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MARCH 2014

Brakes moves into C&C with first depot in Croydon Family firm McClures on responding to customer needs Achievers: Scotland’s top wholesalers and suppliers Spotlight on Spar UK’s Philippe Rondepierre

The business magazine for cash & carry/delivered wholesalers






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The staff of life So the glitziest of glitzy occasions, when all the women try to outsmart each other with the most outrageous and revealing dresses, is over. We’ve seen the back of The Oscars (Academy Awards) for another year! Everybody shrieked as the winners were announced. But who selected the successful actors, producers and directors, and which judge chose which recipient? Awards are part of the fabric of all walks of life, not just Tinseltown. In the UK C&C/wholesale trade, the FWD has its annual Gold Medal Awards, Landmark recognises the contribution made by members and suppliers and the Scottish Wholesale Association is lauded for its Achievers scheme. Bestway Group, too, values such events, honouring not just manufacturers, but also staff. And while I for one would welcome a list of the judges for these contests, and details of who voted for whom, that information is rarely available. At the latest Bestway Performance Awards presentation, it was noticeable that London did not dominate in the way it has on previous occasions. This time some of the more outlying branches were represented on the podium. Too often, the capital gets all the limelight and those beavering away to great effect elsewhere in the country do not receive the recognition they deserve. Aside from that, it should be a basic requirement in C&C/wholesale that all companies recognise the part employees play in their achievements. Where would they be without them?

Blakemore Wholesale has acquired BA Cash & Carry ... see p.6









in focus performance awards

16–17 18



laundry & cleaning


products & promotions




energy drinks


snacks & biscuits


ice cream


Managing Editor

Kirsti Sharratt

Contributing Editor News Editor

John Wood Mervyn Gilbert

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Tel (01342) 712100

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4,565 July 2012–June 2013 Mervyn Gilbert news editor


ISSN 1352-254X

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

Cash & Carry Management

• March 2014 • 3


Foodservice tastes better

Guest speaker Managing director of Bidvest 3663 UK, Alex Fisher will be guest speaker at Arena’s Savoy Lecture on 24 March, addressing around 300 guests from the foodservice and hospitality industries.

PR/ad agency Landmark Wholesale, which as reported last month has parted company with public relations agency, Wilson Cooke, of Bury, Lancs, has replaced that company with Summersault Communications, of Leamington Spa, Warks, which will handle PR, advertising, editorial and media buying, as well as its existing customer-focused magazine work, for the group.

Merchandising Palmer & Harvey is providing retailers with a series of tips on how best to merchandise their stores based on three key occasions in their customers’ day – breakfast, lunchtime and evening.

Cigarette theft A customer of Booker’s Northampton branch was robbed of two bags of shopping – mainly cigarettes – in the cash & carry’s car park. The thief, who had been following the trader, escaped in a waiting car.


There were heartening signs for the European foodservice interests in Johannesburgbased Bidvest Group’s trading results in the half year to December 2013. Global foodservice trading profit rose by 24.9% to ZAR1.45bn (£80m) on sales 21% higher at ZAR49.38bn (£2.77bn). Within the European foodservice division, trading profit was ZAR576.16m (£32.33m), up 37.1%, and sales ZAR29.62bn (£1.66bn), 25.5% higher.

national account volume. Fisher added that the newly-acquired South Lincs Foodservice business was delivering profit expectations. Elsewhere on the continent, there was a mixed result in a challenging market, although there was encouragement from the Netherlands performance. While there are no precise In newer foodservice figures given for the Bidvest locations, both Chile and 3663 UK business, managing Turkey are reported as showdirector Alex Fisher spoke of ing promise. a 3% lift in trading profit Product categories perdespite the company facing forming particularly well difficult trading conditions were fresh meat, poultry, and and the impact of beers, wines & losing the contract spirits. for major catering Capital expengroup, Compass. diture during the Efforts have half year totalled been made to £25.5m, much of improve the prodit on additional uct mix and marvehicles. gins and achieve Tel: Bidvest 3663 Alex Fisher the right level of 020-7493 4733.

Booker quiet on new concept Although the new Booker Family Shopper concept has been adopted by six UK stores in little over a year, sales director – retail Steve Fox is reluctant to say how many more openings are in the pipeline. He told Cash & Carry Management: “We do not publicly disclose our opening plans.” At present, the locations are Ayr, Blantyre and Motherwell in Scotland,

Wolverhampton, and two in Wales that opened towards the end of last year – Cardiff and Pontardulais. Another that traded under the Family Shopper name for a short time – in Netherton, near Dudley – has since dropped the fascia. The new name is a combination of Booker’s old Family Choice own label and the Happy Shopper brand of former cash & carry operator Nurdin & Peacock, which was

Six stores are currently operating in the UK.

• Cash & Carry Management • March 2014

acquired in 1996. Fox, who reported that each of the outlets has a turnover of more than £30,000 a week, added that the criteria for adopting the new format are that stores must be over 2,000 sq ft and owners must enter into a three-year contract and abide by range compliance and standards. “Family Shopper is a discount format which takes the best of the soft and hard discounters,” he said. “The majority of products are on a permanent deal to offer longterm, everyday low prices. The stores also have larger non-food and frozen food sections.” Tel: Booker Group (01933) 371000.



‘Come and collect it’ Brakes Group, whose roots in delivered wholesaling go back more than 50 years, is breaking with tradition by opening its first cash & carry. Professional Food Market begins trading this month in a 25,000 sq ft building in Croydon. It is aimed at caterers who prefer to choose what they want on site rather than have their goods delivered. And to make the offer more attractive, Brakes is offering an opening half price deal on every £100 spent in the first two weeks. Thereafter, prices will reflect a 10% cut on what customers would be paying for deliveries from Brakes depots.

The Croydon C&C, managed by former local Costco manager Martin Sandler, carries 4,000 lines across the fresh, frozen, grocery and non-food categories. The range includes food sold under the various Brakes subsidiaries’ brands – M&J Seafoods, Wild Harvest,

Head of marketing Blakemore Trade Partners has named Sarah Ellis as head of marketing, responsible for the SPAR unit, which serves 630 symbol stores. Ellis, who replaces former marketing director Richard Harman, joins after a 13-year stint at marketing and communications agency McCann Manchester as senior account director for Aldi. BTP managing director Jerry Marwood said: “Sarah is well placed to develop

new ways of promoting the strong brand and retailer and consumer proposition that we have in place across the Meridian & Welsh Guild.” Ellis commented: “There are two real growth areas in grocery retail – discount and convenience. The possibilities in convenience are huge and AF Blakemore has a reputation for being at the forefront of new initiatives.” Tel: AF Blakemore & Son (01902) 366066.

Pauleys and Prime Meats. Like Makro outlets, it employs a butcher and fishmonger, as well as those who have trained as chefs. A spokesman for the foodservice specialist said the decision to move into C&C was part of a five-year turnaround plan, which was launched two years ago. He declined to say how many C&Cs were planned. Tel: Brakes Group (01233) 206000.

accepted for 12 categories, have to be submitted before 23 April. Owners and managers of pubs, restaurants, cafés, shops and delis are eligible for the restaurant, eatery and retail awards. Stephen Rankin, Gordon


Brakes Group is planning to relocate staff handling credit control at the former Watson & Philip Riverside depot in Dundee to its headquarters in Ashford, Kent. However, because none of the people at the Scottish site are likely to want to move south, the decision will effectively mean the shedding of 26 jobs. Several of the employees are reported to have contacted the local paper to make their feelings known. A spokesman for the wholesaler, trying to diffuse the situation – described as ‘a period of consultation’ – said: “We will be discussing the proposals with staff over the coming weeks and will continue to support them during this unsettling time.” Tel: Brakes Group (01233) 206000.

IT for Irish wholesaler Sanderson is supplying its wholesale IT system to fresh and frozen food wholesaler Plassey Food, of Rathkeale, Co Limerick. The solution will facilitate the Irish operator’s growth programme and enable more efficient stock management to be introduced.

Highlands & Islands spotlighted Organisers of the Highlands & Islands Food & Drink Awards (HIFDA), of which drinks wholesaler Gordon & MacPhail, of Elgin, Moray, is a main sponsor, are marking the 10th anniversary of the event. Entries, which are being

Dundee to Ashford

& MacPhail’s director of UK sales, said: “This event showcases and rewards all that is good about the best of food and drink in the Highlands & Islands.” Tel: Highlands & Islands Food & Drink Awards (0845) 838 2748.

Additionally, telesales will be able to process higher volumes of orders with a fast automated system, increasing the number processed each day. And staff can recommend alternative products for out-of-stock items. Tel: Sanderson (0333) 123 1400.

Precious amount In excess of £280,000 was raised from across the grocery trade as a result of Grocery Aid’s annual diamond ball held in London this month. Tel: Grocery Aid (01252) 875925.

Cash & Carry Management

• March 2014 • 5


Illicit stock seized Retailers are being warned to beware of illegal C&C/wholesalers after several raids on independent stores found alcohol products on which UK duty had not been paid. Shopkeepers caught with illicit alcohol on their shelves will not only lose the stock, but could lose their licence too, said the Federation of Wholesale Distributors, responding to reports by the police, trading standards officers and HM Revenue & Customs. In Walthamstow, east London, the authorities seized 446 litres of wine, 264

litres of spirits and 54,020 cigarettes in a crackdown on 50 shops and off-licences. HMRC estimated that the lost duty revenue on this haul is around £20,000. Five of the stores now face a review of their licence. In Burton-upon-Trent, police and trading standards officers removed alcohol worth £4,670 from a store, while in Wiltshire a police stop-and–check operation on the M4 motorway found £5,000 worth of dutyavoided beers, wines and spirits in two vans. A raid on two industrial

units in Edmonton, north London, netted 60,000 litres of smuggled vodka and beer (around £450,000 in lost revenue to the Treasury) and in Gateshead, 25,000 litres of illicit wines, beers and spirits were found. FWD chief executive James Bielby said: “Retailers who are offered very cheap deals on alcohol really must ask themselves if the prices are too good to be true. Shop owners are risking their licence and their livelihood if they get involved with criminal activity.” Tel: FWD (01323) 724952.

Bicester depot opens Bidvest 3663 has opened its new 91,000 sq ft multi-temp site in Bicester, Oxon – the largest in the company’s 24-branch network. It replaces two other units which closed this month – in Abingdon, Oxon, and Northampton. The complex includes 46,000 sq ft for ambient goods, 17,000 sq for frozen food and 15,000 sq ft for chilled. There are 15 loading bays and capacity for 65 multi-temp vehicles.

Steve Rich, regional operations director, said the new venture, staffed by 230, is a refurbishment of a former ambient storage and logistics depot. It covers an area stretching from Peterborough to West London and also

includes Newbury and Swindon. He added: “We have experienced exceptional growth in recent years. We need to ensure we continue to improve our infrastructure so we can continue to deliver the same high quality food and customer service. “Investment in technology means that calls to the depot will be dealt with more swiftly.” Tel: Bidvest 3663 (0370) 3663 000.

‘Local food heroes’ Cheese handcrafted in the Sperrin Mountains, Co Tyrone, by Tamnagh Foods was among local artisan products showcased by Henderson Foodservice at the IFEX show in Belfast. Proprietors Julie and Kevin Hickey, described by the Northern Ireland wholesaler’s trading controller Tom McKenzie as ‘local food


heroes’, were highlighting the launch of Sperrin Blue, their first cheese to reach the market. It will be available through Henderson Foodservice from next month. The Hickeys were also displaying Tirkeeran, a hard pasteurised cheese, which will go on sale later this year under the Dart Mountain Cheese brand.

• Cash & Carry Management • March 2014

Henderson Foodservice’s Tom McKenzie with Julie and Kevin Hickey.

Tel: Henderson Foodservice (028) 9034 2342.

Blakemore buys BA Midlands-based Blakemore Wholesale, the C&C/wholesale side of AF Blakemore & Son, has taken over BA Cash & Carry, which operates from sites in Cardiff and Swansea. Both are leading members of Landmark Wholesale. The Welsh business has a payroll of about 180. Its turnover of £93m swells Blakemore Wholesale’s income to more than £340m. The 41-year-old company, which has a growing delivered side, has been run by brothers Zahier and Tanvier Ahmed, who are leaving. The acquisition, for an undisclosed sum, means that Blakemore Wholesale, with its head office in Wolverhampton, now operates C&Cs from 14 sites, including three Lowries depots taken over last year. Managing director Sam Wilcox said: “While BA, like Lowries, is a well-established family business, we will be changing its name to ours in a few months. “The purchase will strengthen our position within the wholesale sector, particularly in South Wales, where we bought Newportbased Mogfords in 2001.” AF Blakemore & Son, the leading SPAR UK wholesaler, also has a major presence in Wales through its purchase of fellow symbol wholesaler Capper & Co in 2011. Tel: Blakemore Wholesale (01902) 371515.



Full member Country Range Group has joined the Federation of Wholesale Distributors as a full member. Until now, its link with the FWD has been through Landmark Wholesale, to which the group of 16 wholesalers is affiliated. Now it has enrolled in its own right. CRG’s managing director Coral Rose said: “We are very pleased to be part of the FWD, which has done some great work in recent years, raising the profile of the wholesale sector and its customers. “It has helped to persuade supplier customers to invest in the channel and realise the

huge opportunities they have to increase sales into catering/foodservice small & medium sized enterprises. “Joining the FWD also helps our voice – and that of our customers – to be heard in the formulation of government policy and legislation.” FWD chief executive James Bielby commented: “Country Range Group is an example of how wholesalers are working together to provide a better service to their customers, in the same way that we bring the entire sector together to improve choice to consumers.” Tel: CRG (0845) 209 3777. Tel: FWD (01323) 724952.

Pro-recycling group A group of leading organisations and companies operating across the drinks and food packaging supply chain has been formed to work with the Scottish Government to help it boost recycling and support waste reduction and anti-littering programmes. Ian Shearer, co-ordinator of the new Packaging Recycling Group Scotland, said: “We have strong support – almost 30 organisations at the moment – with a

collective desire to work more closely with key bodies on these objectives. “A collaborative, strategic approach, with a willingness to share knowledge and best practice, and develop partnership solutions, is the right way forward.” Representatives of PRGS have already held informal discussions with Richard Lochhead MSP, Cabinet Secretary for Rural Affairs and the Environment. Tel: PRGS (07808) 906 665.

Among trade’s top 30 Bill Laird, md of Today’s Group, has expressed his delight that five members – Dhamecha, HT Drinks, United Wholesale (Scotland), JW Filshill and Elbrook – maintained their positions in

the top 30 C&C/wholesalers in a trade survey. Dhamecha came 13th, HT Drinks 18th, UWS 19th, JW Filshill 23rd and Elbrook 27th. Tel: Today’s Group (0844) 247 0700.


Chilled controller Bestway has named Steve Carter (right) as chilled & fresh category controller to help drive its advance in catering and foodservice. He previously headed the chilled foods section at both Musgrave and Sainsbury’s, and until recently he was commercial director of Medina Dairy.

Group trading director Martin Race said: “Steve joins at a time when we are realising the full potential of fresh and chilled. But while Batleys and Bestway have a great business in chilled, there is still massive headroom for growth.” Tel: Bestway Group 0207453 1234.

Crawley office The Buyco, the company formed jointly by Palmer & Harvey and Costcutter Supermarkets Group (Cash & Carry Management: March 2013), has chosen a site for its new office. It has taken a 10-year lease on the 12,721 sq ft Pegasus Two development at Pegasus Place, Crawley, West Sussex, owned by

McKay Securities. The rent is £21.50 per sq ft. The news comes a year after P&H and the retail chain set up the £5bn buying scheme. A distribution agreement between Costcutter and Nisa is due to end in July. Tel: P&H (01273) 222100. Tel: Costcutter (01904) 488663.

Annual show

Benson and Smith

New venture Former Bellevue C&C owner Graham Benson and c-store veterans David Sands and his father Lindsay Sands have combined in a retail venture with Colin Smith, ex-regional manager for Bestway Direct. The 600 sq ft Pinkie Farm store, which opens in May, supplied by Nisa, will have Smith, md of parent company Lothian Stores, as its manager. More outlets are planned.

Confex’s annual trade show will take place at the Four Pillars Hotel & Conference Centre, near Cirencester, on 30 April and 1 May. Over 90 suppliers will be represented at the event, which also includes a golf competition in aid of charity and an awards dinner. The ‘Confex Can’ initiative will offer the group’s members the chance to win prizes to the value of more than £2,000. Tel: Confex (01608) 652333.

Cash & Carry Management

• March 2014 • 7


Costco offers van rental Vehicle hire specialist Hertz has signed an agreement with Costco to allow the C&C/wholesaler’s customers to make use of a new van rental service. Operating at all 25 Costco branches in the UK (as reported last month, the 26th will open in Hounslow, west London), the scheme offers hourly rentals starting from £13, with the warehouse

club’s members able to hire long wheel base Ford Transits from the car park to carry off their purchased items. Michel Taride, Hertz International’s group president, commented: “We are enabling Costco to provide members with an attractive and efficient van delivery service. We take care of providing and maintaining

the fleet and handling all customer transactions.” Sue Knowles, Costco’s marketing director, told Cash & Carry Management: “This is another example of our dedication to improving services, ensuring members can transport their purchases conveniently and at a low price.” Tel: Costco UK (01923) 830477.

Landmark achievement Landmark Wholesale managing director Martin Williams is pictured at the Scottish Wholesale Association’s Achievers dinner with SWA executive director Kate Salmon after receiving a bottle of 30-year-old Fettercairn malt whisky in recognition of his 30 years with the group – 12 as md. Tel: Landmark Wholesale (01908) 255300. Tel: SWA 0131-556 8753. Full Achievers coverage ... see pp.20-30

Recognising e-commerce Two years after it started to sell confectionery to the trade online, in addition to its established branch network, Hancocks has launched a new website to meet the growing needs of its e-commerce customers. Featuring a range of more than 1,500 branded and own-label products to buy online, including a wide variety of pick & mix sweets, the site is claimed to offer


‘much better shopping functionality and improved search and filtering tools’. Chief executive Mark Watson said: “Our e-commerce sales have seen phenomenal growth during the

• Cash & Carry Management • March 2014

last six months or so as more businesses choose to enjoy some of the flexibility and convenience that such a service provides.” Tel: Hancocks Cash & Carry (01509) 230796. Last month’s report on Hancocks’ trading performance should have stated that year-on-year growth was 5% and that Christmas trading increased by 16%, not the other way round.

DCS name change Stratford-upon-Avon based DCS Europe has marked its 20th anniversary by changing its name to DCS Group (UK) and introducing a new web domain, dcsgroup.com alongside two other websites. The toiletries and health & beauty wholesaler, founded by Denys C Shortt OBE, has a £180m turnover and a payroll of 320. It is the official UK sales and distribution company for such suppliers as Procter & Gamble, Gillette, Unilever, Colgate, PZ Cussons, SC Johnson and Osram. It also owns a toiletries factory and markets own brands under the Enliven and Natural Essences names. Tel: DCS Group (UK) (01789) 208000.

On-trade role Martin Spivey has joined Landmark Wholesale in the newly-created post of on-trade controller. He joins from Molson Coors, where he was a senior national accounts manager. Last year the group increased its on-trade presence by signing six former wholesale members of National Drinks Distributors (Cash & Carry Management: October 2013). Tel: Landmark Wholesale (01908) 255300.



N E V E R T A S T E D B E T T E R*




Football link extended Bidvest 3663, which has been associated with MK Dons FC (the former Wimbledon FC) since its formation in 2003, is extending its relationship with the Division 1 side. A spokesman for the club told Cash & Carry Management: “In addition to being an established supplier of food for use at the club ground, the company has been involved in recent years in a couple of match sponsorships, golf days

where the players return to our site for hospitality, and providing food for our annual children’s party.” As from next season, Bidvest/3663’s name will appear on match tickets, perimeter sites, screens at the ground and in match day programmes.

The foodservice wholesaler has also, since the start of the current season, been the principal partner of Premiership side Sunderland, sponsoring the team’s shirts and advertising around the ground. Tel: Bidvest 3663 (0370) 3663 000.

Chipping in with £1,000 In an initiative to promote degreasing brand Deepio, P&G Professional has launched a ‘Britain’s Best Chippy’ competition in recognition of the 11,000 fish & chip shops in the UK. The search is open to all independent fish & chip shops across the country. Proprietors are being

invited to register their premises online, after which they will receive a pack of promotional items to help them drum up local support and customer votes. The winner receives a cheque for £1,000 towards his business and a certificate to display in their shop. In addition, the first 50

registrations will receive a £10 Amazon voucher. Jayne Clark, P&G Professional sales director, UK & Ireland said: “Deepio remains the fastest selling powder degreaser in UK cash & carries. The range is continuing to expand.” Tel: P&G Professional (0800) 716854.

‘Don’t forget smoked’ Following trends that show consumption of smoked bacon is rising, Brakes is urging operators to ensure that the smoked variety is on their menus. Every year the UK foodservice industry consumes 1.7 billion lbs of bacon (BPEX

Foodservice Bacon Report January 2013). However, while many hotels and other catering establishments serve it at breakfast time, not all are necessarily offering the smoked style. Neil Smith, head of food marketing, said: “The rising

Artisan breads Swithenbank, Bidvest 3663’s specialist fresh and fine foods division, has launched a range of long-life, premium artisan breads: a sour dough country loaf, wheat-free


100% rye loaf, rustic brown loaf, crusty white village bread and a mixed box comprising two of each. Tel: Swithenbank Foods (01274) 470200.

• Cash & Carry Management • March 2014

popularity of smoked is due to its distinct flavour. “Our bacon portfolio is very comprehensive as we offer variations in smoked and unsmoked, thickness, cuts, origin and pack formats.” Tel: Brakes Group (01233) 206000.

100 new wines On-trade delivered wholesaler Matthew Clark has unveiled a new wine list ‘aimed at delivering the highest quality and best value to customers, while still allowing space for smaller boutique producers to shine’. There are around 100 new lines, including varieties from Chapel Down (England), Te Kairanga (New Zealand) and Baigorri (Spain). Matthew Clark has also increased its Spanish wine portfolio with the addition of premium Catalan estate Herencia Altés, which was previously distributed by Liberty Wines. London regional managing director Stephen Gill said: “While the number of new wines joining our portfolio is lower than in previous years, this reflects our confidence in the current Matthew Clark offering. “In the last few years, our experienced and skilled team of buyers has been working hard to source the best quality wines. Our range is broad enough to provide a bespoke offering to each customer.” Tel: Matthew Clark (0844) 822 3910.

Festival SPAR UK is currently running its annual cider festival, featuring its award-winning Premium Reserve alongside a range of best-selling proprietary brands. Deals include two for £2.50 and three for £3.50 on selected labels. The group’s first cider festival took place in 2011. Tel: SPAR UK 020-8426 3690.


PROFIT as easy as KTC

Rice, Spices, Pulses, Oils & Tomatoes telephone: 0121 505 9200 email: info@ktc-edibles.co.uk www.ktc-edibles.com/recipes


‘Booker has been a life saver’ The 2014 City Food Lecture was delivered by Booker chief executive Charles Wilson. Mervyn Gilbert was there to hear him. It could have been one hell of a coup – the opportunity to sign its most prestigious customer! Last month Booker chief executive Charles Wilson found himself sitting next to Princess Anne at a food industry event in the august setting of the Guildhall in the City of London. So what better time to expound the merits of the Wilson eyes 600 guests. leading C&C/wholesaler in a bid to gain the Royal Warrant for the delivery of food to the Windsors’ estates, or hand HRH a card, no questions asked, to Booker’s St Pancras branch – convenient for Buck House? Sensibly, Wilson erred on the side of diplomacy, waiting instead to be called up to address a gathering of 600 on ‘Growth Outside the Supermarkets’, the subject of his speech as the 13th person to deliver the annual City Food Lecture. He was following in the footsteps of such notables as Nestlé chief executive Paul Bulcke, Sainsbury’s CEO Justin King, Unilever chief Paul Polman, ex-Cadbury Schweppes chairman John Sunderland and former Tesco chief executive Sir Terry Leahy. Despite his reticence to bend the ear of chief guest Princess Anne, in front of an audience of dignitaries representing diverse sections of the food trade – many with limited knowledge of Booker – Wilson couldn’t let such a fantastic opportunity slip without giving them a rundown of what his company does and how well it does it. After telling guests that his father Eric was a farmer and that he (Charles) had spent eight years at Booker, prior to which he was No.2 at both Arcadia and Marks & Spencer, the statistics flowed:

Wilson ponders a question alongside fellow panellist Ronald Kers, chief executive of Muller-Wiseman.


• Cash & Carry Management • March 2014

• Booker was founded in 1830

as a sugar merchant (“long before convenience retailing, refrigeration and bar coding”). Among the companies taken over were Fitch and Nurdin & Peacock. Booker serves 340,000 caterers and 74,000 independent retailers. The Premier retail chain was last year voted symbol of the year. Total group sales last year were £4.7bn, of which £2.8bn came from collected business (cash & carry) and £1.2bn in delivered transactions, with most of the cinemas and prisons in the UK being supplied. Booker generates £200m in fresh meat business. But this wasn’t just about Booker – not by any means. Wilson said that the world’s first self-service food shop opened in Memphis in 1916, while the prototype in the UK, in 1950, was Sainsbury’s new-look Croydon branch. As an example of how successful supermarkets and hypermarkets have been in this country, Wilson said that last year their combined turnover was £107bn, of which £5.6bn came from online sales. However, he questioned the capital expenditure programme of Sainsbury, Tesco, Morrisons and Asda, saying growth fell well short of their £12bn overall three-year budget, mostly on new stores. “Jack Cohen, John Sainsbury and Ken Morrison were successful without spending such large sums of money.” Wilson added that it would be interesting to see how two Tesco acquisitions in fast food compare with those of established chains. Retail discounters, he added, were achieving far better growth than the major multiples, with 50% of shoppers using them over Christmas. And reflecting on the growth of online shopping, Wilson said that Amazon (which now sells food) was dwarfing Tesco and Sainsbury. Coincidentally, in a question & answer session after Wilson’s speech, one of the panellists was Douglas Gurr, former chief executive of Blueheath. This was the first food wholesaler to specialise in online business, eventually being taken over by Booker, spurring that company to expand rapidly through online sales and deliveries. Wilson also said there was a “growing connection” with farm shops – “a wonderful model to the trade”. Looking ahead at the changing control of UK suppliers, he commented: “I suspect that ownership will be more from offshore, with China, India and Brazil among the countries being more active in this respect.” Thanking Wilson for his speech, Princess Anne said: “Booker has been a real life saver for the sheer number of independent businesses out there.”

• • • • •


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‘A daunting but exciting move’ This month’s article features Philippe Rondepierre, head of marketing at SPAR UK. What has been the major milestone or turning point of your career? It has to be my move south a year ago to SPAR central office in Harrow. After 24 years dedicated to CJ Lang and SPAR Scotland, it was a daunting trip to make but it has been exciting and stimulating. It has been a wonderful opportunity to learn a lot but also a chance to apply, in a central support function, some of what I had learnt ‘at the coalface’. Who has been the biggest inspiration to you? This is going to score 0/10 for originality. It has to be my father. Professionally, he did not rise to great heights and did not retire a rich man but he did things well, with integrity and took real pride in his work. He was respected by the people who reported to him and by those he worked for. He ran a local house-building and civil engineering firm on behalf of the owner, who was more comfortable with a trowel in his hand than managing bricklayers and building projects. How do you maintain a work/life balance and how have developments in technology affected this? I am hopeless at the concept of work/life balance but I get a lot of enjoyment out of my work so it’s not that bad. I seem to be able to call upon a fair amount of energy and can recharge my batteries relatively quickly. Technology does not help me relax. It speeds things up, makes everything more frantic at work and enables that work to go home with me. It takes far too much discipline not to look at your i-pad when you are supposed to be having a rest! It does, however,

SPAR Scotland to SPAR HQ Philippe Rondepierre studied Marketing with International Business at the University of St Etienne in France, where he lived until the age of 21. He came over to Scotland in 1988 for a placement as a language assistant in two schools in Fife, then worked in a local hotel before returning to France to do his compulsory national service in the 1st Artillery Regiment. In 1991 he came back to Scotland, joining CJ Lang as a trainee retail development adviser. He was promoted to marketing manager in 1993 before becoming regional operations manager in 1995. He subsequently held various management roles within SPAR Scotland and was sales & marketing controller when he left a year ago to become SPAR UK’s head of marketing.

come in handy when you want to watch a programme that you missed when it was on the telly. What most frustrates you in business (and in life generally)? Loads of things frustrate me on a daily basis but I don’t let them get to me. I’m sure I unwittingly get my own back by frustrating a lot of the people around me. If you were able to retire tomorrow, would you, and if so, how would you spend your time? It depends. If I was financially very secure, too right I would! I could not sit still though. I would love to travel the world and do some worthwhile, hands-on charitable work, climb mountains, repeatedly fall off my surfboard with a big grin on my face and meet loads of interesting people. Right now though, when I evaluate my savings against the average life expectancy for a Caucasian male, it looks like I might need to keep enjoying what I do for a few more years. What advice would you give someone starting his/her first job? Take an interest in all aspects of your company’s activities, be inquisitive, work hard and be prepared to volunteer your services for tasks that are not necessarily in your job description. The effort you invest at the start will pay off in the future. What type of business would you have gone into if it wasn’t C&C/wholesale? Definitely the outdoor activities sector...somewhere sunny. Interestingly, my choice of career was also indirectly made by my Dad, whose logic was quite simple. “Go into food,” he said. “People will always need to eat.”

Philippe Rondepierre with his daughter Claudia.


• Cash & Carry Management • March 2014

If you had a million pounds to invest in business, how would you spend the money? I would buy three local stores with potential and convert them into SPAR stores. Hopefully, this would leave me with enough working capital not to over-stretch myself.





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in focus

The Windermere-based business operates a small cash & carry alongside the delivered wholesale operation.

Making a splash in The Lakes Mervyn Gilbert meets the directors of a long-established family concern in one of the UK’s major tourist areas. Each year the Lake District attracts almost 16 million visits from those wanting to experience its serenity and picturesque landscape, hike the terrain and see where Donald Campbell tried to beat the world speedboat record. Few of these people will have heard of the McClures, but it is largely through the efforts of three generations of the family that Cumbrian foodservice outlets have served up the sort of food that keeps them coming back. It all started in 1945 when Bill McClure began selling fresh fruit, vegetables and fish, before adding meat to the mix. It wasn’t long before the business was trading from eight shops in the tourist trap. By 1960 the company was servicing its own business, having opened a warehouse in Windermere. Present managing director Keith McClure – Bill’s son – says: “We soon realised that the real opportunity was in supplying produce to hotels, b&bs and the many public houses. In 1980, we opened our foodservice wholesale, cash & carry and delivered depot in College Road, Windermere, from where we still operate.” While Keith, in his 60s, still plays an active role in the company – often visiting new customers and established ones who have become more like family friends – the day-to-day running of McClures is largely in the hands of sons Matthew, 39, who is operations director, and brother Ben, 34, sales director. “We have a turnover of around £15m,” says Ben, “which represents considerable growth over the past few years. We have been adding new customers and have seen existing ones spending more. They use us for their frozen, fresh and ambient requirements.” Over recent years, the emphasis has swung from cash &


• Cash & Carry Management • March 2014

carry to delivered wholesale, with C&C now representing just 10% of income. However, as Ben says: “While everyone seems to want delivered these days, C&C is still very important to us – it’s like our shop window, giving customers the chance to visit and see what we have to offer. “Many businesses situated within a few minutes’ walk or drive from our premises can simply ring in their order and then call to collect.” Says Matthew: “In 2004 we purchased, and then demolished, the building next door, using the extra space for a freezer unit and offices. Now we cover more than 30,000 sq ft. “We deliver over a 70-mile radius to hotels, restaurants, pubs, cafés, schools and hospitals in Cumbria, Lancashire and North Yorkshire.” McClures also owns the 10,000 sq ft Parsons of Kendal operation eight miles away, which resulted from the purchase, in 1995, of wholesale grocers JW Carlisle. Parsons specialises in the distribution of fresh foods and vegetables, including prepared produce. Ben comments: “With our two trading businesses covering a wide area and calling on a large number of delivery points, we operate with a fleet of 34 vehicles.” How difficult is it for a company the size of McClures, which has a minimum drop of £30, to retain its customers, and add new ones, against the might of the likes of Brakes and 3663? Says Ben: “With customers today requiring high levels of service, we offer deliveries six days a week; many even want two a day! ”As we are located in the heart of The Lakes, we can react quickly to their needs. With our continually evolving and innovative product range, customers know that we will get them what they want, when they want it.” The company became a member of Sterling Supergroup in 1987, which gave McClures greater buying power and a more competitive edge, says Ben.


in focus “The group had changed from specialising in cash & carry to concentrating on foodservice, mirroring our own change in philosophy and direction. “Sterling produces some excellent products under its Catering Essentials label, such as chopped tomatoes, baked beans and butter. We benefit not just from the quality but also the price points. We also gain from the group’s in-house marketing expertise.” Keith McClure was Sterling’s chairman for eight years until stepping down three years ago, although he still has a seat on the board. “One of the reasons I resigned,” he says, “was to spend more time in the company. After all, we are a family firm. It’s too easy to become involved with so many other things, and I do enjoy helping my sons develop in the business.” McClures employs over 100 people, the majority at the Windermere site. Although many focus either on the delivered side or on cash & carry, there are a lot who divide their time between the two styles of trading. The company’s website lists many of the thousands of products available on a daily basis. While the wholesaler carries branded staples such as bread, cereals and dairy products, the broad selection also includes Italian style pasta, as well as meats and desserts. In addition, McClures offers a range of wines, spirits and soft drinks to hotels, cafés, pubs and guest houses. Matthew and Ben comment: “We are also proud of the fact that we work in close harmony with the Made in Cumbria organisation to promote regional foods. We also hold an annual trade show, where customers can sample products and speak directly to more than 40 suppliers. “We are rightly proud and protective of the McClure

This gives an indication of the geographic scale of the C&C/wholesaler’s operation.

family name and the way we have evolved. We are always looking for new opportunities – such as our ‘wine of the month’ deal – and will continue to change to meet new challenges, develop our product range and increase our staff and customer base.” While the company is in no immediate rush to look for new premises, if it did, it would probably be seeking something double the size of its present Windermere depot – probably purpose-built premises. However, difficulty in seeking planning permission could be the biggest obstacle. The McClures are guarded about the timing. But if growth follows a similar pattern to that of the past four years, they might well have to consider moving to a larger site.

The McClure sons: sales director Ben (left) and operations director Matthew.


Cash & Carry Management

• March 2014• 17

performance awards

‘Immensely proud of staff’ In London’s West End, Bestway Group paid tribute to its best-performing branches and suppliers. Addressing around 500 guests at the Bestway Performance Awards in central London, group chief executive Zameer Choudrey described the past year as a successful one, with total turnover of £2.52bn and profit up 6.6% to £184.6m. These figures include the group’s cement and banking interests. However, as reported recently (Cash & Carry Management last month), there was a near 7% drop in pre-tax profit for the C&C/wholesale business – to £54.3m – on sales barely changed at £2.34bn. “This was largely due to reduced margins to support our customers against the supermarkets,” Choudrey pointed out. On the plus side, the growing delivered foodservice operation secured contracts in Scotland and the north-east of England, while the Bestway Xtra Local chain had a turnover of £500m, with £10,000 per week sales being the qualifying figure for new applicants. Top manager David Howe with group chief executive Zameer Choudrey.

All the winners “The group has also achieved bronze status in Investors in People,” Choudrey added. “This, together with our performance awards, makes me immensely proud of our staff. “The awards allow us the opportunity to showcase to suppliers the talent that will be driving our business in the years ahead.”

Among the performance award winners were David Howe of Bellevue, Edinburgh, part of Batleys, who collected the overall top manager’s prize, while Bestway Manchester (general manager Sajid Mahmood) was judged best branch. Other winners: Group head office employee: Haleem Sadiq, central buying office. Group head office department: training, presented to David Smith, training & development manager. White Pearl branch: Bestway Abbey Road, presented to general manager Mohammad Gulistan. Best-in branch: Bestway Southall, presented to general manager David Baker. Catering branch: Batleys Cardiff, presented to general manager Marc Rees. Export depot: Bestway Barking, presented to general manager Muhammad Asad and deputy manager Asim Hussain. Catering special achiever: Steve Irons, senior contracts manager, Bestway Batleys Foodservices. Bestway branch manager: Naveed Anwar, Team Valley. Batleys branch manager: Dave Bolam, Cleveland. Bestway branch: Nuneaton, presented to general manager Saqib Naveed. Batleys branch: Southampton, presented to general manager Anton James. Most innovative supplier: JTI, presented to Mark Neale and Rupert Hinde. Overall supplier: Barr Soft Drinks, presented to Vinnie Liddar and Guy Gissing.

• • • • • •

Choudrey and Bestway Manchester manager Sajid Mahmood.


• Cash & Carry Management • March 2014

• • • • • • •






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‘Consider our collective power’

Kate Salmon, executive director of the All set for a night of celebration at the Sheraton BBC Scotland TV presenter Catriona SWA. Grand in Edinburgh. Shearer, host of the awards dinner.

United Wholesale (Scotland), which has two C&C/wholesale depots in Glasgow and another scheduled to open later this year in Edinburgh, won the ultimate accolade, Champion of Champions, at the Scottish Wholesale Achievers awards dinner last month. Held at the Sheraton Grand, Edinburgh, the glittering event was once again sold out within weeks and attracted nearly 500 wholesalers and suppliers. The team from United also claimed two other titles outright – Best Symbol Group and Best Marketing Initiative – and was joint winner (alongside 3663) of Great Place to Work. Other prizes included runner-up in the Corporate Responsibility Award and highly commended in Best Delivered Operation – Retail. Last but not least, Naeem Khaliq, symbol group controller, was runner-up in the Employee of the Year category.


• Cash & Carry Management • March 2014

Commenting on Achievers, which was created 12 years ago by the Scottish Wholesale Association in partnership with Cash & Carry Management, SWA executive director Kate Salmon said: “Recognising, rewarding and promoting best practice is what Achievers is all about. There are some fantastic examples of wholesalers and suppliers excelling in their area of expertise. However, no single business can get everything right – we can all learn something from our industry counterparts. And while a business can devise effective strategies, it is down to its employees to deliver the goods.” She concluded with a rallying cry: “I ask each and every one of you to consider the collective power we can harness if we all aim for the top. Go for Gold – strive for best practice – and together we will make wholesaling a world-class industry.”




Cash & Carry Management

• March 2014 • 21


Winning wholesalers Best Cash & Carry Depot

Winner: Booker, Galashiels “Goes the extra mile in delivering customers’ expectations and treats every customer individually, no matter the size of business.” Runner-up: United Wholesale Grocers, Springburn L to r: Kate Salmon, SWA executive director; Keir Stewart, field sales manager at AG Barr; Barry Hewson, branch manager at Booker Galashiels; David Lindsay, area manager at Booker Galashiels; awards host Catriona Shearer.

Highly Commended: Booker, Longstone

Best Symbol Group

Winner: Day-Today, United Wholesale (Scotland) “Supports retailers who may not be able to maintain the standards required for full fascia, and offers different levels of fascia.” Runner-up: Spar, CJ Lang Highly Commended: Premier, Booker

L to r: Kate Salmon, SWA executive director; Paul Seenan, customer marketing manager – C&C & impulse at Maxxium; Naeem Khaliq, symbol group controller at United Wholesale (Scotland); awards host Catriona Shearer.

Best Delivered Operation – Foodservice

Winner: Fáilte Foods “Clearly focused on providing its customers with a point of difference. Quality is a key ingredient.”

L to r: Kate Salmon, SWA executive director; Jim Cummiskey, joint managing director of Fáilte Foods; John Sutcliffe, channel controller of Taylors of Harrogate; awards host Catriona Shearer.


• Cash & Carry Management • March 2014

Runner-up: Forteith Foodservice Highly Commended: 3663 www.cashandcarrymanagement.co.uk

achievers Best Delivered Operation – On-Trade

Winner: Gordon & MacPhail “Really understands its customers’ needs. Stands out in service, sustainability and corporate social responsibility.” Runner-up: Bestway Batleys Foodservice L to r: Kate Salmon, SWA executive director; Aneesha Somani, key account manager at Golden Wonder; Stephen Rankin, UK sales director of Gordon & MacPhail; awards host Catriona Shearer.

Highly Commended: Sutherland Brothers

Great Place to Work

Joint Winners: 3663 United Wholesale (Scotland) “3663 has low staff turnover, great teamwork and employees who are genuinely happy. United Wholesale Scotland’s employees are passionate about the business and feel part of a family.” Highly Commended: Booker, Galashiels

L to r: Kate Salmon, SWA executive director; Lee Robertson, customer development manager at Britvic; Trystan Farnworth, director of wholesale at Britvic; Asim Sarwar, managing director of United Wholesale (Scotland); Val Plastow, telesales manager at 3663; Adam Spiers, business unit controller Scotland at 3663; awards host Catriona Shearer.

Corporate Responsibility Award

Winner: Sutherland Brothers “Shows exceptional diligence in using natural resources, creates a rewarding workplace and reinvests in communities.” L to r: Kate Salmon, SWA executive director; Colin Wragg, head of corporate & legal affairs at Imperial Tobacco; David Sutherland, managing director of Sutherland Brothers; Ruth Sutherland, trading director of Sutherland Brothers; awards host Catriona Shearer.


Runner-up: United Wholesale (Scotland) Highly Commended: Forteith Foodservice

Cash & Carry Management

• March 2014 • 23

achievers Best Delivered Operation – Retail

Winner: CJ Lang “Has accredited training programmes and a solid communications strategy, and focuses on enhancing retailers’ profit-on-return.” Runner-up: Sutherland Brothers L to r: Kate Salmon, SWA executive director; Innes Gibb, national account manager at Whyte & Mackay; John Bradbury, managing director UK & Ireland of Russian Standard; Bill Mair, sales director of CJ Lang; awards host Catriona Shearer.

Highly Commended: United Wholesale (Scotland)

Best Marketing Initiative

Winner: United Wholesale (Scotland) “Soon to be Unleashed used key personnel from the business, generated charitable donations and enabled the company to share its plans and review its journey so far.” Runner-up: CJ Lang ‘Delivering Growth’ Highly Commended: Forteith Foodservice ‘West Highlands & Islands Trade Show’

L to r: Kate Salmon, SWA executive director; Ross Brown, business manager of Premier Foods; Ali Afsar, impulse/grocery trading director of United Wholesale (Scotland); awards host Catriona Shearer.

Champion of Champions

Winner: United Wholesale (Scotland)

L to r: Kate Salmon, SWA executive director; Ali Afsar, impulse/grocery trading director of United Wholesale (Scotland); Andy Stevens, head of sales UK at JTI; Anshu Chandra, licensed trading director of UWS; Naeem Khaliq, symbol group controller at UWS; Asim Sarwar, managing director of UWS, awards host Catriona Shearer.


• Cash & Carry Management • March 2014

“Has shown consistently high standards in a variety of areas, and this excellence in diversity not only makes the company an obvious recipient of the award but also sets it up for further success in 2014 and beyond.” www.cashandcarrymanagement.co.uk


Winning people Employee of the Year

Winner: Scott Robertson, butchery supervisor, Booker, Galashiels

L to r: Kate Salmon, SWA executive director; Peter Baird, field sales development manager at Mondelez International; Scott Robertson, butchery supervisor at Booker Galashiels; awards host Catriona Shearer.

“Scott is enthusiasm personified. He sees any issues that arise in a positive manner, and will do what it takes to solve them. He thrives on helping people, and there are some great examples of him assisting customers with their businesses. Scott stands out because of the work he does not only in his job, but also in the community. What’s more, he has overcome significant personal challenges.”

Runner-up: Naeem Khaliq (right), symbol group controller, United Wholesale (Scotland)

Highly Commended: Derek Ralton (left), retail development manager, Booker, Port Dundas

Supplier Sales Executive of the Year

Winner: Fiona Nisbet, Mars Chocolate Runner-up: Steve McGarry (right), AG Barr

Highly Commended: Barrie Davidson (left), Britvic Soft Drinks


L to r: Kate Salmon, SWA executive director; Kath Wallace, training manager at Batleys; Fiona Nisbet of Mars Chocolate; David Livingstone, operations manager Scotland at Batleys; awards host Catriona Shearer.

“Fiona’s focus on building strong relationships and business plans with her customers has generated 8% growth in her territory – a great performance considering that the national trend is negative. Fiona is always fighting Scotland’s corner at Mars head office to obtain unique deals and support for the Scottish market. She is on the committee for Grocery Aid, and she also helps to organise the Scottish Candy Ball.” Cash & Carry Management

• March 2014 • 25


Winning suppliers Best Overall Service Winner: AG Barr (43.99 out of 50) Runner-up: Britvic Soft Drinks (39.61) Highly Commended: Tunnock’s (39.36)

The team from AG Barr, including regional business manager Scotland Stevie Ramage (second on left), with Kate Salmon, SWA executive director (left) and awards host Catriona Shearer (right).

Commended: JTI (36.48) See p.30 for complete league tables

Project Scotland Winner: FrieslandCampina and Scot Serve “Yazoo’s ‘Milk the Rewards’ boosted sales of the one-litre bottle in key wholesalers by 42% in the year to date.” Runner-up: AG Barr, Irn-Bru ‘Bru-Skies’ Highly Commended: Coca-Cola Enterprises, Monster ‘World Mountain Bike Championship’

L to r: Kate Salmon, SWA executive director; Kirsti Sharratt, managing editor of Cash & Carry Management; James Taylor, national account manager of FrieslandCampina; Graeme Clark, managing director of Scot Serve; Sophia Green, tactical sales director of Scot Serve; awards host Catriona Shearer.

Best Advertising Campaign Winner: Southern Comfort ‘Whatever’s Comfortable’

L to r: Kate Salmon, SWA executive director; Lisa Gallacher, area sales manager – north at Bacardi Brown-Forman Brands; awards host Catriona Shearer.


• Cash & Carry Management • March 2014






Sponsors’ views “Maxxium UK would like to thank all of the entrants that took the time to take part in the ‘Best Symbol Group’ category this year. Each of the presentations from the finalists went into great detail to show what they are doing to support the retailers within their group, and also what actions they are taking to future proof their fascia. I would encourage other symbol groups to take part in next year’s awards as this can help suppliers understand fully the intricacies of the support their retailers see. We would like to wish all wholesalers the very best for a prosperous 2014.” Paul Seenan, customer marketing manager – cash & carry and impulse, Maxxium UK

“JTI is delighted and proud to continue its long association with Scottish Wholesale Achievers and to have supported this year’s ‘Champion of Champions’ award. Scotland is an important market for JTI, with many important customers. It is an honour to gain a greater insight into their businesses and a pleasure to watch their enthusiasm and passion for their businesses during the awards process. We wish the Scottish wholesale industry continued success in 2014 and beyond.” Alan Wilkinson, business development manager, JTI

“Whyte & Mackay and Russian Standard Vodka are proud to have sponsored ‘Best Delivered Operation – Retail’ at this year’s Scottish Wholesale Achievers awards. We were genuinely impressed by every entry we saw and it was particularly encouraging to see such fantastic commitment to delivering great customer service and to reinvesting in the business, especially in these economically challenging times. It’s clear that the delivered wholesale trade in Scotland has grasped the importance of delivering outstanding service and great value to their customers. We commend every entrant and are confident they will continue to be successful long into the future.” Innes Gibb, national account manager – impulse, Whyte & Mackay


• Cash & Carry Management • March 2014

“Britvic Soft Drinks is delighted to have sponsored ‘Great Place to Work’. Personally, I would like to thank everyone who entered this award. I was blown away by the preparation and passion that had been put into the judging days. Not only was first place awarded for achieving the highest marks for the criteria set out, but also because of the outstanding examples the joint winners gave to Britvic and the independent judges. Above all, the accolade was awarded to those who demonstrated an exemplary level of teamwork and when interviewed gave a genuine feeling of happiness with the company they worked for.” Lee Robertson, customer development manager – wholesale/north, Britvic Soft Drinks

“Imperial Tobacco is delighted to support the Scottish Wholesale Association and to have sponsored the 2014 ‘Corporate Responsibility Award’. At Imperial Tobacco, operating responsibly is integral to the way we do business. It means living our values and treating others with respect. It was great to see that this vision was shared by all of this year’s entrants, who each demonstrated a strong commitment to aligning their responsibility objectives to their business interests. We thank all participants for taking time to enter and wish them well for 2014.” Ian Miller, UK regional corporate affairs manager, Imperial Tobacco

“AG Barr is delighted to continue its support of Scottish Wholesale Achievers through the sponsorship of the ‘Best Cash & Carry Depot’ category. The level of entrants for this category exemplifies the passion and desire to win this accolade. It was evident that the sector is adapting to the current market trends whilst holding on to traditional values which, in my opinion, will ensure a sustainable future for the sector. I would like to thank my co-judge Craig Barr and our independent judge David Sands for their contribution.” Keir Stewart, field sales manager, AG Barr


achievers “Batleys is proud to have sponsored ‘Supplier Sales Executive of the Year’ for the second year running. Kath Wallace, training manager at Batleys, and I thoroughly enjoyed the experience. The standard this year was as good as ever and we are lucky to have such a wealth of knowledge and experience at our disposal in the wholesale sector in Scotland – each and every one of the shortlisted nominees does a fantastic job. There was a clear message from the presentations that regular supplier visits to wholesalers build trust, confidence and strong relationships, but, more importantly for me, they help grow our joint business and ultimately increase sales. After an extremely difficult and close contest we decided that Fiona Nesbit of Mars was the winner and we would like to congratulate Fiona on her achievement.” David Livingstone, operations manager, Batleys Scotland

“Premier Foods is delighted to continue its long-standing support of Scottish Wholesale Achievers through its sponsorship of ‘Best Marketing Initiative’. This award recognises the efforts of the unsung heroes within our trade, who drive sales via flair and imagination. Each of the nominees demonstrated tremendous enthusiasm for their respective campaigns and they should be proud of what they have been instrumental in creating. The high standards made the judging a difficult process as was evidenced in the scoring, with the independent judges and I having some difficult but amicable conversations. I would like to thank my independent judges for their support and the SWA for the opportunity to be part of a vibrant Scottish market, and finally, congratulations to all the finalists.” Ross Brown, business manager – foodservice, Premier Foods

“At the Scottish Wholesale Association, we are very fortunate to have a core of loyal suppliers who back our activities, with more and more coming on board as they recognise the power of working together to enhance standards across the industry. Achievers is a huge part of that, and I am very grateful to this year’s sponsors. They put such a lot of work into judging the awards.” Kate Salmon, executive director, SWA


“Tayto Group is delighted to have been part of Scottish Wholesale Achievers this year and to have supported the ‘Best Delivered Operation – On-trade’ award. This was the first year we had sponsored an award and it was an honour to gain further insight into the Scottish on-trade and see the passion the entrants have for their businesses. We are very grateful to all the entrants for their time and efforts. They all demonstrated great commitment and enthusiasm. The winner of this award provided outstanding customer service for each of its customers and really went the extra mile.” Aneesha Somani, Scottish key account manager, Tayto Group

“Mondelez UK is delighted to continue its long relationship with Scottish Wholesale Achievers. Sponsoring ‘Employee of the Year’ for the first time has reinforced our views that there are some very dedicated people working in the wholesale trade in Scotland. All of the entrants demonstrated their passion for the businesses that they work in, and their willingness to go ‘above and beyond’ was clearly very evident. We would like to congratulate this year’s very worthy winner, Scott Robertson of Booker Galashiels, and also commend all of the entrants. We look forward to sponsoring the same Achievers award this year.” Peter Baird, field sales development manager – route to market, Mondelez

“Taylors of Harrogate was extremely proud to sponsor and judge the ‘Best Delivered Operation – Foodservice’ award for the second year running. Again, it was clear that managing such a diverse customer base in the current economic conditions remains a real challenge for the operators in this channel. However, we were very impressed on the whole by the entrepreneurial creativity we saw, a clear focus on service, quality and value and also a dedicated passion for both their internal and external stakeholders. They all showed that the customer remains very much at the heart of what they do and on this basis we commend all the entrants and believe that they will continue to grow in the future and enjoy a profitable 2014.” John Sutcliffe, channel controller, Taylors of Harrogate

Cash & Carry Management

• March 2014 • 29


Top 26 final results


For the fifth year running, AG Barr has won the highly coveted ‘Best Overall Service’ award.


NOVEMBER ’13 score/position



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Nestlé 1st Choice






Highland Spring






Imperial Tobacco








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Whyte & Mackay






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Red Bull






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United Biscuits





























• Cash & Carry Management • March 2014



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laundry & cleaning

Big brand loyalty Not only do consumers want convenience and value for money, they also want a name they know and can trust. The laundry category is currently worth over £1.4bn. Unilever has identified four major trends: long-lasting fragrance, environmentally friendly products, two-in-one convenience, and reduced packaging and pack sizes for space-conscious retailers and consumers. Gordon McAuley, category manager for laundry, says: “Consumers tend to stick to products they know and have confidence in, which is why brands like Persil have been around for over 100 years.” The company has relaunched Persil 2in1 with Comfort liquid detergent with a new pack design and improved formula.

Detergent and conditioner in one.

Voted Product of the Year for 2013, Persil 2in1 with Comfort is available in Passion Flower and Sunshiny Days variants in liquid and capsule formats. The liquid format features a multifunctional Stain Eraser Ball, which allows consumers to measure exact dosages and pre-treat stains. Persil Small & Mighty liquids now include an improved formulation and an updated pack design. The revamped range is more shelf-efficient for retailers and offers quicker and cooler washes with less impact on the environment. The relaunch is available across all Small & Mighty bio, non-bio and colour packs, which also include a Stain Eraser Ball and an easy-to-open flip-top lid and spout for mess-free pouring. Comfort fabric conditioner has a 41.2% market share, with sales growing at 5.3% year on year. Comfort with New Odour Defence Technology has a new campaign and refreshed packaging. The household cleaning category is currently worth over £661m. The fastest growing segment is bleach at 6.5%. Cif has achieved a 25% share of bathroom cleaning, an 8.9% share of the total cleaning market, and a 14.2% share of the kitchen and multipurpose sector. New Cif Express Direct to Floor cleaner, which does not require a bucket or rinsing, is available in three variants – Lemon & Apple Flowers, Antibacterial, and Wild Orchid & Velvet Flowers – and packaged in a 750ml bottle. Wipes is a format that is driving growth in the household cleaning category at 7.1% year on year. New Cif Antibacterial


• Cash & Carry Management • March 2014

Floor Wipes are available in packs of 15 with an Ocean Fresh fragrance. Domestos has been around for 85 years and one bottle of Domestos is sold every second in the UK. New from Domestos, Extended Germ Kill Ultra White & Sparkle Bleach cleans and whitens the toilet using a patented formula designed to cling to the bowl after every flush. Domestos has also introduced a new multi-jet nozzle for its Total Blast Toilet Gel to ensure better reach under the rim. Data: SIG.

Tailored solutions Diversey offers cleaning and risk management solutions for caterers and businesses. Business Solutions by Diversey is an integrated range of branded products designed specifically with businesses in mind. Using the company’s expertise in cleaning and hygiene solutions coupled with brands such as Cif, Persil, Domestos and Comfort, Business Solutions offers results across the vast majority of application areas, such as kitchen, washroom, laundry and general cleaning. The range is targeted at professional independent operators, including restaurants, caterers, hotels and the healthcare sector. Diversey believes that it’s vital to recognise that business needs differ due to frequency and duration of use. Using professional formulations designed specifically for the tasks faced by businesses on a daily basis will speed up working processes and reduce rewashing, returned dishes and general customer complaints, the company A key trend: multi-use products. maintains. It adds that saving money buying cheaper alternatives could prove to be a false economy in the long term. Diversey has worked with key customers, educating them on the need for a designated cleaning Business Solutions range to help end users achieve a five-star food hygiene rating. The key trend for caterers is the desire to have both taskspecific and multi-use products. For example, Cif Business Solutions Kitchen Cleaner 2in1 is a cleaner and a disinfectant in one.


Professional Cleaning Solutions for Catering

Specifically designed for Professionals

Powerful Professional Cleaning with Trusted Brand Names Complete Range - Products covering the vast majority of application areas of Kitchen, Washroom and General Cleaning Well Known Trusted Brands - Integrating Cif, Domestos, Sun, Persil & Comfort under the umbrella brand of Diversey's Business Solutions Professional Formulations - Created using Diversey's market leading expertise specifically for the professional user • Gives excellent results first time • Designed for daily, periodic and problem-solving tasks • Perfume-free products for food preparation areas • Utilises Diversey's Odour Neutralising Technology

laundry & cleaning Future plans from Diversey include promotions and additional products to broaden the Business Solutions range, which has experienced double-digit growth in the last 12-month trading period.

Getting it right According to Procter & Gamble, availability and value for money are the most important factors for household shoppers so it’s essential that retailers stock leading brands and ensure pricing is clearly visible at all times. Brand manager homecare Will Herbertson comments: “Being able to find products easily is also important to shoppers and P&G advises retailers to clearly lay out fixtures by room and then by task.” New Flash Liquid Gels can be used neat or diluted and deliver two-and-a-half times the cleaning power in every drop (compared with diluted Flash Lemon). They are available in Crisp Lemon, Cotton Fresh, Blossom & Breeze, and New Zealand Springs scents across 400ml, 520ml and 600ml formats. The launch has been supNew cleaning technology. ported by TV, print, in-store, digital and PR activity. In-car aircare is becoming one of the fastest growing areas of the market and Febreze has refreshed its in-car portfolio, offering a more compact product with a greater range of scent options. The Fairy Non Bio detergent and fabric softener ranges are targeting the mum and babies’ market with a marketing campaign under the banner ‘The Power of Soft’. New Ariel 3in1 Pods is the first detergent to use threechamber technology (keeping the agents separate until released individually in the wash), replacing Ariel liquitabs. The Lenor fabric conditioner range announced a new ‘deep-down softening formula’ and a full artwork change. The Daz brand has a new Regular variant and revised packaging to help create range recognition. There’s also the offer of a money-back guarantee. Ariel has upgraded its gel formula to work better at colder temperatures, saving up to 50% energy. Three new scents, Meadow, Wildflower and Vanilla, have been introduced across Febreze aerosols, candles, Set & Refresh and reeds, and Ambi Pur 3Volution and GP2 plug-ins. The vanilla scent is also available as part of Febreze’s in-car portfolio. In addition, Febreze has launched a Sleep Serenity collection – calming scents designed specifically for the bedroom. The range comes in Moonlit Lavender, Warm Milk & Honey and Quiet Jasmine scents. New to the market, Flash Magic Eraser is made from melamine foam, which, when water is added, hardens and forms little triangles that create scraping edges to lift stains.


• Cash & Carry Management • March 2014

The product is available in Original and Extra Power variants, as well as Flash Magic Eraser with Fairy. Finally, Flash Magic Eraser with Febreze has been designed to get rid of tough bathroom stains. P&G’s category management tool, www.shelfhelp.co.uk, can help retailers ensure they’re making the most of the opportunities that the homecare category offers.

Brand relaunch Jeyes has relaunched three of its Easy key products – Washing-up Liquid, Fabric Conditioner and Liquid Laundry – with new pack designs and improved formulations. The aim of the relaunch is to modernise the brand and help retailers take advantage of increased consumer demand for quality products and value alternatives to expensive household brands. Easy is available across wholesale and discount sectors in the UK and the relaunch brings a cohesive look to the range using colourful new pack designs that also aim to increase impact on shelf and differentiate Easy from its competitors. With an rsp of £1 for two Easy Washing-up Liquid packs, and £1 each for Easy Liquid Laundry Detergent and Easy Fabric Conditioner, the brand is aimed at consumers who want quality products at a competitive price point. Easy Washing up Liquid is available in four fragrance options – Original (with verbena), Lemon (with citronella), Antibacterial (with eucalyptus) and Pure and Gentle Aloe Vera – and now comes with a flip cap for ease of use, as well as offering 10% extra in pack.

Easy fabric conditioners: available in Buttercup, Daisy, Lavender, Raspberry, & Aloe Vera fragrances.

Easy Fabric Conditioner has a new condensed pack with a concentrated formula that still delivers 30 washes. Easy Liquid Laundry Detergent is now three times thicker, allowing for more washes per pack, and is available in bio, non-bio, colour and 3in1 variants.

For further information: Diversey (01604) 405311 Jeyes (01845) 757575 Procter & Gamble (0800) 716854 Unilever (0800) 776644


Success with IT Page 2 Plassey Food streamlines operations with Sanderson

Page 3 Boost sales efficiency with latest Mobile CRM App

Page 4 Protect your cash flow with Sanderson


Leading wholesalers drink to success with Sanderson Our drinks wholesale and cash & carry customers are saving time, optimising stock management, boosting staff productivity and enhancing customer services, using the Sanderson wholesale IT system, Swords. One of London’s leading wholesalers and distributors of drinks and tobacco, HT & Co (Drinks) Ltd selected the Sanderson system to support its growing needs and to integrate its many businesses. The company has also deployed Business Intelligence, enabling HT & Co to continually measure business performance with key indicators, which provide invaluable information for decision making. Furthermore, the latest Online Ordering solution from Sanderson will provide an additional sales channel, improving customer experience. HT & Co’s customers will be able to place orders 24x7 at their convenience, and easily view promotional offers – increasing sales further. Another London based business experiencing

Beer’s stock control. Preston Beer has also secured significant time savings, thanks to the system’s ability to optimise and schedule delivery routes. “It’s a task which used to take at least two hours each morning. Now it takes just minutes,” says Managing Director, Tony Oxley.

rapid growth is cash & carry Temple Wines. The company is using Swords to integrate its supply chain and provide visibility of information across the business. With instant access to real-time stock data, Temple Wines is making effective replenishment decisions, protecting essential cash flow and the system further benefits the company with faster sales order processing, enabling Temple Wines to deliver a high quality service to its valuable customers. Also enjoying the benefits of its investment in Swords is Preston Beer. The Sanderson system delivers better stock and warehouse management, transforming Preston

New company Global Liquor Concepts, trading as Drinks Direct, has launched its business with the Sanderson system to support and manage operations. Using the solution, the Cork-based company is optimising warehouse space with accurate stock information and customer services is also benefiting with better access to product and stock data – allowing representatives to provide fast response times and offer alternative products for out-ofstock items. “We are confident we have given our new business the best start with the Sanderson system which has already established strong operational foundations across the business,” says Thomas Desmond, Managing Director.

Page 1

Success with IT

Plassey Food invests in latest Sanderson wholesale solutions Sanderson is to supply its wholesale IT system to fresh and frozen food wholesaler Plassey Food, to support company growth and introduce more efficient stock management. Based in County Limerick, Plassey Food supplies a diverse range of restaurants and hotels in Southern Ireland. The company selected the Sanderson wholesale IT solution, Swords, as it stood out in the marketplace as the best system to integrate all operations and improve efficiencies across the business. The Sanderson solution will streamline operations and help the company provide excellent customer service, especially in the busy telesales department. Telesales will be able to process high volumes of orders with a fast automated system, increasing the number of orders

processed per day. And with greater visibility of stock and promotions, staff can also recommend alternative products for out-of-stock items – enhancing service levels and providing opportunities to up-sell and cross-sell. Plassey Food has also selected the Business Intelligence solution which provides powerful reporting tools to measure business performance, and help management make informed decisions. Don Flynn, Managing Director of Plassey Food, comments: “We’ve selected the very latest

Sanderson solutions to strengthen our business for future growth and help us provide the best customer service possible. The system tracks best before dates, enabling us to supply top quality stock to our customers, essential for our fresh foods range. Swords will further benefit the company by increasing staff productivity and providing additional sales opportunities through improved access to accurate stock information.”

About Plassey Food Plassey Food is based in County Limerick and supplies frozen and fresh produce to convenience stores, restaurants and hotels in mid west and southern Ireland. Plassey Food is a partner with leading brands such as Unilever, Birds Eye and Cuisine de France.

Boost sales using Sanderson Online Ordering Our latest online ordering system makes ordering faster and easier by enabling customers to place orders online at their convenience, 24 hours a day. This solution maximises sales opportunities and enhances customer service by offering a quicker, more streamlined ordering process. A mobile barcode scanner captures products for re-order and immediately uploads the details into the system, saving valuable time.

The Online Ordering system

• Increases sales – as customers can order 24 hours a day

Boosts customer satisfaction by making ordering quicker and easier for your customers

Page 2

Allows your customers to conveniently

place orders directly with you, whilst at their premises

Saves valuable time by eliminating the need to re-key orders

• Improves customer

communications and helps delivery scheduling – customers can instantly view promotions and a choice of delivery dates

“The Sanderson online ordering system looks great and works very well, and most importantly our customers agree. It’s a big success! Customers have said the website is easy to use and displays products in a clearer way. Having a user-friendly website is essential for helping us to retain customers and grow sales.” Chris Hughes, Managing Director, Regal Wholesale

Success with IT Sanderson is a publicly owned UK provider of software solutions to the delivered wholesale and cash & carry industries. Its wholesale IT solution Swords helps companies to streamline operations, reduce costs and increase efficiencies to drive their businesses forward. Swords is a single integrated system used by more than 150 wholesale and cash & carry businesses across the UK to manage operations and improve profits. The system integrates all wholesale operations, including telesales, sales orders, online ordering, mobile CRM and stock and warehouse management. The solution provides essential management information to support business decisions, enhance customer service and strengthen operations for future growth.

Boost sales with the latest Mobile CRM App Our latest Mobile CRM App allows you to elevate your customer service even further and boosts sales efficiency by providing 24-hour access to your Swords system via mobile devices. Using the latest smartphones or tablets, the Mobile CRM App enables staff to work more efficiently whilst away from the office with direct access to essential customer and stock information.

Customer Service benefits

Enhances customer service with faster response times to customer requests. Quickly retrieve invoices and statements, view sales history, check stock availability, submit return requests and much more

Improves response times to customer complaints by immediately recording and escalating issues to the relevant department for a timely response

• Promotes continual process improvements with a new customer survey function, allowing you to conduct research, such as customer satisfaction, service and compliance surveys

Sales Order benefits

Enables staff to maximise sales order efficiency during customer visits, with barcode scanning for fast order taking, instant quotations, and a brand new catalogue ordering facility, displaying product images for improved order accuracy

Business Productivity benefits

Saves time – hold more informed meetings with customers whilst at their premises, reducing follow-up actions back at the office

• Increases staff productivity – 24-hour access to real-time customer and stock information enables staff to work

remotely and provides business continuity, with improved data communications and more resilient access to Swords

Streamlines credit returns process by automatically submitting details, reducing paperwork and providing a visible audit trail

• Maximises efficiency with new integration with Google Maps and a new one-click speed dialling facility. Page 3

Success with IT

Wholesale managers – PROTECT YOUR CASH FLOW Many wholesale businesses are continually dealing with late or failed payments. The Sanderson wholesale IT solution, Swords, helps you to predict and prevent cash flow problems before they occur. And with over 20 years of industry experience, we understand the unique factors that impact the cash flow of wholesale and cash & carry businesses, such as real-time credit monitoring, stock management and collecting payments from your customers. Causes of cash flow blockage:

• 10% Having a good credit control team and process • 10% Clear terms and conditions

and payment schedules Incredibly, 13% of businesses say nothing can be done to minimise late payment.

Source: Forum of Private Business/Graydon

Prevent blockages from occurring and keep cash moving through your business using the Swords software, to monitor the entire process from start to finish. What methods are UK businesses using to chase unpaid debts? 29% Regular or continuous calling 21% Putting customer accounts on hold 17% Relationship building with customers

• • •

Visit our Sanderson website for latest blog posts and eguides. The Sanderson company blog contains all the latest news along with details of new developments and success stories designed to help your wholesale business get the most from your wholesale distribution software investment and get ahead in the market.

By pulling data from across your business processes, the Swords system provides real-time financial information to highlight any issues, giving you time to respond to potential cash flow blockages. What steps can you take?

Using the Swords wholesale solution, you can measure cash flow with realtime credit monitoring – which highlights customers with outstanding payments before you process sales orders. How does wholesale software help to solve cash flow problems?

The Sanderson system automates ‘one over one’ payments – improving cash flow, eliminating manual tasks, increasing staff productivity and saving you valuable time.

Publishing Director: Martin Lovell Published by Winlove Publications Ltd on behalf of: Sanderson Sanderson House, Manor Road, Coventry, CV1 2GF Tel: 0333 123 1400 Fax: 0333 123 1401 Email: info@sanderson.com www.sanderson.com/swords

Page 4

products & promotions Natural variant

In the mix MARS CHOCOLATE – Twix Mix has expanded its bitesize range with a single format. Each 37g bag of Twix Mix contains caramel and biscuit balls covered in milk chocolate. The single format offers retailers the chance to tap into increasing sales in the Bitesize segment, which has proven to be a growth category over the last couple of years and is now worth £589m to the industry (SIG). Retail excellence director Carrie Martin says: “The new single format follows the hugely successful Twix Mix pouch – its popularity highlights how much the Twix brand continues to be loved by consumers. ”The launch of Twix Mix represents the perfect collaboration of a muchloved brand and the bestselling bitesize trend.” The new single format is supported by point-of-sale material and a £9 million media spend across the Twix brand. Tel: Mars Chocolate (01753) 550055.

Berry nice PRINCES – Jucee, the squash and lunchbox drinks brand, has extended its squash range. New Jucee Cherries & Berries is now the tenth variant in the convenience sector range, which moved to a 1.5-litre price-marked pack format last year to meet retailer and consumer needs. Cherries & Berries is the nation’s fastest growing squash flavour, with sales growth of 30% over the last two years. The launch of the new Jucee variant will be the first time that the flavour has been available in squash format for the convenience and independent grocery sector.

DIAGEO – Gordon’s, the UK’s number one gin brand, has a new Elderflower flavour variant. Gordon’s Elderflower, which has a 37.5% abv, is a distilled gin with natural elderflower and flavourings. The rsp is £16.11 per bottle. The variant is also available in a premix can with an rsp £1.95. The new innovation is supported by a seven-figure marketing spend, a TV advertisement and 360-activation across all channels. The new yellow ‘butterfly’ packaging design offers shelf stand-out while still retaining the signature Gordon’s look. Data: Nielsen.

Tel: Diageo 020-8978 6000.

Going for gold MONDELEZ INTERNATIONAL – Cadbury Wispa Gold, the UK’s number one caramel-filled countline, has launched Wispa Gold Hot Chocolate. Available in a 246g jar and 27g sachet, both of which are Fairtrade certified, Wispa Gold Hot Chocolate makes a quick, easy-to-prepare drink, simply by adding hot water. The 246g jar is available in a case of six and the single-serve 27g sachets come in a case of 30. The launch aims to make the most of the strong growth in the instant flavours market and follows the success of Wispa Hot Chocolate, which has delivered 78% growth to the category. Data: Nielsen.

Tel: Mondelez International (08702) 400861.

Tea-m work TAYLORS OF HARROGATE – The new Taylors of Harrogate Fruit and Herbal Infusions range consists of six blended infusions – peppermint, lemongrass & ginger, chamomile & vanilla, spiced apple, sweet rhubarb & blackberry, and elderflower – and only uses ingredients certified by the botanic experts at the Royal Botanical Gardens, Kew. Laura Burton, brand manager, told Cash & Carry Management: “The insight that inspires Fruit and Herbal Infusions is simple: fruit and herbal teas have a bad reputation for letting consumers down when it comes to taste. We’ve teamed up with the experts at Kew to create a range that tastes amazing.” Bold packaging offers stand-out on shelf, while biodegradable teabags reinforce the brand’s sustainability credentials. Tel: Taylors of Harrogate (0500) 418898.

Fresh flavour WRIGLEY – The confectionery company has extended the range of its number one gum brand Extra, which has a 69% share of the UK gum category worth £189m and is growing by 8.3% year on year. Extra Ice Citrus is sugar-free and accredited by the British Dental Health Foundation – tapping into growing consumer interest in the oral care benefits of gum and the popularity of fruitflavoured gum. The launch is supported across UK cash & carries with ‘3 for 2’ multipacks that contain an outer of Extra White and Extra White Bubblemint, plus a free outer of Extra Ice Citrus to drive trial. Marketing plans include a combination of outdoor, in-store, digital and TV activity.

Data: Symphony IRI.

Data: Nielsen.

Tel: Princes 0151-966 7000.

Tel: Wrigley (01752) 752094.


Cash & Carry Management

• March 2014 • 39

products & promotions

Towering offer KEPAK CONVENIENCE FOODS – Rustlers has teamed up with Alton Towers Resort for one of its biggest on-pack promotions. Every standard Rustlers pack (excluding Noodles) will give consumers two-for-one entry to Alton Towers theme park, worth £48. There is also a competition offering a prize of a VIP stay at the resort for four, worth more than £800. There are 25 chances for runners-up to win a pair of tickets to the theme park. Kepak marketing director John Armstrong says: “As with our previous brand partnerships with the likes of Tomb Raider and Universal Studios, this promotion will capture the public’s imagination and create a buzz around the brand.” Tel: Kepak Convenience Foods (01772) 688300.

Brand extension

‘Wicked’ deal

New territory

SHS GROUP DRINKS DIVISION – Three WKD variants, namely Blue, Iron Brew and Green, are now available in £2.99 price-marked packs. Specially flashed cases (6 x 70cl bottles) of the £2.99 PMP stock have been launched exclusively in the cash & carry/wholesale/convenience sectors and the initial production run contains a WKD Brazilian promotional pack, incentivising trial of the new WKD flavour. The WKD ‘Braziliant PoS pack’ includes PoS materials plus a £1 off coupon redeemable against a case of 6 x 70cl bottles of WKD Brazilian Limited Edition. Tel: SHS Drinks (0800) 917 3450.

BRITVIC SOFT DRINKS – The soft drinks manufacturer has launched Ballygowan Natural Mineral Water. The naturally pure water is filtered through mineral-rich limestone before joining an aquifer of pure water deep underground. It is this journey that gives Ballygowan its unique mineral composition and fresh taste. Bottled at source in county Limerick, Ballygowan is already the market leader in Ireland (Canadean and Nielsen). The introduction of Ballygowan into the GB market marks its 30th anniversary as the first Irish bottled water brand, reports Britvic. Ballygowan Natural Mineral is available in still and sparkling variants as well as a mix of PET formats, and is offered to wholesale, managed convenience and grocery accounts. The formats include 50cl still and sparkling (rsp 65p), a 75cl PET (rsp 94p), and a one-litre PET size (rsp £1.09). Tel: Britvic Soft Drinks (0845) 7581781.

Big bag TATA GLOBAL BEVERAGES – Tetley Decaf – the No.1 brand for decaffeinated tea – is now available to the foodservice market in larger, 440 tea bag packs. Tetley Decaf contains just 0.2% of the caffeine of standard black tea and brews to a colour characteristic of Tetley black tea blends, which customers will find reassuring, believes the company. The larger packs join Tetley’s out-ofhome tea range, which includes Tetley Redbush, Green & Lemon, Sweet Cranberry, Summer Fruits, Camomile, and Tetley Black Tea. Tel: Tata Global Beverages 020-8338 4000.

MONDELEZ INTERNATIONAL – Cadbury Eclairs (a brand worth £16.4m – Nielsen), has introduced Cadbury Eclairs Velvets to the market. The new offering has a soft caramel and chocolate centre encased in Cadbury milk chocolate. The launch is supported by a £2m UK marketing investment including TV, outdoor, PoS, digital and sampling activities and follows the success of Cadbury Eclairs Orange Twist and Hazelnut Twist variants, which were the top two NPDs within indulgent candy last year. This new offering aims to attract new and younger consumers to the brand. Tel: Mondelez International (08702) 400861.


• Cash & Carry Management • March 2014

Well spotted MARS INCORPORATED – The newlook packaging of Pedigree treats sees the portfolio streamlined from 17 subbrands into five key brands. With colours designed to enhance each brand’s identity, the new packaging aims to reduce the time it takes for customers to find what they are looking for by 1.8 seconds. On-pack messaging includes vitamin and mineral content and the fact that each product is free from artificial colouring. The reinvigorated range features bestselling brands from Rodeo and Schmackos, and includes Markies, Biscrok and Jumbone. Tel: Mars Incorporated (0800) 738800.





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


Major cash generator In spite of all the problems besetting the tobacco trade, total UK value is more than £15 billion. Of this, factory-made cigarettes (FMC) account for £13.6 billion and retail sales of roll-your-own tobacco £1.9 billion (Imperial Tobacco estimates 2013). Changing rules and regulations continue to make life tough “We have invested, and plan to continue to invest, in this for the tobacco industry. iconic brand, which has taken pride of place on retailers’ Gayatri Barua-Howe, Imperial Tobacco communications tobacco units since 1979. manager, expresses his ‘extreme disappointment’ over the “Despite the challenging economic conditions, more than composition of December’s provisional agreement by the one in 10 packs of cigarettes sold in the UK carry the L&B European Parliament on the Tobacco Products Directive. logo. This very British brand will continue to bring in millions The one positive he picks out is the allowance of rollof pounds in gross profit for the trade for years to come. your-own pouches to be sold in 30g and over instead of the “It is important to highlight that premium priced cigarettes originally proposed 40g and are still being purchased in the over. UK, although a growing number A vote is due to be taken next come from illicit sources.” month on other proposals in the Regarding capsule cigarettes, directive. Barua-Howe says that these Referring to the impact of account for over 350m packs standardised packaging in the Gayatri Barua-Howe, Imperial Tobacco sold. In the UK last year, this UK, he points out that a similar segment generated more than communications manager move in Australia has coincided £15m in retail sales value – with a rise in illicit trade. And “thanks to the success of brands looking at initiatives in Germany, he such as Lambert & Butler, which has harapplauds that country’s efforts to edunessed the latest cutting-edge technolcate youngsters about smoking. ogy to create L&B Fresh Burst”. Turning to statistics in the domestic In December, JPS Duo was launched industry, Barua-Howe says: “On averas an addition to the John Player Special age, a UK retailer will have over 150 family. The JPS range is said to account visits from tobacco shoppers each day for around one in 10 UK cigarette sales. and this generates more than £310,000 “The introduction of 2 in 1 Crush Ball turnover each year. technology into the range makes JPS “The economy-priced cigarette secDuo a perfect choice for tobacco contor is growing at just shy of 10% year on sumers looking for more control over year. Brands such as the JPS ‘Silver’ their smoking experience and great range have shown sales increases quality at incredible value.” month on month. Barua-Howe believes that the “Silver superkings have become £1.9bn-a-year turnover figure for rollincreasingly popular, highlighting the your-own (RYO) will increase this year. growing numbers of adult smokers who “RYO adult smokers’ search for value are purchasing cigarettes above king has seen reduced pack sizes that consize. Currently 47.2% of economy cigatain a combination of tips and papers (or rettes purchased in the UK are larger both) becoming increasingly popular. than this size.” Our ongoing consumer research shows To meet this demand, Imperial that 62% of RYO tobacco shoppers preLaunched at the end of last year. Tobacco broadened its Player’s range fer their tobacco to come with papers with a Smooth variant and changed the 20s to 19s last year. (AMR 2012). This has led to an uplift in sales of our 8g GV Says Barua-Howe: “With 60% of sub-economy tobacco Smooth handy packs and influenced our decision to include shoppers choosing 19s pack formats, Player’s Smooth king quality papers in packs of Golden Virginia Classic and GV size and superkings 19s offer the same high quality and value Smooth.” for money for which the Player’s brand is renowned.” At the end of last year Imperial Tobacco launched Gold He adds that although there has been an improved Leaf 9g, sold in a pouch with papers. It has an rsp of £2.79. performance by Imperial Tobacco’s lower-priced tobacco Standard and PMPs are available while stocks last. brands over the past year, an increase in ‘value-seeking The company’s Golden Virginia Classic (green) comes in behaviour’ has led to a slight dip in sales of brands such as 12.5g, 25g and 50g pack sizes, with papers included in the Lambert & Butler. 25g and 50g packs.

‘The economy-priced cigarette sector is growing at just shy of 10% year on year’


• Cash & Carry Management • March 2014


*Source: ITUK Estimates 2013.


For Tobacco Trade rs O nly

tobacco Last year Golden Virginia Smooth was rebranded as GV Smooth, a change which is said to have had a positive effect on the brand. In cigars, the supplier’s Classic currently accounts for just under 26% of the small cigar sector and almost 10% of the total market. “The distributive channel continues to be a vital link in the supply chain, serving both the independent and multiple retail trade,” says Barua-Howe. “As the tobacco category moves towards the 2015 display ban and the associated increase in sales of illicit tobacco, the challenges faced by wholesalers and cash & carries will grow. “However, these challenges represent significant opportunities for the channel as UK retailers will increasingly rely on C&C/wholesalers to ensure they can continue to offer a firstclass service to the general public and provide customers with their preferred brands.” He adds that the price difference between premium priced cigarettes and illicit and non-UK duty paid packs is the single most important driver of illicit trade. “HMRC and law enforcement agencies face a very difficult task as the UK has one of the highest excise tax regimes in the world for tobacco taxation. It is taxed much higher in the UK than in continental Europe. In order to fight back against the criminals, we must ensure we take every opportunity to reduce the impact of illicit tobacco on our businesses and our communities.” Data: Imperial Tobacco UK estimates.

‘Flawed evidence’ Jeremy Blackburn, JTI head of communications, has firm views on the review into plain packaging. He says: “The evidence for plain packaging is flawed, the methodologies of the existing studies are flawed and they fail to account properly for the smoking behaviour of adults and minors. “It is vital that all the possible impacts are considered, including the effects on criminality and the illegal trade and the future viability of businesses in the tobacco supply chain, including manufacturers, packaging suppliers and shopkeepers.” And commenting on the EU proposal to ban 10s, menthol and smaller pouches of tobacco, Blackburn says: “This will mean the lowest price will now be the street price sold by criminals who peddle to anyone, including children. Meanwhile the Government’s Exchequer will have to plug the gap left from the flood of non-duty UK-paid cigarettes and roll-your-own tobacco which will come into the UK. “JTI, along with many others, has expressed concerns to the Government and it is disappointing that they did not push back on this. We now urge them to put in place the resource that is going to be needed to stop the influx of illegal tobacco into the UK.” He adds that while the company supports the European Commission’s objective of reducing youth smoking, the EU’s Tobacco Products Directive will not achieve this goal. “Increasing the size of health warnings to 65% will not deliver any public health benefit as people already understand the risks associated with smoking.”


• Cash & Carry Management • March 2014

Blackburn asserts that JTI is committed to supporting cash & carry/wholesalers in keeping their customers up to date and maximising their tobacco profits. In this respect, it also places great importance on educating tobacco room staff. Turning to the growth of value cigarettes, he says they now have a 43% volume share of the ready-made cigarette (RMC) market. More than one in three cigarettes sold in the UK is a value brand, equating with more than 14bn cigarette stick sales a year. “Sterling is the top performing value brand. And last year, we launched Sovereign Blue, which became the fastest growing cigarette in the UK since its launch in February 2013. It currently has a 2.5% share of the RMC market. “We have also just extended the successful Sovereign range with a smooth variant, Sovereign Smooth Flavour.” Blackburn adds that value is also the fastestgrowing RYO price segment. “JTI has identified a clear opportunity to drive even further growth with the recent launch of Holborn Smooth Taste – our firstever traditional value RYO offering. “In capsule technology, Smooth variant in fastwhich accounts for a 5.8% growing range. share of the RMC category, our brands have generated over £134m in retail sales value in 2013, leading to a 31.2% volume share of the capsule segment. “As well as Sterling Fresh Taste On Demand, we have brought B&H Dual to market with a sub-premium price point; it has already achieved a 10.4% volume share of the UK’s capsule cigarette segment.” Among the smaller pack sizes launched on the market is JTI’s Holborn RYO Smooth Taste 10g. Says Blackburn: “Retailers should ensure they’re offering a wide choice of RYO brands and pack formats, including 10g, 12.5g, 20g, 25g and 50g packs. “Last year we also launched Amber Leaf ‘3 in 1’ 10g. Available nationally in C&C/wholesale and symbol accounts, the pack contains 30 filters, 50 papers and a 10g mini pouch of tobacco in a crushproof box.” He adds that price-marked packs have a 59.9% volume share in the tobacco market (cigarettes and RYO) in independent and symbol outlets, and that RYO PMPs alone have grown by 14.8% year on year in volume in independents and symbols. “In these tough economic times, it’s important that manufacturers and retailers demonstrate to adult smokers that they are getting the best possible choice and value when making their tobacco purchase. Price marking does


tobacco exactly this, while also driving footfall, customer loyalty and associated purchases.” Reflecting JTI’s close association with the C&C/wholesale channel, Nikkita Mulchandani, retail club & marketing manager at Imperial C&C in north London, says: “Our collaboration enables us to maximise profits in this area. “JTI is particularly helpful when it comes to new product launches by providing us with point-of-sale material and other resources, ensuring we’re providing independent retailers with not only the latest innovations but also the best possible price.” The tobacco supplier has also announced the launch of Silk Cut SuperSlims Choice (rsp £8.25). It taps into the capsule cigarette segment, which has grown by more than five times in the past year. It replaces Silk Cut SuperSlims Purple and Menthol. Data: Nielsen MarketTrack.

‘Make or break time’ With the display ban in smaller stores looming, the next 12 months are going to be make or break for many tobacco brands, says Alan Graham, head of marketing at Scandinavian Tobacco Group (STG UK). “From new product variants and ranges through to new pack sizes and formats, the tobacco category is certainly going to be one to watch.” Graham adds that well-known, big selling brands should always be a key focus for C&C/wholesalers as consumers look for reassurance from labels they can trust. “This is particularly true of the No.1 cigar brand, Café Crème, which has just celebrated its 50th anniversary. The Café Crème family now accounts for 40% The recently launched Orange variant. of the UK cigar market and is worth over £74m here alone.” STG UK recently introduced a redesign across the range “to safeguard its future success by ensuring it remains relevant to today’s cigar smokers and continues to offer huge sales opportunities for C&C/wholesalers in the years to come.” In the medium/large cigar category, Henri Wintermans Half Corona has a 60.7% share. Its retail sales value stands at £10.8m, putting it in sixth place among all cigar brands. Graham says: “Offering value for money remains key within the tobacco category, but the onus is now on manufacturers to ensure they’re offering the cheapest tobacco products.


• Cash & Carry Management • March 2014

“Once the display ban is in effect in smaller stores, consumers will ask for the cheapest RYO range or cigar, not the second cheapest. As a result, there’s likely to be increased competition in this area. “At STG UK, not only do we offer the cheapest RYO range gram for gram with our Salsa brand, but also incredible value for money in cigars with our Moments range.” With value for money becoming a huge factor, Salsa has often been the choice over more mainstream brands. Graham continues: “We launched our Salsa RYO tobacco range in response to this demand, offering a quality product at an exceptionally low cost. Since its launch, it has gone from strength to strength, with value sales now worth £2 million. Its £3.29 price-marked pack variant has also been incredibly popular with retailers, consumers and cash & carry/wholesalers.“ In the miniatures segment, which commands 66.5% of cigar sales, STG UK’s Moments range “has proved incredibly popular with the trade”, says Graham. “Not only has the Blue variant taken up position as the sixth leading miniature cigar since its launch, but it is now positioned as the eighth leading cigar in the total market.” Focusing on niche products for C&C/wholesalers, Graham points to ‘unique flavour variants’ such as Café Crème Filter Arôme or additive-free tobacco ranges such as Natural American Spirit (NAS), which underwent a redesign at the end of last year. The supplier also recently launched NAS Orange, which come in packs of 20 with an rsp of £7.99. It joins the Blue and Yellow styles, which have the same rsp. Data: Symphony/IRI.

RYO performing well Despite the changing nature of the UK’s tobacco market, driven by new legislation and the emergence of e-cigarettes, the RYO accessories market is continuing to perform well, says Eleni Koulara, marketing manager for Republic Technologies. In this respect she highlights filter tips – a segment in which Swan is the major player in the £66m market, which has seen 10% growth in sales value and 6% in volume. She says the supplier has responded to emergent trends with innovative new product development; many RYO smokers are becoming more discerning, particularly in their choice of filter. The result is the launch of an ‘ultra slim’ Swan filter, claimed to be the thinnest ever Swan filter, ‘providing smokers with a smoother taste and an enhanced tobacco flavour’. “Many people opt for roll-your-own,“ says Koulara, “because it enables them to make thinner cigarettes, which means they smoke less. “The size of filter has risen up the RYO smokers’ agenda, particularly among people looking to reduce what they smoke for reasons of finance or health. “At the same time people are looking for RYO products that are more natural and have less environmental impact. These factors will underpin our NPD this year as we introduce products that take account of people’s growing






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tobacco interest in the environment as well as providing RYO smokers with the choice, quality and value they’re seeking.” Koulara continues: “We have also launched a new vertical ZIG-ZAG kingsize rolling papers case, enabling retailers to save 50% shelf space compared to the previous horizontal pack. “This is a simple, but significant, change as we know the trade want to maximise shelf space and still offer products their customers are looking for.” Data: Nielsen year ended October 2013.

Support for POR deals BAT UK’s priorities this year will be to continue supporting POR deals and to drive new product innovation, says Anna Petrova, group brand manager FMC UK & Ireland. “We will stay in close contact with our delivered wholesale and cash & carry customers. POR is a key driver of sales for Rothmans this spring. We’re currently offering retailers a 15% POR so they can buy at volume now and then see the benefits in their profits throughout the year. We have advised them to stock up at their local C&C. “We continually focus on working with the distributor to ensure retailers can choose between different formats, pack sizes, and price-marked and non price-marked packs.” Last year BAT UK launched its full capsule range for Pall Mall, and Petrova says: “We expect to be able to support our menthol and capsule customers until 2020, based on current negotiations as part of the EU Tobacco Products Directive. “Of course, the directive is not finalised, and even after it is, the UK will have to adopt the new rules into law. But right now, the future for capsule continues to look bright.” Pall Mall, she claims, was the first brand to include a capsule across its entire range, giving adult smokers the choice of clicking the capsule in the filter to release a fresh taste or keeping the cigarette unclicked to retain the original blend. The former Pall Mall Click On has been merged with the new Blue Click On king size. Says Petrova: “Our new Pall Mall 20g is, at the time of writing, the lowest priced 20g in the market.” Referring to PMPs she comments: “With financial pressure leading to increased focus on prices Price marking matters to BAT. across the board, and while


• Cash & Carry Management • March 2014

UK tobacco tax is the highest in the EU, anything that an independent retailer can do to demonstrate competitive pricing can only be beneficial. “By stocking PMPs, retailers are proving to their adult tobacco customers that they are getting the best deal on their purchases. “We strive to provide the adult consumer and retailer with the best possible value, and the inclusion of PMPs within the portfolios of all our key brands is one of the ways we do this. PMPs also help the adult consumer to navigate between offers in difficult economic times.” Pall Mall, Rothmans Value and the growing roll-your-own category account for a high proportion of BAT UK’s pricemarked pack volume. Petrova says that, in terms of total cigarette volume, PMPs accounted for 32.1% in 2013 compared to 28.2% in the previous year. In independents and symbols, this percentage is even greater – 59.4% (54.6%). Pall Mall RYO 25g packs are presently being scaled down to 20g (rsp £5.79). Data: Nielsen year ended July 2013.

E-cigarettes An emerging influence on the conventional tobacco market is the e-cigarette. Latest figures suggest that around 1.3m people in the UK now smoke them – double the figure in 2012, says law firm Bond Dickinson. Opinion on their use, both generally and in the workplace, is split. Supporters argue that e-cigarettes should be actively promoted as a healthy alternative to smoking and that employers should play their part in encouraging staff to give up smoking by using this method. The ‘antis’ are concerned that their use glamorises smoking and could, in fact, encourage non-smokers (including minors) to take it up. Many are unconvinced that they have no health ramifications. Among the countries which have banned e-cigarettes importation and sale are Brazil, Singapore and Mexico. In the UK, the British Medical Association is concerned that while e-cigarettes have the potential to reduce tobaccorelated harm (by helping smokers cut down and quit), a strong regulatory framework is required for their use. This would ensure they are safe, quality assured and effective at helping smokers to cut down or quit, restrict their marketing, sale and promotion, prohibit their use in workplaces and public places to limit second-hand exposure to the vapour exhaled, and ensure their use does not undermine smoking prevention and cessation by reinforcing the normalcy of cigarette use.

For further information: BAT UK (01296) 335000 Bond Dickinson (0845) 415 0000 Imperial Tobacco (0117) 963 6636 JTI (0800) 163503 Republic Technologies (01494) 533300 Scandinavian Tobacco Group UK 020-8731 3400


energy drinks

Moving with the times The key trend in the energy drinks category is the development of variants with fewer calories. Red Bull, the UK’s number one functional energy drink, has launched Red Bull Zero Calories. Containing no calories and sugar, the drink also offers a new twist on the classic Red Bull flavour and gives retailers the opportunity to drive incremental sales in the fastest growing soft drinks category in the UK (IRI). The launch addresses the message of positive everyday energy whilst removing the sugar and calorie barrier for the consumer. Healthy living remains high on the agenda in the UK, with 71% of consumers believing it’s now more important than ever to be healthy. Red Bull Zero Calories addresses the need of 87% of consumers who state calories and sugar as a barrier to purchase (TRU). Red Bull Zero Calories is a healthier choice for the healthconscious consumer, offsetting guilt and giving permission for an everyday ‘energy hit’ without the taste compromise. Available in a 250ml can, four-pack and also a 250ml £1.19 price-marked can, Red Bull Zero Calories should be stocked in addition to the current range to maximise the sales opportunity, maintains the company. The introduction of Red Bull Zero Calories is backed by a £2m above-the-line advertising campaign, including outdoor, print and digital throughout key cities in the UK. Red Bull is also driving direct trial of the product via the Red Bull Wings team, who will be out in force in their iconic Minis sampling over one million cans direct into the hands of UK consumers. Gavin Lissimore, head of category marketing, says: “Red Bull Zero Calories is the second low-calorie product we have brought to the UK market, giving consumers an everyday


• Cash & Carry Management • March 2014

energy option without compromising on taste, with zero sugar and calories. This is a really exciting piece of activity for us to deliver against consumer health concerns but also to drive further penetration into the category. With the strength of the Red Bull brand, it will add value to the category and ultimately drive profits for retailers.“

Flavours and formats Worth £491m, energy drinks in impulse are growing at 7%, with big can energy formats driving the category, up by 20% year on year. “Energy drinks are the second fastest growing category in impulse soft drinks and have been the key driver of growth in soft drinks for a number of years now,” says Adrian Troy, head of marketing for AG Barr. “Energy drinks are already evolving as the market matures and we are seeing a range of formats and flavours as consumers look for choice and manufacturers seek to enter this attractive market segment.” In the 500ml big can format, flavours are fuelling impulse market growth at 48% by value. Six of the 10 fastest selling 500ml lines are Rockstar flavours. AG Barr says the cash & carry trade should give energy drinks the space they merit. Depots should take account of which brands and sub-sectors of the category are growing to ensure the range reflects the current trends. In particular, flavoured energy needs to be given more space to ensure retailers can offer consumers the choice they require.


energy drinks

The big-can format has gained popularity amongst energy drink consumers.

Rockstar offers a range of six flavours with vibrant packaging. Amongst the core 16-24 market, Rockstar is sought out as a better tasting energy drink, with consumers really connecting with the range of flavours (Out of the Box). Rockstar SuperSours has already delivered over £12m in retail sales since its launch last year. “Another big trend in the energy market is the growth of low-calorie variants at 17% year on year,” Troy points out. The low-calorie energy market is currently worth £43m for retailers and is estimated by AG Barr to grow to £200m over the next five years. “However, there is currently little consumer choice available in this growing sector,” says Troy, “and the launch of Rockstar Pure Zero will fulfil both the demand for a low-calorie option and the demand for great tasting flavoured energy. Rockstar Pure Zero is available in a 500ml big can format in our popular Fruit Punch flavour. The new variant offers the full Rockstar energy hit with zero sugar. “The launch of Rockstar Pure Zero will fill a genuine need in the market and depots should stock up to keep their energy sales soaring in 2014,” Troy concludes. All data Nielsen unless otherwise stated.

Maintaining momentum Research from SalesOut, which condensed EPoS information from over 100,000 retail purchase points (MAT volume data November 2013), shows that the Boost Drinks range is the number two energy brand (where stocked). This sample does not include the multiples, making it a more accurate view of the category for C&C/wholesalers. Managing director Simon Gray says: “There has been a really strong performance by the core energy range which is clearly seen as fantastic value by the consumer while yielding a strong margin for the retailer. This year, I am expecting to see increased demand for the one-litre PET bottle which I feel has great potential to grow in off-licences, for example, as part of a take-home offering.”


• Cash & Carry Management • March 2014

Last year saw the launch of Boost’s biggest trade campaign to date – Champion of the Independents – which was designed to raise awareness of Boost’s positioning as being dedicated to the independent retail sector. The Champion of the Independents campaign continues in 2014 and includes direct communications with all trade customers. A selection of branded items and retailer initiatives will reinforce the campaign message. As well as being the only brand totally focused on the independent retail sector, Boost is the only brand that covers all three sectors of sports and energy drinks – stimulation energy, glucose and sports/isotonic – with both plain and price-marked packs. This year will see more promotions, PoS and product launches to ensure that Boost maintains its position as the number two functional energy drinks brand within the impulse channel. This will include specific activity for both trade and consumer audiences. Gray concludes: “Boost is now considered a valued brand, not just a value brand, and we will continue to maintain this by offering great tasting products at great prices.” Boost Sport has been revamped with new packaging and is now available in Orange, Mixed Berry and Tropical flavours in 500ml PET bottles, with a 50p PMP option. The refreshment energy category is worth £334m in the UK, showing year-on-year growth of 8.3% by value and 7.2% by volume. According to Boost, with the market leader holding around 96% market share, there is potential for a branded competitor to offer consumers a choice in terms of price and range options. New-recipe Boost Active Glucose is now available in Original and Orange varieties and in redesigned 500ml and one-litre PET bottles, price-marked at 59p and 89p respectively. Boost Sport also has new packaging, and is available in Orange, Mixed Berry and Tropical flavours in 500ml PET bottles, with a 50p PMP option. Sales director Al Gunn told Cash & Carry Management: “Having invested heavily in consumer and trade research over the last 12 months, we feel we have identified some huge opportunities for sales growth. “Given the market leader’s dominance, we believe there is a need for a meaningful challenger brand, providing it has a smart price point and of course taste and margin credentials. With our new Sport and Active ranges, we can offer retailers a very strong proposition. Price-marked packs. “We know our customers will embrace this opportunity and in turn consider a more balanced approach to the range they offer and then allocate shelf space accordingly.







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energy drinks “As we only serve the independent trade we know how critical it is that we provide this channel with great competitively priced products that will not be available in the multiples.”

Stratospheric campaign Cott Beverages, manufacturer of the value energy drink Emerge, plans to reach a wider audience with a strategy that includes student targeting and a new campaign. Building on the brand’s marketing in 2013, which helped Emerge become the UK’s fastest growing value functional energy drink (SIG), this year’s approach will see a continued level of investment in the brand’s profile whilst promising to raise the bar on creativity. Emerge’s ‘Face in Space’ campaign offers fans a ‘unique and out of this world’ opportunity to see their face in space. Designed to resonate with the brand’s core 16-24 year-old target market and promote the brand’s mischievous personality, the Emerge ‘Space Programme’ will comprise a combination of advertising, social media and experiential activities in addition to an on-pack promotion due to hit the shelves in April. Alongside this campaign and wider marketing, Emerge is conducting a programme of outreach activity to ensure it speaks directly to its growing number of loyal student and gaming followers. The brand is launching a student sampling campaign via HelloU, which sees products placed in student starter packs to encourage trial and will be supported by a programme of wider marketing. Helping to cement the brand as the go-to choice for the gaming community, Emerge has also secured sponsorship of Insomnia, the UK’s biggest gaming festival, as well as a partnership with a ‘top secret’ game which is set to launch later this year.

According to research data, Emerge is the UK’s fastest growing value functional drink.


• Cash & Carry Management • March 2014

Maintaining its position as the only value energy drink brand on TV, Emerge has also confirmed that it has extended its contract with Channel 4’s 4Music Network with a summer schedule set to hit screens from July. Brand manager Calli O’Brien told Cash & Carry Management: “We’re delighted to be embarking on another exciting year for Emerge. Plans include building on the brand’s success and further promoting our ‘Sorts You Right Out’ message. “By delivering daring and disruptive marketing campaigns we hope to firmly establish Emerge as a voice to be heard in the energy drink sector, whilst maintaining and growing the loyal following we currently enjoy long into 2014.”

BUYER’S VIEW FROM HQ Deepa Rocha, senior trading controller at Time Cash & Carry, says: “Energy drinks play a crucial role within the company’s overall sales mix and account for over 25% of sales of soft drinks. “The energy drinks category within our business has seen a massive increase year on year, with the growth being driven by core lines such as Red Bull, Monster, Relentless, Lucozade, etc, as well as by own-brand value products. Our growth in 2013 with Red Bull alone was 49%. “The prospects for spring will be dependent on weather. I personally think that core energy drink suppliers will try to penetrate the market early in spring and invest in price to capture market share. We are planning some big activity in line with Landmark. “The focus in the energy market (and soft drinks in general) seems to be on reduced sugar and calories to encourage healthier options for consumers. “Also, the football World Cup in Brazil this summer is expected to increase the focus on exotic flavours. I also believe the Red Bull Zero launch will be a categoryleading innovation. “We’ve seen double-digit growth within the energy category and we are very conscious of stocking the right range and working closely with our suppliers. I don’t think there are any brands in long-term decline. “Suppliers that are currently in growth with us are the ones who are willing to invest time and money in establishing a joint business plan. This is reflected in our performance with them, which is way ahead of energy category industry trends. “When it comes to promotions, there are some good deals to be had on energy drinks like Red Bull and Lucozade and I think that in early spring we will see some more very competitive deals.”



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The Relentless range is now worth £56 million.

Capitalising on the rising popularity of energy drinks, Coca-Cola Enterprises (CCE) has added a new flavour to its Relentless range, which is now worth £56 million. Relentless Cherry replaces Relentless Berry Juiced and is available in a 500ml plain can with an rsp of £1.39, as well as a £1 PMP. The same formats are offered for the brand’s sugar-free variant, which has been relaunched as Relentless Origin Ultra, with refreshed packaging in a silver and white design to target the brand’s core audience of 18-30 year olds. The transformation reflects consumer feedback which showed that while shoppers enjoyed the benefits of the sugar-free Relentless variant, they preferred a more subtle low-calorie message on pack (Marketing Sciences). Caroline Cater, operational marketing director, says: “The energy drinks sector continues to grow and is now worth

‘By stocking big brands alongside a few value alternatives and including a range of sugar-free variants, C&Cs will make the most out of their energy drinks sales’ Dave Turner, Coca-Cola Enterprises’ trade communications manager £923.8m. As a brand that delivers considerable value to the sector, it is important that Relentless continues to innovate and bring products to market which support our customers by directly targeting shoppers’ needs. The new Cherry variant received positive feedback when tested by consumers and we expect it to perform well. “This innovation, together with the relaunch of our sugarfree variant, Origin Ultra, will help retailers better cater for consumers’ needs and offer new products which stand out on shelf to drive growth.” The energy drinks sector is currently worth £324m to independents and symbol retailers and is growing by 3.1%. Trade communications manager Dave Turner comments: “Energy drinks are a must-stock for cash & carries. Brands


• Cash & Carry Management • March 2014

make up the vast majority of that value share and have helped to drive market growth as they have invested heavily in engaging above-the-line campaigns. “Big brands like Monster Energy and Relentless are performing well and delivering value to retailers. Value brands that have entered the market in recent years deliver on volume, so we’d expect retailers to try and find a balance between cash margin and rate of sale.” Turner continues: “The growth of energy drinks has been driven by the wave of innovation, but the sector can understandably be difficult for cash & carry owners to navigate. “With so many different brands, flavours and formats, it can be challenging for retailers to understand which products are the best fit for their customers. Cash & carries should look to established energy drinks brands that are investing in the future of the sector with multi-million pound marketing campaigns and suppliers that can offer ranging advice. “By stocking big brands alongside a few value alternatives and including a range of sugar-free variants to give consumers choice, cash & carries will make the most out of their energy drinks sales.” Monster Energy launched a promotion in partnership with Call of Duty in October which saw the brand give away ingame rewards exclusive to Monster fans. Trade support resulted in sales growth during the campaign period of over double that of the growth experienced in the year as a whole. According to CCE, retailers should expect to see further innovation in flavours and formats in the coming year to help bring new consumers to the category. “Sub-segments will also continue to form,” adds Turner. “Monster Energy has been ahead of this curve following the launch of its Rehab range of still energy drinks in 2012 with a Tea and Lemonade variant. The success of this innovation led to the introduction of two new flavours at the beginning of 2013: Green Tea and Orangeade. “Shoppers are increasingly looking for sugar-free variants. That’s why we have invested in the sugar-free ranges for both of our brands by relaunching Monster Absolutely Zero last year and renaming and revamping the packaging of the sugar-free Relentless variant. Retailers should look to stock these alongside regular versions.” PMPs include Relentless at £1 and Monster at £1.19. All data Nielsen unless otherwise stated.


energy drinks Unique flavours Bulldog Power Energy Drink, manufactured by Sun Mark, recently released two new variants into the market. Trends show that the average consumer is growing more adventurous when it comes to food and drink and is curious to try something new. The new additions of Strawberry & Mint and Lime & Mint are unique as no other energy drink brand has these flavour combinations. Added to this, the vibrant colours of the packaging have been designed to maximise shelf stand-out. In these difficult economic times, it is important that retailers demonstrate that the products they have on offer are of the best possible choice and value to help sales grow. According to Sun Mark, part of the appeal of the Bulldog Power brand is the consumer perception of value in relation to the product range and, more importantly, product Unique flavour quality. combinations. The new flavoured variants are priced at 49p per can and provide value to the consumer when compared with other similar flavoured energy drink products. Furthermore, this low price is achieved without compromising on quality or taste, claims the company. The new variants are packed into 12s rather than the 24pack market norm, meaning retailers do not need to commit a great deal in order to give the products a try. The popularity and growth of the Bulldog Power brand is increasing and sales of the Strawberry & Mint and Lime & Mint variants to date have been triple what was expected.

Winning formulas According to Suntory Beverage and Food, flavour is at the top of the purchase decision hierarchy for soft drinks and the fastest growing flavour profile is ‘exotic’, experiencing 10% year-on-year value growth (KWP). Lucozade, the nation’s favourite sports & energy drinks brand (Nielsen), has launched two new flavours: Lucozade Sport Brazilian Guava Flavour and Lucozade Energy ‘The Brazilian’ Mango & Mandarin Flavour. Brand development director Dave Stratton says: “Limited editions are great at attracting new users and delivering incremental sales to the sports and energy category. “With 63% of Britons expecting to increase their leisure spending as a consequence of the 2014 FIFA World Cup Brazil (Mintel), we are confident our Brazilian-inspired variants will drive further category growth. “During a World Cup year we see huge growth in TV viewing figures and sporting participation as a consequence, presenting an opportune time for retailers to capitalise on the


• Cash & Carry Management • March 2014

latest sports and energy new product development from Lucozade.” Lucozade Energy Caribbean Crush and Lucozade Sport Caribbean Burst are performing well, with the latter now worth over £7m at retail sales value in just over a year (Nielsen). In addition, evidence shows that exotic flavours appeal to the younger shopper profile, which is currently driving soft drinks growth as a whole (Mintel). The two new Brazilian variants feature in a £12m Lucozade marketing campaign that includes TV, sponsorship, experiential, digital and in-store support. Lucozade Energy ‘The Brazilian’ Mango & Mandarin Flavour is available in 380ml PMPs and 500ml packs. Lucozade Sport Brazilian Guava Flavour comes in 500ml standard and PMPs, and a 500ml four-pack. All rsps are in line with equivalent Lucozade packs. Lucozade Energy has launched a £10m campaign that includes TV, cinema and out-ofhome advertising, defining the brand’s ‘YES Moment’ initiative with the strapline: ‘That moment when energy flows’. The ‘YES Project’ on-pack offer returns and consumers stand the chance to win prizes every hour, including spring break adventures in Cancun, European city breaks and various ‘YES’ goodies. Marketing manager Lesley Stonier says: “Lucozade Energy is the biggest player in the category, driving growth with its 7.3% yearon-year performance (Nielsen) and, as a result, we want to reward our loyal consumers whilst appealing to a new audience for the market. “We are committed to ensuring we maintain the excitement of the brand and will continue to offer strong, value-led promotions alongside this activity to benefit retailers.” As an additional campaign feaOn-pack promotion. ture, Lucozade Energy has renewed its relationship with festivals, such as the official sponsorship of the Snowbombing Road Trip, and on-pack offers include a competition to win tickets to some of the biggest festivals in the UK. To be in with a chance of winning, consumers simply need to purchase any promotional pack of Lucozade Energy and enter the unique promotional code at www.lucozadeenergy.com.

Creating brand awareness Value and volume sales of energy drinks are growing by 10% and outselling colas in the impulse channel. According to Nigel Paine, GB commercial director for outof-home at Britvic Soft Drinks: “This can largely be attributed to the fact that consumers are increasingly feeling


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energy drinks the need to top up their energy levels throughout the day and looking for immediate consumption solutions. Soft drinks are well placed to deliver this – they offer the dual benefit of energy and refreshment in a way that other categories, such as chocolate, cannot. “Given today’s demanding lifestyle, this continues to be a purchase driver for a wide audience, with energy drinks appealing to target a broad range of consumers. Sports nutrition and sports drinks, however, offer a different function. Whilst consumers are increasingly feeling the need to top up their energy, sports drinks have a specific role to play within an active lifestyle. “For example,” says Paine, “the Gatorade sports nutrition range is for pro-minded athletes who understand that nutrition is an important part of their sports kit and are looking for nutritional products to aid performance. “These drinks appeal to a smaller audience than energy drinks consumers as they offer a more targeted function. However, Gatorade distribution has grown significantly in recent years, with more listings in sports specialists, health and nutrition stores and gyms.” The awareness of Mountain Dew Energy is being driven by marketing investment which has seen a significant presence online. The brand’s Facebook page remains one of the top food and drink pages in the UK, with over 300,000 fans. Recognising the importance of ingredients and the continued role these have to play in delivering functional benefits, Britvic recently launched Mountain Dew Sugar Free,

the first sugar-free PET format drink in the UK energy category. Mountain Dew Sugar Free responds to the growing consumer demand for sugarfree energy drinks. Research shows that 46% of 16-24 year-old energy consumers spend less on energy drinks due to sugar content versus 40% of total soft drinks consumers (PepsiCo/Britvic research). Sugar-free as a category has grown year on year in value by 23% versus regular energy drinks at 16% (Nielsen). Britvic is dedicated to driving continued category growth and is always looking at new ways to refresh its offering, ensuring it stays relevant to existing and new consumers. Recent innovation includes a new stimulant energy drink called Mountain Dew AMP. Manufactured by Britvic and PepsiCo, this combination of New from Mountain Dew. AMP Energy powered by Mountain Dew delivers the familiar citrus taste of Mountain Dew, but contains extra caffeine, B vitamins and taurine for those who want high-impact energy, without compromising on flavour. Britvic’s support for its energy and sports nutrition brands includes significant investment in Mountain Dew and the launch last year of the brand’s first-ever UK TV advertising campaign. The campaign’s tagline ‘The Energising Taste of Awesome!’ showed off the brand’s personality, which is designed as energetic, cool and fun. With both the 20 and 30second cuts, the advert was aimed at bringing extreme thrillseeking and refreshment together in one hit, just like the drink. The Gatorade brand is being backed with a direct-to-consumer promotion that highlights its sponsorship of the Tour de France. Consumers stand the chance to claim free products if British riders win. The ‘We Win, You Win’ campaign is being run in cycling wholesale outlets. All data Nielsen unless otherwise stated.

For further information: AG Barr (01236) 852400 Boost Drinks 0113-240 3666 Britvic Soft Drinks (08457) 581781 Coca-Cola Enterprises (08705) 336699 Cott Beverages (01509) 674915 Red Bull Company 020-3117 2000 Sun Mark 020-8575 3700 Suntory Beverage and Food (0800) 096 3666


• Cash & Carry Management • March 2014


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snacks & biscuits

The inbetweeners Innovation is a key driver in a category that increasingly takes its cues from consumers’ modern, on-the-go lifestyles. According to latest research provided by Burton’s Biscuit Company, the UK’s £2.4bn biscuit market continues to provide great profit potential for the cash & carry/wholesale trade, particularly for operators that recognise the importance of ‘treatier’ biscuits. The value of biscuits in the broader fast-moving consumer goods category, and in attracting consumers into shops, is reflected by the fact that 99% of UK households buy biscuits 37 times a year (Kantar). Biscuit shoppers buy more items and spend more money more frequently than the average convenience shopper but they are very spontaneous, with 33% of biscuits bought on impulse versus the 14% convenience average (him!), which is where ‘treatier’ biscuits come to the fore. “Nearly 45% of consumer spend in this category is on ‘treatier’ biscuits, either as part of an everyday routine or a special occasion,” comments David Costello, category and activation controller for the brand. “Shopkeepers will be looking to cash & carry outlets to stock the ‘treatier’ biscuits that their customers are looking for. However, the key is to offer value for money. Retailers recognise that their customers are more savvy than ever before and are seeking clearer pricing on the bestselling brands they trust. “That’s why we’re advising cash & carries to focus more on price-marked packs,” adds Costello. “Retailers know that they reassure consumers and that they’ve become synonymous with value for money, and with that in mind shopkeepers will be actively seeking branded price-marked packs from cash & carry depots. “Brands are more impulsive and as one-third of all biscuits are bought on impulse, you can’t underestimate the importance of leading brands,” continues Costello. “Biscuits and hot drinks are really complementary and there’s no reason why cash & carry depots shouldn’t promote them together, in the expectation that retailers will do the same at store level. It shows how cash & carries can help to educate retailers in the benefits of profit-boosting, crosscategory promotions.” New product developments from Burton’s are generating new profit opportunities for the cash & carry trade. The launch of Cathedral City Baked Bites, made with real Cathedral City cheddar in an exclusive licensing agreement with Dairy Crest, has introduced a new brand to the £500m savoury biscuit category. The partnership takes Cathedral City outside of the dairy category for the first time. Cathedral City Baked Bites are aimed at a broad spectrum of consumers (particularly families with children aged 10 and over). They are available in a five snack-pack bag with an rsp of £1.69, a large sharing bag (rsp £1.59), and a 35g grab bag (rsp 59p).


• Cash & Carry Management • March 2014

Exclusive licensing agreement with Dairy Crest.

Burton’s Fish ‘n’ Chips, the 1980s savoury snack brand, has been reintroduced after topping a poll in The Sun newspaper for the retro snacks readers most wanted to see back on shelf. Pack sizes include a 40g grab bag (rsp 49p), a 5 x 25g multipack (rsp £1.59), and a 125g share bag (rsp £1.39).

An ever-changing category Mondelez International uses key consumer insights to shape its product innovations. Trade communications manager Susan Nash explains: “Our research has identified that people snack with a purpose that corresponds to a physical, emotional or mental need state – fuel, treat or boost. “On average, consumers snack three times a day and consume five products (MEU/NuVista research), and the trend towards eating small amounts between meals, or as a meal replacement, is increasing. “Wholesalers should take advantage of the innovation in the marketplace,” adds Nash, “especially from the market leaders who invest in research, development, technology and marketing.” Belvita Breakfast – the UK’s first breakfast biscuit that is also clinically proven to slowly release carbohydrates over four hours – has achieved £50m year-on-year sales. The brand has recently launched new flavour variants, including Cranberry breakfast biscuits and Strawberry and Yogurt Duo Crunch. Belvita has taken the number one spot in healthy biscuits and number four in total biscuits. The afternoon is the most important time of day for consuming snacks out of home (Kantar). Confectionery is the number one snack in the afternoon and the chocolate singleeats segment is the largest sector, reaching a value of


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snacks & biscuits Bringing snacking to life • Get

the basics right first. Availability is key and a strong core range is critical. Offering choice by stocking both price-marked and non-price-marked packs is also important. Speak to suppliers for support and information to help advise retailers on how to drive sales by understanding their shoppers’ missions and creating great displays in-store. Use manufacturer PoS material and position in high traffic areas. Ensure NPD and promotional products are stocked in advance of consumer media exposure to meet demand and help maximise the opportunity. Advise retailers about spending strategy. Some retailers go for products with the highest profit margins – not always the best approach. A great margin on a product that doesn’t sell is not helpful.

Sweet biscuit and Cadbury Dairy Milk combination.

almost £794.4m. Cadbury Dairy Milk, the nation’s favourite chocolate brand, makes up 11% of the countlines segment. Cadbury Dairy Milk LU and Cadbury Dairy Milk Ritz are the brand’s biggest launches of 2014, bringing together LU sweet biscuits and Ritz savoury crackers with Cadbury Dairy Milk milk chocolate. Another new on-the-go product, Dairylea Dunkers Flavours features Pineapple Punch cheese spread with Mini Ritz crackers and Mighty Mature cheese spread with Mini Ritz crackers, both available in a pack of four and made with allnatural ingredients. Data: Nielsen unless otherwise stated.

Wholesalers can get help on educating retailers at www.deliciousdisplay.co.uk. Kettle Foods has launched a new lower-calorie snack range, Kettle Baked Chips, aimed at health-conscious female consumers who are looking for a ‘lighter, better-for-you snack that doesn’t compromise on taste’. Kettle Baked Chips contain fewer than 100 calories and 70% less fat (vs standard ready-salted crisps) per 25g serving. Made from real food ingredients, the new chips are available in two variants: Sweet Chilli and Cream Cheese & Chive. Marketing director Andrew Slamin says: “Better for You is a significant and growing category in snacking, with handy pack sales up by 62% within impulse. We know that 58% of consumers now actively look for healthy options and 44% examine the fat content when buying food.” Kettle Chips, the UK’s number one premium crisp brand, is also available in handy 40g bags, with a first-ever on-pack promotion on the core range. Kettle Chips is linking with Hand Picked Hotels – a collection of 20 individual and historic country house hotels in the UK and Channel Islands. Consumers can win one of five twonight stays, or one of 15 one-night stays, for two people. Entry is via a text-to-win mechanic or online via the Kettle Chips website. The promotion is featured on six million handy packs across the top four seasonings of Lightly Salted, Mature Cheddar & Red Onion, Sea Salt & Balsamic Vinegar and Sea Salt & Crushed Black Peppercorns, and the top three pricemarked 40g packs (Lightly Salted, Mature Cheddar & Red Onion and Sea Salt & Balsamic Vinegar). Kettle Chips is growing ahead of the total snacking market, with value sales up by 6.1% year on year (vs 4.1% for the total market). Within convenience, sales of Kettle Chips are growing at 10% year on year (vs 7% for total convenience). The promotion is supported by a full range of PoS


• Cash & Carry Management • March 2014

• • •

Source: Mondelez

including wobblers in cases, dump bins for retailers, and branded bus stops and pallet wraps for C&C depots. The link with Hand Picked Hotels is also communicated directly to retailers via the new Kettle Chips Independent Retailer Community (sign up at www.tradewithkettlechips/register) and via retailer specific competitions. All data Nielsen.

A new take on an old favourite New from Tayto is Mr Porky Handcooked Finest Quality Pork Scratchings, which has been created to tempt the next generation of crackling converts. Mr Porky offers merchandising solutions, including pub cards, carry bags, display cases and clip strips, for various occasions, and Tayto advises retailers to hang or merchandise the products at eye level to optimise the chance of purchase, where formats allow. Pork Scratchings generate incremental spend from shoppers, increasing a consumer’s basket and/or bar spend, and so do well when merchandised alongside other snacks and nuts, or in associated aisles like beers, wines and spirits, points out the company. Sold in shops and bars for the past 30 years, Mr Porky is the No.1 pork snack brand in the UK (IRI). The brand’s latest offering.


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snacks & biscuits

New cooking method

Figures show that almost two-thirds of shoppers buy something on impulse because of a promotion or display (him!). This highlights the importance of displaying good value and the impact the right promotions can have on sales. Regular promotional offers and PMPs like McVitie’s Medley bars or McVitie’s Chocolate Digestives roll wrap, which are priced at 55p and £1.75 respectively, give customers the tools to provide top-selling biscuit brands at attractive price points. United Biscuits also believes that layout and a promotional plan are vital in order to maximise sales. For example, new products from a longstanding brand such as Jacob’s can change a consumer’s perception of the total brand, as seen with Jacob’s Oddities. The launch of Jacob’s Oddities brought younger shoppers into the savoury biscuit segment and made Jacob’s more relevant to different consumption occasions. Taking this into consideration, United Biscuits advises wholesalers to regularly stock new products to support sales of their core range, enabling their customers to purchase products that drive fresh interest into the overall category.

New from PepsiCo, Walkers Pops is an ‘air popped’ snack containing 50% less fat than standard potato crisps and is made using a high-pressure cooking method that ‘pops’ the potato chips without having to fry them. Walkers is producing 29,000 stackers which will provide an eye-catching display for the single 23g packs. These are available in Original, Melted Cheese & Crispy Bacon, and limited-edition Sour Cream & Onion (all rsp 63p). Walkers Pops also come in multipacks of six, with an rsp of £1.99. All data Nielsen. Walkers Sunbites is back on television for the first time since 2011 with a campaign that features a new character, ‘Cardboard Jane’, who has her snacking repertoire, and life, transformed after trying Walkers Sunbites for the first time. KP Snacks is running its biggest-ever promotion for The brand has seen volume sales double in the past twoMcCoy’s. Fronted by celebrity ‘pub landlord’ Al Murray, the and-a-half years, with value sales up by 32% in the first two Rio McCoy’s Local campaign features an weeks of 2014 (Nielsen). on-pack promotion on McCoy’s handyWalkers Sunbites are made with 67% packs, multipacks and price-marked wholegrain, including whole oats, corn packs. and wheat. They contain 30% less fat UK consumers can nominate their than regular crisps and no artificial local pub to be recreated in Rio, via colours, flavours or preservatives. the brand’s promotional microsite The brand is available in multipacks www.mccoys.co.uk/riolocal. With the of six in five flavours: Sun-Ripened ‘man crisps’ key target audience of adult Sweet Chilli, Sour Cream & Cracked males in mind, the idea is that if you Black Pepper, Cheddar & Caramelised can’t be at the football game, the best Onion, Roasted Onion & Rosemary and place to watch it is with your mates in Lightly Sea Salted, all with an rsp of your local pub. £1.79. Once the winning pub has been Sun-Ripened Sweet Chilli and Sour selected, consumers can enter for a Cream & Cracked Black Pepper are also chance to win one of 15 pairs of trips to available in single bags (rsp 51p). the McCoy’s Local in Rio. There are also United Biscuits UK recently A £1m-plus campaign. 10,000 McCoy’s trophy glasses available relaunched its McVitie’s brand with a to be won instantly. £12m multi-media advertising spend. The £1m-plus campaign is being supported by a media Representing the biggest campaign of its kind for United partnership with The Sun. Biscuits, all of the company’s sweet products (with the exception of go ahead!) now sit under the McVitie’s brand. Three 30-second TV commercials aim to celebrate everyday biscuit eating moments with the strapline ‘Sweeet’. CEO Martin Glenn says: “Our Masterbrand campaign for Burton’s Biscuit Company (01727) 899700 McVitie’s is the result of 12 months of extensive customer Kettle Foods (01603) 744788 research in which we aimed to get to the heart of the emoKP Snacks (0845) 601 7583 tional role biscuits play in our lives. McVitie’s has come to Mondelez International (08702) 400861 represent 40% of the everyday biscuits market in the UK.” PepsiCo 020-8332 4000 As part of the campaign, all of United Biscuits’ savoury Tayto 028-388 40249 brands, including Cheddars and Mini Cheddars, have been United Biscuits UK 020-8324 5000 re-branded as Jacob’s.

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• Cash & Carry Management • March 2014




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ice cream

Meeting consumer demand The popularity of new and exotic flavours and a growing luxury ice cream market create the perfect playground for new product development. Following R&R Ice Cream’s acquisition of Fredericks Dairies last year, approximately 20% of the company’s annual turnover is attributable to the wholesale and cash & carry channel, making it an important market for the business. R&R has added to its Nestlé range with the launch of the KitKat Cone ice cream. Cones are the sixth biggest sector in the market, worth £74.8m (Nielsen).

serving. It is ready to serve in a fast, single-step process. Both Kerrymaid Angelito and Kerrymaid UHT Frozen Yogurt Mix can be stored at ambient temperature, simplifying storage and ordering, and reducing costs for cash & carry outlets as well as vendors. AG Barr has launched IRN-BRU ice cream lollies, which are available as single-serve 100ml lollies (non price-marked and £1.19 price-marked pack) and multipacks of 3 x 100ml lollies (non price-marked). The company also recently extended Rubicon, the UK’s number one exotic juice drink brand, into the ice cream and ice lollies sector and achieved £2m retail sales value in its first year (Nielsen). Rubicon Mango 110ml push-ups are available in standard and 89p PMPs, with Passion and Lychee push-ups in 89p PMPs only. The range also includes Rubicon Mango Ice Cream Swirl and Rubicon Mango Fruit Exotics in 750ml tubs (£2.99 PMPs) and a four-pack of 80ml Mango push-ups.

Creating mass appeal

Oreo Sandwich is a new addition to the Oreo ice cream family and features vanilla ice cream sandwiched between two layers of cocoa flavoured wafer. R&R has also introduced a range of three Cadbury Creme Egg ice cream skus. These include a stick, mini cone and tub format. The Cadbury Creme Egg Stick (3 x 90ml) consists of vanilla ice cream with fondant sauce covered in Cadbury milk chocolate. The Cadbury Creme Egg Mini Cone (8 x 25ml) contains vanilla ice cream in a biscuit wafer with a fondant sauce and a head dipped in Cadbury milk chocolate. The 480ml Cadbury Creme Egg Tub features vanilla ice cream, fondant sauce and chunks of Cadbury chocolate. R&R’s line-up range – the top performing impulse products across its portfolio – includes: Oreo Cone, Cadbury Flake Cone, Nestlé Smarties Pop-Up, Cadbury Nuts About Caramel, new Cadbury Dairy Milk, Cadbury Crunchie Blast, Nestlé Fab, R. Whites Lemonade lolly, Ribena lolly, and Nestlé Fruit Pastille lolly.

‘A C&C essential’ According to Adrian Coulter, development chef for Kerrymaid: “Ice-cream is an essential part of our summertime culture, and yet just under a third of sales are generated out of season, making the category a cash & carry essential all year round.” Across all brands, frozen yogurt sales have doubled in the last three years (Mintel). Kerrymaid UHT Frozen Yogurt Mix is virtually fat free and contains less than 100 calories per


• Cash & Carry Management • March 2014

Last year Mars Ice Cream extended the breadth of its range by taking its biggest brands into new formats and price points, tailored to meet the changing needs of the market. The launch of Mars and Snickers Minis introduced over 300,000 incremental buyers in 2013 (Kantar), which helped lead to an overall growth of the Mars and Snickers ice cream brands by 27% and 30% respectively (IRI).

Mars will unveil a new and revamped Galaxy Ice Cream pack design this year. The sleeker packaging aims to generate greater consistency across the total Galaxy brand. With the growth of the ‘big night in’, retailers are encouraged to cater for shoppers who are buying chocolate ice cream as a dessert or treat to share during an evening at home. Beechdean Ice Cream Group has signed a new licensing deal with Twentieth Century Fox Consumer Products to become the UK’s ice cream and frozen desserts category partner for The Simpsons. The partnership will kick off with The Simpsons 85ml


ice cream splits, consisting of an ice cream centre with a choice of a raspberry or strawberry frozen fruit lolly outer. The new products are expected to hit the market in the second quarter of 2014 with an rsp of 90p. The launch will benefit from a marketing campaign, as well as the 25th global anniversary celebrations of The Simpsons. Stockists of the Beechdean Ice Cream Group range already include 3663, Ice Cream World and Palmer & Harvey.

Häagen-Dazs Secret Sensations Choc Fondant and Secret Sensations Crème Brulee 457ml sharing size are now the fifth and sixth bestselling skus in the Häagen-Dazs range. The range features a new patented technology that creates a liquid centre of gooey sauce, enveloped by Häagen-Dazs ice cream. For more information, PoS and stocking advice, retailers can visit the dedicated trade website: http://haagendazstrade.co.uk/index.html. All data IRI.

Core variants Unilever is a leading ice cream manufacturer with a 46% total value share of the market and over £460m in value sales. Ben & Jerry’s has added two new variants to its core range, which now consists of four flavours: Peanut Butter Me Up, Blondie Brownie, Karamel Sutra and Dough-ble Whammy. Ben & Jerry’s Peanut Butter Cup has been introduced to the Classics range in a 500ml takehome tub format. Other developments from Unilever include the addition of a Salted Caramel variant to the Carte D’Or Classics range and the introduction of a mint flavoured four-piece Cornetto multipack. Recently launched Magnum snacking products include: Magnum After Dinner; Magnum Mini Pots (available in individual 140ml tubs with a new Chocolate & Raspberry variant); and Magnum Mini Baileys (in multipacks of six). All data IRI.

Specialist ice cream distributor Ice Cream World has over 25 years’ experience and supplies to all sectors, including cash & carries, offering a national distribution network through 28 depots with local call centres. With recognised accreditation in wholesale, storage and distribution, Ice Cream World promises a 24-hour lead time on ordering, with a five-unit minimum order, as well as a sixdays-a-week delivery service, with Sunday cover in the peak season. Accurate sales data in variable formats to suit individual account requirements can be supplied to ensure stores are meeting performance standards. A full EDI invoicing and ordering capability is also available. Ice Cream World’s group sales in 2013 were in excess of £70m. For further information on suppliers to Ice Cream World, visit www.icecream-world.com.

Special nights in The world’s number one luxury ice cream brand HäagenDazs, manufactured by General Mills, is currently worth £47m in total value sales and £14.5m within convenience. Current consumer buying trends indicate that sales of indulgent, premium products are still in growth within convenience as consumers seek to treat themselves during nights in at home, instead of meals out. This is reflected within luxury ice cream as the sector saw 14.6% year-onyear growth.


• Cash & Carry Management • March 2014

New developments Activity at Suncream Dairies last year included the launch of the Premium Sorbets and award-winning Gelato Gold ranges, as well as the rebranding of Mellow Gold ice cream. A new warehouse and cold storage facility also means the company will be able to hold much greater stocks in readiness for spring and summer demand. Gelato Gold is available in nine traditional and contemporary flavours and there’s also a choice of ripple sauces and inclusions, which are available in five-litre scooping trays with easy-clean lids, ideal for Napoli scooping freezer cabinets. Premium Sorbets contain less than 2.5% fat, all-natural fruit purees and real champagne, and are available in five flavours: Lemon, Orange, Raspberry, Mango and Marc de Champagne. Suncream Dairies has also relaunched Mellow Gold ice cream in new branded four-litre tubs.

For further information: AG Barr (01236) 852400 Beechdean Ice Cream Group (01494) 563980 General Mills (01895) 201100 Ice Cream World (01209) 313182 Kerrymaid (01784) 430777 Mars Chocolate (0845) 045 0042 R&R Ice Cream (01677) 423397 Suncream Dairies (01827) 282571 Unilever (01372) 945000


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C&C Management March 2014  

C&C Management March 2014  

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