SPOTLIGHT INTERVIEW FEATURING MIKE PATTERSON
THE BUSINESS MAGAZINE FOR CASH & CARRY/DELIVERED WHOLESALERS
Iain Hill announces £100,000 investment to mark anniversary
THE SWA ISSUES RALLYING CRY Suppliers urged to back trade body and assist wholesalers
Pro-Retail heralds the start of a new era at Palmer and Harvey CATEGORY GUIDANCE
4Beers & Lagers 4Ciders 4Soft Drinks
This month don’t miss... 06
Dhamecha Cash & Carry acquires new depot site in Leicester.
Inside track: a comprehensive review of Pro-Retail 2015.
All you need to know about beers, lagers and ciders this summer.
ESSENTIALS 05 06 42
Editor’s Comment Industry News Products & Promotions
News Extra The Scottish Wholesale Association urges suppliers to back it and benefit.
In Focus Membership incentives to reach “new heights” at Confex.
Special Report Palmer and Harvey kicks off its 90th anniversary celebrations in style.
Spotlight featuring Mike Patterson, managing director of William Yule and Son.
Behind the Scenes Exclusive interview with Iain Hill.
The big interview: Iain Hill may retain his boyish good looks, but his business acumen has unearthed a wealth of lucrative opportunities.
Product of the month
Employment Law Cate Ritchie advises employers on how to handle some of the most common pay disputes.
CATEGORY INSIGHT 26 38
Soft Drinks Beers, Lagers & Ciders
Accountant turned director: Mike Patterson reveals all.
Ritz revolution! ‘Crisp & Thin’ set to ‘explode’ savoury sector.
! illa chip like Pringles Nobody makes a tort licious flavours. Available in four de r Tortilla crisps and Place them with othe big stocks, because make sure you have ll fast. theyâ€™re going to se Arriba, arriba! Price marked packs available in Nacho Cheese and Sour Cream and Onion. Visit our new trade website. Designed with you in mind.
@KelloggsTradeUK ÂŠ2015 Kellogg Company
[ EDITOR’S COMMENT ]
Driving with care inding the right calibre of staff is a priority for every company – from the chairman to the most menial employee. That’s why, unless you are headhunted, you have to go through a series of procedures before you have convinced your new bosses you meet their criteria. Compare that with the old days, when there were far fewer applicants for an advertised post, CVs weren’t even born and a letter outlining your experience followed by a single interview were sufficient. In distribution alone, businesses that are heavily reliant on transport to increase sales take the utmost pains to ensure that delivery staff have all the right credentials. Take bakery giant Warburtons, which puts potential drivers through a series of procedures – online application, interview, questionnaire and test drives – before giving them the green light. New boys also have to undergo follow-up assessments on a regular basis and then annual appraisals. It’s a rigorous programme, reflecting the importance of having the best possible people behind the wheel. There’s also a negative side to this. Potential recruits at any company could easily be put off by such an arduous process before being taken on. It could be one of the reasons why there is a shortage of people prepared to traipse
SPOTLIGHT INTERVIEW FEATURING MIKE PATTERSON
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THE SWA ISSUES RALLYING CRY Suppliers urged to back trade body and assist wholesalers
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the motorways to earn a living. According to the Freight Transport Association, there is a shortfall of 60,000 drivers throughout the UK. Now Blakemore is addressing this deficiency by making sure the drivers of its 295 vehicles, and those entering this type of employment, have the right qualifications – which would presumably also give them greater job satisfaction. The company, which boasts 10 distribution depots across the West Midlands, Yorkshire, South Wales and East Sussex areas, has been operating a Warehouse to Wheels programme since 2008, enabling staff to achieve LGV (large goods vehicle) certification, plus other types of driving licence. The wholesaler/C&C operator/retailer is also in the early stages of a driver apprenticeship scheme, which has seen several staff pursuing such a career. In charge of this initiative is group logistics director Andy Grinsell, who says: “The average age of a driver in the UK is 53, so it’s essential that we develop drivers for the future. While we always welcome external applications for driver positions, it’s important to us that we also invest in our existing workforce and develop internal capability.” As they say: where there’s a wheel, there’s a way!
Mervyn Gilbert News Editor
NEVER MISS AN ISSUE...
Address Winlove Publications Ltd PO Box 366 East Grinstead RH19 4ZE Tel (01342) 712100 Email email@example.com Publisher Winlove Publications Ltd EDITORIAL Managing Editor Kirsti Sharratt News Editor Mervyn Gilbert Deputy Editor Michael Catling ADVERTISING AND MARKETING Publishing Director Martin Lovell Media Sales Manager Clare Phillips 4,560 July 2013 – June 2014 Audit Bureau of Circulations Printed by Bishops Printers ISSN 1352-254X All media rates and feature lists can be accessed online by visiting: cashandcarrymanagement.co.uk Depot images thanks to Bestway Brighton.
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[ INDUSTRY NEWS ]
£60m from new branch? First C&C outside the London area Dhamecha Cash & Carry’s eighth branch – its first outside the Greater London area – will be a refurbished depot formerly occupied by Crown Crest, which is now largely associated with the Poundstretcher retail chain. Situated in Cobden Street, Leicester, the multimillion-pound 140,000 sq ft site will include an 80,000 sq ft C&C and extensive parking and unloading areas. It is expected to be ready for trading by Christmas. The C&C operator’s CEO Pradip Dhamecha said: “Our seven existing branches serve customers in London and the surrounding conurbations. “We had been looking for a site in the central region of the country for some time. The Leicester site will enable us to continue the expansion of our company. “We have a very well-
CEO Pradip Dhamecha (left), with managing director Manish Dhamecha (centre) and trading director Mukesh Vithlani.
established C&C business model which we will replicate at our new premises, with the prospect of bringing our strategy of great prices, excellent value and outstanding customer value to a whole new audience.” Dhamecha’s turnover in the year to March 2014 was £628 million. Talking exclusively to Cash & Carry Management about the sale of the Cobden Street site, Crown Crest finance director Hemant Patel said: “I can well see Dhamecha taking between £50 million and £60 million from the Leicester C&C, with the local Bestway branch
facing stiff competition. “The site had been on the market for about a year. It was something of a surprise when we found out that Dhamecha was the purchaser. But that makes no difference to us. “While we used to be a force in cash & carry, our business now is very much in delivered wholesaling, conducted from our new 36-acre site in Kirby Muxloe, Leics. “Our Poundstretcher business, with its head office in Huddersfield, has 410 branches.” a Dhamecha C&C 020-8903 8181
More business in France? As this issue of Cash & Carry Management went to press, rumours were still circulating that Nestlé was in the process of selling its Davigel frozen food business in France to Brakes Group. City analysts were forecasting that such a deal could be worth something between 200 million and 300 million euros. It would reinforce the foodservice specialist’s French presence, developed after many years of crossChannel trading, as well as giving it access to Belgium and Spain. Davigel, which was owned 06
by Buitoni when that company was purchased by Nestlé in 1989, is particularly strong in the ice cream sector, as well as making a wide range of frozen and chilled meals. Brakes Group, owned by Bain Capital, increased sales by 2.5% to £3.1 billion in
2014, with pre-tax profit growing by 7.1% to £150 million. UK turnover alone rose by 5.4% while e-commerce business produced sales of almost £1 billion. a Brakes Group (01233) 206000
Soft drinks promotion The Best-in own-label range from Bestway and Batleys is offering retailers an eightweek Carnival of Summer price promotion (1 May to 30 June) on its entire range of soft drinks. The deal covers natural juices, juice drinks, water, carbonates, energy & sports drinks and kids’ products, all discounted from the standard wholesale price. “Summer is a fantastic time for impulse retailers to capitalise on the thirst for great tasting, refreshing alternatives to fruit carbonates in impulse,” said Nick Brown (below), category manager for own-label at Bestway.
“Last year we launched Best-in 100% Coconut Water and the Fruit Aqua range of still and sparkling flavoured waters and both have performed exceptionally well due to their taste credentials and appealing price points of £1.25 and 59p respectively.” Fruit Aqua (in still and carbonated formats) comes in three flavours – strawberry, lemon & lime and summer fruits. During the promotion it is available on a ‘buy one get one free’ basis across the range, delivering a POR of 71.2%. The POR on Coconut Water – in 600ml PET bottles – over the two months is 36%. a Bestway Group 020-8453 1234
[ INDUSTRY NEWS ]
Cigarette thieves jailed... Three men have been imprisoned for a total of 30 years for stealing cigarettes worth thousands of pounds from retailers waiting to load their vehicles in cash & carry car parks. Another man was awaiting sentence at Birmingham Crown Court as this issue of Cash & Carry Management went to press. The C&C customers were targeted on around 20 occasions last September at depots in the Midlands area. They were finally caught after their stolen vehicle was seen at Costco’s Derby branch. They were apprehended by police after a car chase on the M42. James Bielby, chief executive of the Federation of Wholesale Distributors, which has for years been
The thieves were caught after their stolen vehicle was spotted at Costco in Derby.
helping police catch C&C criminals by passing on intelligence, said: “Since this gang was caught, we have seen a marked decrease in reported incidents in the area. “Theft from C&C customers is, fortunately, quite rare, but large quantities of cigarettes on display in car parks do tempt opportunist criminals. “Our members are investing in CCTV and security barriers and we issue posters
and leaflets advising customers to take simple precautions while loading, such as not leaving their stock or their vehicle unattended. “We encourage all C&C operators to report crime on their premises to our criminal intelligence database. This information helps to catch criminals and dissuades others from targeting C&C/wholesalers and their customers.” a FWD (01323) 724952
...and retailer falls foul of the law An independent shopkeeper in Smethwick, West Midlands, has had his tobacco display removed by Imperial Tobacco for selling illegal tobacco products. The supplier’s anti-illicit trade manager Peter Nelson said that Ari Aziz Mohammed, of UK Mini Market, had been in breach of the conditions of his agreement with Imperial. He commented: “This sends out a strong message to any retailer looking to
profit from this Smethwick and illegal activity that deprived the there will be Government of significant consemuch needed quences if they revenue.” are caught. After being “We will not prosecuted by tolerate abuse of the local trading Nelson: ‘Conditions our tobacco standards office, were breached’ units, especially Mohammed was when they are fined £500 and used or associated with the ordered to pay costs of peddling of illegal tobacco. £1,868 and a victim sur“Mr Mohammed’s actions charge of £50. a Imperial Tobacco (0117) have threatened the liveli963 6636 hood of other retailers in
Metro up to 18 in India Dusseldorf-based Metro Cash & Carry is to open its fourth branch in Bengaluru in July, giving it 18 in India. The opening will come at
around the same time as the company’s new C&C in Hyderabad starts trading. Metro plans to have 50 outlets in the sub-continent
by 2000. Booker, which also has a growing presence in India, now has seven sites in that country.
Retail appeal JJ Food Service has increased its range of impulse lines following the introduction of a selection of crisps, chocolate bars, chewing gum, cereal bars and nuts at the beginning of the year. The additions, which cover crisps, snacks and confectionery, feature in the wholesaler’s May/June promotional brochure. Among the items appearing in the leaflet are: Tyrrell’s Hand Cooked Crisps (mature Cheddar & chive, sea salt & cider vinegar, lightly salted, sea salt & black pepper and sweet chilli & red pepper), 24 x 40g; Nutella Hazelnut Spread, 1 x 3kg; Cadbury Dairy Milk, 48 x 45g; Oreo biscuits, 20 x 66g; and Eat Natural bars, 12 x 50g. Chief product officer Ali Guvemli said: “While JJ caters mainly for foodservice outlets, our competitive pricing and efficient ordering process will appeal to independent retailers too. “Prices are fully visible via our website and customers can order online for sameday collection or next-day delivery.” More than 50% of the company’s orders are placed online – a percentage that increases to 70% when customers visit a branch and place an order using a touchscreen monitor. a JJ Food Service (0843) 309 0991
[ INDUSTRY NEWS ]
Overhaul for satellite depot Secondary site gets a major upgrade Foodservice wholesaler kff (Kent Frozen Foods) is spending £750,000 on renovating its Witney, Oxon, site. When the work is completed, it will result in the depot quadrupling in size. The building was acquired five years ago as a satellite site to the main depot and headquarters at Aylesford, Kent, where there are 251 staff. kff has a turnover of more than £40 million and operates a fleet of over 60 vehicles. Frozen accounts for half of the turnover and chilled and ambient 25% each. Logistically, the improved building will enable the delivered wholesaler to add new routes outside of the present catchment area. The staff number will be boosted from six to 24.
The Witney depot will be quadrupled in size.
The capacity for frozen foods at Witney is being increased by 55%, for chilled foods by 90% and for ambient products by 80%. This means the depot will be storing the full range instead of shunting in certain lines from the main depot, which is itself being improved over the next 18 months. Managing director of the Caterforce member Chris Beckley said: “The Witney expansion is a sign of things to come as we look to expand further north.
“As well as achieving excellent energy and resource savings, the expansion has allowed us to greatly improve our service levels to customers along the M4 corridor.” kff’s top customer sectors are education, pubs, retail (including bakery), cafes, coffee shops and sandwich shops. The wholesaler’s Purple Pineapple own-brand has 70 lines while its ‘Excellence’ range numbers 900 items. a kff (0500) 829798
Retailer training scheme SPAR northern wholesaler James Hall & Co has launched TAP (Training Academy Programme) for retailers and their staff. The initiative covers a range of topics, including customer service inductions, managing employees, performance, training, fruit & veg, ‘conversational selling’ and the five ‘SPARkling Service’ e-learning modules.
Accredited modules are also included, such as food safety, responsible alcohol retailing, health & safety, manual handling, fire awareness and managing theft and violence. “The launch of TAP is yet another great reason for retailers in the north to join
SPAR and James Hall & Co,” said sales & marketing director Peter Dodding. “We are proud to be offering retailers something totally bespoke that will hugely benefit their business – all at minimal cost.” Over 200 retailers have already signed up to the scheme. a James Hall & Co (01772) 706666
Contender for northern award Birchall Foodservice, of Burnley, Lancs, which is in its 75th year, has been shortlisted for Family Business United’s north family business 08
of the year title. Managing director Justin Birchall said: “We hope all our customers, suppliers, employees and everyone in
the area will vote for us online. Winning would mean such a lot to us.” a Birchall Foodservice (01282) 429446
Coffee link-up JJ Food Service linked with Lavazza Coffee to offer caterers coffee-related lines via social media ahead of National Coffee Week (4-11 May). One winner received an Espria A Modo Mio machine with a starter pack of capsules and a month’s supply of Qualita Rossa roast and ground coffee (250g). For two runners-up there were PoS packs, which included Lavazza plastic table talkers, menus, loyalty cards, stamps and window stickers. The competition was open to all caterers, coffee shops, restaurants, pubs and hotels who serve, or would like to start serving, Lavazza coffee. JJ Food Service general manager Terry Larkin said: “The out-of-home coffee market is valued at £7.2 billion and is expected to grow to £16.5 billion across 27,000 outlets by 2020.” a JJ Food Service (0843) 309 0991
Irish target Direct Seafoods, part of Bidvest Group, is to relaunch in Ireland following last year’s purchase of Dublinbased MacKenna Fish Sales. Stephen Oswald, chief executive officer of the fish supplier’s parent Bidvest Fresh, said: “We tried to enter the Irish market about six years ago but couldn’t generate enough energy without a solid Irish presence.” The plan is to expand Direct Seafoods both organically and through further acquisitions. a Bidvest UK 020-7493 4733
[ INDUSTRY NEWS ]
Record takings for Fairway Gluten-free Fairway Foodservice’s recent bi-annual ‘Meet the Member’ event, held at Villa Park, Birmingham, over two days, resulted in deals valued at a record £832,000 – £105,000 more than the previous high last year. Now the 17-member wholesale group, with combined turnover of £556 million, is aiming for even bigger returns at its next gettogether, taking place on 8-9 September. That would mean the total from the two events this year eclipsing the £1.3 million received in 2014. Not only were takings well up at the Midlands show, but also 11 new grocery listings were secured and 15 frozen products
Steve Jeavons: ‘Valuable for members and suppliers.’
added to Fairway’s ownlabel range, now numbering almost 600 lines. Commenting on the figures, the group’s purchasing director Steve Jeavons said: ”The £832,000 worth of
concluded deals illustrates how valuable our Meet the Member events are to both members and suppliers. “We’re planning on making our next event bigger and better than ever before. This will include more space and time for suppliers on the second day.” Mars Food UK national account manager Emma Betts, who was present at the ‘Meet the Member’ show, said: “Attending these events is invaluable. They provide the perfect opportunity to see the Fairway Foodservice members, discuss priorities and plan for the months ahead.” a Fairway Foodservice (01422) 319100
Nationwide equipment deal Brakes Group has signed a nationwide contract with Windsor Materials Handling for the maintenance of equipment at its 80-plus sites in the UK, including the foodservice chain and depots that operate under the M&J Seafood, Pauleys, Brakes Logistics and Brakes Catering Equipment names. The deal – which appears to be a renewal, although Brakes would not confirm this when asked by Cash & Carry Management – covers more than 300 units of warehouse equipment, including forklift trucks and stock pickers. Windsor director Jason Reynolds said: “We’ve worked hard at a number of Brakes sites to develop a good understanding of the operation. It is testament to our growing capabilities that Brakes have shown faith in us.”
Bidvest 3663 has launched a ‘Delectable Desserts’ frozen range as part of its Taste of Summer microsite. Varieties include US-style key lime pie, pecan pie and Mississippi mud cake, as well as trio-berry amore, a gluten-free product in line with the wholesaler’s decision to promote more nongluten foods. It has produced a 56-page Gluten Free Made Simple guide and increased its number of lines in this category to around 330. A specialist strategy team has been set up, covering marketing, NPD and quality assurance. Among the 44 new gluten-free products are pizza bases, chocolate brownies, sliced bread and and ham & cheese panini. a Bidvest 3663 (0370) 3663 000
Premier hits 3,000
Ian Hunt, the foodservice specialist’s group engineering manager, commented: “We have a mixed fleet in multi-temperature environments, so it can be demanding on equipment. “We need a partner that can be relied upon and sees the importance of keeping us working 24/7. Happily, Windsor Materials Handling has developed a comprehensive service, and we are confident in its abilities to help us improve our operations in
the future.” WMH operates from 11 UK sites, offering materials handling and access equipment for sale, hire and maintenance. Established in 1977, it claims to be the country’s leading independent supplier of Komatsu and Doosan forklifts, Atlet warehousing and JLG access equipment. a Brakes Group (01233) 206000 a Windsor Materials Handling (01482) 329996
Booker’s Premier retail club has reached the 3,000 mark with the opening of Wensleydale Convenience Store in Blythe, Northumberland. It was officially unveiled by owner Peter Saleem and director of Premier Martin Swadling. The retail group has also opened its first branch in Northern Ireland – an 870 sq ft outlet formerly trading as Vivo in Newtownards. Three stores have joined the Booker Family Shopper chain, bringing the total to 31. They are in Newcastle, Leeds and Nottingham. a Booker Group (01933) 371000
[ INDUSTRY NEWS ]
Channel Islands purchase Bidvest Foodservice International, trading in the UK as Bidvest 3663, has spread its net to the Channel Islands with the purchase of Cimandis, with depots in St Saviour, Jersey, St Peter Port, Guernsey, and Alderney. The Channel Islands operator’s former owner is SandpiperCI, the largest retailer and private employer in the island group. As reported in Cash & Carry Management, Cimandis will next month end its 21year membership of Country Range Group. The wholesaler stocks a range of 4,500 products, including fresh meat and fish, fruit & veg, bakery, chilled & frozen foods, soft drinks and dry goods. Its 1,000 customers cover
the retail, hospitality and service sectors. Andrew Selley, Bidvest 3663 chief executive, said: “Over the past couple of years, the Cimandis management team (headed by managing director Dave Chalk and commercial director Dave Truscott) have developed a thriving and profitable foodservice business within the Channel Islands. “In line with our decentralised model, Bidvest will continue operating Cimandis as an autonomous and independent business. “We believe this partnership opens up new opportunities for both of us.
“It allows Bidvest to further extend its footprint in Jersey, Guernsey and Alderney, while the Cimandis team and customers will benefit from the financial and strategic support of the wider Bidvest group.” At present, there are no plans to change the Cimandis liveries and brands. In addition to operations in the UK, home country South Africa, and now in the Channel Islands, Bidvest has foodservice businesses in Belgium, the Netherlands, Czech Republic, Baltic States, Saudi Arabia, Turkey, UAE, Australia, New Zealand, China, Singapore, Hong Kong, Chile and Brazil. a Bidvest 3663 (0370) 3663 000
Caterers benefit from price freeze Bestway Batleys Foodservice is holding the prices of more than 300 catering skus until July through its Price Hold Guarantee scheme. The initiative, which was revamped in January, has two versions – one for restaurants, hotels & pubs and the other for cafés & fastfood outlets. The deals relate to brands and Essentially Catering ownlabel products, covering fresh meat, chilled and frozen, ambient and non-food. Rachel Hartwell, category manager, said: “Foodservice is constantly evolving and at BBF it is all about meeting and beating our customers’ expectations. “In addition to own-label, we have worked hard with supplier partners such as Premier, Unilever, Heinz and Procter & Gamble to ensure 10
Rachel Hartwell: ‘We’ve worked hard with supplier partners.’
that the Price Hold Guarantee range meets the needs of our customers. We benchmark prices against other operators.” The latest promotion also offers customers a free case of burgers when they spend £100 in the depot. In addition, there is the chance to win a barbecue with olive oil producer Filippo Berio.
Hartwell pointed out: “Caterers have previously had an unenviable task of having to deal with a whole range of different suppliers. BBF is one of only a few wholesalers who can offer a complete range solution from fresh and frozen to ambient and licensed.” a Booker Batleys Foodservice (01738) 646666
Marwaha and Gallacher
Expansion for Premier member Former Booker retail development controller in Scotland Chris Gallacher is helping a leading independent chain north of the border continue its ambitious growth programme. Six months ago, Gallacher became retail operations manager for Dynamic Retail, a Glasgow company whose managing director is Shaun Marwaha, with his parents Jack and Rita also part of the management team. The business, which has eight Scotfresh stores and plans for 15 within 12 months, is affiliated to Booker’s Premier chain and is claimed to be its largest member. a Dynamic Retail 0141-959 3831
Group rise Sales through Landmark Wholesale members in March increased by 4.8% compared with the previous corresponding month, with cigarettes alone moving up by 5.6%. Total sales in the year to the end of March rose by 8.9%. a Landmark Wholesale (01908) 255300
[ NEWS EXTRA ] SWA soundbites Stuart Harrison, senior grocery buyer, JW Filshill: “We use the SWA’s two annual events, the Achievers awards dinner and the Conference, to catch up with suppliers and other wholesalers. Scotland is very different to the rest of the UK. Wholesalers here have the unique ability to kick lumps out of each other nine to five, then enjoy a drink together in the evening. Suppliers should utilise the platform that the SWA has created, not only to understand Scotland better, but also as a springboard to success.” Graeme Clark, managing director, Scot-Serve: “The SWA is very committed to ensuring that the industry in Scotland prospers, but you only get out of it what you put in. If you operate within the wholesale sector in Scotland, you must be a member.” Ross Brown, business manager – foodservice, Premier Foods: “The SWA Conference provides a fantastic opportunity to network with key players in the Scottish marketplace in a non-contentious environment. Achievers opens doors too, and enables suppliers to be instrumental in helping to raise the bar in terms of industry standards.” Jonathan Kemp, commercial director, AG Barr: “The SWA has consistently delivered against the manifesto it has put forward. We were one of the worst suppliers to Scottish wholesalers 10 years ago. What has helped turn that around is the SWA – it has given us better understanding of the industry. The SWA is a voice for the trade and that is increasingly important.”
SWA calls on suppliers to back it and benefit networking event, hosted by the Scottish Wholesale Association last month, highlighted to over 30 suppliers how the trade body can assist them in dealing with Scotland’s wholesalers. Held at Hampden Park in Glasgow, the ‘Wholesale Matters’ meeting enabled the SWA to explain its role and objectives to companies that are not currently members. It also provided a platform for the suppliers to meet SWA Council officers and other key wholesalers. SWA executive director Kate Salmon said: “We are fortunate that the SWA already enjoys incredible support from a large number of leading suppliers. However, there are many more who do not yet fully understand what we do, or appreciate the unique access to Scotland’s wholesalers that supplier membership can provide. “Our supplier members are invaluable to the success of the Association and it has always been our belief that strong links between wholesalers and suppliers are vital to the continued growth and future prosperity of our dynamic and challenging marketplace.” Asim Sarwar, SWA president and managing director of United Wholesale (Scotland), told the audience: “Our role is to provide an effective communications channel for our members, both wholesalers and suppliers. We can set up introductions, offer unique networking opportunities and help you understand the challenges wholesalers are facing in the Scottish market – challenges that may be very different from those south of the Border.”
Julie Dunn, operations director, Dunns Food & Drinks: “For any business, the greatest strength, frequently the greatest weakness, and always the greatest opportunity is the people. The SWA offers excellent industry-specific training.”
Ross Brown: ‘Publicity in Cash & Carry Management is one of the advantages.’
The SWA’s lobbying role was also flagged up as being of critical importance to wholesalers and suppliers. Margaret Smith, director of Caledonia Public Affairs, which was recently engaged by the Association, said: “My objective is to build effective partnerships with politicians so that when decision-makers are making policies that affect this important sector, they have a better evidence base and understanding from which to work.” She added: “Sometimes it will be right to involve key partners, like suppliers, in the representations we make.” A series of speakers at the networking event outlined the full scope of the SWA’s work. These included Eddie Lynagh, SWA senior vice-president and area manager at Booker Greenock, who urged suppliers: “Come and talk to us – not about delivery times or price, but about strategy and where you want to take your brand. We can point you in the CCM right direction.”
Influential voices: speakers at the SWA networking event.
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[ IN FOCUS ]
Leading from the front Confex returned to the Cotswolds Water Park in Cirencester last month to host its annual trade show. But while the location remained the same, the event revealed an abundance of changes for the group over the last 12 months. Michael Catling reports.
or a man who recently underwent back surgery, Tom Gittins possesses all the hallmarks of a doctor’s worst nightmare. Dashing in and out of the adjoining rooms at the Four Pillars Hotel & Conference Centre in South Cerney, the expression ‘blink and you’ll miss him’ has perhaps never been more appropriate. As one member quipped, a step counter would certainly make interesting reading. When he is not busy scuttling about like an overworked gas meter reader, Confex’s business development manager is juggling phone calls and issuing instructions to ensure that everything is running smoothly. With more than 300 members to cater for, he is a man in demand.
But while many would buckle under the strain, Gittins (right) goes about his day job with a poise that epitomises the easygoing work ethic at the independently-owned trading group. From the courteous traits of logistics & distribution director James Loffet to the benevolent attitude of senior business development manager David Lunt, such chivalry is a welcome reminder of how business should be conducted. Humility does have its drawbacks, however, and Confex could learn from some of its closest counterparts, who are only too happy to boast about revenue growth or latest acquisitions. Although Loffet beamed with pride as he addressed 200 guests at the group’s awards dinner and announced that “turnover grew by 18% and sales
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through central distribution rose to £20 million in 2014”, it seemed a shame that such impressive achievements were confined to a three-minute speech. Perhaps that is what separates Confex from its nearest competitors, with actions taking
Confex Awards 2015 Green Wholesaler of the Year: Refreshment Systems, Bradford Retail Supplier of the Year: Coca-Cola Enterprises Foodservice Supplier of the Year: Heinz
[ IN FOCUS ] A supplier’s view
A member’s view
“Confex was very supportive throughout the whole process and the trade show was invaluable in engaging with existing customers to discuss performance, promotions and the year ahead. We were also able to source new business and managed to open a further three accounts on the day. My suggestion is simple: if you are a supplier, you should be at this show.” Tom Hinchliffe, national account executive at Taylors of Harrogate
“The trade show was extremely beneficial as the supplier turnout was excellent and it gave us the opportunity to meet, greet and network with new and existing suppliers. Confex did a first-class job in organising and facilitating the day and we took full advantage of the deals on offer, placing many orders. We will certainly be attending the event again in the future.” Lee Edgar, commercial director at Midland Chilled Foods
precedence over clamouring for positive publicity. Loffet revealed that Confex’s membership has grown by 24 over the last 12 months, with member incentives set to reach “new heights this year” when the group hosts its first conference abroad in Vilamoura, Portugal. It should also be noted that the sixth edition of Confex’s annual trade show drew a record number of members, with any murmurs of discontent
confined to exhibitors being unable to bask in the sunshine outside. In truth, there was little to find fault. Several members lauded the attentiveness of the Confex staff, while Lucozade Ribena Suntory reported more than £250,000 worth of orders taken on the day. With trade shows, it is notoriously difficult to please everyone. So while Confex may not win any awards for its self-publicity, it can certainly revel in CCM organising a successful event.
Giving back to the community After last year’s Pro-Retail event descended into a ‘smokes and mirrors’ campaign, Michael Catling travelled to the Telford International Centre in Shropshire to find out whether Palmer and Harvey has turned a corner. or a company that has received its fair share of negative headlines in recent months, ProRetail 2015 delivered an opportunity to right the wrongs of 2014, as Palmer & Harvey managing director Martyn Ward proclaimed that the 33rd edition of the UK’s largest retail show was “bigger and better than those before”. This was, after all, the first time Ward had addressed the media collectively since batting away a series of probing questions into the supply chain issues that overshadowed Costcutter’s migration from Nisa to P&H. But while last year’s show was typified by the unease at which P&H representatives dealt with the issue, any awkwardness was replaced by an uplifting sense of joviality 12 months on, as Ward sought to rival awards host Jack Dee with the number of jokes he could fit into his speech. For comedic value, the two lie poles apart, but Ward’s lighthearted address helped to relieve any lasting tension. He
later admitted that “the group has worked hard to remedy and rectify the early issues“ which plagued its partnership with Costcutter. For now, though, the focus is on celebrating P&H’s 90th anniversary in July and repairing any damaged relations.
‘Our focus is very much on independent retailers and supporting their every need’ Martyn Ward, P&H managing director To that end, the delivered wholesaler has pledged a commitment to providing independent retail stores with the ‘best service and access to great products at competitive prices’. As part of its mantra to ‘give back to the community’, Ward has announced a new Retailer of the Month initiative, to
help propel lesser-known stores into the limelight. A new monthly merchandising guide has also been launched to encourage best practice, while a ‘How to’ social media guide has been specifically tailored for retailers to help boost their online presence. Ward commented: “Our focus is very much on independent retailers and supporting their every need. The grocery market is very challenging, and as an industry we have a habit of making the simplest things really complicated. “We want to help demystify everything and show that it can be incredibly easy to stock the right products and promote them in the right way.” With stands devoted to promoting its Retail Club, Plus Extra and Independent own-brand, P&H’s presence dwarfed the majority, if not all, of the near-150 suppliers exhibiting at the two-day event in Telford. From day-part merchandising demos to £1 promotional zones, dedicated
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[ SPECIAL REPORT ] Phone app to help safeguard retailers Discovery Risk Solutions (DRS), a wholly-owned subsidiary of P&H, has developed a free risk management app for independent and franchised retailers who have been the victims of theft, burglary and fraud. The app, which is available for Apple and Android platforms, enables owners to build a real-time incident map of their local area by logging incidents via a shared noticeboard system. Users can also access immediate advice and support services, including contact details for local locksmiths and repairman, to help minimise environmental, legal and health & safety implications. Derek Bruder, director at DRS, said: “We want to give our users the ability to get the right multi-discipline support, whenever and wherever they need it.”
‘Overwhelming’ donations delight Telford Food Bank The Telford Food Bank has lauded the generosity of P&H, after the group donated 12 tonnes of nonperishable supplies to the charitable organisation at Pro-Retail. The donation, which represents the single biggest in the project’s history, included food, drinks, toiletries and cleaning products. Christine Jones, of Telford Food Bank, said: “Due to the generosity of Palmer and Harvey and its suppliers, the donations will not only feed those in crisis, but will also help keep the shelves of the Telford Food Bank stocked.”
Around 6,000 visitors attended Pro-Retail, which featured guest appearances from three times Le Mans champion Allan McNish (in overalls) and ex-Tottenham Hotspur and England international Gary Mabbutt (in the cockpit).
advice across several categories and channels was available to an estimated 6,000 visitors. It was the group’s social media hub, however, that seemed to resonate most amongst its customer base, as P&H experts demonstrated the benefits of increasing basket spend, improving market intelligence and engaging with local communities. “We recognise that we have got to start getting the community of retailers to realise the power and value of social media,” said Ward. “We
want to help people take their first steps into social media and to provide support to more advanced users.” For now, P&H looks well equipped to deal with the latest market changes and appears to be revelling in the success of its own-brand range, which Ward claims is performing “exceptionally well”. Provided it can re-establish the relationships that were fractured following the supply shortages at Costcutter stores, P&H should see its 90th anniversary celebrations continue into 2016 and CCM beyond.
Pro-Retail Awards 2015 – roll of honour Retailer of the Year: Stuart Mackie (pictured above with Martyn Ward, left, and Jack Dee, right) of Buchandyke Filling Station, East Kilbride Community Retailer of the Year: Adrian and Thea Dunn of Bromham Stores, Bromham, Wiltshire Impulse Supplier of the Year: Lucozade Ribena Suntory Grocery & Non Food Supplier of the Year: Burton’s Biscuit Company Alcohol Supplier of the Year: E&J Gallo Winery Chilled, Fresh & Frozen Supplier of the Year: General Mills Independent Own Brand Supplier of the Year: Jupiter Plus Extra Supplier of the Year: Snow Shock Product of the Year: Nutella and Go (Ferrero) Service Level Excellence: Republic Technologies Palmer and Harvey Overall Supplier of the Year: Burton’s Biscuit Company
Ju ne ue
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[ SPOTLIGHT ]
Mike Patterson, managing director of William Yule and Son getting things wrong once – mistakes will happen – but when it keeps happening, it drives me mad. If you were able to retire tomorrow, would you? As many of my contemporaries have opted to retire, it’s a subject that’s cropped up a lot recently. My son is involved at William Yule now so I may be able to take a back seat there. Things are moving in the right direction at the other companies I’m involved with too. With any luck, I may be able to retire within the next couple of years. What advice would you give someone starting his/her first job? Give it your best shot and don’t sell yourself short. You’re only here once!
Mandela v Maxwell What has been the major milestone or turning point of your career? Robert Maxwell falling off his yacht in 1991 just as I’d agreed to become managing director of William Yule. I was a director of a Maxwell subsidiary at the time and all of a sudden I found myself in a maelstrom of epic proportions as Maxwell’s plundering of the group’s pension schemes and businesses was uncovered. It culminated in me and three colleagues buying the Maxwell company exactly one week after I took up the post at William Yule. And pretty much ever since then, I’ve divided my time between two businesses. How do you maintain a work/life balance and how have developments in technology affected this? I’ve had great teams around me throughout my working life, so it’s been relatively easy. My wife and I travel a lot (he is pictured above in Myanmar) but technology has made it possible for me to keep in contact with the businesses wherever we are. I once negotiated the sale of a company by satellite phone from the African bush. 20
Who has been the biggest inspiration to you? Nelson Mandela. To have remained an optimist and come through what he suffered during 27 years of incarceration without any bitterness is truly inspirational. Every time I face a challenge, I remember Mandela’s words: “It always seems impossible until it’s done.” What a great way to approach life. What most frustrates you in business and in life generally? Repeat offenders. I don’t mind people
What type of business would you go into if it wasn’t C&C/wholesale? I’m involved with businesses in a number of other sectors: search services for the legal profession, postal businesses and document managing to name but three. There’s a temptation to believe the grass is always greener…every business has its challenges and rewards. If you had a million pounds to invest, how would you spend the money? As William Yule currently operates from a 300-year-old building, I would invest in new premises which would allow us to take advantage of modern warehousing systems. My one big regret is that I CCM didn’t make the move years ago.
Director with legal and foodservice interests After qualifying as a chartered accountant, Mike Patterson spent several years working in South Africa before returning to Edinburgh in 1984. He joined Millar & Bryce (M&B), then the leading search provider to the Scottish legal profession, becoming finance director in 1986. Following the collapse of the Maxwell empire, Patterson led a management buyout
of M&B in 1992. At the same time he took over as managing director of family foodservice wholesaler William Yule and Son Ltd, a position he still holds today. He is also deputy group managing director of First Scottish Group, which provides a range of services to the legal profession. Patterson sold M&B in 2003 but remained as finance director for the next six years.
2015 ANNUAL CONFERENCE • 12-14 JUNE • CRIEFF HYDRO, CRIEFF, PERTHSHIRE The Scottish Wholesale Association invites you to attend its annual conference at Crieff Hydro.
PROGRAMME OF EVENTS
• Charles Wilson, CEO, Booker • Marc Crothall, CEO, Scottish Tourism Alliance • Jason Belmont, Sales Director, PepsiCo • Jason Milloy, Business Team Director, • • •
Nestlé 1st Choice Sam Wilcox, Chairman, Landmark, and Group Wholesale MD, Blakemore Wholesale Coral Rose, MD, Country Range Group Martin Inkster, MD, and James Barge, Director of UK Corporate Affairs, Philip Morris International
• Lord Karan Bilimoria CBE, DL, Independent
Crossbench Peer in the House of Lords and Founding Chairman, UK India Business Council
Prices for attending the conference have been held at the 2014 rate.
Friday 12 10.15am 11.00am 12.40pm 2.00pm 7.30pm
June AGM (members only) Business session Lunch Business session ‘Bollywood’ themed reception & dinner
Saturday 13 June 9.00am Business session Afternoon Leisure activities 6.30pm Formal banquet followed by champagne breakfast Sunday 14 June Morning Breakfast and depart
For details contact executive director Kate Salmon firstname.lastname@example.org • tel: 0131 556 8753 • www.scottishwholesale.co.uk
[ BEHIND THE SCENES ]
‘Stock car’ success story From an inauspicious start 25 years ago, Iain Hill Ltd has grown to be one of Scotland’s largest wholesalers. Kirsti Sharratt finds out what’s next for this award-winning business. enfrewshire-based delivered wholesaler Iain Hill Ltd is celebrating its 25th anniversary this year with a raft of initiatives designed to lift its turnover from £8 million to £10 million within the next 12 months. Until it moved to its present 50,000 sq ft depot in Linwood two years ago, the company did not have room to expand. Managing director Iain Hill (below) explains: “Our former depot at Glengarnock was just 12,000 sq ft, and we could buy in only as much as we could sell straight away.” The relocation has given Iain Hill fresh impetus. It currently delivers to a 600-strong customer base of convenience stores, newsagents, cafes and other food outlets in an area centred on Glasgow but reaching northwards to Dunblane and southwards to Ayr. The aim now is to increase its penetration in east and central Scotland. Boosting the spend from existing customers is equally important.
The company is investing £100,000 to raise its profile to new heights. In February, it introduced online ordering using Sanderson software, and the value of orders placed by this method (as opposed to telesales) has risen by an average of 30%.
‘My staff know that, in the past, I have done all the jobs. I like to think I have set high standards’ Iain Hill, managing director Hill says: “Suddenly, there is visibility of all the products we offer, whereas previously we were limited by what we could tell our customers in just a few minutes on the phone. By the end of year one, we expect that 20% of customer orders will be made online.” Customers will also be able to take
advantage of a click & collect service, which is being launched in the summer in conjunction with the opening of a 1,500 sq ft showroom. This will feature key products and highlight recommended displays of the Retail Club promotion and Quidz In initiative that Iain Hill promotes through its membership of Sugro. To enhance its exposure further, the wholesaler will produce a glossy corporate brochure and use social media to communicate all new developments, in particular product listings. A competition for suppliers to design the best side of a truck will be promoted on Facebook, and the design that gets the most hits will be reproduced on the company’s fleet of five 18-tonne lorries. Other anniversary plans include events in the summer to thank staff and suppliers for their contribution to the business over the past 25 years. Looking back, Hill admits the beginning was inauspicious. After graduating from the University of Glasgow with a
[ BEHIND THE SCENES ]
Iain Hill now has five 18-tonne trucks and a 50,000 sq ft depot to service its customers; at the start there was just a Ford Escort!
degree in geography, he knew he wanted to have his own business, but he didn’t know what. “I attended a couple of trade fairs in London and walked round every stand asking if they wanted a sales agent in Scotland. Highlander Crisps said I could buy crisps from them and cited Cunninghams [a now defunct wholesaler] as an example of how I could operate. However, when I spoke to retailers they only wanted Golden Wonder or Tudor Crisps. I went into Makro Glasgow and by coincidence there was a one-day special on Golden Wonder.” Hill drove back and forth three or four times in the one day, cramming his yellow Ford Escort with boxes of crisps and selling them on to retailers. “That’s how I started,” he recalls, “but then I panicked because I needed to supply the retailers with stock the following week. I had to shop around all the cash & carries. Fortunately, there always seemed to be someone offering a deal.” At that time, Hill was still living with his parents in Kilbarchan, Renfrewshire, and using their garage as a stock room. After his Ford Escort was stolen – “thankfully not with the stock in the car; that would have been more valuable than the car itself“ – he bought a bright orange bargain of a van. With the ability to handle more stock came increased sales and, in 1992, he rented a store in Johnstone. Three years later, he moved to farm buildings in Howwood and took on his first fulltime member of staff, Robert Millar, who as general manager remains Hill’s righthand man today.
The company stepped up a gear in 2002 with its relocation to a “real warehouse on an industrial estate” in Glengarnock and again in 2013 with its final move to Linwood. Today, Iain Hill provides employment for 20 people. As the business grew, Hill directed his energy to finding the right people to work with him. “In this industry, we’re dealing with people. We’re selling exactly the same products as everybody else, generally at the same prices as everybody else, so it’s the people who make the difference,” he says.
“All of my employees get on well and many have been here for years. I treat everybody as part of the team. If someone needs help with a job, we all muck in.” This team spirit was recognised in February when Iain Hill Ltd won the ‘Great Place to Work’ accolade in the 2015 Scottish Wholesale Achievers awards. The company’s business development manager Fiona Seggie also celebrated being crowned ‘Employee of the Year’. Hill values his relationships with suppliers as well, particularly those who have worked with him from the start. Nowadays, he has suppliers knocking
on his door, but for a long time it was the other way round. “After a couple of years of buying my stock from cash & carries, I started dealing with Walkers van sales – or Smiths as it was known then,” says Hill. “I really appreciated that they were prepared to take a chance on a start-up and let me open an account with them. Their risk paid off – we did over £1 million worth of business with Walkers last year. We have come a long way since those early days when we used to reverse our vans back-to-back to transfer the stock.” Hill added confectionery and soft drinks to the crisps he offered customers, and those three categories still make up his core range today. However, the exact product listing continually changes. “New product development is very important to us – it drives category growth – and we always try to find some niche products that perhaps the bigger cash & carries don’t have,” he notes. “We like helping smaller companies, having been there once ourselves.” Hill’s roots and conscientious attitude are undoubtedly plus points with customers and staff alike. “We operate five days a week, from 7am to 6pm, and I am usually first in and last out,” he says without a trace of self-importance. “My staff know that, in the past, I have done all the jobs, both behind the scenes in the warehouse and dealing directly with customers. I like to think I have set high standards. Our customers CCM deserve the best.” This article appears in the Scottish Wholesale Association’s yearbook.
[ EMPLOYMENT LAW ]
Handle tricky pay situations and avoid costly court cases Meet the HR expert Cate Ritchie, 121 HR Solutions Cate Ritchie is a fellow of the Chartered Institute of Personnel and Development
ay is one of the most sensitive issues that employers need to deal with. When there are disputes over issues such as calculating a bonus, reclaiming an overpayment or something similar, the situation can easily become very tense. Below, we round up some recent cases relating to pay, along with advice about how to handle the resulting issues.
Paying the National Minimum Wage It is widely understood that employees must be paid an amount that is not less than the National Minimum Wage (NMW). However, it is also understood that when employees receive a pay slip each week or month, there is a gross amount and a net amount – with the net amount being that which they actually receive after deductions have been made. So the question is, does the employee have to be paid the NMW before or after those deductions? In the case of Commissioners for Revenue and Customs v Lorne Stewart plc, an employee went on a training course and signed an agreement that she would repay part of the cost of the training course if she left the organisation within two years of undertaking the training. She did resign before two years had elapsed. In accordance with the agreement, the employer deducted the cost of the training course from her final salary payment. Although her gross pay for her final salary payment was more than the NMW, her net pay after this deduction had been made was less than the NMW. She reported this to HM Revenue & Customs (HMRC), which then took legal action against the employer. 24
The employer was not in the wrong. It was entitled to make the deduction, in accordance with the agreement with the employee. What deductions can be made before ensuring that the NMW has been paid? As long as the gross pay is more than the NMW, the following deductions can be made, even if this means that the net amount is less than the NMW. PAYE and National Insurance. Repayment of a loan or advance of wages. Repayment of an accidental overpayment by an employer in a previous month/week. Subscriptions (for example, to a charity) or deductions that the employee has agreed to (for instance, to a pension scheme). Any contractual deductions (for example, an agreement to repay the cost of a training course – as in the case reported here).
• • • • •
Paying notice as a lump sum When an employee is leaving an organisation, whether they have resigned or they have had their employment terminated, it can sometimes be useful to ask them not to work their notice. This is typically when it would be disruptive for them to remain at work. It is possible to pay the employee in lieu of notice.
If you do choose to take the approach of paying in lieu of notice, you then need to determine the leaving date. Is it the date that the payment is made, or is it the date that the employment would have ended if the notice had been worked? In Rabess v London Fire and Emergency Planning Authority, an employee was dismissed by the employer on 24 August 2012. The individual was entitled to six weeks’ notice, which meant that the employment would end on 5 October 2012. The Authority decided to pay the employee in lieu of notice. It then argued that the employment ended on 24 August 2012, but Rabess said it should end on 5 October 2012. It was ruled that his employment actually ended on 24 August 2012 as notice had been paid in lieu. To avoid this sort of confusion, always ensure that agreements are confirmed in writing, and that both you and the employee sign a copy of the agreement confirming the termination date. Dealing with overpayments Unfortunately, there are times when employees do not receive the correct payment. This could be due to a clerical error, a miscalculation or a misunderstanding in the communication between the line manager and the payroll department. So what can be done to resolve the situation? In the case of Ridge v HM Land Registry, it was ruled that deductions can be made from future salary payments, but the reasons for them should be itemised on the pay statement. CCM
121 HR Solutions provides employers of all sizes with professional, cost-effective human resource support. If you need further guidance about tricky pay issues or any other HR matter, please contact Cate at email@example.com or phone (0792) 121 3890.
Trade enquiries welcome
and many other leading wholesalers.
[ SOFT DRINKS ]
The battle of the beverages Cast your mind back a decade ago and the soft drinks market was anything but dynamic. Carbonates were seen as the dominant force, low-calorie propositions were a misunderstood entity and bottled water gathered dust on shelves. Healthy living and foreign influences have since redefined what is considered trendy, paving the way for a new era of exotic and vitality-boosting products. Michael Catling reports. ince calls were made for a 20% health tax to be imposed on fizzy drinks last year, the anti-sugar movement has attempted to demonise sections of the soft drinks category, with new buying habits necessitating fixture re-evaluations from wholesalers and retailers alike. Over a quarter of consumers now check food and drink labels for sugar content more often than they did 12 months ago, a study by Mintel has revealed, with many opting for healthier alternatives, such as juice drinks, squashes and bottled water, over carbonated and cola products. As a consequence, new sub-categories and brands have emerged, leaving many wholesalers and cash & carries questioning whether they are over or under stocking across several segments. “It is difficult trying to keep up to date with latest market trends and to make sure we are devoting enough space to certain categories,” admits Fida Hussain (left), general manager at Bestway Brighton. “We are continuously analysing market data and speaking to our suppliers and head office to increase our stockholding accordingly. There is a science behind it and there is a lot of hard work involved as well. But if you are not slightly ahead of the curve, you will struggle. “There are so many products to choose from now, and
Top five soft drink segments in grocery and convenience
All data unless otherwise stated: Nielsen
Value sales (£m)
1,600 1,400 1,200 £968m
Glucose Juice Drinks Stimulants
more suppliers are adding zero and low-sugar products to their portfolios because market conditions are necessitating it.” Since 2012, Britvic Soft Drinks has removed over 18 billion calories from the UK soft drinks category, and recently axed Robinsons’ full sugar squash lines as part of the brand’s relaunch in January. To encourage families to live an active lifestyle, Britvic recently released two TV commercials to reinforce Robinsons’ ‘play thirsty’ ethos. Publicised across all satellite and terrestrial channels until the middle of June, the TV creative features as part of a wider multi-million-pound marketing campaign for Robinsons, to help encourage the public to drink more water.
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[ SOFT DRINKS ] As part of its new health commitment, Britvic has introduced a new premium sleeve label and bottle shape design for Lipton Ice Tea, with each variant also containing a 30% reduction in sugar. This follows the launch of a new Raspberry variant, which ranks as the brand’s third most popular flavour globally. Joining existing Peach, Lemon and Mango SKUs, the new 500ml PET bottle has an rsp of £1.13 and aims to capitalise on sales of iced tea and coffee rising by 30.7% year on year. The product is also price-marked at 99p, exclusively for the wholesale channel. Meanwhile, Vimto has announced the launch of a new multi-media campaign, entitled ‘Seriously Mixed Up Fruit’, to help promote its No Added Sugar (NAS) range.
Soft drinks show resilience The Britvic Soft Drinks Review, released last month, revealed that off-trade soft drink sales increased by 0.4% to £7.6 billion in 2014, with the grocery and convenience channel accounting for almost two-thirds of the total category value (£11.8 million). Despite the increased focus on the wider health agenda, marketing and legislation, the convenience sector experienced 2.8% growth last year, indicating that consumers are continuing to purchase soft drinks as part of top-up shops or on-the-go consumption occasions. Total impulse soft drink revenue also grew by a replicable figure, with can, 500ml/600ml PET and carton formats experiencing a 5.9% rise in overall value sales. Although 2014 was the first year that cola saw a marginal decline in its market-leading position (-1.6% in volume), value sales were still the largest in the category at more than £1.6 billion. Last year also represented a significant trading period in the squash segment, as traditional variants lost relevance and were replaced by super-concentrate products, such as Oasis Mighty Drops and Robinsons Squash’d. Yet despite squash sales falling by 4.7% in value, Britvic believes these latest innovations demonstrate a new direction, moving squash consumption out of the home and enhancing its popularity on-the-go.
‘2014 saw a convergence of two macro trends – consumers continuing to seek great taste and also seeking a lower calorie option’ Jonathan Gatward, marketing director, Britvic Soft Drinks Spearheaded by a nationwide TV advertising campaign in June and July, the activity also includes video on demand and social media promotions – all of which profile Vimto’s NAS Squash and 500ml RTD Still formats. To boost its presence in the Midlands, Vimto began its TV commercial on regional channels last month and will run a radio and digital campaign in the lead up to Birmingham’s Fusion Festival in August, where Vimto is the headline sponsor. “All wholesalers value these types of pricing and promotional strategies,” says Fida Hussain, general manager at Bestway Brighton. “At Bestway, we are always looking to capitalise on latest innovations and to maximise our opportunities in growing categories. “Bespoke and themed promotions always make a huge impact, as does depot participation from suppliers and active selling. We really benefit from productive supplier partners who can help to execute and enhance in-depot activity.
All data: Nielsen
Top 10 soft drink brands by value share in the off-trade 1
Private Label (18.5%)
Pepsi Cola (5.3%)
Red Bull (3.5%)
Did you know? Vimto is currently outperforming the category, up 7% year on year and worth £69.1 million.
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ON YOUR FULL ROBINSONS ROBINSONS PMP PMP RANGE RANGE ROBINSONS and the Robinsons Arch device are registered trademarks of Robinsons Soft Drinks Limited. Every bottle of Robinsons squash contains minimum 10% juice from concentrate. Source: 1. Nielsen Scantrack Total Market data to 6th December 2014 MAT
[ SOFT DRINKS ]
“We have some supplier weeks lined up this summer, along with themed trade days and a couple of PR evenings. These are tried and tested events that bring substantial results and increase sales for all parties,” says Hussain. Last year, several suppliers sought to embrace major sporting events, such as the Commonwealth Games, World Cup and Tour de France, with on-pack promotions and event sponsorships. From partisan-themed PoS to Brazilian-inspired limitededition variants, cash & carries across the country became awash with promotional activity as many looked to communicate the value of each occasion to retail and foodservice customers. Roger White, chief executive of AG Barr, even praised the ”excellent execution“ of the company’s marketing activity during the lead up to the Glasgow Commonwealth Games, which helped to deliver a pre-tax profit of £19 million, up 14.6%, for the first half of 2014. Fast forward nearly 12 months, however, and wholesalers are understandably employing a more analytical and cautious approach to stocking their fixtures. The Rugby World Cup, Wimbledon and The Ashes Series aside, promotional ties-up with sport events appear to be in short supply this year, with Hussain admitting that any sales spike will be dependent on the weather this summer. Simon Harrison, wholesale sales director at Coca-Cola
Enterprises (CCE), comments: “People often enjoy barbecues and other summer social events, such as parties and picnics, which gives wholesalers an opportunity to achieve incremental growth during the warmer weather, as retailers stock up. ”Adult soft drinks, such as Appletiser, are great for a special occasion, and give consumers a chance to trade up to a more premium choice. “Providing a range of soft drinks in 4 x 330ml multipacks and a choice of larger, sharing formats of colas and flavoured carbonates ensures there is something for everyone to enjoy.” Value sales of adult soft drinks through impulse stores grew by 5% last year, according to Nielsen, with the subcategory generating £6.8 million worth of sales for retailers. Amanda Grabham, marketing director – soft drinks at SHS Drinks, reports: “The good news for cash & carries and wholesalers is that the adult soft drinks category has really blossomed in the impulse sector in the past 12 months. “More than one in five adults (21%) don’t drink alcohol at all (TGI), and in addition to this, there are those who aren’t drinking alcohol for religious or health reasons. Consumers are turning to adult soft drinks because they want flavours that are alternatives to wine and are more suited and attuned to the adult palate. “As the number one adult soft drinks
60 seconds with...Stuart Lane, sales director at Lansdell Soft Drinks
All data unless otherwise stated: Nielsen
1. Which brands are currently thriving in the soft drinks market? Coca-Cola, Relentless, San Pellegrino and Juice Burst. 2. Which products would you consider must-stock lines in your top-performing categories? a Cola/Carbonates – Original and Diet Coke 500ml PET bottles and 330ml glass bottles. a Water – 500ml bottled formats. a Energy – Red Bull, Monster, Relentless and Rockstar. a Juices – Oasis, Fruit Shoot and Pure Juice in 500ml bottles and 200ml cartons. 3. Are your customers now favouring more exotic flavour combinations, rather than traditional variants? Most definitely. The stranger the flavour, the more they seem to like it. Our customers are always asking our sales team for more and more limited editions.
4. What kind of promotions will you be looking to adopt this summer to help maximise sales? We will be running about 80 promotions a month. Our customers are very savvy and only buy on deals. 5. Do you envisage a spike in demand for soft drinks during major sporting events this year? No, our history tells us that with sporting events, it’s our alcohol sales that experience a spike, not soft drinks.
Leading Flavoured Water Brand
FRESH NEW LOOK
Re-hydrate the fruity way and improve your profit line low calorie
330ml Sparkling Range
500ml Still Sports Cap Range
750ml Still Sports Cap Range
Lemon & Lime / Apple & Blackcurrant Strawberry / Peach / Forest Fruits Orange & Mandarin
Lemon & Lime / Apple & Blackcurrant Strawberry & Kiwi / Peach / Forest Fruits Orange & Mandarin
Lemon & Lime / Strawberry
Call our sales office: 01547 530 220 www.radnorhills.co.uk
[ SOFT DRINKS ] Leveraging healthy lifestyles
Merchandising top tip: SHS Drinks recommends stocking adult soft drinks adjacent to cordials and carbonates.
brand, accounting for almost a third (31%) of all adult soft drink bottles sold in the take-home market, Shloer is a ‘must stock’ for wholesalers and cash & carries who should be offering at least the two best-selling flavours – Shloer Red Grape and Shloer White Grape.” To help reinforce Shloer’s association with gifting and social occasions, SHS will be running tailormade promotions for selected cash & carries and wholesalers during 2015, as well as special ‘one day only’ promotional deals at cash & carry trade shows during the summer. Elsewhere, Lucozade Ribena Suntory claims that it has unlocked a new sector in the soft drinks market, after transforming its Orangina brand into a actively-desired, premium adult carbonate. The brand, which is currently worth £4.6 million in the UK off-trade, has undergone a complete portfolio relaunch to help reposition its sparkling fruit range into the ’special any day’ category. Worth an estimated £79 million and growing at 21.8%, special any day “fulfils consumers’ desire for premium and unique offerings,” explains Orangina marketing manager Jamie Nascimento. The new 420ml PET bottles will be available in Original and Light variants from the end of May, with an rsp of £1.20.
All data: Nielsen
Top 10 soft drink segments by value sales on-premise 1
Cola (£1.7 billion, up 2.8%)
Lemonade (£532 million, down 0.1%)
Juice Drinks (£341 million, up 1.2%)
Mixers (£332 million, up 12.6%)
Water (£296 million, up 26.8%)
Squashes (£266 million, up 4.3%)
Glucose & Sport Drinks (£225 million, down 10.2%)
Pure Juice Mixers (£192 million, down 0.9%)
Flavoured Carbonates (£190 million, up 2.8%)
Pure Juice Other (£143 million, up 7.3%)
Britvic has recently launched a multi-territory partnership with the event organiser Tough Mudder to develop a custom event aimed at children aged 6-12. The pioneering Fruit Shoot Mini Mudder obstacle courses, which debuted in the UK earlier this month, will run alongside Tough Mudder and Mudderella events across the US, UK and Ireland until 2017. The international children’s event lends itself to multiple marketing opportunities in each territory, including a nationwide competition, event sampling and digital, social and experiential communications.
A nationwide £4 million campaign will support the relaunch over the coming months. This will include TV advertising, experiential activity, out-of-home advertising and in-store activation.
Bottling growth Although cola products continue to dominate the market, plain and flavoured waters are booming thanks to the backlash against sugary soft drinks. With more consumers recognising the importance of health and hydration, value sales of plain water climbed by 12.6% to £672.9 million in the off-trade last year, with ‘water plus’ up 9.5% in value. The water segment is expected to remain a key focus area for wholesalers throughout the summer months, as retailers look to meet consumer demand for fast rehydration in hot weather. Maurice Newton, sales & marketing director at CBL Drinks, urges wholesalers to develop their bottled water fixtures by offering a wider range of brands at both the upper and lower price tiers.
‘There has been huge retailer focus on enhanced waters that contain vitamins and other minerals’ Maurice Newton, CBL Drinks sales & marketing director “The category is crying out for the return of sensibly priced brands, such as Perfectly Clear,” says Newton. “Flavoured water is particularly important for the wholesale sector due to its growth and value opportunities. “There has also been huge retailer focus on enhanced waters that contain vitamins and other minerals. A good example is Bio-Synergy’s Skinny Water, a product that utilises ingredients such as chromium and raspberry ketone, which have credible links to weight management.”
M O R F G N I R DISAPPEA ! U O Y R A E N A CHILLER
3 MONTHS NATIONAL TV ON AIR NOW!
FROM THE UK’S No.1 FLAVOURED CARBONATE* *Nielsen Scantrack, Vol Sales, MAT to 28.03.15, Total Impulse
[ SOFT DRINKS ]
Mango Month delivered a 50% uplift in Rubicon sales through bespoke displays and promotional activity last May.
Giles Brook, CEO of Vita Coco Europe, claims that more parents are now scrutinising what they are giving their children and actively seeking low-sugar beverages. Vita Coco pioneered a new Vita Coco Kids product in March last year, offering parents a reduced sugar alternative in the kids’ drink category. Available in 4 x 180ml tetra wedge multipacks (rsp £2.99), Vita Coco Kids contributed to an 81% uplift in coconut water sales for the brand during 2014, according to Brook, with almost a third coming from the wholesale and cash & carry marketplace. To capitalise on the UK’s coconut water segment growing fivefold in the last 12 months, Unisnacks has announced that it will be distributing a new five-strong range of Thai Coco Coconut Water next month. Available in Chocolate, Mango, Original, Melon and Strawberry flavours, the new 280ml range will retail at around £1.50, offering between 50-80% POR for retailers. Research shows that the exotic drinks category has grown by 40% since 2013, with mango flavours outselling apple variants by 18%. To tap into this trend, AG Barr has introduced special packs of Rubicon to celebrate Mango Month – an annual event which marks the start of the mango crop season.
All data unless otherwise stated: Nielsen
Soft drink segments by value share in impulse 1
Glucose Stimulant Drinks (25.6%)
Fruit Carbonates (9.7%)
Plain Water (9.7%)
Juice Drinks (9.4%)
Sports Drinks (4.2%)
Pure Juice (3.5%)
Flavoured & Functional Water (3.1%)
Dairy & Dairy Substitute (3%)
Non-Fruit Carbonates (2.8%)
Cold Hot Drinks (0.9%)
Traditional Mixers (0.7%)
Mine’s a cold one! Four-pack cans are currently growing at 65%, with an incremental 2.3 million sold in the last year.
The retailer-only promotion offers stores the chance to claim over 5,000 instant-win prizes, including holiday vouchers, Rubicon-branded iPad minis and money-off vouchers. Running until the middle of June and supported by instore PoS, winning codes are printed in the tray of special cases of Rubicon one-litre bottles (rsp £1.29/ two for £2 PMP) and 59p price-marked 288ml cartons and 330ml cans. James Logan, commercial director at Refresco Gerber, highlights price marking as an “increasingly important strategy for cash & carries to help demonstrate value for money in a cost-competitive environment”. In October last year, Refresco applied a 89p price-mark to one-litre packs of Del Monte Fruit Burst in Tropical, Orange and Five Fruits. Available exclusively for independent retailers, the cartons also display a ‘two for £1.50’ promotion and come in outers of eight. More recently, Refresco announced a major marketing campaign for Del Monte and Sunpride, with over 200,000 samples set to be distributed at 13 UK events this summer, including the BBC Good Food Summer Show and the Badminton Horse Trials. Refresco estimates that both brands will reach more than 1.7 million people during the shows. This will run alongside family-focused social media campaigns for Sunny D, encouraging younger consumers to engage with the brand online. These will be promoted on-pack and online at the end of the summer school term, during October half-term and in the run-up to Christmas. Elsewhere, Coca-Cola Enterprises has partnered with animated family film, Minions, to launch a new Capri-Sun on-pack promotion and limited-edition variant. The Minions tie-up will be marketed on all 10 x 200ml packs of Capri-Sun, including a new BanApple flavour, which is made from banana and apple juice. The promotion, which is a continuation of the brand’s partnership with Despicable Me 2 in 2013, will be backed by in-store displays and a £200,000 national press campaign targeting ‘gatekeeper‘ mums.
[ SOFT DRINKS ]
Fit for purpose In the energy drinks market, the on-premise and off-trade sectors experienced contrasting fortunes in 2014, with a 4.6% increase in retail value sales offset by a 10.2% fall in the on-trade. Britvic attributes the latter figure to the high-sugar association of energy drinks, with ‘better for you’ alternatives from Boost and Monster contributing to both brands outperforming the category, up 17.3% and 1.6% respectively. Fida Hussain, general manager at Bestway Brighton, highlights energy drinks as a “really thriving category”, with new 12-packs and zero-sugar options, such as Red Bull Zero, proving increasingly popular with its retail customer base.
‘Supporting independent retailers is at the very heart of our business, which we do consistently with the help of key suppliers like Boost’
All data: Nielsen
Monty Wouhra (pictured), director, East End Foods Monty Wouhra, director at East End Foods, shares a similar view and lauds the “fantastic growth” of Boost’s price-marked packs, which have helped its retail customers challenge the multiples within their catchment area. “Supporting independent retailers is at the very heart of our business, which we do consistently with the help of key suppliers like Boost Drinks,” explains Wouhra. “By not supplying the multiples, Boost could not be any more explicit with their commitment. 36
“Boost’s one-litre Original pack is a very strong takehome line, showing an impressive 25% year-on-year increase. Boost’s 250ml Original can is also a regular top performer, enjoying 41% year-on-year growth last year.” As part of its ‘Champion Of The Independents’ campaign, Boost Drinks has announced its biggest ever merchandising competition across the wholesale and retail sectors. To incentivise cash & carries to display pallets at the front of their depots, Boost is offering wholesalers the chance to win £1,000 for the best brand showcased in each of three categories: 2-3, 4-6 and 7-10 pallets. The ‘Grab a Grand’ incentive, which is running from July until the end of August, is supplemented by a new suite of promotional deals and in-depot PoS, such as posters, leaflets and banners. Meanwhile, Britvic has resurrected ‘Do the Dew’ – the iconic rallying cry and credo for Mountain Dew – to act as the anchor for the brand’s first-ever global marketing campaign. Backed by a visual refresh and digital activity, two creative films have been released, starring professional skateboarder Sean Malto and Olympic snowboarder Scotty Lago, to mark the 20-year anniversary of Mountain Dew’s well-known marketing slogan. In keeping with the sports theme, Coca-Cola Enterprises has launched a new promotion for its Monster Energy brand, offering consumers a chance to win a track day experience with reigning F1 world champion Lewis Hamilton. Designed to publicise Monster’s Energy’s association with the Mercedes Formula One team, the exclusive prize includes a meet and greet with Hamilton, followed by the chance to accompany him on a lap of a track and a photo and signing session. Running until the end of July, the promotion will be communicated through PoS, PR and marketing activity. CCM
For further information: AG Barr (01204) 664295 Boost Drinks (0113) 240 3666 Britvic Soft Drinks (0845) 758 1781 CBL Drinks 0191-516 3300 Coca-Cola Enterprises (0845) 722 7222 Lucozade Ribena Suntory 020-3727 2420 Refresco Gerber (01278) 441600 SHS Drinks (01452) 378555 Unisnacks (0800) 195 6438 Vimto (01925) 220122 Vita Coco 020-7183 7312
Available at all branches www.bulldogenergydrink.co.uk
Trade enquiries welcome
and many other leading wholesalers.
[ BEERS, LAGERS & CIDERS ]
Flavour of the month Beer continues to dominate the alcoholic drinks landscape, with 67% of adults consuming the beverage in the six months to September 2014. But with palates becoming sweeter and recessionary and health pressures remaining front of mind, interest in cider has become the real success story in recent years thanks to significant innovation. uoyed by the proliferation of flavoured NPDs, the UK cider category is growing faster than the total alcohol market, with fruit-flavoured products up 22% year on year. Although the rejuvenation of the beer category has stunted some of this momentum, Confex reports that its wholesale members are being forced to embrace flavoured cider as a sub-sector in its own right. The fruit cider category grew from £163 million midway through 2013 to £238 million by the summer of 2014. Nearly half of this growth (£43 million) came from consumers buying more on each trip. Heineken forecasts that long-term trends will continue to move towards sweeter ciders and drinks that are less bitter, with research showing that consumers are willing to spend an additional 10% for an intriguing flavour above the price of the core variant. To help gain traction among a new, experimental generation of drinkers, Heineken extended its Bulmers portfolio in March by debuting the UK’s first-ever Blood Orange variant. Martin Porter, managing director – off trade at Heineken, says: “Consumer preferences are continually evolving, especially within the young adult age group. Bulmers Cider Zesty Blood Orange has performed brilliantly in consumer taste tests and is in the top 10% of product concepts amongst the target audience (TNS).” To continue Heineken’s focus on unusual flavours, Old Mout has undergone a similar extension, with a new Pomegranate & Strawberry flavour now available in the on and off-trade channels in 500ml bottles. Chris Wisson, senior drinks analyst at Mintel, highlights fruit-flavoured ciders as a “fashionable and innovative segment of the market – two attributes which have been key in driving growth by appealing to millennials in particular”.
All data unless otherwise stated: Nielsen
Confex top tips a
Embrace NPD as the British public are increasingly looking to try something new. Look closely at the planograms available from key suppliers regarding 2015 sporting events to ensure you are not caught short of stock at key times. Keep track of the weather forecast to predict a surge in drink sales – ‘forecast.co.uk’ is a very reliable and functional app for your smartphone.
Kopparberg grew by 17.9% in the off-trade last year, with its fruit-flavoured cider range adding almost £15.6 million worth of sales in the year to 13 September 2014. With the aim of overtaking Bulmers as the UK’s most popular cider brand, Kopparberg has unveiled the world’s first frozen cider – Kopparberg Frozen Fruit Cider. Available in Strawberry & Lime and Elderflower & Lime flavours (rsp £2.99), the launch comes as frozen pouches have revolutionised the RTD market, with value sales trebling to £16 million between January 2014 and 2015. Kopparberg has also announced a new £5 million marketing campaign this summer, comprising cross-media investments in outdoor, digital and press activity. Designed to push its Strawberry & Lime variant, the activity will be led by Kopparberg’s largest outdoor campaign to date, with 4,000 six-sheet adverts being displayed across more than 1,900 sites in eight UK cities. This will be leveraged by the Swedish brand’s Spotify partnership and the returning Kopparberg Urban Forest – a five-week pop-up festival – in East London next month. In keeping with an influx of summer NPD, Carlsberg UK has expanded its Somersby Cider range with three new flavours. Backed by a £7 million marketing investment, the Apple Burst, Cranberry and Blackberry variants are available in 4 x 330ml and single 50cl bottle serves, retailing from around £4.50 and £1.89. Elsewhere, Thatchers Cider has targeted the fruit cider cans market, up 93% year on year (Kantar), by introducing 4 x 440ml formats of apple-flavoured Old Rascal and Thatchers Somerset Haze (rsp £4.99 and £4.49 respectively). The launch follows news that apple flavours still account for 70% of sales in the convenience channel.
DESPERADOS REPRESENTS 82% OF THE SPIRIT BEER SEGMENT & 86% OF ITS DRINKERS WOULDN’T CHOOSE ANOTHER SPIRIT BEER!1 ATTRACTING NEW DRINKERS INTO THE BEER CATEGORY WITH ITS UNIQUE TASTE2 NEW DESPERADOS RED – 5.9% DESPERADOS BEER WITH THE INVIGORATING INTENSITY OF GUARANA AND CACHAÇA FLAVOURS
STOCK UP NOW
Brewed in the EU.
*Based on following Heineken UK sales guidance Source: 1. MAT Vol Nielsen Feb 15 & Kantar Nov 14 2. Kantar Nov 14
[ BEERS, LAGERS & CIDERS ] Tsingtao revs up UK presence
Budweiser has announced a new long-term agreement with The Football Association, which will see the American brand become the Official Beer partner of The FA Cup until 2018.
All data unless otherwise stated: British Beer & Pub Association
Sizzling summer revival Following nine consecutive years of decline, which saw sales slide by 24%, the total UK beer category grew by 1.3% in 2014, with off-trade revenue overtaking on-trade for the first time on record (up 3.5% versus a 0.8% decline). Not only have the margin pressures on beers been alleviated, but the immediate outlook for the category also appears encouragingly bright, says Mintel’s Chris Wisson. He adds: “Successive 1p cuts on the tax on pints and the slowdown in the cider market bode well for beer’s improving fortunes.” Tom Gittins, business development manager at Confex, believes that the key to taking advantage is to offer a point of difference, since retail and foodservice customers are now demanding more authentic products which embrace local provenance and the craft beer revolution. “Nearly all of our members stock a mixture of on and off-trade alcohol products, thus they have always had a relationship with the breweries,” explains Gittins. “However, to be able to offer the best service to their customers, there is now more of a focus on locally brewed beer, alongside the national brands.” To help fulfil both briefs, Diageo released two craft beers under the Guinness trademark last September. Comprising Dublin Porter and West Indies Porter, the on-trade launch heralded a new focus on the premium bottled beer market, hence the introduction of Guinness Golden Ale (rsp £2.29) in the off-trade earlier this year. More recently, Guinness Original has undergone a packaging overhaul, with newly-designed bottles and cans paying homage to the brand’s heritage and brewing credentials. This reflects the “growing consumer interest in beers with real stories and history,” says Nicola Parry, marketing manager for Guinness Western Europe. Not to be outdone, Heineken has revamped multipacks of John Smith’s Extra Smooth and Original ales. Backed by a £2 million marketing spend, the name badge now references Tadcaster Brewery, the home of the brand since 1758. 40
Chinese lager Tsingtao has been confirmed as the factory team sponsor for MV Agusta during this season’s British Superbikes (BSB) Championship. The sponsorship, which extends the brand’s two-year association with the BSB, will be supported by an abovethe-line marketing investment, comprising posters, billboards and adverts. Wholesale-specific PoS kits will also be available from UK distributor Halewood International, with promotions and competitions running throughout 2015.
Gittins expects beer consumption rates to experience a “massive surge” this summer, with brands such as Heineken already promoting sponsorship tie-ups with the Rugby World Cup and the UEFA Champions League. “Sporting occasions play a key part for all wholesalers and we work closely with our suppliers and members to ensure the route to market is fully stocked during periods of peak demand,” he says. To help maintain relevance among its core millennial male demographic, Budweiser from AB InBev has recently teamed up with Sky Sports to unearth the greatest amateur goals across the country. Fronted by Gary Neville, Jamie Redknapp, Ed Chamberlin and Martin Tyler, the football marketing campaign challenges British amateur footballers to submit videos of their ‘dream goals’ in the hope of starring in Budweiser’s ongoing TV advertising campaign. The initiative, which was unveiled by AB InBev in March, is supported by new ‘easy-carry’ 12 x 300ml and 12 x 400ml packs, with limited-edition primary and secondary packaging running across 4 x 568ml, 12 x 300ml, 6 x 300ml basket and 18 x 440ml suitcase formats. Similarly, AB InBev has leveraged Corona’s longstanding association with the beach by unveiling an integrated marketing campaign. A series of exclusive music events, dubbed ‘Corona SunSet Sessions’, will be hosted at leading UK bar venues this summer, with limited-edition packaging, outdoor advertising and beach-inspired PoS supporting the brand’s CCM experiential-led activity.
For further information: AB InBev (01582) 391166 Carlsberg UK (01604) 668866 Diageo 020-8978 6000 Halewood International 0151-480 8800 Heineken 0131-528 1000
Kopparberg (02890) 668901 Thatchers Cider (01934) 822862
ZEST TO YOUR
RANGE BOOST YOUR CIDER PROFIT BY STOCKING ZESTY BLOOD ORANGE
INNOVATION FROM NO1. MODERN PACKAGED CIDER IN GB1
• INNOVATING AT SCALE WITH A COLOURFUL RANGE – ATTRACTING YOUNGER, MORE AFFLUENT SHOPPERS THAT ARE WILLING TO SPEND MORE2 • SHOPPERS WON’T MISS BULMERS IN 2015 WITH A £12M INVESTMENT IN ADVERTISING, INCLUDING TV, NEW MEDIA AND VISIBILITY IN STORE3 Source 1: Nielsen & CGA: Heineken UK Modern Packaged Cider Segment Volume Sales 52 w/e January 2015 2: Kantar 52 w/e January 2015 Shopper Profile: Fruit Cider Buyers vs. Apple & Pear Buyers 3: Internal reported brand investment
[ PRODUCTS & PROMOTIONS ]
Thinsation! New Ritz Crisp & Thin set to shake up savoury snacks aisle PRODUCT OF THE MONTH
Mondelez International has diversified its Ritz brand into the UK crisps market by pioneering a new baked and light potato snack. The premium extension, dubbed Ritz Crisp & Thin, has been developed to create a new savoury segment and follows the brand’s first TV campaign in 30 years last summer. Available in Sweet Red Chilli, Sea Salt & Black Pepper, Cream Cheese & Onion and Sea Salt & Vinegar variants, the product will be backed by a £10 million brand marketing campaign over the next seven months, including TV advertising, sampling, and out-of-home and in-store activity. All four flavours come in 100g sharing bags (rsp £2.19), while the Cream Cheese & Onion and Sea Salt & Vinegar variants are also available in 30g single bags, with an rsp of 79p. Rick Lawrence, biscuits & snacks category lead for the UK and Ireland at Mondelez, comments: “Currently dominated by the traditional fried potato
Ritz has been scored ‘outstanding’ in independent taste tests and ranked in the top 25% of all European savoury snack initiatives in the last decade.
crisp, we believe there is significant room for snacks to be bigger within the category, like in North America where salty snacks are worth $28 billion.” Elsewhere, Mondelez has revamped its Cadbury Dairy Milk portfolio by launching a selection of conveniencefriendly £1 price-marked tablets. The price point has been added to over half a dozen bars, including Original (120g), Fruit & Nut (120g) Caramel (120g), Oreo (120g), Bubbly (90g), Puddles Smooth Hazelnut Flavour Filling (90g) and Puddles Smooth Mint Flavour Filling (90g). To conclude its latest activity, Mondelez has introduced a new on-pack promotion across sharing bags of Maynards, offering consumers the chance to win
once-in-a-lifetime banqueting prizes. As part of the ‘Celebrate Like Royalty‘ promotion, consumers can win a banquet on a private jet, worth £20,000, or one of 250 banquets in fun-filled locations. Discounted vouchers for Maynards packs are also available, while Mondelez will be rewarding five lucky retailers and their staff with a dining experience worth £500. The campaign, which runs until the middle of July, is displayed on promotional pink outer cases and is supported by a £2 million marketing investment, including a full suite of PoS and TV, radio and digital activity. a Mondelez International (08702) 400861
All data unless otherwise stated: Nielsen
Heinz targets summer season with BBQ Heroes campaign To capitalise on summer sales of sauces increasing by 16% since 2013 (Kantar), Heinz has unveiled a £4.2 million campaign to promote its range of sauces during the BBQ season. Returning for a second year, the Heinz BBQ Heroes campaign will run throughout the summer and include TV adverts for the first time, as well as an increased social media presence. Two 20-second TV commercials will spearhead the launch, providing tips on how to use Heinz sauces as a marinade and promoting two products within its chilli sauces range – Peri Peri and Sweet Chilli. 42
The multi-million-pound media investment follows the introduction of a 50% less sugar range, replacing Heinz’s existing Reduced Sugar & Salt variant. The new addition, which is available
Did you know? Sauces are present at 33% of BBQ occasions (Kantar).
in 415g single cans, four-packs, Snap Pots and 200g cans, offers a more compelling claim for consumers, particularly health-conscious mums, by providing reassurance about reduced sugar content. Healthy beans currently represent a significant sub-portfolio of the beans and accompaniments category, with a 7% volume share. The launch will be backed by a fully integrated communications campaign in August, covering broadcast media, in-store marketing support, price promotions and Facebook activity. a Heinz (0800) 528 5757
[ PRODUCTS & PROMOTIONS ]
Building on the success of last year’s England shirt giveaway, Mars Chocolate has announced an on-pack promotion giving fans the chance to win exclusive England merchandise. It is marketed across redesigned Mars single, duo and multipack bars until the end of August. Consumers can win one of three England teamdesigned footballs, fronted by Wayne Rooney, Gary Cahill and Alex OxladeChamberlain. As part of a £10 million media investment for the brand in 2015, the ‘Win 1 of 1 million’ promotion will be backed by shelf barkers, aisle flags and other display material for wholesalers. a Mars Chocolate (01753) 550055
Burton’s Biscuit Company has extended two of its biggest brand launches of 2015 with PMP variants of Maryland Soft Baked cookies and Jammie Dodgers Jammie Bakes. Available exclusively to the cash & carry/wholesale channel in cases of eight, both SKUs now offer a £1.39 price-marked pack. The two brands are set to benefit from a multi-million-pound campaign, including national TV advertising. Price-marked biscuits in symbols are worth £37 million, up 12% year on year, and now account for a third of all-yearround biscuit sales in the sector. a Burton’s Biscuit Company (01727) 899700
Grace Foods has reinforced Nurishment’s commitment to offering great taste and value with the addition of a limited-edition, price-marked pack. Designed to reward loyal fans, the £1 price point will be displayed on cans of the four best-selling SKUs of Nurishment Original, the UK’s number one nutritionally enriched milk drink. These are vanilla, chocolate, strawberry and banana flavours. The promotional activity, which concludes at the end of June, comes after the brand announced its first-ever motorsport partnership with Speedworks Motorsport, ahead of this year’s British Touring Car Championship. a Grace Foods (01707) 322332
Kepak Convenience Foods has evolved its Rustlers portfolio by releasing two Panini lines. Retailing from £2.39, the Chicken & Pesto and Pepperoni flavours are merchandised in outers of four and backed by a nationwide sampling and social media campaign. The micro-snacking brand will also benefit from TV advertising and major on-pack activity later this year. In consumer trials, 80% of people said they found the concept of a Rustlers panini appealing. a Kepak Convenience Foods (01772) 688300
Following a successful launch in the US, Perfetti Van Melle has extended its Chupa Chups portfolio with Airheads – a new five-strong range of fruitflavoured candies. Available in lemon, blueberry, strawberry, apple and orange variants, the bite-size 50g packets will sit within the chewy market, which grew by 4.2% between October 2013 and 2014 (IRI). The launch, which has an rsp of 60p, will be backed by a marketing campaign comprising advertising, social media activity and a selection of PoS material. a Perfetti Van Melle (01753) 442100
Responding to the rising popularity of at-home entertaining, Kettle Foods has announced the launch of a new limitededition seasonal flavour of Kettle Chips. The Thai Sweet Chilli, Lemongrass & Coriander addition comes in cases of 12 x 150g bags and aims to capture the spirit of fresh summer food, while also strengthening Kettle’s status as a top three sharing brand. Packaged in a vivid green bag for greater on-shelf presence, the Asianinspired seasonal addition will be available until September, with an rsp of £2.19. a Kettle Foods (0800) 616996
All data unless otherwise stated: Nielsen
• NEW RESEALABLE BOTTLE FORMAT • BOTTLE IS THE 2ND MOST IMPULSIVE TYPE OF PACK BOUGHT* • SKITTLES®IS THE 4TH LARGEST SUGAR BRAND**
Source: *TNS Research 2012 **Symbols and Independents AC Nielsen MAT data to 21.02.15 ©2015 Wm. Wrigley Jr. Company. All Rights Reserved. SKITTLES® and affiliated designs are trademarks of Wm. Wrigley Jr. Company or its affiliates.