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Bestway hit by multiples’ pricing over Christmas DCS’s Shortt honoured for services to the economy

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Spotlight on the executive director of SWA Kate Salmon

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The business magazine for cash & carry/delivered wholesalers



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Little tinsel at Christmas Waitrose, part of the John Lewis Partnership, enjoyed sales of more than £300m over the 12 days of Christmas – a 4.3% like-for-like increase on the previous corresponding period. By contrast, another retail multiple, Morrisons suffered a 2.5% decline over the festive season. As public companies they, and others like them, have to declare their earnings at different times of the year. But most C&C/wholesalers can be less open with information, should they choose to do so. The point is mentioned because the plan was for this issue of Cash & Carry Management to include a review of Christmas trading experienced by some of the leading C&C operators and delivered wholesalers. Disappointingly, only one, Bestway Wholesale, responded to our request for information, although Booker intimated that reference to the holiday trading pattern would appear in its quarterly trading statement – too late for this issue. So while we are happy to publish details of what went on within the 62 Bestway and Batleys branches, what does the secrecy of the others suggest? Perhaps, like the Olympics surge that never happened, the Christmas ‘rush’ fared likewise. While Bestway Group chose to exclude percentage movements overall and in various categories, it was forthright in giving indicators in different elements of the business. Using that as a guide, we can assume that confectionery and alcohol were hardly Christmas ‘crackers’ generally in C&C/wholesale.

Although Bestway experienced good returns from Ferrero Rocher over Christmas, it fared less well with other confectionery brands, and with alcohol ... see p.4


4–8 Mixed Christmas results for Bestway ... Chetan in STL installation ... OBE for DCS’s Shortt ... Monak switches to Landmark ... degree for Sir Anwar Pervez OBE ... Valuable contract for 3663 ... German group buys KP Foods.





customer cares


seasonal gifting


products & promotions employment law


price marking


Mervyn Gilbert

Managing Editor

Kirsti Sharratt

Contributing Editor Media Sales Manager

John Wood Clare Phillips

Business Development Manager David Ford Publishing Director

Martin Lovell

4,560 July 2011–June 2012



information technology


Mervyn Gilbert editor


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 at £52 per year (single copies £5). Overseas subscription: £80.

Cash & Carry Management

• January 2013 • 3


IN BRIEF Graduation SPAR Scotland has held the graduation ceremony for its newly-launched symbol retailer and staff training course – STEP (Spar Training & Education Programme) in conjunction with regional wholesaler CJ Lang, at whose Dundee offices the awards were presented. Although the course was free to the 28 who successfully completed it, it has a market value of £1,500. Subjects covered included customer service, legal compliance, fresh foods, staff recruitment and retention & performance management. SPAR has also named Adele Irlam and Anthony Sappor as retail national account managers.

Carvery meals Monaghan-based Swift Fine Foods has won a £2m-a-year deal to supply Musgrave’s Supervalu chain with a range of ‘premium’ own-label carvery meals, including two with beef, one with turkey & ham, another with pork and a fifth with bacon.

Free wine Winner of a recent prize draw, sponsored by wine supplier E&J Gallo in conjunction with Today’s Group, was Fran Percy, who runs a Today’s Local store in Broughton, Lincs, together with her husband. She received £1,000 worth of stock.


Sweets & booze decline... Although Bestway Wholesale achieved some notable gains over the Christmas trading period, in two major areas – alcohol and confectionery – the returns were disappointing. Operations director David Gilroy, commenting on trade generally during the holiday, said: “It was tough for both Bestway and our customers. We found it very competitive, but we managed to secure single-digit growth by the end of the month.” Strong performers were butchery and fresh produce, as well as the Best-in ownlabel range. “Branded lines that did well for us,” said Gilroy, “were Boost cans, Heinz soups and St Ivel cream.” And although he also included Ferrero Rocher in this context, none of the other major confectionery brands were listed among the ‘pluses’. Two ‘clear winners’ were

Gilroy: Bestway will look hard at 2013 pricing.

Barr soft drinks and ownlabel drinks, while in cider there was good growth in the ‘style’ category. Commenting on the major disappointments over the holiday period, Gilroy described confectionery sales as “poor, mainly due to us being completely outpriced by the multiples on staple lines such as Quality Street and Roses tins. “We will have to look hard at this for 2013 as we are

being disadvantaged on price.” And referring to alcohol he said: “It was a problem throughout. The multiples launched a murderously competitive attack on the market from mid-November. “On our pricing we found this difficult to combat. In addition, there is no doubt there were substantial amounts of duty frauded stock in the market.” As regards promotions, Bestway customers were more interested in straight competitive prices. “They tended to shop around and price compare extensively,” said Gilroy. Despite these let-downs, another plus for the C&C operator was online sales, which were buoyant. “We achieved our highest web sales ever,” Gilroy commented. “We expect this to continue to grow.” Tel: Bestway Wholesale 020-8453 1234.

...but many pluses for Bestway Christmas might have been disappointing for Bestway (see story above), but there were many encouraging aspects to the financial year to 30 June 2012. Group chief executive Zameer Choudrey (pictured) announced total pre-tax profit of £173.2m – up 45.5% on the previous 12 months. Turnover rose from £2.3bn to £2.5bn. These figures include returns from the group’s banking and cement manufacturing activities.

• Cash & Carry Management • January 2013

And while pre-tax profit of the C&C/wholesale business dipped from £60.2m to £58.2m, Choudrey said the 3.3% drop was due to integration costs of the Scottish Bellevue and Martex operations, as well as set-up expenditure on the new Brighton and Team Valley C&Cs and the effect of the economic climate. “These expansions continue to do well,” he said, describing Bestway as “the UK’s largest trade-only wholesaler”.

Own-label sales rose by 14.1% to £103m during a period when the company launched the Best-in Essential range. Export business grew by 26%. The company’s new transactional website has resulted in web sales reaching £2.5m a week. Looking ahead, Choudrey told Cash & Carry Management: “Despite the tough trading conditions, we are confident we will continue to provide maximum support to our (C&C/wholesale) customers.” Tel: Bestway Group 0208453 1234.



Centralised control Chetan Wholesalers, based in Barking, has gone live with an integrated merchandise management and tilling solution from STL Technology Solutions. Comprising Merchandise Management Systems, five tills with central cash capability, and a chip & PIN system, the solution has given the cash & carry operator centralised control of its stock. Director Kishore Mandalia said: “Effective stock management is our core business imperative. “By giving us greater visibility and control of this operation, STL’s solution will help us to order more costefficiently, be in a position to take advantage of special offers, and ensure we are giving our customers what they want.” STL has switched all of Chetan’s existing product

Back at Booker Former Booker catering sales director Ron Hickey, who took a sabbatical over a year ago after family problems, has returned to the company as project director. After being forced to take temporary leave, Hickey was replaced in the top catering role by Stuart Hyslop, who continues to occupy that position. Hickey told Cash & Carry Management: “I am working with our branch and sales development teams to further strengthen relationships with customers to better meet their needs in this tough trading environment.” Tel: Booker Group (01933) 371000.

data onto MMS, which minimised disruption to trading. And because the IT specialist’s solutions are designed specifically for cash & carries and wholesalers, the methodology could easily be absorbed by staff. Claimed to be the largest independent family-owned cash & carry operator in east London and Essex, Chetan Wholesalers specialises in confectionery, grocery, beers,

wines & spirits and snack products. Operating from a 68,000 sq ft depot, it has a turnover of almost £30m. Tel: STL Technology Solutions (0844) 472 4727. Tel: Chetan Wholesalers 020-8594 1812.

OBE for Shortt Denys Shortt (pictured), founder of wholesaler DCS Europe, of Stratford-uponAvon, received an OBE in the New Year’s honours list for services to the economy. Shortt started the business in 1994. It is now the UK’s leading distributor of health, beauty and household brands, with sales of £150 million and 250 employees. He also heads two technology companies – Enable Software and Deal Track – and created the Enliven brand of health & beauty products, which are made in England and exported to 70 countries worldwide. He recently invested over £4m in a new toiletries factory in Stratford-upon-Avon. In his younger days, Shortt, who was selected to play hockey for England, was aiming for a career in sport. But instead he worked for his father, a former tea planter in Assam, and who in the ‘80s was manufacturing tea under


the Shakespeare brand in Henley-in-Arden. He is currently on the board of Warwick Business School and he also advises at the Royal Agricultural College on entrepreneurship. Tel: DCS Europe (01789) 208000.

Successful month Landmark Wholesale’s own brands continued to perform well in November, taking sales for the financial year to 9% ahead of those for the previous corresponding period. Lifestyle Value, No3 tobacco products, LSV sports energy drinks and Caterers Kitchen all made significant contributions to the advance, said business development director Chris Doyle. “Own brands are proving their worth in these difficult trading times. Customers are looking for better value without sacrificing too much in the way of quality, which is demonstrated by the incredible success of our Lifestyle Value range since its relaunch last year. “This helps retailers, too, as they need to be able to offer an alternative to brands as well as compete against multiples’ own labels.” Tel: Landmark Wholesale (01908) 255300.

Costco on the up Total Costco sales for the five weeks to the end of December increased by 12% compared with the previous corresponding period – from $10.05bn to $11.21bn. This brought the figure for the first 17 weeks of the fiscal year to $34.42bn ($31.68bn) – a 9% rise. The international division, with 174 outlets, including 23 in the UK, was up 10% for the five weeks and 8% for the 17-week period, while the US & Puerto Rico operation (448 stores) showed comparable 8% and 6%

upward movements. Tel: Costco (01923) 213113.

Green award 3663’s Nottingham depot has won a Green Guardian environmental business award for its commitment to making environmental improvements on-site. The citation also referred to the wholesaler’s support for the creation of wildlife and food growing areas at two schools in Derbyshire. Tel: 3663 (0370) 3663 000.

Cash & Carry Management

• January 2013 • 5


Another for Landmark Landmark Wholesale, which last year announced the addition of four new members (Cash & Carry Management: July 2012), has added another – Monak Ltd. The family company, which is headed by Hanif Kathiara, operates mainly with customers overseas, but also does some UK business. Kathiara said: “We handle food – mainly canned goods

– as well as toiletries, using two rented depots. The main one is in Enfield and the other, which we only use when we need to, is in Greenford. Our turnover is around £5m. “The major territory for us overseas is West Africa, largely Ghana and Nigeria. From time to time we also deal with Pakistan and Jordan.” Monak (named after

Marketing supremo SPAR UK’s new marketing head (with effect from 11 March) is Philippe Rondepierre (below), who joins the group’s Harrow head office team after spending 21 years with the symbol’s Scotland wholesaler CJ Lang & Son, latterly as sales controller. In his new position, Rondepierre will be responsible for driving and implementing the

group’s sales plan. He heads a team of three. His role will also include the task of delivering all the marketing elements within the group’s 10-point ‘Inspiring Growth’ strategy. Rondepierre takes over from Adam Margolin and reports to Debbie Robinson, SPAR UK managing director. Tel: SPAR UK 020-8426 3700.

From P&H to Brakes Mike Park has joined Brakes as business unit director for the west region. He was formerly retail sales director of Palmer & Harvey for two years. Before joining P&H, Park was employed as director of sales at InBev and of its parent company, AnheuserBusch. Other regional business unit directors at Brakes are: Mark Bruce (Scotland), Richard Palentine (north of England), Richard Jones (the


east) and Kevin Hughes (in charge of Woodward Foodservice). All report to the foodservice wholesaler’s divisional director Jeremy Woodward, who commented: “We are seeking to develop our market-leading service still further by delivering bespoke solutions to customers, which will help them develop their businesses and increase profitability.” Tel: Brakes Group (01233) 206000.

• Cash & Carry Management • January 2013

Kathiara’s daughter Mona plus the first letter of the surname) was formerly a member of Sterling Supergroup for 18 years. But, as Kathiara’s son Aman said: “We thought it was time for a change.” The other two most recent signings for Landmark are G-A-P Convenience Distribution, of Preston, part of SPAR wholesaler James Hall, and former Today’s Group member First Choice Wholesale Foods, of Burton upon Trent. Tel: Landmark Wholesale (01908) 255300. Tel: Monak 020-8904 6367.

Frozen consistency The frozen food retail market has been in value growth for 25 of the last 26 quarters, according to the latest figures released by Kantar Worldpanel. The statistics show a year-on-year value rise of 5.8% for the period to 25 November 2012. There was also volume growth of 1.6%. The UK retail frozen food sector is now valued at just under £5.6bn. Frozen meat and poultry products have been the star performers, showing 10.3% value growth, as well as a 2.8% volume rise. Commenting on the Kantar data, Brian Young, director general of the British Frozen Food Federation, said: “They demonstrate that the industry is continuing to thrive despite the recession.” Tel: British Frozen Food Federation (01400) 283090.

Sir Anwar honoured

Resplendent Sir Anwar in ceremonial robes.

Bestway founder and group chairman Sir Anwar Pervez OBE has been awarded an honorary degree from Bradford University in recognition of his commitment to business and support of charities. He received the Doctor of Laws degree in the city where his working life began – as a bus conductor – before going on to build the UK’s 7th largest family business. Under his guidance, the group has donated over £13m to support charitable activities in the UK. Sir Anwar was made an OBE in 1992 and was knighted seven years later. Tel: Bestway Group 0208453 1234.

Extended deal Booker kept its ‘Prices Locked Down’ deal running until 4 January. Sales director – catering Stuart Hyslop said: “Over 14,000 more customers are buying these products than were buying them last year.” Sale and return on all drink and ambient lines was also available. Tel: Booker (01933) 371000.


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Travelling in right direction 3663 has won a £60m threeyear contract to be SSP UK’s foodservice provider. The delivered wholesaler will supply over six million items to the company’s bars, restaurants and cafés in train stations and airports operating under such names as Upper Crust, Café Ritazza, The Pasty Shop, Camden Food Co and Pumpkin. The supply arrangement covers frozen and chilled food, including dairy products. Less than a year ago, 3663 also won a contract for SSP UK’s sister company, Rail Gourmet – a deal worth around £10m a year. SSP UK executive Greg Woodland said: “Throughout the tender process, 3663 showed commitment, integrity and innovation. “We built strong relationships with them over the interim trading period when DBC Foodservice collapsed and, during the subsequent tender process, we felt there

Euston Station branch.

was a genuine culture fit between our two businesses. “Most importantly, 3663

was able to meet the diverse needs of our business.” Andy Kemp, 3663 group sales director, commented: “This new contract win is testimony to how closely we understand and work with our customers. We’re proud that we’re delivering quality food at a good price and that our business improvements and innovations are responding to our customers’ needs.” Tel: 3663 (0370) 3663 000.

Funding for EPoS Blakemore Wholesale is offering Lifestyle Express retailers funding for EPoS systems. The support – in some cases free of charge – will be provided through the Landmark Wholesale member’s partnership with MICROS Systems UK. Blakemore Wholesale’s sales director Tony Bromwich said: “We are confident that the accuracy and

control retailers will gain from the MICROS Lifestyle Express EPoS will reduce their costs and wastage, and increase annual turnover by at least 1%, and in some cases by as much as 5%.” The EPoS systems link directly to the wholesaler for instant online ordering and promotions. Tel: Blakemore Wholesale (01902) 371515.

Winter Warmers Bestway Group has launched a range of ‘Winter Warmers’ for independent retailers. The selection of more than 20 non-food products includes heavy duty ice scrapers for the car and a set of ice grippers as overshoes. Outdoor clothing is also on the list, with items such as knitted beanie hats, long pile ear muffs, gloves and scarves – all available in both adult and children’s sizes. Other products include a wrap-around blanket and a sledge. Prices start at 59p, allowing retailers to make a minimum margin of 30%. Salim Setra, senior negotiator for non-food, said: “Our ‘Winter Warmer’ range gives independents the opportunity to boost basket spend, with products at the right price.” Tel: Bestway Group 0208453 1234.

KP swallowed by Intersnack Intersnack Group, based in Dusseldorf, is the new owner of KP Snacks, formerly part of United Biscuits UK. KP, based in Rotherham and second to Walkers among UK snack manufacturers, markets such brands as McCoy’s, Hula Hoops, KP nuts and crisps, Space Raiders, Nik Naks, Wheat Crunchies, Skips, Phileas Fogg, Discos, Roysters, Choc Dips, Brannigans, Frisps, Mini Chips and Cheese Footballs. In addition to these brands, the undisclosed deal covers manufacturing facilities and a head office.


UB will retain ownership of its baked bagged snack brands, manufactured in its biscuit factories and including Mini Cheddars and Twiglets. With an annual turnover of £280m, KP Snacks employs about 1,500 people. The enlarged Intersnacks business, operating across 11 European countries, will have sales of £1.7bn and a payroll of 8,000. David Fish, UB Group non-executive chairman, said: “KP Snacks is an excellent fit into Intersnack’s existing operations. The deal ensures our brands continue

• Cash & Carry Management • January 2013

Stanley, Co Durham, is one of three Intersnack UK sites.

as part of a major European snacks business, which gives them the scale and support needed in a competitive market place – markets where the company is active.” Intersnack’s existing UK operation (with sites in Stanley, Co Durham; Haverhill, Suffolk; and Corby,

Northants), has a turnover of around £80m. Its brands include PomBear, Penn State and Percy Dalton’s. UB is jointly owned by the Blackstone Group and PAI Partners. Tel: Intersnack UK 01207291910.


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Wider range with Nisa’s help Mamma As well as progressing with plans to have eight Nearbuy fascia retail stores in the south-west, Sugro UK is pursuing a programme to extend the range of goods carried by smaller independents among the 16,000 serviced by its delivered wholesale members. Ian Irvine, the group’s head of retail development, said: “Some 30 members supporting our Sweetbreak scheme (of which there are around 1,500 participating retailers) will be targeting the

new concept which we are code-naming S-stores.” He added: “The stores, typically, will be those with weekly turnovers of £5,000 and upwards, as opposed to the £20,000 per week for

Over £3,000 raised

Pictured at the charity event with Debbie Moore and Clare Hughes of Time is Precious are L&F Jones’ managing director Simon Jones (left) and chairman Martin Jones.

Landmark Wholesale West Country member L&F Jones recently held its 16th annual charity gala dinner in Bristol. In aid of Time is Precious, the event – which raised more than £3,000 – took place on board the SS Great Britain and and was attended by staff, customers, suppliers and representatives of the charity. An auction was hosted by Ray D’arcy, director of the delivered wholesaler, and managing director Simon Jones. Four local customer awards were presented – to CircleBath Hospital (special recognition), Sirona Care &


Health (foodservice caterer of the year – non-licensed), Old Station Inn, Hallatrow (caterer of the year – licensed), and Hands Tea Rooms (another special recognition winner). Employee awards went to Clive Hobbs for outstanding achievement and to Louise Greenwood for being the Best Western Centurion hotel employee of the year. There were also awards presented on behalf of Jones Convenience Stores. The delivered wholesaler last year celebrated its centenary. Tel: L&F Jones (01761) 410595.

• Cash & Carry Management • January 2013

those carrying the Nearbuy fascia. “We will be providing a chilled and frozen proposition (with the aid of Nisa) for those that want it.” Meanwhile Sugro’s managing director Philip Jenkins has admitted that the second half of 2012 was “very tough” resulting in just 2% growth for the 12 months after a double-digit advance in the opening period. Retail initiatives arranged with Coca-Cola Enterprises and Kraft/Cadbury were successful in conveying the Olympics message, said Jenkins, “but once the Games started, everything went flat. “August was poor and September better. Only in October did volume grow substantially. Trade shows helped, but the Olympics itself did nothing.” As an example of this, Jenkins said that trade at BMV Distributors, of north London, over the Olympics period was down by 50%. Tel: Sugro UK (01270) 628728.

mia! A new range of SPAR brand Italian food is claimed to have reinvigorated sales within Blakemore’s delivered business. First week takings helped swell sales of ready meals by 57% year on year, making it one of the top five performing categories in the wholesaler’s portfolio. The new Italian food accounted for 44% of the ready meals income for that period. The full SPAR Italian range includes four styles of fresh pasta, two pasta sauces, four pizzas, five ready meals (lasagne, meatball pasta bake, macaroni cheese, chicken & bacon pasta bake and spaghetti bolognese) and two types of garlic bread. Several symbol stores serviced by Blakemore described customer feedback on the quality and price of the Italian food range as “excellent”. Tel: AF Blakemore & Son (01902) 366066.

Sushi from P&H Palmer & Harvey has added sushi to its chilled range. It has also revised some of its M Brand chilled lines and implemented long-term promotional pricing on some key convenience foods. Referring to the sushi packs, head of symbol, Rory Brick told Cash & Carry Management: “Previously, short shelf life was an obstacle to independent retailers stocking sushi, but due to technological developments we can now offer it with a shelf life of five days.”

The two styles are fish and vegetarian, both in a £1 price-marked pack. They come in outers of six at £4.80, giving retailers a profit on return of 20%. P&H’s M Brand cheese is now made by South Caernarfon Creameries, a farmer-owned dairy co-operative. The varieties include Red Leicester, Double Gloucester and White Cheshire, plus Mild and Mature Cheddar. Tel: Palmer & Harvey (01273) 222100.


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Right place at the right time This month’s article features Kate Salmon, executive director of the Scottish Wholesale Association.

Kate Salmon (second on right) with younger daughter Hannah (second on left) and friends after completing the Edinburgh Moonwalk and raising over £6,000 for charity.

What has been the major milestone or turning point of your career? I suppose it has to be said that I fell into my job – being in the right place at the right time. Who has been the biggest inspiration to you? John Shipton, without a doubt. He was president of the Scottish Wholesale Association and managing director of McNabs (which was eventually taken over by Booker) and he was a formidable character. He suggested that I might like to take over the job as secretary to the Association, when the secretary at the time – Douglas Malloch – retired through ill health. I was a single parent and thought I would give it a go. I was also helped by Ross Kerr (formerly of Walkers), John Kerr (who at that time worked for Baxters) and my dearest friend Les Bruce (ex Weetabix) who became my ‘girl Friday’! How do you maintain a work/life balance and how have developments in technology affected this? I love my job and so don’t see that it needs to be balanced with time spent away from work. That may sound trite but it’s true. I am one of the people who remembers a time before email. I admit that technology is scary but now I cannot imagine life without it. For me, Sonos is the greatest invention – being able to listen to music of any kind at the touch of a button. What most frustrates you in business (and in life generally)? Why oh why will people not return phone calls or emails? It is not just rude, it is bad business and it drives me crackers, as do companies that do not pay up. We spend an awful lot of time chasing money that is due to us. These companies expect to be paid – so do we!


• Cash & Carry Management • January 2013

If you were able to retire tomorrow, would you, and if so, how would you spend your time? I hate the word retire – it sounds like a death sentence! I love holidays but don’t want to get to the stage when I don’t appreciate a weekend. I would always have to do something, maybe charity work. Young Carers is most worthwhile. What advice would you give someone starting his/her first job? Work hard and play hard – you must have passion but also you can do anything you want if you put your mind to it. What type of business would you have gone into if it wasn’t C&C/wholesale? I always wanted to be a chiropodist! If you had a million pounds to invest in business, how would you spend the money? Property – doing up flats and renting them out.

Wholesaling or carpets! Kate Salmon began her career at the Scottish Wholesale Association in 1983 when she was looking to get back into the job market. A single mum with two young children, Salmon had two interviews: one to work at the SWA and the other in a carpet shop! She gladly took the opportunity to be a part-time secretary to a male secretary at the Association. Her first official task was to go to Gleneagles Hotel – she loved the experience. Salmon was appointed to her current post as executive director in 1996.


customer cares

sponsored by

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

wholesalers, or not in small enough quantities. Also the quality of some fresh produce, particularly seasonal fruit, is much better in supermarkets.

Tina Porter The General, Ditchling (caterer)

Aiden Ling Convenience Corner (off-licence)

Wholesalers used: I try to keep everything local so we use Booker and its fine food business Ritter, The Fresh Fish Shop, Springs Smoked Salmon and Blakes. We also use the Brighton Sausage Company for meat and Delice de France for pastries. We go direct to farms for some items like eggs and specific cheeses. Of these suppliers, Booker/Ritter and the Brighton Sausage Company probably account for 60% of our business.

Wholesalers used: We use the two local cash & carries, Booker and Bestway, and our spend at each depends on their deals. We search the websites for offers. Even though we mainly get deliveries, the location of the depot is important because if there is a problem with a delivery we can pop down and deal with it.

Plus points: The Brighton Sausage Company works with local farms so I am getting local meat. We use Ritter a lot for specialist dried pasta, chilled meat, cheeses and ingredients. Since Ritter joined Booker it has given Ritter greater flexibility so we can source what we want, when we want it, without a minimum order. We’ve been dealing with Ritter for 10 years and have remained loyal. Booker has held its prices really well, given the market and how competitive supermarkets are on basics. Suggestions for improvement: The Booker staff are all very helpful and customer focused, but they need more knowledge and enthusiasm about the products. I would like them to be upselling, suggesting things we might not have noticed. Perhaps they could have account managers who understand our business and recognise our needs, which they can feed back into the business. About 20% of our custom goes to supermarkets because there are some specialist products you just can’t get in

Plus points: I’ve been using Booker for years and have built up a rapport with the company. The staff are very helpful. Most of our ordering is done online. Booker puts a percentage on the delivery note letting you know how much of your order is delivered and it’s always in the high nineties. Suggestions for improvement: Bestway needs to sort out its invoices. With Booker, the tobacco and alcohol are in separate sections on the invoice, but with Bestway it’s all mixed in. When the delivery turns up you are not going to check the whole thing before the driver goes but you are going to check off your alcohol and tobacco, and it can be a bit annoying if you have to search through an invoice.

Nainesh Patel Gayatri News (convenience store) Wholesalers used: Bestway is my main cash & carry and I also use Booker. Bestway probably accounts for 80-90% of my business. I get deliveries and I also go to the depot about twice a week. Bestway only opened in Brighton about a year ago but before that I had been going to its depot in Croydon and getting deliveries, so I have known the company for years. Plus points: Bestway has good prices and good availability – you can always get what you want. There are lots of deals every two weeks and most of them work well for me. The staff are all helpful. If you can’t find something they will locate it for you and if it is not on the floor they will get it out of the storeroom. There is always quick service. The ordering system is very convenient. We just scan the items and the order is sent through the computer.

The General has been a customer of Ritter for 10 years.


• Cash & Carry Management • January 2013

Suggestions for improvement: Bestway could do dairy products better. It needs a bigger range, more choice and a proper display. We have spoken to the manager and it is improving day by day.



A three month project which boosted sales of the UK’s bestselling hot snacking products at two cash and carry depots (by more than 15%*) has been hailed a ‘resounding success’. The project was managed by hot snacking experts Kepak Convenience Foods and involved the Batleys depot at Cambuslang Investment Park, Glasgow, and Gateshead’s Bestway Team Valley depot. Key elements of the project included stocking the most suitable products, making them more visible to retailers, using POS effectively and working with retailers to generate increased shopper demand, thus increasing the retailers’ and depots’ sales. Bestway Team Valley depot manager Naveed Anwar says: “The project was a great success. Kepak’s eye-catching point of sale worked really well and attracted people to the products. Getting the

right product mix was also important. The sales increase shows the benefit of getting these things right in depot.” Kepak also worked with retailers in both areas, including Aryan News, a ‘Best-in’ store at Newcastle upon Tyne, where a microwave, shelf trays and new POS were introduced. Shop owner Rimpy Rehan, who runs the grocery store with his wife Deepka, said the changes had made an impact on his customers. “There’s a lot of passing trade here and food to go does really well. The Kepak point of sale is drawing people’s attention to the hot snacking products. Whilst it’s early days, I’m confident that having the microwave, and giving people the opportunity to cook products in-store, is also going to boost sales.”



Angela Daulby, Kepak Convenience Foods’ Channel Director, said the successful project had shown how cash and carry depots can boost sales by ‘improved merchandising and range stocking and by working more closely with suppliers & retailers’.

seasonal gifting

Giving is not just for Christmas Christmas might be just a dim and distant memory for the public, but the element of gifting is one that stays all the year round. At Mars Chocolate, for instance, apart from the Celebrations brand, which comes in tubs, large cartons and jars, the company markets a range of ‘presents’ under some of its leading countline brands. Trade communications manager Bep Dhaliwal focuses on Maltesers as a major player. The small box (120g in cases of 16) and large (360g, 15) represent “the ideal top-up gift”.

‘Maltesers is instantly recognisable with shoppers, especially with a £7m media spend last year’ Bep Dhaliwal, Mars Chocolate trade communications manager They are described as star performers in the boxed category as the No.1 and No.3 ‘classic’ single flavour formats. “The brand (which has just celebrated its 75th anniversary) is instantly recognisable with shoppers, especially with a £7m media spend last year.” With Easter on the horizon, Mars is making a big play of its MaltEaster bunny (29g) and mini bunnies, which come in

a 58g pouch with five units. Also under the Maltesers label will be a 312g large egg, a 158g medium version, and a 314g MaltEaster luxury egg.

All-year-round range Susan Nash, trade communications manager at Mondelez International, says: “For spring occasions in 2013 we are launching a new gifting range that will be on sale all year round. “Available in different shapes to appeal to a variety of occasions, it will include heart-shaped boxes filled with Cadbury milk chocolate heart-shaped pralines featuring a ‘with love’ message on the outer packaging. “In addition, a flower-shaped box filled with Cadbury milk chocolate flower-shaped pralines will be available, also with ‘thank you’ packaging.” Both boxes, which are presented in 48g or 180g formats, are strongly recommended for Valentine’s Day and Mother’s Day. The new product launch follows the introduction of the ‘Say It With Cadbury’ range, which, it is claimed, became the top selling novelty between 5 and 19 February 2011, delivering sales of nearly £1m (Nielsen Scantrack). “The range was most popular with shoppers under the age of 35,” says Nash, “therefore showing the ability of the brand to broaden the appeal of in-laid boxed chocolates beyond its traditional heartland of older shoppers.” The new gifting confectionery is expected to tap into the lucrative spring gifting occasions. The ‘I Love You’ gifting segment is worth £744m, the ‘Thank You’ gifting market in the UK is valued at £313m and Mother’s Day is worth £386m (Kantar Worldpanel November 2010). Nash says that the new products complement the overall Mondelez International gifting range, which includes Cadbury Milk Tray and Terry’s All Gold.

Value of spirits According to First Drinks, around 36% of all spirit bottles bought by consumers are given as a gift, the top three categories being malt whisky, Cognac and vodka. It adds that more than half of all malt whisky skus are bought for this purpose. Says a company spokesman: “Gifting helps drive value; shoppers spend more on gifts than on a standard bottle, with gift purchases valued at between £15 and £25. He adds that alcohol gifting is worth £572m (in-house market report 2012), with spirits accounting for over one in three of all alcoholic gift purchases. “Whisky accounts for nearly half of all alcoholic gifts – males being the main recipients.”

For further information: First Drinks (01256) 748100 Mars Chocolate (01844) 262517 Mondelez International (08702) 400861


• Cash & Carry Management • January 2013


products & promotions Jelly restyle

Good advice! UNITED BISCUITS – Convenience stores which adhered to the company’s category management advice last year reported a 27% sales increase. Commenting on the current value of the manufacturer’s brands, marketing director Jon Eggleton picked out Digestive at £81m, Medley (£13m) and Jacob’s Oddities (£8m within nine months of launch). Within the go-ahead! ‘healthier’ biscuits range, Chocolate Thins, launched last year, are already valued at £3m. Eggleton said: “We are embarking on our heaviest NPD programme and making our biggest-ever investment (£14m).” He added that in the £1.06bn ambient cake category, UB enjoys 27% of the ‘eat now’ segment. Tel: UBUK 0208-234 5000.

HAIN DANIELS – The company’s recently-formed grocery division has unveiled a new look and nationwide advertising campaign for Hartley’s lowcalorie jelly. The restyle covers the ready-to-eat jelly pots, highlighting the fact that each product contains just 10 calories. This coincides with a £1m press drive in the national press and women’s media during the ‘key dieting season’ of January and February. Commercial director Nigel Parrott said the activity is targeted at attracting new consumers to ready-to-eat jelly and reintroducing lapsed users to the ‘joy of jelly’. Packed in outers of 12, there are six varieties in the range (rsp 75p each). Hartley’s claims brand leadership in the UK’s £50m jelly market, with annual sales of its jelly pots topping £23m (IRI to 29/9/12). Hain Daniels acquired Hartley’s, as well as Gale’s, Robertson’s, Frank Cooper’s and Sun-Pat, from Premier Foods last year. Tel: Hain Daniels (0800) 032 7111.

MONDELEZ INTERNATIONAL – Belvita Breakfast has launched a ‘big value’ 600g size. Available to the trade from this month, packs contain 12 portions of either milk & cereal or honey & nut crunchy breakfast biscuits. The rsp is £3.99. The product, introduced in the UK in 2010, is claimed to be the No.1 breakfast biscuit brand, with a value of £48 million. Senior brand manager Rahul Gursahani said: “The new packs are ideal for keeping on hand for those rushed mornings when you need a quick, easy and filling option as part of your balanced breakfast.” Tel: Mondelez International (08702) 400861.


Brand winner

Agency deal

BACARDI BROWN-FORMAN BRANDS – Southern Comfort was named winner of the best brand activation category in the UK Festival Awards, by ‘bringing the spirit of New Orleans to the masses’. In doing so it beat the likes of Lucozade, Relentless energy drink and Jagermeister liqueur. The Southern Comfort portfolio incorporates original, lime, bold black cherry, and a selection of pre-mix variants. Tel: Bacardi Brown-Forman Brands (01962) 762100.

MALCOLM COWEN (DRINKS) – The company has become the exclusive distributor of the product range of Wine & Spirit International (UK). Following an association between the two that goes back to the 1960s, Malcolm Cowen (Drinks) is adding to its portfolio and range of brands, including Choya sake, Umeshu liqueur, Bambarria tequila, Trenet absinthe and Mocambo Mexican rum. Tel: Malcolm Cowen (Drinks) 020-8965 1937. Tel: Wine & Spirit International (UK) 020-8975 1023.


‘Big value’

• Cash & Carry Management • January 2013

PROCTER & GAMBLE – New ‘Ambi Pur with a touch of Febreze’ is said to be a combination of scent expertise and odour elimination. The plug-in air care product coincides with the launch of a new scent range and updated formula across the Ambi Pur portfolio. The launch is being backed by a communications campaign called ‘Set Scents Free’, which aims to highlight that scents cannot be experienced at their best if they are always disturbed by everyday malodours. The campaign includes tv and press ads, in-store activity, PR and competitions. Tel: Procter & Gamble (0800) 597 3388.


products & promotions Coffee sponsor

Scottish ‘first’

KENCO PROFESSIONAL – The company is sponsoring Coffee@Work. Employees are encouraged to make a one-off donation for their hot beverages made at work during the week of 22-28 April. The initiative raises money for Project Waterfall, which supports some of the poorest and most marginalised communities in Tanzania, giving access to safe water, sanitation and hygiene. Kenco Professional sources 100% of its coffee beans from Rainforest Alliance Certified farms. Marketing manager Jodie Lane said: “Coffee@Work is a great fit with our approach to sustainability. We’re proud to be part of a campaign that aims to transform lives for the people who need it the most.” Tel: Kenco Professional (0870) 600 6556.

NAE DANGER – What is said to be ‘the first and only energy drink to be created, branded and manufactured in Scotland’ has hit the shelves. The brainchild of entrepreneur Ross Gourlay, it offers a Scottish alternative to energy drinks such as Red Bull, Monster, Relentless and Rockstar, and has been developed to give drinkers a boost which they ‘cannae whack’. The 500ml soft drink (rsp £1), with a secret Scottish recipe, comes in a variety of flavours, including blue raspberry and red blueberry. A ‘nae sugar’ option will be introduced shortly. Nae Danger claims to have sold over half a million cans across Scotland and beyond the border, largely through independent retailers. Gourlay has had 20 years’ experience in fmcg as managing director of Glencrest. Tel: Glencrest 0141-579 0007.

New in RYO FOSTERS DISTRIBUTORS – The company describes its latest launch as the ‘next big thing in smoking accessories’. Lone Star Wraps are flavoured tobacco leaf wraps used instead of rolling papers. The six flavours (blueberry, grape, strawberry, kiwi, mango and watermelon) are additional to ‘straight-up’ unflavoured wraps. The 25 packs of two wraps come in a high-visibility display outer, which in turn is packed in cases of 24. An rsp of £1 per two-pack gives retailers margins of up to 50%, as well as providing C&C/ wholesalers with enhanced margins. Tel: Fosters Distributors 0161-246 6066.

TV return BEL UK – Leerdammer is back on the small screen this month with an updated commercial featuring the Lightlife variant. The ad features the message: ‘Try Leerdammer Lightlife, with 38% less fat’ (vs original). The decision to focus on the lower fat sku results from its strong performance in 2012, with unit sales increasing by 18%. Leerdammer claims to have the highest value and volume share of the branded natural cheese slices category. It is said to be the No.1 sliced cheese brand, with a share of 10.5% and £12.6m sales. Data Nielsen MAT week ended 10/11/12.

Tel: Bel UK (0333) 900 2024.

‘Have a fling’ MONDELEZ INTERNATIONAL – Cadbury Creme Egg made its media return this month in the form of a new, integrated marketing campaign encouraging people to be impulsive and ‘have a fling’ with the product during this year’s Creme Egg season, which runs until 31 March. The multi-million-pound drive highlights how the brand’s limited season ignites intense passion in people. It invites fans to get their fix of the Easter treat while they still can. Five tongue-in-cheek 10-second commercials show a series of people passionate about Creme Egg. Additionally, a poster campaign will also feature the message, with cheeky copy directed at chocolate fans urging them to get their eggs while they’re still available. Digital and social media activity will also be part of the package. Tel: Mondelez International (08702) 400861.


Multi activity FERRERO – Kinder Bueno’s latest ad campaign includes an ‘Enjoy the Great Taste for Free’ promotion and a fashionfocused on-pack deal aimed at its core female audience. The brand is also making a reappearance on television screens. The on-pack promotion, from midJanuary, offers consumers the chance to win one of three trips to a fashion capital (New York, Paris or Milan), with £500 spending money. Additional prizes in the Kinder Bueno activity include London shopping weekends and £50 high street shopping vouchers. The ‘Indulgence, Lightly Done’ tv campaign starts on 28 January and runs until 24 March. There is also a bespoke 10-second tv tag supporting the promotion, running from 5-18 March. Tel: Ferrero UK (01923) 690 300.

Cash & Carry Management

• January 2013 • 19

products & promotions Reduced sugar

Portion control MARS PETCARE – Sheba has launched a ‘Fresh Choice’ range, designed for smaller meals for cats spread throughout the day. Each 50g pouch equates to one meal. Brand manager Julia Nicoara said: “Cats naturally prefer small, frequent and fresh meals throughout the day; the new mini pouches have been designed with this in mind.” Each pack (rsp £1.99) contains six pouches. The Sheba brand, worth £42m (IRI year to 11/8/12), is being supported by £4.6m worth of activity, including in-store, advertising and PR. Tel: Mars Petcare (0800) 738800.

DR OETKER – The baking specialist’s new range of Wellcare reduced sugar foods includes fruit cake, ginger cake, wholemeal sponge and chocolate cake mixes, strawberry and chocolate mousse mixes, and strawberry and orange jelly mixes. Cheryll Snowdon, executive head of foodservice, said: “The recipes have been developed to achieve a reduced sugar claim while delivering high quality and great tasting products. “With this range, cost sector caterers can achieve the crucial balance between taste and wellbeing.” All recipes are said to have a minimum of 30% less sugar than similar products on the market. Tel: Dr Oetker Foodservice (0844) 375 4180.

Redesign In the pink GLAXOSMITHKLINE – The maker of Lucozade says it has been experiencing ‘astounding’ energy drink sales since the launch of Lucozade Energy Pink Lemonade. The new variant is said to have generated almost twice the repeat sales of Lucozade Energy Cola, introduced in 2011. Sales of the new lemonade (in 380ml, 500ml and one-litre sizes) hit £1.6m in the first six weeks, against £1.4m for the cola (Nielsen Scantrack). Tel: GlaxoSmithKline 020-8047 5000.


GNAW CHOCOLATE – The supplier has introduced new packaging for its 150g Chocolate Buttons so it will appeal to a broad range of retailers. The wording highlights the use of natural ingredients in the production and the brand’s support for red squirrel conservation. The bags have an rsp of £2.99. Also made by the Norfolk concern are Speckled Pud Bar, Snowberry Drift Bar, Caramel Hot Choc Shot, Rocky Road, Fudge Crunch, Banoffee Pie and Crystallised Ginger. Tel: GNAW Chocolate (01603) 501518.

• Cash & Carry Management • January 2013

Trade pledge BURTON’S BISCUIT COMPANY – The manufacturer has announced a series of moves to enable independent traders to ‘unlock the opportunity’ to increase their biscuit sales. It has also relaunched its convenience and impulse sales division as VIP to reflect the importance it places on Value, Impulse and Portfolio. Burton’s is also committed to: A new approach to the market Increased resources to support and deliver the new approach Improved communication with customers. The company will also be working more closely with retailers, encouraging them to stock the ‘optimum range’ of its core products – Jammie Dodgers, Maryland, Wagon Wheels, Cadbury and Lyons – supported by a pack, pricing and promotional strategy which reflects their own shopper profile. “This is a fundamental overhaul of how we approach the convenience and impulse sector and we will be working more closely than ever before with our customers, across many different areas,” said Jo Harwood, commercial controller – VIP. Tel: Burton’s Biscuit Company (01727) 899700.

• • •

Race renewal RED BULL – The energy drink brand’s ‘Soapbox Race’ is making a return to the UK after a 10-year break. It is being supported by a multimillion pound campaign, including a limited-edition on-pack design on multipacks and point-of-sale material. The event, which comes to London in July, involves consumers building their own amateur soapbox cars to race down a giant hill in front of tens of thousands of spectators. Details of the activity, which is being supported by a £2.5m marketing campaign, feature prominently on Red Bull four-packs. Tel: Red Bull 020-7434 5670.



issue 68

. january 2013


the newsletter of the scottish wholesale association

SWA steps up advice service THE SWA has launched a new monthly review to keep wholesalers up to date with developments in legislation relevant to the wholesale industry. Compiled by the SWA’s independent adviser, Scott Brady of ecos Ltd, the review outlines the key issues on which the SWA is lobbying the Government and Scottish Parliament on behalf of its members. It also provides information on government consultations. In the December issue, an update was

The Scottish Wholesale Association continues to provide its members with valuable assistance on the myriad of legal issues that affect the wholesale industry. Here are two examples:

ALCOHOL TASKFORCE On 8 January, the SWA met with HM Revenue & Customs to discuss the new intelligence-led taskforce targeting the alcohol industry in Scotland. The taskforce has been established as a result of HMRC identifying a specific risk of under-declaration of tax within the drinks sector.

DISPLAY BAN GUIDANCE The SWA, in partnership with the Scottish Grocers’ Federation and tobacco manufacturers, is producing a free guide on the tobacco display ban. Available to every cash & carry, delivered wholesaler, convenience store and CTN in Scotland, the guide will explain in simple terms the changes required under the ban, the timescales for implementation, and sources of further information. An app is also being produced for SWA members. Both will be ready by the end of March.

given on proposals to impose minimum pricing of alcohol in Scotland, the SWA pointing out that the European Commission had questioned the legality of the Act. Furthermore, the Scotch Whisky Association and the European Spirits Organisation have been granted judicial review of the legislation. Separately, a consultation on alcohol minimum pricing in England and Wales was launched at the end of November and is running until 6 February. Another issue highlighted in the SWA’s review was the current consultation on business rates. The Scottish Government is seeking views on how the rating and valuation appeals systems can support businesses and sustainable economic growth and how to improve the transparency and streamline the operation of the rating system. The review also focuses on an important piece of draft legislation: the HGV Road User Levy Act 2012, which proposes to implement a levy in respect of the use or keeping of heavy goods vehicles on public roads in the UK (including Scotland). Such legislation would clearly affect supply chains and have appreciable financial costs. Commenting on the launch of the SWA’s monthly review, executive director Kate Salmon said: “It is important that wholesalers are aware of all new legislation and also changes to current legislation.

While information about changes to our licensing and tobacco laws is highly publicised, there is other equally important information that is not so readily available or easy to access and we have a duty to relay this to our members. “That is why our new monthly review is a vital tool for wholesalers in providing them with up-to-date information at a glance – and, crucially, helping them


Our monthly review is a vital tool in providing up-to-date information Kate Salmon

ensure that they operate their businesses effectively and within the law.” The launch of the monthly review comes as the debate on Scottish independence picks up pace. “Constitutional reform in Scotland will happen if the electorate wants it to happen and it is inevitable that there will be challenges for businesses if it does,” said Kate. “What is important for our members is that they hear both sides of the argument, and the SWA will continue to be the voice of the wholesale industry as we move towards the referendum on Scotland’s future in autumn 2014.”

Legal challenges have stalled the implementation of minimum pricing on alcohol.

ILLICIT TRADE Would you like to increase your sales by over £30,000 per year? The illicit tobacco trade is not a victimless crime; it impacts on you in many different ways: Impact on the COMMUNITY

Impact on QUALITY

Brings criminal behaviour into your community

Counterfeit products contain insects, beetle eggs & rat droppings

Impact on INCOME

Impact on YOUTH

Undermines and threatens legitimate retailers

Illicit traders ignore ‘No ID No Sale’ and target children

So how is YOUR BUSINESS currently being affected? Cigarette smuggling costs the average symbol store over £30,000 a year in lost sales*. This equates to over 4,000** opportunities for customers to walk into your shop to buy cigarettes annually. That’s over 80 cigarette customers per week!

How much does that represent in lost basket spend?


REPORT IT! Call the Customs Hotline or speak to your tobacco sales representative

Source: *Based on IGD research 2012 and MS Intelligence Empty Pack survey 2012. **Based on L&B KS20 @ £7.19

Save time and money! SWA members have saved substantial time and money by tapping into the professional human resources support service offered by the SWA through its partnership with 121 HR Solutions. Consultants from 121 have worked with the Association for over a decade. Why do members rely on this service? The 121 HR Solutions helpline allows members without an internal HR department to focus on business targets, safe in the knowledge that they can access expert help and advice whenever an issue crops up. Employment law is often changing. Members need not worry if their action is correct or compliant as 121 will guide them through tricky, potentially litigious action without any fear of falling foul of employment law. 121 regularly posts legal updates on the SWA website to keep members up to date and compliant. When members need support, professional advice is just a phone call away Monday to Friday. The LIVECHAT facility via the 121 website is manned during business hours and gives members a transcript of every call for reference.

Dismissals Another SWA member received advice from 121 about the issue of a Compromise Agreement to a departing employee. These are commonly used to exit troublesome staff or to facilitate departure to suit both the employer and the employee. 121 gave advice in the proofing of an agreement, amending wording to satisfy HMRC requirements. It also helped write a reference for the departing employee. Once again, this process saved the employer potentially hundreds of pounds of legal fees. Another member sought support on the disciplinary of an employee who had attended work under the influence of

• •

Professional and cost-effective Human Resource support for organisations of all sizes. Proud to be the SWA’s provider of training services and an exclusive online chat and email facility, delivered by experienced and CIPD qualified HR consultants.

Here are some examples of 121’s involvement with a variety of members in providing specialised HR support. Absence 121 provided step-by-step support to manage a long term absent employee claiming work-related stress. 121’s involvement included help with various letters – inviting the employee to a welfare meeting to discuss the nature of the absence, briefing notes to manage the meeting, legally robust documentation to request a medical and a letter to the employee explaining the legal process. This support allowed the SWA member to manage the process confidently and swiftly and it ultimately resulted in the employee resigning. 121 provided additional advice around the conduct of an exit interview in order to ensure that no risk existed for the employer in the employee later claiming constructive dismissal or discrimination. This support could have potentially cost the wholesaler substantial legal fees but was provided as part of the SWA membership cost.

For further information please email enquiries@121hrsolutions.co.uk or visit our website www.121hrsolutions.co.uk

alcohol. This wholesaler did not have an alcohol at work policy in its handbook and 121 provided the company with a policy and accompanying guidance in order that it could be issued immediately. Support was also provided to manage the subsequent disciplinary, resulting in a summary dismissal. Further assistance was given to the organisation’s managing director who had the unenviable task of conducting the appeal process. Pregnancy A more straightforward query was to obtain guidance on the legal position around absence in pregnancy. 121 gave support in the way of a letter to the employee setting out rules regarding maternity-related absence. 121 provided a timeline of guidance to ensure that risks of sex discrimination were mitigated whilst also supporting the employee correctly. The outcome was reducing the cost of having a pregnant employee claiming sick pay rather than moving straight on to Statutory Maternity Pay. This is only a snapshot of the support given each month to SWA members. Have you contacted 121 yet? If not, use the LIVECHAT facility at www.121hr solutions.co.uk, the 121 iPhone app ‘121hr@yourfingertips’, email enquiries @121hrsolutions.co.uk or call Cate or Sandie on (01382) 370878.

Mentors are ready... THE SWA has completed a training workshop for the mentors signed up to its new Mentoring Programme. Hosted by 121 HR Solutions, which is responsible for supervising the Mentoring Programme, the one-day workshop was attended by: Peter Baird of Kraft Foods Christian Barden of Cott Beverages Graham Benson, former wholesaler Chris Dale of Chris Dale Management Scott MacDonald of AB InBev Spencer Marshall of Britvic Soft Drinks David Sands, former retailer. Kate Salmon, executive director of the SWA, said: “We are delighted to have attracted such a high calibre of mentor. I am particularly pleased that the suppliers are supporting our programme – all of the candidates from suppliers

• • • • • • •

have been encouraged and backed by their line managers, and I would like to thank them for giving something extra to the wholesale industry. “Similarly, our other mentors boast years of experience, which they can draw on to enhance the personal development of the mentees.” On 24 January, the mentees will attend a workshop where they will be matched with mentors. Employees of Booker, Forteith Foodservice, JW Filshill, United Wholesale Grocers and United Wholesale Scotland have successfully applied to become mentees. Each is endorsed by his/her manager. Mentoring will cover a 12-month period after which the mentees will have the opportunity to work towards a professional qualification through the SWA.

Colin Wragg (pictured), Imperial Tobacco’s head of corporate & legal affairs, gives an update on the proposed standardised (plain) packaging for tobacco products and the effect it could have on illicit trade.

Fight the illicit trade in tobacco Plain packaging debate: you can still make a difference… The recently ended public consultation on plain packaging for tobacco products generated an incredible response – unprecedented numbers of retailers and wholesalers signed petitions opposing its introduction in the UK. It is vital for Scottish wholesalers to be aware that just because the consultation has closed, this does not mean views cannot be expressed to local MPs who are waiting for the publication of the full

editor: Kirsti Sharratt publishing director: Martin Lovell Published by Winlove Publications on behalf of: The Scottish Wholesale Association 30 McDonald Place Edinburgh EH7 4NH tel: 0131-556 8753 e-mail: kate.swa@btconnect.com web: www.scottishwholesale.co.uk For full details on membership of The Scottish Wholesale Association, contact executive director Kate Salmon

report in spring 2013 before making up their own minds. Their contact details can be found at: www.writetothem.com. The illicit tobacco trade is not a victimless crime: it impacts on you in many different ways… The plain packaging consultation has also brought to the fore the current issues and challenges surrounding illicit trade. Up to 16% of cigarettes and around 44% of RYO tobacco consumed in the UK is either counterfeit or illegally smuggled (source: TMA 2012), costing the Treasury up to £3 billion a year in lost revenue. Scottish retailers and the wholesale channel are also significantly affected, losing valuable tobacco customers who have been tempted to purchase cheaper, unregulated brands offered to them by criminals. “We all have a role to play in fighting the illicit trade: we can contact enforcement agencies about suspected illegal activities and

inform our customers about the risks associated in fraternising with these criminals. We can also make our views heard when our governments threaten to introduce legislation, such as through plain packaging, which is likely to fuel the growth of illicit trade. At Imperial Tobacco, we are fully committed to supporting our trade customers. Our focus is on providing guidance and support through our dedicated wholesale account managers. Our message is: you are not alone! We are here to help. For all the latest news on tobacco legislation, impartial advice on stock management and merchandising tips, log on to Imperial Tobacco’s dedicated trade website: www.imperial-trade.com.

Simon Weston THE SWA is delighted to announce that Falklands veteran Simon Weston OBE will be the guest speaker at its annual conference. In 1982, when the Sir Galahad was destroyed in Bluff Cove just off the Falkland Islands, Welsh guardsman Simon Weston suffered 46% burns. His subsequent struggle to overcome his injuries and redefine his role in life hit the headlines around the world. Simon’s message of triumph over adversity will be shared with delegates at the conference, which takes place on 14-16 June at Crieff Hydro. For details, contact SWA executive director Kate Salmon on 0131-556 8753.

ANNUAL CONFERENCE 14–16 June 2013 Crieff Hydro, Crieff, Perthshire

BOOK NOW! 0131-556 8753 www.scottishwholesale.co.uk

employment law

Your training strategy for 2013 HR expert Cate Ritchie (below) explains how to plan training that aligns to your business needs. Another new year, another set of training goals. How did you fare last year? Did you meet all of the realistic training goals for your organisation? If the answer is no, maximising your training opportunities can help your business to meet its goals and objectives for 2013. So, where do you want to be this time next year? What do you want to look back on in terms of accomplishments and achievements? Realistically, most businesses will not assign enough time or effort into training provision as day-to-day administrative priorities, recruitment, promotional activities, and daily crises all affect the time available for training. However, waving the white flag isn’t an option, either. Basics first... Where do you start? Statutory training – do you have enough First Aiders trained? Are your First Aiders due refresher training? What other certified training are you required to provide, for example, fork lift truck driving, use of specialised equipment, health and safety? Planning in your statutory training mitigates the risks to your business in the event of accidents or claims. What next? Do you want new employees to feel that they have joined a business which will meet their ambitions and career aspirations or one where they are just another pair of hands? Are you planning to recruit this year, and if so do you have an induction programme that supports and enables new employees to become confident and productive quickly? Do you have a process of objective setting and reviews during the probationary period so you can support or deal with any poor performance issues early? Having these processes in place and managed effectively ensures that new employees know what is expected from them and what support they will get in return. It also lets them know the implications of not meeting the required standards and that there is a consistent focus on performance and development linked to business goals. What impact are your employees having on your reputation? Consider the type of industry you are in. Is it a service industry: do your employees interact with customers, clients or suppliers? How well does their interaction reflect the ethos, professionalism and goals of your business? They are consciously or unconsciously creating your business reputation for you – is there a need for internal or external service training, selling skills or building and sustaining relationships?

business successful and secure for years to come. Is this your reality or just a dream? Would your managers benefit from training in managing performance, giving feedback, managing conflict or assertiveness? Would your team benefit from some team awareness or team dynamics sessions? Are your leaders leading? How often are you pulled away from your role to manage problems or employee issues? Are your managers able to deal with issues confidently and effectively or do they avoid them or make things worse? Do your managers inspire employees? Do they know that they are role modelling their behaviours for others to follow? Are these the right behaviours for your business? Create a training strategy Taking these key areas into consideration and measuring them against your business strategy will help you to create a training strategy that will ensure you not only meet your legal training obligations but also build your reputation and create an environment where people will choose to work, remain with you and grow your business with you. If you would like advice or support on how to create a training strategy that aligns to your business needs and goals, or if you wish to talk to Cate about any other HR issue, please contact her at cate@121hrsolutions.co.uk or phone (0792) 121 3890.

There’s no ‘I’ in ‘team’ Perhaps your business is reliant on your employees working as a team, pulling together, supporting one another and all driving towards achieving a common goal – to make the


Cash & Carry Management

• January 2013 • 25

information technology

Picking up more orders A look at what the major IT players in the C&C/wholesale industry have been doing. Impressed by the extensive functionality of the Sanderson wholesale solution, north-west London drinks wholesaler HT & Co (Drinks) has selected Swords as the best solution to support its business expansion. The company is deploying Voice Order Picking, Business Intelligence, Mobile CRM and Web Ordering to generate company-wide efficiency, increase sales and deliver an even better service to its customers. The latest Swords Voice Order Picking solution will be used in the warehouse, allowing the wholesaler to benefit from faster order picking, increased staff productivity and significantly fewer picking errors – protecting cash flow by reducing costs. Swords Business Intelligence will allow HT & Co to continually monitor performance using key performance indicators, therefore providing valuable information for decision making. In addition, the new Mobile CRM solution is said to give field sales 24-hour access to the Swords system via mobile devices. Users can create quotes, process sales orders and view essential information while with their customers to maximise sales opportunities and respond faster to customer enquiries. The introduction of the Sanderson Web Ordering solution also provides an additional sales channel, improving customer experience. The wholesaler’s customers will be able to place orders, at any time of the day to suit them, track order progress and view promotional offers. Jon Durrant, head of IT at HT & Co (Drinks), says: “The Swords software solution provides the best platform in terms of functionality and support for our long-term growth. “The solutions will help to increase sales and raise customer service levels across the business. “Swords Business Intelligence is most useful for us. We

can review company performance at any time and utilise management reports for effective decision making.” Another London-based drinks wholesaler, Temple Wines has selected Swords to integrate all operations and manage stock control. The company is expected to benefit from visibility of real-time stock information, helping it to make informed replenishment decisions and utilise warehouse space more efficiently. Also strengthening its operation is food and household goods supplier SOS Wholesale, of Derby. The company has chosen four Sanderson solutions, including the new Mobile CRM solution, to support business growth. Mobile CRM enhances customer relationships and maximises operational efficiency by providing real-time access to key customer, pricing and stock information, while the user is away from the office. Glasgow grocery wholesaler JW Filshill is enjoying the benefits of its investment in Voice Order Picking. A longstanding user of the Swords wholesale system, it has significantly reduced picking times and increased warehouse staff productivity – by as much as 30% for some products. Finance director Fraser Harrison says: “Our investment in voice order picking has generated speed and greater accuracy. We’ll see the return on our investment quickly due to a reduction in costly picking errors and in improvement in service levels for our customers.” Rayburn Trading, the Manchester-based toiletries and confectionery wholesaler, has also implemented Swords Voice Order Picking to generate cost savings and to improve productivity by boosting the speed and accuracy of order pickers. Following a swift implementation, the company is seeing fewer picking errors, reducing the cost of returns and credits. Rayburn’s IT manager Michael Pugh says: “We were very impressed with how other wholesale businesses have benefited from Swords Voice Order technology, and we could immediately see how the solution would benefit us by reducing costs and increasing our productivity.”

Two of many C&C/wholesale customers for Sanderson.


• Cash & Carry Management • January 2013


Integrated software for Delivered  Wholesale and Cash & Carry operations Sales Order Processing Purchase Order Processing Fully Integrated Financials Business Intelligence  Web Trading Stock & Warehouse   Management Till Order Processing Rep & Van Sales System

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information technology A warehouse worker exudes confidence in using the BCP system.

Performance matters It’s now widely recognised that technology is part of the competitive landscape for wholesalers, critical to growth and profitability. “However,” says BCP distribution division director Tim Williams, “what is changlng is the level of performance expected and the level of efficiency demanded. Problems in the economy have added to this. C&C/wholesalers are only interested in IT systems that will make a real impact on customer service and company performance.” BCP claims to have had the longest pedigree among UK IT suppliers to the wholesale sector, giving it an unrivalled knowledge and understanding of the channel and a commitment to research & development which sees 12% of turnover each year being reinvested. “This means,” says Williams, “that clients can be assured that our Accord will always provide functionality second to none, incorporating the latest technology, tuned to their particular needs. Recent developments to Accord, as always, are closely aligned to market trends and business requirements.” Referring to web ordering, with some big wholesalers now offering this as a way of reducing costs and improving customer service, Williams says that BCP has clients who have been using Accord Web Ordering for years. “It’s comprehensive and flexible, with stock information, customer-specific pricing and a lot of self-management for customers. Reflecting the trend towards increased mobility, it can work remotely via an iPad or iPhone, plus there’s a hybrid version so you can also work offline, if forced to by poor network coverage, for example.” BCP is now moving Accord on to tablet and other mobile devices to give managers greater flexibility and immediacy in controlling operations. Managers will no longer be tied to their desktop PC to manage operations. Accessing the system on a tablet device or mobile phone means they can have up-to-the-minute information and maintain control wherever they may be.


• Cash & Carry Management • January 2013

Other new opportunities for improving customer service include the use of tablet computers for queue busting in cash & carries and the implementation of kiosks in warehouses where customers can access a digital product catalogue on a tablet device and order goods not available in stock. This means C&C/wholesalers can reduce stock and associated working capital without negatively impacting customer service because customers can order goods at the touch of a button in a kiosk. “Simply using Accord Business Alerts to notify the manager when particular customers are scanned in at C&C outlets so they can make a point of speaking to them can have an incredible impact on customer goodwill and loyalty,” says Williams. BCP claims to be widely recognised as the leader in introducing not just Voice Picking, but also wall-to-wall Voice functionality to the UK wholesale sector. Now it has taken the best parts of its Voice WMS and built them into an RF Picking solution which can be used without the need for a full warehouse management system. “This is a tremendous development giving smaller wholesalers – and cash & carry operations, in particular – all the benefits of real-time, paper-free operations at an affordable price,” says Williams. Two recent success stories for BCP have been Pedigree Wholesale and Brook Street Foodservice. Pedigree Wholesale has rolled out Accord Voice WMS across its network of depots across the country. With 9,000 skus and 250 orders a day to manage across 170,000 sq ft of warehouse space divided between five locations, the conversion to voice is delivering major efficiency improvements, including productivity increases of 20% and picking accuracy of over 99.9%. For Brook Street Foodservice, Accord has been critical in generating growth. By joining Landmark Wholesale, it broadened its product range and created the need for extra warehousing, along with tighter stock control and identification/ traceability. Then after a major competitor collapsed, the wholesaler picked up new contracts, increasing volume and putting more strain on its systems and processes. While it was keen to win larger contracts, existing IT systems did not meet the exacting requirements of some potential customers. By moving to Accord, says Williams, it can now demonstrate the solidity of IT systems and increased traceability required to manage both these contracts and the increased business volume from the other developments.


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BCP House, 151 Charles Street, Stockport, Cheshire SK1 3JY. T: +44 (0) 161 355 3000 F: + 44 (0) 161 355 3001 E: accord@bcpsoftware.com W: www.bcpsoftware.com

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Business Computer Projects

information technology Plenty to celebrate STL Technology Solutions has celebrated its 10th year of trading with several high-profile installations in rapid succession. For DF Wishart, a Stax company, it completed implementation of its flagship Merchandise Management System (MMS), Sales Order Processing system (SOP) and Rep Order System (ROS) throughout the company’s operations. Wishart is one of Scotland’s leading wholesale distributors. For Dhamecha, STL rolled out MMS, its tilling with central cash solution, plus STL in-store mobile terminals, to the cash & carry operator’s newest branch in Lewisham, south-east London. The C&C concern’s seven-depot estate now runs entirely on the 64-bit powered STL platform. This ‘high-performance’ solution has centralised the management of Dhamecha’s operation, gaining it better stock control and purchasing efficiency, together with greater control of promotional schemes, such as Trade & Save. STL has also significantly improved Dhamecha’s checkout efficiency. And its powerful reporting tools have enabled executives to make ‘drill-down’ queries on real-time data to enhance their strategic decisions. Pradip Dhamecha, the C&C operator’s managing director, says: “This centralisation, combined with drill-down visibility, is key to our success. “By providing this capability, STL is helping us to deliver our customer-centric strategy of competitive pricing, excellent product availability and first-class customer service. And, because STL’s systems are so robust and scalable, they can support us as we pursue our ambitious expansion programme.” For Chetan Wholesale, STL concluded the year by getting the Essex-based company live on STL MMS, and installed five STL tills with central cash capability and integrated chip & PIN system, in time for Christmas trading. (See News p. 5).

‘Our new licensing options enable C&C/wholesalers to get the software they need sooner’ Ivan Durkin, managing director, STL Despite its own continued sales success, however, STL has recognised that enduring recessionary pressures are making it difficult for many C&C/wholesalers to upgrade to the modern business software they need in order to compete effectively in today’s increasingly challenging environment. The IT specialist’s software solutions have been developed with the latest Microsoft tools, making them ‘the most modern, easy-to-use and scalable in the C&C/wholesale sector’. Users report vastly improved operational efficiencies, greater flexibility, better control of stock, promotions and cashflow, together with valuable business insight. To help more C&C/wholesalers gain these advantages, STL has announced new annual licence fee options for its software. These options waive the usual upfront capital cost


• Cash & Carry Management • January 2013

Ivan Durkin: making STL even more appealing.

involved in a major software purchase. Instead, they enable a C&C/wholesaler to spread payments across regular (typically monthly or quarterly) instalments over five years. Managing director Ivan Durkin says: “In what is, by nature, a lean-margin industry that is characterised by cash fast-in and fast-out, we see many successful wholesalers struggling with aging software, without the necessary capital funds to invest in a major upgrade. “We have developed these new licensing options to make our solutions more affordable, enabling C&C/wholesalers to get the software they need sooner.” An innovation from STL is a Professional Services initiative, designed to make its training and consultancy services more affordable and accessible for C&C/wholesalers. The company is initially launching new bite-sized training courses for its client base, but it plans, over time, to extend its offering to the broader wholesale sector. The new unit is headed by the experienced IT and wholesaling expert, Jayne Leonard, who comments: ‘It’s an exciting innovation that will help users to get the most benefits out of their systems. “And, since our solutions are all based on the industryleading Microsoft platform, it will give course attendees something valuable to add to their CV, too.” Course details will be sent to STL customers. Interested readers can contact Jayne.Leonard@stl-solutions.com.

For further information: BCP 0161-355 3000 Sanderson (0247) 655 5466 STL Technology Solutions (0844) 472 4727


What’s holding you back?

Aging IT systems

IT budget too small

Inadequate capital saved

Other budget priorities

WAREHOUSE MANAGER A warehouse manager is needed for an upcoming company in Southall. The position will require:

• Experience of the food/wholesale industry • Fork truck licence for reach and counter balance

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Nothing. He’s got the best IT software without the usual up-front costs. Are the up-front capital charges preventing you from investing in the more efficient, intelligent and sophisticated software your business needs? STL’s new annual licence fee package can help. By waiving the usual capital licence fee for software, and enabling payment in affordable installments to suit you, STL helps you benefit immediately from the very latest IT solutions for wholesalers.

Saturdays when required. Salary: up to 23K depending on experience. In the first instance, please email your CV to mail.winlove@btconnect.com For more information on STL’s licensing options:

0844 472 4727 t sales@stl-solutions.com @STLTechSolution t www.stl-solutions.com

price marking

Independents lead the way Showing the price on the pack has become a important marketing ploy for leading manufacturers in several categories. All the signs are that the trend is on the increase. The economic downturn has driven the popularity of pricemarked packs – a trend that has been recognised by C&C/wholesalers, says Andreas Nicolaou, head of trade at BAT UK. “Taking into account the current state of the economy and with no real signs of improvement, we believe this trend will continue. To support the wholesale channel in this way, we provide many of our best-selling products in price-marked format.” Nicolaou adds that, while PMPs account for 25.3% of tobacco volume through all channels over the past year, compared with 28.8% in the previous corresponding period, in the impulse channel there is a contrasting trend, with 55.6% of volume in PMPs against 50.2% in the previous 12 months (Nielsen October 2012). He comments: “As you would expect, value-formoney, non-premium brands, such as Pall Mall, account for a higher proportion of the PMP volume. “Adult smokers welcome PMPs, which give them the confidence they are getting a fair deal. In the new silver pack. This can, in turn, go a long way towards encouraging shopper loyalty and, therefore, repeat visits. “Cash & carry/wholesalers should ensure they stock a wide range of price-marked packs to help retailers in meeting this trend.” Nicolaou adds that BAT UK is committed to supporting its trade partners. “We believe that strong relationships drive business benefits, so we also regularly carry out support activities within the C&C/wholesale channel as we recognise its importance to the tobacco sector. “This includes trade promotions, such as money-off deals and offers on new products. One example was the popular activity in support of the Rothmans Gold and Silver launch. “Introductions throughout 2012 reflect our commitment to deliver products that answer the growing trend of adult smokers demanding even greater value for money.” Nicolaou says that, over the past five years, Pall Mall has become one of the top 10 cigarette brands in the UK.


• Cash & Carry Management • January 2013

Now with a market share of over 4% (Kantar April 2012), it is celebrating this success by upgrading its packaging. With a more contemporary look, the pack covers the full product range. PMPs are available and pricing remains the same as in the October price list. The biggest change in appearance involves a silver design replacing the pink colouring. In August last year, BAT UK switched its Pall Mall RYO 12.5g variant into a new 11g PMP pouch, reducing the gramme for gramme price. Priced at £2.99, it was introduced in response to focus group research, which showed that adult smokers wanted a quality RYO product priced at under £3. Nicolaou comments: ”Over the last three years, the rollyour-own sector has enjoyed double-digit growth as adult smokers demand excellent value for money on quality convenience purchases during continuing tough economic conditions. “The Pall Mall 11g pouch provides just this – a quality product at an affordable price.” After becoming available in a PMP format, the pack was launched in October in a non-PMP style. Nicolaou is a great believer in effective merchandising in the C&C/wholesale channel. He says that operators can benefit by highlighting new products and special offers to the trade and by stocking a comprehensive range. As well as Pall Mall, BAT UK markets Dunhill, Lucky Strike, Vogue, Cutters Choice, Royals and Samson.

Greater value As regards JTI (Gallaher), head of communications Jeremy Blackburn comments: “In these tough economic times, the RYO and value cigarette markets are continuing to grow as adult smokers seek out greater value for money when purchasing tobacco. “So it’s important that manufacturers and retailers demonstrate to adult smokers that they are getting the best possible choice and value when making their tobacco purchase. “PMPs do exactly this while also driving footfall, customer loyalty and associated purchases. We make available non price-marked and price-marked packs, and Blackburn: ‘PMPs drive footfall, customer loyalty retailers can buy whichever and associated purchases.’ they choose.”


price marking Thank the Chancellor! Imperial Tobacco is another leading supplier in the tobacco category that has championed the price-marking revolution. Patrick Toms, head of distributive sales, says: “Continual tobacco taxation increases by the Chancellor and the tough economic conditions are driving the ‘value-seeking’ trend, which is prevalent amongst tobacco shoppers. “With more and more watching their pennies, it is sensible for cash & carries to ensure their tobacco rooms are well stocked with a good range of price-marked packs, which over the past few years have grown in popularity among both retailers and consumers.” Toms says PMPs have a vital role to play in achieving a positive price perception and communicating effectively to shoppers that everything in a retailer’s store is great value for money. “Research shows that 57% of adult smokers will always buy PMPs if available (Nielsen January 2012), demonstrating that shoppers believe they are getting a good deal. “In turn, this leads to customer loyalty and repeat business, while at the same time proOne of many price-marked packs in the Imperial Tobacco portfolio. viding independent retailers with a tool to compete in a highly challenging market place.” He adds that Imperial Tobacco, which constantly researches the market, provides PMPs for such tobacco products as Lambert & Butler Fresh Burst, JPS ‘Silver’, Windsor Blue, Gold Leaf, JPS RYO, Drum Additive-Free and Golden Virginia handy packs. “However, we appreciate that some retailers wish to purchase standard stock, so we always provide non pricemarked variants. Our message is, and always has been, that our trade customers, whether in retail or C&C, are free at all times to determine the selling price of their products.” In June, the supplier launched ‘compact’ Richmond Profile – king size in length, but with a smaller diameter and, therefore, offered at a lower recommended retail price. Toms comments: “They provide tobacco shoppers with a lower cost alternative to king size cigarettes and, by selling them in PMPs, retailers can highlight this to their tobacco customers. He adds that Imperial Tobacco invests a considerable amount in its sales force to assist the distributive and retail sector.


• Cash & Carry Management • January 2013

“An intrinsic part of this is providing point-of-sale material to cash & carries. Furthermore, we can offer promotional support to assist in driving awareness. Our reps can inform tobacco room staff of all of our new PMPs and the most efficient ways to merchandise them. It’s a key part of our service.” Toms concludes: “Products supported by PMPs offer value to tobacco shoppers, and retailers can utilise them to increase their footfall and protect turnover. So it’s essential that cash & carries are aware of local market trends in order to be in a position to accommodate the tobacco buying needs of their customers and stay one step ahead of the competition. “For retailers, it is important to understand that stocking PMPs can help alleviate downtrading, ensuring stronger margins long term as well as helping to retain their customer base.”

Invaluable to independents Discussing the benefits of PMPs, Zoe Smith, Philip Morris’s manager, marketing UK, says: “Communicating value for money is very important, so price-marked packs of cigarettes are invaluable to the independent retail trade in order to retain adult smokers and to help increase the frequency of their purchase.” Citing research, she comments that PMPs reassure adult smokers of value for money and that most would always buy these packs over non price-marked packs if available (him! 2012). She adds that, between January 2010 and June 2012, PMPs increased their volume share in the independent channel by 70% (AC Nielsen volume sales). Within this and the symbol sector, PMPs account for 79% of ‘superlow’ volume and 54% of all cigarette volume (Nielsen August 2012). Among the skus that have price-marked variants in the Marlboro range are Gold Original 20s (£7.75) and 10s (£3.94). Under the Chesterfield Red label, Super Kings (19 sticks) carry a £5.75 mark. Smith says Philip Morris is committed to supporting independents not only by delivering on quality and price, but also through trade support, such as PMPs.

Philip Morris trade support includes price marking.


price marking Profit opportunity Price-marked packs are also driving growth in the soft drinks category, according to Guy Gissing, national impulse controller of AG Barr. He says: “They clearly indicate value for shoppers and therefore represent an important profit opportunity for C&Cs. Around 57% of soft drinks growth has been driven by PMPs. “Shoppers have come to expect promotions as a key part of their hunt for value, with 58% buying more when products are on promotion, making PMPs an important tool to driving sales.” While overall volume of soft drinks has been affected by consumers cutting back, says Gissing, sales of the supplier’s popular brands, such as IRN-BRU, KA, Rubicon and Rockstar – all available in PMPs – are growing. Rockstar has leapt by 75%; KA has grown by 15%; Rubicon by 14.3%; and IRN-BRU and Barr both by 7%.

Last year the soft drinks giant made a significant investment behind PMPs, with the launch of a number of new skus. They included £1.79 price-marked packs for its ‘Core 4’ range of flavoured carbonates, which replaced the £1.99 PMPs for two-litre Fanta Orange and Fruit Twist, Dr Pepper and Sprite. Also launched were 59p packs for 330ml Coke, Diet Coke, Coke Zero and Cherry Coke, offering retailers 40% profit on return. The PMP activity also included My Coke 1.25-litre at £1.39 and 330ml can four-pack at £1.89. Among CCE’s permanent PMPs are Fanta, Sprite, Dr Pepper and Lilt 330ml single cans at 55p, My Coke 500ml at £1.15, Oasis, Fanta, Sprite, Lilt and Dr Pepper 500ml at 99p, Relentless and Monster Energy 500ml cans at £1.39 and Powerade Energy 500ml at 85p. Goldney comments that soft drinks is one of the most popular PMP categories among retailers, who want them to stock in chillers and on shelf. “They clearly drive purchase, with consumers 44% more likely to buy a soft drink on impulse if it is a PMP. In addition, 53% are more likely to trial a new product if it is a PMP. Referring to the manufacturer’s ‘Core 4’ development, he says: “This new lower price of £1.79 represents even further value for consumers and the new packs offer a good balance between the rsps on PMP and rate of sale to retailers. “These brands are worth £97m (Nielsen MAT week ended 30/6/12) and are growing well in impulse.” All data him! PMP study 2011 unless shown.

Long-term strategy

‘PMPs clearly indicate value for shoppers and therefore represent a profit opportunity for C&Cs’ Guy Gissing, national impulse controller, AG Barr Gissing adds: “Some 44% of shoppers find it difficult to find the best value and promotions in store (IGD), so PMPs remain the best way to attract them in impulse. Some 98% of shoppers say they would buy a price-marked drink from a convenience store (him!). “The importance of PMPs to retailers is clear: 76% of those surveyed believe PMPs improve a c-store’s price image, while 65% said sales of PMPs have grown in c-stores over the past 12 months (him!). Gissing advises cash & carries: “Stay tough, as supporting PMPs is key to growing sales. No other manufacturer delivers better value to customers than Barr.” Data Nielsen Scantrack MAT 13/10/12 impulse except where shown.

Lower prices Coca-Cola Enterprises believes that price-marked packs offer a strong sales proposition for retailers, says Darren Goldney, sales & customer development director.


• Cash & Carry Management • January 2013

Britvic Soft Drinks last year launched a range of PMPs ‘to help retailers drive rate of sale and increase profits’. Including Pepsi Max, Lipton Ice Tea, 7UP, Tango and Juicy Drench, the packs are available long-term. The soft drinks category is worth £1.8bn in impulse and is growing by 7% (AC Nielsen MAT 17/3/12), and PMPs are considered a major means of capitalising on this growth. Commercial director for impulse Kate Fletcher cites research showing that almost half of convenience shoppers are more likely to buy a product on impulse when it is pricemarked (him! September 2011). To ensure shoppers have a choice of PMP options across different pack sizes for a variety of occasions, 330ml cans are price-marked at 59p across the Pepsi range and 49p for 7Up and Tango. 600ml and 500ml bottles are price marked at 99p and feature on Pepsi, 7UP, Juicy Drench and ‘star performer of the cold hot drinks category’, Lipton Ice Tea. The range offers retailers profit on return of up to 49%. Britvic has also been supporting C&C/wholesalers with PoS material and displays to generate interest in depot. Fletcher comments: “Our research shows that customers trust price-marked packs, as they feel reassured that they are getting a good deal. Britvic is committed to supporting the convenience channel, as well as fuelling growth of the soft drinks category. We are confident our range of PMPs will contribute to this. “With consumers looking for added value in the current economic climate, our PMPs deliver this on big brands that shoppers know and trust.” Britvic’s range also includes Robinsons and J2O.





been dri s a h th w ro g s k n ft dri 57% of overall so cks* a p d e rk a -m e c ri by p arked packs -m e c ri p rm e -t g n Great value, lo Soft Drinks rr a B m o fr le b a avail

fit opportunity ro p is th n o t u O s is Don’t M

95 2 4 6 6 4 0 2 1 0 : n o s u Call

*Source : Nielsen Scantrack, Value Sales, MAT to 13/10/12, Total Impulse


price marking In two formats

Boost is heavily engaged in the sports segment, as well as in energy and active.

Importance of choice Simon Gray, managing director of Boost, is a great supporter of PMPs. He says: “As a champion of the independents, pricemarking forms a major part of our business and marketing strategy and will continue to do so, with a number of new developments planned in this area for 2013 and beyond. “Our aim is to price our products at a point which offers the consumer great value for money to drive sales and increase brand loyalty, while at the same time ensuring great profit margins for both cash & carry/wholesalers and retailers. “Recent negative publicity about the major multiples and special offers means this is even more important for the independent sector; price-marking confirms that the brand and its value can be trusted.” The supplier has around 20 products across the Boost Energy, Active and Sport ranges, making it, says Gray, the only brand covering all three elements of functional drinks: stimulation energy, glucose and sports/isotonic. They come in a range of sizes, including 250ml cans and both 500ml and one-litre bottles. “All of our products are available in both price-marked and unpriced packs as we believe it’s important to offer choice across the range. For foodservice outlets, there is also the chance for increased profit margins, depending, of course, on type and location. “Our PMPs feature our regular price points, rather than offer prices, as again we believe it’s essential to retain the value and trust placed in our brand. “Across our product range there is a 60/40 split in favour of PMPs, which reflects the importance of offering a choice and the diversity of retailers’ needs. “However, when it comes to our 250ml cans, 80% of sales are from PMPs, which is why price-marking remains an essential part of our strategy.”


• Cash & Carry Management • January 2013

Price-marked crisps packs for the independent sector come in both sharing and single-serve formats. Kettle Chips, which claims to be the UK’s leading handcooked crisp, has a range of smaller price-marked sharing bags specially for the independent convenience sector. Available through C&C operators and delivered wholesalers, the 100g bags come in the following flavours: lightly salted, sea salt & balsamic vinegar, sea salt with crushed black peppercorns, mature Cheddar & red onion and sweet chilli. The price mark is £1.29. Also price-marked are Kettle ridge crisps. Again being stocked by C&C/wholesalers, the 85g bags carry a price of 99p. Aimed at a slightly younger audience than the core range, they come in two styles: flamed steak and spicy chilli. ‘A premium product for everyday indulgence’, Kettle Chips 40g bags will next month appear in a 59p pricemarked format. Specifically for the independent sector, the selection comes in these flavours: lightly salted, sea salt & balsamic vinegar, mature Cheddar & red onion, sweet chilli and sour cream & onion.

All at £1 Mondelez International has £1 price marks on its 120g Cadbury Dairy Milk range, including Caramel, Fruit & Nut, Wholenut, Turkish Delight and CDM itself. Protecting retailer margins while running PMPs is important to the manufacturer. Research shows that over half of shoppers say that a PMP would positively influence their confectionery purchase (him!). The £1 PMPs also apply to sharing bags, including Cadbury Eclairs, Giant Buttons, Maynards Wine Gums and Sports Mix, as well as Bassetts Liquorice Allsorts and Jelly Babies.

Just one product in the extensive Kraft PMP range.


*Source: Nielsen Value TOTAL Impulse COLA CATEGORY MAT 27/10/2012. PEPSI MAX and the Pepsi Globe device are registered trademarks of PepsiCo, Inc.

of shoppers want PMPs but only 78% of retailers stock them.* of shoppers would be more likely to try a new product if it was a PMP.* of shoppers think PMPs improve a convenience stores price image.*

Boost has established itself as a trusted brand known for providing retailers with in-demand sports and energy drinks that provide great taste, energy and margins to help boost sales and profits.

Brand of the Year for Grocery 2012.**

of 250ml can sales are PMPs.

for more stand out and more sales.


boostdrinks.com *HIM PMP Study 2011 **Federation of Wholesale Distributors Awards 2012

price marking

Part of the Kepak price-marked range.

‘Good news for wholesalers’ “Cost-conscious shoppers are turning to PMPs in record numbers – and that’s good news for C&C/wholesalers and retailers,” says Angela Daulby, channel director for Kepak Convenience Foods, which claims market leadership in the hot snacking sector. “Today’s price-sensitive shoppers demand value for

money. Research (him!) clearly shows that they gravitate towards price-marked packs, which they believe represent a good deal. It’s important for C&C/wholesalers and retailers to recognise that standard PMPs deliver higher cash margins than launch or promotional offers.” The manufacturer offers many of its best-selling lines as permanent PMPs, including the original Rustlers range (Quarter Pounder, Chicken Sandwich and BBQ Rib) at £1.99. Daulby says that new products can also benefit from being price-marked as they encourage trial. “Rustlers Hot Subs and Hot Wraps are good examples. Both are price-marked at £1.99 and have achieved sales of £37.9m since launch (Nielsen Scantrack total market sales year to 23/6/12). “There’s no doubt that price sensitivity will continue, and this highlights the need for C&C/wholesalers and retailers to offer price-marked options. “However, what’s even more important is to ensure that products are readily available. If they are not on shelf, then whether they are price marked is irrelevant.” Daulby adds: “Too many independent stores are still losing out because shelves are not always fully stocked. Empty shelves means lost sales and, more importantly, lost customers, as shoppers will go elsewhere for what they want and may not return.”

One of five in this format until June.

ENERGY DRINKS The March 2013 issue of Cash & Carry Management will include a feature on Energy Drinks

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


• Cash & Carry Management • January 2013

On promotion till June McVitie’s Cake Company has introduced price-marked packs of Galaxy Cake Bars, Mars Mini Rolls, Jaffa Cakes Cake Bars and Jamaica Ginger and Lyon’s Golden Syrup Whole Cakes. Available until June, the promotional packs have a bold flash showing the lower price of £1.49.

For further information: AG Barr (01204) 664295 BAT UK (0800) 444236 Boost Drinks (0113) 240 3666 Britvic (0845) 758 1781 Coca-Cola Enterprises (08457) 227222 Imperial Tobacco (0117) 963 6636 JTI (Gallaher) (0800) 163503 Kepak Convenience Foods (02772) 688300 Kettle Chips (0800) 616996 McVitie’s Cake Company (01422) 360697 Mondelez International (08702) 400861 Philip Morris 020-7076 6000


Help drive your new year sales with Cadbury and Maynards confectionery

{ Available from January }

For more information and category advice go to www.deliciousdisplay.co.uk

All prices are recommended only, retailers are free to choose a different price. Non-price marked packs are also available.

The changing face of coffee

New packs, same great coffee

Whole Beans

Profile for Cash & Carry Management

Cash and Carry Management  

January 2013

Cash and Carry Management  

January 2013

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