PRODUCTS – Encona Sauces, the UK’s number one hot pepper sauce brand (UK table sauce chilli/BBQ, MAT 52 w/e 30 March 2013), has launched new and improved recipes for two of its market leading products. Encona Jerk BBQ Sauce 142ml has been reformulated using a blend of authentic Jamaican Jerk seasoning with a rich BBQ sauce to create a mild and spicy ready-to-use sauce. Encona Peri Peri Sauce 142ml now has an improved flavour, colour and consistency. Lisa Leung, brand manager, told Cash & Carry Management: “Such is the consumer interest in Caribbean food and drink that in 2012 we organised the UK’s first-ever Caribbean Food Week, which will be repeated this August in the run-up to Notting Hill Carnival – Europe’s biggest street festival.” Tel: Enco Products (01707) 322332.

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NEW! FROM ONE OF THE NATION’S FAVOURITE BRANDS A mix of tasty caramel balls and crunchy Twix® biscuit balls, both covered in delicious milk chocolate The Twix® brand is worth £90m CSV *, with sales growth at +9% YOY **

A WINNING RECIPE IN A GROWING MARKET Twix® Mix is set to boost sales in the Bitesize category, which has already seen 40% growth in the last four years ***

HUGE MEDIA SUPPORT BEFORE AND AFTER LAUNCH Massive £7m investment in advertising for Twix ® in 2013 Massive outdoor advertising launch campaign *Chocolate, Biscuit, Ice Cream. **IRI: CSV 52 w/e 28th Jan ’12 vs. w/e 26th Jan ’13. ***Source: Symphony IRI 52 w/e 31 Dec 2011. ®Twix is a registered trademark. ©Mars 2013.

Profile for Cash & Carry Management

C&C Management July 13  

C&C Management July 13