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MAY 2013

NEW 3663 strategic review leads to proposed RDC closure Caterforce confident of further expansion


Costco gives UK public the chance to shop online

PRICE-MARKED PRICE PRICE-M M MARKED PACKS PACKS 71% of shoppers are more likely to buy a product with a price mark* 3.85 million shoppers bought juice on a IRUÂ…¡SURPRWLRQLQWKHODVWPRQWKV ÂśIRUÂ…¡SURPRWLRQLQWKHODVWPRQWKV To T o stock up now email info@gerberjuice.com or call   

Spotlight on Sanjay Wadhwani of Wanis

* Source Him! 2011 ** Source Kantar Worldpanel Worldpanel data daata based on 52 weeks to 17th March 2013

The business magazine for cash & carry/delivered wholesalers

INSPIRING SCOTTISH WHOLESALE Scottish Wholesale Association 2013 annual conference 14–16 June • Crieff Hydro, Crieff, Perthshire

The Scottish Wholesale Association invites you to attend its annual conference at ‘Scotland’s leading leisure resort’, Crieff Hydro, Perthshire. As always, an outstanding business programme has been put together. The conference is also about having fun – there is a programme of activities for all the family. Attend the conference from Friday to Sunday: Delegate rate per couple: £1,200 Single delegate rate: £900; partner: £300 Attend the conference from Friday to Saturday or Saturday to Sunday: Delegate rate per couple: £976 Single delegate rate: £800; partner: £176 Option to stay on Thursday evening: £65 DBB Children aged 3-16 (sharing with parents in family room): £40 per night Children aged 2 and under: free

PROGRAMME OF EVENTS Friday 14 10.45am 11.00am 11.20am 12.20pm 1.00pm 2.00pm 7.00pm

June AGM (members only) Welcome and introduction The Big Debate Business session Lunch Business session Mexican themed reception and dinner

Saturday 15 June 9.15am Business session Afternoon Leisure activities 6.30pm Formal banquet followed by champagne breakfast (1.30am on Sunday) Sunday 16 June Morning Breakfast and depart

All prices exclusive of VAT at 20%

For details contact executive director Kate Salmon kate.swa@btconnect.com • tel: 0131 556 8753 • www.scottishwholesale.co.uk


Unrivalled experience There’s certainly plenty going on in the wholesale sector, not least with Booker finally getting the go-ahead for its takeover of Makro. On-trend as usual, Cash & Carry Management has some changes of its own to announce. First, after sterling service over 12 years, Mervyn Gilbert has handed the editorship of the magazine to me, although we will not be losing his in-depth knowledge of the sector as he will still be taking an active role in the magazine as news editor. Many of you will already know me, not just from my last year as contributing editor to this magazine, but from my many years devoted to this channel as editor of another magazine in the sector, and previously as news editor of The Grocer and Convenience Store going back to the days when Nurdin & Peacock was still a force to be reckoned with. My joining up with Mervyn, and managing editor Kirsti Sharratt, who recently celebrated 25 years on the magazine, means that Cash & Carry Management editorial team’s already unrivalled experience in our sector just got stronger still, and we look forward to providing you with even better coverage and insight of the entire wholesale and cash & carry industry. We’ve strengthened the team further still with the addition of Amber Aitken, who has become our features editor, and I am sure you will all make her welcome when she gets in contact. These are exciting times in wholesaling and I’m looking forward to being part of it.

The OFT is looking into the plan to integrate Mace with Costcutter ... see p.4





swa update








wines, spirits & rtds


confex conference


customer cares


products & promotions




soft drinks


beers & lagers


Managing Editor

Kirsti Sharratt


John Wood

News Editor

Mervyn Gilbert

Features Editor

Amber Aitken

Media Sales Manager

Clare Phillips

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

Business Development Manager David Ford

Fax (01342) 712101

Publishing Director

Email mail.winlove@btconnect.com

Martin Lovell

4,560 July 2011–June 2012 John Wood editor


ISSN 1352-254X

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

Cash & Carry Management

• May 2013 • 3

news IN BRIEF Makro all-clear Booker’s takeover of Makro was finally given the green light last month. In its final report, the Competition Commission announced that it had “unconditionally cleared the completed acquisition”.

Safety standard Bestway Group has again achieved the ISO 9001, OHSAS 18001 and BRC Global Standard for Storage and Distribution certificates for safety and quality.

Forecourt deal SPAR UK and Harvest Energy have combined to launch a totally branded package for the symbol group’s forecourt retailers. Cross promotions linking shop purchases to money off fuel will be available. The SPAR logo will feature on fascias and on pumps.

Dual award Sun Mark, of Greenford, Middlesex, a member of Landmark Wholesale, has won the Queen’s Award for Enterprise in International Trade for the fifth year running, while managing director Dr Rami Ranger MBE has received the Institute of Directors director of the year – large company – award for London and the south-east.


Wholesaler to close RDC 3663 is planning to close its regional distribution centre at Scarisbrick, near Southport, following what is being described as ‘a strategic review of the company’. Over 100 people who work there – the majority in finance and telesales – have been informed by letter, which talks about ‘ongoing geographical and operational challenges, as well as capacity constraints and rising repair and maintenance costs’ associated with the site. The delivered wholesaler is understood to be offering

staff alternative positions at a new site in Wakefield, West Yorkshire, where building work is believed to be in progress, although there was no confirmation to this effect from 3663. However, as there is considerable distance between the two locations, few of the employees are likely to accept, unless they relocate. At present, the nearest existing 3663 depot to the

one at Scarisbrick is at Salford, Manchester. There is also a sister Bidvest warehouse at Oldham, which acts for leading national foodservice chains. A brief statement issued by 3663 includes the note that the company’s objective is “always to avoid any potential job losses, minimise the impact, and support our valued employees in any business change. “This is a proposal at this stage and no decision will be made without full and proper consultation with the employees involved.” Tel: 3663 (0370) 3663 000.

Symbols merger: OFT steps in The plan by Palmer & Harvey and Costcutter to form a £5bn joint buying group called The Buyco (Cash & Carry Management: March), involving the integration of Mace and Costcutter, is not yet a fait accompli. It has yet to gain approval by the Office of Fair Trading. Darcy Willson-Rymer, chief executive officer of Costcutter Supermarkets Group, said: “We can confirm that the merger of the Mace stores into Costcutter from P&H is being considered by the OFT. We are fully complying with their request for information. “The impact on market competition was part of our considerations when completing the deal with P&H and we are therefore confident that the OFT and – should it prove necessary, the Competition Commission – will agree with our position. “Ultimately, this deal is

• Cash & Carry Management • May 2013

Anxious wait for Willson-Rymer (left) and Etherington.

about bringing together two groups of independent retailers to enable us to get lower prices for all members.” P&H chief executive Chris Etherington added that the delivered wholesaler was also liaising with the OFT on the matter. Explaining the OFT’s involvement, spokesperson Bola Ajayi commented: “We are considering whether this agreement has resulted in the creation of a relevant merger situation under the

merger provisions of the Enterprise Act 2012 and, if so, whether the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the UK for goods or services.” The OFT is seeking written representations from interested parties. Tel: Palmer & Harvey (01273) 222100. Tel: Costcutter (01904) 488663.



Foodservice plan progresses Palmer & Harvey, which last year announced that UK field sales director Huw Davies (pictured) would be spearheading a plan for its van sales operation to target the foodservice sector (Cash & Carry Management: October 2012), has given further details of how the initiative will work. Under Davies, who is md of the P&H Direct operation, deliveries are being made to a variety of outlets, including cafés, snack bars, garden centres, sandwich shops and pubs. The vans stock leading fmcg brands, covering crisps, chocolate countlines, soft drinks, chewing gum and ‘key catering essentials’, like coffee and tea. A P&H statement said that operators would benefit

from ‘specialist impulse category advice, competitive prices and great promotions, saving the hassle of lengthy telephone/web ordering or visits to the cash & carry’. In another company development, the specialist savoury snacks van sales service, Snacksdirect, has launched an extended range, offering retailers ‘a full savoury snacks category for the first time’, including crisps, snacks and nuts, as well as biscuits and cakes. In addition to P&H Direct and Snacksdirect, the van sales division includes Sweetdirect, under md Chris Gott. The three call on 1,000 businesses an hour and make over 50,000 customer calls every two weeks. The moves follow the

Double raid on C&C A ‘large quantity’ of cigarettes and tobacco was stolen in two raids last month on Booker’s King’s Lynn cash & carry. Norfolk police said that thieves forced their way through door shutters to gain access.

The two robberies took place four days apart. Police are looking for a blue Mini Cooper with a white roof which was used in the twin attack (registration number VAO4 CTZ). Tel: Booker Group (01933) 371000.

Adrian Hancock Adrian Hancock, 50, former co-owner of Hancocks Cash & Carry, has died after an eight-month battle with cancer. He ran the chain with his brother Andrew until its management buy-out last year. The business was

established by the Hancocks’ late father Ray. Adrian, who is survived by his wife and four children, had been with the company since leaving school. Tel: Hancocks C&C (01509) 216644.


acquisition of the Walkers van sales operation last year, which created the UK’s largest field sales force. Snacksdirect gives retailers ‘competitive pricing, great advice and exclusive promotions, all on the retailer’s shop floor’. Jim Newsome, managing director direct van sales, said: “Van sales have long been an important part of our business. “We’ve seen strong growth recently, and in the current economic climate, retailers have found direct van sales to be a useful way to maximise returns and get expert category advice, without having to leave their premises to stock up.” P&H’s plan to set up a £5 billion joint buying group, The Buyco, with Costcutter is being considered by the OFT (see p.4). Tel: Palmer & Harvey (01273) 222100.

Fairway growth Fairway Foodservice added £7m to group turnover last year – £494m compared with £487m. Although that was modest versus 2010/11, when there was a £57m surge, chief executive Chris Binge is confident of more substantial progress this year. He told Cash & Carry Management: “It would have been great to have had another £6m, and hit half a billion, but we should achieve that in 2013.” The group, which is based at Hipperholme (Halifax), is on the verge of signing at least one new member. In recent months it has launched over 100 ownbrand ambient lines. The total could reach 300 by the end of the year. Tel: Fairway Foodservice (01422) 319100.

Awards sponsor Specialist drinks wholesaler Gordon & MacPhail is the official title sponsor of the 2013 Highlands & Islands Food & Drink Awards. The Elgin-based family business, established in 1895, stocks over 4,500 product lines, including an extensive wine list and a wide range of spirits, craft beers and ciders. It also carries every distillery bottling of single malt available in the UK, including the awardwinning range from its own Benromach Distillery. Director of UK sales Stephen Rankin said: “The Highlands & Islands Food & Drink Awards are extremely important because they

showcase the quality and diversity the region has to offer. The awards (in their ninth year) enable producers to demonstrate that being located in the Highlands & Islands is by no means a barrier to success.” Categories include new business, healthier food & drink, environment, development of export markets and restaurant of the year. Tel: Gordon & MacPhail (01343) 545110.

Cash & Carry Management

• May 2013 • 5


Apex reaches the summit Blakemore Wholesale’s retailer of the year is Apex Store, of Kenton, Newcastle upon Tyne. It was selected from 360 independent businesses across England and Wales, picking up £11,000 worth of prize money to spend in the wholesaler’s Gateshead cash & carry. Stores were judged on a range of criteria, including internal and external standards, customer relationships, product range, merchandising and local community involvement. Blakemore Wholesale sales director and competition judge Tony Bromwich said: “The standards to which the store operates, the friendliness of the staff and the mutual relationship with their customers made the judges’ decision easy.” Apex Store owners Chris Blake and Stephen Ridden commented: “This has given us such a boost that we have begun searching for a second branch.” They received £1,000 worth of credit to spend at the Gateshead C&C for being a regional winner and £10,000 for taking the overall award. The wholesaler also donated £200 to the store’s

charity of choice, the NSPCC. Nine regional winners and five category winners were also selected. The total prize fund of

Blakemore’s Tony Bromwich congratulates Chris Blake and Stephen Ridden.


The fifth Nectar Business Small Business Awards are being supported by Karren Brady, who appears on BBC’s The Apprentice and is a director of West Ham FC. The awards, which are free to enter, have attracted a large number of independent retail and catering concerns. Entrants are judged by a panel that includes Dave Hughes, marketing director of Brakes, as well as Brady and Nectar marketing director James Frost. In addition to receiving £2,000 cash and 50,000 Nectar points, entrants are competing for the opportunity of meeting Brady and

Smuggler jailed Cheng Wu, 34, who smuggled counterfeit tobacco into the UK through the post from China, in packages labelled ‘tea’, has been jailed. The parcels were sent to at least seven mailbox locations in the south west (including Weston-super-Mare, Bath, Bristol, Taunton, Swindon,

Marching ahead Landmark Wholesale March turnover increased by 13.5% compared with the previous corresponding month. Own-brand sales into depots at the end of that month meant a 7% rise for these products for the financial year to date from May 2012. Tel: Landmark Wholesale (01908) 255300.

£40,000 was provided by sponsors Britvic, Heineken, JTI, Unilever and Mars. Tel: Blakemore Wholesale (01902) 371515.

Brakes man on panel

What the Customs officers found.

Chippenham and Westbury on Trym) avoiding excise duty of £171,000. HM Revenue & Customs investigations revealed that,

• Cash & Carry Management • May 2013

between May and August 2012, Wu imported 750kg of hand-rolling tobacco from China in 2kg parcels. Simon De-Kayne, HMRC assistant director criminal investigation, commented: “These were highly organised importations of tobacco from China. Wu obviously thought by smuggling smaller quantities of tobacco by post he would avoid capture. But by working closely with our law enforcement partners and the vigilance of local business, not only has he been caught, but he also faces deportation. “Tobacco fraud costs the UK Government around £1.8bn a year.” Wu was handed a twoyear jail sentence, and it was recommended that he be deported afterwards. Tel: HMRC Customs Hotline (0800) 595000.

Hughes: ‘A great showcase.’

receiving advice from her and other industry experts at the Nectar Business Round Table event later in the year. The awards – to be announced in August – include tradesperson of the year and start up of the year categories. Speaking about the competition, Hughes said: “Brakes is a firm believer in the rewards and benefits that we can offer to small businesses through our partnership with Nectar. The awards are not only a great showcase for what can be achieved, they are also a great source of inspiration for us and many of our customers.” Tel: Brakes Group (01233) 206000.



Another £15m for Landmark Landmark Wholesale has brought its number of members to 38 by signing licensed wholesaler Hall’s Drinks. It follows the recent recruitment of Irish operators Corrib Food Products and Express Foodservice (NI) (Cash & Carry Management last month). The north-west concern delivers beers, wines and spirits to Merseyside, North Wales, Greater Manchester, Shropshire and Cheshire. It has three depots – at Holywell, Crewe and Liverpool – and turnover of around £15m. The business is owned by John Ravenscroft, who has worked in the licensed trade

Latest to join the group’s growing membership.

for 30 years, together with his family. General manager Mike Caulfield said: “We primarily service the on-trade but would like to develop our offtrade sales. Joining Landmark

Foodservice focus In his statement accompanying Musgrave Group’s 2012 annual results (pre-tax profit up from 70m euros to 73m euros on sales ahead by 11% to 4.9bn euros), chief executive officer Chris Martin refers to cash & carry as being “the biggest decline in this market” (Northern Ireland). The company earlier this year announced the closure of its Belfast and Ballymena MarketPlace C&Cs, leaving it

with four in Northern Ireland. These now concentrate on foodservice. It also has seven in the Republic. Undaunted, the group is continuing with its MarketPlace investment programme, with a further 3m euros committed to improvements. That’s additional to 10m euros that has been spent on the chain in recent years. Tel: Musgrave Group (003531) 452 2100.

Musgrave Group CEO Chris Martin (left) with group finance director David O’Flynn.


Wholesale gives us access to an excellent range of ownbrand products and regular promotions, which will help us achieve our aim.” Group managing director Martin Williams commented: “We are currently embarking on a strategic drive to attract new on-trade members.” Tel: Landmark Wholesale (01908) 255300.

New IT system North-west London-based Temple Wines has installed a wholesale IT system from Sanderson. It integrates all areas of the supply chain, providing visibility of information across the business and monitoring the performance of key areas. Instantly available stock information enables Temple Wines to make effective replenishment decisions, protecting cash flow. Another plus factor is that time-consuming manual processes have been replaced with an automated system. Sanderson is a preferred supplier to Today’s Group, of which the drinks wholesaler is a member. Tel: Sanderson (0333) 123 1400.

C-store package Best-one has launched a low-cost online training programme for independents. The Bestway symbol group has partnered with Upskill People to offer the ‘CStore Essentials’ package. Courses for all staff cover 10 modules in key areas, including personal essentials, fire safety essentials, legal issues and ‘Think 25 restricted products’. Managers can undertake an additional three modules, including a personal licence holder briefing. There are also courses for those operating post offices or forecourts. All are fully accredited and conducted online in the retailer’s time or in-store to reduce cost. Stores with up to 10

employees pay £200 to allow all staff to undertake all courses. Those with 11 staff or more pay an additional flat rate of £75. James Hall, director of symbol, said: “Training is imperative. Not only does it motivate staff, it also gives them the knowledge and skills Hall: ‘Training to deliver the is imperative.’ utmost customer service. “Retailers also have a responsibility to ensure they are meeting the required legal and regulatory standards.” Tel: Bestway Group 0208453 1234.

Cash & Carry Management

• May 2013 • 7


Now anyone can join Costco, which now operates 24 UK branches after just opening its latest one in Southampton, is extending membership to those who do not fit the present criteria of ‘trade’ or ‘individual’ (current or retired employees of selected work groups or professions). Although the company has an online presence in the US and Canada, the UK is the first region to launch an online subscription programme. Unlike existing UK customers, those logging on will not be able to visit the stores but will be restricted to online purchasing.

To enrol for this scheme, members of the public will need to pay £15 a year. That, said marketing co-ordinator ecommerce Catherine Mongrain, “brings the previous exclusivity of our great quality and value to everyone”. The annual cost to trade members (who represent 65% of the UK’s clientele) is £24 and to individuals £30 (both including VAT). There are also executive options for both (£60 and £66 respectively), which offer a 2% reward clause. Online prices will include delivery, which will be reflected in prices against those in-store. Those shopping online will be able to choose from a wide variety in more categories than are available in the branches. New customers will be able to choose branded Part of the new Costco’s non-food section. lines and also

Costco’s Kirkland Signature label range, which includes jewellery, electronics and ‘exclusive hot buys’. As a sweetener to existing as well as prospective customers, the company has launched a free prize draw on its website for ‘high ticket’ items such as furniture and electronics, valued at upwards of £8,000. Costco, which has 626 branches worldwide, has a UK turnover of £1.5bn and 5,719 staff. Manager of the Southampton store, Jon Reed, has been with the company for nine years. The 140,000 sq ft branch has 176 staff and, in addition to the normal Costco departments, has a nautical section that includes Laser dinghys and Sea Ray powerboats to tie in with the port’s heritage and local community. Tel: Costco UK (01923) 213113. Costco will open another new branch, at Farnborough, Hants, within weeks.

Lucozade and Ribena on the market GlaxoSmithKline has put its According to Nielsen, They have been put on two leading fmcg products – Lucozade achieved 2012 UK the market after a strategic Lucozade and Ribena – up sales of £387m while Ribena review of the multinational’s for sale. A figure of £766m is reached £150m. operations was undertaken believed to be the asking Last year GSK global in February. Both, it is felt, price. turnover was down by 1% to would realise better growth The brands are bottled at £26.4bn, while operating under an owner whose portColeford, Glos, where an profit was flat at £7.4bn. folio is more akin to soft £18m investment programme Although there are no spedrinks than GSK – a major was announced last year. cific UK figures, total Europlayer in both OTC and preThis was additional to a £70m pean sales were £7.3bn, secscription-only medicines. outlay on new bottling ond to the US on £8.4bn. facilities a year earlier. The sale of Lucozade Both Lucozade and and Ribena would leave Ribena have a major GSK with Horlicks as its presence in the C&C/ one UK health & nutriwholesale, independent tional drink. retail and grocery chanTel: GlaxoSmithKline Coleford, where the brands are bottled. nels. 020-8047 2700.


• Cash & Carry Management • May 2013

Retail guidance

Today’s Group is distributing more than 60,000 copies of its 2013/14 Plan for Profit range guide to convenience retailers. Last year group retail stores achieved 70% compliance relating to must-stock products as recommended by the publication. The guide features category information from across the sector, combined with data from suppliers and independent wholesalers. John Kinney, Today’s Group retail director, said: “Recent industry research highlighted that an improved product range is the primary reason for the increase in shoppers visiting c-stores versus last year. However, one in five still thinks stores stock products that they will never buy or need. “We have made it our priority to produce a guide that gives retailers the information they need to maximise their own sales and profit, and give their customers the range they want.” The Plan for Profit booklet is also supported by a website, www.todaysplanforprofit.com. Tel: Today’s Group (0844) 247070.


NEW EXCITING PARTNERSHIP Kinder Surprise single is the No 1 Kids Confectionery line* Ideal for till point placement Tailored displays for different store formats



Fangs for the money! Hull-based delivered wholesaler Turner Price received £500 in Uncle Ben’s ‘Wok a Promotion’ giveaway to mark the Chinese new year of the snake. The Country Range Group member won the money to be spent on a staff meal at a Chinese restaurant of their choice. C&C/wholesalers were required to create in-depot theatre around the Chinese new year and Uncle Ben’s Oriental ready-to-use cooking sauces and rice – from Mars Foodservice – and then send in photos and videos of the occasion. The telesales team at Turner Price not only wore snake masks and posed for pictures, but they also decorated the office with a dragon and snake, made by receptionist Beverley Taylor. The wholesaler also invited employees’ children to join in the celebration by holding a competition for the

Staff build up an appetite for that Chinese meal!

best decorated snake mask for under and over-sevens, with a prize in each category. Sarah Gray, Uncle Ben’s marketing manager, said: “Turner Price used the vibrant celebration as a way of generating trade and boosting staff morale. We love the fact that they work closely with local schools and as a key supplier to the education sector.” The wholesaler, whose celebration is being featured

on the new-look Mars Foodservice website, delivers ambient, chilled and frozen food, fresh meat, fresh fruit and vegetables and non-food items to around 1,200 customers in Lincolnshire, Yorkshire, Nottinghamshire, Derbyshire and the rest of the north. It stocks over 4,500 products. Tel: Turner Price (01482) 577100. Tel: Mars Foodservice (0800) 952 0011.

£50,000 on Creed kitchen Creed Foodservice has opened a development kitchen at its Staverton, near Cheltenham, headquarters. The new facility creates a dedicated resource for customers and will be used daily by the wholesaler’s executive development chef Robin Stock. Designed and installed by Gloucester-based Space Catering, it is a fully-operational commercial kitchen, costing £50,000, and includes space for customers and guests to watch demonstrations. Suppliers will also be able to use the area to show their products to the Creed sales


Award for Henderson SPAR Northern Ireland wholesaler Henderson Group won the excellence in marketing prize at the Belfast Telegraph business awards in association with British Airways. The company received the accolade for its ‘Value, Valued & Values’ marketing strategy on behalf of the symbol group. Bronagh Henderson (pictured), the wholesaler’s brand marketing controller commented: “Our marketing campaigns have produced solid results for SPAR in 2012, including increased sales of 4.6%, plus fresh food income rising by 9% as a result of our ‘Famous for Fresh’ initiative. “We have also recruited 10 new stores.” Tel: Henderson Group (02890) 342733.

ChildLine donation

Egg-citing times for south-west wholesaler.

team and customers. Creed managing director Chris Creed said: “This is a fantastic new resource for us and will enable us to hold customer events on site, work with customers to develop their menus, hold guest-chef demos and

• Cash & Carry Management • May 2013

experiment with new ideas. “We have recognised for some time that this was needed and I’m delighted we have been able to make space at our HQ site to make this a reality.” Tel: Creed Foodservice (01452) 713660.

SPAR UK retailers, staff and customers have helped raise £567,000 for ChildLine over the past year, beating the symbol group’s target of £500,000. Patricia Wheway, the chain’s charity controller, said: “Our retailers have put in a phenomenal amount of hard work to achieve this amazing result, and helped thousands of children in the process.” Tel: SPAR UK 020-842 3700.


swa update

A stronger voice At the Scottish Wholesale Association, we firmly believe that by working in partnership with our members, suppliers and other trade associations, we have a stronger voice.

by Kate Salmon

ETHICAL SOURCING & SUSTAINABILITY The June 2013 issue of Cash & Carry Management will include a feature on Ethical Sourcing & Sustainability

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


In recent years we have adopted a particularly robust lobbying strategy as we strive to represent the best interests of our members. I am delighted to report that our most recent collaboration with the Scottish Grocers’ Federation (SGF) – Fingertip Guide to the New Tobacco Display Laws – has been well received by the industry. Designed specifically to help independent retailers and wholesalers comply with the changes to tobacco display requirements included in the Tobacco and Primary Medical Services (Scotland) Act 2010, the guide is supported by Imperial Tobacco, JTI and BAT. We also liaised with the Federation of Wholesale Distributors (FWD) about the content of the brochure, which was written by our consultant Scott Brady of ecos with support from the stakeholders’ legal counsel. Scott made an important presentation to the Scottish Government, resulting in endorsement of the publication by those in power. We are particularly pleased about this acknowledgement because it is crucial that Holyrood recognises that we have the best interests of Scotland’s wholesalers and independent retailers at heart. An app of the Fingertip Guide will be introduced later this month.

Legislation of any kind can be a minefield for small businesses so we have set out to help the industry understand the new rules. This is the second time, in fact, that the SWA has collaborated in this way with the SGF. In 2011, we joined forces with the Federation and nine major drinks suppliers to produce a guide for independent retailers selling alcohol in advance of key changes to the licensing laws. The Scottish Licensed Trade Association is another example of an organisation we work closely with. By collaborating with others, we carry more clout. Together, we have a stronger voice – a voice that is more likely to be heard. Tel: SWA 0131-556 8753.

Cash & Carry Management

• May 2013 • 11


Using ambient to drive growth Nick Redford, managing director of Caterforce, talks to John Wood about its expansion plans. If members of a buying group want to succeed then it is vital they agree a strategy and work together coherently, according to Nick Redford, managing director of Caterforce. It appears to be a message they have taken to heart, with the group finishing 2012 with like-for-like turnover – taking into account new members and acquisitions last year – up 7.5% on 2011 to £310m. And despite the problems in the wider economy and an exceedingly harsh winter, the group has continued to push on, with turnover in the first quarter of 2013 up 9.89% compared with the same quarter last year. Redford comments: “To be posting more or less double-digit figures in a tough environment when the weather and elements have been against you is a really positive result, but it’s a result of the work we did in 2012. This year we will really reap the benefits of what we started in 2012 and look to accelerate that.” One of the elements of the plan agreed last year was to

Caterforce members Castell Howell Foods Hunt’s Foodservice JB Foods (Scotland) Lynas Foodservice Philip Dennis Foodservice Pilgrim Foodservice Pioneer Foodservice


• Cash & Carry Management • May 2013

focus on growing ambient sales. Traditionally frozen has been the bedrock of the group, currently accounting for about 50% of turnover. Redford says this will not change, but he sees tremendous scope for growth in ambient, which makes up about 25% of sales. He explains: “Collaboration in ambient has been new to us. We have only done it loosely in the past because frozen has always been the key, but now ambient is the focus from the centre. We started that last year and this year will see us implementing business plans from Nestlé, Heinz, Unilever, etc.” By focusing on the category, the group has been able to increase ambient sales by about 20% in the last quarter, with fresh and chilled up 9% and frozen contributing growth of 5%. Most pleasing of all, says Redford, is that all seven members of the group shared in that growth. One factor helping to drive ambient was an increased focus on own brand, including the launch of Chefs’ Selections by Caterforce in August last year. It has now grown to more than 100 products in key commodity lines like beans, tomatoes and tuna. As the group seeks to accelerate ambient even more, it is moving some of the work out to the members. Redford explains: “As we centralise some of the big contracts it creates a little bit of a gap out in the membership. So, for example, Hunts will look after the tea contract, Philip Dennis the dilutables contract, and Pilgrim will handle the jams contract.


interview “We have a fantastic knowledge base among the memagreed for whatever reason, we can give them a quick call bers, some highly skilled buyers, and, as ambient grows, and make sure they are supporting it. This gives a coherent there is no point in adding cost into this office so we are message from all seven members, in line with what a supgoing to utilise the resources of the group. Now what we plier is trying to target, and getting it out and executed.” have is not only buyers at each member, but also buyers who The group’s customer base is developing too. Redford are acting on behalf of Caterforce. So we are a really tightsays: “We serve about 35,000 customers, predominantly knit group. small to medium-size caterers such as pubs, restaurants, “Now when we have a buyer meeting everyone’s really hotels, coffee shops and sandwich shops, with a small but involved, everyone has something to present, and it’s not increasing amount of business in the cost sector. A couple of just one-way traffic, with head office doing things and members are particularly targeting expansion within educahoping they stick. We’ve got a real tion, both in the public and private good buzz about the place, everysectors.” one’s helping each other and it just One of the questions Redford is continually reinforces the togetheralways being asked is whether ness and engagement in the there are new members in the group.” pipeline. Last year Wales-based Redford says there has always Castell Howell Foods joined the been a high degree of collaboragroup and existing member Lynas Nick Redford, managing director, tion within Caterforce because Foodservice acquired its fellow Caterforce members see themselves as Northern Irish wholesaler colleagues, not competitors. The Aghadowey. Redford comments: wholesalers work closely together comparing KPIs (key “We’ve done our two-year plan in six months, and it was the performance indicators) on things like pick rates and debtor addition of Castell Howell and Aghadowey that brought days so they can improve all aspects of the business, not just £100m into the group that enabled us to accelerate that.” the buying price, and the new buying set-up is bringing them The signing of Castell Howell enabled Caterforce to add even closer together. Wales and some of north-west England to its coverage, but The way the group operates also helps buyers to ensure there is still a gap in the south-east. He says there is room for a unified, coherent approach for suppliers, says Redford. two, or maybe three, new members but they would have to “Caterforce central office has a marketing function so we fit strict criteria. That means minimal geographical overlap – produce all the members’ price list promotional material and meaning they shouldn’t have a depot operating in an existing we put in place the amount of central execution of supplier member’s heartland. A high supplier and range overlap promotional programmes. would also be critical. “Because we do all the marketing here we have that Redford says: “Buying groups are about synergy – it’s not check, so that if someone has missed out what has been all about size. While size is important it’s about being

‘To be posting more or less double-digit figures in a tough environment is a really positive result’

Vehicle fleets are being upgraded and extended by members to handle the increasing business.


Cash & Carry Management

• May 2013 • 13

interview able to act coherently, and execute as a group. For me, £300m acting coherently is better than £800m that’s disjointed, because when we talk to suppliers we talk about every member. When I’m in a discussion with a supplier it’s no use saying certain members won’t be interested in this or that. We want a group where the centre can talk about everybody. We may get one or two new members in the next 12 Caterforce launched its Chefs’ Selections own-label ambient range in August and it months.” now comprises more than 100 lines. Looking ahead, Redford says memOctober. Redford says: “We did the first one at the Belfry, but bers are showing their confidence with significant infrastrucwith cost in mind, we aim to ensure the conference is accesture investment. There are plans for extended warehouses, sible to as many people as possible. It’s not about income bigger vehicle fleets and new depots, including Lynas buildgeneration, it’s about getting people there to have a really ing a new cash & carry/foodhall in Ireland, and Pioneer informative day, to understand what we are trying to do, to extending in Gateshead. enjoy it, to network, and to go away with the feeling that we Head office is also launching a focused marketing facility. are the horse to back in 2013/14/15. We are expecting nearly Redford says: “It allows us to target certain types of cusdouble the number of supplier delegates compared with last tomer, with certain products, with suppliers. For example, if time – about 260 attendees.” we identify that small sandwich shops are having a tough One of the items that will be on the agenda is the new IT time, we can create something centrally within 48 hours, and system that was identified as a priority at the last conference. target it at them. We might have Deli Rolls from Kara, Walkers Redford says: “Last year we were dealing with the own Crisps and something from Coke, so we can have specific brands and the integration of Castell Howell and Aghadowey deals that are targeted directly at that customer base, availinto the group, so it got put on the back burner, but we intend able only to them, and send a mailshot personalised to them. to introduce a prototype in time for this year’s conference. It It’s adding a new dimension to our marketing capabilities, won’t be operational, but it will give us a chance to present and giving suppliers return on investment, with a highly to suppliers and say this is what it looks like, this is the sort targeted approach.” of information you can glean from it. Then we can get feedThe group held its first ever supplier conference in back to ensure we are building something that suppliers will October 2011 and is looking to build on that experience with find useful.” its second at the Radisson Blu at Manchester Airport, on 15

There has been significant investment by members in infrastructure, including a new depot for Lynas and an expansion by Pioneer.


• Cash & Carry Management • May 2013



‘Silly offer’ leads to success This month’s article features Sanjay Wadhwani, managing director at Wanis. life. I also enjoy cycling to stay in shape. I cycle to work as often as possible, which is a 10-mile journey each way. As for technology, it’s moving at such a fast pace. IT has changed the way that we do business compared to how we operated in the early days. It has made us more efficient and customer focused; everyone benefits. What most frustrates you in business (and in life generally)? The inability of local and central government to see what they are doing to local and high street businesses. With so much red tape, things are increasingly hard for the local shopkeeper. Consumers are restricted in the choices they can make because of the dominance of the multiples. If you were able to retire tomorrow, would you, and if so, how would you spend your time? If I were able to retire tomorrow, I think I would probably be over the moon at first but then would wonder how to spend my time. I thoroughly enjoy what I do and would miss it. If I did retire, I would try to spend more time with family and the people that are important to me.

What has been the major milestone or turning point of your career? This happened around 20 years ago, when I was studying for my MBA exams. We were based at a small site of about 25,000 sq ft, and really needed more space. So we decided to put in a bid on a 100,000 sq ft warehouse. I made a really silly offer, not thinking it would be accepted, but to my surprise it was. Seven days later we were the owners of this enormous building, and that’s when I realised what a huge challenge we had taken on. However, the whole business clubbed together to make it a success and 15 years later we outgrew those premises and moved to an even bigger site. Who has been the biggest inspiration to you? My mum. She has worked in the business since its inception and has always encouraged me every step of the way. She has always been fearless in business, especially 30 years ago when it was a totally male dominated environment. How do you maintain a work/life balance and how have developments in technology affected this? I like to work hard and play hard too so I keep my personal and work lives separate. When I’m at home, my family gets my full attention, and I’m switched on and focused at work. We also have a no mobile phones and gadgets policy during meals. I love my holidays, and sometimes the best way to get away from work completely is to go to another country. My family is very important to me and our together-time is a great way to have fun, without the distractions of everyday


What advice would you give someone starting his/her first job? Work hard and with sincerity and give it your best. It will pay off when you least expect it. Everything you know, no matter how trivial it is, will help you at some stage in your life. What type of business would you have gone into if it wasn’t C&C/wholesale? Probably politics. I would teach the government not to spend more than they have and always save for a rainy day! If you had a million pounds to invest in business, how would you spend the money? I would give big pay rises to all my team, and with the leftover change I would love to expand Wanis.

A duty to his family Sanjay Wadhwani began his career at the age of 14, working on Sundays to help his father and earn some pocket money. When he was about 20, he joined Crane, a packaging company in Slough, on a one-year work placement. However, while Wadhwani was there, his father had a heart attack, and being the eldest son he felt it was his duty to help the family and go into the business. Wadhwani has been at Wanis ever since and has performed every job there, from sweeping the floor, tilling at the cash register, counting money, writing cheques, offloading lorries, driving the fork lift and driving the HGV lorry, to eventually taking responsibility for Wanis overall.

Cash & Carry Management

• May 2013 • 15


Showcasing a new partnership Palmer and Harvey added some special new guests and a host of money-making ideas for its customers to spice up the mix at this year’s Pro-retail show. John Wood reports. Palmer and Harvey’s Pro-retail show continues to be a major event on the wholesale sector’s calendar and this year the usual mix of bucketloads of retailers and suppliers, celebrities and a gala dinner and awards night for 1,600, was augmented by the presence of Costcutter. Following the deal announced in March, whereby Costcutter took on P&H’s symbol operations and P&H was awarded the next supply contract for the enlarged group,

The ‘Local Village’ featured products from 40 local suppliers.


• Cash & Carry Management • May 2013

Costcutter had a strong showing with a large stand and all its top brass in attendance headed by CEO Darcy WillsonRymer. Martyn Ward, managing director commercial & sales at Palmer and Harvey, said: “I’m really pleased that Costcutter is supporting Pro-retail and is here to talk to both Mace and Costcutter customers and independents about what the deal means for the symbol group going forward.” At the heart of the show, P&H had a large stand as usual, but rather than just showcasing the latest Mace format it chose to highlight an opportunity for its customers. Ward explained: “From our point of view, rather than just go with the standard Mace store, we have done the store in terms of ‘day part’ retailing, to try and get across to retailers that they can do it. “It doesn’t require extremes like in Japan where they have fixtures that swing round on wheels – that’s not going to happen in the standard convenience store. But if you show them how to do it simply, and then create the right opportunities, you tee them up for what could be a big opportunity. “Whether it’s providing for the large proportion of people buying a meal on the way home from work, or whether it’s a CTN, where most of the footfall is in the morning and really focusing on breakfast with maybe just a few sandwiches for lunchtime, retailers don’t have to do everything but they


pro-retail should understand their customer base and focus.” Ward said the show offered a unique opportunity to get the day part concept across to retailers, adding: “Our stand has simplified it and will help retailers get their minds round it. It’s one thing trying to explain day part retailing to a customer, and they might think ‘I can’t do that’, but when they can actually see it and how simple it is they think ‘OK I can do that’.” Elsewhere in the show, P&H had a ‘Local Village’ for 40 local producers. Ward commented: “The Local Village is fantastic. They are people who have a real passion about their products and some really innovative ideas. If the retailers can get their minds around creating a local offer, that is something the Tescos and Sainburys will find very difficult to do.” All the products in the Local Village were available for ordering through plusextra, P&H’s drop shipment scheme. P&H was also highlighting the latest addition to its van sales operation, P&H Direct, which will service cafes, snack bars, garden centres, sandwich shops and pubs. Its 140 vans will augment the coverage provided by P&H Snacksdirect, with 162 vans, and Sweetdirect, which has just added 20 more vans, taking it to a total of 100. Another development that was being launched at the show was a new app that allows customers to use P&H’s online ordering service from their phones. Ward also highlighted the contribution that suppliers made to the show by taking more than 200 stands. He said: “The support we get from them is great. We took extra space this year and we’ve sold every stand bar one. Without their support this show just wouldn’t go ahead.”

Licensing made easy Palmer and Harvey launched an Alcohol Licensing Initiative at Pro-retail to enable independent retailers to take advantage of the take-home alcohol sector, which it says is worth £1.1bn a year and in 2012 grew in value by 4.7%. The new initiative will guide independent retailers through the licensing process, with support from Licensing Solutions, a specialist in the field. Once the licence has been granted, P&H will offset the costs incurred in obtaining it by supplying either a targeted range of alcohol lines or chillers free of charge. The exact support given will be up to the individual retailer. P&H said the initiative was completely risk-free for retailers, because on the rare occasions that a licence application was unsuccessful, retailers would not be charged for the service. Rory Brick, P&H head of symbol, said: “Alcohol is one of the fastest growing categories in independent retail and is a great way to increase turnover quickly. However, there is a degree of red tape in stocking alcohol and we’re pleased to be teaming up with Licensing Solutions to support retailers in securing a licence. “This new initiative will help time-conscious retailers obtain and start an effective alcohol range at no cost, while providing expert insight and support every step of the way.”

Recognition for the top performers of the past year Palmer and Harvey’s top customers and suppliers were Palmer and Harvey, praised the high quality of this year’s honoured at its annual awards at Pro-retail, at a gala dinner retail award winners: “There is constant pressure on retailfor 1,600 compered by comedian Jason Manford. ers to improve. The way in which these outlets have In the retail awards, Convenience Retailer of the Year responded to that pressure is hugely impressive – many was presented to Vance Potter congratulations to all our winners.” from the Fore Partnership, which PepsiCo won the Supplier of the owns Mace Clifton. John and Marie Year award, and the Product of the Vine of Newsworld, Church Year for Walkers Deep Ridge. Jon Stretton, picked up CTN Retailer of Rooney from PepsiCo collected the the Year. awards. Woodgate Service Station, Impulse Supplier of the Year located just outside Birmingham, was Wrigley, Burton Foods was the won Forecourt Retailer of the Year Grocery & Non Food Supplier of for owner Lesley Peach, and the the Year, and the Alcohol Supplier Spirit of the Community award of the Year was InBev. went to Sanmugalingham Chilled, Fresh & Frozen Supplier Pirapakaran (also known as Perry) of the Year was Pork Farms, L to r: Martyn Ward; PepsiCo’s Jon Rooney; and compere Jason Manford. from S&M Supermarket in east Country Choice won The Plus Extra London. Supplier of the Year award, and the The Independent Retailer of the Year award was won by Service Level Excellence award went to Multiple Dean Holborn, owner of Holborn’s in Redhill. Refuel and Marketing. Go’s Bradwell Service Station in Braintree won the Symbol Ward said: “These awards celebrate the achievements Retailer of the Year award. of the top suppliers and how they’ve supported their prodMartyn Ward, managing director commercial & sales at ucts in the independent channel in the past year.”


Cash & Carry Management

• May 2013 • 17

wines, spirits & rtds

Suppliers face value and margin balancing act Diageo GB is launching a new category initiative – My Store Matters – to help retailers drive sales of their alcohol categories. The new forum and interactive website has been designed to give advice and support to retailers from the convenience sector. Diageo selected a group of leading retailers from across the UK to create its retailer panel and work with its category development team to highlight challenges facing the sector and find solutions that work in convenience stores. Opportunities discussed included price-marked packs, growth within the premix segment, in-store theatre for new product launches, developing a store’s brand image, offering shoppers value above and beyond price, full-basket solutions, raising the bar on execution, and engendering staff loyalty. The Diageo category development team then shared the output of their research, which led to the development of the category growth drivers shared on mystorematters.co.uk. Diageo has also announced the launch of a new campaign for its premixed drinks portfolio called ‘From the Bar’, which will be supported by a £2m marketing spend. The campaign is designed to drive penetration in premix by educating customers on the high quality of Diageo’s drinks as well as the convenience of the premix format. Shopper marketing manager Natasha Chapman comments: “Premix is the fastest growing alcohol segment in the UK, up 22% in value and 17% in volume year-on-year (Nielsen total offPremix convenience. trade MAT data to w/e 2.2.13)), so there is a real opportunity for retailers to increase sales by stocking premix drinks from well-known brands such as Gordon’s, Pimm’s and Smirnoff.”

Moving with the times Global Brands owns, markets and distributes a range of brands across the spirit, beer, ready-to-drink and soft drinks categories including VK, Corky’s, Kick Energy, Amigos Tequila Beer, Hooch, Hooper’s and Jungfrau herbal liqueur. “The ready-to-drink category is facing more competition than ever when it comes to fridge and shelf space,” says marketing director Simon Green. “The brands that are winning have evolved, adapted and innovated to find new ways


• Cash & Carry Management • May 2013

Crisp, classic flavours.

of fulfilling today’s consumer’s needs. VK is a brand that has moved with the times and is now the best performing readyto-drink in the off-trade, growing at 22.9%.” (Nielsen MAT Sept 2012.) Summer is a key time when retailers communicate the versatility of RTDs. The VK flavours, Reef and Hooch Alcoholic Lemon Brew are increasingly being used in the ontrade as a base for eye-catching, refreshing share serves and cocktails that drive volume and gross profit for customers and consumers. The Hooper’s 4% abv range includes Alcoholic Ginger Brew, Cloudy Lemonade and Dandelion & Burdock – all classic flavours which offer a point of difference in a category that is becoming increasingly competitive. The range is designed to be served over ice in a pint glass for a ‘contemporary, refreshing drinking experience’ and will be promoted in-venue via premium branded PoS, including wooden ice buckets, branded glassware and back bar displays. “The Hooper’s range of alcoholic brews has nostalgic appeal and meets consumer needs for great tasting products with heritage and a modern twist,” Green adds.

Price-marked packs Malibu, the coconut flavoured rum from Pernod Ricard UK, has launched a £12.99 price-marked pack for its 70cl bottle into wholesalers, following the successful introduction of a 35cl PMP last year. The mechanic will help independent convenience retailers drive rate of sale by offering consumers value for money whilst still maintaining profit margins. Martell, the world’s oldest major cognac house, has


wines, spirits & rtds unveiled details of the next stage in its ‘Very Special Nights’ campaign, which includes a neck collar promotion on both its 70cl and 35cl bottles. The main prize comprises two trips to Chateau Martell in Cognac, France. In line with its strategy to offer independent retailers profit-driving solutions, Pernod Ricard is also launching a £6.99 PMP for the UK’s favourite Rioja brand, Campo Viejo (Nielsen: latest MAT by value 02.02.13). The brand’s Tempranillo varietal will carry the price marking and will be available across all cash & carry depots, both national and independent. The pack will be supported with PoS material in selected outlets and a comprehensive marketing campaign. PMPs provide independent retailers with a trusted mechanic to offer value to consumers, whilst driving profit for the channel through increased rates of sale. With Campo Viejo currently outperforming both the Spanish and Rioja categories, up 28.5% in volume and 23.9% in value against 3.7% volume and 7.2% in value for Rioja (Nielsen total offtrade data w/e 02.02.13), the pack offers retailers a significant opportunity to drive value sales, Pernod Ricard claims. PMPs are becoming increasingly commonplace in the convenience sector, with research providing a compelling argument to include them within the merchandising mix. A total of 86% of shoppers would trust the price of a PMP over the shelf price, and with 79% of shopMartell benefits from pers viewing PMPs as a promotion, promotional support. the mechanic is an effective way to drive rate of sale and repeat custom (him! PMP study 2011).

Trusted brands Maxxium, distributor of premium spirits including The Famous Grouse, Courvoisier, The Macallan and Jim Beam, reports that all four brands have outperformed their respective total categories in the independent impulse channel (Nielsen to 2/3/13). “Premium quality continues to play a key role in the independent off-trade as shoppers default to brands with heritage that they can trust and consumers increasingly trade up and invest in high quality spirits. It’s therefore important for wholesalers to offer a range that can allow independents to capitalise on this trend,” says Ali Brown, business sector controller. The total spirits market was worth £147m in value (a decline of 0.8%) and 873,000 cases in the independent impulse channel in the last 12 months. In volume terms, cognac, imported whisky and gin are all bucking the overall spirits trend and are enjoying volume growth (4.3%, 2.6% and 5.2% respectively). Fractionals are currently demonstrating healthy volume


• Cash & Carry Management • May 2013

Courvoisier has outperformed the cognac category in the independent impulse channel.

growth and account for approximately 30% of spirits sold in the convenience channel compared to 14% across the total off-trade market. Wholesalers can capitalise on this trend by maximising visibility of fractionals. In addition, sizes of 50cl and below and price-marked packs offer the means to differentiate their range and promotional offer from the major multiples. Maxxium is investing heavily in both areas in 2013. However, the company warns that PMPs can only generate incremental sales if their price point offers the shopper great value while also rewarding the retailer with a margin that gives them a reason to stock that pack. Meeting both criteria has previously proved challenging for suppliers to the spirits category, although, according to Maxxium, premium branded propositions have thrived where they have entered the category in independent retail. April saw Maxxium’s biggest ever brand launch with the national roll-out of Ginger Grouse into the alcoholic ginger beer sub-sector in a 500ml bottle format. This extension, which includes a splash of the Famous Grouse whisky, will be supported by a £3m through-the-line campaign including television advertising from July.

At-home entertaining Funkin, producer of the fruit purée brand of the same name, has launched funkin Brazilian – a blend of mango, passion fruit, orange juice and Brazilian guarana extract which contains twice the caffeine of coffee beans. CEO Andrew King says: “With more consumers bringing cocktails into their drinking repertoire and as trends towards at-home entertaining and the desire for new taste experiences continue, we are thrilled to introduce a bespoke cocktail concept, driving even greater excitement in the category.” Initially launching via funkin.co.uk and other online retailers in a one-litre pack, the funkin Brazilian will be



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wines, spirits & rtds available across multiple grocery and convenience outlets and ongoing in a 750ml pack. The company recommends that the 100% natural range of cocktail mixers are served with top-selling spirits. It says that placing the mixers next to the spirits will give retailers the opportunity to crosspromote, encouraging trial and engagement amongst consumers.

Sporting chance Wolf Blass, a brand of Treasury Wine Estates, has announced the launch of the exclusive Cricket Legends Event to be held at Sir Paul Getty’s private estate, Wormsley Cricket Ground, in Buckinghamshire in July, celebrating over 130 years of rivalry between the Professional Cricketers’ Association Masters (PCA) and the Australian Cricketers’ Association (ACA) Masters. Consumers can only gain access to the occasion by winning one of 1,000 pairs of VIP tickets. The event is being promoted in-store with eye-catching neck collars in the shape of a cricket ball. Consumers have to purchase a bottle of Red or Yellow label Wolf Blass wine and enter their details online. Continuing the sporting theme, Beringer – Napa Valley’s oldest and most awarded winery (as voted by Wine Spectator) – is to introduce its PGA Tour partnership. Following on from the US ‘Million Dollar Swing’ campaign, Beringer is running a UK consumer promotion whereby consumers can ‘Putt to Win £500,000’. Consumers will be required to enter a code online taken from promotional neck collars of the Beringer Classics range. Tarja Tuunanen, brand business manager, says: “Given the popularity of golf and the high profile of the PGA Tour, we are certain this activity will resonate very well with our UK consumers. The in-store The latest promotion will drive sales of the Beringer activity. Classics range while the PGA Tour connection will increase awareness of the brand as a whole.” The Beringer ‘Win to Putt £500,000’ will be supported by a wider trade and consumer PR programme. In impulse, Lindeman’s Bins, available from Treasury Wine Estates, is showing strong growth, up 8% in value and 6% in volume (Nielsen MAT 2 February 2013). This spring the range is giving shoppers the chance to win one of 13 rejuvenating breaks each worth £1,000. The activity, which supports the brand strapline ‘The one purpose


• Cash & Carry Management • May 2013

of wine is to bring happiness’, will run until the end of May and reward one consumer each week throughout the period. Customer marketing activation manager Hayley Loveridge says: “Previous Lindeman’s promotions have increased the number of Lindeman’s shoppers by 66% during the promotional period (Kantar Worldpanel 2 October 2011). With these results we encourage retailers to stock up on the Bins range, particularly Bin 85 Pinot Grigio and Bin 95 Sauvignon Blanc in the lead up to the spring/summer season.” All those who purchase one of the 300,000 promotional bottles and enter the competition will also receive £1 off their next purchase of Lindeman’s Bins.

Collectables First Drinks is launching a limited-edition Grant’s and Three Barrels glass on-pack, exclusively to the convenience, specialist and wholesale channel. The history and character of Grant’s scotch whisky – the world’s oldest family-owned blend – is illustrated in a selection of six collectable glasses. The first three glasses will be launched in May with the second three following in September. The UK’s number one brandy (Nielsen data to 2.2.2013), Three Barrels will follow suit, launching three collectable glasses in May followed by a second roll-out in September. This initiative will be available exclusively to the convenience, specialist and wholesale channel, supported with in-store PoS material, posters and a dedicated microsite on Grant’s. Senior brand manager Oliver Dickson says: “The glasses make great gifts, which with Father’s Day approaching, provides retailers with another gifting solution from First Drinks. Gifting is currently worth £125m to the impulse channel (Nielsen total impulse spirits 52 w/e 2.2.2013) and with the support of exclusives such as the Grant’s and Three Barrels collectable glasses, we expect to see the channel benefit as a result.”

Growing partnerships Chase Distillery is poised to enhance distribution of its premium vodka and gin brands in the on and off-trade through a distribution agreement with Cellar Trends. “Cellar Trends has been appointed to enhance service to the brands’ customer base and drive continued growth in the UK to the next level of brand development,” says William Chase, founder of Chase Distillery.

For further information: Chase Distillery (01531) 670049 Diageo 020-8978 6000 First Drinks (01256) 748100 Funkin 020-7328 4440 Global Brands 01246 868900 Maxxium (01786) 430500 Pernod Ricard 020-8538 4000 Treasury Wine Estates 020-8843 8400


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confex conference

Richer pickings from foodservice Mervyn Gilbert reports from Confex’s annual get-together at South Cerney, Glos. A near 8% increase in annual turnover, 24 new members and an even greater shift towards foodservice. These were the 2012 highlights for Confex. Addressing group wholesalers and suppliers at the annual dinner, awards ceremony and exhibition, business development manager Tom Gittins said: “In very difficult trading conditions, we managed to increase sales by 7.9% to £1.64bn, with hot beverages, cider and frozen foods the star performers. All of these recorded rises of above 20%, thanks largely to members buying into the deals. We are now working with 201 official suppliers.” Gittins later told Cash & Carry Management that twothirds of the 24 additional members were in foodservice. They brought the total number of affiliates to 292. The newcomers’ combined turnover is around £200m, headed by Peters Food Service, of Bedwas, Caerphilly, with around £60m. The company, whose speciality is pies, is developing more in other categories, including bacon, and this is why it felt joining Confex was in its interests. Gittins expressed his delight at the turnout of exhibition stand holders – 70 compared with 63 last year. Another plus was that 70% of the membership was in attendance at the two-day event, compared with 65 previously. He also spoke movingly of his late grandfather and co-founder of the group, Julien Loffet, who recently passed away, as reported by Cash & Carry Management last month. “He always sought out potentials in business. He leaves a lasting legacy.” Gittins also referred to the group’s ‘E-Savers’ promotional programme, which had received “an amazing response”

from members, while Confex’s central distribution service ”goes from strength to strength, achieving double-digit growth since its inception in 2006”. He told his audience that, after a lengthy wait, the group will be moving in July to its new home in Moretonin-Marsh, Glos. The event also marked the second year of the group’s green wholesaler awards in conjunction with ecoVeritas, whose consultant, Charlie Henderson, was on hand to announce the winners. Tom Gittins addresses the Referring to members’ Confex delegates. efforts to save on energy and waste, make better use of recycling, use more local suppliers and engage in charity work, he said that one member had saved 20% on electricity while another had cut overall fuel bills by 30%. Winner of the small green wholesaler award (sponsored by Mondelez International) was Leeds-based delivered wholesaler JR Brooks; the large green wholesaler award (Nestlé) went to Rippleglen, of Birmingham; and Nasco, of Southall, Middlesex, took the newcomer’s accolade (Unilever Foodsolutions). Brooks also won the overall green wholesaler award, while Nestlé was given the title of supplier of the year for making “a brilliant difference” to the group. Proceeds from a quiz held during the Confex event, plus money raised by senior business development manager David Lunt in his 14 marathons, meant that £5,000 was donated to an Oxford charity for the handicapped, which will go towards the cost of a £25,000 mini bus.

Bruce Simpson, of CocaCola Enterprises, presents the green wholesaler of the year award to David Longfellow, representing the winner, JR Brooks, of Leeds, while Tom Gittins shows his approval.


• Cash & Carry Management • May 2013



Rombouts CoямАee GB Ltd. Manhaan House, 140 High Street, Crowthorne, RG45 7AY - T: 0845 604 0188 - E: info.uk@rombouts.com

customer cares

sponsored by

Price sensitive Hitesh Patel Croydon Convenience Store

Plus points: I shop at Booker because of its meat counter, which is very good. The staff are also good, especially the manager. He is very friendly and helpful. I love to go to Booker and he is one of the reasons. He is a very good businessman. If you ask him for advice he answers your questions. Also I can get everything I want from Booker and get in and out quickly.

Wholesalers used: Dhamecha is the one I usually use and it gets 70-80% of my business. As a rule I don’t bother going anywhere else because there is no point in running round and diesel is not cheap nowadays. I tend to visit once a week.

Suggestions for improvement: I like to visit Bestway but I avoid it because it is very slow. My time is important. You can wait half an hour or one hour to get served. The one thing I would like to see from Booker is more offers, especially on drink.

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

Plus points: I like Dhamecha because it is convenient – it is only 10 minutes away – but also because I am used to it. I’ve been going to Dhamecha since I started running this shop six years ago. I saw some advertising leaflets and I liked the offers. The staff are also very friendly and helpful, and because I know the depot I can be in and out quickly. The days I choose to go there it is never crowded and there is never a queue at the till. It also has a very good range. It has everything I need except for frozen food. The prices are very good too. Suggestions for improvement: I can’t think of anything Dhamecha needs to improve. It is convenient, it has a full range and is well stocked, and it has good offers.

Matte Ullah Sahi Food & Wine Wholesalers used: The main wholesaler I use is Dhamecha. I probably go about two times a week, but I also shop at Elbrook and Bestway. Plus points: The prices at Dhamecha are quite cheap and you can get everything under one roof. It is nearby and the staff are friendly. I have been going for more than eight years and I have got to know some of them. They have good weekly promotions and trade days when there are good offers on beers and wines. It’s very rare for them to be out of stock of anything, and if they are they will let you know when it is back in stock. Usually you can get through the tills quickly. On trade days there are queues but it still goes smoothly. It can be very busy, but the managers are very experienced and make sure the trollies keep passing through as normal. Suggestions for improvement: At Dhamecha there are about 20 tills but Bestway only has about six or seven so the service is not as fast. Elbrook is quite a small cash & carry and it has good offers on wine and beers, but it doesn’t do grocery and its confectionery is more expensive, so if you also want sugar, for instance, you might as well go to Dhamecha.

Hitesh Patel is concerned about the cost of diesel.

Mehmet Bezginsoy Two Brothers Cafe Wholesalers used: Booker is my main cash & carry, but I also use Bestway and Migros. It depends on how our business is doing as to how often I go to Booker. It can be every week, every fortnight or every three weeks.


• Cash & Carry Management • May 2013

Suras Rajah PV Food & Wine Wholesalers used: I use Dhamecha the most, but I also go to Booker and Bestway. There are so many cash & carries in Croydon and I have been to all of them. I usually shop every morning. I will visit them if the prices are cheaper. Plus points: I go to Dhamecha because it is nearer, everything is a little bit cheaper and it has good promotions.


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products & promotions Pop art

Superbike link

NESTLÉ WATERS – Perrier is launching a limited-edition Andy Warhol can and bottle collection in honour of its 150th anniversary. The Pop Art-styled range will be available in the grocery and convenience channels. Four different designs are being rolled out across the Perrier range, including the 33cl cans, and 33cl, 75cl and one-litre bottles. The launch is inspired by the collaboration between Warhol and Perrier in the ’80s when the artist created an advertising campaign for the brand. This partnership will support the Andy Warhol Foundation, one of the world’s leading funders of contemporary art. Tel: Nestlé Waters (01923) 897700.

KROMBACHER – The brewery has signed a one-year deal to sponsor one of motorcycle racing’s hottest talents, Daniel Stamper. Racing for team ‘MackRory Racing’, Stamper will be competing in the Pirelli 600 Superstock which is designed to identify new racing talent within British Superbikes and provides a progression route to higher classes of racing. Julian Penny from Krombacher said: “This is the second sponsorship for us in motorcycle racing, which is an incredibly exciting and thrilling sport. Televised live on Eurosport, as well as being shown on ITV4, the sport attracts over 7.6 million viewers and each meeting has an average attendance of over 30,000 people, making it the perfect environment for our target audience.” The sponsorship includes branding on Stamper’s bike, crash helmet and leathers, along with tickets to each of his events. Tel: Krombacher 07747 097992.

Cook with Boursin BEL UK – Celebrity MasterChef winner Lisa Faulkner is teaming up with Boursin to encourage consumers to cook with the spreadable cheese. As the No.1 brand in the speciality cheese segment, with £14.1m value sales and growth of 17.5% (Nielsen MAT to 2.3.13), the cookery partnership with actress and food writer Faulkner aims to help consumers expand their usage of the product. Faulkner has created five recipes using Boursin that will highlight all the flavours in the Boursin range: Garlic & Herb, Tomato, Onion & Chive, Shallot & Chive and Black Pepper. Interviews with Faulkner will feature in lifestyle and women’s media, and the recipes will be placed in a range of on and offline publications. Marketing director James King said: “Our link up with Lisa Faulkner is part of our drive to position Boursin as the ideal c o o k i n g product, and also encourage consumers to trial the full range of available flavours.” Tel: Bel UK (0333) 900 2024.

Creative play BRITVIC SOFT DRINKS – Robinsons – the nation’s favourite squash brand (Nielsen Scantrack, MAT 29.12.12) – has launched a brand new TV advert. On screens nationwide through to September, the brand’s latest creative focuses on the story of pals and the thirsty work of play. The advert follows a pair of cheeky boys out for an afternoon of playful action. At the end of the day the boys glug two glasses of Robinsons Orange No Added Sugar Double Concentrate before watching TV. One of the boys falls asleep, while the other unties his pal’s shoes and carries him to bed. The advert then reveals that the boy who carried his mate upstairs is in fact a father carrying his son, ending with the tagline: ‘It’s good to be a dad. It’s better to be a friend’. Tel: Britvic (0845) 758 1781.

Summer fancies PREMIER FOODS – The supplier is offering consumers a taste of summer with its latest limited-edition cakes, Mr Kipling Strawberry Fancies. Strawberry Fancies are sponges with a vanilla topping hidden beneath strawberry-flavoured icing. Available in eye-catching pink packaging, the pack design features a picnic scene designed to inspire consumers and prompt impulse purchasing. The cakes have an rsp of £1. Michelle Wilde, brand director of cake, said: “We originally launched Mr Kipling Strawberry Fancies in 2011, and sold 1.4 million boxes over the summer months alone. For Brits, strawberry is a classic summer flavour, so making them available for the next few months is set to generate real excitement for consumers and all-important sales for retailers.” Tel: Premier Foods (01727) 815850.


Sweet ‘n’ sour MONDELEZ INTERNATIONAL – Maynard’s Sour Patch Kids has launched Soda Popz with five flavour offerings: cola, orangeade, cherryade, tropical and apple fizz, all creating a sour sensation that’s followed by a sweeter fruity flavour. Maynards Sour Patch Kids was the number one NPD launch in sugar bags in 2012 (Nielsen, total value MAT to w/e 16.3.13). Supported by a media investment of £2.6m, the new Soda Popz variant aims to drive growth within the Sour and Fizzy Jellies category, currently worth £45.7 million. Soda Popz are available in 160g packs (rsp £1.52) and 125g (£1 pricemarked packs), ideal for convenience retailers. Tel: Mondelez International (08702) 400861.

Cash & Carry Management

• May 2013 • 31

products & promotions Hot pot

Soft centre BURTON’S BISCUIT COMPANY – The biscuit and snack supplier has extended its Maryland Cookies range with the launch of Maryland Gooeys, which will be supported by a multimillion pound through-the-line campaign, including consumer sampling and advertising. Maryland Gooeys are choc-chip cookies with a soft chocolate centre and come in three variants: Chocolate, Hazelnut and Triple Choc – available in 160g packs with an rsp of £1.79, promoted to £1. Two variants will also be available in £1.29 price-marked packs. Best-selling cookie brand Maryland has seen strong sales growth across its entire portfolio, up 18% year on year (£6.7m RSV growth) (Nielsen March MAT 2013 data). Tel: Burton’s Biscuit Company (01727) 899700.

Cleaning up PROCTOR & GAMBLE PROFESSIONAL – Washing-up detergent Hederol has joined the Deepio family as Deepio Washing-up Liquid with a launch that is backed by celebrity chef Ching-He Huang. Sales director Jayne Clark said: “Deepio remains the fastest selling powder degreaser in UK cash & carries and we’re thrilled to be expanding the family with the addition of Deepio Washing-up Liquid, which is famous amongst users for its ability to remove even the toughest of stains in the kitchen.” Deepio Washing-up Liquid is ideal for washing and pre-soaking heavily soiled kitchenware and tableware under all water conditions. The washing-up liquid has been specifically formulated for professionals, delivering exceptional degreasing power while also being easy to rinse. Tel: Proctor & Gamble (0800) 597 3388.


KEPAK CONVENIENCE FOODS – This year sees the return of hot-snacking brand ZUGO’s Deli Café’s Italianthemed national sampling campaign in high-footfall shopping centres and train stations across the UK. Consumers can have their picture taken with ZUGO’s gondoliers and the activity will be supported by a dedicated Facebook campaign and competition to win an iPad Mini. According to Kepak, last year’s campaign resulted in a 120% sales increase. The range currently comprises: Chargrilled Chicken, Mozzarella & Pesto Panini, Bacon, Cheese & Mustard Mayonnaise Panini, Carbonara Pasta Pot and Bolognese Pasta Pot. Tel: Kepak Convenience Foods (01772) 688300.

Smooth spread HAIN DANIELS – Hartley’s, the UK’s number one jam brand, will now be available in price-marked and addedvalue packs. Four variants of the jam – strawberry, raspberry, blackcurrant and apricot – will come in £1.49 price-marked packs. The same four flavours of Hartley’s ‘No-Bits’ jam will feature 33% extra free, offering 454g for the price of 340g. The spreads and preserves category remains one of the most popular with consumers, with 91% of the population buying into it over the last year. All data Symphony IRI 26 January 2013.

Tel: Hain Daniels (0800) 032 7111.

• Cash & Carry Management • May 2013

Cracker snack UNITED BISCUITS – The company is launching a marketing campaign to support its savoury biscuits range, Jacob’s Oddities. This will include the return of the popular TV advert, a new radio campaign, in-store activation, and digital and social media activity. Recently voted Savoury Snack Product of the Year 2013 by consumers, Jacob’s Oddities has grown to become a £9.8m RSV brand after just one year. The TV campaign follows the journey of a bag of Jacob’s Oddities as it travels from a park bench to outer space, encountering everything from aliens to spacemen, and highlights the addition of three new variants: Salt & Vinegar, Sour Cream & Chive and Ready Salted. Sampling and in-store advertising will also be implemented in stores across the grocery and convenience channels. All of the new variants are available in multipack (5 x 25g bags) and 125g sharing bag formats with rsps of £1.59 and £1.29 respectively. Tel: UBUK 020-8234 5000.

Flavour union DIAGEO – Pimm’s is launching a new special-edition variant: a blend of Pimm’s No.6 Vodka Cup with the ‘quintessentially British’ flavours of blackberry and elderflower. This will be supported by a marketing campaign including digital and print advertising, point-of-sale in the on and off-trade, and bespoke content targeted at 250,000 Facebook fans. Pimm’s Blackberry & Elderflower will come in 70cl and one-litre formats for all channels. In addition, a premix format, which contains the new variant with lemonade, will be available to the off-trade. Tel: Diageo 020-8978 6000.



How will burgers fare this time? The horse DNA scandal could open the door for non-traditional meats on the barbecue. A big increase last year in the sale of burgers in pubs and restaurants, as well as in other outlets across the UK, is evidence of how popular this type of food is with barbecue lovers. Adrian Coulter, development chef for Kerrymaid, says: “Operators looked to cater for large numbers of people in a cost-effective and timely manner, making barbecue-style menus and burgers a popular choice, with 95% of burgers in leading quick service restaurant chains in the UK sold with a slice of cheese.” He adds that the supplier has seen heightened interest in its Original Slices, claiming “they have set the standard for burger slices in many chains. “Their appeal stems from the level of quality, as well as consistent, creamy taste, developed for consumers and, equally, in their functionality for chefs.” Coulter says the cheese slices are used by chefs to speed up service as they are easily peelable, adding to speed and efficiency in often-hectic environments. When melted, the slices also help give burgers structure, improving the appearance and convenience for the consumer.

Kerrymaid is working with celebrity chef Ben Bartlett for its barbecue season campaign, which will feature downloadable online content and recipe books that C&C/wholesalers can place in store. Original Slices come in packs of 112 slices, with eight packs per case.

Switch to chicken? According to Jayne Hall, marketing manager, Moy Park Foodservice, with the recent tarnished image of the meat trade, consumers might be switching their allegiance to other barbecue foods. She says: “Traditionally, sausages have been the the most popular barbecue food, followed by beefburgers. But more are likely to choose chicken this summer. “The success of restaurants such as Nando’s and Tramshed, which are well known for their chicken offering, is also influencing consumer tastes. Chicken is also cheaper, leaner and more versatile than many other meats, which makes it ideal as an ingredient during the barbecue season and beyond.”


Will more people opt for chicken at a barbecue?

Hall believes that barbecues provide a good opportunity for pubs to serve their customers “a tasty seasonal treat”. Moy Park Foodservice is helping caterers maximise the summer outdoor eating opportunity with a themed menu and free point-of-sale. ‘Great British Barbecue’ features a selection of products from the company, including roast chicken drumsticks. Says Hall: “Pubs are really well placed when it comes to barbecues because they often have a garden, so they have the space to host outdoor events. When the sun shines, people tend to head to their nearest pub for a few drinks with friends, so licensees should look to maximise that opportunity this summer by offering barbecues from time to time.” She adds that they have the option of having one on a regular basis – perhaps once a week on a specific day – or holding one when they feel there is a definite demand, such as a bank holiday. “Our barbecue concept is designed to sit alongside an outlet’s staple food offering as a way of making incremental profit. For those lacking suitable kitchen facilities, yet are blessed with ample outside space, it is a way to attract families, particularly during the school holidays.”

C&C/wholesale opportunity The barbecue season gives C&C/wholesalers an opportunity to cash in by tapping into the growing consumer interest in world food, particularly the Caribbean market, according to Enco Products, part of Grace Foods. “These are exciting times for Caribbean food and drink,” says Lisa Leung, brand manager for Encona Sauces, which is claimed to be the UK’s No.1 hot pepper sauce brand. “The range, which is experiencing growth of 20.1% (IRI grocery outlets 5/1/13), provides C&C/wholesalers with the perfect solution to drive incremental sales. The broad variety of uses around the barbecue occasion highlights the profit potential that spicy sauces provide.

Cash & Carry Management

• May 2013 • 33

barbecue “Whether for dipping, marinating or as a hot condiment, the Encona range has a product for every usage occasion.” Leung adds that, because barbecues are a time to entertain family and friends, this provides a good opportunity for the sauces segment. “Much of our summer marketing activity will be driving people to store and encouraging them to use our sauces to bring their barbecue to life.” Encona recently expanded its range with two new variants: West Indian Extra Hot Pepper Sauce (its hottest-ever sku) and African Peri Peri Sauce, which features a blend of African birds’ eye chillies, garlic, lemon and spices. Says Leung: “Consumers are becoming increasingly adventurous with flavours, and many are seeking new levels of heat when it comes to sauces.” Denoting three usage occasions – as dipping sauces, cooking ingredients or hot condiments – Encona sauces come in new colour-coded trays. Under cooking ingredients are: Jamaican Jerk BBQ, African Peri Peri, Barbados Creole Pepper and Thai Chilli & Ginger sauces. Dipping sauces cover Indian Sweet Mango Chilli, Thai Sweet Chilli, Thai Chilli & Garlic and Texan Chilli BBQ sauces. Hot condiments include: West Indian Original Hot Pepper, West Indian Extra Hot Pepper, Louisiana Cajun Hot and West Indian Smooth Papaya Hot Pepper sauces. Part of a multiGrace Foods last year organised the style range. UK’s first Caribbean Food Week – an initiative that is being repeated in 2013 in the run-up to the Notting Hill carnival in August.

For carnivals Jag Singh, brand manager of Tropical Sun Foods, says that most cash & carry operators, as well as retailers, overlook what he describes as the ‘carnival season’, which comes into full swing in early July and ends on August bank holiday. “Large events are held across the UK in such cities as Birmingham, Manchester, Bristol, Nottingham and London, all accompanied by a huge amount of marketing and razzamataz. What the C&C/wholesale trade must do is capitalise on this opportunity to inspire customers with carnival and barbecue themed promotions.” He adds that, over the past five years, there has been an increase in sales of some of the company’s core Caribbean lines, such as Jerk BBQ Sauce, Traditional Jerk Seasoning and its range of condiments and seasonings. “Jerk chicken has been popularised at carnivals and outdoor festivals, and the Caribbean food and drink market itself has seen impressive 15% year-on-year growth (IRI 2012). Consumers then want to recreate the unique jerk taste at their own barbecues. This has made jerk the ultimate barbecue meat treat.” Singh says that, at carnival time, what works particularly


• Cash & Carry Management • May 2013

well is the ‘troika’ of the Caribbean barbecue: Jerk BBQ Sauce, Traditional Jerk Seasoning and Dry Jerk Seasoning. “These three are versatile and can help to tailor heat intensity and taste, from a more traditional Caribbean fiery flavour to a lighter, smokier taste. All can be used as a marinade for meat at any time of the year.” Tropical Sun Foods recently launched Rub Rub, a range of four coarse premium seasonings for meat and vegetables. Singh says: “The bigger grains mean they can be imbedded into the meat to release a richer and more potent flavour.” Available in meat, chicken, fish and hot styles, they have an rsp of £2.49.

Cashing in on dough Pan’Artisan, which makes frozen, part-baked pizza bases, dough balls and full and part-baked speciality breads to traditional Italian recipes, has launched two lines in individual packs – “just in time for C&C operators to cash in on the forthcoming barbecue season,” says managing director Richard Jansen. He adds: “For many years we have been supplying the foodservice sector through wholesalers and distributors, but we recently took the decision to pack two of our popular products in single packs.” Tear & Share Garlic Bread can just be heated and served. It is injected and coated with garlic butter and contains Italian herbs. Each loaf provides eight pieces. The second item, 5 Tasca, is an alternative to part-baked panini and is claimed to be ‘great for serving high volume in a short space of time’. Tasca is a folded, full-baked bread pocket that can be filled with burgers, sausages and kebabs. It comes in four styles: red onion, Caesar, plain and multigrain. All of Pan’Artisan’s products contain less than 1% salt.

For further information: Enco Products (01707) 326555 Kerrymaid (01784) 430777 Moy Park Foodservice (01480) 445900 Pan’Artisan (01730) 811490 Tropical Sun Foods 020-8988 1100


: The number one melt.

Kerrymaid Original Slices really top the lot â&#x20AC;&#x201C; unbelievable melt, amazing taste and delicious texture.

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

soft drinks

Delivering despite the weather Soft drinks is a vital category for the wholesale sector and for its customers, and even without any help from the notoriously unreliable British climate it is still delivering growth for the sector. Despite appalling summer weather in 2012, followed by a harsh winter, soft drinks has proved to be a highly resilient category, according to Dave Turner, trade communications manager, Coca-Cola Enterprises (CCE). He says: “While other categories have slowed in growth in the face of economic challenges, soft drinks continue to deliver sales for wholesalers and retailers.” New this year for the impulse category is the introduction of the 1.75-litre pack size on Coca-Cola, Diet Coke, Coke Zero, Cherry Coke and Vanilla Coke. Turner says: “The new pack has been introduced for retailers to capitalise on shoppers making single bottle missions to their local convenience store. Easier to transport than the traditional two-litre bottle and with a lower rsp of £1.79, the 1.75-litre bottle is designed to make take-home formats of cola more accessible by offering value to convenience shoppers.” The pack itself comes in the iconic contour-shaped design to deliver increased in-store stand out, and the new format is also available in a £1.79 price-marked pack. Turner told Cash & Carry Management that price-marked packs offer a huge sales opportunity for wholesalers’ retail customers because consumers are more likely to buy them, and CCE remains committed to a broad range of PMPs across the different soft drinks sectors. At the start of 2013, the company introduced an updated portfolio of PMPs, aimed at allowing retailers to offer their shoppers the best value in 2013 across a range of both on-the-go and future consumption packs. Turner says that while it is important to stock on-the-go PMP SKUs, with the increasing importance of the convenience channel there is a growing need for larger formats and CCE has introduced 1.75-litre bottles. multi-pack sharing PMP products, which CCE has addressed with its new portfolio. The new price-marked lines for 2013 include: Coca-Cola, Diet Coke, Coke Zero and Cherry Coke 500ml PET 2 for £2; Fanta, Fanta Fruit Twist, Sprite and Dr Pepper 500ml £1; Powerade Sport 500ml £1; Oasis 500ml £1; Coca-Cola, Diet


• Cash & Carry Management • May 2013

Coke and Coke Zero 4 x 330ml can multipack £1.99; and Ocean Spray one-litre Tetrapak £1.39. He says that these all offer strong profit on return potential, which will be communicated by individual wholesalers. CCE also offers PMPs in on-the-go formats including: Coca-Cola, Diet Coke and Coke Zero 330ml single can 59p; Fanta, Fanta Fruit Twist, Sprite and Dr Pepper 330ml single can 55p; and Relentless and Monster Energy 500ml cans £1.39. However Turner emphasises that the choice of unpriced packs will always be offered because the supplier understands that some retailers want more control over their pricing.

Market data Soft drink sales are currently worth £754m in cash & carry, according to IGD’s Grocery & Foodservice Wholesaling 2012 report, while in the overall market soft drinks are edging ever closer to becoming a £10bn category, reaching £9.9bn in 2012 according to the Britvic Soft Drinks Review. Using data from Nielsen it says soft drinks generated sales in grocery, convenience and impulse of more than £7.2bn, growing at a steady 2.8% in value, which was largely driven by the ongoing popularity of cola, as well as the recovery of plain water and rising success of glucose stimulant drinks. CGA data shows that pubs & clubs sales totalled £2.7bn, up 1.5% in value. Cola maintained its status as most popular soft drink, accounting for 22% of take-home sales, and glucose stimulant drinks had the best year ever, growing almost 10% in volume and value. Own-label soft drinks dipped in popularity, delivering a static value performance and a 3.6% decline in volume. Britvic remained the leading supplier to pubs & clubs with a 45% value share, and cola remained the largest pubs & clubs soft drinks subcategory with almost half of all soft drinks volume sales.







CONTACT US ON: 01204 664 295

Source *1: Nielsen Scantrack, Value Sales, MAT to 02.02.13, Total Impulse

Red Bull has launched price-marked cans.

Category driver With the penetration of the energy drinks category now at 40.7%, according to Kantar, and growing faster than all other categories, Tom Smith, Red Bull trade communications manager, predicts it will be the main category driver within soft drinks. He says Euromonitor and Mintel forecast that sports & energy will generate 50% of soft drinks growth, delivering an additional ÂŁ338m by 2017. He says wholesalers and cash & carries are also enjoying a successful time with sports & energy at present and this looks set to continue, but he suggests there are some big opportunities for further growth by adapting range and space to fit the current landscape in the market. Soft drinks is one of the most frequently purchased categories in depots, and as sports & energy is the fastest growing category, depots should look at their fixtures to make sure they are reflecting this. Many depots havenâ&#x20AC;&#x2122;t relayed fixtures for a number of years, which could mean they are missing out on sales by not giving enough space to the best performing categories. Smith also points out that 183 products registered sales in the category in the past 12 months but over 50% comes from just eight SKUs. Depots should consider the value each SKU is delivering to their business and help retailers understand which products are must stocks by making core range recommendations. He says: â&#x20AC;&#x153;Value in the category is being driven by the market-leading, branded products but there is a role for value brands too. However, depots should consider

the interests of their customers by supporting the brands that drive good cash margin and profit and not trade customers down to cheaper alternatives.” Smith reports that Red Bull is the No. 1 energy drink with a 22% share of sports & energy as a whole, according to Kantar. He says Red Bull has backed its products with strong promotional activity and will be investing £2m in Red Bull Sugarfree, in addition to its high-profile sponsorships including the Formula 1 world champions. This year the company launched Red Bull Editions, three new flavoured drinks: Red Bull Red Edition (Cranberry), Red Bull Silver Edition (Lime) and Red Bull Blue Edition (Blueberry) with all the functional benefits of Red Bull. Smith says they have had a hugely successful distribution build so far and have moved into the top five flavoured energy SKUs, and this was before a £3.5m above-the-line campaign which kicked off in March across the UK. Also, from this month, Red Bull is launching a new pricemarked range across all formats of Red Bull Energy and Red Bull Sugarfree. Red Bull 250ml (£1.19), Red Bull 355ml (£1.59), Red Bull 473ml (£1.99) and Red Bull Sugarfree (£1.19) will all be available as price-marked cans.

Rockstar racks up sales Price-marked packs have already worked well for AG Barr, according to head of marketing Adrian Troy. He says the use of long-term PMPs has delivered year-on-year sales increases, with Nielsen Scantrack reporting Rubicon up 14% and increases of 15% for Ka, 7% for Irn Bru and Barr, and 75% for Rockstar. Troy says that catering for consumers from differing ethnic backgrounds is also vital. “The fastgrowing ethnic market is of increasing importance to retailers and it now accounts for 10% of the UK population. AG Barr has added SuperSours to its “Soft drinks is range of Rockstar flavours. the most regionally and ethnically diverse category and the key to taking advantage of this growing opportunity is tailoring soft drinks ranges to meet consumers’ specific needs, rather than taking the ‘one size fits all’ approach.” Wholesalers should also ensure they get their share of the growth of energy drinks, he recommends. He says Nielsen shows Rockstar was the fastest growing big can energy brand in 2012, growing at 75% year on year. He adds: “NPD has been the key driver of growth in the energy category.” In 2012, Rockstar launched Fruit Punch under the Rockstar Punched brand, Xdurance Berry and an Xdurance Orange in 500ml PET in plain pack and 99p PMP.

soft drinks Most recently it launched a new flavour range, Rockstar SuperSours, with BubbleBurst and Green Apple variants, which taps into a growing consumer trend for sour flavours. “Sour flavours are growing in popularity at a rapid rate,” says Troy. “Half of all energy drinkers consume sour flavours in other food and drink categories. By combining Rockstar’s unique energy formula with an electrifying sour taste, we are attracting new shoppers to the brand as well as offering something new and exciting to the brand’s existing consumers.” AG Barr is aiming to boost profits for cash & carry outlets with a six-month programme of heavyweight support for Irn-Bru, the UK’s No.1 flavoured carbonate, spearheaded by three new TV commercials. The £5m ‘Irn-Bru Gets You Through’ campaign will feature special packs, dedicated PoS, a new website and social media support as well as the TV campaign which is on air now. “Irn-Bru has an irrepressible, resilient and optimistic outlook and the new adverts reflect the cheeky, maverick attitude for which the brand is well-loved,” says Troy. “Things may be grim out there but Irn-Bru can be relied on. The IrnBru Gets You Through campaign really engages consumers with the brand and we expect a surge in demand for Irn-Bru: outlets should prepare to stock up.”

Value for money Nigel Paine, commercial director impulse at Britvic, says there are a number of trends that are affecting the wholesale sector, with value for money being one of the key issues. Shoppers increasingly expect convenience stores to offer similar value to multiple grocers and in order to capitalise on this, retailers will be looking to offer a variety of promotions and discounts in store. Caterers will also be buying more promotions, buying more in bulk and being more price savvy by comparing prices between wholesalers. Research by him! backs this up, showing that 70% of retailers and 56% of caterers who noticed a promotion on display in depot then go on to buy it, and soft drinks is the most purchased product on promotion. Paine says: “In depot, it is essential to offer visible value; stocking the right range of PMPs and including PoS as part of deals will give customers the right tools to offer value to consumers instore/in-outlet.” Paine suggests there are a number of ways that cash & carry operators can maximise their sales of soft drinks.

BUYER’S VIEW FROM HQ Gurms Athwal, senior trading controller at Hyperama, says: “Overall, soft drinks have been a bit more of a struggle over the last 12 months, compared to before, but that has been down to the weather, and it is still one of our best performing categories in the cash & carry. “Sports energy drinks has been a very big category, and with Boost in particular we have had a very good couple of years, as we have with sales our ownlabel LSV. Monster has done well and Rockstar has been particularly good. “Over the last three years we’ve also grown with GSK. Lucozade Sport and Lucozade Energy moving to 79p have done really well and we’ve been very impressed with the new flavour Ribenas. “With Red Bull we’re not growing as fast as we did, but we’ve got a promotion coming that is probably a reaction to that. Rockstar and Monster did well with the new flavoured drinks and that is where Red Bull has been a bit behind although they’ve launched theirs now. “We have had a decent time with water over the last 12-24 months but a lot of that has been driven by price. Even fruit carbs, which have had a tough time over the past year, have come back quite strongly. That’s down to a lot more price marking from suppliers which has helped them gather momentum. “Rubicon is growing really well with us. Even before Barr took it over we had a good base and it’s going from strength to strength. “Price-marking has really helped with Monster and Relentless, but we want to make sure that we are not just selling a lot more on price but bringing some value back into the market as well. “With Coke moving down to 1.75-litre and its ‘two for £2’ promotion they’ve been quite aggressive, but we hope they keep that up over the summer to keep it competitive against the mults. “After such a bad winter we’re all banking on a good hot summer, because the weather can have a big impact. A bit of sunshine and all forecasts go out the window.”

• Get the right range: work with your suppliers to analyse

A new advertising campaign is backing Mountain Dew.


• Cash & Carry Management • May 2013

your current range versus the wider market range in order to understand what the right range should be for your depot and your customers. It’s important to be aware of emerging consumer trends, such as the growing demand for energy drinks, and stock soft drinks that meet this need, like Mountain Dew Energy. Also, make sure you stock the right range for all your different customers. Licensees might


New 1.75l pack

Designed for convenience stores. Every day value for shoppers. The new 1.75l pack has been introduced just for convenience stores like yours. It comes in the iconic Contour shape to stand out on shelf. It’s also easier for shoppers wanting to pick up a bottle to take home. And it offers every day affordability at an RRP of £1.79. Make sure you’re stocked up. Coca-Cola, Coke, Diet Coke. Diet Coca-Cola, Coca-Cola Zero, Coke Zero and the Dynamic Ribbon Device are registered trade marks of The Coca-Cola Company.

soft drinks need glass formats of popular carbonated brands, rather than the PET format that a retailer requires. Category advice at main fixture: cash & carries need to position themselves as a business advice centre that helps their customers to grow their sales. Offer engaging business building advice at the main soft drinks fixture and speak to customers on a regular basis to help them maximise their soft drinks sales. Dedicated fixture area: create a dedicated soft drinks area in depot to make shopping easier, with signposts placed throughout depot to ensure that customers find their way to the fixture. Break the fixture into the different segments (cola, pure juice, energy drinks) and formats (bag in a box, on-thego, take home) to make shopping simpler. Provide a logical fixture layout: ensure all products are visible by avoiding single facings, managing your lower performance SKUs and palletising those brands that deserve that space. Place related sub-categories, such as cola and carbonates, next to each other, and even complementary categories such as soft drinks, snacks and confectionery next to each other in depot. The latest activity from Britvic Soft Drinks and PepsiCo UK is the launch of the first TV campaign in the UK for Mountain Dew. Airing on national and satellite screens throughout May and June for a total of eight weeks, the brand’s campaign focus will be on its latest product development, Mountain Dew Sugar Free. Jonathan Gatward, marketing director at Britvic, comments: “This is the first time Mountain Dew will be on TV in the UK and we’re really excited about the awareness this advert is sure to generate.” The Mountain Dew range comes in Mountain Dew Energy and Mountain Dew Sugar Free 500ml formats. To support the brand in the convenience channel, Britvic will be communicating its taste and energy credentials through disruptive and eye-catching PoS utilising the tagline ‘The Energising Taste of Awesome’.

Stepping up to 500ml Boost has launched two 500ml cans – the first in its product range – in Original Energy and a new Orange & Mango flavour. The SKUs are available in price-marked packs at 89p. Al Gunn, Boost’s sales director, explains: “Sales of 500ml cans have grown by 47.2% in the last year alone and have shown the strongest growth in the energy drinks sector. The time is definitely right for us to launch into this area of the market and we are doing so with two great products – our Boost Original Energy flavour and a great-tasting new Orange & Mango variant. “Boost Energy is an award-winning range, picking up the prestigious FWD Gold Medal for Grocery Brand at the end of last year, so we are confident that these products will quickly become a firm favourite among our target consumers – thereby offering great sales and profit opportunities for our valued network of wholesalers and independent retailers.” Price-marked packs continue to be a major part of Boost’s strategy to support independent retailers via the wholesale industry, as managing director Simon Gray explains: “As a champion of the independent retail sector, price marking


• Cash & Carry Management • May 2013

Boost has launched 500ml cans price-marked at 89p.

forms a major part of our business and marketing strategy. Our aim is to price our products at a point which offers the consumer great value for money to drive sales and increase brand loyalty, while at the same time ensuring great profit margins for wholesalers and retailers. “Nearly 90% of our business is through the wholesale channel and it will continue to be our main priority. From a soft drinks category perspective, when it comes to consumer purchase behaviour, independents have a major advantage over the multiples.”

Diet drink provides heavy returns Almost one million UK households have purchased Cott Beverages’ value energy drink Emerge in the last year, according to Kantar World Panel, and fuelled by this growth, the Emerge drinks range has continued to expand to offer a wide range of formats and flavours to cater for the ever-growing market. One particular area to show a rise in popularity is that of the ‘diet’ energy drink, with the lower calorie products showing stronger growth than regular versions. Emerge Sugarfree is targeting this trend with its traditional energy-boosting properties, but at just 15 calories per can. Brand manager, Calli O’Brien says: “Whether it’s a post-workout pick-me-up or pre-revision refreshment you’re looking


ery 2012 c o r G r a e Y e th rand of pulse* Im • Gold Medal B in h it w d n al energy bra n o ti c n fu .2 o N • the UK in d n ra b s k in r • No.12 soft d rmance and fo r e p t a e r g , te • Great tas margins even greater

*Sales out for year to 31st August 2011 (based on wholesale sales to more than 30,000 independent stores).

soft drinks for, there are numerous reasons to reach for an energy drink. As such, from our fruity sports drinks to our carbonated glucose varieties, each and every product in the Emerge range has been designed to complement a specific lifestyle or consumer need. “With this in mind, we wanted to ensure that we also catered for those seeking a healthier alternative to energy drinks and our low calorie Sugarfree Emerge is the perfect fit.” As part of its commitment to variety, Emerge has also invested in a series of different formats for its range. With one-litre bottles for social groups, 250ml cans for onthe-go drinkers and 500ml sports cap bottles targeting workouts, it caters for all the different uses of the product. Most recently, the brand was also launched in a 500ml can, which is already showing very strong growth. O’Brien says: “With continued product development and its biggest-ever marketing campaign set to launch this spring, the Emerge brand looks set to go from strength to strength. Attracting new customers to the brand and offering even more choice to existing customers, it’s easy to see why the brand has become the fastest-growing value functional energy drink on the market.”

The juice drink contains 50% less sugar, due to the addition of a ‘super’ natural new sweetener named Stevia. This sweetener enables juice drinks to be made naturally with a fraction of the calories previously possible. The Stevia plant is indigenous to the tropical regions of Central and South America and has been used as a natural sweetener for centuries by the Guaraní people of Paraguay. Leaves of the South American shrub are 250 times sweeter than sugar but are calorie free and they are steeped like tea to release their sweetness. Del Monte Naturally Light contains just 50-63 calories per 250ml glass. The juice drink is available in three flavours: Mango and Papaya, Pineapple and Lime and Super Fruits. All provide 100% of the recommended daily allowance (RDA) of vitamin C and 50% of the RDA of vitamins B, E and selenium, which are important to the body’s immune system, energy production and skin. Tony Gill, Del Monte UK commercial director, says: “Del Monte Naturally Light, with its high juice and low calorie content, offers people an easy way to drink more healthily. It is fantastic to know that it is enjoyed by so many and that it is the UK’s soft drink of choice.”

Getting on-trend The recession is having an impact on the trends emerging in the soft drinks market, says James Logan, commercial director at Gerber Juice Company. “Juices that continue to do well in the recession are those which can be used for all the family, taste good and have practical benefits. “Ambient juice is really important in the convenience sector – many retailers do not have a vast amount of chilled space to hold stock so being able to store products is key. Ambient juice also offers the consumer a long-life option and lessens waste. “Exotic flavours are still popular and we continue to add different exotic flavours to our range. Last year we introduced mango for Just Juice and several exotic flavours including grape, raspberry and guava for Sunpride. “Consumers continue to be concerned with sugar and calorie content so light options such as Del Monte Naturally Light form part of a growing trend, with many using zero calorie natural sweeteners such as Stevia.” Del Monte Naturally Light received a boost when it was awarded the title of soft drink of the year at the annual Product of the Year awards, after winning a poll in which more than 10,000 consumers voted.


• Cash & Carry Management • May 2013

Naturally Light was voted soft drink of the year.

NPD drives performance Innovation and NPD were fundamental to driving market performance in soft drinks in 2012, with marked success from products that aligned to the consumer demand for healthier/low-calorie alternatives, says Georgina McElwaine, GlaxoSmithKline Consumer Healthcare (GSK) category controller. But ‘healthier’ means different things to different people. It can be anything from a lower calorie alternative to an everyday drink through to offering an additional functional benefit over and above refreshment, such as a product that is designed to help people perform at their best. McElwaine says an example is Ribena Plus, where the health benefits are attributable to be added vitamins and minerals.



With three-quarters of shoppers saying they believe price-marked packs improve a store’s price image,* just watch how fast our cans will fly off your shelves. Our new price-mark range will reassure your customers that they’re getting a good deal, not to mention deliver more profits for you. Red Bull Gives You Wiiings.


soft drinks With so much NPD in the soft drinks category, McElwaine says wholesalers can help their customers see through the range of new products in the market and recommend the best and most important products in each category, and which ones they should be supporting. She adds that wholesalers can also help by educating their customers on the significance of passing on the promotions and discounts they receive in depot by converting them to in-store promotions, which will help to deliver incremental sales for the retailer. GSK says it is working hard on its new product development. Building on the consumer trend for healthier products, it launched Revive by Lucozade, which is designed to meet demands for a light, energising drink with reduced calorie content. Exotic flavours are also growing in popularity, and this inspired the makers of Ribena to launch two tropical flavours – Mango & Lime and Pineapple & Passion Fruit. McElwaine says: “The 500ml ready to drink (RTD) variants are intended to enable impulse retailers to harness the sales opportunity presented by the exotic flavour sector.” She continues: “In the last 12 weeks, juice drinks with mango and/or pineapple flavours drove 48.2% growth of the total juice drinks category, and the new Ribena flavours are set to accelerate sales growth for customers.” The makers of Lucozade Sport have also launched a new specialised sports drink in partnership with Formula 1 driver Jenson Button and the Vodafone McLaren Mercedes team. Lucozade Champions’ Choice is available in two flavours: Mango & Passion Fruit and Lemon & Lime, and McElwaine maintains that the new launch is set to drive significant penetration and sales into the £1 billion sports & energy category.


• Cash & Carry Management • May 2013

Juices growing in popularity Razin Ali, Sunmagic brand manager, advises that the cash & carry sector needs to ensure it has a comprehensive range of fruit juice, juice drinks and smoothies given that this part of the market enjoys almost universal popularity, with almost nine in 10 consumers frequently consuming these drinks. He says Sunmagic has the most comprehensive branded range of flavours and sizes of 100% pure fruit juices, 100% pure fruit smoothies and juice drinks in the UK, with sales up by over 30% year-on-year for both January and February 2013.

‘Cash & carry and wholesale are incredibly important to Sunmagic, not least because they are the biggest channels we work in’ Razin Ali, brand manager, Sunmagic In February, Sunmagic launched its exotic juice drinks range, which he says should be an obvious choice for the cash & carry sector, where exotic juice sales are especially strong. Ali says: “Due to consumer and trade demand, we are likely to launch two additional flavours for our new exotic range in mid-summer, which will be packaged in the same one-litre re-cap packs as the rest of the range. Other new launches are likely to include two new flavours for our 500ml bottle range, again to meet consumer and trade demand.

Sunmagic launched its exotic juice drinks range in February.


soft drinks “Cash & carry and wholesale are incredibly important to Sunmagic, not least because they are the biggest channels we work in. Both provide one of the key routes to market and are therefore essential to our brand. We offer our cash & carry customers and wholesale buying groups bespoke promotions to answer their particular needs, while also being mindful of current category buying trends.” This year Sunmagic is investing more than £1m to support its brand with initiatives including a national radio campaign and a new film partnership to be revealed in the summer. This follows Sunmagic’s exclusive soft drinks category partnership with 20th Century Fox and Ice Age 4, which finishes at the end of May.

Investing in the brand

after the gold medal performances of the Jamaican team in last year’s Olympics. Baldwin’s Sarsaparilla cordial, a Caribbean-style root drink, has also recently been launched in the UK by Wanis. The Tropical Sun brand is also growing strongly, says Singh, with Tropical Sun Coconut Water offering three flavour options and Tropical Sun Ginger Beer benefiting from increasing consumer interest in new tastes.

On-pack promotion Graham Breed, convenience channel marketing director for Princes, which owns the Aqua Pura brand, says: “2013 is a big year of investment for Aqua Pura. The brand has sponsored Cancer Research UK’s Race For Life for three years, and we have committed to upweighting our support for 2013 which will see us not only give away over 650,000 bottles of Aqua Pura on race days, but also action a hard-hitting recruitment campaign to encourage more people to take part. “An on-pack promotion on 10 million bottles of Aqua Pura promotes our sponsorship of Race For Life, and includes a competition to win a holiday in a camper van. This will be supported by advertising and a fully integrated digital campaign, new website and web app that encourages online engagement with the brand.”

Tropicana offers the chance to win £5 every minute of the day.

PepsiCo’s Tropicana is another juice brand involved in a lot of activity. It is launching Trop50, a new fruit juice drink with half the calories and half the sugar of regular juice, and it also has an on-pack promotion offering consumers the chance to win £5 every minute of the day. Peter Charles, Tropicana marketing director, said: “To support the launch of Trop50, we are investing in an upweighted marketing campaign. We are encouraging independent retailers to make the most of this opportunity and stock up on Original Smooth and Orange & Mango in on-the go-formats (330ml) and Orange Smooth in take-home (onelitre) formats, catering for breakfast, lunch and refreshment throughout the day.” A fully integrated marketing campaign including TV advertising, PR, digital and extensive sampling will run in 2013.


Princes has big plans for Aqua Pura in 2013.


For further information:

East-London based Wanis is a wholesaler, specialising in Caribbean products, and also a distributor to many other wholesalers. Marketing manager Jag Singh says Bigga is showing strong growth, with the Jamaican soft drinks brand benefiting from the increased interest in Caribbean products

AG Barr (01204) 664295 Boost Drinks (0113) 240 3666 Britvic (0845) 758 1781 Coca-Cola Enterprises (08457) 227222 Cott Beverages (01509) 674915 Gerber Juice Company (01278) 441600 GlaxoSmithKline Consumer Healthcare 020-8047 5000 PepsiCo (0118) 930 6666 Princes (0151) 966 7000 Red Bull 020-3117 2000 Sunmagic 020-7274 6090 Wanis 020-8988 1100

• Cash & Carry Management • May 2013


beers & lagers

Capitalising on changing drinking patterns Kingfisher Beer Europe (KBE) has announced that Heineken will brew Kingfisher Beer in the UK on its behalf and handle sales and distribution of the brand to selected national offtrade retail customers. Heineken will also make packaged Kingfisher Beer available to its Star pubs & bars customers. KBE will continue to take responsibility for overall brand strategy and development of Kingfisher Beer, marketing and promotion of the brand and support for its own directly-supplied trade customers in the UK. The new arrangements will come into effect in October, at the conclusion of KBE’s current UK agreement with Shepherd Neame, with a phased transition of brewing and packaging to Heineken. Chief executive officer of KBE Damon Swarbrick says: “As India’s number one brand we are looking forward to working with Heineken to develop the significant opportunity that exists in the UK market. Kingfisher Beer Europe will remain a stand-alone brand-focused business responsible for the sales and marketing of the brand. We have an exciting programme of consumer and customer initiatives, which we look forward to bringing to the market from October.” Managing director of Heineken Stefan Orlowski adds: Heineken comes ‘Alive’ in a new campaign. “It will enable us to expand our range of premium world beers that we can offer through our modern retail customers and Star pubs & bars estate and add further diversity and interest to the beer category.” Heineken has also launched a new heavyweight outdoor campaign for its flagship premium imported lager, which ‘represents the spirit and ambition of the brand to constantly stretch the borders of innovation and refreshment’. The ‘Alive’ campaign is the largest UK outdoor activity for the brand to date. The advertising is running on road, rail and underground commuter sites in London, Liverpool, Manchester, Birmingham and Edinburgh until October. The Heineken campaign emphasises the premium quality credentials of the brand and has four executions entitled: Rush Hour, Global Cooling, Boom and Dream In Green.


• Cash & Carry Management • May 2013

Sales director Martin Porter says: “Alive is the largest outdoor campaign with the highest media weight in the history of the Heineken brand in the UK. Heineken is currently enjoying double-digit growth in the UK and the new campaign will make an important contribution towards Heineken becoming the UK’s leading premium lager brand.”

Long-term leader Carling from Molson Coors has been the UK’s number one lager brand for more than 30 years (total trade UK sales volume, CGA 23/02/13 and AC Nielsen 30/3/13). “Carling can be relied on to boost sales, particularly in the summer months when consumers are looking for drinks that are especially refreshing,” says senior brand manager Rob Hollis. The seasonal lager, Carling Zest, was so successful in 2012 that Molson Coors has introduced a new limited edition Hint of Ginger flavour especially for the summer, and Carling Zest with a Hint of Citrus is now a permanent part of the company’s portfolio. When testing the product, Molson Coors found that the Hint of Ginger would attract a further 37% of consumers to Carling Zest. “Carling Zest with a Hint of Ginger is an alternative to light summer drinks, such as fruit ciders, appealing to male and female drinkers,” adds Hollis. Both Carling Zest products will be supported by a £5.3m TV and print marketing campaign. Molson Coors extended its Carling brand earlier this year with the launch of Carling British Cider following consumer research indicating it was the most refreshing and preferred cider (SPA Future Thinking July 2012). The brand also won a gold medal at the International Brewing Awards.

The UK’s number one lager brand.


TASTE THE NEW REFRESHMENT OF FOSTER'S CUT WITH CLOUDY LEMON Tap into a ÂŁ300million category opportunity! 1 NEW Foster's Radler is a refreshing new liquid made with Foster's lager and cut with lemon juice Providing double refreshment which hits the spot, this perfectly balanced refreshing liquid is fruity & sharp yet still rooted in beer at 2% ABV In Europe, Radler has created a whole new category of its own, where in some markets it commands 9% of the total beer market with up to 30% of drinkers being new to the category1 Launched by the UK's No.1 Off trade standard lager brand, 2 Foster's Radler will be supported by a heavy-weight launch plan, including print, outdoor and digital media As a premium product, Foster's Radler should be ranged in your chiller next to Foster's Gold and other premium lagers

DON'T MISS OUT ON YOUR SHARE OF FOSTER'S RADLER SALES! STOCK UP NOW! Source 1. HUK internal data. 2. IRI - MAT to 22nd December 2012.

Over 18s only

beers & lagers Made in Herefordshire, Carling British Cider is designed to appeal to a wide cross-section of consumers, for a range of occasions.

Focus on innovation Carlsberg UK’s launch of Carlsberg Citrus – a 2.8% abv lager blended with natural Persian and Key limes – marks the first innovation for the brand in a number of years. In independent consumer taste tests, 70% of consumers preferred the beer to competitor brands (independent consumer research vs benchmark conducted by HPI independent consumer research, August 2012). Director of marketing David Scott told Cash & Carry Management: “The lower strength beer category is growing by 50% year on year (AC Nielsen volume HL MAT data to 21/7/12) so it makes perfect sense to develop a beer that will support our customers with a beer their consumers want.” The launch is being backed by a Citrus TV advert this month, plus sampling, national print advertising and PR. Carlsberg Citrus remains true to its parent brand by being presented in the familiar embossed bottle, providing consumer confidence and stand-out on shelf. Carlsberg UK claims to have been key in driving sales in

the independent channel and has sold 17% more units this year. This growth has been generated largely by Carlsberg Export, which now sells over 2.7m units each year (Nielsen, independent channel, MAT data to 2.3.13). A recent innovation from the company is Somersby Cider – a crisp cider with no artificial sweeteners, flavours or preservatives and no added sulphites. The product is initially available in cans and 500ml bottles and Carlsberg will be supporting the launch in cash & carry with premium point-ofsale kits. Darran Britton, marketing and strategy director, says: “This is a major initiative for Carlsberg and demonstrates our increased focus on innovation, coming just two months after the launch of San Miguel Fresca. At a time when our beer brands are growing share, the launch of Somersby also adds momentum to our business.” The Somersby brand was originally launched in Denmark and Norway by Carlsberg Group in 2008 and is now available in more than 22 countries in Northern and Western Europe and parts of Asia. It will benefit from a multi-million pound marketing campaign with extensive sampling and in-store promotions over the coming months.

International appeal

BUYER’S VIEW FROM HQ “Trading in beers & lagers is very tough and competitive, but our sales remain in growth ahead of the market,” reports Manish Dhamecha, managing director of Dhamecha Foods. “Beers & lagers is a significant category and footfall driver, particularly during the summer and Christmas,” he adds. The prospects for the sector this summer are “heavily dependent on the weather and also activity in the grocers”. According to Dhamecha, the beers & lagers market has polarised, with “the bottom and top ends performing the strongest”. Suppliers are fighting hard to retain share. “There is an increasing amount of price reductions and promotions from suppliers as many of them are struggling with sales during 2013.” Dhamecha highlights Heineken as a supplier that offers strong support to the wholesale channel. “Heineken has excellent understanding of customers’ needs, a quick decision-making process, and strong, channel-specific category management and insight initiatives. Furthermore, it works very collaboratively with its customers.”


• Cash & Carry Management • May 2013

Krombacher is targeting the C&C sector.

Krombacher Brewery, the home of Germany’s number one pils, is extending its reach into the multiple, cash & carry and delivered wholesale market. Already reaping the rewards of the appointment of sector specialists Invicta, Krombacher has recently achieved listings in a number of cash & carries. Krombacher’s beers are brewed at the Krombach Brewery in Kreuztal-Krombach, and the brewing process uses the unique spring water, known as Felsquellwasser, which originates at the base of the Rothaar mountains. Krombacher is also brewed according to the German purity law of 1516. Krombacher has three beers available to the sector: Pils, Weizen and Dark. All come in cases of 12 x 500ml bottles. “Growing distribution and strengthening sales in this sector is a focus for us at Krombacher and the channel is vital for the growth of our business,” comments sales agent Julian Penny. “The world beer category continues to


Join the Krombacher Family and Make the Most of World Beers • Krombacher Brewery founded in 1803 • Only ever brewed in Krombach • Brewed using the unique spring water known as Felsquellwasser® • Krombacher Pils is a refreshing beer with a distinctive, finely bitter taste combined with a full-flavoured aroma. It’s a genuine premium pilsner beer with an abv of 4.8% • Krombacher Dark is a full bodied beer which has moderate bitterness, is lightly hopped and rich in malt for a well-balanced character leads to a full flavoured, intense finish with an abv of 4.3% • Krombacher Weizen is a fruity, full-bodied and naturally cloudy Wheat beer at 5.3%, naturally tangy, golden in colour and has the unique characteristic of a wheat beer

Contact one of our UK Importers to discuss how to stock Krombacher Morgenrot Group Tel 0845 070 4310 enquiries@morgenrot.co.uk Oakham Ales Tel 01733 370500 info@oakhamales.com To find out more about Krombacher, please visit www.krombacher.co.uk

beers & lagers grow and by listing Krombacher’s beers, stockists can be assured that they are providing authentic world beers as well as offering a variety of beer styles that will intrigue and captivate their customers. “We are delighted to be working with cash & carries such as Dhamecha and Imperial and look forward to developing positive working relationships with other leading organisations in the channel and demonstrating how Krombacher can build sales in their businesses.” Carib lager offers cash & carry and retail businesses a triple-threat package to attract shoppers to spend in the beer category. Firstly, it is a world beer, an area of growth in athome and increasing outof-home drinking, so meets consumer trends and appeals to their increasingly adventurous sensibility. Secondly, it’s a bottled beer, which has a premium-value consumer perception and allows businesses to charge a premium at retail, which can help to deliver a strong margin. Thirdly, it is Caribbean – one of the UK’s fastest growing world food sectors, with 21% year-onyear growth (IRI UK Caribbean food and drink category, retail sales MAT Meeting consumer trends. 2012). The combination of these three elements has helped Carib lager deliver 15% year-on-year growth (Wanis Ltd retail sales figures), and is why the brand is said to be a must-stock for wholesalers keen to grow sales in the category. Sales director John Payne says: “Consumers are more cautious with their spending on the whole and are spending less on at-home beer. However, when they do indulge they opt for a premium and more adventurous offering, which has helped the world beers segment deliver an impressive 8.8% growth in value sales (Nielsen 52 w/e 18 Aug). This is a growing trend that cash & carry buyers should be aware of to capitalise on the shift in drinking patterns that is essential to maintain and grow the category.”

Scotland’s favourite Tennent’s Lager from Tennent Caledonian Breweries remains Scotland’s favourite beer (Hall & Partners brand tracking, 2013) and this is seen in the brand’s market performance. With the best-selling eight-pack, four-pack and pint can options in trade, the brand has a 54% share of standard lager in Scotland’s impulse channel (AC Nielsen, Scotland impulse, MAT to 30.3.13). The limited-edition ‘T in the Park’ packs and cans celebrate 20 years of Scotland’s biggest and best music festival, offering consumers the opportunity to win VIP weekend and camping tickets.


• Cash & Carry Management • May 2013

Kestrel Premium Lager, available from Brookfield Drinks, has been relaunched with a new look, lower 5% abv and a fresh positioning, which sees it dial up its Scottish craftbrewing heritage with a focus on its ‘Holy Brewing Method’ and introduce a new brand partnership with the Royal Society for the Protection of Birds. A successful brand in the ‘80s and ‘90s, Kestrel – known for its high quality, super-strength brew – was recently purchased by Nigel McNally, former managing director of Wells and Young’s. He is now returning it to its Scottish roots by brewing the premium lager in Glasgow on a site where brewing dates back to the 1500s. “Beer officianados recognise Kestrel as a high-quality brew; the proof of the pudding is that the recipe has historically been used in a well-known Belgian beer,” says McNally. From the platform of a new 5% abv 500ml can, the company will also relaunch Kestrel Pilsner at 4% abv and introduce a ‘refreshing’ 2.8% abv lager beer and a no-alcohol variant. New formats will include a stylish 330ml bottle. The award-winning 9% abv brew is also being relaunched and it will come in a unique ‘sharing can’ size. The revamped Kestrel portfolio will initially go on sale across UK independent retailers and the off-trade. McNally and Kestrel have also lent their support to the RSPB, with all new packaging designs carrying the logo.

New design Increased consumer demand has prompted the Czech brewery Budvar to offer Budvar Original in the 500ml bottle as a 10-pack, moving into the territory of some of the massproduced brands. Designed as a flat pack (rather than in traditional case form) the new unit is highly visible and lends itself particularly well to promotional activities. “The idea is that this new design is sufficiently different to help project that ‘this-issomething-special’ feeling that customers shopping in the specialist outlet expect,” says off-trade director Jon Whittle. “Our new pack offers just what’s needed – a top beer and plenty of it in a party format.” He puts the rise of the Budvar 500ml (up 60% year-onyear) down to the increasing interest in beer with food and its place in the new phenomenon of the great-night-in. The brewery’s recently introduced SKU is doing well in independent off-licences and specialist outlets like Majestic although it’s not without its attractions for multiples as it is currently selling strongly in Booths.

For further information: Brookfield Drinks (01234) 783 034 Budvar 020-7554 8815 Carib 020-8988 1100 Carlsberg (01604) 668866 Heineken 0131-5281000 Kingfisher Beer Europe (01622) 351110 Krombacher Brewery (07747) 097992 Molson Coors (01283) 511000 Tennent Caledonian Breweries 0141-552 6552


OUTSELLS HOT CAKES. Around one in three off-trade drinkers choose Tennent’s*. So keep your fridge full, the Tennent’s cold and your customers happy.

*Brand drank in last 4 weeks. Source: Hall and Partners January 2013. Please drink Tennent’s responsibly. Tennent’s and the red T are registered trademarks of C&C Group.

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