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Landmark and Today’s benefit from closure of drinks group Castell Howell achieves 10% growth in C&C and deliveries Batleys extends foodservice operation to 17 locations Spotlight on United Wholesale Grocers boss Nabeel Ramzan


The business magazine for cash & carry/delivered wholesalers


Staging a comeback It’s easy to understand why the same speakers keep cropping up on the stage at trade conferences. The fact that he (occasionally she) is a top executive with a leading C&C/wholesaler is the giveaway. But that’s not the complete answer. There are some leaders who are great at their job and at discussing aspects of the business face to face with their opposite number. But ask them to address 200 or more delegates at a trade event and they look shell-shocked. Many years ago, at a Landmark conference, the md of one of the group’s members – an eloquent and personable man – was asked to get up on the rostrum and deliver a paper. His legs turned to jelly as soon as he mounted the stage and his words were soft and indistinct. The 20-minute ordeal must have seemed like years and he never made a speech in public again. Booker md UK cash & carry Guy Farrant will, in some way, empathise with this speaker. Yet as a past master at giving speeches, confidently and loaded with facts, he hardly falls into the same category. Somehow though, at last month’s IGD wholesaling conference, a piece of information slipped from his mouth which should not have been written into his notes. Whether it was his fault or that of his colleagues is unsure. But Farrant should not let this affect his pedigree as a proven orator. He has acquitted himself well before and no doubt will do so again. Like those in a plane scare, he should get on the next flight (of stairs to the platform).

Part of a £5m campaign ... see p.6


New Cardiff site revealed ... see p.8




swa update


special report


igd conference




in focus employment law

18–20 23



otc remedies


hot beverages




christmas confectionery


products & promotions


Managing Editor

Kirsti Sharratt


John Wood

News Editor

Mervyn Gilbert

Features Editor

Amber Aitken

Media Sales Manager

Clare Phillips

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

Business Development Manager David Ford

Fax (01342) 712101

Publishing Director

Email mail.winlove@btconnect.com

Martin Lovell

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


ISSN 1352-254X

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

Cash & Carry Management

• October 2013 • 3

news IN BRIEF UWS increase Glasgow cash & carry operator United Wholesale Scotland, which operates from two branches, increased 2012 pre-tax profit by 22.4% to £2m on sales 10% higher at £202.5m. Managing director Asim Sarwar expects both profit and sales to continue improving in the current year.

Hunt named UWS has also announced that Rodney Hunt, former managing director of Today’s Group for 12 years, has become a nonexecutive director. He previously helped UWS to move into symbol retailing and to launch an export division. (UWS trade show: see p.7)

More in India The number of Booker cash & carries in India has increased to six with the opening of branches in Mumbai (20,000 sq ft) and Surat (19,000 sq ft).

Eight ‘winners’ Batleys sponsored all eight horse races at Musselburgh on 16 September at a total cost of more than £39,000. The races were run under the names of Batleys Foodservice, Batleys Cash & Carry, Best-one, Best-in, Petrushka vodka (two races), Xtra Local and Drinks Express.


£700,000 on improvements Dhamecha, which opened its seventh branch – a 72,000 sq ft cash & carry in Lewisham, south-east London – towards the end of last year, has no plans at this stage to follow up with an eighth, according to chief executive Pradip Dhamecha.

outs there and have doubled the number of central cash office windows to four. And we have relaid the tobacco section. The work has taken about six months.” To mark its completion, the company staged what Dhamecha described as a “soft relaunch, with extra special offers for one week”. At Enfield, a mezzanine floor has been opened to extend the range of tobacco and spirits and new LED lighting has been fitted in keeping with the C&C operator’s aim of becoming more green. “All this enhances our customers’ shopping experience,” said Dhamecha. The company, which has

more than 500 employees and 12,000 registered customers, has a turnover of £586 million. A longstanding Today’s Group member, it has recently extended its range of own-label grocery products. Dhamecha commented: “We continue to plot a path Exclusive for sustainable improveIn an exclusive interview ment. Conventional wisdom with Cash & Carry Managesuggests that speed through ment, he said the latest unit the checkouts, competitive was “making slow and prices and excellent product steady progress” under genavailability are the key eral manager Steve Davey drivers in the minds of the and the aim is to continue independent retailer when there on an upward curve, he or she visits a cash & even though “times are still carry. tough”. “Our focus is quite The C&C operator has simple: examine every been pumping money aspect of the operation into improvements at and ask ‘Where are we two of its more estabnow and what can we lished outlets. do to enhance each of “We have spent these elements?’ £700,000 on changes at “Like everyone else Barking and Enfield,” in the grocery trade, we said Dhamecha. must be conscious of “At Barking we have the need to watch our installed extensive costs. But that will cladding because the always be balanced existing material was with a high level of fading, and we have investment in our builddone it in our corporate ings, infrastructure and colours. people.” Concentrating on the company’s assets: “We have also Tel: Dhamecha Cash & Pradip Dhamecha. replaced all 15 checkCarry 020-8903 8181.

Main chunk for Today’s After the announcement that six members of National Drink Distributors have joined Landmark Wholesale (see p.12) comes the news that 14 of the 17 remaining NDD wholesalers have signed up with Today’s Group. NDD’s turnover is around £300m, of which £79m is represented by the Landmark additions. But

• Cash & Carry Management • October 2013

Today’s has gained by far the larger share – valued at approaching £200m. Bill Laird, Today’s managing director, told Cash & Carry Management: “This is really significant for us and represents big volume. “I reckon that the 14 newcomers, plus existing members, give us an ontrade buying power of close

on £500 million. “New volume is about a third, and the rest is from Today’s members either specialising in the on-trade or, like Imperial C&C, strong in both this channel and the offtrade.” NDD will be dissolved at the end of the year. Tel: Today’s Group (0844) 247 0700.



£1m in tobacco thefts According to the Federation of Wholesale Distributors, during the past year more than four million cigarettes, valued at around £1m, have been stolen from the premises of cash & carry/wholesalers and retailers. The statistic was contained in a recent presentation about tobacco smuggling made by the trade body to a Home Office Select Committee. A spokesman for the FWD commented: “Tobacco crime is a serious problem in the wholesale sector. The trade in illicit tobacco has a strong adverse effect on our members, who are targeted by criminal gangs seeking to

Theft and illicit trade continue.

steal large quantities of legitimate products.” The spokesman later added that in the previous month alone, 13 tobacco thefts had been reported by C&C/wholesalers to the IGD. In one of several tobacco

Birmingham facelift

Costco up 6% Final quarter global sales of $31.8bn for Costco (up 1%) have resulted in total income for the full year rising by 6% to $102.9bn. The international division (including 25 branches in the UK) matched the overall improvement with a 6% increase. In the UK, where Costco has 25 branches with turnover of around £1.5bn, customers can now buy online. Tel: Costco UK (01923) 213113.

gang ‘busts’ reported by HM Revenue & Customs, Malcolm McGowan, 61, originally from Edinburgh, who was found guilty in 2001 of smuggling 28.3 million cigarettes (worth around £4m) into the UK, was given a four-year jail term after being extradited from Spain. He was part of a wider plot to smuggle around 56 million cigarettes into the UK between November 1999 and March 2000. Ten other men were involved. Tel: Federation of Wholesale Distributors (01323) 724952.

product display zone that shows weekly offers, areas designated for Coca-Cola and Lavazza coffee and a section where customers can choose to pay either by cash JJ Food Service has spent over £300,000 on improvements at its Birmingham branch. The depot’s new shopping area includes touch screens for online ordering, a

or card. The latest refinement – this month – has seen the installation of a canopy around the whole site. Tel: JJ Food Service (01992) 701746.

Property deal Makro parent company Metro has sold the freehold of 43 cash & carries in France to Hermes Real Estate Investment Management. A similar arrangement, involving the disposal of 49 branches to the same puchaser, was completed last year. This means that all 92 Metro Cash & Carry outlets in France, which had a 2012 turnover of around £4bn, are now operated on a sale-andleaseback basis. A spokesman for the company told Cash & Carry Management: “It is part of our strategy that we are disposing of some core assets and portfolios in mature markets which have created a lot of value over the years. “This is mutually beneficial for our company and for external investors, who find real estate linked to our operations attractive and sustainable. “Notwithstanding, we keep investing, predominantly in Asia, Russia and Turkey.” The Metro spokesperson added that a C&C sale-andleaseback deal – in two tranches – was undertaken in Italy in 2010 and 2011.

Bestway targets Booker Bestway (and Batleys) has concluded a four-week dedicated promotion for the Best-in Essentials range. The ‘Ditch the Euro’ drive urged retailers to bring in a

single product from Booker’s Euro Shopper range in return for a free case of the Best-in Essentials equivalent. Qualifying lines were: baked beans 400g, milk


chocolate 100g, digestive biscuits 300g, tomatoes 400g, lemonade two-litre and granulated sugar 500g. Tel: Bestway Group 0208453 1234.

Cash & Carry Management

• October 2013 • 5

On-the-Go Coffee Lynn Little, Standard Ingredients CBU Lead at NESTLÉ PROFESSIONAL® (in her second of five monthly columns) spills the beans when it comes to ‘on-the-go’ coffee…

Coffee ‘on-the-go’ is BIG news. The ‘coffee shop experience’ is no longer limited to the coffee shop and today’s consumers have come to expect a quality beverage offer wherever they are, at whatever time of the day. Simply put, people want great coffee and they want it now… With 290 millioni coffee opportunities ‘lost’ in the out of home market each year due to lack of consumer convenience, for operators such as retailers, forecourts, convenience stores and post offices, ‘on-the-go’ coffee is an opportunity not to be sniffed at. NESCAFÉ® &GO®, one of the original self-serve machines, is the perfect opportunity for operators to profit from the ‘my coffee now’ trend, offering the potential to drive £6,300 in annual revenue.ii With minimal outlay and set up costs, it is a quick, clean and convenient standalone machine. And with a recent consumer taste test finding 73%iii of consumers favour NESCAFE® &GO® hot drinks to the leading challenger brand, NESCAFÉ® &GO® is THE number one on-the-go hot beverage solution. NESCAFÉ®, Britain’s best loved coffee, has a wide range of solutions available for cash and carry customers, tailored perfectly to their size and business needs. NOW really is the time for cash and carries to ‘get moving’ and cash in on coffee…

helping you add value At NESTLÉ PROFESSIONAL® we have the knowledge & complete range of solutions to help you to satisfy consumers and drive beverage profits. Find out more at nestleprofessional.co.uk or call 0800 745 845 and quote ‘cash&carry’. i ii

Incite 2013 Hot Beverage Market Sizing This figure is based on retailers selling 20 cups a day, six days per week, 48 weeks per year at a recommended selling price of £1.10. RSP is a NESTLE® recommendation only. Resale prices are at the sole discretion of the retailer iii Blind taste test conducted amongst 100 consumers v Kenco2Go, February 2013

NESTLÉ PROFESSIONAL® is a registered trademark of Société des Produits Nestlé S.A.

Foodservice extended... Batleys Foodservice, hitherto largely based in Scotland, has been extended to the rest of the UK under the Bestway Batleys Foodservice banner. The enlarged service operates from 17 cash & carries stretching from Aberdeen to Plymouth. In Scotland, the company is already undertaking deliveries to Edinburgh and Glasgow councils and the Prison Service. A large part of its business north of the border was already in place when it acquired Martex from CJ Lang & Son and Bellevue three years ago. Since then, it has introduced a butchery service

and has plans to launch an own-label range. Group catering controller Paul Rabone is encouraging customers to place orders online as well as through the expanded telesales team, which now numbers 18. In addition to five foodservice locations in Scotland (Aberdeen, Glasgow, Perth and two in Edinburgh –

Batleys and Bellevue), the company operates from 11 cash & carry sites in England (London Park Royal head office, Birmingham, Brighton, Cleveland, Gillingham in Kent, Leeds, Leicester, Manchester, Newcastle, Plymouth and Southampton) and one in Wales (Cardiff). Tel: Batleys Foodservice (01738) 646666.

...and butchery is growing Bestway Group’s butchery sales notched up a 23% rise in August. The company now has dedicated departments in 30 branches across the Bestway/ Batleys estate, offering a delivery service. Newly-appointed butchery development manager, Jon Howes (right) said: “The opportunity in wholesale for butchery is massive. “We have customers coming to

us from retail and foodservice who have been buying their meat from other suppliers. They now know that their local Bestway and Batleys can provide a comprehensive solution to their butchery needs. Sales continue to rise. “Although our own-label range, Butcher’s Farm, achieved greater traction in retailers and Best-one stores, a major slice of August sales came from

SPAR magazine In November SPAR UK will launch There for You magazine as part of a £5 million national multi-media campaign. Available to 2,000 symbol stores, it will contain ‘winter

warmer’ recipes, details of new products, community news, health & fitness features and crossword puzzles. A spring issue is planned for March. Tel: SPAR UK 020-8842 3700.

new foodservice customers, who were tempted by our ‘Butchery On Fire’ promotion and ‘Price Hold’ guarantee.” Looking forward to Christmas, Howes said: “We will be focusing on carving meats, such as topside, silverside, gammon, leg of lamb and, of course, turkey butterflies. “However we are also introducing a new range of portion-controlled meal solutions, including pheasant breasts and turkey escalopes stuffed with sage, onion and cranberries. A greater emphasis will also be placed on Christmas accompaniments such as pigs in blankets and goose fat. “Fresh and chilled is a major driver for Bestway, not only in C&C and wholesale, but also through our retail estate of customers, including Best-one.” Tel: Bestway Group 0208453 1234.


Competing with the ‘big boys’ GSK deal Welsh operator BA Cash & Carry is now so firmly established that it can ‘give the big boys a run for their money’, director Zahier Ahmed told guests at the company’s 11th retailer awards presentation, held in Cardiff. Some 120 stores are now in the Landmark Wholesale member’s retail club – 95 are Lifestyle Express stores and 20 of these are deemed to hold ‘Evolution’ standard, the group’s highest level of store refurbishment. Ahmed said independents are enjoying increased sales of 60% after converting to Lifestyle Express. He added that the new e-commerce website was expected to account for 40% of BA’s turnover next year. Awards were presented to: Raj Kanagasingram, Lifestyle Express, Ammanford (best newcomer); Mahmood Akram, Lifestyle Express, Cym (Lifestyle own label); Chris & Nicola Phillips, Lifestyle Express, Abercwnboi (most improved retailer); Laurence Baker & Leanne Belt, Kon-tiki, Swansea (business achievers club on-trade retailer, Swansea); Margaret Studt, Demiro’s, Cardiff Bay (business achievers club on-trade retailer, Cardiff); Colin & Andrew Clabby, Lifestyle Express, Rhymney (business achievers club top member); Mustaq Ahmed, Lifestyle

Express, Swansea (runnerup). A special achievement award went to Mohammed Arshad, who has been with BA for 25 years. Supplier of the year was PepsiCo/ Walkers. Tel: BA Cash & Carry (029) 2022 9962. Zahier Ahmed (right) with brother Tanvier.

Business loans

GlaxoSmithKline’s bestknown brands in the UK retail and wholesale channels, Lucozade and Ribena, are to have a new owner. Japan-based Suntory Beverage & Food is paying £1.3bn for the products, which last year had annual sales of around £500m. The ‘vast majority’ of the 500 employees at the GSK plant in Coleford, Glos, are being retained In Nigeria, GSK will continue to manufacture and distribute the brands under licence from SBF. Consumer healthcare brands that GSK has retained include Horlicks, Aquafresh, Macleans, Sensodyne and Beechams. Tel: GSK 020-8047 5000.

New awards Heart Distribution, the AF Blakemore & Son initiative which supports more than 150 regional producers, has launched a loans scheme. It is available to producers who have been with the company for more than 12 months, as well as others on a ‘special case’ basis. Commercial manager Caoire Blakemore said: “Heart has been going for nearly five years. We’ve seen some great product come into the marketplace, but we’ve also seen some of our

producers struggle to grow. “The new scheme is aimed at helping Heart’s food and drink producers obtain bank loans, because even when loans are granted, they usually do not come with reasonable interest rates.” Each quarter, five producers will be awarded a loan of up to £5,000, to be paid back through one of two repayment schemes, one of which is entirely interest free. Tel: Heart Distribution (01902) 308996.

The FWD’s Gold Medal Awards, being presented in London next month, will include two new categories: green wholesaler of the year and environmental initiative for the wholesale channel. Chief executive James Bielby said they would reflect the importance of reducing the environmental impact of storage and distribution through carbon reduction, resource efficiency, sustainable sourcing and waste prevention. Tel: FWD (01323) 724952.

More show interest in Day-Today A Day-Today trade show held last month by Glasgow C&C operator United Wholesale Scotland was the most successful in the three-year history of the event. Naeem Khaliq, UWS Day-

Today controller, said: “Over 200 of our existing 275 members attended, plus 53 potential newcomers, of whom we are hoping to sign up a considerable number if they are compatible with us.”


The event included an exhibition supported by 80 suppliers and a ‘pop-up’ DayToday shop. Over £1m worth of business was transacted on the day. Tel: UWS 0141-781 6600.

Molson Coors staff were kept busy.

Cash & Carry Management

• October 2013 • 7


Cardiff next for Wing Yip Oriental foods specialist Wing Yip, which as far back as 2009 announced plans to open in Cardiff and Nottingham, has at last given a broad hint that one of these locations – Cardiff – is being prepared to become its fifth branch. Work is also in hand to improve facilities and extend the area at its Greater London outlets in Croydon and Cricklewood. This comes after similar expansion at the Birmingham headquarters. Aside from Cardiff, whose budget has yet to be revealed, each project will have cost between £5 million and £10 million, Cash & Carry Management was told by managing director Henry Yap, one of five secondgeneration members of the family to hold executive roles within the cash & carry business. The others are Brian Yip, who works with Henry at the Birmingham headquarters, Albert Yip at Croydon, and Ennevor Yap and David Yip at Manchester (43,000 sq ft). The Cardiff branch will be

Price held Diageo is to hold the price of its price-marked Smirnoff vodka 70cl at £13.49, absorbing duty rate increases. Company executive Lara Newton said the decision indicates Diageo’s commitment to the convenience channel “to ensure retailers can execute competitive price promotions in the market place. Value perception is a key driver of store choice for shoppers in this sector.” Tel: Diageo GB 020-8978 6000.


Henry Yap

built on a 4.8-acre site in Newport Road. At this stage, there are no firm details for the Nottingham site. Referring to improvements that have taken place at the Birmingham hq, Henry Yap said: “We completed an expansion at this, our biggest branch, in March, extending the store from 50,000 sq ft to 84,000 sq ft and, as part of the redevelopment, also built a 30,000 sq ft warehouse to supplement the existing 61,000 sq ft national distribution centre. “We make deliveries to our branches and customers from Birmingham, using seven articulated or 15-tonne

vehicles and third-party transport when required.” Work starts later this year to extend warehouse space at Cricklewood from 57,000 sq ft to 73,000 sq ft, as well as improving access to the site. The company has also applied for planning permission to expand the sales area at Croydon from 41,000 sq ft to 70,000 sq ft. In 2011-12, Wing Yip turnover was £99m, down £2m on the previous year’s figure due to the depressed economy. Around 80% of business is cash & carry, the remainder delivered. Henry Yap said that although online ordering currently accounts for less than 5% of total income, it is showing substantial growth, with orders increasing by over 25% following a relaunch of the website last autumn. All four sites have a business centre of up to 28,000 sq ft, which includes a restaurant, bank and business tenants. The company recently launched the second Wing Yip Oriental Cookery Young Chef of the Year competition. Tel: Wing Yip 0121-327 6618.

Own label modernised Bestway Group’s Best-in brand is marking the unveiling of a contemporary logo with the introduction of a new range of cookies. The rebranding will not only give the Best-in range greater on-shelf appeal but also ensure the products comply with food packaging and labelling regulations. In addition to traffic light nutritional information on three sides of the pack, allergens will appear in bold text in the ingredients list, with recyclability also flagged. The range of chunky, ‘premium-style’ cookies comes in five flavours: choc chip, choc chip & hazelnut, choc orange, peanut, and fun cookies, topped with candy coated chocolate drops.

Each 135g pack (150g for peanut) is dual price-marked at 69p per pack and ‘2 for £1’ and is available in a small C&C outer of three. Tel: Bestway Group 0208453 1234.

‘On track’ with Makro Latest quarterly results for Booker Group show that in the 12 weeks to 13 September, total sales (including those for Makro) rose by 19.3% and by 3.5% on a like-for-like basis. While non-tobacco business produced a 30% rise (6.9% without Makro for the 2012 quarter), tobacco alone managed just a 1.8% rise, but dropped by 2% without

• Cash & Carry Management • October 2013

the group’s new acquisition. The figures meant that total sales for the 24 weeks of trading were up by 16.5% (2.3%), with non-tobacco 25.5% ahead (5%) and tobacco plus 1.6% (2.2% down). Chief executive Charles Wilson referred to a good half year, aided by warm weather. Booker Direct and Chef

Direct also produced improved figures. Wilson expressed his satisfaction with the integration of Makro, saying ”our plans are on track. “We are continuing to improve the choice, prices and service to catering, retailing and small business customers in the UK.” Tel: Booker Group (01933) 371000.


Your HOT sales opportunity every morning.


©2013 Kellogg Company

HUGE WINTER OPPORTUNITY £200M+ category growing at 19% v py

UNIQUE PRODUCT OFFERING Sachets contain 30% less fat than the competition*

Available in pots and sachets in 3 delicious flavours For more information call the Kellogg’s trade Kareline on 0800 783 6676 *At least 30% lower than the average fat content of the leading porridge as calculated April 2013. Only applies to sachets.


Biscuit award Country Range gingerbread men mini packs, launched this year, received top prize in the catering ambient sweet category at the Wholesale Quality Food & Drink Awards. The product comes in boxes of 80, with three biscuits per pack. The CRG range also includes ginger biscuit, fruit Shrewsbury, shortcake and choc chip cookies. Tel: Country Range Group (0845) 209 3777.

£1,000 raised SPAR UK and ambient food supplier Lovering Foods clubbed together to raise £1,000 for ChildLine through an in-store promotion for own-label sweetcorn, with a ‘two for £1’ deal run in symbol stores nationally. Tel: SPAR UK 020-8426 3690.

Bring me sunshine!

Figures released by AF Blakemore show just how beneficial the heatwave was to the Midlands-based SPAR wholesaler. In the first three weeks of July, projected retail and warehouse sales rose by more than 5% and over 8% on the previous corresponding period. Retail regional manager Owen Davies said that many symbol stores reported record earnings during the summer, with ice cream, soft drinks, beers, wines, salads and barbecue items, including charcoal and fresh meat,

Target extended Country Range Group has again teamed up with Kellogg’s for its ‘Give a Child a Breakfast’ campaign to feed the UK’s neediest children. For every case of Corn Flakes and Rice Krispies bought between 1 October and 29 November from one of CRG’s 16 independent wholesalers, the group and cereals supplier will donate four breakfasts to a local breakfast club. Last year, the project funded 50,000 breakfasts; this year the target is 68,000. If this figure is hit, it will enable the partnership (which began in 1998) to award a £400 grant to 32 school breakfast clubs to help them


buy food and equipment. Group marketing manager (and md in waiting) Coral Rose said: “Research shows an incredible one in seven children go to school on an empty stomach or have eaten inappropriate food – astonishing when you consider the benefits of eating ‘the most important meal of the day’. “The extra beauty of this campaign is that Country Range Group members who sell the two Kellogg’s breakfast products also get to nominate breakfast clubs in their own communities.” Tel: Country Range Group (0845) 209 3777. Tel: Kellogg’s (0800) 626066.

• Cash & Carry Management • October 2013

among the biggest sellers. Picnic products and travel accessories, specially introduced over the summer, also sold well, while price reductions on beer also generated

greater returns. In one week alone, the company’s main distributiion site at Willenhall processed 1.1 million cases, beating the site’s biggest-ever previous weekly figure by 110,000 cases. In cash & carry over the same period, sales of beer rose by 33%, soft drinks by 20% and wines by 14%. All sales across the company’s cash & carry estate grew by 5.5%. Tel: AF Blakemore & Son (01902) 366066.

Colourful Christmas

The Christmas Present brochure produced by Creed Foodservice features themed pull-outs on starters, mains, desserts, buffets and tableware. Managing director Chris Creed said: “We hope that the brochure, in black and

orange livery, will make it easier for customers to plan for the festive season. “Products are clearly categorised and illustrations give some great serving suggestions.” Tel: Creed Foodservice (01452) 858190.

Joint venture To be in with a chance of winning one million Safari points from 3663, customers have to pre-order a Christmas joint by 31 October. Safari is the wholesaler’s online loyalty programme which rewards caterers when they buy selected products. They can redeem

points in exchange for a variety of gifts, including music, films, ‘must-have’ gadgets, vouchers and experiences. There is a prize for each of the three regions (north, Midlands and south). The draw takes place on 25 November. Tel: 3663 (0370) 3663 000.


swa update

Year of opportunity Next year it seems as if it is all going to be happening in Scotland, what with the Commonwealth Games in Glasgow, The Ryder Cup at Gleneagles and, of course, the referendum.

by Kate Salmon

CHRISTMAS DRINKS The November issue of Cash & Carry Management will include a feature on Christmas Drinks

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


The two major sporting events are amazing opportunities which our wholesale members are already gearing up for. Both events will attract tourists from all over the world and represent a unique chance to showcase what is good about Scotland. In line with this, we will use ‘Going for Gold’ as the business theme for our 2014 Conference, which will take place in June in Crieff. We also hope to get a perspective from the major political parties to see how they envisage the political landscape of Scotland post-referendum. On 15 January, the SWA will hold its first parliamentary reception in conjunction with the Scottish Grocers’ Federation and the Scottish Business Crime Centre. The theme is ‘Illicit Trade – What’s the Cost?’. This event will give our members the opportunity to discuss with MSPs issues affecting their business and that of their customers. Illicit trade has an impact on economic growth and job creation, and it damages global business interests. On a local level it brings criminality into communities and is linked to organised crime. With the current government intent on putting tobacco into standardised packaging, it is likely to become an even bigger problem. At a council meeting in February, HMRC revealed the setting up of a specialist

alcohol taskforce targeting illegal sales in Scotland. In August it announced that almost 35,000 litres of illicit beer, wine and spirits had been seized. HMRC will now consider further action against offenders, including full tax and VAT investigations and a review of alcohol and other trading licences. In response to the Scottish Government’s ‘invitation’ for retailers to remove all confectionery from points of purchase across Scotland to reduce the scope for impulse buys, the SWA has invited the major confectionery suppliers to a meeting to see if we can agree a proactive approach to support our members and their customers. We believe the best way forward is for industry partners to take the initiative by highlighting the many positive steps being taken by their businesses to help tackle obesity. At the same time we need to put our arguments strongly that a display ban, at the till point, once more damages trade and restricts customer choice. It should be noted that, if required, Holyrood has the power to enforce the voluntary measure in law. Tel: SWA 0131-556 8753.

Cash & Carry Management

• October 2013 • 11

special report

Landmark passes £3bn milestone The recruitment of six new members boosts Landmark’s on-trade presence, reports John Wood. Landmark Wholesale has taken combined turnover of its members beyond £3 billion with six new recruits, bringing total membership of the group to 42. The announcement was the highlight of a review of the group’s progress as it prepares for chairman Steve Parfett to step down after 18 years in the role (see panel). The new members all joined as a result of Landmark’s decision to set up a new arm of the business focused on the on-trade, to run alongside its retail and catering operations. Managing director Martin Williams said: “This is a major achievement. Recruiting six new members in such a short space of time surpasses all our expectations. It will significantly strengthen our on-trade membership across the UK and give us really good national distribution. They will use all of Landmark Wholesale’s trading and marketing services and stock our ranges of own-brand licensed products. “This is a direct result of our strategic on-trade new member recruitment drive and follows on from Hall’s Drinks joining earlier this year. These six new members will provide

‘A daunting act to follow’ Steve Parfett looked back over his 18 years as Landmark chairman as he prepared to hand over to Blakemore Wholesale chief Sam Wilcox at the end of this month. He said it was striking how many issues that were top of his agenda when he started were still current today. Duty fraud and the competitive power of Booker were two of the top items, although he pointed out that while duty fraud had never gone away, Booker had almost collapsed before Charles Wilson had taken control, and “done a formidable job”. Parfett (right) stated that he was pleased to be able to step down with Landmark in a very strong position. Overall group turnover has now returned to the level it was at when Bestway left in 2003, without there being a single dominant member. He said the group was profitable and had diversified. Although he is leaving the Landmark board, he will still be working two days a week at Parfetts and as a member of the FWD board, although Martin Williams will now be representing Landmark on the Federation’s board. Sam Wilcox thanked Parfett for his contribution and said that although he was a daunting act to follow, he was taking the chair at an exciting time for the business.


• Cash & Carry Management • October 2013

Martin Williams: ‘This is a major achievement.’

great growth for the group, establish volume in the on-trade and add to our overall service offering.” Williams said one of the attractions for the new members was Landmark’s range and expertise in catering. For Landmark itself, the development will allow it to extend its expertise in retail and foodservice into the on-trade. The six new recruits were all previously members of the National Drinks Distributors (NDD) group. They are: Libra Drinks Wholesale, which is based in Nottingham and delivers to pubs, clubs, restaurants, hotels and off-licences across the East Midlands; Leighton Buzzard-based Edwards Beer & Minerals; Glamorgan Beer Co, one of Wales’ leading independent family-run drinks wholesalers; Hills Prospect, a family-run business in London’s East End, which operates within the M25, across Essex and Middlesex; Swansea-based Jack Sullivan; and Middleton Wholesale of Northampton. Reviewing the group’s financial year, Williams said the members’ combined turnover was £2.67bn, 12% up on the previous year. Foodservice exceeded £1bn, accounting for 47% of turnover, with retail at 53%. Trading director John Searle emphasised the power of Landmark’s IT systems and how they allowed the group to work with suppliers to draw insight from sales data. He also stressed the importance of a value offer in the current market, pointing out that while Landmark’s total annual ownbrand sales were up 8%, the value part of its own-brand was ahead by 60%. Building on the theme of data use, business development director Chris Doyle highlighted the group’s ‘on target’ initiative. This uses sales data to identify where retailers are missing items from the core range and provides them with vouchers to be used to buy the absent products. Retailer reaction had been extremely positive, he stated. Doyle also said that Landmark was helping its members to carry out great execution in depots, with promotions that were achieving record sales and distribution and with value zone displays that were helping to drive own-brand sales.


All caterers need for Christmas is... Kerrymaid

Make life easier for caterers in the run up to Christmas with Kerrymaid Culinary, a multi functional cream alternative that can be used in both hot and cold applications. Kerrymaid brand ambassador and award-winning chef Sophie Wright is introducing chefs to the product with a recipe booklet packed full of winter warming recipes to inspire and help them through the hectic festive season. Used by Sophie in recipes ranging from Creamy Mushrooms with Garlic and Thyme on Toasted Brioche to White Chocolate and Raspberry Crème Brûlée, Kerrymaid Culinary boasts a range of benefits that make it highly versatile:

Smooth creamy texture

A delicious alternative to fresh cream

An excellent carrier for a range of flavours

Does not split when used with alcohol or acidic ingredients

Bain-marie and microwave stable

Freeze/thaw stable even when whipped, for maximum versatility

Three times over-run once whipped

Less than half the fat when whipped

Contains no hydrogenated fats

Suitable for pouring, whipping and piping

As evidence of its outstanding qualities, Kerrymaid Culinary has been endorsed by the Craft Guild of Chefs − one of the highest seals of approval that a foodservice product can receive. During trials, chefs used the cream alternative across a multitude of applications, describing it as a “really good product”, and praised its functionality, saying that it was “freeze/thaw stable and held well”. Sophie Wright also believes Kerrymaid Culinary is an excellent choice for busy operators across hot and cold functions. She said: “Dairy is a staple in every kitchen. Kerrymaid Culinary offers chefs the flexibility and convenience they need when catering in a busy kitchen, without compromising on quality.” To help your customers discover Kerrymaid Culinary and its benefits, an extensive publicity campaign is being launched across foodservice press inviting caterers to register for a complimentary copy of Sophie’s recipe booklet on the Kerrymaid website. And to get your customers into the Christmas spirit, Kerrymaid will also select ten people who sign-up for a recipe booklet to win a sumptuous Christmas hamper. There’s really no better time to offer your customers a helping hand from Kerrymaid this Christmas! Wholesalers who wish to find out more about Kerrymaid Culinary and enter the Christmas giveaway can visit www.kerrymaid.co.uk or call 01784 430777.

igd conference

Loans? Something to consider Mervyn Gilbert reports on the IGD Wholesaling 2013 conference. It was a contrite Guy Farrant who was forced to issue a denial after speaking at last month’s one-day wholesaling conference organised by the Institute of Grocery Distribution. Appearing in two guises – one as chairman of the FWD and the other as Booker’s managing director, UK cash & carry – he was talking about ways that his company, and the rest of the trade, could derive greater loyalty from customers. In this context Farrant (pictured) implied that the range of services available to Booker patrons would soon include loans. There was heightened interest and mumbling among the 165 delegates, representing 95 companies. But Booker’s press officer was later forced to do a ring-round to explain that what Farrant meant was that this was a service that could, at some stage, become available in cash & carries generally. It certainly wasn’t a fait accompli. However, the fact that the word ‘loans’ had been included in Farrant’s presentation suggests that this facility is not too far away in C&C/wholesale, with Booker leading the way. “The trade now has 800 regional depots, 6,350 delivery vehicles making over 200,000 deliveries and C&Cs attracting 150,000 customers,” he said. “There are also 17,000 symbol stores compared with 3,300 in the multiple sector. Supermarkets are no longer driving the industry.” Farrant added: “The trade is still very much about investing in the future – in meat, training & apprenticeships and in fresh food, which brings footfall into the cash & carry.” Turning to the foodservice channel, he said there are 52,000 fast-food outlets in the UK and 96,000 pubs, bars and clubs serviced by Booker and Makro. “I believe that foodservice, catering and hospitality all offer great opportunities. “At Booker, 17% of sales now come through the internet, whereas at Tesco it is 9%. But we are not alone in driving internet business.” Other aspects of trading which have become the norm in C&C/wholesale, said Farrant, are price marking (“absolutely critical”) and mixed packs. As the principal collator of facts and figures in the food trade, the IGD, through two of its executives, updated the audience about the current trading climate. Chief economist James Walton said the economy moved ahead in the first and second quarters and that this trend was across the board. Among the indicators are rising house prices and an increase in new car registrations. “That’s good, because we want to see an even picture. On the other hand some of our assets are overvalued and the recovery is still very weak.”


• Cash & Carry Management • October 2013

Total trade up 2.3% The wholesale food & drink trade is currently worth £27.9bn – up 2.3% year on year. The amount is split between cash & carry (£11.9bn), delivered grocery (£9.3bn) and delivered foodservice (£6.7bn). The increase is mainly due to growth in the C&C channel, which is pulling back a lot of ground lost in the ‘80s and ‘90s, said IGD chief economist James Walton. “Although in real terms the industry has barely moved, it’s pretty impressive in view of all the turmoil that’s going on.”

Walton asked: “Is the food and drink industry really fit to face the future? Value sales are growing faster than volume, which is extremely weak. And there’s not much sign of that turning round. “While the number of grocery outlets is 9% down on 2008, that’s still enough for customers. And while 14,000 non-affiliated traders have left the market place over this period, 9,000 have moved into symbol membership. Symbol shops take two-and-a-half times as much in a week as those which are non-affiliated.” Walton also said that the trend in retail food shops was for them to be run by those under 40 years of age and that the channel was now not so much confined to Asian and English proprietors, but with many from the Baltic States and Poland making their mark. As regards foodservice, he said: ”This has suffered by between 5% and 10% over the past couple of years. It’s the first place where the public tends to cut back. However, chain restaurants and food-led pubs are showing good growth.” IGD’s senior business analyst Patrick Mitchell-Fox gave Country Range Group a mention in terms of nutritional information meted out to customers when discussing the various forms of help given by groups, and JJ Food Service was applauded for its order & collect service. “There is also now more focus on private label, to drive its quality and credibility, while smaller cases are growing. In tobacco, 50% of sales are now in half outers.” Flashing messages like ‘40% POR’ and sale or return were also important means of attracting business. While congratulating Red Bull for its £1.19 price-marked pack, Mitchell-Fox said that an IGD survey showed that only 35% of respondents were ‘happy’ with PMPs; 28% ‘would avoid them’; and 37% were ‘indifferent or don’t know’. Landmark Wholesale managing director Martin Williams said the group would go through the £3bn barrier this year and that 53% of turnover now comes from delivered trade. Costco Wholesale UK trading director Steve Barnett told delegates the company offered a delivered service at three of its sites. He claimed: “We do what we say we’ll do because we keep things simple and at the lowest possible price.“


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sponsored by

‘My dad believed in me’ This month’s article features Nabeel Ramzan, managing director of Glasgow-based United Wholesale Grocers. What has been the major milestone or turning point of your career? Since becoming managing director of United Wholesale Grocers Ltd in 2009, we have seen consistent growth year on year. I would say the biggest milestone will be achieved within the next year with our ambitious growth plans. Who has been the biggest inspiration to you? Without a doubt, my father, Mohammad Ramzan. He set up the business from scratch 36 years ago. I have seen him work very hard throughout the years. I have seen how he always took on, and overcame, any challenge. My dad believed in me the most. He trained me, and he taught me to be firm but fair and focused. I have to say he has been an inspiration to most of the people he has trained that are currently employed in the industry in many independent cash & carries across Scotland. What most frustrates you in business (and in life generally)? Dishonesty and lack of pride in work. For me, business ethics and principles are extremely important. Stick to your word!

Smashing projections During his education at Glasgow Caledonian University, Nabeel Ramzan began to take on various roles within the family business in order to expand his knowledge and practical experience. Five years later, after completing his studies – he graduated with an honours degree in optometry – he made the decision to join the family business. Ramzan’s first full-time role was in junior management at United Wholesale Grocers’ Springburn branch. In 2004 the company’s Polmadie depot was launched, giving him his first opportunity of becoming a general manager. Within three years UWG had smashed its year five projections. In 2009, when his father retired, Ramzan was entrusted to become managing director of UWG. Since then, the company has grown by over 50%.

How do you maintain a work/life balance and how have developments in technology affected this? I am lucky to have a partner who understands the business needs. My family support is fantastic. In order to run any successful business and a good family life, time management is key. If you were able to retire tomorrow, would you, and if so, how would you spend your time? No chance! I enjoy my work too much; what would I do when I retire? What advice would you give someone starting his/her first job? Be honest with yourself and do something that you enjoy. Work hard and treat everyone with respect and don’t be scared to think outside the box. What type of business would you have gone into if it wasn’t C&C/wholesale? Business is in my blood! I can’t really envisage life outside C&C/wholesale. UWG has allowed us to develop additional interests, such as property and other ventures.

Nabeel Ramzan with his son Rayyan in the background.


• Cash & Carry Management • October 2013

If you had a million pounds to invest in business, how would you spend the money? I would invest in people, technology and resource, allowing me to evolve certain areas of the business to generate more revenue. More revenue = greater profit = an increase in charitable work and serving the community.





01772 688 300


in focus

The leading C&C/wholesaler in Wales is proud of its roots.

Flying the flag for Wales Mervyn Gilbert speaks to the people that make Castell Howell Foods so successful. It might not have been of the same proportions as Bestway quitting Landmark in 2003. But when Castell Howell Foods decided to leave Sterling Supergroup a year ago, and then move to Caterforce, there were echoes much further afield than just in the Welsh valleys. For Sterling, it meant losing its biggest wholesale member while for Caterforce it led to the group increasing total turnover to around £300m. While Sterling has bravely attempted to balance the books by adding a few smaller affiliates, what impact has signing the country’s leading C&C/wholesaler had on Caterforce? Group managing director Nick Redford says: “Castell Howell Foods’ years of knowledge and expertise have been fundamental in helping us reach new heights. They have also played an important role in helping us create a fantastic new brand, Chefs’ Selections by Caterforce. “Working with wholesalers of a similar size and ambition has brought rewards for everyone, and the openness and team spirit within the group just gets stronger.” When the Welsh C&C/wholesaler changed its group allegiance, managing director Brian Jones gave this explanation to Cash & Carry Management: “We joined Sterling Supergroup 14 years ago when what had been a retailoriented organisation started moving into foodservice. “It gave us access to companies like Heinz and Nestlé, which have foodservice divisions. We have joined Caterforce because it has enabled us to make larger drops with fewer invoices.” Castell Howell Foods was founded in 1988 as a frozen foods distributor at Trevaughan, Carmarthenshire, by former dairy farmer Jones and his then wife Elizabeth.


• Cash & Carry Management • October 2013

Two years later it moved to Pensarn, in the same county, and in 1998 it opened a cash & carry. Within a year, a satellite depot was unveiled in Merthyr Tydfil, and then similar sites were opened at Avonmouth in Somerset (in 2004) and Chirk, North Wales (2009). Yet another change saw the distribution centre and head office move to the existing location at Cross Hands, also in Carmarthenshire, in 2007. The number of buildings used by the company reflects the constant increase in the amount of business transacted and the diversified nature of its operations. Not only are the delivered wholesale and C&C sides thriving, but the company has also developed a sandwich fillings business under the Farmfresh Fillings name, a butchery, a meat boning plant under the Celtica Foods title and a cattle procurement business called Celtic Pride. C&C and purchasing director Chris Dennis says: “Current turnover is £80m, of which delivered trade accounts for £68m and cash & carry £12m. Both aspects of the business are growing at around 10% a year.”

Where Castell Howell operates Cross Hands (main distribution and administration site): 60,000 sq ft Cash & carry, Pensarn, Carmarthen: 22,000 sq ft Adjoining boning plant and butchery: 17,500 sq ft (moving next year to a new 37,000 sq ft facility being built at Cross Hands). Satellite depots at Avonmouth, Somerset; Merthyr Tydfil, Glamorgan; Chirk, North Wales; and Blaenau Ffestiniog, Gwynedd.


in focus Turnover figures in recent years show a total of just over £59m in 2010, followed by more than £65m a year later and £72m last year. Unlike most C&C/wholesalers, Castell Howell Foods is not averse to disclosing profitability. Says finance director Nigel Williams: “In the first of these years, our profit was £1.28m, but this slipped to £869,000 in 2011 because of a reduction in margins caused by the effect of food price inflation, combined with economic pressures on our customer base. There was also the effect of increased crude oil prices on diesel fuel for our vehicle fleet. “Last year, however, our operating profit was £1.2m, as margins recovered with less pressure from price increases.” He adds that this year, new contracts (which CHF is loath to disclose), together with increased business in North Wales, improved weather and margins holding up are all having a beneficial effect. Chris Dennis, Nigel Williams and Brian Jones MBE are directors on what is a weighty board. The others are Jones’ ex-wife Elizabeth, who has a 50% stake in the business along with her former husband; their son Martin (transport & production director); daughter Kathryn (sales & marketing director); Matt Lewis (operations director); and Mike Davies (human resources and health & safety director). David Little is non-executive director. In the ambient sector, says Dennis, Unilever is Castell Howell Foods’ leading supplier, followed by Coca-Cola, while the tertiary brand Caterers Choice has been growing and now has a turnover of more than £10m through the Welsh company. “We have also become the official partner in West Wales of Heineken; that’s on the cash & carry side. “Dairy is a massive commodity for us. Cheese – all types,

not just Welsh – brings in £2m annually through sizes ranging from 100g to 2.5kg.” Commenting on the C&C’s opening hours (Monday and Thursday 8.30am to 7.30pm, Tuesday, Wednesday and Friday 8.30am to 5.30pm, Saturday 8.30am to 12.30pm and Sunday 9.30am to 12.30pm), Dennis says: “We did think about staying open until 4pm on a Saturday, but after we saw Booker in Carmarthen doing it, and having an empty car park, we decided otherwise!” CHF has more than 400 staff, including 36 in the butchery division, 13 in the boning plant and 20 working on the sandwich and cooked meats site. Most of the rest (apart from office and admin staff) work in the delivered wholesale and C&C operations. Dennis comments: “Our distribution stores stock over 10,000 product lines, covering ambient, frozen and fresh. We also handle catering equipment and packaging, thus providing a one-stop shop for the catering customer. “We have added to our internal brands by developing the Café Eto coffee range. We believe in having a strong service culture and customer base, combined with a loyal and committed staff.” CHF has more than 3,000 delivered customers (publicans, hoteliers, colleges, hospitals and factories) and over 1,000 on its cash & carry books. It holds several NHS and local authority supply contracts and also delivers to the SA Brain pub chain, Celtic Manor resort complex in Newport, and the Castle Leisure Group. On the delivered side, the company’s two main foodservice competitors are Brakes and 3663, although CHF also has to contend with several regional operators and specialist suppliers, particularly in meat and dry goods. Booker poses the main competition in cash & carry.

The wholesaler services more than 3,000 delivered customers.


Cash & Carry Management

• October 2013 • 19

in focus The pluses Brian Jones doesn’t put Castell Howell Foods’ success down to any one thing, but a combination of factors. “We offer a good service; that’s the main reason. Then there’s price, because we are competitive, and we have a substantial product range,” he says. “We also use service-oriented sales representatives and telesales staff, together with newsletters and social events to promote customer relationships. As a family business, the directors are very close to the customers, many of whom have been with us from the early days. “And our wide-ranging product list places great emphasis on Welsh food manufacturers where possible, with around 25% of purchases – including our Celtic Pride premium beef and Managing director Brian Jones gives a driver the all-clear. pork – sourced from suppliers in Wales. Cola, we are close to specialist and regional manufacturers “In addition to having strong, established relationships and suppliers.” with large companies such as Unilever, Nestlé and CocaJones also points to the fact that the C&C/wholesaler has not only a strong board, but also an experienced operational team of 12 managers, each of whom reports to specific directors. Outside of business, Castell Howell Foods supports local charities and clubs, provides work experience for youngsters, is a member of Business in the Community and backs the WRAP initiative to reduce packaging waste in the supply chain. With all these sound credentials, a strong family structure to ensure a seamless transition to the younger generation, and other executives with an extensive knowledge of the trade, CHF is well set to continue its path of progress over the coming years.

A message from Brian Jones

Picking goods in the warehouse.


• Cash & Carry Management • October 2013

This is what the managing director has to say in a brief message on the company’s website: “I have always believed that business is based on more than short-term profit. It is about trust. “For over a decade we have recognised we have a responsibility to all of our stakeholders: our clients, our workforce, the wider community and the environment. “We all need a sustainable business model – one built to last. “No organisation can claim to have all the answers, but at Castell Howell we are continually looking for ways to improve.” Diolch yn fawr (Many thanks).


Yes sir, Yes sir, 4 bags full.

New price marke bags


in Cash & Carry and Wholesalers now.

Qui s in!

Homelessness ended here for Steve,* bakery worker.

A broken marriage left Steve with no roof over his head. Not to mention a cloud of debt. Thankfully GroceryAid was here to help with some sound impartial advice and a rental deposit for a new flat. Now the future for Steve is looking a whole lot brighter. To find out more about your industry charity visit www.groceryaid.org.uk or for welfare advice call 08088 021 122. *The story is real but the names have been changed to protect identities. GroceryAid is the trading name of the National Grocers Benevolent Fund. A registered Charity Re. No 1095897 (England & Wales) & SCO39255 (Scotland). A company limited by guarantee, registered in England & Wales no 4620683

employment law

Payments in lieu of notice HR expert Cate Ritchie (below) answers your questions on employment law.


If an employee resigns (and we accept his or her resignation), can we pay him or her in lieu of notice immediately? In addition, can we keep the company car (or other company benefits) and pay the employee the equivalent to this benefit in cash on termination?


Payment in lieu of notice is usually only made following the termination of an employee’s employment by an employer, and not following the resignation of an employee. In any case, in order to make a payment in lieu of notice, there should be a ’payment in lieu of notice’ (PILON) clause contained expressly within the contract of employment to avoid a potential breach of contract claim if an employer does not allow an employee to ’work’ his or her notice period. Similarly, if the employer requires that the employee remains away from work during the notice period (known as garden leave), then there should be an express ’garden leave’ clause within the contract of employment for the same reason. In relation to the position on company benefits, if the employee has a company car for business and personal use, contractually he or she is entitled to keep the vehicle for the (actual or notional) notice period, again unless the contract expressly provides for otherwise.

‘Exercise caution in respect of requiring some individuals to work their notice and not others’ The employer will only be able to withhold contractual benefits if the clause is correctly worded, for example if the clause states that all benefits are paid (or withdrawn) as accrued as at the actual date of termination. However, if this is not the case, it may be reasonable to pay an equivalent benefit in cash, if you are able to agree to an amount of equal value (taking into consideration car value, insurance, fuel, tax, etc). Finally, we would advise exercising caution in respect of requiring some individuals to work their notice and not others, in order to avoid any potential discrimination claims if treatment between employees is inconsistent.


We have an employee who has opted to work on an out-of-hours rota, giving him £500 extra per month. He is being dismissed and we want to pay in lieu of his notice. The payment in lieu of notice clause is silent on payments such as this; do we need to continue paying it?

therefore must be included in your payment in lieu to avoid a claim for breach of contract.


We operate an occupational company sick pay scheme of up to one month’s full pay. Part of the scheme requires that employees provide us with a fit note after a period of sickness of four days or more. I am aware that fit notes are not generally provided to patients until they are sick for seven days and that certain surgeries charge a fee to provide a sick note for sickness that is seven days or less. Are we correct in stating that it is the employee’s responsibility to provide a fit note after four days of absence, regardless of whether they are charged or not?


Employees are required by law to self-certify for the first seven days of illness, with a medical certificate being produced from the eighth day onwards. There is no requirement for a doctor to issue documentation until the employee has been off work for more than seven calendar days. Whilst your procedures state that employees have to produce a fit note after four days, this may be difficult for the employee (and in some cases impossible as a GP may refuse to provide a note). Furthermore, to expect them to cover any associated costs may be deemed unreasonable. As a compromise, and if you wish to maintain this part of your procedure, you may want to consider paying any fees incurred by the employee in producing medical evidence in compliance with your policy. If you wish to talk to Cate about payments in lieu of notice, medical certificates or any other HR issues, you can contact her at cate@121hrsolutions.co.uk or phone (0792) 121 3890.


For your payment in lieu of notice, the employee would have continued to work on this rota. Therefore, by exercising your right to pay in lieu, you are depriving the employee of a contractual benefit, causing him financial loss. This payment


Cash & Carry Management

• October 2013 • 23


Round one results


This league table shows the suppliers in contention for the Achievers ‘Best Overall Service’ award.




SCORE (max. 50)


AG Barr






JTI (Gallaher)



Coca-Cola Enterprises



Britvic Soft Drinks









Imperial Tobacco



Nestlé 1st Choice









Highland Spring






C&C Group



Whyte & Mackay









Red Bull






Cott Beverages






United Biscuits














• Cash & Carry Management • October 2013



Second stage scores How did these suppliers perform in September? Wholesalers in Scotland are invited to award each company points, which will go towards a final score at the end of the year. SEPTEMBER PERFORMANCE

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

Supplier Contact (max. 15 points)

Scottish Focus (max. 15 points)

Packaging & Merchandising (max. 5 points)

TOTAL (max. 50 points)

AG Barr Britvic Soft Drinks C&C Group

(inc Magners/Tennent’s)

Carlsberg Coca-Cola Enterprises Cott Beverages Diageo GlaxoSmithKline Heineken Heinz Highland Spring Imperial Tobacco JTI (Gallaher) Kellogg’s Mars Maxxium Mondelez Nestlé 1st Choice PepsiCo


(inc Walkers)

Red Bull SHS Tayto

(Golden Wonder)

Tunnock’s Unilever United Biscuits Whyte & Mackay

Company: ................................................................ Contact name: .........................................................


Please email your completed form to: kirsti.sharratt@virgin.net or fax to 01334 479695 Closing date: Friday 18 October

Cash & Carry Management

• October 2013 • 25

otc remedies

Self-medication drives sales Over-the-counter remedies are worth £204 million a year within the convenience sector. Value is up 8.6% year on year, outperforming volume growth of 6% (IRI MAT total market £ to 13.6.13). People are suffering from a range of conditions Cough medicine is another key sector within which they are increasingly choosing to self-medOTC. Worth more than £108m to the channel annuicate rather than seeking advice from a doctor. ally, cough medicine is growing by almost 7%, and “With the growing relevance of convenience Benylin produces over £37m in convenience sales stores in the lifestyle of the UK population (the IGD every year. reports that this channel is growing by 5% year on Increasingly the OTC market is seeing a decline year), and the increasing trend to self-medicate, it in products targeting single symptoms; these are is likely that the OTC market will continue to expebeing replaced by multi-functional remedies. “This rience the strong growth it has seen over recent is particularly relevant in the convenience channel years,” says Marcus Freer, managing director of where shoppers are looking to pop in and quickly SHS Sales & Marketing, which represents purchase a product to treat all their symptoms,” Johnson & Johnson in the convenience channel. says Freer. “It is anticipated that multi-functional “This growth will be led by the major branded products could add as much as £200,000 in increlines which shoppers know and trust to treat their mental sales to the category, with this growth ailments – especially those which treat a range of being driven by market leaders such as Benylin.” symptoms in one dose. Therefore, it is critical for Benylin Mucus Cough All In One tablets was the cash & carries to stock the leading brands and skus.” first product in the market to treat a range of sympJohnson & Johnson is the second largest toms with a single dose and it continues to perbranded supplier to the OTC category with a 12.6% form strongly, while Benylin Mucus Cough 150ml value share. Its products are growing by 5.6% targets the specific symptom – a heavy mucus annually, ahead of the 3.8% rise of the total OTC cough – which consumers state as being the most market (IRI MAT total market £ to 13.6.13). debilitating when suffering from a cold. Both prodNow available in a Sudafed is the leading decongestant brand ucts will benefit from an integrated campaign, case count of six. within the convenience sector and is worth over including new TV advertising, through this winter. £27m, accounting for almost a third of sales. The child pain relief market is worth £5.8m to the Decongestant sprays generate more than £25m in sales per UK convenience channel and is up by over 16% per year. year and represent the fastest growing sub-sector within Calpol has an annual value of £5.1m within this sector and is decongestants at +15.7% year on year (IRI MAT £ total demonstrating growth of 18%. “Cash & carries do not need market June 2013 HBA/OTC). to stock a wide variety of child pain relief brands as Calpol Sudafed Blocked Nose Spray 15ml is the leading sku in the will be easily recognised by retailers as the brand which their market with a 23.2% value share and it is now available in a shoppers will proactively choose to treat their children’s case count of six with an rsp of £4.07 – “making it a comailments,” says Freer. mercially viable case size for retailers with a price which The anti-diarrhoea market in the convenience sector is delivers a solid return,” according to Freer. worth £2m per year and is increasing by over 8%. Brand leader Imodium generates more than £1.9m in sales annually, with Imodium Capsules showing particularly strong growth of Category MAT to June ’12 MAT to June ’13 % change over 19% in the last year. 1. Medicated confectionery £32.97m £34.44m 4.5% Another brand leader is 2. Adult oral analgesics £32.61m £32.37m -0.7% Benadryl, which is valued at 3. Cold flu decongestants £15.06m £16.09m 6.8% £12.4m annually in the £82m 4. Smoking cessation £1.38m £9.16m 563% hay fever remedies category 5. Indigestion remedies £8.44m £7.88m -6.7% within the convenience channel. 6. Paediatric analgesics £5.31m £5.94m 12% Unless shown, all data IRI convenience 7. Cough liquids £5.51m £5.60m 1.6% market £ MAT to 13.6.13. 8. Condoms £3m £3.34m 11.4% GlaxoSmithKline Consumer 9. Anti-diarrhoeas £2.37m £2.41m 1.7% Healthcare fully recognises the 10. Hayfever remedies £1.93m £2.17m 12.6% importance of the impulse chan11. First aid plasters £1.93m £1.90m -1.7% nel and supports it with dedi12. Antiseptic liquids £1.25m £1.27m 0.9% cated resource. To help retailers

Top 12 categories in impulse

Source: Nielsen impulse sector June 2013


• Cash & Carry Management • October 2013

capitalise on the sales opportunity that the health and


From the NO. 1 selling decongestant brand*

*IRI HBA value sales 13 wks to 24 Aug 2013 ID:UK/SU13-2128

otc remedies wellness category represents during the key seasons – summer for allergy/hayfever and autumn/winter for cold and flu – GSK offers seasonal counter-top units. Available now is a unit that includes Beechams Ultra All in One Capsules, Beechams Ultra Hot Drinks and Panadol Advance Tablets. This follows a counter-top unit introduced earlier this year that contained Piriteze Allergy Tablets 7s and Panadol Extra Advance for pain relief. Panadol Extra Advance contains Optizorb technology, which helps the tablets break down more quickly. On average, shoppers purchase just under two packs of analgesic treatment products during 5.8 shopping occasions per year, presenting a significant sales opportunity for retailers (Kantar Worldpanel 52 w/e 30 Oct 11). “We are confident that placing the eye-catching counter top in highly visible areas, such as near the paypoint, during the key seasons will help to drive impulse sales for retailers,” says Georgina McElwaine, category controller at GSK Consumer Healthcare. Veno’s, which is owned by Forest Laboratories and distributed by Ceuta Healthcare, will benefit this winter from the return of the ‘She knows, he knows, Veno’s’ TV commercial. The campaign is expected to build on the growth achieved last year – ex-factory sales were up by 15% year on year (May 2012 to March 2013 vs previous year). Veno’s is available in three variants: Expectorant, for chesty coughs; Honey & Lemon, for tickly coughs; and Cough Syrup, for dry coughs.

Tips for wholesalers

• The

correct stockholding, in terms of bestselling skus and levels, needs to be adjusted with the seasons.

• Give retailers planogram advice for both summer and winter.

• C&Cs: at key times of the year, ensure that freestanding display units are positioned in high footfall areas (eg reception) to remind retailers to stock up.

• Advise

retailers to allow consumers to self medicate. Moving medicine fixtures to the front of the counter gives the consumer an opportunity to read the ’back of pack’ advice prior to purchase. This is an increasingly common trend that has helped drive sales.

• Secondary

sitings can increase rate of sale. Clipstrips, hanging cards and counter-top sitings are alternatives to on-shelf sitings and can lead to impulse purchases. Wholesalers that stock such solutions should benefit from incremental sales growth.

• Risk-free

purchase: remember that the average medicine has a 2-3 year shelf life.

• Widen your category offering. A common error is to over-face on painkillers and not allow room for smaller key categories, such as anti-diarrhoea remedies.

Source: Ceuta Healthcare


• Cash & Carry Management • October 2013

A ‘24 for 18’ promotion is running on wholesale packs of the Blackcurrant variety this winter.

“When consumers need early relief from their symptoms, price is not necessarily an issue and easy access may be more important,” points out Clare Young, group marketing manager at Forest Laboratories. “The challenge for convenience retailers is to cover the key markets and ensure good visibility. With familiar remedies, consumers are used to self-selection so they need not be hidden behind the counter.” PoS material is available to raise in-store visibility. Retailers can also take advantage of pre-filled freestanding display units. Fisherman’s Friend, which is distributed by Ceuta Healthcare, is aiming to make its brand even more compelling to wholesalers and their customers this winter with a ‘24 for 18’ (25% off) promotion on wholesale packs of its popular Blackcurrant variant, and a ‘24 for 22’ deal on the rest of the range. “The wholesale channel is absolutely crucial for growing sales of medicated confectionery and can be a key sales driver for retailers,” explains Martin Stimson, UK area business manager for brand owner Lofthouse of Fleetwood. “For example, sales of our Blackcurrant variant rocketed by 62.2% within the impulse channel during the last year. That compares with total growth for that particular flavour of 32% over the same period across all channels and really shows the opportunity for medicated sweets in convenience and impulse if retailers can make sure they are stocking the right range (Nielsen 52 w/e 22 June 2013). “It also shows the opportunity for wholesalers if they can ensure they are stocking the right options for their customers. It’s vital for wholesalers to maximise off-shelf sitings to capture impulse sales.” The wholesale & convenience sector accounts for almost half of Fisherman’s Friend’s total sales. The 2012-13 cough and cold season saw the brand secure a 4% uplift across all retail channels (Nielsen total coverage 52 w/e 2 March 2013). In the independent retail channel, the leader of the medicated confectionery category enjoyed its best January for at least 11 years, with a 26% increase in value sales (Ceuta Healthcare, trade sales Sept to April 2013). The company attributes the sales boost in part to a packaging makeover, which improved visibility on shelf and increased product appeal. Fisherman’s Friend is expecting further growth this




• Within the total market, Fisherman’s Friend is growing at +4% YOY* • Blackcurrant flavour – star performer in 2012, growing by +24% YOY* • Biggest-ever marketing campaign, including TV sponsorship, trade promotions, digital and PR • 94% UK brand awareness**

...AND STILL GOING STRONG! GET ON BOARD & STOCK UP NOW Source: *Nielsen Value 52 w/e 03/03/2013 **Gfk 2010

WWW.FISHERMANSFRIEND.CO.UK U.K. Distributor – Ceuta Healthcare: 01202 449 742

otc remedies winter across its comprehensive range. Original Extra Strong is still the most popular variant in the UK, followed by Blackcurrant, Aniseed and Cherry. Lemon has also helped boost the brand significantly in recent years. There are two other variants: Sugar Free Original and Sugar Free Mint. Fisherman’s Friend’s visibility will be bolstered by a new round of TV sponsorship worth £300,000 around a series of fishing shows on the Discovery Network, tapping into a key audience for the brand. The campaign, which started in September and runs until March, will see the brand secure 300 hours of airtime per month – 100 hours more than last season. This will be backed by an integrated marketing campaign comprising digital, social media, PR, sampling and in-store promotions. Also distributed by Ceuta Healthcare is Tixylix, which dominates the £10m paediatric cough liquids category with a 45% share (IRI all outlets 52 w/e 30 April 2013). Tixylix, produced by Novartis Consumer Health, comes in a range of variants, from baby to toddler, and includes dry and chesty cough remedies. Berocca vitamin and mineral tablets from Bayer have recently taken off dramatically within convenience. The brand is now worth over £20m, following significant success in the last five years and a £5m TV campaign throughout 2013. Berocca individual sachets were introduced in August specifically for convenience retailers. When purchased with a bottle of water, the new singleserve format can be taken immediately, without the consumer having to buy a whole tube. It is available in a counter-top tray, or a clip strip that is ideally sited next to the bottled water fixture. Halls Soothers, from Mondelez International, is in strong growth at 7.2% (Nielsen, total medicated, data w/e 18.5.13). This has been driven in part by the £2.5m marketing investment in April for the launch of Halls XS (rsp 75p). The new mini piece size is extending the brand into everyday consumption, which has delivered almost double-digit growth for the Halls range. The XS launch followed a successful 2012 for the Halls brand, which saw the introduction of a citrus variant and a £1.3 million ‘Breathe Deep. Stay Cool’ campaign in the autumn. Halls experienced 11% growth in the four weeks to 13.10.12 (Nielsen) and the activity extended sales of the brand beyond the traditional cold and flu season. Furthermore, in a regional trial, there was a 94% uplift in stores where a new Halls counter display unit was featured next to the tills. As well as XS, the Halls range includes Halls Extra Strong,


• Cash & Carry Management • October 2013

The mini piece format is extending the Halls brand into everyday consumption.

Blackcurrant, Sugar-Free Original, Sugar-Free Cherry, and Sugar-Free Assorted Citrus. There are also four Halls Soothers varieties: Blackcurrant, Cherry, Peach & Raspberry, and Strawberry. This year, Reckitt Benckiser’s overall advertising spend across Nurofen, Lemsip and Strepsils will be in excess of £12 million. The brands will be on TV and the focus of social media campaigns from October through to the spring. Lemsip, the No.1 brand in cold and flu with a 41.3% share (MAT 17.8.13), now has two new variants – Lemsip Max Apple & Cinnamon and Honey & Ginger – which join the established Lemon and Blackcurrant flavours. The new styles come in packs of 10 sachets with an rsp of £5.49. The Nurofen Cold & Flu range has been relaunched with new packaging and a £3.5m promotional campaign. Products include Nurofen Cold & Flu Relief and Day & Night Cold & Flu, which each come in packs of eight tablets (rsp £2.99) and 16 tablets (£5.49). The company also offers Nurofen for Children Cold, Pain & Fever (rsp £3.99). Covonia, from Thornton & Ross, is said to be the fastest growing cough brand in the cash & carry and independent/ convenience retail sector. According to IRI worldwide, it grew by 32% over the past year (56% over the past two years). “Covonia Dry & Tickly Cough Linctus is now the UK’s No. 1 selling dry & tickly cough formula and Covonia Chesty Cough Mixture Mentholated is the UK’s No.1 selling chesty cough formula,” reports marketing manager Ed Round. “As a dynamic sector of the UK market, cash & carry and independent/convenience retail remains a key sales channel for Covonia, with promotions and special deals being run throughout the winter. “The sector is unfortunately lagging about 5-10 years behind the overall UK market, which means independent retailers are missing out on potential sales by continuing to stock lines that they have always traditionally stocked. The bottom line is that they will be losing money by not stocking the UK’s favourites.”

For further information: Ceuta Healthcare (01202) 780558 GlaxoSmithKline Consumer Healthcare 020-8047 5000 Mondelez International (08702) 400861 Reckitt Benckiser (01753) 217800 SHS Sales & Marketing (01452) 378500 Thornton & Ross (01484) 842217


w e N

s am h ec Be o t



for First signs of cold & flu symptoms

Starts to

GET TO WORK in 5 mins*

* Based on absorption data. Refers to paracetamol absorption only. GSK data on file, 2012.

Presentation: Each tablet contains Paracetamol 500 mg and Caffeine 65 mg. Uses: Mild analgesic and antipyretic for common symptoms of colds and influenza, including headache, fever, sore throat and muscular aches and pains. Dosage and administration: Adults and children 12 years and over: Dissolve in at least half a tumbler of water. Two tablets up to 4 times daily as required. Not recommended for children under 12 years. Do not exceed 8 tablets in 24 hours. Contraindications: Known hypersensitivity to ingredients. Fructose intolerance. Precautions: Renal or hepatic impairment, non-cirrhotic alcoholic liver disease. Excessive intake of caffeine should be avoided while taking this product. Each 2 tablet dose contains 854 mg sodium – not suitable for patients on a low sodium diet. Do not take with any other paracetamol-containing products. Interactions: Domperidone, metoclopramide, colestyramine, warfarin or other coumarin anticoagulants. Pregnancy/lactation: Not recommended. Due to caffeine content of product it should not be used if you are pregnant or breast feeding. Side effects: Thrombocytopenia, agranulocytosis, anaphylaxis, hypersensitivity including skin rash, angiodema, Steven Johnson syndrome, toxic epidermal necrolysis, bronchospasm and hepatic dysfunction. Nervousness and dizziness. Overdose: Seek immediate medical advice even if patient feels well. Legal category: GSL. Product licence number: PL 00071/0448. Product licence holder: GlaxoSmithKline Consumer Healthcare, Brentford, TW8 9GS, U.K. Package quantity and RSP (excl. VAT): 16 effervescent tablets; £3.33. Date of last revision: June 2013. BEECHAMS is a registered trade mark of the GlaxoSmithKline group of companies.

hot beverages

New blends in demand The hot beverages market has grown by 4.5% in value in the last year (Nielsen MAT data to 13.4.13). Coffee is worth £997m and is increasing at 5.2% (Nielsen total value MAT to w/e 15.6.13), while the £630m tea sector is in slight decline. The hot chocolate & malted drinks category is valued at £138 million and is growing by 8% in value (IRI data 52 w/e 18.5.13). Although tea volumes are down and value growth is just 0.7% MAT, tea is second only to water as the leading choice of beverage (SIG Jan 2012). Unilever, whose PG tips brand is worth more than £158m, highlights the following statistics: Normal tea is the largest segment of the tea category, accounting for 90% of volume sales (NCBP UK 2012). Speciality tea accounts for more than 9.5% in value sales of the total tea category and is worth £58m. The fruit & herbal market is valued at over £63m and has grown by 13.5% in the last 12 months. The decaf market is worth £34m and has grown in value terms by 3.8% in the last 12 months. 39% of decaf tea consumed is at breakfast (NCBP UK 2012). Looking ahead, Kate Mitchell, PG tips brand manager, comments: “Habit is the main consumption and shopping behaviour driver for tea, so it’s likely that current trends will reign. Volume will remain flat, with shoppers trading more into the smaller fruit & herbal, green and speciality segments. These are beginning to see a slowdown in penetration, but ’super-premium’ brands in these segments are just starting to impact the market. At the more mainstream end, ‘premium normal’ will continue to grow as, again, it provides a product that many consumers are willing to pay more for.” Earlier this year, PG tips added a new variant, The Rich One, to its Premium range. Targeted at consumers who like a “full-tasting, indulgent cuppa”, The Rich One is a blend of

• • • • •


• Cash & Carry Management • October 2013

East African, Assam and Ceylon teas. It joins The Fresh One, The Strong One and The Mellow One in the Premium selection, which was launched in 2011 and is now worth over £5m. All variants are available in packs of 80, with The Fresh One and The Strong One also in 160s. As part of an £8m marketing investment in the PG tips brand during 2013, the company recently launched PG tips Cuppa Club, its first-ever loyalty scheme. A total of 28 million packs are featuring PG points, which consumers can redeem online through a specially created microsite or the brand’s Facebook page for tea treats such as ‘two for one’ afternoon tea experiences and premium teaware. Backing the promotion is TV, digital, instore and PR activity. To date, more than 50,000 people have joined the PG tips Cuppa Club. “The tea category is still showing decline despite continued and increasing promotions,” says Mitchell. “PG tips’ new Cuppa Club campaign is a direct response to this decline. By placing emphasis on encouraging consumer loyalty, we’re giving consumers a reason to buy tea at full price and driving rate of purchase – ultimately resulting in incremental sales for the category.” PG tips Decaf, which is currently worth £8.3m in value sales, benefited from a packaging makeover earlier this year, with stronger, brighter colours drawing attention to the brand. Packs also now boast the Good Housekeeping Reader Recommended stamp of approval. A £1m integrated marketing campaign, including outdoor and digital activity,


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hot beverages print advertising and PoS material, is backing the decaf variety this year. Commenting on the importance of the wholesale industry, Unilever’s channel controller Ian Toft says: “Unilever considers the wholesale channel a valuable tool that facilitates engagement with its consumers. PG tips performs well in the convenience sector and is available in channel-specific price-marked packs. Getting the basics right in the wholesale sector – such as stocking PMPs and smaller formats – will bolster sales for the category by providing retailers with the types of products their customers are looking for on-shelf.” All data, unless stated otherwise: total value sales IRI MAT 6.7.13

Looking for excitement According to Taylors of Harrogate, consumers are looking for new and exciting blends in the tea market – just as they did with coffee a couple of years ago. “As a result, the speciality tea market has grown by 7.7% and accounts for approximately 10% of all tea drunk, mainly thanks to Earl Grey and English Breakfast dominating the sector,” says John Sutcliffe, out of home & convenience controller. “Healthy teas such as infusions and green tea are doing well and are no longer seen as blends just for the January detox. In fact, sales are up by 15.7% and 19.7% respectively, with green tea fast becoming a core blend for retailers and foodservice customers alike.” Sutcliffe offers this advice to wholesalers: “A strong offering that includes mainstream, speciality, infusions and green tea is key to success, but with so many blends available choosing the right ones can be a minefield. Wholesalers can support their customers with clearly laid-out categories. “Promotions and free point-of-sale material are great for attracting new customers and for helping them to sell more and maximise profits. Customer magazines, as well as mail-outs direct to the customer base, are key to informing customers of the product range and any offers available.”

Yorkshire Tea grew by 8.4% in the past year and is now worth £67.2m, accounting for 15.9% of the market. “Yorkshire Tea’s priced-marked packs have helped drive sales in the impulse sector, appealing to the customer and communicating that they’re getting a quality brand at a great price,” says Sutcliffe. “It is for these reasons we’re committed to continuing this format across our 40s and 80s packs.” Taylors of Harrogate prides itself on offering the widest range of mainstream teas on the market under the Yorkshire Tea brand. Customers can choose the blend right for them from the standard blend, premium Gold, Decaf, and a Hard Water variant. Yorkshire Tea boasts a very loyal consumer base in the UK and globally. It has over 150,000 fans on Facebook and 30,000 followers on Twitter. For its partnership with East Coast Trains, the company developed a social media campaign, #teaonthetrain, which

‘The speciality tea market has grown by 7.7%. Wholesalers can support their customers with clearly laid-out categories’ John Sutcliffe, Taylors of Harrogate out-of-home & convenience controller encourages East Coast customers to tweet pictures of themselves enjoying Yorkshire Gold on-the-go. “We’ve had a fantastic response to it so far, and being able to tweet customers whilst they’re travelling adds another dimension to their East Coast and Yorkshire Gold experience,” says Sutcliffe. Turning to the coffee category, he reports that it is proving recession proof as the affordable treat, especially out of home. By 2015, it is estimated that 18,000 individual outlets will account for some £7bn worth of turnover (Allegra Strategies). “With the roast & ground coffee market growing by 9.4% in the last year alone, the market is ripe for wholesalers and their customers looking to profit,” he says. Sutcliffe reports that Taylors of Harrogate has a 17% share of the UK market by both value and volume. “Cash & carry customers stocking our Lifestyle range of filter coffees are doing very well with their hot drinks sales,” he says. The company’s Lifestyle offering includes Hot Lava Java, Take it Easy and After Dark. “Cash & carries do a fantastic job selling our range, particularly when passing on promotional discounts to retailers and caterers,” Sutcliffe concludes. All data, unless stated otherwise: Nielsen MAT 20.7.13

Black tea dominance

Yorkshire Tea grew by 8.4% in the past year.


• Cash & Carry Management • October 2013

While everyday black teas account for nearly 90% of the volume of tea sold, in the independent sector this rises to almost 97% (Nielsen Scantrack 25.5.13). According to Tetley GB, which is owned by Tata Global Beverages, Tetley remains the No.2 brand with a 22.1% volume share, behind PG tips at 28.4%. In Scotland, Tetley


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hot beverages is the clear market leader with a 44.4% volume share, nearly 30% ahead of its nearest rival of private label teas. Tetley is the only tea company to offer a strike-through priced pack, with £2.45 crossed out and ‘Now £2’ highlighted on Tetley Original 80s. The company also offers 160s with a price-mark of £3.25. The 40s pack is an ideal top-up item. Tetley recently announced a £1.7 million campaign featuring a ‘Find Sydney’ on-pack promotion. A total of 10 million special packs have been produced, offering a £1,000 prize in return for discovering a ’Find Sydney’ token in pack. The promotion appears on Tetley Original 240s, 160s, 80s, and price-marked 80s, as well as Tetley decaf 160s and 80s and Extra Strong 160s and 80s. Over 500,000 price-marked Tetley original 80s packs are available to C&C/wholesalers. In the out-of-home sector, 750,000 ’Find Sydney’ scratchcards are being distributed in promotional cases of Tetley ‘On The Go’. Each case holds 300 Tetley branded double-walled cups and sip lids, 300 non-drip drawstring tea bags and 300 scratchcards, plus promotional PoS material. Backing ‘Find Sydney’ is a heavyweight marketing programme, including TV, radio and poster advertising, PoS material, and secondary siting units for retailers.

BUYER’S VIEW FROM HQ Tracey Redfearn, trading controller at Today’s Wholesale, reports that the group traditionally performs well in the hot beverages category. She says: “This year, Today’s is in double-digit growth with three out of the four top suppliers in tea; this bucks the trend as everyone knows the tea market is flat. In coffee overall, we are in single-digit growth. Both categories are supported well by PMPs, which are vital in our sector. “Our range includes the full selection of hot beverages, from black tea to speciality and green teas, and from standard coffee to the café style, which now includes the new instant whole bean products. “Consumers are brand loyal in convenience but new consumers to the category are looking for a drink experience that the café style offers, including the various indulgent hot chocolate variants now available. “Tetley/PG 80s, Nescafé Original 100g, and Cadbury’s Drinking Chocolate 250g are must-stock items for ALL retailers, but the category requires innovation to sustain growth. Recent new products include Nescafé Azera and Kenco Millicano super-premium coffees and Wispa hot chocolate. “Hot beverages as a whole is supported well by suppliers. Retailers must ensure that they follow the category planograms to help maximise sales and profit.”


• Cash & Carry Management • October 2013

Tetley offers year-round support to C&C/wholesalers.

In the year ahead, Tetley will continue to offer pricemarked packs and extra-free deals along with a mix of activities, including TV sponsorship and social media campaigns, reinforcing the brand’s ‘Make Time, Make Tetley’ positioning. In the black tea sector, Tetley offers three innovative products. Extra Strong comes in 80s and 160s and is now worth £3.2m; Easy Squeeze is the renamed Tetley Drawstring brand, valued at more than £900,000; and Estate Selection is a high-value product aimed at discerning tea drinkers. Tetley continues to be the top branded decaf tea. Value sales of Tetley Decaf 80s are up by 3.5% in the market overall, 5.3% in Scotland and 10% in the impulse sector. Tetley Green Pure 20s and Tetley Green Lemon 20s have been developed specifically for the convenience sector. They are the only price-marked packs available in this sub category, with both at £1. Other products from Tetley are Blend of Both, combining everyday Tetley black tea with green tea, and Redbush – the 40s pack is the bestselling rooibos tea in the market. In the out-of-home sector, tea has become just as popular as coffee with consumers (Kantar WorldPanel). “Demand for new blends has crossed over into the tea market, where Brits have begun to explore new tea flavours at home, and the out-of-home tea market is now experiencing a similar demand,” points out Dorothy Sieber, Tetley marketing director out-of-home, Europe, Middle East, Africa. Tetley recently launched its Tea Academy to offer foodservice operators marketing tips, share expertise from across the industry and give advice on how to serve tea. To combat consumer opinion that takeaway tea is


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hot beverages often poor quality and messy to handle, Tetley introduced On The Go, a complete serving solution comprising teabags, doublewalled cups and lids. “Wholesalers can cash in on the benefits – more than one million cups were sold in the first six months after the product’s launch,” Sieber reports.

Just last month, Mondelez launched Cadbury Wispa Hot Chocolate drink to the out-of-home market, backed by a £2.7 million marketing package, including TV advertising. In retail, Wispa Hot Chocolate drink has outsold any other hot chocolate NPD in the last three years, with 78% of volume sales incremental to the hot chocolate category (Nielsen total sales to w/e 18.5.13). The whole bean instant category is Now available in an 850g caterNew for the out-of-home market. a key growth area in retail, and is ing tin, Wispa Hot Chocolate drink now worth £42.2m and growing at is prepared simply by adding hot 76.8% (Nielsen total value MAT to w/e 15.6.13). water. The product is Fairtrade certified. “Stocking top brands in the premium, super premium and Williams says: “Wispa Hot Chocolate drink brings a new, whole bean instant markets is a key way for independents to bubblier dimension to the instant hot chocolate market. With make the most of changing consumer habits,” says Zoe Cadbury the No.1 hot chocolate brand (Nielsen total sales to Williams, marketing manager at Kenco Professional, part of w/e 18.5.13), we think we’re in a great position to help to Mondelez International. “Wholesalers can educate retailers drive incremental sales as we’ve already seen in retail.” in this area, with good merchandising advice such as positioning the products on fixture from ‘good to better to best’ to encourage trade-up.” Nestlé Professional has introduced Nescafé Milano Lounge, Sustainability is another key issue for consumers, reports a touch-screen self-serve coffee machine that can deliver up the company, whose brands include Kenco and Carte Noire. to 400 drink combinations, including an extra shot of coffee, Instant coffee refill packs are growing much faster than jars, more chocolate, skimmed milk and various cup sizes. The at 54% versus 0.3% (Nielsen total value MAT to w/e 20.4.13). machine also shows the nutritional content of each drink. As in retail, sustainability and ethical practices are becomTo mark the launch, until the end of October the company ing of greater concern in the out-of-home sector, with operais visiting businesses up and down the country in a state-oftors expecting the brands they trust to act responsibly. Kenco the-art mobile ‘Lounge’, giving them the opportunity to see was one of the first mainstream coffee brands to source the machine, sample the beverage options on offer and 100% of its beans from Rainforest Alliance Certified farms. speak to the Nestlé Professional team. Earlier this year, and following the success of the Kenco Rewards Club in retail, Kenco Professional launched the scheme to business and catering customers. Rewards codes are available on all catering tins of Kenco Smooth, Kenco Rich, Kenco Decaff and Kenco Millicano. These can be exchanged for products chosen with the environment in mind or donated to Macmillan Cancer Support. The charity was also the beneficiary of Kenco’s support – for the fourth year running – for the world’s Biggest Coffee Morning event, which was held last month. Other recent developments from Mondelez include the launch of a 500g tin of Kenco Millicano for out-of-home operators. In retail, the product has seen significant success – it is now worth £23.4m and growing at 41.5% (Nielsen MAT to w/e 13.7.13). The brand has signed a sponsorship and product placement deal with the popular Channel 4 TV show, Sunday Brunch. Mondelez has also given the Kenco roast & ground coffee range a packaging makeover. “Our new packs show our strong links with our heritage – Kenco was founded as the Kenyan Coffee Company in 1923 – while bringing the brand right up to date with all the exciting innovations we continue to make in both the retail and out-of-home markets,” says Williams. In coffee shops, hot chocolate is still the second most Nestlé Professional is developing its out-of-home offering. popular drink after coffee (Allegra Strategies Sept/Oct 2012).


Plenty of choice


• Cash & Carry Management • October 2013


Lavazza QualitÀ Rossa the UK’s No1 Roast & Ground Coffee


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hot beverages Earlier this year, Nescafé Azera was launched by the company in the out-of-home channel. Available in a 100g tin, the product is designed to deliver the aroma, look and taste of a barista coffee, but with the ease of an instant. Lynn Little, ingredients lead, says: “As Nescafé celebrates its 75th anniversary, the appeal of instant remains strong as our convenience culture grows. Nescafé Azera marks the culmination of years of innovation and research. In essence, it offers a new generation of premium quality convenience.”

Convenient pack The rise in popularity of the out-of-home coffee market has led to a consumer desire to replicate that coffee shop experience at home, reports Lavazza Coffee. Roast & ground coffee in retail has grown by 7.3% volume and 9.4% value in the past year, with the sub categories of pods/capsules, beans and espresso driving the growth. Lavazza, which has a 12.4% volume share, has consistently outperformed the market, showing 8.4% volume growth. “The sub category of beans – up 13.4% in volume – is thriving due to the increasing volume of bean-to-cup machines being sold to the in-home market at affordable prices,” says Ben Reynolds, Lavazza in-home trade marketing specialist. To help retailers capitalise on this trend, Lavazza has launched Qualita Rossa Beans in a convenient 250g pack. “This is a must-stock for impulse retailers as the ground variant is the bestselling branded roast & ground product in the UK,” Reynolds insists. He adds: “Wholesalers must maximise their opportunity in the booming roast & ground coffee sector by ensuring that there is a roast & ground presence in both the retail and foodservice aisles. Wholesale customers will tend to visit the aisle in A ‘must-stock’ for impulse which they operate, so fearetailers. turing the key brands in both aisles is essential. Stocking a wide range of products by the best performing roast & ground brands in the retail aisle is key to unlocking sales for cash & carry/wholesalers.” Looking ahead, the trends of dining in and convenience will continue to play an important role in the retail landscape, says Reynolds. “Consumers look for affordable luxuries when dining in and premium brands are key in this shopper mission. Wholesalers must ensure their product offering in depot meets the needs of these consumers in the convenience sector, where a strong range of premium roast & ground coffee is essential.”

Aiming to change perception GlaxoSmithKline Consumer Healthcare has relaunched the £20.3m Horlicks brand with new packaging, updated on-pack claims and a new formulation, with the aim of helping to change the perception of the £143m malt category (Nielsen total grocery MAT to 20.7.13). GSK has also reduced the number of skus in the range, which now includes higher levels of vitamins C and E in the Light and Chocolate variants and more malted barley in the Traditional style. The message ‘packed with 14 key nutrients’ is featured on-pack. Liam Crause, Horlicks marketing manager, says: “As a category leader for hot milky drinks, we are committed to growing the category by developing a range that will drive penetration whilst retaining a strong and loyal consumer base.” Backing the relaunch is a £1m winter campaign called ‘New Look, Same Great Taste’.

More chocolatey Mars’ Galaxy hot chocolate range, available through Aimia Foods, now has a fresh look and a more chocolatey taste. Extra cocoa has been added to Galaxy Instant and Galaxy Frothy Top variants, and the new packaging has a more contemporary design in line with the revamped Galaxy brand. Worth almost £5m at retail, Galaxy Instant hot chocolate has a market share of 16% (IRI data 52 w/e 18.5.13). Galaxy Drinking Chocolate, the add-milk traditional hot chocolate, is also outperforming the market with growth of 15.8%, while Galaxy Frothy is up by 28% year on year.

Personalisation trend Some 800,000 British adults visit a coffee shop at least four times a week (Kantar Media TGI survey). DaVinci Gourmet sauces and syrups for coffee and hot chocolate fit with the increasing trend for personalisation of beverages. “Lattes now take up the largest share of the out-of-home coffee market and are the most prominent coffee for adding flavour to, with 48% of coffee drinkers more likely to pay extra to personalise a product (Kantar),” says marketing manager Anthony Wilkinson. Variation is key on a menu, he maintains, and Da Vinci Gourmet offers Chocolate and White Chocolate sauces, as well as a selection of syrups, allowing the creation of different flavour combinations.

For further information: Aimia Foods (01942) 272900 DaVinci Gourmet (01784) 430777 GlaxoSmithKline Consumer Healthcare 020-8047 5000 Lavazza Coffee UK (01895) 209750 Mondelez International (08702) 400861 Nestlé Professional (0800) 745845 Taylors of Harrogate (01423) 814000 Tetley GB 020-8338 4000 Unilever (0800) 731 1597

All data: Nielsen Scantrack MAT to w/e 20.7.13


• Cash & Carry Management • October 2013


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

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

For further information:

www.cashandcarrymanagement.co.uk tel: 01342 712100

PG tips remains the clear market leader in the normal black tea category. Continued success sees PG tips as No 1 by almost 10% (SIG Data July 2013)

PG tips is the most loyal tea brand. 34% of PG tips shoppers only ever buy PG tips (KWP July 2013) PG tips Decaf continues to show strong volume and value growth, performing ahead of the market at +10.4% (vs. category +5.3%) (IRI July 2013)

PG tips continue to support the brand by investing ATL in the launch of Cuppa Club, an on-pack loyalty scheme, as part of an £8 million investment for 2013 PG tips are passionate abou t their unique pyramid bag. This USP gives the leaves 50% more room to move, freeing the fresh PG taste – delicious!


Treats to suit every pocket Biscuits proves to be one of the most expandable categories in ambient grocery.

Optimum pack sizes and pricing solutions.

Burton’s Biscuit Company continues to drive investment and innovation across its power brands, enabling wholesalers to capitalise on the growing demand for some of the nation’s best-loved biscuits. A leading player in the UK’s £2.4bn biscuit market, Burton’s was responsible for 36% of value growth in 2012 (IRI total market share, MAT to 27 October 2012), thanks to its focus on its four power brands – Cadbury, Maryland, Dodgers and Wagon Wheels – as well as NPD. The symbols and independent convenience sector thrive on impulse purchases, with 50% of value coming from market segments that concentrate on the treat occasion. This provides a profit-boosting opportunity, and Burton’s advises wholesalers and retailers to stock treat and everyday treat lines such as Maryland SnapJacks, rather than making cheaper biscuit-barrel alternatives the main focus. “In these tough economic times, it’s easy for retailers to think that low-cost biscuit-barrel options will meet consumers’ needs, but that’s not the case,” says category & activation controller David Costello. “In symbol and independent convenience stores the vast majority of shoppers are buying biscuits on impulse, looking for the everyday treat that, more than any other supplier, Burton’s can provide.” Burton’s remains committed to focusing on pack formats, sizes and prices that will drive consumer demand.


• Cash & Carry Management • October 2013

“The key to unlocking this major growth potential lies in engaging consumers with a strong offer, retaining the core 17-45 age group via contemporary pack formats that fit with their lifestyles and snacking occasions,” Costello continues. “By offering optimum pack sizes and pricing solutions, we can help wholesalers and retailers to maximise sales. We’ll also continue to create excitement around biscuits through innovative NPD and investment in TV advertising.” Burton’s Biscuit Company’s advertising spend is far higher than its market share, and its contribution to category innovation is double its share of the market (IRI/UM MAT, core sweet biscuits excluding cereal bars).

Clear strategy Fox’s Biscuits has taken 17 of its best-selling products and optimised them for the convenience channel. The majority of the range has moved from the £1.15 rsp to a permanent price mark of 79p. This is a clear and competitive pricing strategy that will encourage consumers to pick up the packs and drive retailer volume. The 17 products include a number of lines that have previously been available with price marks.

A move to permanent price marks.

The convenience sector is growing at 4.6% year on year (IGD), with the channel predicted to be worth £43bn by 2017. Convenience biscuits are no exception, outperforming the market and nearly doubling market growth at 8.6% year on year. Visits to smaller, local stores are now part of the weekly routine, with 75% of all main shoppers using a convenience store at least twice a week and 50% visiting three or more times a week (IGD). The ‘little and often’ approach and rising fuel costs have driven consumers to stay local rather than heading to the larger, out-of-town superstores. A wider range and strong deals have improved consumer perception of convenience stores; however, expectations have moved to new levels. Brands must ensure that they offer the right range at a competitive price point and present their packaging in a way that appeals to the end consumer and the customers who purchase in wholesale outlets. Fox’s Biscuits is the market leader in the special treat sector and, for the first time, there are three indulgent products in the price-marked range at an introductory price of £1: Melts Viennese, Chunkie Cookies Milk Chocolate, and Chunkie Cookies Extremely Chocolatey.




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For the end consumer, all packs feature a flash with the manufacturer’s recommended price crossed out and the new, lower price below. The outer cases are designed to have great stand-out and clearly communicate the price and product range to wholesale customers. The new price-marked range also benefits from a wider packaging redesign of the Fox’s brand. The new ‘thought bubble’ logo reinforces Fox’s identity as an inventive and forward-thinking biscuit company. The redesign brings back a consistent look and feel across all ranges and makes the brand easier for consumers to navigate in store.

Packaging & presentation Mondelez International has launched a versatile new display unit specifically for the away-from-home market. The modular unit, featuring Belvita Breakfast Biscuits and Oreo branding and an eye-catching wicker basket look, allows operators to swap between two and four tiers according to their individual needs. The unit is capable of holding 12

packs per tier of either Belvita Breakfast Milk and Cereal (four-pack), Belvita Breakfast Yogurt Crunch (two-pack) or Oreo (six-pack or two-pack). Susan Nash, trade communications manager, comments: “Whether your customers want energy for the whole morning or an afternoon treat, a biscuit can be delicious at any time of day. By displaying packs in an attractive unit, operators can help to encourage customers to pick up their favourite biscuit when they need it most and to drive incremental sales.” For more information visit www.deliciousdisplay.co.uk or phone (0845) 603 8314. The total biscuits market is worth more than £2.36bn (Nielsen total MAT to w/e 27 April 2013) and comprises three main sectors: sweet, savoury and healthier biscuits. Oreo is the world’s best-selling biscuit (Euromonitor 2012) and is now worth £22.8m in the UK (Nielsen total value MAT to w/e 18 May 2013) – a value increase of 19.3% in 12 months. The brand continues to benefit from significant UK media investment, including high-profile TV advertising. Oreo is presented in two-biscuit snack packs that fit snugly in all types


• Cash & Carry Management • October 2013

of lunchboxes and are available in Original and Chocolate Crème as a 220g multipack of 10 with an rsp of £1.89. Other Oreo products also come in a range of convenience-specific packs, with the 154g roll-pack available with a £1.08 price-mark. Mini Oreo, which gives consumers all the taste of Oreo in miniature, is offered as a multipack containing six 25g snack packs – also ideal for lunchboxes.

The world’s best-selling biscuit.

New flavour Bahlsen Biscuits has added a new flavour to its best-selling range of Choco Leibniz biscuits. Choco Leibniz Caramel combines a thick, sustainablyfarmed chocolate topping with a layer of smooth caramel, which contrasts with the traditional crisp butter biscuit base. To launch the new flavour, Bahlsen has created six-packet cases for wholesalers and independent retailers, enabling them to stock the new variant in store and gauge the response without investing large sums up front. Choco Leibniz Caramel is also being launched with PMPs to increase consumer confidence in the brand. The usual rsp will be £1.99. Julien Lacrampe, trade marketing manager, says: “As our most popular biscuit, we were keen to enhance the Choco Leibniz range further. By adding a layer of caramel to the tried and tested formula, we’ve created a deliciously different biscuit. “The addition of the caramel layer adds to the indulgence – something that consumers have come to expect from Bahlsen. We conducted detailed tastings in the UK to ensure that we used exactly the right caramel in our biscuits, giving respondents a choice of different formulas – English caramel and Continental caramel. “After a wide range of tests encompassing texture, flavour, appearance and aroma on an audience of nearly 400 adults, we used the winning English caramel recipe, and we anticipate an excellent response,” he adds.

The latest addition to the range.


y t s a t y l h s i l i v e d w e n a g Introducin s t i u c s i B een

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•Halloween Sweet Biscuits saw 15% YOY Value growth in 2012* UK family spends £72 on food and decorations •The average for Halloween parties and trick or treating ** •Cadbury Halloween SKUs sales are incremental to all year round SKUs**


All Cadbury trade marks and copyright owned by Cadbury UK Ltd and used under licence * IRI Value Sales 6 wk w/e 3 Nov 12**Kantar Worlpanel, Total Grocery w/e 28 Oct 12

biscuits Bahlsen made a decision in 2012 to move to sustainably-farmed cocoa and now uses UTZ-certified cocoa for its Choco Leibniz brand as part of the company’s commitment not only to high quality ingredients but also to sustainable cocoa farming and the responsible management of natural resources. The new addition to the range is expected to further boost sales of the £10m brand.

Visible value The current economic climate has left consumers with less disposable income, and yet biscuits are still seen as inexpensive pick-me-ups or treats, with the immediate cost of the shopping basket taking precedence over long-term savings through volume deals. By stocking PMPs, wholesalers enable retailers to deliver this visible value-for-money on shelf.

Crawfords recently introduced a new range of PMPs.

United Biscuits (UBUK) has an extensive portfolio of PMPs spanning its sweet and savoury biscuit portfolio. From traditional family favourites like McVitie’s Milk Chocolate Digestives (£1.85 PMP for 300g) and Jacob’s Cream Crackers (£1.19 PMP for 300g) to individually packaged McVitie’s Medley and go ahead! bars (55p PMP), UBUK has a range of products suitable for any store. Healthier options remain popular with consumers. Guiltfree enjoyment and natural, additive-free and preservativefree products remain high on the agenda for many consumers, points out the company. McVitie’s Medley and the go ahead! range respond to this need and are available to wholesalers in both multipacks and convenient counter display units (CDUs), allowing customers to take advantage of impromptu purchases at the till. CDUs and individual bars are also available with PMPs, delivering visible value for money. Savoury biscuits are up 5% in value and are the fastestgrowing snack food segment. UBUK has helped to drive market growth in the savoury biscuits category with the launch of products like Jacob’s Oddities, which is already worth £9m. Ongoing innovation in on-the-go biscuits, savoury biscuits and breakfast has also recruited younger consumers into the market, driving relevance and helping to safeguard the future of the biscuit category. Up 3% in value growth, it remains valuable to retailers and wholesalers alike thanks to the annual 6.6bn consumption occasions – higher than cakes & pastries, snacks and confectionery. UBUK has a wide range of products that respond to the growing consumer need for on-the-go snacking. These include savoury biscuit lines like the new handypack variants of Jacob’s Oddities and sweet pick-me-ups such as McVitie’s Medley Rocky Road and go ahead! Forest Fruit Chocolate Thins variants.


• Cash & Carry Management • October 2013

McVitie’s Penguin packs now feature a new design sporting the Zoological Society of London (ZSL) logo. McVitie’s Penguin has committed to donating £80,000 to ZSL to help safeguard the future of penguins through its conservation research, monitoring, education and public engagement at ZSL London Zoo and ZSL Whipsnade Zoo. UBUK recently launched an addition to the McVitie’s Digestives portfolio: McVitie’s Digestives Cheesecake Creams, consisting of cheesecake-inspired cream fillings sandwiched between two midi-sized McVitie’s Digestive biscuits. The 168g roll-wrap range is available in two variants, Vanilla and Lemon, at an rsp of £1.36. The range is also available in a £1.19 PMP. Crawford’s celebrated its 200-year anniversary with a packaging redesign and a new range of 69p price-marked packs, including Fig Rolls, Garibaldi, Pink Wafers and Digestives. Crawford’s non-price-marked range is also being aligned to have an rsp of 75p and the selection has been expanded to include a Milk Chocolate Digestives 200g format, which is available at an rsp of £1.10 and in a PMP of £1. UBUK’s Halloween biscuits portfolio includes McVitie’s Mini Digestives Creepy Shapes and McVitie’s Minis Gruesome Gang, with each bag containing spookily shaped biscuits. With an rsp of £1, the McVitie’s Mini Digestives Creepy Shapes come in a multipack containing 6 x 150g bags. McVitie’s Minis Gruesome Gang is available in a carton that includes six two-biscuit portions. Mark Sugden, director market strategy and planning, comments: “Halloween presents retailers with a vital sales opportunity thanks to the growing trend for consumers holding seasonal events and families taking time to go trick or treating. “Enjoyed in 81% of UK households (Kantar World Panel 52 w/e 9 June 2013), McVitie’s has huge consumer appeal so it’s the perfect brand under which to launch new Halloween variants.” UBUK’s trade website www.ubperfectstore.com offers wholesalers a wide range of tools and category advice to help boost sales and profits. It includes a profit calculator, downloadable point-of-sale material, best-seller range guides, regular competitions and incentives, and selling tools to provide market insight and help give retailers a competitive edge.

Halloween presents ‘a vital sales opportunity’.


• Belvita Breakfast is the No.1 breakfast biscuits brand* • Provides energy for the whole morning** • Brand value growing at 40%*

• Oreo is the World’s No.1 biscuit brand† • A delicious afternoon treat ideal for on the go snacking • Brand value growing at 26%*

*Nielsen Total Coverage MAT 10.08.13 **Belvita Breakfast regularly release carbohydrates over 4 hours to keep you going all morning. Proven in several clinical studies when eaten as part of a balanced breakfast to include a piece of fruit and a portion of dairy. †Euromonitor 2012 OV8580


BUYER’S VIEW FROM HQ Haleem Sadiq, group negotiator at Bestway Group, says: “Biscuits account for around 10% of total grocery sales, making it a very important sub-category. “Although biscuits are an all-year-round purchase, autumn and winter months generally see sales pick up as the weather get colder and consumers start to purchase more hot drinks. There is a natural synergy between biscuits and hot drinks as more consumers buy into the comfort factor that a biscuit and tea or coffee delivers on a colder day. “Generally, trading has been solid. NPD will always increase interest among consumers, and with new products on the horizon, sales prospects look good for the remainder of the year. There are also sales to be had in the run-up to Halloween and Christmas – festive skus and larger assortments can offer extra sales opportunities. “There are a couple of key drivers in the category. The first is indulgence. Consumers expect more from their biscuit. Take, for example, the launch of Fox’s Caffe range and the success of chunkier, bigger-eat cookies such as Maryland’s Big & Chunky range. In response to this, we launched a range of Best-in cookies and initial sales are very promising. “There is then, almost by contradiction, good growth in healthy biscuits designed around breakfast which has become a sub-segment in its own right within the ‘healthier’ sector. This has been incremental to the category and continues to expand, with Belvita, Kelloggs and Weetabix all showing good growth. “The transition of biscuits into snacking is also a key trend, with more biscuit brands making their way into snack size. This is great news for the category as it takes biscuits into new areas, and therefore new users, which will expand the market. “Our chocolate biscuit bars category is performing exceptionally well and has grown 23% MAT. This has been driven by Burton’s Wagon Wheels and McVitie’s Club, which are both price-marked at £1. “Oreo cookies roll-pack continues to do well and is our number one sku, with sales growth of 83% MAT. This is a stand-out performer due to the fact that it’s a selfexecuting promotional pack with a strike-through pricemark of 54p (£1.08 is the ongoing PMP). “The £1.39 promotional packs on the McVitie’s everyday treat range, including Chocolate Digestives and Hob Nobs, are performing well at the moment. “We value all our key supplier partners who invest and support our biscuits category to grow our mutual business.”


• Cash & Carry Management • October 2013

Free-from range Free’ist, a branded range of products for the burgeoning ‘free-from’ market place, has been developed by GM Marketing in Northern Ireland. GM Marketing has joined forces with leading manufacturers to create the Free’ist brand of sugar-free cookies, biscuits, wafers, chocolate and jams aimed at the growing market for tasty treats, and for consumers with conditions such as diabetes. Several products in the range are also gluten free. Gerard McAdorey, managing director and founder, says: “Launching our own range of branded products is an immensely important stage in the development of the company and will allow us to build on our existing success and achieve even faster growth in our target markets of the Republic of Ireland and Great Britain. “We also plan to target other export markets where we will be looking to partner with like-minded companies to market our new brand.” He adds: “We set out to create a range of products that don’t compromise on taste. The priority of our product development team was on creating products with outstanding taste that just so happen to be sugar-free. Unlike many other sugar-free products, Free’ist foods give priority to taste. “We worked closely with experienced manufacturer partners and taste panels in the development of the new range of foods that combine quality, free-from status and taste,” he says. The new product range represents a significant investment in time and money by GM Marketing, and the brand has been well received by the trade in the UK and Ireland. Free’ist will be supported with a fully integrated communications campaign to help raise brand awareness and encourage trial. As well as chocolate bars and jams, the Free’ist range includes four cookies – Hazelnut, Choc Chip, Choc Striped Peanut, and Coconut – and two wafers: Chocolate Wafer bars and Chocolate Wafer sticks.

For further information: Bahlsen Biscuits (01753) 889822 Burton’s Biscuits (01727) 899700 Fox’s Biscuits (01772) 683501 GM Marketing 020-89026 7080 Mondelez International (08702) 400861 United Biscuits UK 020-8324 5000



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Seasonal sweet appeal Familiar favourites and new products maximise seasonal sales. Mondelez International, the number one confectionery supplier at Christmas (Nielsen Scantrack data 1.9.12 to 29.12.12), has new festive offerings and a packaging redesign across the range. Cadbury, the nation’s favourite chocolate brand (Nielsen value MAT to w/e 22.6.13), will be putting on its Christmas jumper with new ‘knitted’ packaging across its entire seasonal range, including the Cadbury Dairy Milk bar. The brand is also launching Cadbury Dairy Milk Winter Wonderland – a limited-edition bar of white and milk chocolate tree-shaped chunks. In addition, the self-eat category sees the introduction of Cadbury Dairy Milk Mousse Snowman – vanilla mousse encased in milk chocolate. Also new for Christmas is Cadbury Dairy Milk Freddo Popping Candy in four festive designs. Supporting these launches is Cadbury Wishes, the number one Christmas self-eat (Nielsen value sales MAT to w/e 29.12.12), which will be available in a 128g Little Wishes bag containing mini stars made of milk chocolate or with a truffle centre. As in previous years, 10% of all profits from Cadbury Wishes will be donated to Make-AWish. Rick Lawrence, marketing manager for Cadbury Dairy Milk, comments: “We have the number one seasonal range, the top three bestselling skus at Christmas and exciting innovation to drive growth. This year will also see our first-ever festive TV advertising New for Christmas from Mondelez. campaign.” Novelties are a key gifting line and Mondelez International’s range includes Cadbury Snowman and Santa hollows, as well as the number one selection box (Nielsen Scantrack data w/e 1.9.12 to 29.12.12). One in four households celebrate Christmas with a Terry’s Chocolate Orange (Nielsen unit sales 16 w/e 1.9.12 to 29.12.12), and this year a limited-edition White ball will be joining the Dark, Milk and Exploding Candy variants. Terry’s Chocolate Orange will also be available in a limited-edition sharing bag as Terry’s Chocolate Orange Minis. Toblerone will once again feature festive sleeves for the existing Milk, Fruit and Nut, Dark and White 400g skus. Mondelez International will be supporting retailers with a Seasons Made Simple initiative, which urges retailers to focus on bestsellers.


• Cash & Carry Management • October 2013

Trade communications manager Susan Nash comments: “With our Seasons Made Simple initiative we recommend a tight self-eat range, and retailers can boost this even further with branded PoS to highlight key products to customers.” For further information visit www.deliciousdisplay.co.uk.

Self-eat innovation Mars Chocolate has unveiled its plans for Christmas 2013. New products include the Merryteaser – a reindeer-shaped self-eat with a Maltesers centre. Following a successful first year for Galaxy Gift For You Truffle, the self-eat will be available in a white chocolate variant, which will be offered exclusively over the festive period. Mars has introduced two new tubes to its bestselling range: M&M’s and Mars twist wrap. Milky Way tubes have also been updated and now contain individual twist-wrapped treats. Nicola Lacey, central sales director, says: “We’re delighted to relaunch a range of Mars Chocolate seasonal bestsellers that continue to perform well year on year, as well as unveiling some exciting new products which we’re confident will become seasonal favourites. In particular, the self-treat category will be crucial to Christmas 2013.” Mars will introduce a Maltesers-led fun-size selection box, as well as an M&M’s-themed selection box. Mars advent calendars will feature new artwork. Celebrations proved to be the leader in boxed brands last year (SIG all grocery impulse outlets data to 52 w/e 29.12.12). It is worth £78m (SIG all outlets excl MOL & AOL 52 w/e 29.12.12). Another top performer in the boxed brand category, Maltesers comes in small and large boxes that make ideal gifts or stocking fillers. Mars’ top tips for this Christmas are: Embrace new individual festive items to maximise selftreat purchases. Create seasonal displays and festive in-store theatre to boost sales and encourage impulse purchases. Stock up now and make the most of the extended sales window throughout the season. Nostalgia is a key theme at Christmas, and stocking bestsellers from brands that consumers know and love will help to further boost sales.

• • •

Treat bar Lindor is the UK’s No.1 boxed chocolate brand (IRI major multiples value sales YTD w/e 20.7.13). To enable retailers to build on this success, Swiss chocolate manufacturer Lindt & Sprungli recently launched Lindor Treat Bar.


christmas confectionery

Building on success: the Lindor Treat Bar.

The 38g Lindor Treat Bar is already proving to be hugely popular and is one of the top 10 fastest selling single countlines in the market (IRI major multiples CWD value rate of sale 12 w/e 20.7.13). Lindor Treat Bar is benefiting from national TV advertising support and there will also be highly visible PoS material for major cash & carries.

Makeovers Ferrero Rocher, Europe’s number one confectioner (Nielsen June 2010), is launching seasonal NPD, a £6m TV campaign and a bespoke competition for independent retailers who could win the ultimate golden Christmas store. New Mini cubes are being introduced for both Ferrero Rocher, the number one classic boxed brand (Nielsen Scantrack 52 w/e 18.5.13), and Raffaello, which has grown by 39% year on year (Nielsen Scantrack 52 w/e 22.6.13). The company will also launch a new pyramid set. Kinder is giving its chocolate Santa figure a makeover. The new-look Santa will now be Kinder Surprise branded and will contain a toy. “Christmas 2012 was the biggest ever for Ferrero with sales soaring by 13% to £33m (Nielsen total coverage 17 wks to 29.12.12 vs. 17 wks to 31.12.11),” comments customer development director Levi Boorer. “This year we are looking to drive further growth through our bestselling range, complemented by NPD and a £6m marketing investment that focuses on Ferrero Rocher and Collection being perfect for those special sharing and gifting moments.” Ferrero is also running in-store competitions in impulse retail outlets around the country. Participating retailers will be in with a chance to win a store makeover, creating the ultimate golden Christmas store stocked with Ferrero product and bespoke PoS. Runners up will receive product prizes and special discounted deals.

Big brands focus Nestlé Confectionery will once again focus on its portfolio of big brands for Christmas 2013. “With the UK’s number one brand at Christmas being Quality Street, the number one after-dinner mint After Eight, the number one range of giant tubes, and the number one seasonal impulse product Quality Street My Purple Bar, Nestlé Confectionery is proving it has the winning formula for seasonal confectionery,” says trade communications manager Graham Walker. “For the wholesale and convenience channel our message is to stick to the big brands (the top 10 brands equal 62% of all Christmas sales), keep a focused range (80% of all sales come from just 25 skus), and invest in the right innovation as it generates 8% of all Christmas sales (IRI total market 20 w/e 29.12.12).”


• Cash & Carry Management • October 2013

Quality Street My Purple Bar has been joined by Quality Street My Green Bar – a combination of hazelnut praline covered in milk chocolate. Two new cartons for Christmas are Quality Street Fruit Cremes and Quality Street Toffees and Fudge. Quality Street is also offering two new gifts: Purely Purple Ones and Totally Toffee Fingers. Novelties is one of the most profitable areas within confectionery and new Christmas characters include a white chocolate Milkybar Snowy Owl, a Smarties Robin and a Milkybar Polar Bear Cub. The Smarties Supertube – a giant-sized tube packed with eight individual tubes of Smarties – will also be available this season, while targeted at those hard-to-buy-for men is the Yorkie Spirit Level, containing six full-size Yorkie bars. Walker concludes: “The main objective for cash & carries is to help retailers make the right buying decisions. I recommend they focus on the core ranges in depot with a special emphasis on seasonal impulse lines – the heartland of their customers’ businesses. In addition, depots should build big displays for the key packs from the well-known and trusted big brands at Christmas, which is what their retailers will be looking for.”

Unique offerings Last year’s Christmas bestsellers from Swizzels Matlow were gift tubes: Love Hearts, New Refresher and Drumstick. These were key sellers for retailers of all sizes and proved popular with customers as stocking fillers. Also successful was the Sweet Shop Favourites Tin, which offers customers a different sharing option from traditional chocolate. This year Swizzels Matlow is launching a Sweet Extravaganza tube, which features a variety of sweets in an extra-long festive-coloured tube, and a Sweet Shop Favourites gift box, containing a mix of Swizzels Matlow’s most popular products. Mark Walker, head of sales, comments: “We recommend that our three gift tubes should be a part of the Christmas range from September until December. Having unique offerings that are low cost and different from the chocolate alternative will help create interest and drive sales.”

For further information: Ferrero Rocher (01923) 690300 Lindt & Sprungli 020-8602 4100 Mars Chocolate (01753) 550055 Mondelez International (08702) 400861 Nestlé Confectionery 020-8686 3333 Swizzels Matlow (01663) 744144



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products & promotions Adult snack

Tastes of the sea YEARSLEY GROUP – Belfield’s fish and seafood brand Fisherman’s Pride has added Mussel Meat and Cooked Mussels in a Garlic Sauce to its range. Rope-grown in the waters of the Atlantic Ocean off the west coast of Ireland, the cultivated mussels are mixed with a sauce made of butter, cream and fresh chopped garlic and are presented in a 450g box. The Mussel Meat is imported from Chile and sold in cases of 16 x 180g. Sales director Ian King told Cash & Carry Management: “These products will bring retail customers a quick and easy quality solution to using mussels within gastro cooking and everyday cuisine.” Tel: Yearsley Group (01706) 694600.

Jam packed R&W SCOTT – The 340g Scottish Favourites preserves range has a fresh packaging design that emphasises the product’s Scottish heritage. The jar also features a black lid with a ‘jam packed with pride’ strapline, the Scottish flag and a wraparound label. The new-look Scott’s range is priced at 99p per jar and is available in four varieties: Raspberry, Marmalade, Strawberry and Blackcurrant. In keeping with the company’s revitalisation strategy, the Scott’s range has also been relaunched with a new brand logo, a black lid with a ‘flavour filled’ strapline and a coloured label highlighting the product variety. The new premium ‘Naturally Sweet’ range has three varieties: Strawberry, Raspberry and Marmalade. Tel: R&W Scott (01555) 777917.


RAISIO – Halo Foods has launched two new extensions to the Harvest-EEE cereal bar portfolio. As well as a new flavour variant, a range called Harvest Chunkeee will extend the brand into the adult snacking market. Harvest Chunkeee is an adult-sized cereal bar available in three flavours: Triple Choc & Nut, Choc & Coconut and Raisin & Biscuit. The 38g bars have an rsp of 59p and are sold in counter display units for an on-the-go snack. Harvest Cheweee Rocky Road has become the fourth variant in the Harvest-EEE range alongside Milk Choc Chip, White Choc Chip and Toffee Chip flavours. Tel: Raisio (0116) 287 3561.

Energy PMPs COCA-COLA ENTERPRISES – Monster £1.19 and Relentless £1 price-marked packs are available in the convenience retail channel for the rest of the year. In the four weeks to the end of June, sales of Relentless grew by 18.8% and Monster by 10.6% in independents and symbols, demonstrating that the packs are delivering strong sales for retailers (Nielsen, independents & symbols, MAT 4 w/e 29.6.13). The £1 pricemarked pack is available on 500ml cans of Relentless Origin, Apple & Kiwi, Lemon Ice and Sugar Free. The Monster £1.19 PMP is running across 500ml cans of Monster Energy Original, Ripper, Khaos and Rehab Lemonade. Monster Absolutely Zero also comes in the new priced can. As an alternative, Coca-Cola Enterprises offers all skus in a plain pack format. Tel: Coca-Cola Enterprises (08457) 227222.

• Cash & Carry Management • October 2013

Two for one BRITISH AMERICAN TOBACCO UK – Click-on capsule technology has been introduced across the entire Pall Mall range at existing prices – a first in the market. Adult smokers can retain the classic taste and characteristics of the current Pall Mall range or choose to click the capsule for a subtle fresh taste. Research shows that many adult smokers are keen to try capsule cigarettes but are unwilling to pay premium prices (Kantar GCS 2011). The brand is reflecting its commitment to provide more value by delivering two tastes for every cigarette format at no extra cost. Tel: BAT UK (01296) 335000.

On-pack offer HALEWOOD INTERNATIONAL – The independent drinks manufacturer has launched an on-pack offer to drive trial and sale of Lambrini fruit flavours. The promotion runs on 1.5-litre bottles of Lambrini Original and consumers stand the chance to claim one of 50,000 free bottles of Lambrini Fruits. Lambrini has four fruit variants: Apple & Blackcurrant, Cherry, Rosé and Peach, all of which can be claimed as part of the on-pack offer. Each promotional label includes a unique code to be activated online at lambrini.co.uk until 31 December. Successful entrants will be emailed a personalised, printable voucher to redeem against a 75cl bottle of one of the Lambrini Fruits flavours. The Lambrini Original promotional bottles are being distributed throughout the off-trade, including convenience stores. Tel: Halewood International 0151-480 8800.


products & promotions Festive treats

Ready to use

MARS PETCARE – Christmas 2013 will see the return of some festive favourites for pets, including Pedigree Advent Calendar, Dreamies Advent Calendar, Pedigree Stocking, Whiskas Christmas Stocking, Pedigree Limited Editions and Dreamies Limited Edition Turkey. According to the company, the care and treats category is worth £226 million. Last year Pedigree products accounted for 66% of total value sales of Christmas lines. Mars Petcare’s Christmas stockings also performed strongly, with the Pedigree stocking for dogs delivering almost a third of Christmas sales and the Whiskas stocking accounting for over half of festive sales in the cat category. Tel: Mars Petcare (01664) 411111.

JEYES – The outdoor cleaning brand has added a new pre-diluted product to its portfolio. Jeyes Fluid Ready to Use is available in two pack sizes: a 500ml trial size and a four-litre bottle. The launch is designed to attract new consumers to the range. The product is a convenient, prediluted version of traditional Jeyes Fluid. It is being supported as part of the brand’s ‘Fight Dirty’ campaign, which includes digital, PR and in-store activation aimed at increasing awareness, active trial and repeat purchase of the entire range. Jeyes Fluid Ready to Use is available to all channels with an rsp of £1.49 for the 500ml pack and £9.99 for the fourlitre pack. Tel: Jeyes (01842) 757575.

Turbo boost MULTIPLE MARKETING – Sunmagic is now the exclusive soft drinks partner for the film Turbo, released by Twentieth Century Fox from DreamWorks Animation. Consumers can also win a trip to Abu Dhabi in an on-pack promotion. The partnership is being featured on the following products: 200ml 100% Pure Orange Juice, 100% Pure Apple Juice, 100% Pure Pineapple Juice, and Apple & Blackcurrant Juice Drink; and 330ml bottles of 100% Pure Orange Juice and 100% Pure Apple Juice. The promotion also appears on Sunmagic 500ml PET bottles of 100% Pure Orange Juice and 100% Pure Apple Juice; and Sunmagic one-litre cartons of 100% Pure Orange Juice, 100% Pure Apple Juice, Mango Juice Drink and Pineapple & Coconut Juice Drink. Tel: Multiple Marketing 020-7326 7623.

Taste tour KP SNACKS – Phileas Fogg celebrates its 30th year with a new sharing range that brings ‘exciting taste experiences from around the world’ into store. The range includes six flavour combinations, such as Phileas Fogg Cool Sour Cream and Onion flavour Mexican Style Taco Rolls. According to the company, insights show that two-thirds of shoppers are looking for something ‘a little bit different’ to provide an interesting taste hit when sharing and enjoying snacks with others. Sharing is a clear area of opportunity and is currently worth £722m. The Phileas Fogg range offers retailers something new for their snacking fixture – a real point of difference for shoppers. Tel: KP Snacks (0845) 601 7583.

Fruity flavours PRINCES – The ‘from concentrate’ juice brand has invested in the £330m ambient juice category by launching four new variants to drive market growth. These include apple and raspberry, orange and lime, and apple and pear (all of which count as one of the recommended five-a-day). A fourth new product – cranberry and lime juice – has also been introduced. Apple and orange pure juice and blends account for 55% of the ambient juice market sales, followed by cranberry juice drinks at 13%. The new variants are available in Princes’ new pack design with a resealable, easy-opening cap that provides better grip and improved pouring.

Xbox link BRITVIC – To celebrate the launch of Xbox One, soft drinks manufacturer Britvic Soft Drinks and PepsiCo UK have announced a new partnership with Microsoft. Part of a heavyweight marketing investment for Mountain Dew, the activity includes an on-pack promotion across the entire portfolio, as well as the reintroduction of the limited-edition Game Fuel variant. The promotion offers consumers the chance to win an Xbox One console and is supported by PR, digital and experiential activity. In addition, £50 vouchers to spend at Microsoft online stores are on offer each hour. Mountain Dew Game Fuel is available in 500ml and one-litre PET bottles for a limited time only, and joins the Mountain Dew range as part of the on-pack promotion. Tel: Britvic (0845) 758 1781.

All data: IRI 52 w/e 22.6.13.

Tel: Princes 0151-966 7000.


Cash & Carry Management

• October 2013 • 55




SALES Great range for customers Selected packs with 25% extra! Less cash tied up in stock Ideal for the independent retailer

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