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MARCH 2012

Sterling and Landmark conclude relationship Leeds site for JJ’s eighth branch Recovery for 3663 but Bidvest hit elsewhere Batleys shines at Bestway awards

The business magazine for cash & carry/delivered wholesalers


contents How much do people matter? When a C&C/wholesaler – or any other company for that matter – unveils its trading results, you don’t have to be a City genius to deduce whether it’s performing well or badly. A glance at the ‘bottom line’ normally provides the answer. It’s less easy when it comes to staff changes. A new managing director, or someone of that ilk, could mean the present incumbent is retiring, moving on to a job he couldn’t refuse, or he fell out with his chairman or co-directors because he was deemed to have failed to lead the company to bigger and better things. Following a major personnel change at Brakes, where former UK chief executive Stefan Barden left after just a year in the job (Cash & Carry Management last month), more of our leading concerns have just issued details of staff comings & goings. At Makro UK, where a recovery programme has been put in place, md Jurgen Schwarze has assumed overall responsibility and new staff have been brought in; at DBC Foodservice, continuing a period of change, Andrew Ramsden has returned as chief executive, buying director Sue Cronin-Jones has left and Simon King has become buying & marketing director; and at Palmer & Harvey, there is a plethora of new appointees and titles – not on the wholesale side, but within the retail symbol division. For reasons best known to the companies involved, these changes were necessary. Whether they have the desired effect will be seen when details of their next financial returns are made available.

One of Sterling Supergroup’s leading wholesalers ... see p.4

news

Mustafa Kiamil, head of the expanding JJ Food Service ... see p.6

4–8 Sterling Supergroup pulls out of Landmark ... ‘More than 20’ Indian C&Cs for Booker ... Wholesaler’s md airs Olympics grievances ... JJ Food Service to open No.8 ... ‘Welcome recovery’ for 3663 ... Top changes at Makro and DBC ... Major awards for Batleys ... 27% of UK tobacco is illicit.

delivered achievers special

12–21

ice cream update

22–23

employment law

24

products & promotions

25–31

snacks & biscuits

33–42

laundry & cleaning

44–46

tobacco

48–54

Mervyn Gilbert

Managing Editor

Kirsti Sharratt

Media Sales Manager

Clare Phillips

Business Development Manager David Ford Publishing Director

www.cashandcarrymanagement.co.uk

10

focus on energy drinks

Editor

Mervyn Gilbert editor

9

Martin Lovell

4,555 July 2010–June 2011

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

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

Cash & Carry Management

• March 2012 • 3


news IN BRIEF

Groups go separate ways

Red Bull role Red Bull has appointed Andy Shaw managing director for the UK. He replaces Andy Trood, who had held the position for six years. Shaw joined the energy drinks supplier in 2004, becoming sales director, before moving to corporate roles abroad four years ago, latterly heading the business in Spain and Portugal.

Own brand up Landmark Wholesale’s own-brand sales increased by 26% in January compared with the previous corresponding month. Significant contributions were made by the group’s No 3 tobacco products and LSV energy drinks. Members who doubled their own-brand sales for the period included Restaurant Wholesale, United Wholesale and AJ Foods.

In at SalesOut Roger Harrison has joined C&C/wholesale researcher SalesOut as account manager, his work covering the convenience retail, foodservice and wholesale sectors. He previously worked for Marks & Spencer, Coca-Cola, GlaxoSmithKline and, most recently, Britvic Soft Drinks, where he held the post of operations manager. SalesOut has been growing rapidly since its takeover of JPA two years ago.

4

Sterling Supergroup’s withdrawal from Landmark Wholesale as an associate member (from the end of February) follows a link that goes back more than 20 years. The split was probably on the horizon for some time. When Sterling joined, its emphasis was on cash & carry, and Landmark was able to help it negotiate better terms in this channel. But over the years, it has been developing as a foodservice wholesaling group, introducing its own-label, Sterling Caterers Essentials, which has grown from a standing start in 2009 to one that is now worth almost £22m – up more than 33% on last year. Coincidentally, Landmark too has moved heavily into the foodservice arena, most notably over the past year with the recruitment of Country Range Group, with turnover of around £230m. This involvement could have accelerated the split with Sterling, whose 44 members have a combined £400m-plus turnover. Landmark, headed by

managing director Martin Williams, also has its successful Caterers Kitchen label, embracing over 400 products – of no interest to Sterling with its own burgeoning catering label. Vanessa Cooper (below), chief executive of Maldon, Essex-based Sterling, told Cash & Carry Management: “The board has decided that

it is the right time for us to become totally independent. “Our total turnover excludes sales by manufacturing companies owned by Sterling members and other

business interests unrelated to wholesaling. “Our business interests have changed considerably and our requirements in terms of support from branded suppliers is very different now.” The Sterling board consists of nine wholesalers, elected annually. Group chairman Brian Jones, who is also chairman of Castell Howell Foods, based in Llanelli, said: “We have been considering our position for some time. “Sterling Supergroup has an extremely proactive and successful membership and we have ambitious plans to move the business forward. “We feel that we will be able to do this more successfully as an independent group. “We intend to work closely with suppliers to ensure that we offer the best product ranges and promotions for our wholesalers and their customers.” Landmark Wholesale recently lost its oldestserving member, Andrew McMillan (Stranraer) when that company ceased trading (Cash & Carry Management: January). Tel: Sterling Supergroup (01621) 856300. Tel: Landmark Wholesale (01908) 255300.

Booker sets Indian target Now operating from three cash & carries in India (Mumbai, Pune and Thane), Booker has ambitious plans to expand across the subcontinent. Regional managing director Zunaid Bangee said that the target was for another

• Cash & Carry Management • March 2012

20 branches. The cash & carry/wholesaler opened its first Indian site (Mumbai) three years ago, with Pune following last year and Thane last month. Bangee denied talk that the branches would be attracting the public as well

as traders, saying: “We are a pure wholesaler. That is the model in the UK and the same concept will be adopted here. We will be supporting local retailers, not competing with them.” Tel: Booker Group (01933) 371000.

www.cashandcarrymanagement.co.uk


news

Contrasting results Latest figures from the Johannesburg-based Bidvest Group for the half year ended 31 December 2011 show that the European foodservice business (which includes 3663) produced sales of R20.3bn (£1.62bn), up 19.3% compared with the previous corresponding six months of just over R17bn (£1.36bn). Trading profit rose more modestly – by 2.3% from R370m (£29.6m) to R379m (£30.3m). The European division includes, as well as 3663 and Bidvest Logistics, operations

‘Welcome recovery’ for the UK business.

in Belgium, the Netherlands, Czech Republic, Slovakia and Poland. Group chief executive Brian Joffé commented: “In the UK, 3663 Wholesale staged a welcome recovery,

More Makro changes In further changes at Makro, managing director Jurgen Schwarze assumes overall responsibility for customer management. Reporting to him in this role is Sam Newton, who has joined from Asda, where she was head of advertising. Two internal promotions see Mike Baker becoming acting procurement manager of food and Otto van Harmelen appointed procurement & merchandising director of non-food. Recent changes at Makro

Ramsden is back

include Stephen Blan taking over as operations director and Jens Koppen as finance director. Commenting on the latest appointments, Schwarze said: “The customer is the focal point of our business and the centre of everything we do. “We are confident our customer-centric approach will continue to ensure that Makro UK returns to its position of strength.” Tel: Makro UK (0844) 445 7445.

Putting on a united front. Back, l to r: Stephen Blan, Mike Baker, Jurgen Schwarze, Otto van Harmelen and Jens Koppen. Front (left) Sam Williams (head of HR) and Sam Newton.

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buoyed by improved volumes, particularly in free trade, and Bidvest Logistics returned to profit on significant contract wins.” Elsewhere in Europe, however, Nowaco in the Czech Republic and Deli XL Netherlands reported drops in trading profit, but Farutex in Poland produced an encouraging result. Tel: Bidvest UK 020-7493 4733.

Wine festival Bestway is holding a wine festival from 30 March to 26 April across most of its branches. The event will feature more than 30 major branded wines, plus a selection from the cash & carry operator’s own Cellar Estates label. Wine negotiator Umar Sheikh promised customers “a combination of keen prices, rich variety, good margins and the all-important quality – the best that money can buy”. In addition to urging independents to take more interest in wine, the festival aims to encourage them to understand more about the product. Wine is reckoned to account for 36% of all drink sales (Nielsen EPoS data). Tel: Bestway Wholesale 020-8453 1234.

Andrew Ramsden (above), who led DBC Foodservice as chief executive between 2007–2010, only to leave the company, has returned in the same capacity. And following the recent departure of buying director Sue Cronin-Jones, the wholesaler has appointed Simon King buying & marketing director. He joins the £300 millionplus business after 13 years with Coca-Cola, latterly as associate director, strategic procurement. Reporting to King will be DBC’s buying, marketing and quality assurance teams. MD Chris Horne said: “Simon King brings with him the structure, rigour and vision of having worked for a major fmcg blue-chip company, attributes which will be extremely valuable in driving our buying and marketing teams forward.” Tel: DBC Foodservice (01707) 323421.

Value lines Landmark Wholesale has launched Lifestyle Value tuna flakes and facial tissues. Both products are price-marked at 59p. It has also introduced a non-priced version of LSV glucose orange (380ml). Tel: Landmark Wholesale (01908) 255300.

Cash & Carry Management

• March 2012 • 5


news

Spinks goes on air Michael Spinks, chairman of Hackney-based Essex Foodservice Group, was finally given the platform he wanted to air his grievances over the way he feels the wholesaler has been treated in planning for the Olympics programme at the nearby Stratford, east London, site. Appearing last month on a slot in the BBC regional news round-up, Spinks expressed his concerns how the build-up of traffic in the area during the world’s major sporting event will affect access to and from his depot. Most of his comments centred on the undoubted noise that EFG vehicles, and those operated by suppliers, would have on the local community should EFG decide to switch delivery times to the late evening and early morning to overcome the congestion.

Licensed deal Sanderson has won a contract to supply its Swords IT system to Preston Beer, supporting its growing product range and helping to manage all depot operations. The delivered wholesaler supplies beers, spirits, soft drinks and wines to the foodservice industry in the north. Swords was seen to deliver vital management and stock information, assisting Preston Beer to make replenishment decisions and maximise the use of warehouse space. Telesales teams will benefit from instant visibility of stock levels and information. Tel: Sanderson (0333) 123 1400. Tel: Preston Beer (01772) 312223.

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Will Olympics organisers deliver for east London firm?

Spinks, whose business narrowly missed out on compensation when the London Organising Committee for the Games paid for other nearby companies to be relocated, said he felt that the disturbance at his site could fall foul of the council. The programme makers also elicited the comments of two of his staff to obtain a

more rounded opinion. Now Spinks, who even stood as a candidate – unsuccessfully – in the General Election to gain support for his views, must wait to see if the authorities are sympathetic to his cause. Tel: EFG 020-8985 900. EFG will be holding a trade exhibition at London’s Alexandra Palace on 16 May.

Refreshing athletes Krystal Klear Spring Water, the flagship brand of Glasgow-based wholesaler Dunns Food & Drinks, will be the ‘water of choice’ at all eight Scottish championship triathlon events this year. Around 3,000 athletes, aged eight to 80, are set to race in the triathlon, duathlon and aquathlon competitions, which take place between now and October. Each will receive a free bottle of the water as part of their race pack. Jim Rowan, the wholesaler’s managing director, said: “As a triathlon enthusiast myself, I am delighted our water brand will be supporting the 2012 championship events. Several of our employees are involved with the sport.” Tel: Dunns Food & Drinks (01698) 727700.

JJ moves to Leeds for No.8 JJ Food Service will open its eighth branch in June – in the Morley district of Leeds. Chief executive officer Mustafa Kiamil said the £5.7m investment at the site includes “the latest in distribution technology”. The 37,000 sq ft depot will incorporate facilities to hold ambient, chilled and frozen goods, using two high specification cold rooms and a high-bay racked ambient area to maximise stock holding. Kiamil commented: “The development will deliver significant operating efficiencies, enhance existing distribution in the region and reduce carbon emissions through lower diesel

• Cash & Carry Management • March 2012

consumption.” As with other JJ branches, customers will be able to place their orders so they can be made ready for collection later in the day. The Morley site will ultimately have a staff of around 35 and will operate with five vehicles to start with, rising to 20 in September. The distribution territory will include Leeds, Bradford

and Scarborough, as well as Newcastle to the north. Managing the depot will be Richard Talty, currently in charge of the Aston (Birmingham) branch. The wholesaler’s other sites are in Enfield, Doncaster, Manchester, Birmingham, Sidcup, Bristol and Basingstoke. Tel: JJ Food Service (0871) 973 0999.

What the new Morley site will look like.

www.cashandcarrymanagement.co.uk


...Walkers has created the opportunity to bag some tasty sales with the introduction of a 49p price flash on single bags of your five core flavours communicating value to consumers. Research shows that price marked packs can help achieve positive price perceptions in-store, with an impressive 44% of consumers positively encouraged to buy an item when price marked1. For news and information visit www.pepsico.co.uk/trade Send us your tweets @PepsiCo_UKTrade #hurray49pWalkers Walkers and the Walkers logo are registered trademarks Š 2012. Recommended retail price only. Source: 1: HIM PMP Research August 2011. 2: Nielsen, Total Impulse, Scantrack, MAT 31.12.11.


news

Batleys steals the show While it was a night of many winners at the Bestway Performance Awards event, held in central London, it was the company’s Batleys operation which collected the major prizes. David Howe, manager of Batleys’ Edinburgh cash & carry, was judged manager of the year, collecting £2,000, a trophy and a certificate, and the Bradford depot picked up the £3,000 cheque for being branch of the year. Group chief executive officer Zameer Choudrey, before presenting the awards in conjunction with group managing director Younus Sheikh, told the 350 guests that the C&C/wholesale group was on course for turnover of £2.5bn this year, helped by the opening next month of an 80,000 sq ft Bestway depot at Team Valley, Gateshead (Cash & Carry Management: November 2011). The awards, which are held annually, are open to all of the 4,500 staff. There are 12 made to staff and two main ones to suppliers. Votes are awarded to those considered to have achieved the best results leading to an improvement in their all-round performance

With Bestway group chief executive officer Zameer Choudrey (left) and group managing director Younus Sheikh (right) are David Howe (second left), manager of the year, Batleys Edinburgh, and John Wales, manager of Batleys Bradford, which took the top branch award.

and in the way the business is run. Suppliers also cast their votes. The two supplier awards – decided by group management teams – were won by Coca-Cola Enterprises, which was adjudged supplier of the year (£2,500) and Kraft Foods/Cadbury, which took the most innovative supplier award (£1,500). Other winners were: Head office employee, Peter Brame, Batleys’ head office. Head office department, Bestway IT. White Pearl branch,

• • •

Bestway Derby. ‘Best-in’ branch, Bestway Manchester. Catering branch, Batleys Gillingham. Catering special achiever, Malcolm Campbell, Batleys Bradford. Bestway manager, Asim Qazi, Tottenham, north London. Batleys manager, Jason Longstaff, Sheffield. Bestway branch, Stokeon-Trent. Batleys branch, Newcastle (Chester-le-Street). Tel: Bestway Group 0208453 1234.

• • • • • • •

Energetic performance A Volkswagen Caddy van was presented to Glasgow retailer Rashid Abdul by Coca-Cola Enterprises as the result of a two-month promotion for Relentless energy drink in Batleys cash & carries. Retailers had to buy six cases to be automatically entered into the prize draw. Tel: CCE (08457) 227222.

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• Cash & Carry Management • March 2012

Rashid Abdul is ready to drive away after being presented with the car keys by Gary Thomson, manager of Batleys Glasgow.

Tobacco turmoil Estimates from Japan Tobacco International (JTI) show that 27% of tobacco smoked across the country is non-UK duty paid, resulting in a loss to the Treasury of billions of pounds. UK managing director Martin Southgate (pictured) said: “Although this latest data represents a continuation of a declining trend in NUKDP, we are very concerned that tax increases anticipated in the Budget on 21 March will increase cigarette and RYO prices to a level even further ahead of other EU countries such as Spain, Belgium and Poland.” He added: “Criminal gangs would welcome another boost to their ill-gotten profits and, with many cigarette packs sold in the UK now over £7, a fourth tax increase in two years will help them market their fakes to even more customers, including children. “There is a tobacco display ban on the horizon, and a consultation planned for the spring to discuss options to introduce uniform packaging. Increasing the tax just doesn’t make any sense. “Why make it easier for criminals to make money? “The Government should be helping us to eradicate this crime by using their powers to seize the profits made by these criminals and put them in jail for a length of time that befits this serious crime.” Tel: JTI (0800) 163503. See Tobacco feature pp.48–54

www.cashandcarrymanagement.co.uk


delivered

‘Best food supplier’ award 3663 was adjudged ‘best food supplier’ at the recent Beacon Shine Awards 2012 held in London, beating eight others who were on the shortlist. Beacon is a purchasing consortium acting for the hospitality industry. By winning, the delivered wholesaler met the following criteria: Great customer service Good pricing Strong relationships with the Beacon team Motivation to further the relationship with Beacon Offering customers added value, over and above service and price Solid testimonials from customers. 3663 was particularly commended for its bespoke pricing deals and ‘excellent customer engagement’. National account manager Simon Lawrence told Cash & Carry Management:

• • • • • •

At the awards ceremony are (l to r): Richard Lewis, chief executive, Interchange & Consort Hotels; Simon Lawrence, 3663 national account manager; and Chris Durant, managing director, Beacon Purchasing.

“We have been a key supplier to Beacon for over 10 years, working in close partnership to support each other to help our customers succeed.” Tel: 3663 (0370) 3663 000.

Health & safety deal 3663 has come to an agreement with Wycombe District Council, which covers the wholesaler’s headquarters in High Wycombe, whereby the local authority will act as its sole port of call for matters concerning health & safety. The partnership will apply to all 26 depots operated by 3663 in the UK, not just the hq. Shirley Duncalf, head of safety & sustainability for the foodservice specialist, said: “We have worked with the council since 1997 and have formed a strong relationship with them over the years. “The council is familiar with our business and how we operate, so it was natural

to form this partnership.” The link-up includes the creation of an inspection plan across the UK, with 3663 subject to checks carried out by various councils, who will then co-ordinate with Wycombe District Council. In a case heard in Reading Crown Court last year (Cash & Carry Management: April 2011), 3663 was fined £48,000 and ordered to pay costs of £14,000 in relation to an accident to one of its drivers five years earlier. The offence came under section 3 of the Health & Safety at Work Act relating to training. Tel: 3663 (0370) 3663 000.

www.cashandcarrymanagement.co.uk

New trio Country Range Group has launched three individual desserts. Available in cases of 12, the handmade, frozen trio comprises Triple Chocolate Melody, Lemon & Raspberry Charlotte and Caramel Toffee Topper. Brand manager Martin Ward said: “The idea behind the range was to have one that was just too hard to resist. Being frozen, the desserts are also extremely cost-effective.” Triple Chocolate Melody consists of three layers of Belgian chocolate with white, and dark chocolate truffle. Lemon & Raspberry Charlotte is a light lemon mousse filled with crushed raspberry in a fine coulis. Caramel Toffee Topper is a double chocolate sponge base topped with caramel mousse, soft toffee, honeycomb and meringue. Tel: Country Range Group (0845) 519 6181.

Help in the community Staff at Darlaston-based Blakemore Food Service raised £6,000 for the Specialist Palliative Care Nurse team based at the Walsall Palliative Care Centre. Their efforts took in fancy dress days, coffee mornings, competitions and cake sales. There was also a contribution from the wholesaler’s charitable trust, the Blakemore Foundation. In addition, employees of Blakemore Wholesale (representing the Birmingham, Walsall, Wolverhampton and Great Bridge depots) helped to redecorate Trident Reach Charity’s homeless accommodation in Birmingham. Their work took almost 200 hours of staff time, over two days. The premises offer temporary accommodation for 99 people as well as for 24hour support staff. Tel: AF Blakemore & Son (01902) 366066.

Soft drink partnership Palmer and Harvey is collaborating with Britvic Soft Drinks in trialling a new Robinsons Fruit Shoot outer which contains mixed flavours. Designed specifically for independents, the 24-bottle outer consists of the two best-selling Fruit Shoot flavours: orange flavour low sugar and apple & blackcurrant flavour low sugar – both 12 x 300ml. Tel: Palmer & Harvey (01273) 222100. Tel: Britvic Soft Drinks (0845) 758 1781.

Cash & Carry Management

• March 2012 • 9


achievers special

Scotland’s top supplier AG Barr celebrates its success at Achievers 2012 while not for one moment resting on its laurels. Three of the four highly coveted supplier awards up for grabs at Scottish Wholesale Achievers 2012 were won by AG Barr, which was also highly commended in the fourth category. Not only did the supplier take the top accolade of Best Overall Service, it also collected the award of Best Advertising Campaign for ‘Phenomenal Summer’, and one of its regional business development managers, Steven McGarry, was the proud recipient of Supplier Sales Executive of the Year. Last but not least, AG Barr was highly commended for its ‘BruJet’ initiative in the Project Scotland category. Commenting on the clutch of awards, regional business manager Stevie Ramage said: “AG Barr taking away three awards plus a highly commended at Achievers undoubtedly made 2011 our most successful year and was nothing short of ‘Phenomenal’. “You would think that after three years of winning the accolade of Best Overall Service our feelings would have become somewhat diluted. This couldn’t be further from the truth. Why? Our competitors are taking steps to improve their service and are clearly listening to the feedback from the wholesalers, and we are doing likewise.

The team from AG Barr collect the Best Overall Service award. L to r: Kate Salmon, executive director of the Scottish Wholesale Association; Keir Stewart, regional business development manager at AG Barr; Steven McGarry, RBDM; David Gibson, RBDM; awards host Catriona Shearer; Stevie Ramage, regional business manager.

‘Our competitors are taking steps to improve their service and are clearly listening to the feedback from the wholesalers, and we are doing likewise’ The winner of Best Advertising Campaign.

“As a team we strive to be the best at what we can do. I am pleased that the improvements we had made were obviously recognised by the SWA members. However the gap is closing, making winning that more special and difficult. “I can assure you that AG Barr will aim to secure a full house in 2013!” Steven McGarry added: “Thursday 9th February 2012 was a day I’ll never forget. To win the very first SWA Sales Executive of the Year award has to be the biggest achievement and accolade of my 24-year career and one of which I am very proud. “The most important thing for me is the acknowledgement from my customers during 2011 who recognise all the hard work I do day in, day out. “The continued support, added value and commitment are what drive me on. Relationships and trust are key to everything. Without relationships in business you have nothing to build success on.” Tel: AG Barr (01236) 852400.

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• Cash & Carry Management • March 2012

Stevie Ramage, AG Barr’s regional business manager

Steven McGarry, regional business development manager at AG Barr, receives the Supplier Sales Executive of the Year award from Bill Laird, managing director of Today’s Group, Kate Salmon, executive director of the Scottish Wholesale Association (left), and awards host Catriona Shearer.

www.cashandcarrymanagement.co.uk


www.irn-bru.co.uk

WINNER OF SWA ACHIEVERS

• The UK’s No.1 Flavoured Carbonate*

BEST OVERALL SERVICE 2012, SUPPLIER SALES EXECUTIVE OF THE YEAR 2012 BEST ADVERTISING CAMPAIGN 2012

• Phenomenal £2.5m brand investment to drive your sales in 2012

CALL US ON: 01204 664 295 * Nielsen Value Growth and Share 4wks - w/e 24.12.11 - Impulse GB


focus on energy drinks

Red Bull is the No.1 functional energy drink in the market ... see p.16

Stimulating growth Energy drinks recently overtook cola as the most valuable sub category in total impulse (Nielsen Scantrack total impulse value MAT to 28.1.12). Stimulant styles are driving the growth, with big brands and value lines all winning favour with consumers. “Energy drinks is the core growth category within soft drinks in both the total market and impulse. The energy category has added over £432 million to the soft drinks market, with growth nearly three times that of total soft drinks,” reports Zahir Abdullah, negotiator for the impulse sector at Bestway and Batleys. “Within impulse this growth has been even higher – energy drinks have grown at 18% and are now worth 24.6% of the total soft drinks market in this channel. In fact, in the last 12 weeks, they have overtaken cola as the most valuable sub category in total impulse (Nielsen Scantrack total impulse value MAT to 28.1.12).” Such is the importance of energy drinks that Bestway and Batleys advises independent retailers to allocate approximately 25% of space within the chiller to these lines. Bestway’s Zahir Abdullah: According to Abdullah, the “There is a need to trade fastest growth within the last shoppers up.”

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• Cash & Carry Management • March 2012

12 weeks has come from stimulants (up 30% in value) although glucose energy drinks are still in growth of 16%. For stimulants, most of this growth has been generated by value lines such as own-label and Boost. Meanwhile, newer brands such as Mountain Dew are also driving category growth. “The Bestway own-label energy drink, Stimulation, has been a runaway success and gives the independent a great margin of 38.5% on the 250ml can. All the sizes are pricemarked which also helps consumer reassurance,” he says. “The bulk of energy drink sales comes from full sugar variants,” he continues. “Within stimulant energy, the core pack is 250ml. Larger packs such as Red Bull 473ml and Monster 500ml have been developed to encourage volume trade up. For glucose energy, 380ml and 500ml are responsible for all the volume in this sector. The initial growth of energy shots has now diminished and is a small part of the industry.” Abdullah concludes: “In terms of the future, the growth of energy drinks seems to be here for some time, although there is a need to trade shoppers back up from value packs to more value-added packs. This will come from either driving the pack price up of value brands, or encouraging shoppers to trade up to bigger brands or bigger pack sizes.”

www.cashandcarrymanagement.co.uk


boostdrinks.com


focus on energy drinks 180 skus from 15 suppliers so it is well placed to serve the needs of its retail, on-trade and catering customers. Landmark offers a total of 14 skus in the LSV range, with the launch of LSV Juiced planned for May this year. In recognition of a signifiNew energy drinks are offered to Wallaces nearly every day. cant rise in the larger Wallaces Express, the largest independent drinks single-serve skus of 500ml, as wholesaler in Scotland, is seeing growth of 5% for energy well as litre bottles, Landmark drinks. recently added the LSV “While there are significant wins and losses brand by Energy 500ml can (pricebrand, the sector proves to be buoyant,” says purchase marked at 69p) to its range. A director Chris Cosh. litre bottle is price-marked at “The market leader has suffered slightly due to aggressive 89p. promotional activity from credible alternatives and also from Jon Burton, senior trading dramatically lower cost ‘no frills’ brands.” controller, own-brand, says: Landmark’s Jon Burton: He continues: “New products into this market category “The energy sector accounts “We are experiencing great are offered to us on nearly a daily basis. There have been for 20% of Landmark’s soft growth across all skus.” dozens come and go, and dozens more will do the same. drinks total and we are experiWhile we are keen to offer the trade a wide and varied range, encing great growth across all energy skus, especially LSV the volume still polarises to two or three brands with big where year-to-date sales (Jan ’11 to Jan ’12) are up by 39%.” brand recognition and marketing “The category as a whole is growsupport along with a couple of value ing at 18%, with branded energy drink alternatives. sales up by 16% in the year to date, “Price plays a significant part – and the market is still expanding its sku customers buy the brand leaders count into the branded portfolio.” because that is what the consumer He adds: “The top 10 skus account expects to be available; however, there for more than 80% of turnover.” has been an ever increasing demand Established 11 years ago by managfor a cheap alternative.” ing director Simon Gray, Boost Drinks Wallaces’ biggest pack format is still has developed into a £23 million Simon Gray, Boost Drinks’ the standard energy drink pack – 24 x turnover business, covering the stimumanaging director 250ml can. However, significant vollation, sports and glucose categories. umes continue to be achieved with The company operates from Leeds, sport packs, such as 12 x 500ml PET. Red Bull is Wallaces’ where Gray grew up and later opened a small wholesale best-selling single energy drink; Monster is the fastest growfood and drink business. ing and now in second place; and Emerge is the fastest “This gave me a thorough grounding in the nuts and bolts growing value line. of the trade. I also saw, as an energy drinks consumer, that The energy drinks category is up by 16% in volume and there was a gap in the market for someone who could offer 10.2% in value year on year within a different price point and pack format to what was already Blakemore Wholesale, reports senior available.” trading controller Steve Hadley. So Gray moved into the energy drinks arena, developing “By far, the best performing proda selection of products, ostensibly for the independent ucts have been our own-label range of sector. LSV energy drinks, in particular the This meant a close partnership with the cash & 250ml cans (price-marked at 35p) carry/wholesale trade, in which channel he claims to have which are up by 60% year on year links with the top operators, including the leading buying from a very reasonable base figure. groups as well as their members. “Furthermore, the newly introduced Last year Gray and second-in-commend Al Gunn, who is Berry & Tropical Isotonic product (in a business development director (formerly with Kimberly Clark 500ml bottle, priced-marked at 49p) is for 30 years), organised a display competition among C&C flying.” operators, which was well supported. Hadley continues: “It is evident that Boost has also made inroads into foodservice, establishthe value format has really driven this ing contact with DBC Foodservice and Compass. sector for us, with all of the gains comGoing back, Gray says: “We started in the stimulation ing from the lower priced end of the category, asking ourselves: what can we do differently to Up 60% with spectrum. Also, price marking has Red Bull? Blakemore. proved to be very popular, again rein“Then we went into sports drinks, competing with a very forcing the value proposition.” good product, Lucozade. And then we introduced Boost Blakemore Wholesale’s energy drink range incorporates Active in the glucose segment.

‘I saw that there was a gap in the market for someone who could offer a different price point and pack format.’

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• Cash & Carry Management • March 2012

www.cashandcarrymanagement.co.uk


because one size doesn’t fit all. 473ml

355ml 250ml

Different cans need different consumers.

This addition to the range has already

new consumers to the brand who prefer their

And vice versa, of course. Which is why

established itself as the best-selling large serve

energy drinks in larger volumes. All of which

Red Bull Energy Drink, the No.1 drink by

drink in the category,* giving Red Bull three

helps to maximise sales and increase profits.

value in the Impulse channel, comes in a range

Top 10 best-sellers.* By stocking them all

And that’s something, however different we

of sizes: the original 250ml, 355ml and the

you're giving consumers the choice they want

are, everyone can agree is good for business.

473ml can.

of the brand they love, and also introducing

* Nielsen Impulse CROS Singles w/e 31.06.10

Red Bull Gives You Wiiings.


focus on energy drinks “Ours is the first brand to cross all the categories,” says Gray. “And we have made it work. We have two or three lines among the top 20 skus in sports & energy. I will go on record as saying we are the No.2 for stimulation drinks in the impulse sector. “Our leading three products in terms of volume, in order – all in the stimulation category – are: 250ml can, 500ml bottle and one-litre bottle.” Boost, whose drinks are made by three manufacturers, markets under the brand only, with almost 80% of the range price-marked. Some also have an unpriced option while the others that are not price-marked are those bought by foodservice customers. Gray continues: “We have just upgraded our logistics system, using a third-party warehouse provider in Bradford. A fleet of liveried trucks Simon Gray: “We are No.2 for stimulation drinks in the impulse sector.” began transporting our goods nationally late last year. Stuart Agates, head of energy at CCE, comments: “AC “We see this as our marketing billboard,” he says, admitNielsen estimates the category opportunity for sustained ting his company does not have the same sort of budget as energy drinks is up to £500m and we are confident that, with Red Bull. “We also do sampling, online activity and exhibit at this great tasting and functional innovation from Powerade, trade shows, including those organised by Nisa, Sugro and we can help the energy sector to continue to build strong Confex. This is another form of advertising for us. It’s critical. momentum as the number one driver of growth for the soft “We are also joining the FWD, where we were awarded drinks category.” third place last year in terms of service to retailers.” CCE recently extended its range of price-marked packs for independent retailers to include Relentless and Monster (500ml, £1.39) and Powerade Energy (500ml, 85p). Coca-Cola Enterprises’ leading brand Relentless is now According to Red Bull Company, energy drinks is preworth over £63 million, having grown by 17.1% year on year. dicted as the main category driver within soft drinks over the Relentless Origin continues to be the best-seller within the next three years, with expected growth of around 8.4% in range, whilst the most recent addition, sugar-free Relentless each year (Mintel report/based on info resources). Libertus, accounts for nearly £4m in sales. The line-up also Sports & energy is one of only two soft drinks categories, includes Inferno, Immortus and Devotion variants. alongside fruit crushes, showing value and volume growth in Another key brand is Monster, which is now worth £52m, independents. Indeed, it is currently up by 8.9% (IRI total having experienced growth worth £17.9m in the last year. independents 29.10.11). The Original style continues to drive the brand forward, The company states that, within sports & energy, the top generating £12m in sales, and Monster has also boosted four brands – Red Bull, Lucozade, Lucozade Sport and incremental value with its 50% juice variprivate label – deliver 69% of value sales ants Khaos and Ripper. (All data: Nielsen (IRI total independents 29.10.11). “This total universe value sales 52 w/e 31.12.11.) shows that consumers look to the most Last year, Powerade expanded into the recognisable and trusted brands when energy sector with Powerade Energy, the seeking energy,” says trade communicafirst soft drinks product positioned to protions manager Tom Smith. “This is evident vide consumers with ‘dual energy’. It conin the most successful NPD launched last tains fast absorbing glucose plus caffeine year in the category which was Red Bull to help deliver energy and focus, and also 330ml bottle, Lucozade Blackcurrant and provides a blend of carbohydrates plus Lucozade Sport Lite.” caffeine to help sustain performance. Smith comments: “Wholesalers and With added b-vitamins, Powerade cash & carries are enjoying a successful Energy is available in two variants – time with sports & energy. There are, howSparkling Berry and Sparkling Orange. The ever, some big opportunities for further product has added over £7m of sales to the growth by adapting range and space to fit brand since launch. Powerade will continue the current landscape. to benefit from a significant marketing “Soft drinks are the most frequently campaign throughout 2012 including tv purchased category for retailers in depots Gives consumers ‘dual energy’. advertising and national sampling. and make up 18% of a retailer’s spend

Relentless performance

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• Cash & Carry Management • March 2012

www.cashandcarrymanagement.co.uk


. FIVE OF THE UK’S TOP FESTIVALS. FIVE FLAVOURS OF LUCOZADE ENERGY. . 92 x FESTIVAL ROAD TRIPS TO BE WON, INCLUDING TRAVEL AND CAMPING TICKETS. . HUGE £2M** CAMPAIGN, INCLUDING OUTDOOR, RADIO, DIGITAL AND IN-STORE. . AVAILABLE ON SPECIALLY MARKED PACKS OF LUCOZADE ENERGY (380ML, 500ML AND 1L).

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*Lucozade Energy is the No.1 Energy Brand in the UK. Total Coverage 24.12.11. Value Sales Source: AC Nielsen ScanTrack **MediaCom 2011. LUCOZADE, LUCOZADE ENERGY and the Arc Device are registered trade marks of the GlaxoSmithKline group of companies.


focus on energy drinks (him! retailer study 2010). As sports & energy other brand within the sports and energy sector in is the largest category within this, and the fastest 2011, with sales up 2.9%, clearly demonstrating growing, depots should look at their fixtures to make that Lucozade remains the No.1 sports and energy sure they’re reflecting this. drink in the UK (Nielsen total coverage data to “It’s also recommended that they look at how 7.1.12). much space they are giving each sku. 183 products “Energy drinks have seen a particular boom registered sales in the past 12 months; however, within the impulse market and wholesalers are a over 50% comes from just eight skus. Depots key channel for GSK in achieving a route to market should consider the value each sku is delivering to and getting our products on the shelves of the indetheir business and help retailers understand which pendent retailers,” says long-term strategy director products are must stocks by making core range Colin Seymour. recommendations. He adds: “A raft of non-stop, innovative NPD and “Value to the category is being driven by the on-pack promotions and the highly successful YES market leading, branded products but there is a role campaign from the leading brand throughout 2011 for value brands too. However, depots should conhave been a key factor in propelling this growth.” sider the interests of their customers by supporting Lucozade introduced its first cola flavoured varithe brands that drive good cash margin and ant at the end of last year and this is already the profit and not trade customers down to cheaper best-selling new flavour launch within the segment alternatives.” in the last three years (Nielsen total coverage latest The successful 330ml bottle. Availability is also key, insists Smith, who adds six weeks w/e 26.11.11). And following the launch that 23% of retailers failed to buy an intended item of Lucozade Energy Blackcurrant in early 2011, 60% in depot, with 12% of this being soft drinks (him! retailer of sales were incremental to the category after just 20 weeks study 2010), so reviewing fixture space could help rectify (Kantar Worldpanel, 52 weeks to 11.7.11, take home). this. More recently, GlaxoSmithKline has unveiled Lucozade Red Bull is the No.1 functional energy drink in the market, Revive and Lucozade British-themed variants. and the range of Red Bull skus all feature in the top 20 sports Lucozade Revive is a lightly sparkling, energising drink & energy products list as they all fit different usage occacontaining B vitamins and only 50 calories per bottle. It has sions. been specifically developed to meet demand from conAvailable to independents are the iconic 250ml can, plus sumers aged between 23–35 for a light energising drink with 355ml and 473ml cans and the new 330ml bottle. Also availreduced calorie content. able is Red Bull Sugarfree which has all the benefits of Red With vibrant packaging, Lucozade Revive is designed to Bull with only eight calories. Sugarfree is being backed by a stand out from the current offerings in the category £2 million investment in 2012. During this year, Red Bull will be highly visible at Red Bull Racing in Formula 1, and also at hundreds of events around the UK across sport and culture as well as through an in-depth athlete programme. Consumers will have access to these events where they can experience the Red Bull brand first-hand.

Biggest this year The biggest on-pack offer this year for the Lucozade Energy brand has just been unveiled by GlaxoSmithKline. The ’Win a Festival Road Trip Every Day’ runs until the end of May and offers consumers the chance to win tickets for ‘you and two mates’ to a top UK festival: Beach Break Live, T in the Park, Global Gathering, Latitude or V Festival. Backed by a £2m marketing campaign, including a threemonth radio partnership with Kiss FM, the promotion is designed to capture the attention of 16-34 year olds who are the main audience at music festivals. Pack formats featuring the promotion are 380ml (including price-marked packs), 500ml and one-litre bottles (excluding price-marked packs), as well as 6 x 380ml multipacks. GlaxoSmithKline reports that the energy drinks category is growing by 16.7% year on year, with Lucozade Energy up by £14 million in the past year alone. The total value of Lucozade Energy is £247m and this is growing at 6.1%. Lucozade delivered more growth than any

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• Cash & Carry Management • March 2012

Designed to tap into demand for all things British.

www.cashandcarrymanagement.co.uk


...FOR ROCKSTAR IN 2011 – UP 36%* *SOURCE: NIELSEN W/E 24.12.11 LATEST MAT, VALUE GROWTH – TOTAL IMPULSE

SUPPORTED BY £2M BRAND INVESTMENT

- INCLUDING SPONSORSHIP OF THE 2010 MOTOGP WORLD CHAMPION, JORGE LORENZO

GREAT VALUE PRICE-MARKED PACKS AVAILABLE THROUGHOUT 2012 NEW 500ML PET XDURANCE AVAILABLE IN TWO GREAT-TASTING FLAVOURS

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focus on energy drinks while retaining the brand’s distincRockstar introduced Original and tive bottle shape. The drink comes in Juiced 500ml variants in the UK in 2007, Lemongrass with Ginger and Orange and then added Guava Punched and with Acai variants, in 380ml single botEnergy Cola – the UK’s first colatles (rsp 99p) and four-packs (rsp £2.99). flavoured energy drink. Supporting the launch is a £6.1 milThe range also includes Rockstar lion investment, including TV, outdoor Recovery, which is formulated with and press advertising plus digital and Rockstar’s usual energy-giving ingredisampling campaigns. ents plus electrolytes and a refreshing “Low calorie NPD, like Lucozade still lemonade flavour, making it ideal for Sport Lite, has been a key driver of rehydration and thirst replenishment. growth in the sports drink segment and AG Barr added a touch of style to the Revive is set for success by offering energy category with the launch of something completely new and relevant Rockstar Pink, the first energy drink to to consumers who don’t currently drink be targeted specifically at women. energy drinks,” says senior brand “Rockstar Pink made an immediate NPD has been the key driver of growth. manager Sophie Birrell. impact,” says Troy. “Containing just 10 The launch of two limited-edition calories and served in a 355ml can, it is British themed variants of Lucozade – both featuring Union proving popular with women seeking an energy boost withJack packaging – will help retailers to capitalise on the out the associated high sugar content. The hot pink can expected huge consumer demand for all things British this creates impressive stand-out on shelf.” year, says GlaxoSmithKline. The most recent addition to the Rockstar portfolio is Lucozade Sport Summer Fruits is available in a 500ml Xdurance (500ml), which contains electrolytes, caffeine and bottle, a 500ml 99p price-marked pack and a 4 x 500ml Vitamin B complex and is aimed at shoppers seeking an multipack, while Lucozade Energy Mixed Berries comes in extra boost ahead of activity or exertion. 500ml, 380ml, a 380ml 95p price-marked pack and a 6 x Troy comments: “NPD has been the key driver of growth 380ml multipack. in the energy category and this trend is set to continue. Value Looking forward, Seymour says: “2012 is expected to be will also be a key focus as some consumers seek affordable a year of strong growth for sports and energy drinks (our alternatives. If retailers offer a value tier alternative, priceforecast is +14%) driven by a year of major sporting events, marked packs and stronger promotional activity alongside with not only the Olympics but also the Euro 2012 Football premium brands, they will see their profits grow.” Championships.” AG Barr is promising an exciting year for Rockstar, includAG Barr reports that the energy drinks market is currently ing innovative NPD and high-profile PR and marketing activvalued at £933m and is growing at 13% year-on-year. This ities, such as its continued sponsorship of MotoGP racer growth is being driven by ‘stimulation’ energy drinks which Jorge Lorenzo. account for 50% of all sales (Nielsen Scantrack total UK coverage 52 w/e 3.9.11). This includes brands such as Rockstar which is experiencing 36% growth year-on-year (Nielsen According to Global Brands, 2011 was a superb year for Kick Scantrack, value sales energy drinks, 12 wks to 24.12.11 total Energy. impulse). Marketing director Simon Green comments: “Following “Drinks presented in the ‘big can’ format are performing strong distribution in the on-trade, we are seeing an ever particularly well,” points out AG Barr’s head of marketing increasing level of success within the off-trade. Adrian Troy. “Listings with Asda and Martin McColl have boosted trade and consumer awareness for the brand, and at 109% growth, Kick Energy is now the No.1 performing functional energy drink in the off-trade.” (Global Brands ex works MAT Dec 2011 IRI MAT Oct 2011 total grocery.) Green reports that the off-trade, which is currently growing at 17.2%, is outperforming total energy drinks growth. (Global Brands ex works MAT Nov 2011, Mintel energy drinks report Sept MAT 2011.) “This highlights the importance of energy drinks as part of the make-up of a cash & carry’s offering,” he says. “To take advantage of this booming sector, the trade should give energy drinks the space and focus they deserve, and provide a range which appeals to primary energy drinks users, ie males aged between 16 and 34. “It’s also important to ensure that the most popular Kick Energy is seeing increasing success through the off-trade. and recognised brands are stocked in order to drive sales.

Increased awareness

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• Cash & Carry Management • March 2012

www.cashandcarrymanagement.co.uk


focus on energy drinks Stocking cheaper brands with no identity or marketing support behind them can actually be detrimental. Quality can shift more volume and maintain a higher level of value.” Green continues: “To encourage impulse purchases, use cross-promotions with other categories, such as snacks and spirits, to educate consumers on different drinking occasions.” Global Brands maintains that Kick Energy offers added value because of its links with gaming and ‘gamers’, who account for 68% of all energy drinks consumption. “There are 5.9 million gamers in the UK; of those, 3.9 million are heavy energy drinks users who regularly consume energy drinks in the home,” says Green. To connect with this gaming market, Global Brands launched on-pack promotions and partnerships with three of the most highly anticipated video games of the year – Mountain Dew is now worth £18.3 million. Bulletstorm, Duke Nukem Forever and Batman Arkham City. To further drive this link, Kick Energy was highly visible at the UK’s most influential gaming events, including The Awareness levels of Mountain Dew Energy from Britvic Gadget Show, GAMEfest and Euro Gamer, and will be again have been driven by marketing investment, including online, in 2012. with the brand’s Facebook page coming in the top 15 for “The next gaming partnership, which goes live this food and beverage in the UK (www.socialbakers.com). month, is in the final stages of development and will be A through-the-line campaign will be launched later this bigger than Bulletstorm, Duke Nukem and Batman put year to boost further the brand’s profile with consumers. together,” Green promises. Since its introduction in May 2010, Mountain Dew has Aimia Foods argues that the increase in different flavours added £6.4 million to the energy category (Kantar FOTG of energy drinks, which are securing panel and Nielsen value sales total impulse to 3.9.11). The shelf space, are not delivering the brand is now worth £18.3 million (Nielsen value data to expected rate of sale that their space 24.12.11). should demand. “People predominantly Mountain Dew Energy and Sugar Free Mountain want to buy the original flavour which Dew in price-marked 440ml cans are exclusively accounts for 87% of the market, and this available in wholesale and are intended to broaden is why brands like No Fear are experthe appeal of the brand alongside the established iencing such growth,” says brand 500ml PET format. manager Neal Haworth. Britvic is helping retailers to create atten“There’s also an increasing trend for tion-grabbing signage by distributing PoS resealable containers as many energy material for Mountain Dew Energy drink consumers live hectic and busy through the trade press. lifestyles. No Fear was the first brand to In addition, the supplier plans to bring out a resealable can which keeps increase distribution of the brand using the drink fizzy for up to 24 hours. Other its sales force, who will offer retailers brands have started to package their expert advice on how to maximise the energy drinks in bottles too.” sales of their energy offering this year. Over the last 12 months, the No Fear “Signposting Mountain Dew Energy inbrand has grown by over 218%. Haworth store really gives sales a boost, which is adds: “No Fear delivers great rate of sale why it’s important for retailers to activate (top 5 ROS for large format cans), offers PoS,” says commercial director impulse Growth of 218% over the past year. good margins for the retailer, is supported Kate Fletcher. heavily in the trade and is backed by huge consumer investment. The resealable can is unique to anything else in the UK market and is what makes No Fear one of the major players in energy drinks today.” AG Barr (01204) 664200 In October 2011 No Fear Extreme Energy was supported Aimia Foods (01942) 272900 with a ‘Fearless Fred’ campaign, which encouraged the Boost Drinks (0113) 240 3666 brand’s target audience to conquer their ultimate fear and Britvic Soft Drinks (01245) 261871 rewarded the winner with an extreme action holiday in the Coca-Cola Enterprises (01895) 231313 USA and a £1,000 cash prize. This campaign was backed by GlaxoSmithKline 020-8047 5000 print and digital advertising. Global Brands (01246) 216000 Red Bull Company 020-3117 2000 Aimia Foods is planning another marketing campaign to rival ’Fearless Fred’.

For further information:

www.cashandcarrymanagement.co.uk

Cash & Carry Management

• March 2012 • 21


ice cream update

Fighting the freeze According to Nielsen Scantrack, total value sales of ice cream last year were around £800 million, the market being dominated by Unilever UK (Wall’s). Cornetto, from Unilever UK, has launched a new flavour in its Enigma range – Cookie. Available from this month, it is being supported by a £1.9 million marketing campaign, including tv advertising which starts in June. Brand manager Scott McKinnon says: “Cornetto is the biggest and fastest-growing filled cone brand, with a 40% share of the filled cones market and growth of 15.3% in value in the last 52 weeks (IRI value sales MAT 25/12/11).” Enigma Cookie is a cookie flavoured ice cream with a soft core of chocolate sauce and cookie pieces. It comes in 4 x 90ml multipacks (rsp £2.99) and in singles (£1.50). Unilever UK is also spending £5 million on new Ben & Jerry’s Core, with three variants: Karamel Sutra (soft caramel surrounded by chocolate and caramel ice creams, with ‘chocolatey’ chunks), Doughble Whammy (soft chocolate fudge, with chocolate and cookie dough ice creams and chunky chocolate chip cookie dough) and Berry White (soft chocolate truffle, vanilla and raspberry ice creams, ‘chocolatey’ chunks and raspberry pieces). Brand manager Rhodri Morgan comments: “With two Fairtrade ice creams and a core of sauce in every tub, Ben & Jerry’s Core is our most indulgent offer ever. “The luxury ice cream dessert market is worth over £133m (IRI value sales 2011) and we believe our newcomer will drive even more value into the sector.”

Price marking in impulse R&R Ice Cream, distributor of Nestlé ice cream products, is bringing some of its major consumer brands into the impulse channel, along with price-marked packaging. The four additions to this channel are Nestlé Lion Ice Cream Bar (80ml, price-marked £1), Rolo Cone (120ml, £1.10), Maxi Cone Vanilla (130ml, £1.10) and new Maxibon Cookie (150ml, £1.60). Senior marketing manager Charlotte Hambling explains: “We know price-marked packs work hard elsewhere in convenience, with value-conscious consumers searching out food-on-the-go, so our decision to be the first manufacturer to take a major brand into this area will help category growth.”

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• Cash & Carry Management • March 2012

Biscuit-based newcomer Mars Ice Cream, which claims a 7% share of the market, has launched Twix in an ice cream format, with general manager Tony Lorman saying: “There are not many biscuitbased ice cream products on the market.” The single bar (59ml) has an rsp of £1.35, while a 43ml variant comes both in six-packs (rsp £2) and fourpacks (price-marked at £1.50). Lorman, who says that the ice cream category is growing at 2.3%, comments: “It’s not just about summer, when more singles are sold; one-third of sales are in the winter period, when consumers go for multipacks.” In the top 20 chart of single ice cream bars in the total impulse market (headed by Magnum Classic, Magnum White and Tangle Twister – all from Wall’s), Mars has four, with Mars bar at No.8, Maltesers 12th, Bounty 15th and Snickers 19th. New packaging is being introduced for Mars and Snickers, which, it is felt, could increase sales of these ice cream bars by 7%. “We sell 45 million ice creams each year,” says Lorman, who adds that the ice cream business this year has a budget of around £2 million – small when compared with the company’s confectionery operation, which is this year spending around £70 million on above-the-line advertising. He told Cash & Carry Management: “We are calling on more than 10,000 independent outlets this year, using a thirdparty sales force.”

Mint flavoured Häagen-Dazs, part of General Mills, has launched Mint Leaves & Chocolate, said to be the first mint-flavoured ice cream in the luxury segment. The new variant consists of mint ice cream, mint leaves and chocolate fudge pieces in a 500ml format (rsp £4.59). It will be supported by the brand’s total £3m marketing budget, covering tv advertising, digital and instore activity, consumer sampling and PR.

www.cashandcarrymanagement.co.uk


ice cream update Rubicon crosses over Rubicon, the AG Barr exotic soft drinks range, will soon be seen in a new guise – ice cream. In an arrangement with manufacturer R&R Ice Cream, Barr will be marketing a selection of ice creams and pull-up lollies, comprising: Mango Ice Cream Swirl and non-dairy ‘sorbet type’ Mango Fruit Exotic (both in 750ml £2.99 pricemarked tubs), Mango, Passion and Lychee ‘pull-up’ lollies with a price mark of 89p (the mango style is also available in an unpriced format), and a 4 x 80ml lolly pack, just for the mango variety. Distribution will be through Reed Boardall, which operates from a site in Boroughbridge, North Yorkshire. Barr’s head of marketing Adrian Troy says: “Mango is the biggest- selling flavour in the Rubicon soft drinks range, which also includes passion and lychee, as well as guava.

“In addition to our budget for Rubicon soft drinks, we will be spending £1m from May to support the new ice creams and lollies, with television and outdoor advertising. The commercials will appear more on ethnic tv than on mainstream channels. “We will also be conducting a sampling programme in the summer using Rubicon liveried vans.” “We are confident of doing well in the cash & carry/wholesale channel, where the groups have been massively supportive.” Barr acquired the Rubicon business in 2008 and, since then, turnover of the soft drinks range has doubled to around £120m. Troy comments: “Two out of every three ethnic consumers drink it, and we have also added a large number of white consumers.” The brand is a big sponsor of cricket and makes use of the Barr sales force of around 300, of whom many act for the C&C and independent retail channels.

For further information: AG Barr (01204) 664295 General Mills/Haagen-Dazs (01895) 201367 Mars Ice Cream (0845) 045 0042 R&R Ice Cream (01677) 423397 Unilever UK (0113) 222 5000

CONFECTIONERY The April 2012 issue of Cash & Carry Management will include a feature on Confectionery

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

www.cashandcarrymanagement.co.uk

Cash & Carry Management

• March 2012 • 23


employment law

Coaching through recession Human resources expert Cate Ritchie (below) highlights the business benefits of coaching. With businesses continuing to fight the impact of recession, coaching remains one of the positive actions that organisations can put in place to keep the motivation and engagement of managers and staff high. Recent surveys show that coaching and mentoring is used by 86% of organisations, with an impressive 49% of them rating it as the most effective talent management enabling activity (CIPD’s 2011 Learning and Talent Development Survey). Aligning coaching strategies to business challenges ensures that the process of adapting to the changing environment is fully supported and the associated risks are minimised. People who recognise that they are receiving development are more likely to remain, have a more positive attitude and, as a result, will be more effective. In times of growth, coaching has long been appreciated for building the capability of individuals; what is less known are the benefits to businesses facing organisational change or restructuring as a result of the impact of recession. For businesses, organisational change is tough: making redundancies is unsettling not just for those who have to go,

EMPLOYMENT LAW UPDATE Parental Leave Increases from Three to Four Months – DELAYED UNTIL 2013 Parental leave offers qualifying parents the right to take unpaid time off work to look after their child or make arrangements for their welfare. The minimum parental leave following the birth or adoption of a child was to increase from three to four months but the Government has recently confirmed that it is to postpone this to 2013 due to the ongoing development of its Modern Workplaces policy. 1 April 2012 – Statutory Maternity, Paternity and Adoption Pay Increases The standard rate of statutory Maternity, Paternity and Adoption pay increases from £128.73 to £135.45 per week. 6 April 2012 – Qualifying Period for Unfair Dismissal Increases to Two Years The qualifying period for employees to bring a claim of unfair dismissal increases from one year to two years.

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• Cash & Carry Management • March 2012

but also for those who remain. Relief mixed with guilt and, of course, worry over ‘how long am I safe?’ can have both a positive and negative impact on motivation and therefore on effectiveness. Coaching interventions are critical to keep managers and staff operating at their maximum capacity and capability, as well as maintaining a focus on delivering business strategy. So, if you are thinking about investing in a coaching programme for your managers and staff here are some of the key points to consider: Select coachees from business critical roles or projects first as they will make a faster return on your investment Be clear from the start what business – as well as personal – benefits are expected and how/when they will be measured Ensure that each coachee has at least one area to work on to deliver business growth and innovation.

• •

If you wish to talk to Cate about coaching or any other HR issue, contact her at cate@121hrsolutions.co.uk or phone (0792) 121 3890.

The increase will apply only to employees who start a new job on or after 6 April 2012. 6 April 2012 – Changes to Income Tax Thresholds The income tax personal allowance increases by £630, bringing it to £8,105. The threshold at which employees pay the higher income tax rate of 40% is reduced to £34,731 from £35,001. 6 April 2012 – Statutory Sick Pay Increases The standard rate of statutory sick pay increases from £81.60 to £85.85 per week. 6 April 2012 – Changes to Health and Safety Reporting Requirements The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995 is amended. The required period of incapacity following an injury caused by an accident at work, which triggers the employer’s requirement to report the accident to the enforcing authority, increases from more than three days to more than seven days. The deadline by which the employer must report the accident increases from 10 days to 15 days.

www.cashandcarrymanagement.co.uk


products & promotions New white wine

National tv

E&J GALLO – The Californian wine shipper is introducing a new style of white wine whose sales in the US rose by 73% last year. Moscato, with an abv of 8.5%, will initially be available in a 75cl bottle within the Gallo Family Vineyards range (rsp £6.79). It joins the same style under the company’s Barefoot label. This slightly sweeter version began limited distribution last year. Its rsp is also £6.79. In the UK, which heads the company’s international business (around 25% of Gallo’s sales are outside the US), rosé, led by White Grenache, tops the list, representing 40% of turnover, with white and red both accounting for 30%. The introduction of Moscato, however, is expected to push white closer to the rosé total.

KEPAK CONVENIENCE FOODS – The manufacturer is supporting its hot snacking brand, ZUGO’s Deli Café, with a national tv advertising campaign for the third year. The drive, from 19 March, includes slots during programmes such as Coronation Street, Emmerdale, Dancing on Ice and Wild at Heart. Marketing director John Armstrong said tv coverage would “accelerate demand and introduce new consumers to the brand. The national tv campaign highlights the quality and convenience of ZUGO’s Deli Café products as a delicious lunchtime option.” Instore PoS material is available. Later this year Kepak will launch a national sampling campaign. The range currently comprises panini products: Chargrilled Chicken, Mozzarella & Pesto, and Bacon, Cheese & Mustard Mayonnaise. It was extended last year to include ZUGO’s Deli Café Pasta Pots (300g). Tel: Kepak (01772) 688300.

Refreshed label COCA-COLA ENTERPRISES – Schweppes Abbey Well, sourced from Northumberland, is acknowledging its status as the official water of the London 2012 Olympic and Paralympic Games with a new design. The brand is predicted to make up around 40% of all Coca-Cola Great Britain products sold during the event. And in line with the company’s commitment to supporting the greenest Games ever, the rebrand also marks the launch of 25% recycled PET across Schweppes Abbey Well plastic bottles. Tel: Coca-Cola Enterprises (08457) 227222.

Hottest ever

‘Great moments at home with great wine.’

UK & Ireland sales director Mark Tinsley said there would be considerable promotional activity in the C&C/ wholesale trade. The expenditure on Moscato will be higher than for any other previous company launch in the UK and will include outdoor advertising, sampling and an online presence. There is also a considerable budget behind the Summer Red varietal, with press ads and sampling to 35,000 consumers. The shipper has also launched, in conjunction with Universal Studios, the Gallo Film Club, described as ‘great moments at home with great wine’. Tel: E&J Gallo (01895) 813444.

ENCO PRODUCTS – The supplier is launching its hottest-ever sku in the hot pepper sauces sector: West Indian Extra Hot Pepper Sauce. Some 100 bottles will be sold via the the supplier’s Facebook page before the new product officially goes on sale. “This is not one for the faint-hearted,” said brand manager Giuseppe Vullo. “It is a really distinctive, spicy sauce featuring some of the hottest peppers, including Jolokia and Scotch Bonnet.” Marketing support includes nationwide sampling and poster ads. Consumers will be able to apply for a free bottle through national newspaper promotions. The 142ml/150g sauce will retail for around £1.59 and will come in outers of six. Listings have been secured with multiples and the C&C/wholesale trade. Tel: Enco Products (01707) 382974.

www.cashandcarrymanagement.co.uk

Absorbing news! PROCTER & GAMBLE – Pampers is investing in a range of activity this year, including product innovation across the nappy range and the launch of a smaller size six-pack exclusively for independents. The current line-up in this channel includes core sizes 3, 4, 4+ and 5. This year, private retailers will also be able to stock size 6. As well as the new pack option, Pampers Active Fit and Baby-Dry ranges will benefit from improved leakage protection to provide even more dryness. Active Fit will have more than 15% extra absorbing zones while BabyDry will lock in more wetness through improved absorbency. Tel: Procter & Gamble (0800) 597 3388.

Cash & Carry Management

• March 2012 • 25


products & promotions Price marking

Interactive promo WRIGLEY – Following the recent launch of new 5 Evolution, the gum that fuses sweet-to-sour citrus pear flavours, the supplier has introduced What’s Next?, an interactive promotion. Running for five months, it offers consumers the chance to win a range of prizes, covering fashion, art, music, games and film. Entrants are invited to download free image-recognition smartphone app, blippar, and ‘blip’ their 5 Gum pack to unlock exclusive augmented reality and interactive content and be in with a chance of winning. 5 Gum is valued at more than £7.3m (Nielsen MAT to 3/12/11), its target audience being 14 to 25 year-old ‘status seekers’. Sales are claimed to be growing at 24.7%. There is a Facebook fanbase of over 150,000. The campaign is being supported by sampling and out-of-home advertising in targeted regions. Selected retailers in 5 ‘hotspots’ will receive a sales pack and countertop unit. Tel: Wrigley (01752) 752094.

New design AG BARR – Sales of the soft drink supplier’s ‘competitively priced’ Simply Fruity are claimed to be growing by 14% year on year (Nielsen Scantrack value sales MAT to 24/12/11). Now a colourful new design has been introduced for the product’s 330ml sports cap. The flavours are: blackcurrant & apple, orange, and apple & strawberry. Tel: AG Barr (01204) 664295.

26

BEVERAGE BRANDS – WKD, which claims to be Britain’s best-selling RTD brand (Nielsen Scantrack value share MAT to 24/12/11) is being launched in £4.99 price-marked promotional fourpacks, exclusively through the convenience and cash & carry/wholesale channels. Available until the end of the year, price-marked packs of WKD Blue, Iron Brew and Purple are flashed with an ‘Only £4.99 Result!’ logo. Packed in shrinkwrapped trays of 6 x 4 x 275ml bottles, the drinks are available to independents via participating wholesalers and cash & carries. To help retailers support the initiative in-store, free shelf-barkers are being issued showing a ‘when it’s gone, it’s gone’ message, while C&C/ wholesalers are being supplied with posters and stacker cards. Marketing manager Debs Carter commented: “The four-pack is the biggest-selling multipack format, and that share is growing, particularly in impulse stores. Some 86% of convenience stores stock price-marked products (him!).” Tel: Beverage Brands (0800) 917 3450.

Soup in sachets HEINZ – Squeeze & Stir cup soup is being launched through the convenience channel. Made from a concentrated purée, each sachet contains ‘one of your five a day’ and has no artificial colours, flavours, preservatives or MSG. The soup, which is low in fat, has an rsp of 59p. The varieties are: Cream of Tomato, Mediterranean Vegetable, Cream of Tomato with Basil and Minestrone (all 70g). Tel: HJ Heinz 020-8573 7757.

• Cash & Carry Management • March 2012

For Mother’s Day SWIZZELS MATLOW – The confectionery supplier has launched its first Mother’s Day gift using new Love Heart messages. The 22 new slogans, including ‘1 in a million’ and ‘super mum’, were suggested by Facebook fans to appear on an ‘I love mum’ tube. The 108g confectionery pack has an rsp of £1.39. Marketing manager Sarah-Louise Heslop said: “We thought it was about time we celebrated our wonderful mums on a grand scale. “Our Love Hearts tube is the perfect little gift and is a refreshing alternative to chocolate.” Tel: Swizzels Matlow (01663) 744144.

Trade: take note FERRERO – Valentine’s Day may have come and gone, but with Mother’s Day (18 March) and Easter beckoning, the company reminds the trade that, over these three occasions, retail sales of boxed chocolates last year amounted to £103.6m. Customer development manager Amanda Fee told Cash & Carry Management: “Grocery fared well in spring last year, with Ferrero outperforming the total market at plus 4.1%. Convenience retailers, however, found it hard to compete with the extent of promotions offered by the multiples, coupled with the ‘holiday’ atmosphere created by the good weather. “To ensure they get a bigger bite of the profits this year, they need to stock a range of best-selling boxed chocolates alongside a selection of seasonal products.” She stressed the importance of stocking both Ferrero Rocher, the leading gifting brand, and Ferrero Collection, the No.2 premium gifting brand. All data AC Nielsen.

Tel: Ferrero UK (01923) 690300.

www.cashandcarrymanagement.co.uk


Success with IT Page 2 Streamline and automate your process for ‘quotations to contract pricing’

Page 3 Chapple & Jenkins enhances customer service with time saving system

Page 4 Filshill invests in Voice Order Picking and Online Ordering to boost profits and efficiency

CASH & CARRY AND WHOLESALE NEWS Issue 10

Preston Beer raises a glass to Sanderson wholesale system Established in 1998, Preston Beer supplies an extensive range of beers, spirits, soft drinks and quality wines to the foodservice industry including restaurants, cafes and pubs in the north of England. To support Preston Beer’s growth and increasing product range, the company required a software system that manages all wholesale operations. The Sanderson wholesale IT system, Swords, stood out in the marketplace as the best choice for the company. The system delivers vital management information and provides better stock and warehouse management which is helping Preston Beer to make effective stock replenishment decisions. Using the Sanderson solution, Preston Beer is making informed buying decisions using real-time sales and stock information, and maximising the use of warehouse space. Telesales teams are benefiting from instant visibility of stock levels and product information, offering customers alternative products for out-of-stock items and informing them of relevant

and boosting customer satisfaction by providing a faster service.

promotions thus enhancing service levels and avoiding missed sales opportunities. In addition, the system has introduced much needed pricing controls, simplifying complex pricing structures and saving time on setting unit costs and promotions. Preston Beer has also implemented the latest solution to streamline and automate the ‘quotation to contract pricing process’, saving valuable time

Tony Oxley, Managing Director of Preston Beer comments: “The Sanderson solution has improved our overall operational efficiency, transforming the areas that were causing us difficulties such as warehousing and setting pricing controls. Warehouse operations are highly organised, and we’re utilising space efficiently following our installation of the Sanderson wholesale solution. We have the ability to extract information at the touch of a button, which is making a huge difference to our business. The experienced Sanderson team were exceptionally helpful throughout implementation. I am confident our business will grow with Sanderson.”

About Preston Beer Preston Beer Company supplies a wide selection of quality wines, offering tasting events and same-day delivery 362 days a year.

Page 1


Success with IT

Increase your efficiency and profits with a single IT system With over 25 years’ experience, Sanderson, the publicly owned UK provider of software solutions to the delivered wholesale and cash & carry industries, continues to deliver its wholesale solution to companies looking to maximise the benefits from their IT systems and strengthen their operations for the future. The Swords software, from Sanderson, integrates all areas of the supply chain, balancing the demands of sales, purchasing, stock and cash flow. The solution provides essential management information to support business decisions, improve efficiencies, reduce costs and enhance customer service levels. The Swords system delivers real business benefits to wholesalers and cash & carries in three key areas: Credit Control Quickly view customer trading history, check credit ratings and apply control parameters to protect your cash flow and minimise financial risk. Stock Management Utilise real-time information about sales orders, stock items and

outstanding payments before you process sales orders. More companies are choosing Sanderson:

One integrated system delivers real business benefits.

inventory levels, to optimise your stocks with calculated purchasing decisions. Extend visibility of stock levels to other areas – allowing telesales to offer alternative products and avoid missed sales opportunities. Cash Flow Automate ‘one over one’ weekly payments with automated driver trunk run sheets which will perform credit checks before the driver leaves the warehouse. ‘One over one’ weekly payments also improve cash flow, eliminate manual tasks, increase staff productivity and save you valuable time. Measure cash flow with realtime credit monitoring – which highlights customers with

Drinks wholesaler, Global Liquor Concepts (trading as Drinks Direct), has launched its new business with Sanderson to manage and integrate all areas of the growing company. The solution benefits telesales teams with fast access to sales order information and easy PLOF production, boosting customer service levels. Delivered wholesaler, Indus International Foods, has chosen a trio of Sanderson solutions to manage its operations. It has selected Swords Mobile Sales which maximises operational efficiency by providing the sales rep with instant access to up-to-date information on customers, pricing and stock availability when on the road. Drinks wholesaler Paul Burton Drinks has selected the Sanderson wholesale solution to grow the business. Swords is a modular system, so Paul Burton Drinks can extend its use as the business requires.

‘Time saving’ Sanderson solution for ‘quotations to contract pricing’ This very latest solution from Sanderson streamlines and automates the ‘quotation to contract pricing’ process within your Swords system. Using the NEW contract pricing solution you can:

• Quickly create standard

quotations for both prospective and existing customers – without requiring an account to be registered

• Instantly forward quotes by email, fax or post, increasing operational efficiency

Page 2

• Convert quotations to ‘fixed

price contracts’ at the click of a button, eliminating manual pricing errors and removing duplicate activities

• Inform customers of future

contractual changes, improving service levels and customer relationships

• Increase visibility and control of the entire quotation to contract pricing process

• Gain huge competitive

advantage, with valuable pricing comparisons highlighting potential savings against competitors’ prices

• Enhance customer satisfaction

by providing a faster service, accurate quotations and quicker contract conversion rates.


Success with IT

Chapple & Jenkins chooses Sanderson to support its growing business Bristol based Chapple & Jenkins is a dynamic wholesale company experiencing rapid growth. It has a large warehouse and stock levels are continually increasing with new product lines. The company supplies soft drinks, crisps, and confectionery to a wide range of retail outlets ranging from newsagents, petrol stations, sandwich shops and the licensed trade. As the company expanded, Chapple & Jenkins found it was duplicating efforts in areas such as sales order processing. It realised that multiple paperwork processes across the business were generating unnecessary administration. So Chapple & Jenkins began researching the market for a specific wholesale IT system that would increase control of its growing business and streamline operational processes for maximum efficiency, with minimum administration.

picking in the warehouse – and the mobile sales module – which enables sales orders to be processed remotely. It found the answer with a Sanderson solution. Chapple & Jenkins chose Swords as it fully integrates all wholesale operations, managing the demands of telesales, purchasing, stock and warehouse management, together with an integrated accounts system. The system replaces manual processes with a time saving automated system. This is an invaluable benefit to Chapple & Jenkins in delivering an efficient and punctual service to its customers.

Martin Jenkins, Director of Chapple & Jenkins, comments: “We are very pleased to have Sanderson on board with us at this exciting time of company growth. I am confident that Swords will streamline our business processes and cut out the manual workload for all departments, across the business. This will boost our customer service levels as staff will have less paperwork to administer and more time to assist customers.”

Swords is a modular system, so Chapple & Jenkins can extend functionality as the business requires. Additional Swords modules include Voice Order Picking technology – used to achieve efficient order

About Chapple & Jenkins Ltd Delivered wholesaler Chapple & Jenkins is a growing business supplying over 1,000 drinks and confectionery products to a wide range of retail outlets.

Take control of your internal and external communications •

Improve operational efficiency and customer service with instant system alerts for incidents such as customer queries and credit held orders – directly to your desktop or mobile phone

Would you like to communicate instantly and efficiently with staff, customers and your suppliers whilst improving your green credentials? Swords iCom is the latest solution from Sanderson which provides you with the ability to email and fax documents directly from the Swords system. Swords iCom offers easy, efficient and secure internal and external communications. You can lower your environmental impact, reducing the use of paper, printing and postage, by sending documentation electronically via the Swords iCom system. Additional benefits include reduced stationery costs and time saving instant communications.

Strengthen internal communications with a secure messaging system within Swords, removing the need for a separate email system Using the latest Swords iCom solution you can:

• Reduce costs and quickly

distribute documents to customers and suppliers by email or fax without the expense of separate user email accounts or a fax machine, increasing efficiency and eliminating paper and print costs

• Enhance customer

communications with automated notifications which can be used to inform customers of pending contract price changes

Control your valuable data and maximise system security by managing users’ access to email and fax.

Page 3


Success with IT

Off the shelf success For Glasgow-based, award-winning delivered wholesaler JW Filshill, a longstanding partnership with IT solution provider Sanderson has become vital to the strategic direction of the business. The family business, which has over 1,600 retail cash & carry and delivered goods customers, has soared to become a major wholesale and cash & carry operation. Managing Director Simon Hannah says it is impossible to imagine how Filshill would run without Sanderson: “It remains the perfect fit for our business.”

the picker to the correct location and the operator gives a sequence of verbal confirmations based on the product code, to ensure accuracy. “The Sanderson system has reduced pick time dramatically – by as much as 30% for some products,” says IT Executive Andrew Allison.

The food and drink supplier is a longterm user of Swords, the delivered wholesale software solution from Sanderson, and uses it to deliver ongoing improvements in its business and operational processes. The latest project has seen the introduction of sophisticated voice-directed picking to the warehouse.

Productivity is not the only positive result. Allison explains: “The increase in accuracy and reduction in handling damage – estimated at £10 per error – means this project will achieve ROI within its first full year of operation.” Andrew adds: “Combined with a recent revamp of the order picker pay scheme, the hourly pick target is set to rise to 180 per hour compared with the original target of 110; that’s a 64% improvement.”

To increase warehouse efficiency, Filshill invested in voice order picking. The new system features speech recognition technology to enable staff to communicate directly with the warehouse management system, through a wireless headset and microphone. The system directs

Sanderson has also developed an online ordering system for Filshill, to further improve delivery times. Customers scan product barcodes into the system using a key fob scanner at their premises. This data is uploaded directly into Swords and links through to the voice picking

technology. Filshill is also using Swords to enable intelligent use of its business data. Business Intelligence allows detailed analysis of sales, purchase and stockholding trends and can be used to evaluate supplier performance. Finance director Fraser Harrison says the latest system enhancements will boost efficiency and profits: “Access to real-time information is crucial to a busy company like ours. With Swords and the addition of voice order picking technology, we can have an accurate stock reading at any time. Our investment in voice order picking will lead to faster and more accurate order picking in the warehouse. We'll be able to see the return on our investment quickly due to a reduction in costly picking errors and an improvement in service levels for our customers.”

Sanderson lights up electrical wholesaler Yorkshire based Smith Bros (Caer Conan) Wholesale Ltd is one of the UK’s largest electrical distributors. To support its growing business, the

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

Page 4

advising on promotions and alternatives for out of stock items.

company implemented the Swords wholesale system from Sanderson to improve warehouse picking operations, efficiently manage stock, increase customer satisfaction and optimise business performance.

Ursula Harris, Admin Manager for Smith Bros, comments: “A huge benefit for us is that we now have a fully integrated solution that manages all areas of our wholesale business. As the solution is modular we can also add functionality as and when required.”

Smith Bros also installed the Swords Radio Frequency (RF) solution to manage stock movement operations, ensuring 100% accuracy from the moment stock arrives at goods-in. Up to date stock information helps telesales staff increase sales orders and customer satisfaction – by

About Smith Bros (Caer Conan) Wholesale Ltd Established for nearly 200 years, Smith Bros is one of the UK’s largest electrical wholesalers, distributing electrical products throughout the country.


products & promotions Charity push

Licensing deal

GLAXOSMITHKLINE – Horlicks is promoting its ongoing partnership with the Walking with the Wounded charity by adding an on-pack message to the 500g range. The packs are being supported by £1m worth of brand investment. The hot beverage brand is sponsoring the charity’s expedition to climb Mount Everest in May. The special packs aim to encourage consumers to make a donation. Ed Parker, founder of the charity, said of the partnership: “From our perspective, growing the brand and our brand awareness is key for the longterm sustainability of what we are doing. And having it sitting alongside a brand, as well as one as established and solid as Horlicks, is fantastic, and a great honour.” The campaign is being supported with poster and press advertising, and a limited-edition Horlicks Light Chocolate Cherry 500g style has been introduced. Tel: GlaxoSmithKline 020-8047 1434.

MOLSON COORS/GLOBAL BRANDS – The two companies have signed a licensing agreement making Global Brands the producer and distributor of Reef, a vodka & orange premix drink which was introduced in 1998. Simon Green, Global Brands marketing director, said: “The ready-to - drink category is worth over £400m and there is still a clear consumer demand for great tasting, differentiated drinks. “We strongly believe in both the category and the brand, and, through focus, innovation and investment, we plan to develop Reef to unlock all its potential.” Tel: Molson Coors Brewing (01283) 511000. Tel: Global Brands (01246) 216000.

Wear it proudly! MARS – As the nation warms up for the UEFA European Championships 2012, the Mars brand has announced plans to maximise interest. Activities include an on-pack promotion encouraging fans to win one of 100,000 official special-edition shirts. The packs will be available from next month and the tagline ‘Work Rest Play’ will be relaunched and extended to ‘Work Rest Play Your Part’. Mars is in the middle of a five-year partnership with the FA. Tel: Mars Chocolate (01753) 550055.

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

www.cashandcarrymanagement.co.uk

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

www.cashandcarrymanagement.co.uk

Cash & Carry Management

• March 2012 • 31


Cash & Carry Management’s Top 25 Suppliers awards for 2012 begin soon

Not your usual awards lunch Comments on last year’s event...

 

             

       

           

  

 

         

      

  

“I really did enjoy the awards at Dorney Lake and found the day very worthwhile. The awards themselves were swift and the Dhamecha presentation highlighted information that we will pass on to our members. It was a great venue and good to learn about the planning going into hosting an Olympic venue. I gained the most benefit from listening to the speaker from the Olympics organising committee who was very interesting from both a personal and business perspective.� Tom Gittins, business development manager, Confex

was really “The event welcomed good and I e we had the free tim holesalers with the w rs to and supplie ns and discuss pla sight. The market fore ere also speakers w cha.� dip Dhame ra P y rl la u c good, par ti gbin, o r, Richard H ent manage m p lo e v e d r custome Drinks Britvic Soft

“Your awards are genuinely one of the best around and I think this is down to the intimate nature of a relatively small gathering, the informal but professional tone, and the special location – certainly not the norm. Also, the ambience is friendly and approachable, it is a good networking opportunity, the speakers are really excellent, and the time of day (lunch) makes it much more manageable than another evening gig.� Stephen Moodie, customer director convenience, Unilever “Great ven ue, great speakers, w ith a passion an d message .I thoroughly enjoyed the balance be tween awards and speakers. Good news stor y in hard times .� Nigel Milwa rd, C&C – im pulse mana ger, PLB Group

         

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www.cashandcarrymanagement.co.uk


snacks & biscuits

Attraction of priced packs

The five-strong line-up in the new price-marked range.

The total value of the snacks market last year was around £2.5bn, representing growth of 7%. The biscuits category is worth £2.3bn – up 3%. Of this, impulse accounts for £222m, which is virtually static. The two leading segments are ‘healthier’ biscuits (worth £430m, 3% higher) and chocolate biscuit bars, valued at £347m, down 3% (AC Nielsen 2011). Walkers has introduced a 49p price flash on single bags of its five core flavours: salt & vinegar, ready salted, cheese & onion, prawn cocktail and smoky bacon. Kieran South, wholesale director of PepsiCo UK&I, says research shows that price-marked packs are vital to achieving positive price perceptions in-store, with 44% of consumers encouraged to buy an item on impulse when it is price-marked (him! July 2011). “The impact is even greater within crisps, snacks & nuts as purchases in this category are just as impulsive as confectionery, so the price-marked cases are set to be a big draw for retailers in depot. “By communicating value to consumers on pack, retailers can fulfil all three key reasons for a crisps, snacks & nuts purchase, growing the core of their business to see a bigger, long-term impact on sales.” South adds: “We have made a substantial investment in this activity and encourage C&C/wholesalers to maximise this incremental sales opportunity by stocking up on the new Walkers 49p price-marked packs (available from early March).” Worth £111m in impulse, the supplier’s core range features some of the best sellers in the category and accounts for 25% of all crisps, snacks & nuts sales in the channel (Nielsen Scantrack total impulse MAT 31/12/11). For C&C/wholesalers, individual price-marked cases of the five flavours are available, as well as a priced three-case stacker of ready salted, salt & vinegar and cheese & onion.

www.cashandcarrymanagement.co.uk

South offers the following merchandising tips:

• Use point-of-sale to make a high impact display at the entrance to your depot. • Create an eyecatching display of the individually pricemarked cases of Walkers in a prime position. • Educate retailers on the benefits of also purchasing a

price-marked pre-merchandised stacker unit to stock close to the till. The unit drives incremental sales by catching the 43% of shoppers who pick up crisps, snacks and nuts without visiting the main fixture (CTP 2010). Encourage retailers to site price-marked wobblers and shelf-edge labels on their fixture to grab the attention of their customers.

‘More satisfying’ Pringles this month launches its ‘best-ever chip’, supported by an extensive marketing campaign, including tv, press ads and PR. The brand, marketed by Procter & Gamble, has used a new technique which enables the seasoning to be spread across the whole chip, giving consumers ‘a more intense and satisfying taste with every single bite’. This is highlighted with a ‘Bursting with more flavour’ tag on-pack. Fiachra Moloney, marketing manager UK & Ireland, says: “As the UK’s favourite large sharing snack (IRI 2011 value share data) it’s important we continue to lead the category and offer consumers the very best product. With this launch we feel we are doing just that. “Not only does our new production and seasoning technology ensure Pringles has more flavour than ever, but we have also improved

Cash & Carry Management

• March 2012 • 33


snacks & biscuits the seasoning on some of our core favourites for the best-ever taste experience for consumers.” Moloney adds that research shows that taste is one of the most important decisions influencing purchase. “We are confident the new, improved product will not only be a success with existing consumers through increased media awareness, but we also hope to drive penetration with new ones.”

Ahead of the market Kettle Chips, made by Kettle Foods, situated at Bowthorpe, Norwich, claims to be the UK’s leading hand-cooked crisp and is a key brand in the premium snacking category, with growth ahead of the rest of the market at 6.4% year on year (Nielsen value sales to 7/1/12). Says a company spokesperson: “Consumer brand awareness is much higher than that of hand-cooked competitor products (94% vs 52% for the nearest competitor – Marketing Sciences online consumer research June 2011) and, within the impulse market, as well as the total sector, Kettle Chips is the leading premium crisp brand with a market share of more than 70% (Nielsen). “It is also an everyday, affordable treat that can help to encourage consumers to trade up and deliver category growth.“ Referring to the fact that the sharing segment has become increasingly important, the spokesperson says: “Research shows that almost 70% of sharing bags of crisps & snacks sold through independents weigh less than 130g (Nielsen) and that price-marked packs are one of the top promotional mechanics favoured by retailers (him!). Consumers also like price marking as it provides reassurance and can prompt trial and impulse purchase (him!).” With this in mind, the supplier has introduced a range of smaller price-marked sharing bags, specifically for the independent convenience sector and ideal for ‘Big Night’ occasions. Launched through the cash & carry/wholesale channel at the end of last month, the 100g ‘Little big bags’ come in the following varieties: Lightly Salted, Sea Salt & Balsamic Vinegar, Sea Salt with Crushed Black Peppercorns, Mature Cheddar & Red Onion and Sweet Chilli. They are all price-marked at £1.29. Another innovation is pricemarked Kettle Ridge Crisps. These too are available through the cash & carry/wholesale trade, in 85g sized bags, and are priced at 99p. The two flavours are Flamed Steak and Spicy Chilli. Aimed at a slightly younger audience than the core range, the spokesperson says “they are for those looking for bigger, bolder flavours”. Kettle Foods offers a wide selection of point-of-sale material for all types

34

• Cash & Carry Management • March 2012

of outlets. This includes permanent display stands, cardboard shippers and dump bins, baskets, counter top units and clip strips.

Nuts, seeds & dried fruit Kenkko, established in 1988, is a global supplier of edible nuts, seeds and dried fruit to importers, buying groups, processors and packers within the snack, confectionery and bakery industries. The company’s buyers are dedicated to sourcing around 20,000 metric tonnes of produce a year from different parts of the world. That experience is backed up by the linguistic skills of its staff, who together can speak 15 languages, allowing them to overcome any cultural barriers and maintain close relationships with growers/suppliers. A spokesman for the company told Cash & Carry Management: “Quality control and delivery reliability are the key parameters for establishing Kenkko’s strategic partnerships, with a network of the most reliable growers, packers and processors around the world. That enables us to provide up-to-date market information on crops and market trends.” The company’s contract management team ensures that complex logistical requirements are implemented effectively and efficiently. Its logistics team will manage an order all the way from origin (grower, packer or processor) to destination, whether it is a port, warehouse, processing factory or distribution centre. Stocks are maintained in UK, Dutch and German warehouses, ready for distribution. Kenkko deals with processors, packers, wholesalers, multiples, industrial users and snack food manufacturers. It supplies almonds, (including sliced and slivered), cashews, pistachios (including green peeled), walnuts, sunflower seeds (including bakery kernels), pumpkin seeds (including grown without shell), pine kernels, macadamia nuts, pecans, peanuts and brazil nuts, all dried fruit and dehydrated fruit, including cranberries. The products are offered raw or roasted/processed. A wide range of packaging is also available to the trade, either bulk/generic or bespoke/branded, to address specific requirements.

www.cashandcarrymanagement.co.uk


Wagon Wheels is worth over £10m* Brand new distinctive packaging for 2012 New Above the Line campaign starts March 2012 Over £2m Brand Support Package in 2012

Stock up and watch your profits roll in * IRI Gr Grocery roce ocery ry Im Impu Impulse Outlets 52 W/E 24th Dec 2011


snacks & biscuits visibility, and off-shelf displays have shown significant growth in both volume and value.” All data IRI 52 weeks to 21/1/12.

Wagons roll!

Making ‘a significant contribution’.

Burton’s Biscuit Co, the UK’s second largest sweet biscuit supplier, with sales up 5% last year against the industry’s 3.7%, is urging C&C/wholesalers to ensure their ranges are displayed in an eye-catching way ‘to capitalise on profit and volume opportunities’. Category & activation controller David Costello says there have been two opposing trends over the past year – firstly, an increase in purchases of cheaper, more everyday products, such as digestives and custard creams, and more indulgent treat options like chocolate and cookie products, including Maryland Cookies, and secondly, more consumers buying ‘on-the-go biscuits’, a trend which is likely to increase as more new product development comes on stream. “On-the-go is one the fastest growing segments at 5.2% year on year and is now worth £105m. It is an area which capitalises on consumers who want to purchase biscuits while they are away from the home – as a snack. “Biscuits are seen as a more permissible snack as they have less sugar than confectionery and less salt than crisps. New on-the-go products are helping to meet this usage occasion as they are more portable, resealable and easier to share.” This year Burton’s will continue to develop products to fit this occasion, building on the success of Cadbury Fingers and Maryland 40g bags, and pouches such as BiscBits, launched last year. Costello says the company’s growth is driven by NPD, and this has accounted for 24% of all sweet biscuit NPD in the past year. “Cadbury Fabulous Fingers, in particular, are making a significant contribution to this by playing into the indulgent treat part of the biscuit market. Toffee Dodgers have also been successful in expanding the Dodgers brand.” Commenting on the importance of merchandising, he says: “Having the right range is a given, but biscuits can be a complex category, so we are supporting C&C/wholesalers and retailers with category insight-led solutions. “Eye-catching and well-activated shelfready packaging is essential for increasing

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• Cash & Carry Management • March 2012

Burton’s has also announced a £2.5m relaunch of its Wagon Wheels, aimed at teenagers. The programme includes a new recipe, limited-edition Caramel flavour and new packaging. Above-the-line advertising features nationwide cinema coverage and digital activity in a campaign running from now until July, plus further NPD later in the year. The advertising theme centres on the idea that three teenagers have discovered the ‘Martian mallow’. The cinema ads will appear alongside such films as Men in Black III and Spider-Man 4. Says Costello: “This is the biggest investment in Wagon Wheels for years.” The biscuits come in packs of six in three flavours: Original and Jammie, as well as the limited-edition Caramel. The rsp is £1.69 (49p for a single pack).

Swift popularity Chedds, the kids snacking range from Cathedral City, is now worth £2.6m (Nielsen year to 24/12/11). Launched eight months ago, it is claimed to have been bought by 918,000 UK households, achieving a 3.6% penetration within 20 weeks of introduction (Kantar 20 weeks to 25/12/11). With 41% of Chedds volume incremental to kids snacking, it has brought new mums into the category. And during this period, 28% of shoppers made a repeat purchase. Virginie Lenfant, senior brand manager, kids, says: “This is a great start. We believe Chedds has a great future in the category.” The product (rsp £1.99) comes in three formats: Nibbles, Bricks and Cheese & Toasties. It has no artificial colours, flavours or preservatives. All three styles are available in multipacks: Cheese & Toasties, 3 x 33g; Nibbles, 6 x 18g; and Bricks, 8 x 18g.

www.cashandcarrymanagement.co.uk


Since its launch in January 2010, Belvita Breakfast is now worth over ÂŁ31.3 million3 and is growing at +144%3.

Belvita Breakfast biscuits are specially designed for Breakfast and the only biscuit proven to release carbohydrates slowly over 4 hours when eaten as part of a balanced breakfast1 Belvita Breakfast is the ideal on-the-go breakfast biscuit for the 1 in 3 people who regularly skip breakfast in the UK2

73% of all Belvita volume sales have been incremental to Healthy biscuits4

Belvita Breakfast biscuits are made with wholegrain. They’re rich in cereals and provide a source of fibre.

They contain vitamins and minerals and are free from colours or preservatives.

Belvita Breakfast regularly release carbohydrates over 4 hours to help keep you going all morning, as part of a balanced breakfast to include a piece of fruit and a portion of dairy. Proven in several clinical studies. 2Kantar Worldpanel Usage; In Home Breakfast Foods 12 m/e May 2011 3The Nielsen Company, Total MAT to w/e 28.01.12 4Nielsen Homescan Total GB 2011 vs 2010

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snacks & biscuits Careful consumers While the snacks market remains resilient, despite the tough economy, consumers are still careful about where they spend their money, says Nick Stuart, commercial manager of UBUK. “However, snacks are generally considered a relatively inexpensive treat which they will continue to purchase.” Stuart stresses the importance of C&C/wholesalers having a plentiful stock of price-marked packs. “Price-marked packs offer shoppers visible value for money and reassurance they are getting a good deal. A recent test by UB with price-marked packs generated a 13% increase in retail sales value (internal data 2010). “In response to this, we have a wide range of popular handypacks price-marked at 46p available for C&C/wholeThe bite-sized snack is available in a mix of shapes with salers, including Roysters, Wheat Crunchies, NikNaks, Skips, no artificial colours or flavours. Discos, Space Raiders The two flavours, Cheese and Smoky Bacon, come in and Frisps, all of which multipacks of 5 x 25g (rsp £1.75), 125g sharing packs (£1.42) sell particularly well in the and 30g on-the-go packs (59p). convenience channel.” The ‘Big Night In’ trend offers a “crucial sales opportunity” Consumers are also for C&C/wholesalers and retailers, says Stuart. looking for added value “Consumers continue to seek cheaper ways to socialise promotions, says Stuart, with family and friends, whether it be a big football game, citing McCoy’s PDC watching a film or a girls night in; the trend is here to stay.” Darts sponsorship, TV’s Britain’s Got Talent, the European Football which offers consumers Championships in June and the Olympics in July are all the opportunity to win conducive to social sharing occasions. tickets to the Premier “Sharing formats are flying off the shelf for retailers at the League darts play-offs. moment and are worth £87m in impulse. It’s interesting to “Another great examnote that they are growing even faster – at 13% – in impulse ple is UB’s cross brand than in grocery (up 8%). Snack Tracks promotion “This shows that consumers are picking up their sharing on grab bags and handypacks with Universal Music, which snacks regularly from their local convenience store for encourages consumers to download one of over 100,000 in-home social occasions.” music tracks free with every purchase.” A major price-marked pack marLooking at ‘healthier’ products, keted by the company is McVitie’s which have lower saturated fat, no Chocolate Digestive. A 26-biscuit pack monosodium glutamate or artificial costs £1. colours, Stuart comments: “ConsuPacks of McVitie’s biscuits are supmers want their favourite ‘tasty’ snacks ported by the ‘Dunk Time’ promotion, and expect them to be nutritionally encouraging consumers to enjoy them improved, so they look for on-pack with a hot cup of tea or coffee. flashes to tell them of such improveSays Stuart: “With a total value of ments – a communication method we Nick Stuart, UBUK’s £35m in impulse, it is clear that ‘healthregularly use to grab the attention of commercial manager ier’ biscuits are an important part of the shoppers. range for convenience retailers. “Between 2005 and 2011 the average “The must-stock brand in this segment is go ahead!, saturated fat content of our snacks dropped from 14% to 4%.” which has extended its range to include a cherry flavoured Over the past year there has been a resurgence in the Fruit Bake, joining the other styles of apple, apple & blackpopularity of savoury biscuit snacks, due to several factors. currant, raspberry and strawberry.” “There is a consumer perception that savoury biscuit Launched less than 18 months ago, McVitie’s Medley has snacks are healthier than sweet biscuits and are a convenient become an £11 million brand. The range now includes a new alternative to bread,” says Stuart. “They are also recognised ‘indulgent’ variant, double chocolate, which comprises a mix as being extremely versatile across different meal and eating of HobNobs biscuit chunks with cereals, dark chocolate chips occasions. In fact, brands like Jacob’s Cream Crackers are and milk chocolate underneath. showing particular strong growth rates (plus 14%), which is The rsp is 55p for a 40g bar and £1.95 for a multipack of outstanding for such a mature brand.” six 30g bars. To capitalise on this, the supplier has launched Jacob’s All data AC Nielsen to 31/12/11 unless stated. Oddities, a light and crispy baked savoury snack biscuit.

‘Sharing formats are flying off the shelf at the moment and they are growing even faster in impulse than in grocery.’

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snacks & biscuits Oreo is now a £15.7 million brand – and the value is increasing.

‘Branded is the key’ In the catering channel, independent research shows that 75% of operators offer snacks at the point of purchase (Reed Business Insight), with 68% of these outlets selling biscuits. Nearly eight out of 10 said that on-the-go consumption is increasing and that branded products may be key to driving sales (63% agreed that a recognisable brand name was the most influential factor). Consequently, Susan Nash, trade communications manager at Kraft Foods UK, says that when it comes to biscuits, C&C/wholesalers should stock consumer favourites and bestselling brands. “In the UK, Oreo is now a £15.7 million brand – a value increase of 10.9% over the past 12 months. It continues to benefit from significant UK media investment, including high-profile television advertising, and it is also available in Mini Oreo 40g packs for on-the-go snacking and vending operators.” Nash adds: “Everyday treats are an important range for retailers and for out-of-home operators. Oreo is outperforming the market in retail value and should be a core brand for C&C/wholesalers.” The savoury biscuit market is showing value growth in retail of 11.5%, and out-of-home operators predict that the sector will continue to form a larger part of their offering. Nash comments: “Ritz is one of the largest savoury biscuit brands by value, and the launch last year of Mini Ritz has added £1.4m to the brand. “With the savoury biscuit market performing strongly in retail and out-of-home, operators expect popularity to increase among their customers, so C&C/wholesalers cannot afford to miss out. Ritz offers a real variety for consumers and operators, with crackers ideal for serving with cheese and Mini Ritz for impulse purchases or as a vending product.” Another Kraft brand, Belvita performed strongly last year. According to public data, one in eight people ate the biscuit, value sales reached £27.7m year on year – an increase of 154% – and volume sales grew by 197.5%. Nash continues: “According to catering operators, the out-of-home appetite could be just as strong, with 53% agreeing that breakfast snack consumption is increasing, and

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41% already offer biscuits as an option for breakfast (Reed Business Insight). “We believe the breakfast market has been waiting for a product that is designed to fit in with changing lifestyles. For single, career-focused consumers and busy families with working parents, time is tight and breakfast then becomes a luxury rather than the most important meal of the day. “According to our research, more than a third of consumers will skip breakfast at some point during the week, with most of these citing lack of time as the reason (Consumer Analysis Ltd). “Belvita’s growth shows that breakfast biscuits are really being accepted at the breakfast table. Belvita wants to lead the charge to increase awareness of the product and make it a true alternative to the breakfast options available across the UK today.” Data: AC Nielsen unless shown.

New combination Kraft Foods’ ‘Choccy Philly? Don’t be Silly’ television campaign began last month, with comedienne Jennifer Saunders fronting the commercials. The ad is the main part of a £3.2m integrated drive for the new Philadelphia with Cadbury, including digital, PR and instore activity. The launch follows the successful introduction of the product (with Milka) in other countries. Philadelphia with Milka has become a 22.2m euro (rsp) brand in Germany since being unveiled in October 2010. Says UK marketing manager, cheese & dairy, Bruce Newman: “The launch of Philadelphia with Cadbury offers Philadelphia new growth opportunities outside its traditional cheese spread category.”

A still from the new commercial.

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snacks & biscuits General Mills has launched a multi-million pound marketing campaign to support Nature Valley’s sponsorship deal as the official cereal bar supplier to the London 2012 Olympic and Paralympic Games. The drive, which includes featuring the Games logo on packaging, begins a series of activities leading up to the global event. The campaign includes tv commercials, with a new endtag highlighting Nature Valley’s sponsorship of the Games as well as the recently-launched Oats & Chocolate sku in the Crunchy & More Granola Bar range. Nature Valley, which claims to be worth $1bn globally, is also planning sampling, plus experiential and in-store promotions. As part of the sponsorship agreement, the cereal bars will be present for sale at concessions during the Games as well as being available to volunteers and the media. General Mills sales director Neil Barker says that the brand already enjoys one of the highest repeat rates (Kantar) in the category and that growth has tripled in the last three years (IRI). The worldwide event is expected to see the brand’s sales substantially exceed the present £28.5 million-plus (IRI).

Barker adds: “Sponsoring the London 2012 Olympic and Paralympic Games is a sign of our ambition for both the Nature Valley brand and the healthier biscuits category. “It represents a unique opportunity to translate the excitement and engagement of the biggest sporting, community and cultural event ever to come to the UK into store, on a scale never seen before in cereal bars. “The logo roll-out on-pack is the first part of the integrated 2012 plan – our biggest year yet of support for the brand. This represents a one-time opportunity for us to step change demand and drive this excitement to the fixture.” Each Nature Valley 42g bar contains two snack bars.

Hot variant Pot Noodle, the snack brand from Unilever UK, is this month rolling out a Chilli Beef variant across all retail channels. Brand manager Kate Mitchell says: “Pot Noodle is the market leader in instant hot snacks with a 78.9% value share and a massive consumer fan base. The roll-out of Chilli Beef

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to all retailers will add incremental sales to the category by presenting extra purchase opportunities and attract new consumers.” Pot Noodle has a brand value of more than £90m, growing by 6.6% year on year. Chilli Beef joins the 10 other styles, including Bombay Bad Boy, Chicken & Mushroom and Beef & Tomato. The packaging is in line with the current range, but with a warm brown colour to highlight its ‘fiery’ flavour. Pot Noodle Chilli Beef has an rsp of £1.10 for the 300g pack, each case containing 12 units. All data IRI MAT 24/12/11.

It’s mostly chocolate ‘More chocolate than biscuit’ is how Bahlsen describes its premier sku, Choco Leibniz, which includes 63% chocolate. This, and all other biscuits in the range, are made in Europe – “mainly in Germany,” says trade sector manager Layne Chisholm, “but also in such countries as Poland, Switzerland and France”. Distribution in the UK is conducted by a third-party logistics specialist in Lenham, Kent. Choco Leibniz (125g) is presented in shrinkwraps of six and has an rsp of £1.99. The two styles offered are milk and dark. Chisholm adds: “Another of our leading skus is Hit chocolate sandwich biscuit (250g), which comes in trays of six – convenient for cash & carries and the retail trade. “It is price marked at 99p and is available in four varieties: choco, vanilla, hazelnut and coconut. “Choco Leibniz will soon be seen at the Nisa-Today’s trade show in Stoneleigh in £1 price-marked packs, and then in September we plan to roll out this format to the rest of the trade. This would be following a style we have already adopted for seven other Bahlsen biscuits, which also come in £1 price-marked packs.”

For further information: Bahlsen (01753) 889822 Burton’s Biscuit Co (01727) 899700 Cathedral City (0845) 606 3606 General Mills UK (01895) 201367 Kenkko 020-8202 6600 Kettle Foods (01603) 744788 Kraft Foods UK (08702) 400861 P&G/Pringles (0800) 597 3388 UBUK 020-8324 5000 Unilever UK (0800) 731 1597 Walkers Snacks (0118) 930 6666

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laundry & cleaning

Maintaining freshness Keeping premises and clothing clean can be equally important as being hygienic in the food preparation process. Who are the leaders in the category? Jon Higham is cash & carry controller for Diversey, which has a string of major accounts in this channel, including Booker, Makro, Landmark Wholesale and Today’s Group. Higham, who has been with the Weston Favell, Northants, company for five years, heads a team of five calling on the cash & carry trade, selling cleaning products that are under licence to Unilever. “The salesmen’s responsibilities are allotted by the accounts they handle, not by region,” he says. The team will soon have its work cut out when it calls on depots to sell in two new products: Surf Small & Mighty, capable of 114 washes, and the same product in a capsule format (60 per pack). The newcomer joins the existing Persil Small & Mighty, which remains a top seller. “The Surf pack offers better value for money than other comparable products,” says Higham. “It is stronger, longer lasting, is more concentrated and it has an appealing fragrance. The punchline is: ‘Just washed – freshness that lasts and lasts’.” Latest in the range from Diversey. Major products in the company’s range include Persil non-bio washing powder, Surf 90-wash, Comfort pure conditioner concentrate and Domestos five-litre.

Branded and own label Known as one of Europe’s leading suppliers of private label household and personal care products, McBride also has a number of successful brands, says Bob Smith, senior national account manager. “Consumers are making a conscious effort to get the best value, widely available products that do not compromise on quality. They are looking for brands they can trust to perform while also saving on their weekly shop.” The company’s Oven Pride offers a complete oven cleaning solution with superior cleaning performance due to its revolutionary bag concept. As ‘the UK’s leading oven cleaner’, it is planning to strengthen its position with an above-the-line marketing campaign, including tv advertising and online activities.

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Consistent quality at a competitive price.

McBride’s Clean ‘n Fresh brand is claimed to offer consumers consistent quality and reliable products at competitive prices across a wide range of cleaning, laundry and dishwash products. Smith says: “It also offers consumers great value products that really work from a trusted household cleaning brand.” The Dispel brand provides high performance and value for money. Aimed at professional users, the wide range spans dishwash, cleaning and disinfectant.

Popular names Some of the most popular brands in the household & laundry category can be found within the Unilever UK portfolio, including Persil, Comfort, Surf, Domestos and Cif. The company claims to use ‘unique consumer and customer insights’ when launching such new products as Persil’s Small & Mighty. A company spokesman says: “We continue to invest in creative marketing campaigns and impactful trade marketing initiatives to ensure all products succeed at the point of purchase.” He adds: “Some consumers, especially in cleaning, have reduced the repertoire of products that they are using and are moving away from the more specialist items. This has meant they are turning to trusted brands such as Cif and Domestos as they know they will deliver excellent results at a cost-effective price.” Last year the company introduced the ‘Total Toilet Cleaning System’, a selection of products reinforcing its position as ‘leader in germ kill’. And more recently it revamped its core bleaches range to create Domestos Extended Germ Kill, which guarantees that ‘nothing protects as long’.

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laundry & cleaning Referring to Domestos, brand manager David Titman says: “It continues to show strong growth within the category. In the spring cleaning season it is the perfect time to inform consumers about the most reliable and effective products on the market. “With its new patented formulation, Domestos Extended Germ Kill will achieve unbeatable cleaning results, which will last longer than ever before.” In laundry (worth over £1.3bn), Persil is said to be the leading brand, with a 15% share. The company has identified a rise in demand for 2in1 laundry products, enabling consumers to buy one product to suit all laundry needs. In this respect it unveiled Persil 2in1 with Comfort. Last year Comfort launched two fabric conditioner products: Bright Whites and Bright Colours. Surf relaunched its range and introduced reduced packaging and pack sizes. It also unveiled four improved variants: Tropical Oasis of Ylang Ylang & Lily, Mediterranean Orchard of Lemons & Mandarin Flower, Secret Garden of Lavender & Jasmine, and Mystic Waterfalls of Lotus Flower & Wild Freesia. Data SIG to 29/10/11 (value sales).

Dual relaunch P&G Professional has relaunched two of its flagship professional laundry products – Ariel and Lenor – ‘to help hospitality operators deliver outstanding results time and again’. They come with a new packaging design and formulation. Ariel Professional is available in liquid and powder form for regular and coloured washes. It offers five core actions in one wash, eliminating the use of multiple products and saving time. With the ability to deliver whiteness, freshness, dirt removal, deep down cleaning and tough stain removal in one load, it is ‘able to meet operators’ all-round laundry needs without compromising on performance’. Lenor Professional is now available in three styles: extra softness, extra freshness and sensitive care. Says business leader Svetlana Lutchmaya: “This allows professional consumers to make informed choices about the fabric conditioners they buy to enhance their laundry results. “With four additional actions guaranteed with every wash, Lenor Professional can offer operators a solution that delivers excellent water absorption, easy to iron, extra fluffiness as well as freshness and softness technologies designed to withstand the effects of tumble drying. She adds: “Delivering outstanding laundry results is a must-have for hospitality operators, especially as customers become more discerning about their out-of-home experience.”

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To coincide with the relaunch, P&G Professional has developed a new laundry website to equip operators with the information they need to optimise their laundry (www.professional-laundry.co.uk). Says Lutchmaya: “Running a business is complicated enough without the added concern of selecting which laundry product to buy. Our new website has been designed to offer operators a one-stop shop of information to help them make informed choices about products.”

Stain removal Susan Fermor, senior brand manager of laundry products manufacturer Dr. Beckmann, says the stain removal category is the largest sector of the laundry aids market, accounting for 65% of total sales, worth £80m. The total laundry aids sector is valued at £124.5m (SIG). The company claims to have increased sales by 23% year on year and has ambitious plans for 2012, including more new products and increased brand investment. Fermor comments: “Our sales increase and company success is testament to our laundry product range and shows our perceived value from the consumer. “Our products are a must-stock for convenience stores and larger newsagents. Dr. Beckmann is a recognised brand, with products that will always work first time. Consumers trust us to provide them with emergency solutions for their laundry, as an antidote to problems – for items such as work shirts and school uniforms.” Among the new launches is a Stain Devils Survival Kit (rsp £3.99), described as “the perfect solution for any stain emergency in the home”. The pack includes three solutions, designed to tackle cooking oil & fat; tea, red wine, fruit & juice; and ballpoint ink & felt tip. Each pack comes with a fridge magnet to show which Stain Devil to use for each stain. The Survival Kit is guaranteed to remove over 40 of the toughest stains, including beer, mayonnaise, sun cream and beetroot. There is a money-back guarantee for customers who are not 100% satisfied with their purchase. Dr. Beckmann also makes Service-it (rsp £2.99), a liquid cleaner for the domestic washing machine that removes residues from the door seal, detergent drawer and drum. Service-it Deep Clean has been designed to clean washing machines from the inside out, breaking down and removing bacteria that grow in the humidity of the machine. It is claimed to be able to remove 99.9% of micro-organisms, bacteria and biofilm, maintaining the performance and reliability needed in the home for ultra clean clothes, as well as leaving a fresh clean smell.

For further information: Diversey (01604) 405 311 Dr. Beckmann (0845) 0178 000 McBride 0161-653 9037 P&G Professional (0800) 716854 Unilever UK (0800) 776644

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What have they all got in common?

Ask Next time you pick up a successful brand in household and personal care products it’s a fair bet it came from Robert Mcbride Ltd. That’s because we are the clear leader in the sector at over twice the size of our nearest rival. We supply over 90% of Europe’s leading retailers with our products; we have our own portfolio of brands; and we contract manufacture. We fill 100 million bottles of bleach a year from our Middleton factory alone. Any brand can claim to be a top seller, but nobody knows the market quite like we do. So if you want to know what’s real value and what isn’t, what will sell and what won’t, ask Mcbride. www.mcbride.co.uk


tobacco

Innovation is key Tobacco products generate retail sales of around £15.3bn annually (Nielsen MAT to January 2012). In cigarettes, the market is led by Imperial’s Lambert & Butler king size, valued at £1.36bn (down 4.6%) and JTI’s Mayfair king size on £789m (up 1.7%). Drum roll-your-own tobacco from Imperial Tobacco sees a category moves towards the tobacco display ban and the new addition this month with the launch of an ‘additive free’ associated increase in sales of illicit tobacco. variant – meaning only the tobacco leaf is used in the Another newcomer is Player’s, a ‘sub-value’ priced brand manufacture, and no stem. in a silver pack. “This is the first credible additive-free brand in the Commenting on the reasoning behind the launch, Tranter market,” says brand manager Ryan Hopkins. The 12.5g says: “With the ‘value-seeking’ trend increasingly prevalent pouch has an rsp of £3.60, and there is also a price-marked among UK adult smokers, the economy and value-priced pack at £3.56. cigarette sectors have seen tremendous growth in recent Within the £15.3bn tobacco market, RYO accounts for years, accounting for over 50% of all cigarette purchases. £1.5bn, of which just 0.5% is the additive-free segment. “We have chosen to position Player’s just below the value Drum is claimed to be the world’s No.2 tobacco label and priced sector, making it the first ‘sub-value’ priced cigarette fifth in the UK, where Imperial already markets blue (full brand available in the UK.” blend) and gold (mild) variants. Says Hopkins: “We expect there to be a slight bias for Drum Additive-Free in London and the south-east.” Patrick Toms, Imperial Tobacco’s head of the distributive In another recent innovation, Lambert & Butler king size channel, says the company invests heavily in its sales force, gold and menthol 20s became available in ‘Glide Tec’ packs. which includes a team of highly trained business developSue Tranter, consumer marketing manager, says: “Our ment executives who are focused on the needs of retailers. research consistently shows adult smokers prefer packaging “We provide this additional resource to our partners in the that is functional as well as stylish, convenient and high qualdistributive channel to share our extensive category knowlity. These packs encompass all of these qualities. edge and ensure that, by working together, we can achieve “The indications are that ‘Glide Tec’ will meet the preferour mutual business goals. Our team covers every tobacco ences of Lambert & Butler gold and menthol smokers. Unlike distributor in the UK, offering impartial category advice on a the full strength variant, the new packs replace the existing broad range of topics.” ‘holographic’ styles for king size 20s. All Lambert & Butler Latest research by the supplier demonstrates that, like king size 10s remain in the current ‘holographic’ packs.” adult smokers, tobacco retailers regard availability as the The rsp for both gold and menthol king size 20s is £6.57; most important factor when choosing where to make their price-marked packs are available at £6.57 while stocks last. purchase. Location, price, offers, staff attitude and layout are Imperial’s new 50g packs of JPS cigarette tobacco (with a also important factors. foiled seal) are designed to offer convenience, freshness and Toms comments: “Demonstrating best practice in terms tidiness, enabling smokers to create 20 cigarettes for £2.80, of availability means stock on the shelves in the tobacco after purchasing the cigarette maker and tubes. room, not hidden away in the store room. Head of sales Martin Goodall says: “We continually “Having an effective stock replenishment system and undertake research into the preferences of adult smokers planning when to re-stock shelves are also key to maintainboth in the UK and other markets. The insights gathered ing excellent availability. ensure our category-leading portfolio reflects the prefer“If you go out of stock during peak periods and then have ences of the 12 million UK adults that choose to smoke. to re-stock the shelves in a “Over the past year, busy tobacco room, not only economic conditions have will the task be difficult for staff, prompted growing numbers but you will risk alienating your of consumers to seek more customers. Many retailers have value for money from their a choice of cash & carries to tobacco purchases. Many are visit, so ensuring they get the switching to roll-your-own best service in the depot is tobacco for the control and vital.” economy offered by that Toms says the Imperial sales segment. force has been been working “Innovations, which closely with cash & carry/wholereflect consumer preferences salers to help them realise the for quality brands at value The latest from Imperial Tobacco. potential of RYO. prices, are imperative as the

Distributive channel

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tobacco Toms (pictured) adds that increasing the amount of space devoted to RYO products has proved effective and that the number of retailers stocking price-marked packs over the past 12 months has increased significantly. “At Imperial, we have been highlighting the importance of including a large range of pricemarked packs to C&C/wholesalers to ensure their range reflects what retail customers are looking for.” As the start of the tobacco ban gets closer, says Toms, “the challenges faced by wholesalers and cash & carries will grow. However, these challenges represent significant opportunities for the channel as UK retailers will increasingly rely on C&C/ wholesalers to ensure they can continue to offer a first-class service to the general public and provide customers with their preferred brands.” Referring to the effect the Olympics will have on sales, he points out that, with the influx of overseas visitors to watch the events, stocking brands such as Gauloises, popular in France, Germany and Spain, will give retailers an edge. “We are also pleased to hear that a number of C&C operators will be changing their trading times during this period to ensure retailers can stock up when it suits them.”

Buoyant year for RYO Last year was a buoyant one for RYO filters, papers and smoking accessories, with the market growing by 12.2%. Mark Alldred, marketing manager of Republic Technologies (UK), which supplies the Swan, Zig-Zag and OCB brands, says the advance was fuelled by major product and packaging innovation and more cost-conscious smokers switching to RYO. He adds that demand will continue growing and that the company is urging C&C/wholesalers and retailers to make the most of this opportunity by increasing the space allotted to these products. “The importance of offering value for money cannot be underestimated. C&C/wholesalers who understand the

benefits of offering added-value products such as RYO combi-packs, multi-packs and category-boosting lines such as menthol filter tips, stand to benefit most in 2012.” The Swan brand now offers new, slimmer combi-packs (rolling papers and filters) with a unique slide and catch opening mechanism, and in a wider variety of options. This, says Alldred, has led to seven out of 10 smokers indicating they are ‘very likely’ to buy the combi-packs, which have a smaller shelf footprint. New regular and king-size rolling paper multi-packs are also attracting consumers to the Swan brand, whose rolling papers now feature a closable flap to keep the papers at their best. Swan’s growth in the filter market is at 15.3%, with a 25.1% increase in menthol filters. Rolling papers have also achieved significant growth, says Alldred, showing an 18.1% uplift compared to a mere 0.7% rise in the total market. “This growth will be maintained as Republic Technologies UK has differentiated its rolling papers from the competitive set, introducing a textile-blended paper which, according to independent market research, consumers prefer. “Textile papers are easier to roll, smoother and slower burning than 100% wood papers, and these are all factors that people look for in RYO products.” Brand support, spearheaded by Swan’s series sponsorship of the 2011 MCE Insurance British Superbike Championships and title sponsorship of the championship winning Swan Yamaha team, ensured that the logo was seen by millions of people on television and in national newspapers. The supplier is also rolling out a national advertising and sampling campaign for Swan, forming part of a total £1m marketing investment for the brand. Ads appeared in high circulation national daily newspapers in the run-up to Christmas. In addition, a nationwide sampling campaign ran throughout December in which thousands of pocket-size Swan combi-packs were issued to adult smokers throughout the UK. A new Swan website (http://www.houseofswan.com) was launched at the end of last year. All data: Nielsen Market Track November 2011.

Plenty to choose from in the Swan range.

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tobacco Top seller in C&C/wholesale It’s a known fact that tobacco is the biggest fmcg category by sales value and a major source of income for any cash & carry, with over half of a depot’s turnover generated from purchases made in the tobacco room (IGD 2010). At JTI, Mayfair is the top-selling brand in the C&C/wholesale channel, with a 12.4% share. The supplier’s leading RYO brand, Amber Leaf, claims 33% of this segment in the same channel, and Hamlet, the UK’s No.1 cigar, accounts for 41% of cigars sold through C&C/wholesale. Commenting on how JTI supports the distributive trade, Steve Dyas, wholesale & symbol trading director, says: “This is an incredibly important part of our business. We continue to invest in both our brands and our people to generate more sales and provide a great service to our customers. “Our accounts teams work closely with tobacco room staff in order to provide expert guidance on the category, as well as helping them keep up to date with any changes in legislation, maximise sales, and retain their retailers by providing them with excellent service and support.” He adds: “We would advise depots to take the time to talk to their JTI representative and work with them to get closer to their customers, tap into their expertise of the category and the local area, and implement their advice in-depot to maximise sales of tobacco.” Dyas reminds the trade of the new display rules that come into force in England in April 2012, saying: “Failure to comply with the new regulations could result in penalties, including large fines and/or imprisonment. All large shops and C&C/wholesalers with over 280 sq metres (3,000 sq ft) of display/selling area will be affected.” To get the message across, JTI launched Getting Ready for the Tobacco Display Ban, a booklet designed to help the C&C/wholesale trade prepare for changes. It can be downloaded from the company’s dedicated tobacco retailing website (www.tobaccoretailing.com). Dyas continues: “We are wholly committed to helping C&Cs understand how these legal changes will impact on

their business and how to prepare for them in an effective and compliant way.” JTI has been working closely with tobacco room staff in recent months to highlight the important changes to the display of tobacco products. And this support will continue during the year. JTI is also providing cash & carries with bespoke PoS material and specific in-depot activity to help retailers make the most of any new product development opportunities and help them understand the category better. This support is available for products such as Amber Leaf, Benson & Hedges Gold and recently launched Sterling Rolling tobacco and Silk Cut Choice. “With Silk Cut Choice, there is educational PoS in tobacco rooms, the objective being not only to inform the trade of the launch, but also to update them on how the cigarette works with a ‘Press to Change the Taste’ message running across all materials. JTI also supported the introduction of new-look Mayfair with selected C&C events across the UK, tobacco retailer competitions and depot-specific PoS material. The same applies to new imagery for Berkeley and the launch of a kingsize variant.

Fastest-moving segment Dyas says that in the tobacco market, value cigarettes is the UK’s fastest-growing sector, accounting for a 31.4% volume share. “The growth of the RYO sector is also predicted to continue for the next three years (JTI estimate), as existing adult smokers seek out greater value for money, especially by purchasing larger pack formats such as 25g and 50g. Value RYO currently accounts for 9.4% of the total UK RYO market.” JTI recently reduced the cost prices and rsps of its range of Berkeley cigarettes to ensure the brand is well positioned to meet the growing consumer demand for value-for-money cigarettes. Other data relating to JTI brands: Sterling is the UK’s No.1 value cigarette brand, selling more than eight packs every second in the UK (JTI estimate) and is in growth in every UK region. Winston is the second best-selling cigarette brand in the world (JTI estimate). JTI’s premium brands include Benson & Hedges, Silk Cut and Camel. A limited-edition pack design was recently launched for B&H Gold. The ‘tailoring range’ was rolled out across all channels early last month and will be available while stocks last. At the end of last year, Silk Cut launched its first capsule filter cigarette – Silk Cut Choice. Another development sees Sterling cigarettes appearing in a limited-edition pack in all channels.

One of JTI’s leading premium brands.

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• Cash & Carry Management • March 2012

All data: Nielsen Scantrack unless shown.

www.cashandcarrymanagement.co.uk


CAMEL. THE WORLD’S

6TH BESTSELLING CIGARETTE BRAND* *Euromonitor 2010

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tobacco Tobacco room rules Ian Robertson, head of corporate and regulatory affairs at British American Tobacco UK, whose brands include Pall Mall and Vogue Perle, referring to the various dates for effecting the tobacco display ban, says: “Wholesalers and cash & carries in England will not have to cover their tobacco display as long as they comply with the following rules: The tobacco room must only be accessible to genuine members of the tobacco trade. The tobacco room, the products within it and their prices must not be visible to other customers outside the tobacco room. Robertson adds, however: “Tobacco products being delivered to the tobacco room need to be covered while being carried through the premises. They must also be covered while being conveyed from the tobacco room to the till point. “Businesses should contact their local trading standards authorities to ensure they are satisfied with any compliance arrangements that are put in place.” Robertson says that, in the spring, the Department of Health intends to consult on ‘options to reduce the promotional impact of tobacco packaging, including plain packaging’. “This will affect C&C/wholesalers in many ways. The illicit trade in tobacco would receive a big boost, with the potential for an increase in production and distribution of counterfeit tobacco by criminals. “Currently counterfeiters have to go to considerable lengths to match the colours and designs on packs to convince customers they are getting the real thing. However, if all packs were plain, detection becomes much harder and counterfeiters would find it easier to infiltrate their product into the market.” He adds: “All of this undermines the legitimate trade of honest, hard-working wholesalers, retailers and manufacturers. And, perhaps worst of all, we have a situation where further control measures may be under consideration even before the display ban has been implemented. “We encourage all interested parties to respond directly

• •

to the consultation when it is launched and make their views known on this subject to their local MP.” Robertson invites any C&C/wholesalers to submit questions on the BAT UK website: regulation@bat.com.

Leader in miniatures Scandinavian Tobacco Group, whose products are sold in over 115 countries, is best known in the UK for Café Crème and Henri Wintermans cigars, although the range extends much further. Globally, it is the leading player in pipe tobacco (as well as Europe’s largest) and the third largest in cigars. Domestically, the Café Crème cigar brand family is worth over £75m in annual sales, within a category worth £297m. Miniature cigars, like Café Crème, account for more than 60% of all cigar sales in volume terms. ST Group UK, which claims to have five of the top 10 selling miniature cigars, recently announced a deal with SFR Tobacco International, making it the distributor for that company’s Natural American Spirit brand.

This label offers consumers a range with the ‘highest quality, premium grade tobacco – completely additive free’. The NAS rolling tobacco range includes three skus in outers of 10 x 12.5g (rsp £3.83 per pack), 5 x 25g (£7.37) and 5 x 35g (£9.49), while the cigarette offer comprises two skus: Yellow and Blue packs of 20 cigarettes (£6.95). Head of marketing Alan Graham says: “RYO has been one of the success stories of the last few years and it’s only natural that we would look to develop our presence in the category.“ Referring to the display ban, he says that STG subsidiaries in regions such as Canada and Ireland can testify that the legislation has had little or no impact on reducing tobacco sales. The latest to join the BAT portfolio is Moments (rsp £3.10), a range of miniature cigars expected to capitalise on the growing value-for-money segment. The roll-out – including through C&C/wholesale – follows successful trials in grocery. The two variants are Moments Blue and Moments Original, each in a crush-proof tin of 10.

For further information:

Creating interest at a Nisa-Today’s trade show.

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• Cash & Carry Management • March 2012

BAT UK (01296) 335000 Imperial Tobacco (0117) 963 6636 JTI/Gallaher (0800) 163503 Republic Technologies UK (01494) 533300 Scandinavian Tobacco Group UK 020-8731 3400

www.cashandcarrymanagement.co.uk


NEW

Freephone 0800 037 1155 for more information

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Cash & Carry Management  

March issue 2012