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the twelve days AWARDS lunch: chance to quiz 2012 Olympics organiser Independents could gain ÂŁ1bn pre tobacco display ban Makro gives management cause for optimism FWD backs apprenticeship scheme for C&C/wholesale

The business magazine for cash & carry/delivered wholesalers

*The Nielsen Company, Total Value MAT to w/e 21.05.11


contents Forking out on forklift training “It’s not rocket science” and “You don’t have to be a brain surgeon” – two expressions that sum up the basic intelligence needed to grasp what to most might be an elementary function. Either could, respectfully, be applied to certain roles in the cash & carry and delivered wholesale sector. That could all change, however, if a scheme involving the FWD comes to fruition. The Federation wants to see an apprenticeship structure introduced into the trade which would ensure some duties are treated more as a profession than just a job. It could mean would-be forklift truck operatives, lorry drivers and checkout staff attending courses so they can receive instruction in their chosen career. Theoretically, these employees would be better qualified to carry out their work. And, who knows?, there might even be an element of the tuition whereby the forklift and truck drivers could learn how to repair their vehicles, saving their companies on expensive outside help. No doubt the ‘forklifters’ would be trained after hours, rather than catch customers unawares as they hone their skills in the C&C! And while I can’t visualise someone who is just about to receive his HGV licence doing so wearing a cap and gown, awaiting his turn behind graduates in philosophy, Egyptology or the Classics, the scheme has its merits. The FWD is to be applauded for its efforts to bring a greater degree of skill and professionalism into the business.

No mistaking what Landmark’s newest member does for a living! ... see p.4

news delivered


in focus




innovation & education







24–26 28

energy drinks


soft drinks


christmas drinks


products & promotions


Mervyn Gilbert

Managing Editor

Kirsti Sharratt

Media Sales Manager

Clare Phillips

Business Development Manager David Ford Publishing Director



retailer awards

snacks update

Mervyn Gilbert editor


Martin Lovell

4,555 July 2010–June 2011


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

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

Cash & Carry Management

• November 2011 • 3

news IN BRIEF Musgrave role Eoin McCormack, former trading & marketing director of Musgrave Wholesale Partners, which operates nine MarketPlace C&Cs in the Irish Republic and Northern Ireland, and four Holmes C&C outlets in Northern Ireland, has taken up a similar role for Musgrave Operating Partners Ireland. The new MOPI was formed after the Cork-based group’s takeover of the Superquinn retail business. McCormack’s replacement at Musgrave Wholesale Partners is Paul Kerrigan, previously delivered retail director.

Professional approach The FWD is working on a framework for apprentices in the cash & carry/wholesale trade, which chief executive James Bielby says could lead to new entrants viewing the industry as a profession rather than just a job. Two other organisations, the Builders Merchants Federation and Menzies Distribution, are combining with the FWD at this early

Filshill changes Glasgow wholesaler JW Filshill has made personnel changes following IT improvements with the aid of Sanderson. They include Ian McDonald, who becomes sales & buying director (from sales director), Derek Cowan, now head buyer (formerly senior impulse buyer), Stuart Harrison as senior grocery buyer, and Charlotte Rigby as buying administration manager. Liz Kane, ex Botterill’s, is joining as alcohol buyer.


out the criteria necessary for doing the job properly from an early age. Said Bielby: ”We are involved in planning the scheme, which is supported across our membership. It is being funded by the Government, and we are hopeful it will be up and running in C&C/wholesale by next April.” Tel: FWD (01323) 724952.

£1bn opportunity

Green award Confex is to stage a competition next year – its 40th birthday – to find the top ‘green’ wholesaler in the group, which has 309 wholesale members and a turnover of £1.67bn.

stage to establish the principles for a blueprint as part of an initiative championed by Skills for Logistics. SfL, described as ‘the sector skills council’ for the UK’s freight logistics industry, is licensed by the Government. One of several schemes in which it is involved is for warehousing & storage, including driving goods vehicles and forklift trucks. It sets

Will greater qualifications be needed for this job?

Imperial Tobacco is linking with Booker to tell independents about the short-term benefits to them of the coming tobacco display ban. It all hinges on the fact that while they are exempt from the legal changes until 2015, the multiples are being hit from next year. The cash & carry operator’s sales director retail, Steve Fox, said: “We predict that a possible £500m in tobacco sales will move to

the independent sector after the ban comes into effect in multiples. “It could also gain the same amount in other categories.” Imperial’s head of the distributive channel Patrick Toms spoke of a “three-year opportunity” for the small shopkeeper. Tel: Booker Group (01933) 371000. Tel: Imperial Tobacco (0117) 963 6636.

Dairy specialist joins Landmark Medina Dairy, which claims to be the largest privatelyowned dairy in the UK, is to join Landmark Wholesale at the start of the new year. The company, based in Windsor, was founded in 1979 by Sardar Hussain as a family-run dairy. Since then, it has opened depots in London, the north, the south and Wales. It supplies over 20,000 retailers a day from more than 30 distribution sites. Hussain said that joining Landmark would enable Medina to pursue further growth.

• Cash & Carry Management • November 2011

The turnover of the company, which also delivers to 1,500 foodservice customers, stands at over £200m. The product range includes bread, morning goods, eggs and soft drinks, as well as all dairy products. Trading & marketing director Steve Carter said: “For some time we have been developing ranges and categories outside of those for which we are well known. Being part of Landmark will bring greater buying power and allow us to offer our customers improved ranges at competitive prices.

“The Landmark ownbrand ranges and associated promotional activity will also help us to drive customer loyalty.” Landmark managing director Martin Williams said: “Medina are proud of their strong and longstanding ties to their suppliers and the customers who buy their products. We look forward to helping them extend their business, particularly in foodservice and retail.” Tel: Medina Dairy (01753) 847280. Tel: Landmark Wholesale (01908) 255300.



Driver dies at Newport site Police in Newport, Gwent, the Health & Safety Executive and the council’s health & safety department are investigating a fatal accident that took place at the end of last month at Blakemore’s cash & carry in the Welsh town. A delivery driver for Garth Bakery, of Abercynon, South Wales, 42-year-old Ronald Hayward, of Merthy Tydfil, died after being trapped by

metal gates at the depot. Investigators are working on the theory that he was trying to open the gates to reverse his lorry into the delivery yard when he became trapped underneath them. Four fire engines and an ambulance attended the scene of the accident. A brief statement issued later by a spokesperson for

AF Blakemore & Son said: “We are currently assisting the authorities with their investigation of an incident that occurred at our Newport depot. “We would, however, like to take this opportunity to offer our condolences to the family of the individual concerned.” Tel: AF Blakemore & Son (01902) 366066.

Ministerial address ‘Delivering for Local Communities’ was the theme of a first-time parliamentary reception organised by the FWD and addressed by Agriculture & Food Minister Jim Paice. Some of the top cash & carry executives were there to hear him speak, including Booker chief executive Charles Wilson, Landmark Wholesale managing director Martin Williams, Today’s Group md Bill Laird and Parfetts C&C chairman Steve Parfett. Paice acknowledged the valuable work done by the FWD in relation to small businesses and to DEFRA (the Department for Environment, Food and Rural Affairs).

The Minister also commended the FWD’s A Wholesale Commitment to Sustainability guide, saying: “I welcome the lead it is

taking in supporting sustainable distribution and reducing waste.” Tel: Federation of Wholesale Distributors (01323) 724952.

Agriculture & food minister Jim Paice addresses guests at the House of Commons.

Fine wine division launched Llanelli-based dual-purpose operator Castell Howell Foods, a member of Sterling Supergroup, has launched a fine wine division in association with Stratford’s Wine Agencies, of Cookham, Berks. The collection ranges from quality house wines to boutique varieties from

around the world. The brands include Sensi, from Tuscany; Anakena, from Chile; New Zealand Cable Bay; French Domaine Pal Mas; and Lar de Paula, from Spain. Castell Howell makes deliveries to around 4,000 customers, covering the hotel, hospital, restaurant,


pub, café, educational and leisure sectors. It stocks over 10,000 catering products and claims to be the largest independent food wholesaler in Wales. Cash & carry days are held each Thursday. Tel: Castell Howell Foods (01269) 846080.

Chance to network The Scottish Wholesale Association is holding a networking event at Glasgow’s Hampden Park Stadium on 15 November for suppliers who are not presently members. Executive director Kate Salmon said: “While the SWA already enjoys fantastic support from a large number of leading suppliers, we feel there are many more who do not yet fully understand what we do or appreciate the unique access to Scotland’s wholesalers that membership of our association can provide.” She added that the event would provide an opportunity for the association to explain its objectives and update suppliers on key events and activities, such as the Scottish Wholesale Achievers awards, annual conference, lobbying role and training programme. Presentations will be made by Salmon, SWA president George Benson, Graeme Clark, managing director of Scot Serve, and Alan Halliday, regional director of Coca-Cola Enterprises. SWA consultant Scott Brady, of Dundee-based ecos, will talk about the Association’s lobbying and legislative roles, and Sandie Holmes, of 121 HR Solutions, the SWA’s training provider, will also speak. Benson commented: “In the current challenging economic environment, it is absolutely crucial that wholesalers and suppliers have an ongoing dialogue which enables them to communicate effectively, share ideas and discuss any problems.” Tel: Scottish Wholesale Association 0131-556 8753.

Cash & Carry Management

• November 2011 • 5


Losses more than halved Klaus Raettig, who in July took over the hot seat as managing director of Makro UK, can rest a little more easily after scanning the latest set of trading results from the beleaguered cash & carry operator. They show that in the year to the end of December pre-tax losses were considerably reduced – to around £20m from £44.7m in 2009. Operating from three fewer branches in the later period, sales dipped from £867.8m to £796.8m. Raettig is one of four senior executives brought into the business by turnaround specialist AlixPartners after the departure of former md Hannes Floto. Company secretary David Wilson blamed the continued losses and lower sales not just on the trimmed estate – 30 outlets – but also on the economy, increased VAT and extreme weather at the start of the year. And while customer footfall was down by 9%, sales to HoReCa (hotel, restaurant and catering) customers

Charity ball Mitcham-based Elbrook C&C hosted its second annual charity ball at CHAK89, the banqueting venue which the company owns and which is on the same site. The Khalid family welcomed more than 300 guests, including those from the Houses of Lords and Commons, the Asian business community, cinema and television, sport and the Today’s Group. A charity auction raised over £18,000. Tel: Elbrook C&C 020-8646 6502.


Things looking a little brighter.

increased by 6%. Wilson said the company would concentrate more on the needs of customers, rationalise its range, become

more efficient, spend more on stores and focus more on foodservice delivery and ecommerce. Tel: Makro (0870) 662576.

Beef and lamb DBC Foodservice has introduced an EBLEX Quality Standard range of qualityassured British beef and lamb products for the foodservice trade. The selection includes around 20 items for dining occasions, such as Rolled and Tied Lamb Shoulder (1.3-1.7kg), Boneless Lamb Leg Joint (1.3-1.9kg), Topside Roasting Joint (2.5-3.5kg), Sirloin Steaks (2 x 5 x 227g) and Sirloin and Ribeye Steaks (both 2 x 5 x 170g). It complements the wholesaler’s EBLEX range for butchers. All products form part of ‘dbc label’, the wholesaler’s own brand launched at the beginning of the year. The range is available through the 12 regional depots on a ‘day one for day two delivery’ guarantee, and there is no minimum order size. The selection is likely to be extended over the coming months. Tel: DBC Foodservice (01707) 323421.

• Cash & Carry Management • November 2011

Jon Jackson (left), DBC head of trading, and Rob McFarlane, commercial director, meats.

Swipe at Asda The FWD has warned independent retailers to avoid the temptation of buying illegal stocks of beer to compete with ‘irresponsible’ promotions by supermarkets. Chief executive James Bielby referred to Asda’s £11 deal on Budweiser (24 x 300ml), which meant the multiple was selling to the consumer at less than the price legitimate C&C/wholesalers can offer to small shopkeepers. This will boost the illicit trade in beer on which UK duty has not been paid, he claimed. Bielby said: “Asda’s ploy to undercut its competitors with this irresponsible promotion not only flies in the face of the Government’s attempts to prevent supermarkets’ deep discounting of alcohol, it also puts enormous pressure on thousands of independent stores across the country to compete. “We are concerned that some will turn to the growing ‘grey’ market to source cheaper stock.” Government figures show that duty fraud on beer rose by 45% to £800m in lost tax revenue in 2009-10. Tel: Federation of Wholesale Distributors (01323) 724952.

Fifth such award Bestway Wholesale was presented with the Investors in People award at a ceremony held at the Freemasons Hall, central London. Attending the event on behalf of the C&C operator was group learning & development controller David Smith. He said: “This is a

tremendous achievement for everyone connected with the organisation. “It is the hard work and dedication of all our colleagues that has made this award possible – the fifth time in 12 years that we have won it.” Tel: Bestway Group 0208453 1234.



Heat intensifies in NE Hot on the heels of its announcement of a new branch in Brighton (Cash & Carry Management last month), Bestway has unveiled details of an opening in the north-east. The building, which will have a sales area of around 80,000 sq ft and will cost around £6 million to develop, will begin trading next spring on the Team Valley Trading Estate in Gateshead, Tyne & Wear – one of the country’s major cash & carry hotbeds, with five other businesses operating on the sprawling north-east site, including Booker and Blakemore (formerly Tyne Tees C&C). The new Bestway branch, a former printing works, will aim to capture not only a large chunk of the local retail community but also those in the foodservice sector. The depot will also offer a delivery service. The cash & carry, which will trade as Bestway and have a staff of 75, will be the

The Team Valley Trading Estate in Gateshead, which has grown enormously since its opening 75 years ago.

62nd in the group, including those operating under the Batleys name. Younus Sheikh, managing director, said: “We have been keen to expand further in the north and this opening will enable us to reach more customers in this region. Until now, traders have had to travel further to reach us.” In addition to Booker and Blakemore, C&C operators on the Team Valley Trading Estate are Two Ticks Cash &

Carry, operated by the EFB licensed business; Today’s group member Quayside Frozen Foods; and Northern Wholesale, which specialises in hardware, electrical items and toys. The estate is split into north and south parks, the cash & carry concerns mainly operating on the north side. It also contains a wholesale fruit & vegetable market. Tel: Bestway Group 0208453 1234.

Booker profit soars Booker, which recently announced its preliminary results for the 24 weeks to 9 September (Cash & Carry Management last month), lifted pre-tax profit during that period by 22% to £45m. Turnover increased by 8.5% to £1.8bn compared with the previous corresponding period. Like-for-like income from catering customers was up by 5.7% while that from retailers grew by 6.9%. Over the half year, 11 branches were converted to the Extra format, bringing the total to 126; another 10 are being upgraded in the present six months. Chief executive Charles Wilson said turnover in the second half to date was up on the same period last year and Booker continues to trade in line with management expectations. Tel: Booker Group (01933) 371000.

Expansion for Irish foodservice operator Henderson Foodservice in Northern Ireland, which recently officially opened its new £14m distribution depot in Mallusk, has acquired Newry-based Independent Catering Services, a member of Country Range Group. Established in 2005, ICS, which is owned by Savage & Whitten (affiliated to Today’s Group), has 60 staff and supplies ambient and chilled products to the catering trade in Northern Ireland, as well as the Irish Republic. The changeover process is scheduled to be completed by next March, at which time all ICS operations

At the official Mallusk opening are (l to r): Henderson Foodservice managing director Damien Barrett; Minister of Enterprise, Trade & Investment Arlene Foster; and Henderson Group chairman John Agnew.

will have transferred to the Henderson site. The intention is for ICS


employees to transfer to Mallusk. Those who do not will be offered ‘suitable

alternative roles’ within the broader Henderson Group. Henderson Foodservice managing director Damien Barrett said: “With an annual turnover of over £10m, ICS is a very successful food distribution company which has demonstrated great growth potential, particularly in the south of Ireland. There is obvious synergy between our two companies.” The 125,000 sq ft Mallusk site handles distribution to Marks & Spencer staff canteens and cafés throughout Ireland. Tel: Henderson Foodservice (02890) 342342.

Cash & Carry Management

• November 2011 • 7


Cash and carry depots are reaping the rewards of a sustained drive by Kepak Convenience Foods to highlight the profits that can be made in the £109 million* hot snacking market.

Jazz commented: “Kepak helped me to re-merchandise the food to go area of the shop, helping to take it from a few basic products to a very popular, well-stocked fixture, offering customers a successful range of products.

Kepak’s Regional Account Managers have been working with depots to show the impact that stocking the correct range, improved product visibility and simple but effective POS can achieve.

“Giving customers the opportunity to heat the products in store boosted sales, as did the branded shelf trays which create an impactful display and help the products to stand out.”

Kepak is also urging depots to educate and advise retailers on how they can develop effective displays in their stores, to complement the wide-ranging work that Kepak does in this area. Kepak’s work with retailers is increasing demand significantly for hot snacking products, so depots are encouraged to supply the hot snacking products their customers want.

Staff have found it easy to work with the re-merchandised food to go fixture, introducing the new offering to customers and highlighting the free use of the microwave.

In order to improve visibility and availability, stores have been offered branded shelf trays and, where appropriate, a Kepak branded microwave so customers can enjoy a hot snack at the time of purchase.

Jazz added: “We also sell coffee, which works well alongside the hot snacking offer. Since working with Kepak, sales have gone through the roof and hot snacking products are now a big part of the business. I would definitely recommend it to other retailers.”

Jazz Singh, store manager at Morley News Food & Wine in Leeds, has worked closely with Kepak’s Regional Account Manager, Adam Nowakowski, sourcing products from his local cash and carry depot.

The project comes as Kepak continues to work with cash and carry depots on effective product merchandising, high impact point of sale, correct range stocking and appropriate space for new products.

Kepak is continuing to focus on best-selling lines such as Rustlers, Rustlers Hot Subs, Rustlers Hot Wraps and ZUGO’s Deli Café products.

Source *Nielsen Total Market w/e 3/9/11


Here, Kepak offers its advice on boosting sales of hot snacking products in depots:

1. AVAILABILITY Products must be readily available and clearly visible. One way of ensuring that retailers don’t miss out on this lucrative opportunity is to install a secondary chiller cabinet close to the checkout. This will encourage retailers to top up as they approach the checkout or to add more SKUs to other hot snacking products they may already have bought at the main fixture.

2. POINT OF SALE Ensuring that there is tailored point of sale throughout the depot will help to drive visibility and increase brand awareness. Here are a few tips to help:

• •

3. STOCKING THE RIGHT RANGE Kepak is working closely with cash and carry depots to offer retailers the optimum choice of hot snacking products. The focus is on presenting market-leading products such as Rustlers at their very best, especially the core range Quarter Pounder, BBQ Rib and Chicken Sandwich.

4. NEW PRODUCT DEVELOPMENT Profit-boosting new products, such as Rustlers Hot Subs and Rustlers Hot Wraps are playing their part, ensuring retailers have access to products which are attracting new consumers to hot snacking.

5. WORK WITH RETAILERS Work closely with Kepak and your retail customers to help drive sales at store level and you too will benefit from sales uplifts.

Placing shelf reserves on the fixture, on the bottom and back of the racking, can increase visibility and drive availability. The bottom reserve acts as a reminder to re-order stock. Place bus stops at the fixture to increase visibility. Bus stops can also be placed tactically around the depot as a trigger to remind retailers to pick up the UK’s favourite hot snacking products.

Kepak is also making pallet wraps available and is developing advice sheets for retailers to pick up at the fixture.

For further details please contact the Kepak team on 01772 688 300


Wine accompanies the food 3663’s winning of a five-year contract to supply food and drink to restaurant chain TGI Friday’s – valued at more than £30m a year (Cash & Carry Management: August) – has resulted in a a valuable spin-off for Vivas. The wine business is a joint venture between the foodservice wholesaler and

branches of TGI Friday’s, the range including five reds, five whites, two rosés and three sparkling styles. Tel: 3663 (0370) 3663 000.

north-west London wine shipper, Bibendum. Vivas becomes the exclusive wine supplier to all 49

Depot sweeps the board The Deeside branch of Woodward Foodservice, part of Brakes Group, took all three awards in the PritchItts Telesales Achiever of the Year competition. Debbie Cooper won first

prize of £1,000. The two runners-up were Ceri Bellis and Debbie’s daughter Nerisha, each winning a cheque for £250. Tel: Pritchitts 020-8290 7020.

Fresh food role SPAR Scotland wholesaler CJ Lang & Son has installed Jason MacLeod in the newlycreated role of fresh foods sales executive. He previously spent four years with the Dundee-based distributor as field sales executive, with responsibility for developing retail and wholesale sales in the Glasgow area. Tel: CJ Lang & Son (01382) 512000.

Community award for Brakes Brakes won the Unilever Community Award at the IGD Food Industry Awards 2011, the judges paying tribute to its working partnership with FareShare. The arrangement has seen the wholesaler donate over 80,000 meal equivalents a month to people in need while diverting over 324 tonnes of food waste away from landfill. Brakes was also a finalist in the Sustainable Distribution category for its ‘road to rail’ transport delivery initiative – the largest use of rail in the foodservice sector – by moving product between its central distribution centre and its Scottish depots and suppliers. Marketing director James


Armitage (pictured) said: “This achievement reflects the huge dedication of our supply chain teams at local

depot level across our UK network.” Tel: Brakes Group (0845) 606 9090.

Own-brand bacon DBC Foodservice has introduced a premium, split-pack bacon pack within the ‘dbc label’ range. The own brand was launched at the beginning of the year. The pack is divided into two smaller packs of either smoked or unsmoked bacon, enabling caterers to open one side at a time. It is available in a 2.27kg size through the company’s 12 depots. The bacon launch follows the appointment of Rob McFarlane as commercial director, meats. He also launched the new premium 100% British beef brand ‘Farmhouse Champion’ at the end of May. Tel: DBC Foodservice (01707) 323421.

New range rolled out by CRG On the basis that the bread and baked goods sector is forecast to grow by 21% by 2015, reaching a value of £5.9bn (Mintel January 2011), Country Range Group has introduced a new frozen selection. It includes a speciality dinner roll range, stonebaked ciabatta and ‘bar marked’ panini. Among the dinner roll styles are black olive & herb, ciabatta, malt & seeded, Mediterranean and onion & rosemary. Brand manager Martin Ward said: “The innovative rolls and breads help to add

• Cash & Carry Management • November 2011

Some of the new products from the foodservice group.

a touch of style and sophistication to all menus and can

be served either as accompaniments to light meals and starters, with cheese boards, or even as pre-dinner hors d’œuvre.” The rolls are available to caterers frozen and in cases of 10, with two packs of each flavour, each containing six rolls. Both the stonebaked ciabatta and ‘bar marked’ panini are made with extra virgin olive oil. The group has also introduced frozen slices with savoury fillings as well as suet puddings. Tel: Country Range Group (0845) 519 6181.



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in focus

No stone left unturned

‘We appreciate your support.’

Mervyn Gilbert was among a large gathering to hear Booker’s latest progress report. Not for nothing did Booker chief executive Charles Wilson choose Brighton as the location to announce the company’s latest set of trading figures and developments. “This is not necessarily our biggest and best branch, but Brighton is the most diverse market in the UK,” he told one of the largest gatherings of food trade journalists assembled at one event for years. The hierarchy were there in force, the only significant absentee being catering director Ron Hickey, who has taken a one-year sabbatical. His temporary replacement is Stuart Hyslop, a former regional director for East Anglia and the East Midlands. Two groups of scribes – one representing the retail trade, the other dealing with foodservice – were shown round the 100,000 sq ft branch, which is shortly to do battle with a new 80,000 sq ft Bestway nearby. But this was no leisurely stroll along the aisles. Progress was constantly interrupted – a well-planned exercise, this – as a different executive appeared at almost every juncture to ram home the Booker message.

Wholesale managing director Guy Farrant stops to answer a customer’s enquiry.


• Cash & Carry Management • November 2011

The tobacco display ban, pre-packed fruit & veg in price-marked packs, the growing Euroshopper value range, predicted to be worth £130 million this year, and the burgeoning Premier retail chain – whose Colm Johnson, director of number has reached 2,645 trading – retail, on the (probably more since this tobacco ban implications... was written) and now accounts for around 50% of Booker’s retail sales – all received the full treatment. The Brighton C&C is the first in the 172-unit chain to feature one of the company’s new acquisitions, Ritter Courivaud, which specialises in the quality segment of the food market Premier head Martin Swadling and will appeal to top on Premier... restaurants and retail shops on the south coast. It is also the first to include a bakery section highlighting the goods of Delice de France. Earlier in the day, Wilson had picked out some major pluses in the latest financial period, with Growing fruit & veg sales. wholesale md Guy Farrant, e-commerce director Jane Day and Booker Direct md Mark Aylwin presenting more detailed information. Farrant said that annual sales of fruit & veg were around £60m and that Booker had “the best fruit & veg display anywhere in the sector”. Referring to the C&C One of the two new acquisitions. (Classic Wines operator’s online sales – is the other.) targeted at £600m for next year – Day said prospective new customers can now register on their computer, while Aylwin said that excellent delivered results were not only being achieved by national accounts but also by individual businesses serviced through C&C branch distribution. After such an intense morning, I was anxious to pop into the gents to refresh myself for the long journey home. I half expected one of Wilson’s minions to confront me, extolling the virtues of Booker’s own-label toilet rolls – not your bog standard variety, of course!


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Lots on the menu Mervyn Gilbert reports from Kenilworth, Warks, on the Federation of Wholesale Distributors’ annual event for foodservice wholesalers. Healthier food, calorific values, value for money, service, accreditation and provenance – just some of the topics that came up for discussion at last month’s Catersummit conference organised by the Federation of Wholesale Distributors. Shame the attendance was only 63 for an event with a good cross-section of speakers! Dr Clair Baynton (right), deputy director, nutrition, science and delivery at the Department of Health, spoke about the Food Network, a small steering group comprising manufacturers, retailers, the hospitality sector and consumers, which examines healthier food choices, including the amount of salt and transfats, as well as calorie labelling. “Some 80 different food categories have been linked up to salt intake and this will lead to a 15% salt reduction in food by the end of the year,” she told delegates. “We have signed up 67 businesses for this initiative, while regarding the issue of transfats, 84 companies have agreed to co-operate. “Progress has also been made in terms of out-of-home calorie labelling, with 40 firms on board.” Dr Baynton, who said that the Ministry was also encouraging people to eat more fruit & veg, added: “Our aim is for a reduction of five billion calories a day to fight the nation’s obesity.” Clare Morris, marketing director of Sodexo UK & Ireland, told delegates: “Consumers now are very discerning. They want lots of information and are very digitally focused. “The priority is also to offer value, and by that I don’t mean cheap. We have a very clear code of conduct for our suppliers and we are also focusing heavily on energy and emissions.” Sodexo is also committed to the new legislation on gluten, said Morris, “and we rely heavily on manufacturers in this respect”. She also commented that “some consumers are moving away from fish eating because of the sustainability element”. And turning to labelling information, she said: “We found that about 49% of consumers check these details, whereas it was 60% last year. What we mustn’t do is bamboozle them with information.” After introducing the new branding for Creed Foodservice, where he is commercial director, Karl Goodwin (left) drew parallels between food described as local and British. “Yes, local food is fantastic – when it’s done well. But this has to


• Cash & Carry Management • November 2011

be taken into context,” he said. “We at Creed have found that its importance is declining. Local food is facing credibility issues, based on confusion. There is little consistency. “In the US in 2008, ‘local’ and ‘regionally’ were linked to food less than 400 miles from origin. That is an agreed definition. But what is it in the UK?” Goodwin called for more focus to be placed on British food, applauding efforts made by The Great British Food Revival on BBC2 and the British Food Fortnight. “Manufacturers need to leverage their focus more on British brands.” Representing the research side of the food industry were Tara Benjamin, client director of him!, and Roger Suddaby, sales manager of SalesOut. Benjamin commented: “What caterers want from wholesalers is a better range for their specific needs, an improved fresh range, more new products, new ideas for menus and a better online service. And 75% of caterers think that selling recognised brands improves the credibility of their outlet.” Suddaby said that SalesOut is developing the foodservice side of its business and that it is in discussion with Bidvest Logistics and Brakes. Its clients also include Makro and Landmark Wholesale. He claimed that foodservice “does not replicate the data accuracy of retail”, suggesting that researchers engaged in foodservice produce conflicting information. Suddaby promised: “We will be dealing with actual sales of the major delivered wholesalers and C&C groups and will include live data only – no estimates.” Craig Dillon, head of foodservice at the 10-year-old Food Link (born out of Milk Marque, which in turn was previously the Milk Marketing Board), said the organisation sources from 1,600 dairy farmers with a turnover of £600m. Of this, almost £100m derives from foodservice. Tom Gittins (below), Confex business development manager (foodservice), stressed that one of the group’s philosophies is ”treating each customer as an individual, which creates loyalty and leads to successful sales”. After telling delegates of Confex’s move into central distribution, with the support of 23 suppliers, Gittins commented on the success of its ESuper Save scheme. “Results have been impressive, with a 123% uplift in sales for some of our wholesalers. Our Budget Buster promotion also performed well.” Nicholas Weber, head of e-commerce at 3663, asked: “Why did foodservice come into e-commerce so late? Because we’re still traditional and offer a personal service. “People still like to speak to ‘Doreen’. They say it breaks up their day.”


catersummit Weber (below) added that there was still a “cost dimension to this and skill factor among employees, many of whom aren’t comfortable using computers. “So why now? Because you just can’t escape computers and things like smart i-phones and Facebook. This is all very much quicker than a phone call. And at 3663 it’s so easy to set up a basket online.” Weber said that an online product display “puts customers in the driving seat. They can even order at 1, 2 or 3 in the morning. You can access product details, nutritional information and dietary advice. But it’s also important that suppliers provide us with up-todate information.” Darren Goldney (right), sales director of Coca-Cola Enterprises, who said that cash & carry/wholesale accounts for 38% of CCE sales, commented: “It’s really important that we have a healthy and vibrant sector because wholesale partnerships are becoming more important to us.” He added that while suppliers have “a host of tools” to influence the retail side, in C&C/ wholesale it is much more difficult.

“Ambient & chilled drinks is the eighth largest category in the delivered channel, but at the present rate it could well be up to fifth.” Goldney drew a comparison between Mexico, where 24% of all meals are consumed with drinks, and the UK, where it is far lower, suggesting there is plenty of opportunity to increase this.

FWD activities Addressing Catersummit delegates, FWD chief executive James Bielby said the organisation has 18 member companies in C&C/wholesale (including groups) and 70 associates (suppliers). He also gave a resumé of the FWD’s wide-ranging functions, saying: “We try to be a conduit between members and the Government.” Recent discussions have centred on fuel prices, traffic congestion, roadworks, wages, recycling and crime, date labelling and food standards. There are also plans to initiate an apprenticeship scheme in the C&C/wholesale channel (see p.4).

FREE JOB ADS FOR C&C/WHOLESALERS Struggling to get the right candidate for your job vacancy? Reach every cash & carry and delivered wholesaler in the UK free of charge


Visit the website or contact Martin Lovell at mail.winlove@btconnect.com or 01342 712100


Cash & Carry Management

• November 2011 • 15

retailer awards

Pictured with Bestway Group chief executive Zameer Choudrey (left) and cash & carry managing director Younus Sheikh (right) are the overall winners of the Bestway retailer development awards, Manoj Patel and wife Minal, who run Manny’s News in Long Ditton, Surrey. Also seen is after-dinner entertainer Chris Addison.

Helping more than 3,000 improve Over 400 attended Bestway’s 10th annual retailer development awards event. In the 10 years that Bestway has been running its retailer development seminars, more than 3,000 independents have benefited from the advisory presentations, said group chief executive Zameer Choudrey, speaking at the annual awards event held at London’s Grosvenor House. “Over that period, we have recognised – and rewarded – the achievements of more than 200.” The number attending the courses will grow next year when the C&C operator inaugurates a Scottish seminar to add to those already held in the north and south of England. This was inevitable, given the growth of the company north of the border, where in the past year alone it has taken over Bellevue and Martex. Turnover of the cash & carry/wholesale business last year was up by 7.5% to £2.14 billion, Choudrey told guests. And with the new Brighton branch now open, to be followed shortly by one in Gateshead (full details on p.7), that figure is


• Cash & Carry Management • November 2011

expected to rise considerably. Winners of the top award were Manoj and Minal Patel, who trade as Manny’s News in Long Ditton, Surrey. They took home a cheque for £10,000. The rest of the winners were: Northern (Batleys) region: Bierley Superstore & Post Office, Bierley, Bradford. Southern (Bestway) region: Food & Wine Store, Islington, north London. Both received £3,000. Runners-up north: Four Seasons Superstore, Clubmoor, Liverpool, and south: Heath Hayes Post Office, Cannock, Staffs (both £2,000). Best-one symbol group: Zafar & Nusrat Mahmood, of Middlesbrough (£3,000). Runner-up: Alkesh Pankhania, of Sunbury-on-Thames, Middlesex (£2,000). Community award: Alkesh Gadher, of Best-one, Isleworth, Middlesex (£1,000). Category winners (all £1,000): Chilled & frozen: Pure Convenience, Manchester. General grocery: Ospringe Food & Wine, Faversham, Kent. Household, health & beauty: Ceiber Local, Mountain Ash, South Wales. Tobacco: Pure Convenience, Manchester. Confectionery: Much Hoole Village Shop, Preston, Lancs. Crisps & snacks: Ashton Stores, Luton, Beds. Soft drinks: Pallion News, Sunderland. Water: Post Office/Your Convenience Store, Sutton, Surrey. Wines & spirits: JJ Booze Express, Neath, Swansea. Beer & cider: Avenue Food & Wine, Sheerness, Kent. Petfood: Llanrumney Stores, Cardiff.

• • • • • • • • • • • • •


innovation & education

Set for productive planning Cash & carries and delivered wholesalers are invited to visit Diageo’s new facility in London. Diageo’s new Customer Collaboration Centre in Acton, London, is primed for the first visits from cash & carry and delivered wholesale customers. The facility, which utilises learnings gained from a smallerscale centre that piloted last year in Park Royal, is designed to provide inspiration as to how customers can drive growth of their alcohol category, using realistic trade settings and the latest virtual reality technology. Set across two levels in its own dedicated building, the centre is split into nine zones. These consists of a central workroom for meetings and presentations, ‘the cash & carry’, ‘the convenience store and street scene’, ‘the bar’, ‘at home’, ‘the supermarket’, ‘travel retail’, ‘the brand experience’ and ‘the café’, which highlights the distillation and brewing process, as well as the supplier’s sustainability vision. Diageo will tailor sessions specifically for each customer visiting the centre, using the interactive areas to facilitate discussions about applying the shopper trends and profiles to the environments that are most relevant.

Merchandising principles “The inclusion of both a convenience store and a cash & carry zone will enable wholesale customers to explore display and merchandising principles in depot as well as in store,” comments Roz Nash, senior category development manager, route to market & convenience, at Diageo. “The cash & carry zone recreates a depot environment and shows in situ proven growth drivers, including range display principles and standout visibility, a seasonal category display and permanent movable pallet units fully branded for

The cash & carry zone.


great standout of the latest must-have product.” Nash adds: “Moving into the convenience store zone, wholesale customers will also be able to consider the future category initiatives for their own customers including a fully merchandised demonstration of the ‘Focusing on Alcohol Sales Together (FAST)’ scheme that enables retailers to take on simple merchandising principles and kits aimed at helping them to grow their whole spirits category. Several thousand retailers have already implemented the initiatives displayed, and a number of pilot displays and ideas currently in development are also included.”

‘Truly unique’ Ed Cottrell, head of the Customer Collaboration Centre, remarked: “The centre is truly unique in its scale and provides the content required to meet customers’ needs, all presented in an engaging and inspirational space which lends itself perfectly to productive planning sessions. “The success of our customers’ businesses is an intrinsic part of the way we build our plans for the future and we know that the best way to help them achieve growth for their alcohol category is to develop collaborative plans.” Diageo claims to be the world’s leading premium drinks business, with brands such as Johnnie Walker, J&B, Smirnoff, Baileys, Captain Morgan and Guinness. Its products are sold in more than 180 countries worldwide. To arrange a meeting at the Customer Collaboration Centre, cash & carries and delivered wholesalers can contact their key account manager or the centre directly at cccteam@diageo.com. Tel: Diageo GB 020-8978 6000.

The convenience store setting.

Cash & Carry Management

• November 2011 • 17


Shifting standings


Although AG Barr remains top of the leader board for the Achievers ‘Best Overall Service’ award, there is a fair amount of movement among the other suppliers in contention for this prestigious title.


AUGUST score/position



SCORE (max. 40)


AG Barr





Coca-Cola Enterprises





Britvic Soft Drinks





Highland Spring










Kraft Foods










Whyte & Mackay





Imperial Tobacco





Nestlé 1st Choice





JTI (Gallaher)










C&C Group




















Red Bull




















AB InBev





Bacardi Brown-Forman




















Unilever Foodsolutions





United Biscuits





Molson Coors














• Cash & Carry Management • November 2011



Are extra marks deserved? Wholesalers in Scotland are asked to score each supplier based on its performance in October. OCTOBER PERFORMANCE

Deliveries including Admin Support (max. 15 points) write N/A if not direct

Supplier Contact (max. 15 points)

Packaging (max. 5 points)

Scottish Focus (max. 5 points)


AB InBev AG Barr Bacardi Brown-Forman Britvic Soft Drinks C&C Group

(inc Magners/Tennent’s)

Carlsberg Coca-Cola Enterprises Diageo GlaxoSmithKline Heineken


Heinz Highland Spring Imperial Tobacco JTI (Gallaher) Kellogg’s Kraft Foods


Mars Maxxium Molson Coors Nestlé 1st Choice



(inc Walkers)


(inc Foodservice)

Red Bull SHS Tata



(Golden Wonder)

Unilever Unilever Foodsolutions United Biscuits Whyte & Mackay

Company.................................................. Contact name.................................................. Fax to (01334) 479695


In-home makes headway ‘The most important meal of the day’ comes in all forms – not just the usual bacon and eggs. With at-home breakfastHamlyns has a numing said to be on the rise, ber of marketing initiabut the need for conventives planned for this ience greater than ever, autumn and winter, to the Bacon & Egg All Day ensure a high profile for Breakfast Toast Me! from the product during the Tillman’s UK is claimed peak winter sales period. to be ‘perfectly posiThere are also several tioned to appeal to timetailormade trade promopoor consumers who still tions scheduled. want a hot, tasty meal to The two newest prodkick start their day’. ucts in the range – A further six styles Scottish Porridge Oats & were launched on the UK Bran and Scottish market in the spring, of Pinhead Oatmeal packed which the Cheese & Ham in a reusable 500g tin – is selling particularly have more than doubled well, says director Jon their sterling distribution Gymer. to 42% in the last few Alternative to the conventional ‘full English’ breakfast. The range achieved months. retail sales of £3.3m (source: Kantar/Tillman’s) in the six Being unveiled this month is Hamlyns Scottish Porridge months following launch and £8m is being targeted for the Oats 750g, as part of a VisitScotland promotion which takes full year. in some of Scotland’s leading consumer brands. The Bacon & Egg All Day Breakfast Toast Me! was created The short break prize features accommodation in a luxury by the company’s German parent to tap into the UK breaklodge, a range of activities including a ride on the Nevis fast market. Range gondola, a loch cruise and a photography safari, plus Since going on-shelf last year, the brand has made good spending money. Competition packs are available in all trade progress into both convenience and multiple outlets, as well sectors from November to February. as in C&C/wholesale. The company has also announced a new partnership with Gymer says: “Consumer response has been outstanding. Scottish Slimmers, which sees Hamlyns as the exclusive We felt that there was a real gap to fill for those people who sponsor of the organisation’s life membership book for those want a hot breakfast, but rarely have the time to rustle up a who reach their target weight. full English before work or school. It also fulfils a unique In another development, Hamlyns recently launched a frozen snack opportunity for all-day breakfast consumption. new website (www.hamlynsoats.co.uk). “It is interesting that eating breakfast at home has become It features product information, an events calendar, a more popular again thanks to the economic climate.” range of recipes and details of the health benefits of oats. In a golden breadcrumb coating, the Bacon & Egg product Customers can also download recipe cards from the Nick is created from 100% back bacon and can be heated to readiNairn Cook School and discover formulas for home-made ness from frozen in a single toasting on the highest setting. beauty treatments using oats and oatmeal. Tillman’s Toast Me! was launched in the UK using national Managing director Alan Meikle says: “We’ve spent the last tv advertising and a sampling ‘snack wagon’ that toured the few months setting up a range of promotions which will give UK. The range also includes the Toast Me! Beef Burger. us a high profile across a wide range of target consumer groups over the winter months. This should pay dividends in terms of increased sales.”

Stirring news!

Hamlyns of Scotland Scottish Oatmeal, long established as Scotland’s brand leader in oatmeal, was used by the newlycrowned world porridge making champion, John Boa from Edinburgh, in his winning recipe. In fact, three of the five finalists used Hamlyns Scottish Oatmeal or Pinhead Oatmeal in their recipes. The supplier will be working with Boa at a number of trade and consumer events over the coming year, starting with the BBC Good Food Show in Glasgow.


• Cash & Carry Management • November 2011

Spreads leader Nutella hazelnut spread claims to have overtaken Marmite as the UK’s No.1 spread. For the first time, the 400g sku of Nutella has become the market leader in value, ahead of previous incumbent Marmite 250g. Ferrero UK sales director sales director Jason Sutherland says the hazelnut spread is selling 11.2m units a year.



on e li g il ck a M pa 0 ort £1upp

The No1spread is leaving its competition behind! 1

• nutella 400g is now the biggest selling Spread sku , even bigger than Marmite 250g 1

• Unit sales are also growing at over 18% year-on-year – twice as fast as any jam or marmalade! 2

• Don’t miss out on this fantastic opportunity - stock the No.1 Spread sku (400g) now! 1

• nutella is available in a range of formats: 200g, 400g, 750g, 30g and 15g

1. Nielsen, Value Sales, Total Coverage Total Spreads 52 w/e 24 Sept 2011 2. Nielsen, Unit Sales, Total Coverage, Total Spreads, 52 w/e 24 Sept 2011

breakfast Nutella also continues to be the Brand manager Hannah Blackburn leading spread in volume terms, growsays: “The porridge is packed with ing at 18% year on year and selling 4.3 creamy rolled oats, Alpen wheat flakes, million units more than the No.2 sku in raisins and nuts, along with real fruit the sector. pieces, giving the porridge added taste The product is benefiting from marand more texture than other porridges keting support, including television and on the market.” press advertising, PR, sampling and She continues: “As consumers are online activity. This has led to the brand looking to snack less and reduce achieving annual sales of £28m – up unnecessary purchases, ‘hot’ is one of 22.2% year on year. the fastest growing sectors for base Sutherland comments: “Our ‘Wake sales of cereals, growing at 18% MAT up to Nutella’ approach and support (Nielsen). campaign has remained consistent this “Porridge eaters we spoke to said year, with a focus on educating shopthat they felt most of the porridges pers that Nutella is not a chocolate currently on offer tend to be fairly plain spread but a hazelnut spread, and that or are created using flavourings rather its role is at breakfast. than inclusions and don’t offer all that “In store has been another area of much difference in taste. focus for us and we have been working “The sector seemed to be crying Hazelnut – not chocolate! hard to increase the product’s visibility. out for something new, which is why “This has been achieved by securing a fair share of space we’ve developed the new range to deliver a uniquely creamy on the fixture, displaying the brand’s full product range on and textural taste experience.” the shelf and maximising off-shelf displays at promotional The key ingredients of the new porridge range are rolled times, such as Pancake Day. oats, flakes, milk powder, raisins and nuts, together with “The continued support and communication has driven raspberry, apple and mixed berry fruit pieces, depending on its success and now puts Nutella 400g as the nation’s the flavour. favourite sku in spreads.” Packs come in an 8 x 40g outer size. They have been availAll data Nielsen value sales total coverage all spreads year to 24/9/11. able at a reduced price of between £2 and £2.59 to encourage trial. A television commercial will be screened in January.

Chocolate chips

Weetabix Chocolate Spoonsize (rsp £2.59) is the latest innovation from the breakfast cereals supplier. The crispy, chocolate, spoon-sized cereal is ‘cram-packed’ with chocolate chips. The product is claimed to have half the sugar content of the average chocolate flavoured breakfast cereal, is high in fibre, low in salt and fortified with vitamins and iron. Spoonsize was supported by a £2m tv drive targeted at mums and kids, and the campaign also included sponsorship (ending last month) of Nickelodeon TV Breakfast Time. There was also promotional backing in store with an introductory £2 launch price deal. Weetabix Chocolate, valued at £8 million (Nielsen), has strongly contributed to the One of the newcomers in the Weetabix Alpen range. growth of ‘healthier chocolate cereals’. The supplier has extended its Alpen brand with the introduction of a new porridge range to join the existing muesli and bar offering. Ferrero UK (01923) 690300 Designed to appeal to adults looking for added taste and Hamlyn’s of Scotland (JFK Partnership) (01343) 541496 texture in their porridge choice, the product is available in Tillman’s UK (01227) 831155 three variants: Fruit & Nut, Raspberry, Apple & Raisin and Weetabix (01536) 722181 Blueberry, Cranberry & Nuts.

For further information:


• Cash & Carry Management • November 2011


The World Porridge Making Championships Carrbridge e brand ofThch oice

sponsored by Hamlyns of Scotland

John B World Porrid oa ge M


Champion 2 aking 011

For all Sales Enquiries please contact:

T H E J F K PA R T N E R S H I P L I M I T E D 2 N e w t o n P l a c e , E l g i n I V 3 0 6 A Z . Te l : 0 1 3 4 3 5 4 1 4 9 6 F a x : 0 1 3 4 3 5 4 8 5 6 6 e - m a i l : s a l e s @ j f k p a r t n e r s h i p . c o m

Scottish Oat Products Grown and Milled in Scotland


Miniature in name only The UK cigar market is valued at £297m (Nielsen MarketTrack 2010), with miniatures increasing their share of the C&C/wholesale channel, where they account for 54% of volume sales. Around one-third of total cigar volume comes through the convenience sector. JTI claims that its cigar brands – Hamlet, Calisto and King Six – account for 46.3% of the cash & carry/wholesale market volume. Head of communications Jeremy Blackburn says: “Independent retail outlets overtrade versus the total market when it comes to miniatures, with these cigars accounting for 61% of all category sales through small stores. “JTI cigar brands represent 34.8% volume of the trade.” He adds that Hamlet alone has a 33.1% share of the total market. “It has been at the top of the cigar trade for over 36 years and is the only brand which offers cigars in both the large and miniature formats. Last year the brand generated over £110m in retail sales.” The range includes 5s, Miniature 10s and Smooth 10s. JTI’s newcomer in the miniature segment is Calisto. Says Blackburn: “It is designed to tap into the growing demand for micro-sized cigars, which provide increased convenience for adult cigar smokers.” Each Calisto tin (rsp £3.54, outers of five) contains 10 cigars, with a blend sourced from Brazil, Java and Cuba. Through independent and symbol stores, miniature 10s have a 55.7% share – a percentage that is growing. A survey conducted in June on behalf of the tobacco manufacturer found that the UK is moving away from the traditional stereotype of older male smokers, with more than half saying that 30-50 years is the typical age profile for cigar customers in their store.

Hamlet has a 33.1% share of the total market.

This age range provides an even higher proportion in both Scotland (75%) and London (67%). Another statistic is that more than 25% of retailers noticed that adult cigarette purchasers also bought cigars – a trend most prevalent in the north-east, where more than half of purchasers fitted this description. Blackburn says: “We know cigars are lucrative but, as our research indicates, retailers are not fully aware of the extra profits that can be reaped during the summer, when a third of all cigars are bought. “By seeking the right brands and keeping up with category trends, retailers can ensure they don’t miss out on their share of the profits. “They should stock the most popular formats, such as miniatures, and cater for adult smokers’ growing demand for greater choice and convenience.” Blackburn also pointed to the fact that JTI has a dedicated 220-strong sales force, members of whom are “always on hand to offer advice on how to make the most of the cigar market, ensuring retailers remain as profitable as possible”. All data Nielsen MarketTrack except where shown.

Sizeable following

The most recent addition to the JTI range.


• Cash & Carry Management • November 2011

According to Iain Watkins, UK communications manager for Imperial Tobacco, despite the proposed restriction on tobacco retailing, there are still 400,000 UK adults who smoke cigars. He says: “The mainstream market is clearly divided into three sectors according to size – miniature, small and large. In the total market, miniatures now account for 61%, with small making up around 36% and large 3%.” Watkins claims that UK smokers spend about £80m a year on Imperial’s cigar range, which includes such brands as Classic, Panama, Castella Panatellas, King Edward Coronets and King Edward Crowns. “These are important British brands which have a long history of contributing greatly to retailers’ turnover


Bigger than you think Café Crème Grande is our first Small, or Panatella, cigar. Its launch is the pinnacle of a vast amount of research into what your customers want. The trend towards smooth cigars and the fact that there is nothing as smooth in the Small cigar sector was the starting point. The end product is a small cigar that’s set to make a big difference.




cigars figures and they are consistently returning successful market performances. “Over the year, Classic has maintained its 25% share within the small cigar sector and, along with Panama and King Edward Coronets, Imperial Tobacco brands account for nearly 40% of all small cigar sales. “In the large segment, sales of Castella Panatellas remain strong, with a market share of just under 20%.” Watkins says cigars provide a considerable opportunity because they offer better margins than cigarettes. The company, he adds, is committed to working with C&C/wholesalers, and its field salesmen are only too willing to offer those in the distributive trade their expertise when reviewing the cigar category, or any other element of the tobacco business. Watkins also has some strong words to say about the smoking restrictions in pubs, restaurants and the workplace. “Since the implementation of these restrictions, adult smokers are increasingly stigmatised and have fewer options for locations in which they can enjoy a cigar. “A nice meal out can no longer be concluded with a brandy and cigar, while large cigar brands are not One of Imperial’s leading brands. deemed an everyday smoke any more because smokers prefer to enjoy them in a relaxed environment where they do not have to rush.” Watkins adds: “Miniatures are increasing their share of sales as they can be smoked in the same time as a cigarette outside a pub or working environment. However, adults can still enjoy a cigar at home providing the opportunity to reward themselves with an affordable luxury.”

New miniature The Scandinavian Tobacco Group UK has launched Moments, a new range of miniature cigars in the value-formoney segment. The roll-out, which includes the cash & carry channel, follows successful trials in grocery outlets. The newcomer (rsp £3.10) is available in two variants – Moments Blue and Original – and comes in a distinctive crush-proof tin of 10 cigars (10 x 10 outers). Trade marketing manager Alastair Williams says: “While the recession has made consumers evaluate what value for money really represents in some fmcg categories and can alter their purchasing decisions accordingly, until recently the trend had not fully established itself in cigars. “However, we have realised that the market has moved on


• Cash & Carry Management • November 2011

One of the two new varieties.

and a value-for-money segment has clearly developed in the category in the past few months.” STG, one of the largest tobacco companies in the world, is represented in more than 115 countries. It is best known in the UK for the Café Crème and Henri Wintermans range of cigars. However, it claims to be the world’s largest player in pipe tobacco as well as Europe’s largest – and the world’s third largest – cigar supplier. In the UK, Café Crème is worth over £67m in annual sales, with more than one in every three miniatures sold being a Café Creme Blue. It claims miniature brand leadership with 63%. Says Williams: “Miniature cigars continue to drive growth in the total market, with sales currently increasing by 3%. Much of that is due to the continued success of Café Crème and other imported cigars.” The latest variant is Café Crème Grande, a range of small cigars that Williams says “will shake up the smalls segment”. He adds that it is “the first major piece of innovation in the size segment in years”. Available to C&C/wholesalers with an rsp of £4.24, it comes in a distinctive blue crush-proof tin of five cigars. The Henri Wintermans range is ‘for those adult smokers who want to upgrade from miniatures to discover a real cigar taste and experience’. The selection is available in Miniatures, Royales, Slims, Half Coronas and Corona de Luxe. Williams says that Henri Wintermans Half Corona continues to be the top-selling brand in the medium/large segment, with a 50% market share. He adds: “While the UK cigar market is declining by around 5% annually, sales of our brands, such as the Half Corona, continue to grow.”

For further information: Imperial Tobacco (0117) 963 6636 JTI (0800) 163503 Scandinavian Tobacco Group UK 020-8731 3400


MAXIMISING THE 2012 OLYMPIC OPPORTUNITY: ARE YOU READY? A rare opportunity to hear Darren Tse (right) of the Olympics Organising Committee and Pradip Dhamecha (far right) of Dhamecha Foods talk about the business benefits and challenges surrounding the 2012 Olympics. This will be followed by a Q&A session open to all guests.

Exclusive Lunch 2 December 2011 Dorney Lake, Windsor Rowing venue for 2012 Olympics

AGENDA 11:30 Pre-lunch drinks in the Lake View Room 12:00 Pradip Dhamecha, chief executive, Dhamecha Foods

Venue for the exclusive AWARDS lunch.

12:15 Terry Hunter, head rowing coach and father of world rowing champion Mark Hunter MBE 12:25 Darren Tse, London Organising Committee, 2012 Olympic and Paralympic Games (LOCOG) 12:40 Q&A 12:50 Cash & Carry Management AWARDS winners and research findings 13:00 Lunch in the Lake View Room

Pictured at Dorney Lake: head rowing coach Terry Hunter (centre) with Mark Hunter (right) and Zac Purchase, who together won the men’s lightweight double sculls in the 2008 Olympics.

To book your place, phone 01342 712100 or email mail.winlove@btconnect.com For further information on the AWARDS, visit www.cashandcarrymanagement.co.uk

snacks update

Bigger and better A look at some of the activity going on in the world of snacks. United Biscuits UK has relaunched The KP Nuts brand is currently its Skips and Nik Naks brands. Both worth £46m and is growing by 11%. All data AC Nielsen MAT w/e 16/7/11. feature distinctive new packaging Procter & Gamble’s Pringles, and include new flavours. which claims to be the UK’s leading For Nik Naks, the size of the indilarge sharing snacks brand within vidual snacks has been increased, the £2.1bn UK crisps & snacks sector and Scampi ‘n’ Lemon flavour, which (MAP monthly share value June comes in multipacks of six, replaces 2011), is hoping to boost category Pickled Onion. sales further with the introduction of The 30g handy packs are pricea range of ‘Big Sharing’ packs. marked as UBUK continues to The launch, which sees the entire extend its portfolio of packs in this range of current 165g cans increase format. to 190g and each labelled with the UBUK has also redesigned the ‘Big Sharing Pack’ message, has Skips packaging to boost its shelf been supported by tv advertising, as presence, which highlights the well as a range of bold point-of-sale ‘tongue tingly’ taste and the fact that material. each pack contains just 83 calories. To celebrate the festive season, And following on from research Pringles has launched a limited-edishowing that consumers would buy tion can artwork across its Original, Sour Cream & Onion, Skips more often if they were available in different flavours, Salt & Vinegar and Cheese & Onion skus, plus two new the supplier has introduced a Sizzling Salt & Vinegar variant. flavours: Christmas Turkey and Sausage & Crispy Bacon. The new style comes in a six-pack, with an rsp of £2.05. Sian Davies, Pringles assistant George Johnston, marketing direcbrand manager at Procter & Gamble, tor of bagged snacks, says: “Nik Naks says: “Pringles is served and conand Skips have delivered over £30m sumed by 42% of UK households at worth of sales to retailers in the last Christmas. And with 40% of the year and the new pack designs will brand’s annual sales made around this help to grow their sales further.” time of year (Kantar Worldpanel), it is He adds: “Consumers have been actually the only crisps and snacks campaigning passionately on social brand to see a value share peak during networks for new flavours and news from these brands, and we’re delighted George Johnston, marketing the festive period, so it represents a great opportunity for increased snacks to be able to respond to this demand. Price-marked packs are increasingly a director, bagged snacks, UBUK sales and profits. “We’re incredibly excited to be key sales tool for retailers as conlaunching delicious new flavours and packaging this sumers continue to feel that they offer better value for Christmas, when gatherings with friends and families are money.” most popular and hosts look to treat guests with the best The supplier has also unveiled a new ‘display solution’ for quality food and drink, as well as new variations of their its KP Nuts brand. The multi-strip range is designed to create favourite snack. additional space in store, increase visibility and help drive “Ahead of the festive season we are also launching our cross-category link sales. new, bigger pack size across all flavours, giving consumers The format comes ready to display in a card of three strips even more Pringles to share with every pack, and a strong tv that can be broken into individual strips of six packs. The presence for the brand all the way until 31 December.” range is available in £1 price-marked packs in Original Salted In addition to television commercials, the snacks brand is 80g, Dry Roasted 70g, Jumbo Spicy Chilli 70g and Jumbo being supported by press and online advertising from this Salt & Vinegar 70g variants. month. Says Johnston: “We have made sure that the new KP multi-strip packs can be broken down and sited at several locations in store, as our research has told us that if shoppers see nuts more often, they buy them more often. “This presents retailers with a great opportunity to generProcter & Gamble (0800) 597 3388. ate extra impulse sales by positioning the nuts strip near United Biscuits UK 020-8324 5000. complementary categories, like alcohol and sandwiches.”

‘Price-marked packs are increasingly a key sales tool for retailers as consumers feel they offer better value for money’

For further information:


• Cash & Carry Management • November 2011


速 Registered Trade Mark of United Biscuits (UK) Limited.


United Biscuits has replaced the standard KP nuts cartons with an innovative strip display solution. The triple units can be split into individual strips for display at multiple sites in-store. If shoppers see nuts more often, they buy nuts more often.


Independent Biscuits and Snacks category advice to boost your sales


• +120% growth in the UK Off Trade* • £2.5m Marketing Campaign driving footfall to Off Trade stores - Targeting 5m 16-24yr old gamers, the primary consumers of energy drinks - Exclusive & Iconic Batman Video Game On Pack Promotion - Interactive Off Trade Batman Tour - Exclusive Off Trade POS to drive sales the

prefer 2/3 of consumers leader† rket to the ma taste of Kick

Interacting with 2m 16-24yr olds at key ga ming & gadget events

stocked across the off trade including


GROWING FAST Stock up with the savio ur of energy drinks and order limited edition Batman Kick Energy no w!

Call 01246 216 000

Search Kick Energy Guinness World Record

VIDEO GAME OUT NOW! Follow us on Facebook & Twitter www.kickenergy.co.uk/BATMANarkhamcity

* Ex Global Brands sales MAT Jun 2011 † Canterbury & Co Consumer Research

energy drinks

Cola, watch out! Energy drinks is the second largest soft drink segment behind cola. It is worth £709.2 million and is growing at 18.4% year on year (Nielsen total coverage MAT 7.5.11). With plenty of driving to be done over Christmas to visit family, entertaining at home and constant shopping, the festive period provides a major opportunity for the trade to maximise sales of soft drinks – particularly energy drinks. So says Tom Smith, Red Bull trade communications manager. He comments: “Soft drinks is one of only five categories not to decrease in penetration last year, which indicates its importance to shoppers. With this is mind, the trade needs to ensure it is giving soft drinks the space they deserve in both take-home and impulse environments.” Smith adds that trading up is set to continue. “Shoppers are willing to spend a bit more at Christmas, so the trade is advised to back top-selling lines and premium brands in order to maximise sales and drive profits. “Energy drinks have a huge part to play. As consumers are incredibly busy, they look to products to help them get the most from the day. Energy drinks are perfectly suited.” Smith, who reports that last December Red Bull sold 34 million cans, says: “As the No.1 functional energy brand, consumers trust Red Bull to deliver energy when they need it most. This can be said for the single can range in a variety of sizes for varying energy needs, as well as the new 330ml bottle, which is perfect for those on a long drive due to its resealable energy.” He adds: “The four-pack also performs well as a take-home option for consumers entertaining at home.” Data: Kantar World Panel.

10 years in existence Boost Drinks has been celebrating its 10th anniversary and, to mark this milestone and thank customers for their continued support, a raft of promotional activity has been taking place in the cash & carry/delivered wholesale trade throughout the year. Special activity has been running across the entire range and the supplier also launched an


inter-depot competition to create the best Boost display for the chance to win one of three cash prizes. Managing director Simon Gray says: “The growing trend for resealable bottle formats continues, and Boost’s one-litre and 500ml PET bottle formats remain an attractive option, as they offer great value and quality.” Through October and November, special promotions apply across 500ml PET bottles, and during the Christmas period (November to December) there are deals on the one-litre PET size. Both these resealable bottles are described by Gray as “an attractive option for the Christmas party season, as they can be enjoyed on their own as a soft drink, or as the perfect Christmas cocktail mixer.” Boost launches its Christmas above-the-line ad campaign this month. It promotes regular Energy, Energy Cola, Sugar-Free and the Sport & Active range and has been designed to drive brand awareness to, and increase customer affinity across, all media channels. The activity will be supported by a PR and digital drive, which uses various social media channels to engage with the supplier’s target audience.

Cola variant Lucozade, from GlaxoSmithKline, has introduced the first cola flavoured variant to its energy range. The newcomer appears in a ‘black edition’ bottle for a limited time. The latest addition to the Lucozade Energy range is expected to continue the brand’s “excellent track record of successful NPD”, says brand manager Matt McKie. Following the launch of an energy blackcurrant variety earlier this year, 60% of sales were incremental to the category after just 20 weeks (Kantar Worldpanel take home year to 11/7/11). McKie adds: “Lucozade is becoming renowned for launching category changing NPD, and Lucozade Energy Cola is set to strengthen this reputation. Consumers truly love cola, drinking 1.7bn litres last year alone (total coverage week ended 9/7/11).”

Cash & Carry Management

• November 2011 • 31

energy drinks Expanding range AG Barr’s latest entrant in its already broad range of energy drinks is Rockstar Xdurance, which incorporates electrolytes, caffeine and vitamin B and is ideal for consumers seeking an extra boost ahead of activity or exertion. “The ‘Big Can’ energy category is experiencing huge growth and is currently growing five times faster than the total soft drinks category,” says head of marketing Adrian Troy. “We aim to help retailers take advantage of this trend by offering a Rockstar variant for every occasion in the day. The brand already allows them to cater for a variety of occasions, including revitalisation, everyday invigoration and recovery. “Xdurance prepares consumers for what lies ahead – whether it’s a sporting event or mental activity such as work.” A lightly carbonated blueberry, pomegranate and acai flavoured drink, Rockstar Xdurance (trial rsp 99p) comes in a ‘high impact’ 500ml can. The brand has embarked on a multi-year sponsorship agreement with former MotoGP world champion, Jorge Lorenzo. The arrangement is being celebrated with a variety of special activities and promotions for both consumers and retailers. Consumers were given the chance to win a luxury trip to Valencia to see the last race of the season. The prize, which was for two people, included return flights, accommodation at a five-star hotel and VIP tickets. The promotion featured on cans of Rockstar Original, Punched Guava and Juiced. Since being launched in the UK in 2007, Rockstar has developed significantly. It is currently valued at £12.5m and is growing at 49%. All data Nielsen Scantrack.

Contributing to growth The portfolio of Coca-Cola Enterprises accounts for 30% of total energy drink growth in the UK. The range includes Powerade Energy, Relentless and Monster. Under the Relentless label, which is now worth £54.4m, are Origin, Inferno, Immortus, Devotion and the latest, Libertus, a sugar-free variant. Libertus has been developed to meet the need state for ‘mental renewal and recharging without sugar’ and to offer consumers more choice when shopping across the sector.


• Cash & Carry Management • November 2011

Monster – one of a range of energy drinks from Coca-Cola Enterprises.

Since its launch through C&C/wholesalers, over half a million cases of Libertus have been sold. Earlier this year, CCE launched sports and fitness drink Powerade into the energy sector. It was heralded as ‘the first soft drinks product positioned to provide dual energy’. The current energy offering in Britain consists mainly of stimulate energy drinks and revive energy drinks. Powerade’s dual energy proposition has established a third type: sustained performance energy. Its attributes are said to be fast absorbing glucose plus caffeine, to help deliver energy and focus; added b-vitamins; and a balanced blend of carbohydrates. The lightly sparkling drink comes in two sizes: 500ml and 375ml PET. Powerade Energy is available in two flavours – Sparkling Berry and Sparkling Orange – and contains 5% fruit juice, as well as natural flavours and no artificial colours. Head of energy Stuart Agates says: “Powerade Energy is the culmination of more than two years’ product research. “Nielsen estimates the category opportunity for ‘sustained energy’ drinks to be up to £500m. We are confident that with this great tasting and functional innovation from Powerade we can help the energy sector continue to build strong momentum as the No.1 driver of growth for the soft drinks category.” The launch was supported by a multi-million pound marketing campaign, including tv, outdoor and digital advertising as well as targeted sampling activity. The brand also invested in channel specific PoS material, including wobblers and ‘bus stops’ in cash & carries. Agates says that Monster is now the No.2 500ml canned energy drink in Britain, worth £39.3m in retail sales.



• Great taste, performance and profit margins • Available in a range of flavours and sizes • 1 litre bottle – great for parties

energy drinks Last year the brand introduced Monster Energy Shots in a 90ml pack size. The soft drinks sports side is worth £186m – up 14% last year. CCE trade communications manager Selena Taylor says Powerade has benefited from a number of product developments, such as the launch of Zero a year ago. It is claimed to be the first fitness drink to be free of sugar and calories and is the official fitness drink of Team GB. Early this year, a new and improved sports drink formula was unveiled – Powerade ION4, a still isotonic sports drink. “Powerade grew by 23.7% in the six months to the start of this year (Nielsen total coverage value),” Taylor adds.

Due to break £1bn barrier Commenting on the state of the category, Global Brands’ marketing director Simon Green says: “Energy drinks is one of the fastest growing sub-categories of the last 12 months, with a 19% increase in both volume and value. The total energy drinks market is set to break the £1bn mark by 2012.” The company’s big player in the sector is Kick Energy, whose off-trade sales were 21% up last year. “That makes it one of the most promising brands within our extensive portfolio,” Green adds. “Interestingly, within the soft drinks category, it is only sports & energy drinks that have grown their penetration within the market from 2007 to 2011. So, despite a tough economic climate, and the relatively high price point of energy drinks noted by consumers, sales have still flourished. There is every reason to believe it will continue to see robust growth over the next five years.” Green says that, to take advantage of what is a booming sector, C&C operators and independents should provide a range which appeals to primary energy drinks users, ie men between the ages of 18 and 40. “Consumers are buying energy drinks, but brand loyalty is being stretched, and over 50% of people will happily switch from the leading brand if there’s a better promotional deal or a value-for-money alternative. “Kick Energy is the alternative that offers added value, not only because of its superior taste profile and competitive price point, but because of the brand’s unique and relatively untapped marketing proposition, namely its links with gaming.” Green says that one of every two adults in the UK owns a gaming console, and, on average, they spend almost 13 hours a week playing video games. “Kick Energy’s on-pack promotions, with much anticipated games such as Duke Nukem Forever and Batman Arkham City, along with activity within the £2.5m marketing campaign, has earned Kick the strapline, ‘The UK’s fuel for gamers’.” Green continues: “Considering that 59% of UK adults drink energy drinks – most of whom drink them at home – and the combination of taste and energising properties attracts people to pay a premium for a product which is more expensive than standard soft drinks, this sub-category is clearly extremely important for sales.” Kick Energy recently launched the third of its gaming


• Cash & Carry Management • November 2011

No need for a Kick start now!

on-pack promotions, with Batman Arkham City. Some three million cans have entered the trade, giving consumers the chance to win ‘The Ultimate Hero Gadget Pack’, worth £2,500, or one of five PS3 Slim consoles with a copy of Batman Arkham City, one of five Sidekick Gadget Packs worth £100, or one of 100 Batman Arkham City t-shirts. Each can carries a QR code, which, when scanned with a smartphone QR application, will take the consumer directly to the campaign’s bespoke site to enter the competition. Kick Energy claims to be the first drink in the category to utilise QR technology on-pack in the UK. The campaign will reach around five million targeted consumers and gamers over the course of the promotion via inoutlet, online activation and event attendance. Green adds: “We’re also travelling the UK in the new Kick and Batman Nissan Nivarra and launching trade-specific point-of-sale material to raise awareness of the brand and its gaming associations at point of purchase.” Sources: GBL ex-factory sales MAT September 2011. Other insight gained via Energy Drinks Mintel Report.

For further information: AG Barr (01204) 664200 Boost Drinks (0113) 240 3666 Coca-Cola Enterprises (01895) 231313 GlaxoSmithKline 020-8047 5000 Global Brands (01246) 216000 Red Bull 020-7434 0100























And this means that to maximise profits, keep your cooler stocked with the top brands that drive growth, not those that just take up space. Make it work harder and your customers will thank you for it. category.marketing@uk.redbull.com



soft drinks

‘A massive sales opportunity’ Soft drink sales, both in the take-home and on-trade sectors, rose in 2009 (AC Nielsen). A 2% swing in take-home saw the figure reach £6.2bn, while in the on-trade there was a 3% increase to nearly £2.4bn. Cola again led the way, with total value up 4% to £1.35bn and volume ahead by 3% to 1.67bn litres. The nearest challenger was pure juice, although that category experienced a 4% decline both in value (to £1.16bn) and volume (1.1bn litres). Also attractively priced is the Barr family soft drinks range, with cola and lemonade two-litre price marked at 79p. The range is being backed by A1 posters and shelf wobblers. Troy recommends that retailers focus on flavours that are consumed most heavily at Christmas, such as lemonade and cola, sales of which rose by 59% and 29% respectively last year. He also advises the trade to stock up on Rubicon, the UK’s leading exotic soft drink brand, this Christmas. “Christmas is one of Rubicon’s largest peaks, with sales almost doubling as consumers trade up to enjoy brands that offer excellent flavour choices and value for money.” Seasonal marketing support includes AG Barr chief executive Roger White with some of the company’s products. heavy advertising on tv, festive-themed PoS material and a ‘2 for £2’ promotion on leading AG Barr is supporting its ‘must stock’ brands over the festive flavours of one-litre Tetrapacks, including mango, mango season with a range of initiatives. light, passion and guava. Data Nielsen Scantrack. “Christmas presents a massive sales opportunity in soft drinks,” says head of marketing Adrian Troy. “Our advice to retailers is clear: stock the leading brands your customers want, merchandise them effectively and you’ll enjoy a This month, Coca-Cola Enterprises is focusing on its three bumper Christmas. leading festive brands – Coca-Cola, Schweppes and “Soft drinks sales increase on average by 8% over the Appletiser. Christmas period versus non-Christmas weeks. However, the Coke is the major brand in fmcg, with sales exceeding strongest uplifts are seen within the carbonates category, £1bn (Top 100 brands 2010). Following the success of last which experiences twice the level of uplift at Christmas at Christmas’s fairy-lit truck tour across Britain, it will be visiting 16%.” more locations in its iconic trucks during November and Carbonate brands are a favourite at family gatherings and December. parties, Troy adds. Trade communications manager Selena Taylor says: “For “AG Barr brands deliver the profit opportunities that retailshoppers, Christmas often officially starts when the Cocaers seek at Christmas. This year will be no exception as our Cola ‘Holidays are Coming’ tv ad hits the screens. high-profile marketing support will drive shoppers to the “This year we have a multi-million pound above-the-line fixture.” marketing investment, including tv, digital and instore activThe supplier is backing Irn-Bru with a £2m television ity. We follow up with the ‘Snow Globe’ tv ad next month; it advertising campaign, which sees the iconic 60-second launched for the first time last year. snowman commercial on air for the sixth consecutive year, “The tv ads are being supported by 96-sheet outdoor complemented by radio ads and instore PoS material, includadvertising throughout November and December and digital ing snowman pillars and 6ft standees. activity through Coke Zone. There is also targeted shopper The snowman imagery appears on two-litre and 330ml communication and point-of-sale material for every channel, packs over Christmas. including grocery, impulse and cash & carry. Irn-Bru also features several new promotional packs at “Limited-edition Christmas packaging with Santa imagery this time, including a 99p one-litre bottle, 330ml six-pack for is available across the MyCoke range of Coke, diet Coke £1.99 and two-litre pack at £1.29.

Triple onslaught


• Cash & Carry Management • November 2011



23% INCREASE IN SALES FOR RETAILERS AT CHRISTMAS STOCK UP NOW - CALL 01204 664 295 * Source : Nielsen Volume Sales, Total IRN-BRU, 4 w/e 25/12/10 vs average of winter months


soft drinks and Coke Zero, in two-litre bottles, 330ml cans and “Mums will want to stock up on treats for the whole fammultipacks.” ily and our portfolio features the Vimto, Levi Roots, Sunkist Taylor says that Schweppes mixers and lemonade are an and Panda brands, which provide the trade with a solution ‘integral part’ of shoppers’ purchasing habits at this time of for carbonates, stills and cordials that cover consumers of all year, with 1.5m preferring to buy the brand at Christmas, ages.” contributing £4.5m to the overall spend on Schweppes Gibson adds that independent retailers need to pare (Kantar Worldpanel 2010). down their range to stock recognised and trusted brands that “This Christmas there is limited-edition themed packaging are in growth “such as Vimto and Sunkist”. across a range of Schweppes skus. Packs feature a festive Because Christmas and the new year is ‘occasion-based holly label and ribbon design with a ‘Mix in the Festive Spirit’ shopping’, retailers should maximise the opportunity for strapline, which also appears on PoS material in-store.” cross-selling by placing soft drinks alongside other party Appletiser, distributed by CCE, is products like crisps and snacks. offering consumers the chance to win He advises: “Keep a chilled offering dinner at Tiffany’s in New York through and use eye-catching point-of-sale an on-pack promotion. material to maximise profits from The activity, which launched at the shoppers. Retailers can download free start of this month and continues until PoS material from www.sunkist.co.uk next March, across 275ml and 750ml or request it to be sent by post via an bottles, 330ml cans and 6 x 330ml can automated link. Free ‘Seriously Mixed multipacks, features an iconic little Up Fruit’ material is also available to black dress silhouette. retailers on www.vimtotrade.co.uk. Bruce Scott, cross franchise Cross franchise controller Bruce “Retailers should also stock up on controller, CCE Scott says: “We feel this great promolarge skus of carbonates and dilutes for tion really resonates with our core tarsharing occasions like Christmas get audience. Appletiser sales peak over the festive season, parties, but they also need to think about creating space for so we have decided to reward the loyalty of our shoppers by single serve RTD skus that meet ‘on the go’ sales to support giving them the chance to win this once-in-a-lifetime prize. the impulse shopper. “Christmas is the high sales period of the year for adult “Vimto, Sunkist and Levi Roots are examples of brands special soft drinks, generating more than 28% of annual that can offer something for all occasions, including suitable category sales (Nielsen adult soft drinks four weeks to options for designated drivers. The two-litre skus cater for 25/12/10),” Scott reports. “Last year Appletiser attracted family gatherings and parties and can also be used as mix600,000 new shoppers into the category in the eight weeks ers, while single serves like the Vimto Still 500ml sportscap of Christmas, meaning that it is a must-stock for retailers bottle or Sunkist 300ml cans are good treats for kids and teens, looking to make the most of the Christmas occasion.” especially for grandparents buying for their grandchildren.” The promotion is being supported Commenting specifically on Vimto, by instore PoS material around the fesbrand manager Emma Hunt says that its tive season, as well as a Christmas ad broad range offers a choice for the campaign on key radio stations. whole family at Christmas time. Key points for the trade to remember: “Large bottles of cordial and carbonCreate maximum visibility in-store ate in Original and No Added Sugar help and in-depot with PoS material. mums to top up, and smaller skus, Consider secondary siting (retailers) including the 500ml Still sportscap botwhen merchandising stores in the leadtle, offer thirst-quenching treats.” up to Christmas. Hunt adds that, with carbonates By keeping fully stocked, retailers will remaining a popular choice throughout ensure they don’t miss out on lost sales. the party season, large PET bottles are Retailers should focus on heavy conperfect for this occasion. sumers to maintain sales and encourShe continues: “Vimto cordial is age occasional consumers with visibility growing at 7.4% year on year (Nielsen of product displays early in the season total coverage MAT 3/9/11). It is a versato encourage purchase. tile product to stock as it can go further than pre-mixed RTDs and offers families who are looking for ways of saving this Christmas a cost-effective solution. “As we approach the Christmas party “As more adults are socialising at season, retailers will need to stock prodhome, the cordial can also be a great ucts that shoppers will look for to pretasting addition to a punch or cocktails pare for family gatherings and parties,” for parties. The Fizzy Original Vimto or says Neil Gibson, head of marketing at Cherry Vimto range can also offer Vimto Soft Drinks. something a bit different.” Two of CCE’s leading brands.

‘Christmas is the high sales period of the year for adult soft drinks, generating more than 28% of annual sales’

• • • •

Family gatherings


• Cash & Carry Management • November 2011


holidays are

coming. Don’t forget the


soft drink brand* đ đ

Fantastic price marked packs for your customers, eye-catching Santa bottle design Iconic ‘Holidays are Coming’ and ‘Snowglobe’ TV commercials on air from November

Hunt says that the Vimto brand value now stands at £55.9m and that sales are growing at the rate of 5.7% year on year. A major marketing investment this year amounted to £6.5 million on the ‘Seriously Mixed Up Fruit’ multi-media campaign, which is claimed to have reached 95% of the country’s teenagers. “In support of the brand, we featured Cherry Vimto in the tv advertising for the first time and undertook targeted sampling with the aim of driving more trial.” Cherry Vimto includes a twolitre bottle of fizzy and a 725ml bottle of cordial. The supplier’s other brands are Sunkist, including a two-litre bottle in an orange style (outers of six) and 330ml cans of various flavours, and Panda, a kids’ range largely sold through the C&C channel. The still juice drink comes in orange, raspberry and blackcurrant flavours, in 24packs to sell as single 330ml bottles. Data Nielsen total coverage MAT 3/9/11.

*Nielsen MAT Performance - Total Category w/c 02.07.11. Coca-Cola, Coke, Diet Coke, Coke Zero and the design of the Coca-Cola Contour Bottle and the Dynamic Ribbon device are registered trade marks of The Coca-Cola Company.

Stock up now for the Christmas rush

New can size Britvic and PepsiCo UK have introduced the first 250ml range of multipack cans across Pepsi Max, Diet Pepsi and Pepsi. Next spring, 7UP Free and Tango will join them in this size. They are intended to give consumers more choice in can size for different soft drink occasions, as well as produce incremental sales for the trade. They join the existing 330ml, four, six and eight packs. The range is available in a variety of pack sizes, including 10, 12, 15, 18, 24, 30 and 36 cans. Noel Clarke, Britvic brand controller, says: “Carbonates have continued to grow over the past few years because they are constantly offering value to consumers. We are always looking for new ways to drive this growth and to understand what will meet consumer needs. “From our research we know that consumers buy based on the number of cans inside a multipack. The more in a pack, the more consumption occasions there are and the more cans there are to share.” Recent research has shown that sales of soft drinks cans were up 7.5% to 26.4bn in 2010 and introduction of the 250ml size is expected to increase the market. To drive sales of the new range, Britvic and PepsiCo are investing not only in grocery outlets, but also in C&Cs with pallet wraps and posters. Discount coupons are also available. To support the launch in the convenience channel, Britvic is taking samples of the new 250ml cans to stores and giving coupons redeemable against the new range to retailers that they can give to their customers.

ber m e m And Re S o me n I x To Mi

Clarke says that the Pepsi, 7UP and Tango brands are worth £393m in the take-home trade and accounted for 8% of total growth in the soft drinks market in the past 12 months. Last year Britvic and PepsiCo launched a 600ml PET format in their low and no sugar variants for some of the major brands, generating £8.5m in incremental sales in the first 12 weeks. Data Nielsen ScanTrack total coverage year to 6/8/11.

s W it h e l a Festive S

Tennis link extended Highland Spring, which claims to be the UK’s leading brand of bottled water and is the official water supplier to the Lawn Tennis Association, has extended its partnership with the governing body to become the new sponsor of LTA Mini Tennis. As part of the collaboration, the LTA Mini Tennis programme has been refreshed and updated and will specifically cater for youngsters aged between 3 and 10. In addition to the traditional red, orange and green stages, Highland Spring is supporting the new LTA Mini Tennis Rally Awards scheme and the entry level coach education scheme. The programme will include a national campaign encouraging players to ‘Earn Their Stripes’. This message will feature across a range of promotional and educational items produced by the LTA to help support clubs and coaches to deliver a more engaging mini tennis programme. The unveiling of the new partnership took place at Ravenscraig Regional Sports Centre near Glasgow, with tv personalities Gabby and Kenny Logan and AEGON GB Davis Cup players Colin Fleming and Ross Hutchins in attendance. Claire Wilson, head of sponsorship at Highland Spring, says: “We are proud to be cementing the great success of our partnership with the LTA. As the LTA pioneered mini tennis as a form of the sport, we too pioneered the kids bottled water market. We are committed to getting more children to adopt better hydration habits and take part in active sport and we have a terrific opportunity to do this with the mini You can’t get ‘em started too early! tennis programme.” The LTA’s head of commercial Lawrence Robertson adds: “Given its long-term support for tennis in Britain, Highland Spring was always our first choice to partner with as we looked to roll out the new programme. Its commitment to promoting the benefits of an active and healthy lifestyle to children and its reach into the homes of millions across the UK always made the company the perfect mini tennis partner for us.”

.1 Mixer Too* o N s ’ Britain


1.5 million shoppers prefer to only buy Schweppes at Christmas1


Over the festive season, mixer sales show 41% uplift.2 Schweppes accounts for more than half of this extra business

So stock up and put some big sales into the festive mix *Nielsen Total Coverage YTD volume and value sales w/e 2nd July 2011. 1. Kantar Worldpanel 2010. 2. Nielsen Total Coverage, values sales, 8 weeks to 25th December 2010. Schweppes, the Fountain Device and the 196 Graphics are registered trade marks of Atlantic Industries.

soft drinks

Hancocks is usually described as a confectionery C&C specialist, but soft drinks are a vital part of the package.

Glacéau vitaminwater, called ‘the original great tasting hydration from New York’, has been designated a worldwide partner and ‘best mate’ of the 2012 London Olympic Games, joining its associated brands within The Coca-Cola Co, Powerade and Coca-Cola. The brand is unveiling Jessie J as its ambassador for the Games. Philippa Classey, Glacéau business manager, told Cash & Carry Management: “She will bring to life the brand’s unique personality, colour and vibrancy with a multi-platform

campaign centred around the fun and cultural side of the Olympics.” Glacéau is challenging the public to create a new flavour on www.facebook.com/vitaminwater. The new limited-edition flavour will become the ninth flavour in the range and will be available across European markets. The brand also last month began an outdoor campaign showcasing the water’s official International Olympic Committee designation.

Bottled water event A two-day conference on the UK bottled water industry was held last week in Bath. The event included papers by Matt Wilson, commercial consulting director of Zenith International, who spoke about UK market developments, and his colleague Karen Wells, senior market consultant, whose theme was global market trends and innovation. Other speakers represented Coca-Cola HBC Ireland, Nestlé Waters, Princes Gate Spring Water, Highland Spring and Halewood International.

For further information: AG Barr (01204) 664295 Britvic/PepsiCo (0845) 758 1781 Coca-Cola Enterprises (01895) 231313 Highland Spring (01764) 660500 Vimto Soft Drinks (01925) 220122 Jessie J – set to do the honours for Glacéau vitaminwater.


• Cash & Carry Management • November 2011


2012 OLYMPICS: ARE YOU READY? A rare opportunity to hear Darren Tse of the Olympics Organising Committee and Pradip Dhamecha of Dhamecha Foods talk about the business benefits and challenges surrounding the 2012 Olympics. This will be followed by a Q&A session open to all guests. 2 December Dorney Lake, Windsor To book your place, phone 01342 712100 or email mail.winlove@btconnect.com



CALL US ON: 01204 664 295 *Source : Nielsen Scantrack, 2l Vol Sales, 4wk 25.12.10 vs 52 wk average, Groc Mults

christmas drinks

‘Strong and healthy C&C sector’ As the trade gears up for the Christmas drinks surge, research data shows that most categories increased sterling sales last year, a notable exception being beer/lager. Maxxium UK describes itself as ‘one of the country’s most dynamic and innovative spirits companies, passionate about creating quality mixed drinks’. Its strategy in the off-trade is driven by its core range of ‘brand leaders in key categories’: The Famous Grouse (said to be Scotland’s favourite blended Scotch), Courvoisier cognac, Jim Beam bourbon, Harveys Bristol Cream and Sourz, a fast-growing brand in the non-cream liqueur and speciality segment. Sales director off-trade David Everett says: “We continue to support a strong and healthy cash & carry sector. “We have substantially increased our investment again this year to ensure our customers can drive growth in what continues to be a very competitive market. “While we have strong brands, we also believe great relationships and better understanding of our customers’ needs are what makes the difference. These are all the more important in tough trading conditions.” Everett says Maxxium UK’s spirits are growing by 9% MAT and that its market share, 7.6% last year, is increasing. It is also expanding in the off-trade – up 14% MAT. Its market share in off-trade was 6.5% last year, but this is claimed to be growing, driven by sales of The Famous Grouse, Courvoisier (VS and VSOP) and Sourz (Nielsen and CGA Strategy MAT 11/9/11). Between September and January 2012, the supplier will have launched a revamped 70cl Teacher’s whisky £12.49

Alcohol take-home sales Value (£m)

Volume (million litres)

Still wine Spirits Beer/lager Cider/perry Sparkling wine Fortified wine Ready-to-drink

4,240 (+4.9%) 2,830 (+5.6%) 2,033 (-5.7%) 656 (+9.6%) 423 (+7.7%) 225 (+1.1%) 109 (-3.9%)

742 (-0.8%) 191 (-0.1%) 1,118 (-10.3%) 402 (+6%) 53 (+5.3%) 35 (-4.4%) 28 (-7.3%)


10,516 (-3.9%)

2,570 (-4.2%)

Kantar Worldpanel year to 10/7/11

price-marked pack and a new Sourz 35cl £5.99 price-marked pack (through Booker), both specially for the C&C and independent retail sector. Gift cartons are available for various brands, as well as free-standing display units for independent stores. Says Everett: “This Christmas will see The Black Grouse take a leading role in marketing activity for the Famous Grouse portfolio, which also includes The Snow Grouse and The Naked Grouse. There is also a new pre-mixed can, The Ginger Grouse (250ml, 6% abv).” The range is being supported by a tv campaign that starts in Scotland on 28 November and in the rest of the UK on 5 December. There are three new Courvoisier gift packs. Two feature the VS style – a 35cl bottle (rsp £12.53) with a branded silver hip flask, and a 70cl size (£22.53) with two rolling glasses. The third features a 70cl VSOP bottle (£30.13) with a glass decanter. Eileen Livingston, marketing controller for Courvoisier, which is claimed to have a 57% share in the off-trade (Nielsen/CGA), says: “Cognac’s share of total spirits rises from 1.9% to 2.4% during the Christmas season, so it is a critical period for us and our customers.” In collaboration with a leading gardening chain, Maxxium UK has been running a free seeds promotion across 350,000 bottles of Harveys Bristol Cream.

Vodka variant

With Christmas in mind.


• Cash & Carry Management • November 2011

Diageo GB is busily pushing sales of the latest entrant to its Smirnoff vodka range – Vanilla, currently available across the grocery and convenience channels. It joins the Lime, Green Apple and Blueberry variants. Senior innovation commercialisation manager Matt Partner says: “Innovation within the vodka category is key to driving excitement and recruiting new category shoppers. “Our Smirnoff flavours and premix offerings are the


stars of


HARVEYS • Harveys is the undisputed No 1 Sherry brand in the UK and is especially important at Christmas as consumers trade up to more premium Sherry - 2 in every 5 bottles of Sherry sold at Christmas is Harveys* • Last Christmas Harveys Bristol Cream massively outperformed the category, growing value by 10% to take a record share of 39%* • Maxxium UK is continuing to drive sales of Harveys Bristol Cream with the next stage of its Harveys Half Hour campaign as the exclusive Sherry sponsor of the first Ideal Home Show at Christmas

TEACHER’S • Teacher’s is a top 5 brand in the UK*** with over 1.3 million consumers** • 16% of all Blended Scotch drinkers in the UK choose Teacher’s** • Teachers was a top 10 spirits brand at Christmas last year and the fastest growing Blended Scotch (+15%)*

COURVOISIER • Courvoisier is the No.1 Cognac in the UK with 63% category share*** • Last Christmas Courvoisier VS grew value by 26% taking a record market share of over 50%* • Courvoisier has almost £1 million more drinkers than the nearest competitor**

THE FAMOUS GROUSE • The Famous Grouse was the No. 1 Blended Scotch whisky last Christmas with a value growth of £13 million more than any other spirits brand (+28%)* • The Famous Grouse attracts more drinkers (3.1 million) than any other whisky brand in the UK** • The Famous Grouse continues to grow and attract new consumers through innovation - The Black Grouse is a smoky but smooth blend and will be the main focus for this years £1 million National Christmas advertisement campaign. The Snow Grouse is the newest addition to the family and the first whisky to be designed served seriously chilled, straight from the freezer

Sources: *Nielsen Scantrack 12 weeks to 25.12.10, ** TGI 2011, *** Nielsen Aug 2011 MAT/CGA July 2011 MAT


SOURZ • Sourz is the No.1 Non-cream liqueur brand in GB total trade*** • Sourz added more volume to the Non-cream liqueur’s category last Christmas than any other brand, increasing sales by 47%* • Sourz Raspberry was launched this year supported with a seven figure campaign including National TV coverage and a media partnership with MTV and Capital Radio

christmas drinks perfect way of doing that, as we not only expand the consumer palate with the introduction of new tastes and serves, but also allow them to experience perfect versions of serves they already know and love in the comfort of their own homes.” Vanilla Smirnoff was last month supported by an outdoor ad campaign. This, together with the rest of the range, is also part of an instore activity programme. The brand claims to be the leading spirit not just in the UK but also in the world (Impact 2010 by volume). In the £50m rsp premix category (Nielsen MAT 9/7/11), Diageo has 12 representatives, including Gordon’s gin & Schweppes tonic and Pimm’s & lemonade. The drinks giant also recently launched Baileys Biscotti through the grocery and convenience channels, supported by a £2.5 million marketing campaign, with television and digital advertising in Great Britain and Ireland, instore and event sampling, PR, relationship marketing and point-of-sale material. Through a Facebook promotion, 200,000 5cl samples have been given away to encourage trial and purchase. Baileys Biscotti (in one-litre and 70cl formats) is a blend of Baileys Original Irish Cream and double baked Italian biscuits – in Italian called biscotti. Existing flavours are: Baileys with a Hint of Mint Chocolate, a Hint of Coffee, and, last year’s entrant, Hazelnut. Last year Baileys Original experienced value growth of 8%, adding £4.6m value to the spirits category (to £58m) and increasing its creams share to 67% (Nielsen ScanTrack 12 weeks to 25/12/10). Diageo has also launched a limited edition of Grand Marnier Cordon Rouge for Christmas gifting occasions.

Russian Standard, the leading premium Russian vodka brand in the UK (Nielsen/CGA), has, as reported last month, signed a distribution agreement with Whyte & Mackay to manage the spirit in the UK from the start of the new year. It will cease to be under the remit of First Drinks Brands at the end of this year.


• Cash & Carry Management • November 2011

Part of Diageo’s mass of PoS material.

The new ‘red ribbon’ design 70cl bottle is available in selected wholesalers and luxury retail outlets. Its introduction follows two previous limited-edition designs: ‘Irresistible’ and ‘Ruby’. The total orange liqueur category is enjoying 13.9% growth, with Grand Marnier growing ahead of the category at 14.2% (Nielsen MAT 6/8/11).

Kentucky bourbon From Hi-Spirits is Buffalo Trace, the flagship bourbon from Buffalo Trace Distillery. It is an 8-12 year old Kentucky straight bourbon whiskey (45% abv). Having aged for at least eight years, a maximum of 50 barrels are selected for each production batch. To ensure consistency and quality, each is tasted by the company’s master distiller and his team. Nick Masters, Hi-Spirits off-trade sales director, says: “The products we’re focusing on through C&C/wholesale (including Matthew Clark, Booker and Makro) this Christmas are, in addition to Buffalo Trace bourbon, the Antica Sambuca range, Benchmark bourbon, Fireball liqueur with cinnamon & whisky, the Volare range of cocktail liqueurs and Mexican spirit, Monte Alban Mezcal.” Antica is a leading seller through pub chains while Fireball has been building up listings in the same channel. The company has also signed a UK distribution deal Buffalo Trace bourbon for the Ron Abuelo rum range, from Hi-Spirits. produced in Panama.


christmas drinks ‘Wine leader’

Lighter range

Accolade Wines claims to be the leading wine producer in the UK, responsible for four of the top 10 brands in convenience: Hardys, Echo Falls, Stowells and Kumala. Both Echo Falls (up 18.9% year on year) and Hardys (21%) have made marked growth in this channel. European marketing director Clare Griffiths stresses that the trade should ensure they stock the top 10, which account for over a third of all wine sales in the convenience sector. “In the run-up to Christmas, we are delivering promotional deals on our top four brands through C&C outlets. Point-of-sale material is also available for convenience retailers to help drive sales of Accolade Wines’ top brands.” Griffiths tells the trade: “Be sure to include Echo Falls White Zinfandel, an approachable style of rosé popular with Newbies (new to wine consumers) all year round.” Hardys offers a range of popular wines at a variety of price points, with Hardys Crest Sparkling Chardonnay Pinot Noir described as ‘a great, affordable treat that delivers on style, taste and quality’. Recently launched Stowells Light, with a 5.5% abv, has 30% fewer calories than standard wine, while Kumala, from South Africa, features such styles as Shiraz Mourvedre and Eternal Red (‘great for making mulled wine’). A perennial favourite is Babycham, sales of both the 20cl and 75cl bottles peaking over the festive season. Bagin-box presentations (2.25-litre) are One of Accolade’s available for Echo Falls, Stowells and big four brands. Hardys, while the Accolade range also includes Stone’s alcoholic ginger beer, Ginger Joe. The UK alcoholic ginger beer category is currently worth £21.8m.

Reh Kendermann’s Black Tower, which claims to be the UK’s best-selling German wine brand, has launched a new lower alcohol range. ‘B’ by Black Tower White and ‘B’ by Black Tower Pink (5.5% abv) come in the iconic bottle shape of the brand and have an rsp of £4.99. Joint managing director Nik Schritz explains: “We are always seeking to produce innovative styles which our consumers are looking for and believe that this new range will provide a strong opportunity for them to further increase sales. “‘B’ by Black Tower is perfectly positioned to offer consumers what they want to enjoy – a lower alcohol wine with a fruity, aromatic full flavour from a top lifestyle brand that they know they can trust, without compromising on taste.”

Data Nielsen convenience four weeks to 06/08/11.

Advertising and sampling Percy Fox & Co’s Blossom Hill has been driving brand awareness and adding value to the category with a £1.5m press advertising campaign, nationwide sampling and instore and digital activity. All the ads carry the strapline ‘California Soul’, signifying the fact that the grapes are grown in the northern California sunshine. The ads also focus on the new Vineyard Collection and Winemakers Reserve single varietals. Sampling was conducted among more than 330,000 consumers through a partnership with Toni and Guy hair salons, Magic FM and The Good Housekeeping Institute. In cash & carry, the Vineyard Collection has been supported by unique promotional outers containing a scratchcard, with the chance for retailers to win one of five £1,000 cash prizes, as well as £2.50 off next purchase.


Importer and exporter PLB Group, which began importing wines 29 years ago, has also become an exporter to a number of key overseas markets. Today it represents several major brands and own-label varieties from around the world. Recent additions include McWilliam’s Sunstone shiraz and chardonnay (rsp £5.99) from an award-winning Australian winery; Barramundi, also from Australia, with red, white and rosé styles (£5.49); Bella Grove, ‘an Old World wine in a New World style’ (£4.59); and Castell Land Cava (£6.99). They will be joined shortly by Taranaki Peak, a New Zealand Sauvignon Blanc specially selected by PLB for the impulse sector (£6.99). Senior national account manager Nigel Milward previously spent 20 years with such companies as Magners and Constellation Wines. His primary responsibility is for the cash & carry channel, while Anna Young – his colleague in a corporate team of 80 people – looks after both the retail trade and the convenience sector.

Cash & Carry Management

• November 2011 • 47

christmas drinks Festive spirits up around 24%

For the festive period, and exclusive to the convenience sector, the drinks supplier is offering new PoS and limitedReflecting on consumer trends over the festive season, edition gift cartons for five of its most popular brands: Matthew Critchlow, director of sales, convenience, at Bacardi Bacardi, Jack Daniel’s, Bombay Sapphire, Martini and Brown-Forman Brands (BBFB), says: “People like to celeSouthern Comfort. brate, and Christmas is the key time for this! The gift boxes, created to help the impulse channel capi“Often, they let their hair down and drink something that talise on distress purchases, contain a 70cl bottle and retail is more indulgent than their traditional glass of wine or beer at the same rsp as a plain bottle. BBFB is also offering con– so spirits can be a popular choice.” venience retailers new display units for the gift packs. He adds that the total spirits market tends to see a sales Bacardi (the Braveheart spiced rum variant was launched rise of around 24% during the four-week Christmas period recently) is claimed to be the No.1 rum in the UK, with a against a similar time span during any value of more than £360m in the total other part of the year. market. Its Superior Rum, said to Critchlow comments: “Price-marked account for 68% of the white rum subpacks, such as the latest 35cl, 70cl and category, has been growing in the offone-litre skus of Bacardi Superior Rum trade by 9% in value and 10% in volor 75cl and 35cl bottles of Southern ume year on year. Comfort, offer retailers the chance to Critchlow says that Bacardi Gold is drive sales, as they play on the conachieving 17% growth in volume and sumer’s demand for value for money. 22% in value in the off-trade, while “Price-marked packs not only offer Bacardi & Cola premix is up 47% in Matthew Critchlow, director retailers highly visible spirit solutions, volume. of sales, convenience, BBFB but they also reassure consumers they The Jack Daniel’s brand, including are purchasing a guaranteed value Old No7, Gentleman Jack, Single option on a premium spirit brand and getting the best price. Barrel and premix, is worth £365m in the total UK market. It’s ideal for those looking to keep Christmas costs down. With 63% of the off-trade imported whiskey category, “Cocktail culture has exploded in the UK in recent years Jack Daniel’s Old No7 is forecast to deliver 16% value and consumers want to enjoy this experience at home with growth and 15% in volume, while Jack Daniel’s & Cola is up friends without the complication of lots of ingredients. by 32% year on year. Bacardi Originals, including Mojito and Cuba Libre, remove A £75m brand in the UK, Bombay Sapphire gin is deliverthis barrier to enjoyment, providing individual perfect serves ing growth of 21%. It is worth almost £24m in the off-trade. every time.” Southern Comfort is valued at nearly £115m in the UK, Over the past year, premix spirit and mixer cans have and both volume and value are up by 9%. increased in value terms by 69% in the impulse channel (AC Martini is a £55m UK brand, of which £22m goes through Nielsen MAT 14/5/11). the off-trade. It is also claimed to be the No.1 volume spirit BBFB’s premix range includes: Jack Daniel’s & Cola, Jack brand in Europe. Daniel’s & Ginger, Bacardi & Cola, Bacardi Zero Calorie Cola, BBFB’s Eristoff vodka, worth £55m in the UK, is said to be Bacardi Gold & Ginger Beer, Eristoff Vodka & Cola, Southern market leader in France, Spain, Austria, Portugal and Chile. All data AC Nielsen 9/7/11 unless shown. Comfort & Cola and Southern Comfort Lemonade & Lime.

‘Cocktail culture has exploded in the UK and consumers want to enjoy this experience at home with friends’

A few of the leading drinks in the wide-ranging Bacardi Brown-Forman Brands portfolio.


• Cash & Carry Management • November 2011


christmas drinks New Zealand entry Under the Lindeman’s New World wine brand, Treasury Wine Estates has introduced an addition to the Winemaker’s Discovery range – New Zealand Sauvignon Blanc (rsp £6.99). The wine is from grapes grown in the Wairau and Awatare Valleys. Senior brand manager Rebecca Haigh says: “Having successfully launched wines from both Chile and South Africa, we know that consumers trust the consistent Lindeman’s winemaking style to deliver high quality wines, whatever the country of origin. “With New Zealand Sauvignon Blanc becoming an increasingly popular choice for many consumers over the last year, this is the perfect time to introduce New Zealand to the Winemaker’s Discovery range.” New Zealand is one of the fastest-growing wine countries of origin in the UK, with value sales up 10.6% last year, equating to an increase of £28m. The growth has been driven almost exclusively by Sauvignon Blanc, the grape accounting for more than 84% of last year’s rise, adding £23.6m to the category. Makro is one of several C&C operators stocking the new varietal.

Redesigned cans

fixture in a ‘regular’ convenience store. The Carlsberg brand will be appearing on Sky TV across the festive season, with the ‘That Calls for a Carlsberg’ campaign. “Some of the biggest football games of the year are on tv over the Christmas holidays,” says Scott, “and watching the match with family and friends is a big part of the festive break. “Equally, the fact that Christmas falls on a Sunday, creating a four-day weekend, means there will be even more entertaining than ever taking place across the holidays. Our World Lager portfolio includes Staropramen, San Miguel and Tuborg.”

Autumn/winter campaign Peroni Nastro Azzurro beer from Miller Brands has launched an autumn/winter creative for its ‘Seasons’ ad campaign. It complements the brewer’s spring/summer ‘Italian Style’ drive. The beer has achieved a year-on-year sales growth of 17% in the off-trade and 21% in the ontrade, and the new autumn/winter activity, says director of trade marketing Laura Edwards, is expected to continue this expansion through the winter – a key time for world beer consumption. The cinema commercial was shot in fashion capital Milan and the picturesque village of Cortina d’Ampezzo in the Dolomites. Says Edwards: “The new creative celebrates the uniquely passionate and stylish approach that Italians have to enjoying this time of year. “World beer is one of the only beer categories in growth – up 13.6% in value – and Miller Brands continues to support retailers by offering brands like Peroni Nastro Azzurro to drive cash margin. The timely launch will ensure consumers continue to engage and enjoy the beer during the key world beer drinking occasions of Christmas and New Year.”

As part of Carlsberg UK’s continued investment in Tetley’s ale, the canned range has been given a new look, with redesigned cans. The restyle for Smooth Flow and Tetley’s Original features a more modern appeal and, along with a new Smooth Flow font in the on-trade, there is said to be a consistent look to the Tetley’s brand across all channels. Data Nielsen off-trade MAT to 6/8/11; CGA on-trade MAT to 11/6/11. The changes include a distinctive image of the iconic Huntsman, the symbol of the ale for more than 50 years. The refinements were supported with new idents shown each day on ITV4 during Tetley’s continued sponsorship of ‘Real Men’s TV’ shows. As part of its ‘Year of Chilled’ programme, the brewer is highlighting research which shows that consumers want chilled beer all the year round. David Scott, director of customer marketing, says: “Christmas/New Year is the height of the party season, and whether consumers are entertaining at home or visiting friends, they are buying beer to consume on the same day. “By keeping their chillers well stocked with cold beer, convenience retailers will increase sales and set the tills ringing a festive tune.” Carlsberg UK is investing more than £2.5m in the year-long initiative to drive chilled beer availability in the take-home channel, including modern chillers and The popularity of drinking beer at home while watching sport has instore fixtures. Its research shows that an instore not waned. chiller can attract four times the footfall of an ambient


Cash & Carry Management

• November 2011 • 49

christmas drinks Television support

A limited-edition gift tube has been launched by First Drinks Brands in the run-up to Christmas. Each contains one of four limited-edition prints of a piece of Norman ‘Sailor Jerry’ Collins artwork. Sailor Jerry is claimed to be the UK’s second largest golden rum brand (Nielsen 3/9/11). The golden rum category is valued at £46m – 21% of the total rum market.

Spirits value growing According to First Drinks Brands, which markets Glenfiddich and Grant’s Scotch, spirits value last year grew by 8% (£86m) across the off-trade. Key gains were made by golden rum, cognac, American whiskey and malt whisky, along with new flavoured vodkas. Traditional Christmas segments, including non-cream liqueurs such as Disaronno, Tia Maria and Cointreau, also enjoyed growth. Says a company spokesperson: “Gifting will continue to play a key role at Christmas. Retailers should ensure they stock up with smaller formats, such as 35cl and 50cl bottles. First Drinks offers these sizes in Grant’s Family Reserve, Three Barrels, Tia Maria, Disaronno and Cointreau. “In malt whisky throughout the year, nearly 50% of purchases are gifts, and this is even more so at Christmas, so it is vital retailers stock up on malt for the festive season.” The spokesperson also refers to the fact that last year 80% of shoppers who shopped in the first four weeks of Christmas returned to purchase again. “These are valuable shoppers who account for around 60% of total spirits spend.” The supplier is also offering Glenfiddich and Rémy Martin in premium packaging as ‘the perfect gift’. The spokesman comments: “Over the past two years Glenfiddich 3 x 5cl pack has grown into a top six selling malt pack and is a year-round listing in many stores. “This year, we have also launched the Grants 3 x 5cl at the £7/£8 price point. This gives shoppers the opportunity to purchase a gift containing three expressions of Grant’s whisky.”


• Cash & Carry Management • November 2011

As part of WKD’s 10-month advertising campaign this year, extensive tv support will keep the brand in consumers’ minds in the weeks leading up to Christmas. All packs will be on promotion this month and next to help stockists benefit over this key trading period. Seasonal point-of-sale kits are being made available. Debs Carter, marketing director for Beverage Brands, owner of WKD, says: “WKD has a 41% volume share of RTDs in impulse, making it nearly three times the size of its nearest competitor and the must-stock brand. The really big news in this autumn was new WKD Purple.” The success of of the newcomer resulted in the company making it a permanent fourth variant in the range. Says Carter says: “WKD Purple’s launch was aimed at delivering something innovative and exciting for consumers and to generate incremental sales for trade customers. It is on course to be a consumer favourite this Christmas. “Operators wanting to maximise their returns this Christmas will focus on supporting and displaying categoryleading brands as these are the ones that will be in greatest demand in the run-up to the festive period. “With a really great performance last Christmas, the RTD category looks set for another strong winter season. We are the No.1 brand in the category, with £30m worth of successful support throughout the year and a strong range of festive promotions.” All data Nielsen.

For further information: Accolade Wines (01483) 690000 Bacardi Brown-Forman Brands (01962) 762200 Beverage Brands (SHS Sales & Marketing) (01452) 378500 Carlsberg UK (0845) 7820 820 Diageo GB 020-8978 6000 First Drinks Brands (023) 8031 2000 Hi-Spirits (01932) 252 100 Maxxium UK (01786) 430 500 Miller Brands (01483) 264 118 PLB Group (01342) 318282 Reh Kendermann (01295) 261144 Treasury Wine Estates (07423) 433 320 Whyte & Mackay 0141-248 5771


products & promotions Trade website

New refill pack

KRAFT FOODS – Retailers are being offered advice on increasing sales though the manufacturer’s new trade website, www.deliciousdisplay.co.uk. It also contains the latest relevant industry news. As an incentive to visit the site, Kraft is offering £500 to one retailer to invest in his business. All shopkeepers who sign up to the website before 30 November will be entered in a prize draw, with one being chosen after this date to win the cash injection for his/her store. Tel: Kraft Foods (01242) 236100.

NESCAFÉ – The supplier has introduced a new 150g compact refill pack format to its hot beverage range. Made from a combination of aluminium foil and plastic film, the packs require less energy and water to produce, and take up less space in shopping bags. The refill container is also available in a 300g Gold Blend format. The hot beverage category continues to grow – by 3.7% to £1.55bn in the last 12 months. Nescafé claims No.1 position in the premium soluble coffee category.

Powerful message TETLEY – The tea brand’s high-profile marketing offensive has been taking place with another new ad featuring the Tea Folk in support of Tetley Extra Strong, sales of which stand at £4.3m, up 31% on a year ago (AC Nielsen). The new ad featured Sydney exercising at home, mistakenly hoping that his cup of Extra Strong would improve his muscles. The drive forms part of the brand’s ongoing strategy to use the Tea Folk to promote the smaller growth areas of tea, like Extra Strong and Redbush. The overall £9m marketing budget spans tv, press, poster and online ads. And from this month, The Tetley Tea Folk will gain a much higher presence in store, this time in support of Tetley decaf, with one million promotional packs of 80s and 60s carrying a unique code, giving drinkers the chance to win one of 10,000 PURE digital radios. Tel: Tetley GB (0800) 387227.

Single portion KEPAK CONVENIENCE FOODS – Newly-launched ZUGO’s Deli Café Pasta Pots are microwaveable, single portion 300g products that join the UK’s £109m hot snacking category (Nielsen ScanTrack). “We are constantly seeking new ideas to add more excitement to the market,” said marketing director John Armstrong. “The pasta pots are a convenient lunchtime alternative.” They come in two variants: Pasta Bolognese and Pasta Carbonara. Each is served in a microwave-ready pack complete with a fork. The rsp is £2.49. Tel: Kepak (01772) 688300.

‘Superior’ kebab DOUBLE A KEBAB – The Mansfieldbased concern has developed a precooked, sliced kebab that claims to rival the product served on a spit. In taste tests, including at the TQuality show in Leeds, the new Double A Instant was chosen as superior to the competition. Only ‘the best quality meats and the finest spices’ are used in the production, including New Zealand Lamb and Scottish beef. A secret spice blend is combined with Jalapeño chillies. Operations manager Martyn Hayward said: “Until now we have avoided the ‘kebab in a pot’ market as it didn’t really fit with our brand. The result is a product that will suit customers who are dissatisfied with their current pre-cooked product, as well as those who are yet to discover one.” The Double A Instant can be cooked from ambient or frozen using a microwave oven or grilled on a hotplate. The product is being sold to the end-user in 10lb/5kg boxes. Tel: Double A Kebab (01623) 422888.


All data IRI total grocery outlets.

Tel: Nestlé 020-8686 3333.

Record tv spend NEW COVENT GARDEN – Shortly after the purchase of the brand by Hain Celestial, the fresh soup supplier has launched its biggest-ever national tv campaign. The £2.5 million drive, which runs throughout this month, spearheads a £5 million brand initiative during the winter. Group marketing director Nigel Parrott said the tv advertising would “stir up people’s emotions about the fresh, wholesome values of New Covent Garden soup. “The size and scale of the campaign will enable us to reach more consumers than ever before and reinforce our position as the nation’s favourite fresh soup brand.” There is also a first-time on-pack promotion, giving consumers the opportunity to win a farm worth £500,000. Tel: New Covent Garden (0113) 248 0606.

Cash & Carry Management

• November 2011 • 51

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