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What do customers really think of your service? Sterling counters membership setback Andy Kemp on how 3663 always strives to improve Booker pitches in for more drinks trade

The business magazine for cash & carry/delivered wholesalers






Extending the range of Pringles flavours on your shelves could increase your incremental sales by up to 50%.* So make sure you’re stocking our other fantastic flavours and you could see a jaw-dropping boost in your profits.

* Based on previous Pringles flavour launches.


Not all are belt tightening No-one needs reminding that we are in the middle of the biggest recession the country – nay, the world – has had to face for a lifetime. In the UK, the days of glittering balls to reward staff or raise money for charity are few and far between. Advertising budgets have been slashed and staff numbers have been trimmed. And while it hasn’t quite got to the level of restricting the use of paper clips, drastic measures of that kind might not be far off. Every so often, however, we are reminded that, although money remains tight, the wheels of commerce cannot grind to a halt and that improvements have to be made if companies are to trade profitably. Two such examples have come to light – one by a leader in food manufacturing and the other by the UK’s major delivered wholesaler. In Slough, Mars Chocolate UK has unveiled its new £6 million research & development facility, with leading politicians attending the official opening. And in Hemel Hempstead, Palmer & Harvey has shown off its most sophisticated site yet, where £6.5 million has been spent on a raft of facilities not only to enable trading to go like clockwork – until any breakdowns, of course – but also to provide staff with modern and comfortable conditions. How many developments such as these have had to be shelved while business fights the economic slowdown is anybody’s guess. Will Mars and Palmer & Harvey have encouraged ditherers to reconsider splashing out?

Palmer & Harvey’s Hemel Hempstead site is the apple of its eye ... see p.10

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Mervyn Gilbert

Managing Editor

Kirsti Sharratt

Contributing Editor Media Sales Manager

John Wood Clare Phillips

Business Development Manager David Ford



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Mervyn Gilbert editor



customer cares

Publishing Director


Martin Lovell

4,560 July 2011–June 2012

61 62–63

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

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

Cash & Carry Management

• October 2012 • 3


IN BRIEF Charity ball Elbrook Cash & Carry, the Mitcham-based Today’s Wholesale member, presented a cheque for £15,000 to the Sue Ryder Foundation following the operator’s third annual charity ball, held at its Chak89 conference, banqueting and restaurant facility. Among the 350 guests at the event were MPs, film and television celebrities and Tottenham and Chelsea footballers.

More snacks Booker has added four new snack products to its Happy Shopper range: Monster Claws (50g), Prawn Shells (40g), Mini Poppadoms (30g, 59p each or two for £1) and a Party Mix bag (90g, pricemarked at £1). All come in outers of 12.

3663 award FusionFSM, of Marlow, Bucks, provider of outsourced sales and marketing services to foodservice firms, has been awarded the top national accounts supplier trophy at the 3663 Oscars.

Recycling Booker customers will now receive 20p for each litre recycled as part of the cash & carry/wholesaler’s ‘Used Cooking Oil Recycling Service’. Packs for disposal are taken away by a collector.


Two new own brands Today’s Group is introducing two own labels – a ‘pricefighting’ range called Today’s Essentials and another with the quality of major brands, with keen prices, under the Today’s Select banner. And in a third launch, the Doncaster-based group is unveiling Blue Stone spring water, in five variants. Each of the new own labels has around 20 products. More are due to be launched in February, and by the end of 2013 the aim is to have around 200, of which 80% will carry the Today’s Select label. Managing director Bill Laird claimed the group is known as “the home of the brands” because of its strong relationship with major suppliers. However, it realised that it needed to expand its offer to provide members with a competitive own-label range

Some of the Today’s Essentials range.

which would obviate the need for shopping around. The small number of items in the two ranges was deliberate, said Laird, who explained: “These are key lines to avoid the mistake that other C&C/wholesalers have made by trying to stock inappropriate variants of own labels that then don’t sell. “This has resulted in suppliers sitting on many tens of thousands of pounds’ worth of own-label dead stock that

our competitors can’t sell and suppliers can’t easily dispose of. We don’t see any need or reason to get into the same difficulty.” Laird added that the Today’s Select range would provide retailers with “great margins, exceptional taste and quality, while Today’s Essentials offered “eyecatchingly low prices”, with price marking available. Tel: Today’s Group (0844) 247070.

Cruise specialist joins Sterling After disclosing that two the £450m turnover Fresca The new 85,000 sq ft new members have joined group, which specialises in Nursling site is shared by Sterling Supergroup in the fresh produce. Mack Ship Stores with two wake of the departure of its Many of Sterling’s memother Fresca divisions. leading member, Castell bers already purchase fruit & Sterling has also named Howell Foods, chief execuveg stocked by the group’s Trevor Stimpson, chairman tive Vanessa Hooper has Paddock Wood depot. and managing director of announced the recruiting member Waterdene of a third – Mack Ship Foodservice, of Leighton Stores. Buzzard, Beds, as its new The latest affiliate, with chairman. a turnover of almost £7 Stimpson, who before million and based at joining the company Nursling, near Southworked for Ross Foods, ampton, is a wholesaler PH Foods, Bejam and totally dedicated to cruise Van den Broeka (now ships – almost every potato specialist Lutosa), major operator sailing out replaces Castell Howell of the UK – supplying Foods md Brian Jones. fresh, frozen and chilled Tel: Sterling Supergroup foods, and ambient (01621) 856300. Fruit & veg (some for Sterling memSterling conference products. bers) being sorted at the Fresca site. report: pp.12–13 The company is part of

• Cash & Carry Management • October 2012


Linking up in Lincs Following its purchase of a minority stake in South Lincs Foodservice earlier in the year, 3663 has now completed the takeover of the business. SLF, operating out of a depot in Sutterton, South Lincs, is a family-run concern with a turnover of £17m. It is said to be in profit. It uses 25 vehicles to deliver 4,500 chilled, frozen and ambient foods, as well as non-foods, including cleaning products and packaging, to customers in East Anglia, Lincolnshire and the East Midlands. 3663 managing director

no current plans to change staffing levels, liveries or brands, although any opportunities to benefit from synergies that may occur through the acquisitiion will be considered.” Tel: 3663 (0370) 3663 000.

Alex Fisher said there would be no interruption to business during the changeover and that SLF would continue to trade under that name. The acquired company will be managed by Dave Hodgson, 3663’s md for the Midlands region. Fisher added: “There are

Mars Chocolate UK president Fiona Dawson (right) and Business & Enterprise Minister Michael Fallon mingle with staff during the Slough tour.

Minister opens R&D site Mars Chocolate UK marked the opening of its new research & development facility by welcoming Business and Enterprise Minister Michael Fallon to officially open the £6m centre in Slough. It is the manufacturer’s largest such operation, employing more than 100 R&D staff working on new products, packaging development, design, sensory science and long-term science and technology. UK president Fiona Dawson hosted the unveiling, which brought together

local dignitaries, including the Mayor of Slough and MP Fiona Mactaggart. The Minister was taken on a tour of the main factory – which dates back to 1932 – and the R&D department. The new facility includes state-of-the-art kitchens and laboratories, as well as a pilot production line where NPD will be tested. The centre will also be responsible for delivering new products to European markets and supporting Mars’ global R&D activities. Tel: Mars Chocolate UK (01844) 262517.

Butchery role

Appeal rejected Two members of a gang who kidnapped John Viggers, the manager of Booker C&C at Grantham, Lincs, in order to steal cigarettes and alcohol worth £40,000, plus £2,000 in cash, will have to serve lengthy jail terms, after failing in a submission heard at London’s Criminal Appeal Court. Nathan Pilsbury, of Kings Heath, was sentenced in April at Nottingham Crown Court to 13 years in prison, and Martin McBrien, of Little Billing, was given a 10-year stretch. The Appeal Court judges said the terms were “stiff, but not excessive”. Tel: Booker Group (01933) 371000.

Jon Howes

Bestway Wholesale has announced the appointment of Jon Howes to the new position of butchery development manager. Previously with meat wholesaler DB Foods, Howes, working from the central chilled distribution warehouse in Coventry, will be responsible for reorganising the group offering of fresh meat to foodservice and independent retail customers. There are currently 28 Bestway and Batleys cash & carries with fresh meat sections, but this number is likely to increase under Howes’ control. Tel: Bestway Wholesale 020-8453 1234.

P&H foodservice move Former PepsiCo UK & Ireland UK field sales director Huw Davies is spearheading a plan by P&H Direct to develop a van sales service aimed at the foodservice sector. His appointment comes shortly after the takeover by Palmer & Harvey of the Walkers van sales business. Jim Newsome, managing director of P&H Direct Van Sales, said: “We are about to

enter a new phase with the launch of our foodservice division. Huw’s track record (he began his van sales career with Golden Wonder) and his knowledge, skills and behaviours provide us with powerful leadership.” P&H Direct’s customer base already includes 50,000 c-stores, CTNs, pubs and other food outlets. Tel: Palmer & Harvey (01273) 222100.

Cash & Carry Management

• October 2012 • 5


Classic intervention Booker has wasted little time in a bid to cash in on the demise of Waverley TBS, the drinks wholesaler which went into administration early this month.

Wide range in current brochure.

The affairs of Waverley TBS are currently being handled by leading accountant, Deloitte. On its website, Booker features its Classic Drinks operation. Alluding to customers of the ill-fated business, it says: “We stock an extensive range of drinks to the licensed trade and would be happy to supply you should you be affected.” Under the control of Heineken UK until 2009, Waverley TBS was sold soon after to investment concern Manfield Partners. Not long after, however, there were reports of 300 jobs being cut and 10 site closures. The Chesterfield-based wholesaler has been supplying around 30,000 national and independent free-trade outlets with beer, spirits, wine and soft drinks and has a staff of approximately

Charity merger GroceryAid is the new name of the merged Caravan and Sweet Charity – the food trade’s two long-established charity organisations. The enlarged concern looks after more than 5,000 present and former employees who have fallen on hard times. Around £3m will be spent to support them this year. A statement issued by GroceryAid says: “We are retaining all existing fundraising events. “The area committees run by Caravan (formerly the National Grocers Benevolent Fund) and Sweet Charity will continue under the GroceryAid banner and,


where appropriate, regional committees will merge to form a larger entity.” At the end of the year, Palmer & Harvey chief executive Chris Etherington, who is presently chairman of Sweet Charity, will replace Tony Smith as chairman of the enlarged trustee group. Gillian Barker, currently director general of Caravan, becomes director general of the new organisation, which is based in Sandhurst, Berkshire. The next big event is the Sporting Heroes luncheon, which takes place in London on 2 November. Tel: GroceryAid (01252) 875925.

• Cash & Carry Management • October 2012

1,000 working from 18 branches. Classic Drinks, with headquarters in Haydock, St Helens, operates from a range of depots around the country, some on existing Booker sites, others in separate locations. The five most recent to open are at North Weald, near Epping, Eastleigh, Bristol, Sunbury and Sidcup. Tel: Classic Drinks (0870) 609 2609.

Recycling ‘gold’ for CCE Coca-Cola Enterprises has recycled 10.5 million bottles collected from the London 2012 Olympic and Paralympic Games. It has returned them to wholesalers’ and retailers’ shelves as part of the production of 42 million new bottles, each containing 25% polyethylene (PET). A spokesman for the supplier said: “The success of this large-scale bottle-tobottle recycling process was part of our commitment to helping the London Organising Committee of the Olympic and Paralympic Games (LOCOG) deliver the most sustainable Games possible.” The opening of Continuum Recycling, CCE’s new £15m joint venture facility with ECO Plastics, allowed the 10.5 million clear plastic bottles from London 2012 venues to be recycled within just six weeks of disposal. Tel: Coca-Cola Enterprises (08457) 227222.

Brakes man in Scotland Brakes has appointed Mark Bruce as business unit director Scotland. Most recently a management consultant, Bruce previously held senior positions at Finsbury Food Group and was on the board of Lightbody Celebration Cakes. Before that, he spent eight years in the drinks industry, latterly as regional sales director – Scotland at Carlsberg UK. He has also worked for Mars and Walkers Crisps. Brakes’ Scottish arm accounts for over 10% of its UK business and employs more than 600 people. Deliveries are made from five sites: Uddingston, Bellshill, Dundee, Inverness and Glasgow (Woodward’s). Tel: Brakes (01233) 206000.

Two of the proud staff.

Tail-wagging effort! Staff at Blakemore Wholesale raised £297 for Birmingham Dogs Home by washing cars in aid of the charity. The company’s charitable trust, the Blakemore Foundation, also contributed by matching the team’s collection. Tel: Blakemore Wholesale (01902) 371515.


Growing in foodservice “It’s been an extremely busy and eventful anniversary year for us,” said a bullish Tom Gittins (below), Confex business development manager. Not only has Confex introduced new initiatives, recruited more members, improved its trade communications and enhanced its category development programme, but it has also held a successful trade show and charity event to celebrate its 40th year of trading. Since 2011, said Gittins, Confex has welcomed 23 new members, the latest being Westminster Foods and Adams Cash & Carry in Peterborough, with £8m combined turnover. He added that, at the half-year stage, the group enjoyed 11.6% growth, with foodservice driving this

advance at plus 23% and chilled and frozen representing 53% of total trade. “We are also developing more commodity lines under the brand of ‘Simply’ to enable our wholesalers to counteract global factors,” he said. “One example is cooking oil, which has reached £2m sales since its introduction in September last year.” Gittins added that the group’s new green wholesaler award would be an annual event. Another initiative saw a new website being launched, with more information and features, as well as an online ordering facility. “Our recently launched weekly bulletin Delivered! now brings members news and promotions via this interactive launch pad to

Still tough at Makro It will take time for Booker chief executive Charles Wilson and his team to work the oracle at Makro UK, the struggling business which was acquired in July. In his comments accompanying Booker’s trading results for the 12 weeks to 14 September, Wilson said that Makro’s performance in the previous 10 weeks continued to be “challenging”. The purchased business will not be consolidated into Booker’s financial statements until clearance for the deal is obtained from the Office of Fair Trading. In the three months, total Booker sales (not including Makro) increased by 4.3%

compared with the previous corresponding period, with non-tobacco business up by 3.9% and tobacco by 5.1%. It meant that 24-week trading rose by 3.3% (nontobacco up 4.2% and tobacco 2%). Wilson said that sales of the cash & carry division “matched expectations” and that customer numbers rose. He also spoke favourably of Booker Direct, the delivered wholesale arm, speciality food operation Ritter Courivaud, the Classic ontrade operation and Chef Direct, which has gained several catering accounts. Tel: Booker Group (01933) 371000.

Confex and supplier websites. “Our member facility ‘esavers’ continues its rollout programme, aiming to give more members the ability to create a product brochure personalised with their own monthly deals.” The group’s Charity Challenge saw 40 people paddle 23 miles across three lakes in the Lake District, raising around £10,000 for four charities. Senior business development manager David Lunt described 2012 as “one of the toughest trading years of late, but one in which we have achieved a huge amount to improve our member services”. Tel: Confex Group (01608) 649000.

Greener Bestway Bestway Group has been re-certified under the Carbon Trust Standard for achieving further cuts in carbon emissions over the past two years. To qualify, organisations must demonstrate a commitment to good carbon management practices and a reduction in emissions from on-site use of gas and electricity for three years. To be re-certified, they must not only continue their practices, but also reduce emissions from fuel used for transport and business mileage. The group has achieved the savings largely through a £7m investment in a raft of improvements. Tel: Bestway Group 0208453 1234.

P&H meal deal Palmer & Harvey has teamed up with Britvic and Walkers to offer Mace symbol retailers a meal deal comprising a drink such as Pepsi, 7UP, Drench and Tropicana with any flavour of Walkers crisps, plus a sandwich.

The inclusive price to consumers is between £3.49 and £3.99. Simon Harris, the delivered wholesaler’s brand development manager, told Cash & Carry Management: “By offering this meal deal at a price below £4, independent retailers have the platform to challenge the multiples on price as well as on quality.” In addition to point-ofsale material, symbol traders are being offered a free allocation of stock if the PoS kit is displayed and the meal deal is being run when inspections are made. Tel: Palmer & Harvey (01273) 222100.

Rioja launch ‘Premium’ Don Fabian rioja red wine, which is recommended for all meat, pasta and tapas dishes, has been launched by Landmark Wholesale. The rsp is £5.49. Tel: Landmark Wholesale (01908) 255300.

Cash & Carry Management

• October 2012 • 7


Frozen to your fingertips! Palmer & Harvey has produced a guidance pack on frozen foods for retailers. It includes advice from category experts outlining the seven easy steps to selling frozen food and maximising sales, including tips on cabinets and freezers, merchandising and what are the best sellers. The pack also contains a market summary, showing that the total frozen market is now worth £5.4bn – up 5.9% on the previous year. The basket spend of customers purchasing frozen

Making things easier for retailers.

food is nearly 50% more than those not buying frozen.

Open for trade at Stoke Landmark Wholesale’s new member, Euro Wholesalers, established earlier this year, has begun trading at its Stoke on Trent site. Buta Kalhon, director of the family-run wholesaler,

formerly specialised in retailing for 15 years. The firm sells beers, wines & spirits, soft drinks, confectionery, crisps and snacks. Tel: Euro Wholesalers (01782) 849922.

Richard Hayhoe, marketing director, said: “People are using their local shops more frequently than ever – on average, three to four times a week. Our pack gives retailers the know-how to maximise their profits in the frozen food category.” The wholesaler services three symbol chains: Mace, Supershop and Your Store (Northern Ireland only). Tel: Palmer & Harvey (01273) 222100.

Upton retires Robert Upton, company secretary of AF Blakemore and managing director of Pontyclun-based Capper & Co, Blakemore’s fellow SPAR wholesaler which was acquired last year, has retired. The news comes soon after the appointments of Blakemore Wholesale finance director Bill Tomlinson as company secretary and former Capper human resources manager Ian Diment as HR director. Upton joined Capper in 1991 as company accountant and was promoted to finance director three years later. In 2005 he became the first non-family member to become md following the retirement of Bill Capper. Upton remains on both the Blakemore and Capper Pension Trustee Boards. Tel: AF Blakemore & Son (01902 366066.

3663 interests merge 3663 has introduced a new product range under the name of one of its associated businesses. Swithenbank Fresh & Fine Foods specialises in local and seasonal produce and represents a merger between Swithenbank and its sister company Gifford Fine Foods. The enlarged concern stocks 1,500 products, with fresh and chilled accounting for more than 1,000 and fine foods the remainder. Marketing manager Nick Phipps said: “We are seeing high demand for fresh produce and top-of-the-range products, not only from customers with high-end menus, but also from those looking


to add value and diversity. “By joining the two areas of our business to reflect 3663’s core strands of expertise, our customers have a seamless route to ordering fresh and fine foods.” Swithenbank Fresh & Fine Foods has already gained accreditation from the Craft Guild of Chefs in terms of three product categories: olives & antipasti, pasta and fruit purées. It also carries fresh meat, fresh produce, cheese and patés. “All products in our fine foods range are the best,” Phipps added, “so we hope the entire range will receive Craft Guild accreditation.” Tel: Swithenbank Fresh & Fine Foods (01274) 470200.

• Cash & Carry Management • October 2012

In charge of sales Sutherland Brothers, of Wick, has appointed Tom Maclennan head of its sales force, with responsibility for maximising opportunities in the Highlands & Islands. Maclennan joins the delivered wholesaler from Molson Coors, where he worked for 26 years, latterly

as channel director. Founded in 1892, Sutherland Brothers operates from a 35,000 sq ft depot and has a staff of 40. Six vehicles deliver to shops, hotels, pubs and schools in the north of Scotland. Tel: Sutherland Brothers (01955) 605070.

One of Sutherland’s six vehicles.

3 new additions to the Uk’s fastest growing Economy BRAND* Perfectly positioned for value-seeking tobacco shoppers… Don’t just take our word for it… Dave Akrill, Owner of P&P News in Bridlington, says: “Cigarettes and Tobacco are a massive part of my business, they account for over 75% of my turnover, so availability and choice is key to the success of my business. It’s great to have a leading brand like JPS now available in a full range of king size and superkings cigarettes. Especially the new JPS superkings 10s, which my customers have been asking for, for some time now. “With the amount of customers that come into my shop seeking value for money tobacco products, it’s really important I can provide the brands they want to buy.”

RRP: JPS Silver SKS 20s £6.40, JPS Silver SKS 10s £3.28, JPS Blue SKS 10s £3.28. For the avoidance of doubt, customers are free at all times to determine the selling price of their products. *Source: ITUK Estimates 2012

This advertisement is for the information of tobacco traders only

in focus

Switching the pressure Mervyn Gilbert visits the new Palmer & Harvey depot in Hemel Hempstead, Herts. It looks finished – certainly from the outside. And the interior, with its loading bays, storage areas and facilities for 300 staff, looks pretty well completed too. It’s only when you take a closer inspection inside that you realise there’s still plenty to be done at what is Palmer & Harvey’s most sophisticated UK warehouse, on a 168,000 sq ft site, in what must be one of the south-east’s busiest industrial locations. While £6.5m has been spent over the past six months on refitting the year-old building, with such facilities as lighting, fridge freezers, racking, two balers for waste plastic and cardboard, a 60,000 litre underground diesel tank and two generators in case of a power cut, there is still plenty of area that is not yet being fully utilised.

Standing out on the Hemel Hempstead landscape.

In terms of the P&H total network, the customer list also includes Bestway and 3663, both of which receive frozen foods – individual branches of Bestway’s Best-in retail chain and depots operated by the foodservice giant. Another major frozen food customer is Londis. Total P&H turnover is around £4.2 billion, of which £3 billion is derived just from tobacco. It’s a similar 75% or so percentage for the amount of business transacted with multiples. The company also delivers to almost 900 Mace retail shops and it is developing its Snacksdirect, Sweetdirect and newly-acquired Walkers van sales business. The next major plan is to develop – through the Walkers van operation – a fleet of vehicles delivering to foodservice outlets (see p.5).

Most of the 70 vehicles handle ambient goods only; the rest are temperature controlled.

Depot manager Ian Harbour says: “We currently stock around 5,000 product lines, but we can go up to 12,000. We have 100% capacity of both frozen foods and tobacco, plus 90% of ambient. But we have yet to fully use the chilled facility, and pharmaceuticals and drinks are all handled at the moment from our Coventry site, from which slow-moving lines will also switch to Hemel Hempstead. We are doing things very much in stages.” When fully operational, the complex will incorporate 7,500 ambient pallets, 2,000 for frozen and 500 for chilled. The site – the most high-tech in the 14-strong P&H chain – is designed to take between 20% and 30% of the pressure off P&H’s Aylesford and Fareham branches. Later, it is also expected to absorb some of the business currently conducted by the Brandon, Suffolk, depot. Around 70 vehicles leave the site each day from the 16 loading bays. Most are ambient trucks. While much of the 5,200-customer distribution is to independent retail shops (more than 30 have been added since the site opened) the bulk is to retail multiples.


• Cash & Carry Management • October 2012

Well wrapped to withstand the cold, this worker can’t wait to get back to his fully-enclosed heated cab – one of five in use in the frozen foods area.



76% of people think price-marked packs improve the price image of a Convenience Store 98% of customers are more likely to buy a price-marked pack versus a plain pack product Source: him! PMP Study 2011


sterling conference

‘More irons in the fire’ Mervyn Gilbert, the only journalist attending the Sterling Supergroup conference, reports on the Telford event. Just as 1992 was the Queen’s annus horribilis, with a series of events casting a shadow over the Royal Family, so has 2012 not been one of the better periods in Sterling Supergroup’s 46-year history, admitted chief executive Vanessa Cooper. Although she didn’t mention the split with Landmark Wholesale or the defection of Sterling’s biggest member Castell Howell Foods to Caterforce, everyone in the audience was well aware to what she was referring. “While we cannot compare our affairs with those of the Royals, 2012 is not a year that I will look back on with undiluted pleasure,” she commented. “Yet despite what has happened, we have had many pledges of support, and there has been a volume of goodwill and recognition by the trade. “We firmly believe in stability and continuity. These are our indefinable qualities.”

Third new member On a more positive note, Cooper announced that, in addition to recruiting Eagle Foods, of Peterborough, and McCartney Food Service, of Boston, Lincs (Cash & Carry Management: August), the group has recruited a third new member – Mack Ship Stores, of Southampton (see p.4). And to rally the troops further, she added: ”We have a few more irons in the fire. We are still a strong and effective buying group, and will be for at least another 20 years.” Cooper said the £340m turnover group, whose major

strength is now in foodservice, has maintained a good relationship with both branded and own-label suppliers. Gary Hannah, director of Hannah Foodservice, who came to the lecturn dressed like he had just emerged from a twohour stint on a forklift truck at his company’s Skelmersdale site, presented a witty potted history of the family-run business. “Although we have been members of Sterling Supergroup only since 2005,” he said, “we go back to 1977 when the company was started by my father Ray. In those days our customer base was fish & chip shops.”

Diversification Later, the company diversified into frozen foods, with Hannah’s older brother and his sister being “roped in” to the business. It also bought a 6,000 sq ft warehouse holding 5060 pallets of frozen food. Hannah told delegates that in 1990 his father retired due to ill health. Then poignantly, he added: “Ten years later, we had an armed robbery. Dad saw them off. But when he gave evidence to the police, he had a massive heart attack and died.” Regaining his composure, Hannah said: “Traditionally, our strength was in fast food, but we always wanted to get into foodservice. That’s why we joined Sterling.” With a view to expanding, the company found a 3.5-acre piece of land. “But we couldn’t start to build there until after we dumped tonnes of rubble on the site to get rid of the gypsies,” said Hannah – a line that had the audience laughing out loud. “The 44,000 sq ft depot has 1,600 cold store pallets and 1,100 for dry goods.” The downside, he said, was the steep increase in expenses – for instance, a near-seven-fold rise in electricity bills. “It took us two years to get on our feet. We now carry 2,500 frozen, chilled and ambient food products and 700 ‘others’. We also have 14 multi-temp vehicles and a staff of 64.”

Vanessa Cooper congratulates MKG Foods director Philip Mayling after his entertaining talk at the Telford conference.


• Cash & Carry Management • October 2012

sterling conference Hannah Foodservice’s hardcore customers include schools, universities and hotels and the company makes 1,100 deliveries a week. It also exports to Spain. Still joking, Hannah rounded off his speech by saying: “I still get a buzz seeing one of our wagons on the motorway, rather than it being stuck on the hard shoulder.”

Benefits of membership Philip Mayling, director of sales & marketing at MKG Foods, whose main ambient, chilled and frozen foods site is in Nottingham, said that his company joined Sterling in 2007 after acquiring Lord Premier Foods, of Birmingham, adding £2m to its turnover. “One of the benefits of being a member of the group is better prices,” he said. “But it also enables us to speak to people in the same business and with the same problems.” The company can trace its roots to Mayling’s grandfather, who was a butcher in Birmingham. By the late ‘40s, he was operating 10 shops. But with his two partners, he became interested in frozen food. And although frozen food was a huge failure in the early days, by the ‘50s it started to catch on. “In the 1960s, we were appointed as the West Midlands distributor for Findus and were selling frozen foods to independent grocers. “While frozen peas was the biggest seller in this category, in the West Midlands it was Brain’s Faggots.” With the supermarket chains starting to make inroads into the independent trade, MKG turned its attention to catering. In the ’80s and ’90s, however, its turnover was being boosted by contract distribution, servicing the major retail multiples. “At that time,” said Mayling, “we were turning over £250m in contract distribution.” And although the company continued to eye catering, “it was still something of a hobby for us.

Maybe not an ‘essential’ any longer at Sterling Supergroup, former chief executive Anne Tomlinson made a welcome reappearance at the conference in respect of her non-executive directorship at Leicester-based member Crown Crest.

“Three years after our 50th anniversary, which took place in 2000, it was clear that foodservice would be our major element. We set about halving our business and concentrating on customers such as schools and local authorities.” Despite taking a big knock in sales by changing course, Mayling philosophised: “Turnover’s vanity, profit’s sanity.” He added: “We shed our contracts and rebranded ourselves as ‘Your foodservice partner’ while realising that we weren’t going to compete with the likes of Brakes and 3663.” “We target 400 new accounts each year, including pubs and hotels,” said Mayling. “But 30%–40% do not make it after 12 months because either they or we decide to end it. Our value proposition to customers is: ‘We sell service’.”

Among the 54 suppliers...

Alan Glover looks confident on the stand of Kara Foodservice.

Crisp and even at the Burts Chips display.

Jeff Wells, of soup producer Zorba Delicacies, waits to dish up.

Cash & Carry Management

• October 2012 • 13


‘Be honest, be fair’ This month’s article features Simon Hannah, managing director of JW Filshill. priority, but the Filshill business is part of their life too. Sitting round the Sunday lunch table where my brother, my Dad and I are all talking about the business is not uncommon (much to the frustration of the girls at times), and it is amazing how many “why” questions the kids ask about what we are discussing – it can be a real eye opener getting an 8-year-old’s view on things! The ability to be able to access the business through technology allows me to get a good balance. What most frustrates you in business (and in life generally)? I am a very positive individual so would always focus on tomorrow, not yesterday – but there are frustrations in wholesale. Duty fraud and dishonesty prevent hard-working individuals and wholesalers from competing on a level playing field; these are problems that can be difficult to accept. If you were able to retire tomorrow, would you, and if so, how would you spend your time? I am only 35 years old so it is not a subject I spend any time thinking about! I guess attempting to fulfil my massive golf potential would be one thing! What advice would you give someone starting his/her first job? Be honest, be fair and stick to your word!

Simon (right) with his father Ronnie and brother Nick.

What has been the major milestone or turning point of your career? My whole working career has been with Filshill so it is difficult to determine a specific turning point. I think that being appointed managing director after my father retired was a key milestone in my career (November 2010). Who has been the biggest inspiration to you? Without question, my father Ronnie. The values and culture that he created in the business and his approach to life are things that we will never lose touch with. He is an absolute gentleman and is consistent with the same three principles in his life – being honest, being fair and keeping to your word! How do you maintain a work/life balance and how have developments in technology affected this? Work and life are the same thing so I don’t spend too much time trying to separate them. I enjoy work, I have great relationships with my colleagues and suppliers – it has always been that way. I do enjoy a game of golf, and, of course, spending time with my wife Laura and the kids is always a


• Cash & Carry Management • October 2012

What type of business would you have gone into if it wasn’t C&C/wholesale? I love marketing, and have been switched on to it since I was a wee boy. I have a great eye for adverts and logos so maybe creating adverts and marketing for the wholesale industry would be perfect! I have a desire to set up a Social Enterprise and utilise the Filshill business experience and our contacts to make a real difference to a local community (still in the early stages but the concept is strong). Watch this space! If you had a million pounds to invest in business, how would you spend the money? A million pounds in business does not go too far these days, but it would definitely be spent in the field of technology. There is no doubt that technology-based intelligence is the way we can improve our own efficiency, and the efficiency of our customers, which leads to increased profitability for all.

Shelf packer to director Simon Hannah joined JW Fishill after taking Business Studies at Edinburgh Napier University, during which time he also played semi-pro rugby. He packed shelves in the warehouse, then moved on to picking orders and working in despatch. He spent time in the sales and buying teams before being appointed managing director two years ago.

EXCLUSIVE LUNCH 6th December 2012 Cliveden House, Berkshire

Pre-lunch drinks reception in The Library Business session: ‘THE VALUE OF THE £ AND PRICE-MARKED PACKS’ Speakers include: • David Gilroy, operations director, Bestway Wholesale • Philip Jenkins, managing director, Sugro • Chetan Patel, owner, The Village Store Cash & Carry Management AWARDS winners and research findings Lunch in The French Dining Room

Places are strictly limited. To book, phone 01342 712100 or email


Driven by its customers 3663’s group sales director Andy Kemp tells John Wood, Cash & Carry Management’s contributing editor, how the company is constantly looking to improve its service to customers. Even in a flat market there are opportunities for individual companies to grow, and 3663 is demonstrating this with sales for the year ended 30 June up 7.7% to £1.1 billion, reports group sales director Andy Kemp. And, despite pressure on margins, the wholesaler was able to increase trading profit by 2.3% to £35.1 million. While many players in the market had high hopes for the big events this summer, and were disappointed, Kemp says the Queen’s Diamond Jubilee and even the Olympics had an upside for his company. Regarding the Diamond Jubilee, he explains: “We are a royal warrant holder so everything going on at Buckingham Palace, where most of the events were held, we supplied. We had a double hit as we supply the police as well and they had extra footfall too. “The Olympics were more mixed. We were one of the suppliers, along with five others, to Aramark, which was feeding all the Olympians at the Olympic village, so we were incredibly busy there over that period. But in the rest of London, trading was down considerably.” Kemp says one of the strengths of 3663 is the diversity of


• Cash & Carry Management • October 2012

its business, with all sectors of the foodservice market well represented within its 60,000-strong customer base, and no one sector dominates. So while some areas such as restaurants and cafés have been “bumping along the bottom”, other parts, such as hospital and education catering, have remained steady or grown. It has been an eventful year for the delivered foodservice sector with one of the biggest players, DBC Foodservice, collapsing, and that also helped to boost sales towards the end of 3663’s financial year. Kemp says: “It was clear some time before it actually happened that there was increasing nervousness among suppliers and clients. We held talks with some of the affected companies who we thought were a good strategic fit and who we could work with, and we won some major business.” But competition in supplying the contract catering sector has not slackened after DBC’s demise, with Booker moving into the sector with its Chef Direct service. Kemp comments: “I think this is a positive thing. The market remains competitive and that’s good for everyone.”

interview According to Kemp, 3663 is continuing to win significant Kemp says the trade should not read anything into this. new contracts because it understands customers’ needs and Although 3663 will always look at any opportunities to can add value to their businesses. He says: “Recently we’ve improve its service to customers, he says, the current added SSP, which was a major contract, and Norfolk County network is serving all its needs. It has capacity to handle Council. Clients like Elior are giving us more, ISS has just growth in sales, and there are no plans to add any more busiawarded us a major defence contract and the Ministry of nesses or open any more of its own depots. Neither are there Justice (MoJ) awarded us a contract potentially worth £440 plans to close any. million.” The MoJ contract covers all its food and drink needs However, 3663 will monitor its estate and upgrade existin a four-year deal, with an option ing sites when it identifies opportufor a four-year extension to 2020. nities. A recent example of this is With 23 operating depots and the installation of LED warehouse three regional distribution sites, lighting at 11 sites to improve 3663 already has a presence across energy efficiency. Warehouse lightmost of mainland Britain, but it has ing accounts for 20% of the energy recently taken over two other foodused at 3663 and the LED lighting service businesses to strengthen its will provide a 79% reduction in service in outlying areas. Kemp energy compared with using haloAndy Kemp, 3663’s says: “South Lincs Foodservice and gen lamps. Forteith Foodservice in Scotland Reducing energy consumption group sales director were filling in geographical gaps in makes good economic sense, but our coverage. Forteith takes us up into the Highlands and is also fits in well with the company’s long-standing policy on Islands of Scotland, and is a great organisation run by a great sustainability. Kemp says: “Sustainability is a part of our team, and South Lincs is another excellent business in a DNA. It has been a key activity within our organisation for similar environment slightly out on a limb.” over 16 years and is becoming increasingly important to our Kemp says that while 3663 will look to exploit synergies customers.” with them, they will work remotely from 3663, and there are He says 3663 is constantly looking to modify and develop no plans to change staffing levels or the liveries of the brands. its policy in a range of areas. One recent example is work it Taking over other businesses in order to strengthen its carried out on its vehicle bodies, which enabled it to put network has been a change to the way 3663 has grown more cages on to a lorry, and therefore deliver more and previously, when it has developed its own depots. However, reduce the cost to the environment of its distribution.

‘Sustainability is part of our DNA. It has been a key activity for over 16 years and is increasingly important to our customers’

3663’s multi-temperature distribution warehouse at Paddock Wood, Kent.

Cash & Carry Management

• October 2012 • 17

interview Another project that has been particularly popular with customers is its scheme to recycle waste cooking oil and use it as fuel for its distribution fleet. The scheme has ISO 14064 certification, meaning that carbon savings for 3663 and its customers are independently verified. Kemp says: “It’s very important to clients. If they are able to demonstrate back to shareholders that they have reduced their carbon footprint by ‘X’, that that business is much greener and their supplier is collecting part of their waste oil and putting it into its fuel, it is a very strong message.” As part of its corporate social responsibility programme, 3663 and its staff members do a lot of work in the community, with more than 230 initiatives with charities locally and providing support for over 40 national charities. Kemp says: “One of the reasons we believe we were awarded the Ministry of Justice contract is we have been giving work and apprenticeship schemes to prisoners, and accepting them into full-time employment in 3663.” 3663 also invests heavily in keeping up with the rapidly changing technology across many areas of the business and particularly in its online presence. Kemp says: “The expansion will be driven by our clients. Our customers are trading 24-7 in many cases so people like to place orders out of hours. “Chefs get to the end of a night and they want to place their order for the following day and it’s convenient for them. E-commerce gives you a greater flexibility. We also find that as our clients add more e-commerce into their systems they tend to buy more.” One of the latest developments from 3663 is an App that scans barcodes and does a rapid ingredient check, a function that Kemp believes will become increasingly important. He

There are 23 operating depots and three regional distribution sites within 3663’s business.

says: “Knowing the calorific value and the ingredients of a product can be really key for our customers. For example, in the Olympics, you have to check the ingredients in bread rolls, because if you serve a seeded roll to an Olympian it will have poppy seeds in it and it will show up as an opiate in any drug tests.”

3663 can now put more cages on to its lorries and therefore reduce the overall cost to the environment of its distribution.


• Cash & Carry Management • October 2012

IT news My Name is Bond; Warehouse Bond STL has seen an upturn in demand for its Bonded Warehouse solution in recent months, which comprises the best wholesaling systems and know-how from STL with the best duty management technology and expertise from Langdon Systems. STL’s Managing Director, Ivan Durkin, said, ‘It is permissible to defer Duty on certain goods held in a warehouse, and this can significantly improve a wholesaler’s cashflow position. However, the process of complying with the associated legislation involves wading through a minefield of red tape, which can be fraught with confusing acronyms and misinterpretation that can leave an operator susceptible to hefty penalties for non-compliance. ‘Our joint expertise can help wholesalers to assess the pay-back potential of a bonded warehouse, while our solution can help them to avoid typical pitfalls and free them from cumbersome admin chores so they can focus on channelling their improved flow of cash in ways that will benefit their business and customers.’ STL Bonded Warehouse can provide wholesalers with:

Alfa Wholesale to Re-Open STL is delighted to learn that long-time client Alfa (Wholesale) Ltd is literally rising from the ashes following a devastating fire at its Glasgow warehouse in April this year. The Today’s Group member has commenced the re-building of its 1,500m2 cash & carry depot on Lancefield Street, and is currently on track to re-open in January 2013. As before, it will offer a wide range of products – from traditional and ethnic groceries to catering supplies and household items – to a broad base of Scottish customers from caterers to convenience retailers. The reinvigorated company is keen to maintain and grow its reputation for friendly service, competitive prices and a wide selection of products. At the same time, it is turning this rebuild into an opportunity to adopt new energy-efficiency measures that will help it reduce its impact on the environment while further improving its customers’ experience. Abdul Rashid, Director at Alfa Wholesale, said, ‘We’ve been really encouraged by the incredible support given to us by our customers, suppliers and the local community. We’re looking forward to coming back bigger, better and stronger than ever.’

· Improved cashflow – by optimising the benefits of suspending or deferring Duty and/or VAT · Reduced cost of achieving and maintaining compliance · Safeguards against breaches of compliance and accompanying penalties · Accurate and timely Customs reporting · More efficient warehouse management · Real-time data updates via RF devices · Full audit of all stock movements.

Glamour for a Good Cause Congratulations to Elbrook Cash & Carry which organised a very successful evening to raise £15,000 for Sue Ryder. This charity provides end of life and long term care to people living with serious illnesses across the UK. STL’s Ivan Durkin (Managing Director) and Tim Dobie (Finance Director) were only too pleased to support this effort, and particularly enjoyed their brush with glamour in the form of celebrity Kerry Katona!

0844 472 4727


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Staff do make a difference In a new series, contributing editor John Wood talks to traders about the wholesalers they use. This month he’s in Newcastle. Mohammed Khan Blaydon Discount Centre (off-licence) Wholesalers used: I use a lot of cash & carries because I like to shop around. They all send out texts about their deals and I go to Booker, Blakemore, Costco and Lowries. Bestway opened recently and I go there too. Main wholesaler: I don’t have one main wholesaler but the three I go to most are Booker, Bestway and Costco, and I visit about three times a week. I go to Booker mainly for cigarettes and for the deals, and Bestway has a good range and some good offers. Costco has a smaller range but it has the best prices on what it has. Those three wholesalers account for most of my spend. Plus points: I go to them because I like the prices and promotions. The service is quick so I get through the tills quickly. Also, the staff are nice and have a good attitude. It sets you up for the day if you are going back to your shop and the staff have been nice to you. Suggestions for improvement: Availability could be improved. I get all the texts about deals but sometimes they have run out, and if I can’t get something somewhere then I have to go to another cash & carry. Also I think prices could always be better.

Derek Hurst Crescent Café (caterer)

I’ve never had any problems there at all. I normally go when I know it’s going to be quiet. I’ve been there tonight and I was in and out in 20 minutes. I’ve got my list and I write it in the direction I’m going. The majority of staff are helpful if you ask them a question. Availability is pretty good. They always have what I need, and if it’s not out there, they’ll go and get it. Suggestions for improvement: Sometimes if it is busy, they only have a few people on the tills, and they could do with having a few more of them open. If I do have to go when it’s busy, sometimes I can be waiting half an hour in the queue to get through.

Asif Hayat The Lanes Mini Market (convenience store) Wholesalers used: Booker, European Food Brokers and we’ve just started to use Bestway a little bit as well. I don’t like going to cash & carries. It’s not something I look forward to. We also get a drop shipment from Booker every week. Main wholesaler: We shop every day with Booker at the Gateshead or Newcastle depot. Booker probably gets 90% of our spend. Plus points: We use Booker because of convenience and they have a fairly good range. They are quick so you don’t have to wait to be served, and they are quite flexible on returns as well. Suggestions for improvement: A lot of the cash & carries go on about keeping your shop up to good standards but they need to do that with their depots as well. There can be holes in the warehouse floor, and filling them is not seen as a priority but it should be because you are carrying quite a heavy load. And in many of the cash & carries I have visited, the toilets have been disgusting and I have seen staff leaving them without washing their hands.

Wholesalers used: I use Booker and Costco. They are both about the same distance away in opposite directions. I had a leaflet from Bestway when they opened but I haven’t been there yet. Main wholesaler: I go to Costco because some things they sell are cheaper than Booker, but Booker is the main one. I go there about three times a week, mainly to buy food such as fresh, tinned and frozen. Booker accounts for about 70% of my total spend. Plus points: They usually have what I want and I know where everything is. I’ve been going there for 12 years since I’ve had the café.


• Cash & Carry Management • October 2012

The Lanes Mini Market in Newcastle.


Glasgow depot manager Gary Thomson (right) with Kepak Business Development Executive Graham Park.

Team Valley depot manager Naveed Anwar (left) with Kepak Regional Account Manager Adam Nowakowski.

Hot snacking experts Kepak Convenience Foods are teaming up with Bestway and Batleys in a sales-boosting category management project that will run over three months. The project will also involve retailers and will show that, by working closely together, cash and carry depots, retailers and manufacturers such as Kepak can all generate sales increases. The benefits of continually stocking the right products will be shown, along with improving product visibility using point of sale, both at depot and store level.

Two depots will be involved – Batleys at Cambuslang Investment Park, Glasgow, and the recently-opened Bestway Team Valley depot at Gateshead. Depot Managers Gary Thomson (Batleys, Glasgow) and Naveed Anwar (Bestway Team Valley) are both ready to seize the opportunity. Gary said: “The timing is ideal as we’ve recently revamped the provisions room and although we already sell a lot of hot snacking products, there is still potential to grow this category further. We’re always keen to embrace new ideas and are looking forward to the project.”

Next month we will focus on the specific changes at the two depots and a results round-up will follow in December. @kepaktrade

Naveed added: ”I’m interested in seeing the impact that point of sale can make and how we can help retailers to grow sales of hot snacking products. It’s good to be involved.” Kepak Convenience Foods’ Channel Director Angela Daulby says the dual effect of making products more visible in depots and educating retailers will have a really positive impact on both the depots’ and retailers’ sales. “This project is all about working as a team, getting the basics right and increasing sales in the process. Hot snacking is a dynamic category and we’re going to show how to make the most of it.”

otc medicines

Upside to coughs and sneezes Focusing on the brands that consumers trust will help wholesalers and retailers maximise sales and profits in the over-the-counter (OTC) medicine category. “When money is tight, people tend to buy decongestant category. A £2.5 million supmedicine as they become ill, rather than in port package is behind the brand this winter. advance. It is therefore even more important Sudafed Blocked Nose & Headache comes that cash & carry/wholesalers and their retail in packs of 16 tablets, six to an outer, and as a customers maintain full availability of the key nasal spray, in 10s. Both formats have an rsp brands,” says Alex Keevil, senior customer of £4.07. development manager at McNeil Products, An aggressive ‘six for the price of four’ offer part of Johnson & Johnson. is running on Sudafed tablets and all three The company boasts several of the No.1 Benylin SKUs in convenience during the selling brands in OTC, including Calpol, winter season. The products also come in a Benylin, Sudafed and Imodium. Once again, it free-standing display unit for C&Cs. is putting heavyweight advertising support “These units provide a winning formula for behind its key winter OTC products and is the trade,” says Keevil. “OTC is not a particurunning specific promotions for the cash & larly busy aisle so if the display unit is put in a carry/wholesale trade. different area with higher footfall – preferably Says Keevil: “For cash & carries, delivered by the checkouts – more customers will pick wholesalers and their customers, we keep our up the products and benefit from this excelrange as tight as possible with products that lent deal.” Calpol is on a ‘6 for 5’ deal for are proven to work. Maximising sales in OTC This season, Calpol and Calprofen are C&C/delivered wholesalers. is about stocking the brand leaders and receiving support worth £3 million. making it easy for people to shop – they are looking for the McNeil Products is also repeating the highly successful ‘six brands they are familiar with.” for the price of five’ offer in cash & carries and delivered He adds: “Cash & carries and retailers should merchandise wholesalers. The promotion covers Calpol infant 100ml the OTC fixture by category, not by manufacturer. The OTC bottle and Calpol six-plus 80ml bottle (both rsp £3.26); and aisle can be very cluttered but I am pleased to report that infant sugar-free sachets, original sachets and six-plus sugarmany cash & carries have simplified the choice they present free sachets (all in 12s, rsp £3.59). The deal also features on to their customers. Both C&Cs and delivered wholesalers 100ml bottles of Calprofen (rsp £3.56), which has the same have a big part to play in product recommendation.” strawberry taste as Calpol but contains ibuprofen instead of Benylin is specifically benefiting from £2.4 million in marparacetamol. keting support this winter. Cough remedies are worth £103 Furthermore, a free-standing display unit containing the million, of which £35.6 million is generated by Benylin. Not promotional packs of Calpol infant 100ml bottle, Calpol sixonly is it No.1 in the cough remedies category, but it is also plus 80ml bottle and Calprofen 100ml bottle is available outperforming the market – up 4.9% against a drop of 1.3%. again this year for cash & carries. The key Benylin SKUs are Benylin Non Drowsy Chesty Children’s pain relief is worth £73.2 million. Calpol is Cough and Tickly Cough (both 150ml, rsps £5.20 and £4.59), valued at £42.9m and outperforming the market decline of and Benylin Mucus Cough & Cold All in One Relief (packs of 2.8%, while Calprofen is worth £4.7m, up by 10.4%. 16 tablets, £4.49). “Calpol is a must-stock line. I would urge cash & carries Sudafed, which is valued at £24.5 million, is growing at and retailers to put it in a prominent position and ensure they 13.1% and now commands a 28.1% share of the £87 million stock the three key variants: infant, six-plus and Calprofen,” says Keevil. “Offering one SKU is not enough – shoppers need pain relief appropriate for the age of the child.” By far the leading brand in the £45.3 million anti-diarrhoea category, with a 61% share, is Imodium, which is growing at 0.6% against a market decline of 1.4%. It is currently benefiting from a £300,000 marketing spend. There are three key variants: Original Capsules (rsp £3.36), Instants (£4.38) and Plus (£4.08). Each comes in a pack of six capsules, with six packs to an outer. “If ever there was a convenience OTC product, Imodium is it,” says Keevil. “It is the ultimate distress purchase.” All data IRI all outlets value 52 w/e 25 Aug ’12

A £2.4m marketing package is supporting Benylin this winter.

McNeil Products uses Ceuta Healthcare and SHS to distribute its products in the wholesale channel.

• Cash & Carry Management • October 2012


otc medicines According to Chris Webster, senior commercial controller at Ceuta Healthcare, during the winter of 2011-12 the UK experienced very low incidence levels for cold & flu. As a result, sales of cough liquids and cold & flu remedies fell. “However, recent strong NPD launches should put the category in good growth for the upcoming season,” he says. “As ever, it is important to hold higher stock levels of the key lines from September/October time, particularly those brands with higher tv spends.” Indigestion remedies is the third largest category of all medicines in convenience, he points out. The top two selling lines of Rennie Peppermint and Rennie Spearmint make up over 60% of the whole market, and Rennie Orange was launched earlier this year as an alternative for those conA bolder, cleaner look for Fisherman’s Friend. sumers who prefer fruit to mint flavours. Stimson comments: “Last year, our purchasing reports Webster also cites upset stomach/hangover remedies as a revealed that consumers ditched higher-value items in must-stock category. “This classic distress purchase has favour of more cost-effective remedies such as lozenges. ensured that sales of brands such as Alka Seltzer have This was great news for Fisherman’s Friend and, as the always performed very strongly in the convenience sector. economic conditions continue to bite, we only expect more And a brand that has recently taken off dramatically within of the same this winter. convenience is Berocca.” “We are confident the bolder, cleaner design will have a As well as offering high margins, OTC products have an very positive impact on sales over the coming months.” average two to three year shelf life, Webster points out. Specifically for the independent trade and back by popular Fisherman’s Friend, which is distributed by Ceuta demand for winter 2012, Fisherman’s Friend Original Extra Healthcare, is taking to the small screen this winter with its Strong, Aniseed, Cherry and Blackcurrant flavours will be biggest television sponsorship deal to date, anchoring its available in cash & carries in flash marked ‘24 for 22’ packs, efforts around some of the most popular fishing proavailable until March 2012. The C&C sector will also benefit grammes. from a 25% discount on Fisherman’s Friend Blackcurrant Separate sponsorships will run across a range of the lozenges. As the headline flavour for this winter season, the Discovery Network’s fishing shows (October to March) and variant will also be promoted heavily in wholesale. the ITV1 cult hit River Monsters (January to May) and form Jakemans, available from LanesHealth, is launching its part of the brand’s biggest-ever integrated marketing camfirst national tv campaign as part of an intensive marketing paign, which also comprises digital, social media, sampling push as the UK’s fastest growing medicated confectionery and in-store promotions. brand (IRI 21 April 2012). Martin Stimson, area business manager for the UK, says: On air from 5 November for six weeks, the tv animations “These tv sponsorships represent an exciting opportunity for will bring the Jakemans Edwardian heritage and quirky brand us to reel in our male audience throughout our key winter positioning to life with the aid of a classic ringmaster and sales season. Having an on-screen presence throughout the other circus characters. key winter cough and cold season will keep us front of mind Hilary Lynn, marketing manager, says: “The brand has with consumers when they are battling against the elements.” proven to have enormous potential for Fisherman’s Friend, which has growth as it taps in to the nation’s recently benefited from a new pack passion for nostalgia and heritage. This design, has made significant distribucampaign has been timed to take tion gains in all sectors over the last 12 full advantage of the winter sales months. The brand has recorded a opportunity.” 15.7% increase in value sales in indeEstablished in 1907, Jakemans is the pendents (Nielsen symbol impulse fourth largest brand in the medicated value growth Nov ’11). confectionery market. It is worth £8.3m The new pack design makes it easier and is up 12.2% year-on-year (IRI 21 for consumers to spot the different April 2012). flavours. The range includes Original Jakemans traditional sweets (100g Extra Strong (the most popular variant bags) come in six flavours: Throat & in Britain), Aniseed, Sugar Free Chest, Honey & Lemon Menthol, Blackcurrant, Sugar Free Cherry, Sugar Blackcurrant Menthol, Cherry Menthol, Free Mint, Sugar Free Original and Menthol & Eucalyptus and Blueberry Sugar Free Lemon. Rsps are 73p for a Menthol. There are 10 packs (rsp 85p) 25g packet and £1.39 for a 45g box. to a case. Fisherman’s Friend has a UK brand A new extension to the range is awareness rate of 94% (Gfk survey Jakemans will benefit from its first national tv campaign starting in November. Jakemans Minis, available in the 2010).


• Cash & Carry Management • October 2012

otc medicines two most popular flavours: Throat & Chest and Honey & Lemon. Each 25g bag (rsp 49p) contains 10 Jakemans Minis, and there are 10 bags to a case. This month, the company is carrying out a national sales and distribution drive for the new line. Wrigley is launching a new advertising campaign to increase visibility of Lockets during the key winter period. Utilising the brand’s ‘Helps clear your nose and soothe your throat’ message, the campaign will be reinforced with new PoS material to create impact instore. The medicated confectionery category is currently worth £86.8 million and is growing at 6.2% year-on-year. Lockets A new advertising campaign has been launched for Lockets. has a 10.7% share of the market (Nielsen MAT to w/e 11.8.12). Lockets Honey & Lemon is currently the best-selling med– making it more relevant for everyday consumption. icated confectionery SKU in independent and symbol stores Alongside the launch, the brand received a new look (Nielsen independents & symbols MAT w/e 16.6.12). Lockets across its Mentholyptus and Soothers products. Sharper is also available in Extra Strong and Cranberry & Blueberry graphics improve stand-out on shelf and each pack now flavours. The rsp is 58p. features a ‘menthol power meter’, scaling the flavour from 1 Matt Austin, Wrigley confections business unit director, (mild) to 5 (strong). says: “Unlike our competitors, Lockets has a medicated To help retailers drive impulse sales of the updated prodlicence. The active ingredients menthol and eucalyptus are uct, Halls created a new counter display unit featuring Halls proven to help clear your nose and soothe your throat, along Mentholyptus (Extra Strong and Assorted Citrus) and Halls with a soothing honey centre and vitamin C. They are safe to Soothers. It is designed to be positioned at the till – the most take with other medication, and as 20% of medicated conimpulsive part of the store. fectionery is bought alongside another remedy, this provides The Halls Mentholyptus range consists of Extra Strong, retailers with a real incremental sales opportunity.” Original, Sugar Free Original, Ice Cool, Blackcurrant, Sugar This autumn Kraft Foods is looking to extend sales of Halls Free Cherry and Assorted Citrus. The rsp is 72p for a 33.5g beyond the traditional cold and flu season into more everypack, except for Sugar Free, which has an rsp of 75p for 32g. day occasions by introducing a brand new proposition, prodHalls Soothers (45g, rsp 72p) is available in Strawberry, uct and pack design, as well as a £1.3m marketing campaign. Blackcurrant, Peach & Raspberry, and Cherry flavours. Laura Cristea, Halls assistant brand manager, explains: “In Covonia is benefiting from its biggest ever spend on the UK, products within the medicated category, such as national tv, press and consumer PR this Halls Mentholyptus and Halls Soothers, are year, reports Thornton & Ross. traditionally purchased during the core cold Since their launch, Covonia’s Double and flu season, between September and Impact Lozenges have proved a real hit with March. UK consumers – becoming the fastest “However, there is an opportunity to growing lozenge brand last year (IRI medextend these usage occasions for Halls icated confectionery (excluding sore throat) Mentholyptus to times when consumers 52 w/e 28.1.12). need the power of a deep breath, enabling The brand has since extended its range to them to rally their resolve in order to tackle include four flavours: Berry Blast and everyday challenges. More than half of Strong Original (51g, rsp £1.65 and 30g, Halls’ sales are currently driven by con£1.35), Extra Strong (51g, rsp £1.79), and sumers who buy year round, thus proving Original Sugar Free (30g, £1.65). the potential to double Halls’ sales in five Covonia marketing manager Ed Round years with this alternative direction.” comments: “Consumers continually tell us To help consumers understand the new that they want stronger, more impactful brand positioning, Halls has invested £1.3 flavours – especially when their senses of million in marketing support throughout smell and taste are not at their best during September and October, including press the winter months. and outdoor advertising, radio sponsorship “All the key national grocery multiples and tailored PoS material. now stock Covonia Lozenges and retailers The Halls ‘Breathe Deep. Stay Cool’ have benefited with increased basket value campaign showcases different occasions when compared to cheaper competitor throughout the day. A sampling probrands. Convenience retailers should take gramme features 1.5 million samples. note of this opportunity to boost profits and As part of the new strategy, in August stock up as early as possible in order to Halls introduced Mentholyptus Assorted A new counter display unit is satisfy the expected high demand for Citrus. This variant contains three mild designed to help retailers drive Covonia Lozenges this winter.” menthol flavours – orange, lemon and lime impulse sales.


• Cash & Carry Management • October 2012

ULTRA SALES Active ingredients: Paracetamol, Phenylephrine hydrochloride, Guaifenesin.

Ultra All In One – our strongest cold and flu range. The only sub-brand within the branded multi-symptom segment to increase penetration last season.*

Keep your brilliance. Outsmart your cold. Presentation: Each capsule contains Paracetamol 500 mg, Guaifenesin 100 mg, Phenylephrine hydrochloride 6.1 mg. Uses: Symptomatic relief of colds and flu, pain and congestion of sinusitis, including aches, pains, headache, blocked nose, sore throat, chills, temperature reduction, loosening stubborn mucous and relief of chesty cough. Dosage and administration: Adults and children 12 years and over only: 2 capsules every 4 hours as required up to 4 doses in any 24 hours. Contraindications: Hypersensitivity to any ingredient, severe heart disease and cardiovascular disorders, hypertension, hyperthyroidism, MAOI use in last 2 weeks, glaucoma or urinary retention, use with other sympathomimetics. Precautions: Avoid use with alcohol, other cold medications or decongestant or paracetamol-containing preparations. Raynaud’s Phenomenon, diabetes mellitus, severe renal or hepatic impairment, prostatic hypertrophy, angina. Interactions: Warfarin or other coumarins, domperidone, metoclopramide, colestyramine, tricyclics, phenothiazines, anti-hypertensive agents, digitalis and halogenated anaesthetic agents. Pregnancy/lactation: Seek medical advice Side effects: Usually well tolerated in normal use. Hypersensitivity and allergic reactions including skin rash, blood dyscrasias, gastrointestinal discomfort, increased blood pressure with headache, vomiting, palpitations, tachy/bradycardia, tingling and coolness of skin. See SPC for full details. Overdosage: Seek immediate medical advice due to risk of delayed, serious liver damage. Legal Category: GSL. Product licence number: PL 12063/0082. Product licence holder: Wrafton Laboratories Limited (T/A Perrigo). Distributed by GlaxoSmithKline Consumer Healthcare, Brentford, TW8 9GS, U.K. (all enquiries should be sent to this address). Pack size and RSP (excl.VAT): 8 capsules £3.18; 16 capsules £5.32. Date of preparation: May 2012.

Beechams is a registered trade mark of the GlaxoSmithKline group of companies. *Kantar Worldpanel, % penetration, total multi-symptom, 22 Jan 2012 vs. year ago

otc medicines

Covonia is benefiting from its biggest-ever media support package

This winter, Reckitt Benckiser is planning campaigns for its key brands, which include Lemsip, Strepsils and Nurofen. Last month saw the introduction of Lemsip Cough, developed to increase category value by bringing in new customers to the mucus cough sector. There are four products in the range. Lemsip Cough Max (rsp £5.49) is a hot drink which provides effective relief of cold and mucus cough symptoms. It is said to deliver more soothing liquid per dose than cough syrups and also treats other cold symptoms. Lemsip Cough Max capsules (rsp £4.99) is a convenient formulation for people on the go. Reckitt Benckiser claims that there is no stronger capsule that offers relief from irritating mucus cough, as well as major cold symptoms. There are also two non-drowsy formulations of Lemsip Cough Liquid – one for a mucus cough (100ml, rsp £3.99 and 200ml, rsp £5.99) and one for a chesty cough (100ml, rsp £3.69). Supporting the launch of Lemsip Cough is new tv advertising, which breaks this month and forms part of an £8 million media campaign behind the whole Lemsip range. Also this month, Reckitt Benckiser is unveiling a new look for its Lemsip brand. While the familiar green and gold livery has been retained, the new design has stronger visibility. Another new product from the company is Strepsils 6+ Lozenges. Sugar free and available in Strawberry flavour, the lozenges start to relieve sore throat pain in minutes and are clinically proven to work for up to two hours. Strepsils 6+ lozenges are being supported with a £750,000 radio and digital promotional campaign. They come in packets of 24, with an rsp of £4.09. Gaviscon Instants Tropical Fruit Flavour Oral Powder has also joined Reckitt Benckiser’s portfolio.

The granules (rsp £4.99 for 12 sachets) dissolve on the tongue to give fast, soothing relief from heartburn and indigestion. The launch is being supported by a £3m tv and digital campaign that breaks this month and runs until March. Beechams, from GlaxoSmithKline Consumer Healthcare, is the second best-selling brand in the multi-symptom solid dose category (Nielsen value sales total coverage year-onyear 52 w/e 21.7.12). The Beechams range offers a comprehensive portfolio of products in a variety of formats. The brand’s strength and heritage is in multi-symptom remedies. Key products include Beechams Flu Plus (16 capsules), Beechams All in One (liquid 160ml and 16 capsules) and Beechams Ultra All in One (16 capsules) – the strongest formulation in the range and the only multi-symptom brand to increase penetration during the 2011/2012 winter season. Each product comes in cases of six. The current cold and flu remedies market is worth £429 million and is growing at 24% (Nielsen value sales total coverage year-on-year 52 w/e 21.7.12). Contrary to popular belief, the majority suffer from cold/flu in the autumn (57%) compared to the winter (47%) while more than a fifth of sufferers claim they are affected regardless of the time of year. Therefore, retailers should stock up all year round to ensure they do not miss out on valuable sales. Consumers can experience an array of cold and flu symptoms. Recent research indicates that the majority (70%) of sufferers claim that both their mind and body are affected by a cold or flu. Of those surveyed, 57% use solid dose remedies and 32% want the strongest product available to help relieve their symptoms. All data unless stated: Cold and Flu YouGov Omnibus 12.1.12

Over the coming season, GSK plans to invest in the Beechams brand with a range of activities including a new tv advert, outdoor and press campaigns and point-of-sale material.

For further information:

The strongest formulation in the Beechams range.


• Cash & Carry Management • October 2012

Ceuta Healthcare (01202) 780558 GlaxoSmithKline Consumer Healthcare 020-8047 5000 Kraft Foods (01895) 615000 LanesHealth (01452) 524012 Reckitt Benckiser (01482) 326151 SHS (01452) 378500 Thornton & Ross (01484) 848159 Wrigley (01189) 317030



STRONGER! • Strong brand growth with +5.8% value sales* • Biggest-ever marketing campaign, including TV sponsorship, trade promotions, digital and PR • 94% UK brand awareness* • Invigorating Britain since 1865

Stock up now

and net your share of the profits! * Nielsen May 2012


Round one results


These scores relate to the suppliers in contention for the Achievers ‘Best Overall Service’ award.




SCORE (max. 50)


AG Barr






Kraft Foods



Coca-Cola Enterprises



C&C Group



Britvic Soft Drinks



Highland Spring



Imperial Tobacco



Molson Coors



Nestlé 1st Choice






Whyte & Mackay



JTI (Gallaher)






First Drinks















AB InBev









United Biscuits












Cott Beverages



Dunhill (Haribo)






Bacardi Brown-Forman





• Cash & Carry Management • October 2012


. autumn 2012


issue 67

the newsletter of the scottish wholesale association

Mentoring scheme launched THE SWA is inviting applications from prospective candidates and mentors for its new Mentoring Programme. Unveiled at the annual conference in June, the scheme – which is due to start in January – sets out to improve skills and nurture emerging talent within the Scottish wholesale industry. Ambitious individuals currently working in the key areas of buying, sales and management are eligible to apply.

Crucially for employers, the Mentoring Programme is being structured around the needs of the business so will happen within the workplace. It has been designed to allow individuals to realise their own capabilities and potential, so matching people with a suitable mentor forms an important part of the process. SWA president George Benson explained: “We want to identify talent and retain that talent within our industry.

MENTOR AND CANDIDATE Several applications for the SWA Mentoring Programme have already been approved. These include Stuart Harrison, senior grocery buyer at JW Filshill, and Scott MacDonald, national account controller at AB InBev. Explaining why he wishes to be mentored, Stuart (left) says: “As a buyer I have gained my experience by listening and watching my colleagues around me. I always try to pick out the best practices and adopt them as my own. However, I do realise I still have much to learn, and I think that getting external support will prove to be beneficial in my aim to push our business forward. “On a personal note, my whole career has been spent working at Filshill and while that has given me an excellent skill base, I feel it is important to gain some experience from an individual with knowledge in the wider corporate world! “To be able to discuss thoughts and ideas with this type of individual is a unique opportunity that I wish to grasp with both hands, but I am also seeking more rounded experience that will assist me in my own personal development. “Hopefully this will help me reach my goals and set targets in a timely and more efficient manner and add value to my daily role within our business.” Scott (right) explained why he volunteered to be a mentor: “Having worked for Anheuser Busch InBev in the UK wholesale channel for over 10 years I continue to be impressed by how the SWA strives to improve the standard of wholesaling in Scotland. “When the Mentoring Programme was presented at this year’s conference I immediately saw this as an opportunity to try and support some of the emerging talent we have in our channel. If my past experiences can help anyone, in any way, in their future challenges, I’d be delighted.”

Investing in our people builds trust and helps achieve better results, and we need the right people with the right attitude and the right skills to create a truly worldclass industry. “The return on investment for wholesalers will be evident as they see their managers develop and grow.” Employees, endorsed by their manager, must apply to be considered for the programme, with acceptance based on evidence of relevant experience and achievements. The SWA is also asking applicants to submit a supporting statement as to why they believe they meet the criteria of ‘emerging talent’.


Investing in our people builds trust and helps achieve better results George Benson

Mentoring will cover a 12-month period after which candidates will have the opportunity of starting to work towards a professional qualification via the SWA’s training programme. The application process for prospective mentors – from within and outside the wholesale industry – is also under way. All candidates will be interviewed by the SWA Board of Trustees and, regardless of any previous mentoring experience, will be required to undertake specific training for the role. The SWA has created the Mentoring Programme in collaboration with its training partner 121 HR Solutions, which will supervise the initiative. Application forms and further information can be found on the SWA website at






Fresh Burst



choice & control

Always raising expectations


RRP £7.19

*ITUK Estimates 2012.





This advertisement is for the information of tobacco traders only

RRP £7.09

John Forteith joins Council JOHN Forteith, general manager of Forteith Foodservice, has joined the SWA Council as a replacement for Norman Wemyss, 3663’s managing director, Scotland and North. Earlier this year, Bidvest, through its 3663 subsidiary, acquired Forteith Foodservice, which continues to operate under the same name from its Oban site. The two companies have had a trading link for several years, with Forteith undertaking some distribution for 3663. Commenting on the change to the Council, SWA executive director Kate Salmon said: “Norman felt that John would be able to give the Association more time than he is able to. I would like to thank Norman for his invaluable contribution to the Association since joining the Council in 2003. In particular, he was an excellent president from 2006 to 2008, when he was responsible for increasing our focus on effective training for our members.” John added: “I am delighted to be involved in what is a truly unique association. The SWA has contributed

significantly to the development of Forteith Foodservice since joining as a private business in 2008, and I am sure will continue to do so as part of the Bidvest Food Service Group. “Nowhere else will you find an organisation that so successfully mixes together suppliers and competitor wholesalers in the pursuit of world leading industry standards, collaboration, lobbying, training and networking.

“The Achievers awards have been an important part of our business since joining, and give us an opportunity to benchmark against the best in the industry. As a result, we have pushed our own business to ‘achieve’ ever higher standards. It also enables us to communicate better with our supplier base, and identify areas of improvement that benefit us all. “The annual conference is a fantastic opportunity to come away from the business and engage with suppliers and competitors and share ideas and views on ever-changing industry challenges. “With a background in catering, branded manufacturing and own-label manufacturing at both regional and national levels, I hope to be able to contribute to the Council in obtaining a better understanding of not just what is important to the wholesale sector but also to the manufacturing and catering sectors. “I very much look forward to working with the rest of the SWA Council over the coming months.”

Training workshops THE SWA has confirmed its training programme for the next few months.

Donation THE CHARITY Fight For Sight is £12,600 better off thanks to a Heads & Tails game organised at the SWA annual conference and a golf day and auction hosted by Ken Cameron, field sales manager – Scotland at Coca-Cola Enterprises. Supported by the SWA, suppliers and customers, the golf day was held at the Royal Burgess, Edinburgh, and attracted 14 teams. As well as the Fight for Sight donation, £2,000 was given to George Watson’s College Family Foundation. Before dinner, 12-year-old Robbie Cameron (pictured above with Ken) spoke about living with Stargardt’s disease. 2013 will see further fundraising activities by the Cameron family, including Ken trying a triathlon.

16 October Selling & Negotiation Skills by Diageo Venue: Diageo, Edinburgh Park, Edinburgh This workshop will cover the following: understanding yourself and your style, tailoring your pitch to suit you, understanding the needs of customers, negotiating to meet the needs of both your customers and your own business, getting the right result. 30 October & 7 November Customer Service for Drivers by AG Barr Venue: AG Barr, Cumbernauld Delivery drivers are at the forefront of representing an organisation and first impressions do count! This course will cover: recognising who your customers are, the importance of first impressions, identifying the principles of customer care, recognising the impact of body language, and exploring the benefits of positive language.

28 November Presenting Masterclass by Mars Chocolate Venue: Hampden Park, Glasgow This workshop will give delegates the chance to develop their own personal style as well as practice new styles. It will include sessions on: ensuring your audience remembers the key message from your presentation, reviewing the presentation planner, understanding your vocal objectives, and audience feedback. January/February (exact date TBC) Customer Service by Coca-Cola Enterprises Venue: Coca-Cola Enterprises, East Kilbride This course will cover: understanding the communication process, understanding the different styles of communication and how you adapt, identifying customer needs, different questioning styles and techniques, and building joint business plans.

• For more information, contact Sandie Holmes at

Colin Wragg (pictured), Imperial Tobacco’s head of corporate & legal affairs, discusses the impact that standardised (plain) packaging for tobacco products, if introduced, would have on businesses in Scotland.

Bad for business, good for criminals DESPITE the fantastic work carried out by wholesalers and retailers across Scotland, the excessive taxation increases, as well as the unintended consequences of disproportionate tobacco regulation, continue to fuel the growth of the illicit tobacco trade. Illicit trade benefits only the criminals involved, it creates uncontrolled and unaccountable markets where children more easily obtain tobacco, governments are deprived of valuable tax revenues and tobacco retailers’ livelihoods are threatened. The Government is currently reviewing responses to the public consultation

on the introduction of standardised packaging for tobacco products. It could be argued that standardised packaging is already flourishing in the form of illicit tobacco products in Scotland. Typically sold in plastic bags or unbranded plain boxes, illicit products don’t carry health warnings or comply with other legal requirements for tobacco products. Offering all tobacco products in the same generic standardised packaging will inevitably make our streets a more attractive target market for those who produce and sell counterfeit products. The tobacco industry indirectly supports approximately 4,600 jobs in Scotland in

editor: Kirsti Sharratt

Bag charge

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: web: For full details on membership of The Scottish Wholesale Association, contact executive director Kate Salmon

distribution, retailer and forward linkages (TMA 2012). If standardised packaging becomes a reality there would undoubtedly be huge job losses at a time when our fragile economy is in desperate need of secure, high value job provision. It has never been more challenging to operate in the tobacco industry but we must remember that the Scottish tobacco market has millions of adult consumers and contributes billions of pounds to the economy. Imperial Tobacco will fight any proposed legislation that threatens to take vital revenues away from retailers, business and governments by handing it to the criminals who are thriving by offering cheap smuggled and counterfeit brands to consumers.

AS PART of a manifesto commitment to ‘seek to phase out free plastic bags in supermarkets’, the Scottish Government sought the public’s views on charging for single-use carrier bags. The consultation proposed: A requirement for all retailers to charge Inclusion of all thin gauge/disposable carrier bags, regardless of material Setting the minimum charge at 5p. SWA executive director Kate Salmon responded to the consultation and has offered the Scottish Government an opportunity to work with the Association to ensure that the wholesale trade is exempt from the provisions.

• • •

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

BOOK NOW! 0131-556 8753


Service under scrutiny How did these suppliers perform in September? Wholesalers in Scotland are asked to rate them. SEPTEMBER PERFORMANCE

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

Supplier Contact (max. 15 points)

Scottish Focus (max. 15 points)

Packaging & Merchandising (max. 5 points)

TOTAL (max. 50 points)

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

(inc Magners/Tennent’s)

Carlsberg Coca-Cola Enterprises Cott Beverages Diageo Dunhill (Haribo) First Drinks GlaxoSmithKline Heineken


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


Mars Maxxium Molson Coors Nestlé 1st Choice



(inc Walkers)


(inc Foodservice)

SHS Tayto

(Golden Wonder)

Unilever United Biscuits Whyte & Mackay

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


Just over £5bn in value The confectionery market for 2011 was valued at £5.07 billion – up 2.4% (IRI). Chocolate accounted for £3.6 billion and sugar around £1.4 billion. “Confectionery remains an affordable treat and the most impulsive category in snacking,” says Bep Dhaliwal, trade communications manager at Mars Chocolate. “Despite a tough economic climate, we will be continuing to work closely with retailers to capitalise on this throughout 2012.” Dhaliwal adds that the ‘Big Night In’ trend enables C&C/wholesalers to select the best range of products that independents will need. “By creating theatre in-depot, C&C/wholesalers can drive confectionery purchases, especially as chocolate goes hand in hand with seasonal opportunities, both as a gift option and to share and enjoy with friends and family.” Mars, which this year celebrates 80 years since the first Mars bar was produced at the Slough factory, has introduced limited-edition Mars Caramel in the UK (rsp 51p) following a successful launch in the US, Canada and Australia. It contains chewy, buttery caramel coated in thick chocolate. It is being supported by a Mars ‘Work Rest Play Your Part’ campaign and a press advertising drive in major titles. Dhaliwal says that demand for caramel confectionery has grown every year for the past five years and is now valued at more than £145m. In the £880m filled bars category (up 5% year on year) she claims that Mars leads. Limited-edition lines have helped fuel growth, with Snickers Maximus and Mars Triple Choc bringing in an extra £7.5m last year alone (SIG, all outlets, 2011). The major current Mars promotion – running until 13 January 2013 – is ‘Sweet Sundays’, which offers consumers

the chance to claim free cinema tickets, redeemable with the purchase of four special pouches across Mars’ best-selling bitesize range. Tickets are valid for two 2D movies at any participating Cineworld, Showcase, Apollo or Movie House cinema. Dhaliwal offers this advice to C&C/wholesalers: Stock the right range and refill regularly so retailers can find what they are looking for. Signpost brands at both entry and exit to ‘book end’ the category and drive footfall in the aisle. Lead the display by using the direction of traffic light flow, starting with the category with the highest penetration, eg Mars and Snickers bars. Site the best-sellers in the best areas, using the strength of brands to drive extra sales.

• • • •

Top 10 bitesize products 1 2 3 4 5 6 7 8 9 10

Maltesers (Mars) Giant Buttons (Cadbury) Galaxy Minstrels (Mars) Revels (Mars) M&M’s Peanut (Mars) Giant Buttons large sharing bags (Cadbury) Galaxy Counters (Mars) Twirl Bites (Cadbury) Aero Bubbles Peppermint (Nestlé) M&M’s Chocolate (Mars)

Symphony/IRI independent impulse, chocolate bitesize sharing MAT 11/8/12

Top 10 singles 1 2 3 4 5 6 7 8 9 10

Mars Twirl (Cadbury) Kit Kat (Nestlé) Snickers (Mars) Wispa (Cadbury) Twix (Mars) Dairy Milk (Cadbury) Crunchie (Cadbury) Maltesers (Mars) Double Decker (Cadbury)

IRI impulse year to 26/2/11

Major promotion for film buffs.


• Cash & Carry Management • October 2012

confectionery Plethora of NPD

is also a popular choice and provides a great opportunity for sharing with friends and family. Cadbury branded total large Over the past 12 months, Kraft Foods has launched Cadbury block chocolate is worth £186.7m.” Popcorn, Cadbury Twirl Bites, Bitsa Wispa and Cadbury Dairy New product development has seen the arrival of two Milk Bubbly. Cadbury was the official treat provider of the sharing blocks under the CDM brand: Golden Biscuit Crunch London 2012 Olympic and Paralympic Games. and Toffee Popcorn, reflecting the fastest growing snacking The last two years have also seen members of the public categories in the UK. engage themselves in the Spots vs Stripes initiative. Nash continues: “When developing these fun products, Reflecting on the performance of the UK confectionery as well as being insightful with the ingredients, we employed trade, Kraft Foods trade communications manager Susan innovative techniques to give the ultimate taste experience Nash says: “Thanks to an assortment of NPD and the rise of through the design of the tablets. ‘Big Night In’ occasions, the chocolate market is continuing “For the CDM Golden Biscuit Crunch, the biscuit layer to grow, with sales up 2.3% in value terms this year. runs right through the product, topped with smooth cream, “The chocolate bags category is already worth £324m making it thicker and chunkier than the standard CDM for a and is growing at 5.7% year on year, with bitesize products pioneering new type of tablet. currently accounting for 9.5% of stan“The CDM Toffee Popcorn is dard confectionery sales.” densely filled with sticky toffee popNash adds that Cadbury Bitsa corn, then generously covered with Wispa, which was launched in March, milk chocolate to create a multienjoyed sales of £4.2m in the first six textured product unlike anything else weeks. It contains bite-sized chunks on the market.” of chocolate in a resealable sharing Following the launch of a 90g milk format. chocolate style of CDM Bubbly, the “Its success is largely thanks to the brand has grown to be worth £10.1 Susan Nash, Kraft Foods’ trend for ‘Big Nights In’ and the way million in retail sales in the year to these formats offer consumers a new trade communications manager date. way of sharing their favourite Cadbury Pretzels (in chocolate) is Cadbury branded chocolate with friends and family.” also part of the NPD programme, as is Cadbury Eclairs, The branded bitesize range includes Cadbury Clusters, launched in the summer in a 48g bag – a new format for the Raisins and Peanuts, Caramel Nibbles, Crunchie Rocks and brand’s roll-pack. Cadbury Dairy Milk Giant Buttons. As far as category support is concerned, Nash says: Says Nash: “Sharing bags perform well because they “Consumer shopping trends are constantly changing, so it’s attract a variety of shoppers. The introduction of Cadbury important for retailers to market their stores effectively to Caramel Nibbles and Cadbury Crunchie Rocks brought difmaximise the opportunities that these shopping habits ferent consumers to the brand and increased total bitesize provide. penetration. Twirl Bites and Bitsa Wispa have increased this “Retailers should make sure that customers know the consumer appetite further.” services the store offers, the products that are stocked and Cadbury Twirl Bites was heralded as ‘the most successful the ease with which they can be found.” bag launch to date’. Some 22 weeks after introduction, it was Another Kraft division, TNCC, has launched a 180g sharworth £11m. ing bag for Guzzle Puzzle. The new flavour combinations are: Another sharing bag initiative – over the summer – saw apple & lime = lemonade and apple & raspberry = blackKraft Foods introduce Cadbury Popcorn. currant. All data AC Nielsen unless shown. Turning to large block chocolate, Nash comments: “This

‘Thanks to an assortment of NPD and the rise of Big Night In occasions, the chocolate market is continuing to grow’

Part of the growing Kraft Foods confectionery portfolio.


• Cash & Carry Management • October 2012


• All 7 participating brands are in the top 25 and 4 are in the top 10 of the nation’s favourites*. • New TV ad with £1million† media spend. HOW IT WORKS FOR YOU 1

Stock up with promotional packs.


When a customer wins, they choose a free bar from the 7 brands in the promotion


Scan the free pack as a sale, scan the barcode of the winning pack and keep the wrapper.

(does not have to be 1 in 6 promo-flashed packs).


Send your details with winning wrappers and your return address to: Mars Coupon Redemption Centre, PO Box 133, Uckfield, East Sussex, TN22 1HH by 8th September 2013.

*Source: IRI, Grocery Impulse Outlets, Value Sales, 52 w/e 24.03.2012. † Source:MMS Equivalent Spend. MARS®, SNICKERS®, TWIX®, MILKY WAY®, BOUNTY®, GALAXY® and MALTESERS® are Registered Trademarks © MARS 2012


We’ll reimburse you for the free packs claimed.


REMEMBER: all the winning free bars are more sales for you - we pay you back!

confectionery 30th anniversary To celebrate Ferrero Rocher’s 30th birthday in the UK, Ferrero is working with its route-to-market partners to encourage impulse retailers to purchase stock. Limited-edition ‘30 years’ packaging on fast-selling Rocher products and new premium ‘gold standard’ point-ofsale material will be used as both Ferrero Rocher and Ferrero Collection return to television throughout the Christmas season. Over three million limited-edition celebration packs started to be launched last month. Available on Ferrero Rocher three-piece treat packs (37.5g) and 16-piece gifting boxes (200g), the 30th birthday celebration message is being supported by online and social media investment. To help retailers maximise the sales opportunity, Ferrero is running promotions across the cash & carry/wholesale trade. Customer development director Levi Boorer says: “Ferrero was one of only three top boxed chocolate manufacturers to grow over the key Christmas sales period last year, despite a climate of austerity. “As the leading classic boxed brand, Ferrero is a unique and trusted proposition that will attract consumers to the fixture, driving impulse purchases which are heightened during the festive season, including both Diwali and Christmas. “By stocking the best sellers in the category in impulse – Rocher 16-piece box, 24-pack and Collection 16-pack – retailers can meet the No.1 consumer need for boxed chocolate at Christmas, which is gifting. The range offers a solution for other special occasions, including birthdays, throughout the festive season.” Referring to the ad campaign, Boorer says: “Both Ferrero Rocher and Collection will benefit from the £6m marketing investment, strongly weighted towards tv advertising, which is set to give the Ferrero brand No.1 share of voice in food during the Christmas period for a second consecutive year.” He continued: “Ferrero Rocher was the leader in food media spend last year, and was second only to Coca-Cola in

One of the company’s most recognisable products.


• Cash & Carry Management • October 2012

terms of total food and drink expenditure.” Boorer says the Collection 16-pack alone has added £1m to category sales, driven predominantly by heavyweight tv investment. Kinder is also aiming to accelerate seasonal kids’ confectionery sales by extending its range with the introduction of three novelty products: Kinder Chocolate colouring activity kit (150g); Chocolate Minis Tube (78g); and Kinder Surprise Christmas Egg. All data AC Nielsen.

Mixed bag Wrigley has launched a a Skittles and Starburst mixed bag across all channels. Confections business unit director Matt Austin says:

“Both brands are performing exceptionally well, with Skittles the fastest growing confectionery brand in the UK.” He adds that the fruit fun-sized bag sector has “massive potential” and that it is growing at 8.7% (Nielsen 11/8/12). “With Skittles and Starburst driving sales of the fruit confectionery market, this is the perfect time to launch a fun-sized mixed bag. “Not only is it perfect for individual usage, but also for Halloween and other sharing occasions. “Fun-size treats are a great opportunity for retailers as shoppers look to beat the recession by giving themselves small everyday treats.” Austin, who says that the total sugar sector has risen in value by 0.4%, adds that Wrigley’s sugar range is valued at £34.1m and is in 2.9% growth. “While the fruit confectionery segment is worth £197.2m (up 2.3%) Wrigley’s portfolio is valued at £22.4m and is growing by 7.5%.” Starburst is claimed to be valued at £20m (Nielsen total coverage fruit confectionery MAT 28/1/12) while Skittles is valued at £12.2m (up 58.2%). Austin told Cash & Carry Management: “Sugar confectionery is a highly expandable category and represents a fantastic opportunity for retailers. This year has seen the highest level of investment in Starburst since Wrigley took ownership of the brand.” Skittles recently launched its biggest-ever on-pack promotion with a total prize fund of £50,000.

£5M Media Spend

Capitalise on the great success of the Cadbury Dairy Milk Bubbly brand – Cadbury Dairy Milk Bubbly was the biggest NPD block launch in the last 5 years* Cadbury Dairy Milk Bubbly Mini, is packed in cases of 24, resulting in a lower case cost Display next to Cadbury Dairy Milk Range to maximise brand impact in depot

Stock, Display, Sell *Nielsen Total Coverage MAT to 12.06.2012 **52 w/e 19 Feb 2012 – Combined Panel – Spend % Indexed vs Total Large Block

For category advice and Cadbury news go to

confectionery Referring to price-marked packs, Kraft Foods has been supporting the Austin says that these have been launch with a campaign that includes stocked by cash & carries since April and PoS material, sampling activity, cinema that they are available across selected and outdoor advertising and social packs of Extra chewing gum tubs, media. All data AC Nielsen. Starburst and Skittles 55g bags. He comments: “In the current economic climate, consumers are constantly seeking out greater value for Sulá, which claims to be Europe’s leadmoney, so it’s important that manufacing manufacturer of sugar-free sweets, turers and retailers demonstrate to has relaunched its range of products for shoppers that they’re getting the best the UK market with new flavours and possible price when making their packaging. purchase. Presented in pocket-sized 42g flip“Price-marked packs do exactly this, top click boxes, the selection includes while driving both footfall and customer new Butterscotch, Mint Humbugs, loyalty.” Rhubarb & Custard and Strong Mint The manufacturer also recently introThe brand is worth £20m. varieties alongside the existing duced a new look for Extra and Extra Ice Strawberry & Cream and Fruit Mix flavours. The new prodMints through all channels. The wording includes the mesucts have an rsp of around 95p. sage: ‘Kind to Teeth’. Tanja Höke-Woltering, area sales manager for the UK and The brand is claimed to be worth £8.3 million. Ireland, says: “Sales of sugar-free sweets in the UK are booming and the opportunity for future growth is absolutely massive. Maynards Sour Patch Kids, a range of fruity flavour candy “Sugar-free sweets now have a 3% share of total UK characters, is a new launch by Kraft. confectionery sales, but this compares with 63% in Spain, for example. Products such as soft drinks and chewing gum have demonstrated the enormous potential for sugar-free in the UK market and confectionery is set to be the next big growth sector. “We have been producing premium-quality sugar-free sweets for more than 40 years and now make 70% of Europe’s sugar-free boiled sweets.” All Sulá sweets are free from artificial flavours, preservatives, hydrogenated fat and Aspartame and are said to be suitable for diabetics, vegetarians and for people wishing to reduce their calorie The five styles are orange, lemon, raspberry, lime and intake. blackcurrant, with each character offering a ‘tongue twisting Each Sulá sweet sour sensation, followed by a mouth-watering fruity flavour contains between ending on a sweet note’. seven and nine caloAs with other sharing bags in the brand’s portfolio, the ries. design features the Maynards logo. One of the key eleThe new product comes in a 160g sharing bag (rsp £1.52) ments of the marketing and 45g impulse size (50p). The larger bag is available in campaign is to demonouters of 12 and the smaller size in 28s. strate to consumers Senior brand manager for candy Zoe Howe says that the taste of the sweets, sours is worth over £46m and is growing at 15% year on with no need to year. The UK pocket candy category is valued at £453m, with include sugar. Kraft having a 24% share. National consumer She adds: “While sour confectionery sharing bags are sampling activity will currently delivering considerable growth, we identified a take place at major need to bring a product to market that is relevant to teens events, supported by and families – something a bit edgier – and Maynards Sour an advertising camPatch Kids was the perfect candidate. paign in national and “We’re hoping to inject some mischief and fun back into regional titles, plus women’s interest, lifestyle, health and the market, with a product with youth relevance.” fitness magazines.

New flavours and packs

Five styles


• Cash & Carry Management • October 2012





Classic boxed brand at Christmas†


Share of voice on TV††

£6 million Marketing investment

* Nielsen Scantrack, Total Coverage, 52 wks to 14.07.12 † Nielsen Scantrack; Total Coverage, boxed chocolate database excluding twistwraps, brand refers to Ferrero Rocher, 17 wks ending 24.12.2011 †† Nielsen Scantrack; Media value spend of food brand advertising (excluding retailer media spend), 4 weeks to 25.12.2011

confectionery broken up and served by weight or the complete tray can be sold as a gift.” Each 100g resealable bag has an rsp of £1, while the complete tray retails at £8.50. Ingredients include whole milk and butter, Belgian milk chocolate and Brazil nuts. Managing director Ian Walker (grandson of the founder) has a ‘hands on’ approach, overseeing production each day.

Introducing Squashies

Newcomer joins an established range.

Success in C&C/wholesale Walker’s Nonsuch, which calls itself ‘England’s finest toffee maker’, has enjoyed success in the cash & carry/wholesale channel with its 150g bag range, whose six established styles are: English Creamy, Liquorice, Assorted Toffees & Chocolate Eclairs, Nutty Brazil, Milk Chocolate Eclairs and Chocolate Toffees. New to this selection, and targeted at younger consumers, is Banana Split Eclairs, which come in yellow and green packs to create a strong on-shelf presence. All styles, which have an rsp of 99p, are available in white shelf-ready boxes.

‘All the twist-wrapped toffees in bags are growing in popularity, driven by the convenience sector’ Walker’s Nonsuch spokesperson A spokesperson for the company says: “While English Creamy remains our No.1 variety, all the twist-wrapped toffees in bags are growing in popularity, driven by the convenience sector. “Quality has always been a key factor for our independent family company, which has gained many loyal customers over the years. We use no artificial colours, preservatives or hydrogenated vegetable oils.” The company is also relaunching its Break Up Toffee range. Reflecting the current ‘retro’ trend, the pack contains two large slabs of toffee with a toffee hammer. Varieties include Original Creamy, Milk Chocolate Covered and Nutty Brazil. Says the company spokesperson: “The toffee can be


• Cash & Carry Management • October 2012

Love Hearts, Drumstick Lollies, Double Lollies and New Refreshers Bars have been given a ‘soft makeover’ by Swizzels Matlow to create a new Squashies range. Using the strapline ‘Original favourites squashified’, the selection includes four 160g bags (rsp £1.49) and two impulse bags (45p). The products use no artificial colours. A free app is downloadable at Director of the High Peaks, Derbyshire, manufacturer Jeremy Dee told Cash & Carry Management: “We wanted to give fans something new. We have taken the unique flavours of Love Hearts, Drumstick Lollies, Double Lollies and New Refreshers Bars and developed soft gum versions of our household brands.” The company, which claims to be the UK’s largest family-owned independent sugar confectionery business, has also launched a Christmas range. The festive collection features some of the company’s iconic brands in 750g tins. ‘Sweet Shop Favourites’, which includes the new New from Swizzels Matlow. Squashies range, has an rsp of £5 and is available through such cash & carry operators as Costco, Bestway and Makro. Swizzels Matlow has also introduced a New Refreshers chew bag (rsp £1), specially for the festive season. The manufacturer’s Christmas range also includes 108g tubes of Mini Love Hearts, New Refreshers and Drumstick Lollies (rsp £1.49). These, too, are being sold widely through the C&C/wholesale trade. Marketing manager Sarah-Louise Heslop says that the Love Hearts brand is showing 34% annual growth while Drumstick is advancing by 14% (Nielsen Value MAT 18/8/12). “Our sweet favourites can be shared around after Christmas dinner or be given away as a present. “Our gift tube collection provides a refreshing alternative to chocolate and is the ideal secret Santa present or stocking filler.”

confectionery ‘Fastest growing manufacturer’ Lindt & Sprungli (UK) claims to be the fastest growing manufacturer in the chocolate market, showing 12.5% growth. Says a company spokesperson: “Our Excellence brand has grown by 15.5% for the year to date and it is the third highest contributor to the advance in bars. Lindor is showing 11.9% growth – up £4.1m.” She claims that Lindor is now the leading boxed chocolate in the UK, adding: “Following popular demand, we have created a Lindor 38g countline bar which was launched in September with an rsp of 69p, allowing an average profit on return of 25%.” The spokesperson claims that “the response from the trade has been fantastic, with many retailers telling us that it is the perfect product for the impulse trade. “Sales prove that consumers have fallen in love with the product and they are achieving a much higher than average POR.” The supplier’s Excellence Creamy and 70% Dark are said to be the No.1 premium milk and dark chocolate bars in impulse. “Capitalising on the success of this brand,” says the spokesperson, “we have added some new variants to the range this year, including White Strawberry, Dark Chilli and Dark Wasabi. “And understanding that NPD Making an impact in impulse. adds value to the market, we have recently launched Creation, a range of 100g bars, which we believe to be the UK’s most indulgent range ever. The four tantalising flavours are: Sumptuous Dark Orange, Luscious Caramel, Divine Hazelnut and Velvety Vanilla.” Yet another new line in the Lindt range is Lindor Maxi Baule – a giant ball filled with Lindor truffles.

UK sponsorship tic tac, the global pocket confectionery brand from Ferrero, has become a ‘UK specific’ sponsor of the 2012 MTV EMA music awards. The deal involves an on-pack promotion and through-theline activity, leveraging the ‘star power’ of the awards, as well as creating a greater sales opportunity for the trade. The MTV EMA logo has been integrated into the packaging.


• Cash & Carry Management • October 2012

On-pack support for the Frankfurt-based music event.

Worth over £20m (Nielsen) and selling 50 million packs a year (internal estimate), tic tac is a strong seller among younger consumers. The promotion also offers consumers the chance to win VIP tickets to the 2012 MTV EMA in Frankfurt on 11 November. Levi Boorer, Ferrero’s customer development director, says: “tic tac, with its ‘shake it up’ strapline, has a clear natural alignment with MTV EMA. “We are confident that it will resonate not only with our core consumers but also attract new shoppers to the category, driving incremental sales. “We are putting significant marketing investment behind this activity. By merchandising effectively in store using our vibrant countertop units, retailers can capitalise on the highly impulsive nature of confectionery and make tic tac their star performer.” Mark Swift, commercial director of Viacom Brand Solutions UK & Ireland, adds: “We all grew up with tic tac and it is testament to the brand that it continues to resonate with today’s UK youth. “This is a partnership that will make sense to our audiences and the synergies between the ethos of tic tac and the spirit of the MTV EMA delivers a really exciting campaign that will seamlessly align both brands across multiple touchpoints.” Promotional packs are available for the following flavours: New Strawberry Fields, Fresh Mint, Lime & Orange, Cherry Passion and Spearmint.

For further information: Kraft Foods/Cadbury (08702) 400861 Ferrero UK (01923) 690300 Lindt & Sprungli 020-8602 4100 Mars Chocolate (01844) 262517 Sula UK 020-8123 9672 Swizzels Matlow (01663) 744144 Walkers Nonsuch (01782) 321525 Wrigley (01752) 752095

CIGARS The November 2012 issue of Cash & Carry Management will include a feature on Cigars

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

hot beverages

Tea sales decline Although tea remains a major seller, total value sales have fallen by 1.7% to £620m, while in the impulse channel they have declined by 2.5%. Coffee is worth well over half of the £1.6bn retail hot beverage category, with instant the largest segment in impulse (Nielsen May 2012). Promotions have played a major role in the sale of tea, with 54% sold this way last year. And bigger packs at lower prices have been the order of the day. Yet despite this activity, sales have declined, with everyday black tea down by 3.3% in volume and 2.8% in value. On the credit side, however, everyday decaffeinated jumped by 6.6% in volume last year and 3% in value. Simon Attfield, customer marketing controller at Tetley GB, owned by Tata Global Beverages, points at other positives, saying: “Green tea is a sector that continues to grow and is gaining wider consumer appeal. “An aging population is great for tea, too, as consumers aged over 45 drink the most tea.

The company’s range includes Tetley Original, Extra Strong (a £4 million brand which is marketed in 160s and 80s packs), Easy Squeeze, Decaf (also packed in 180s and 80s) and Redbush/Rooibos (40s), sales of which are up 4.5% in value. Early in the year, the supplier launched Tetley Blend of Both in packs of 80 bags, with each bag containing a blend of black and green tea. This year the company is investing £10m in its biggest marketing investment for 10 years. The programme includes 12 months on tv and radio, with advertising and sponsorship of Channel 5’s family movie slot and a 12-month sponsorship deal with Heart FM radio. Price-marked packs, promotions and sampling are also part of the mix. Says Attfield: “We are making a huge investment in promoting Tetley as the brand of choice for tea drinkers. Our strategy will enable us to put a lot of energy behind our core black tea products as well as benefit important innovations within black tea, like Tetley Blend of Both and the green and Redbush categories.”

Taste is the thing Unilever, which markets PG tips, claims that the No.1 tea brand is valued at more than £154m (IRI MAT 14/6/12). The company also reports that its Special Moments range generated £3.3 million in incremental sales in the last 12 month and that the Lipton label experienced annual growth of 11%. Brand manager Tana Walker told Cash & Carry Management: “Taste is a big driver for UK consumers and, in times of economic downturn, it’s important for any leading brand to communicate its main benefits both functionally and emotionally, while also invigorating the category with new product development.” She adds that research shows that just 22% of caffeinated tea consumers also buy speciality tea, mainly because they find the flavour too strong.

Fastest growing The new £2 price-marked pack.

“Although younger people are willing to try new styles, everyday teas are the choice of the older generation,” he explains. Attfield claims that Tetley is the “clear No.2 brand in the market” with 21.7%, behind Unilever’s PG tips. “There are distinct regional variations in market share, with Tetley showing a strong presence in Scotland, where it is clear market leader with a 46.7% volume share – over 30% ahead of its nearest rival of private label tea.” He adds that in the impulse channel, Tetley leads with a 37.4% volume share.


• Cash & Carry Management • October 2012

“Premium tea is the fastest-growing segment within the category, demonstrating increased consumer demand for alternative formats.” Now just over a year old, Unilever’s four ‘fresh tasting’ tea blends, called The New Ones, have been renamed Special Moments. The styles are: The Fresh One, The Strong One, The Evening One and The Hint of Earl Grey One. The Fresh One and The Strong One are now available in a 160 bag format. As part of the continued investment in the range, a £4 million integrated programme has been launched, including television, press and radio advertising, as well as sampling activity.

hot beverages

Making regular appearances in the media.

Growing at nearly 6% The Yorkshire Tea brand, marketed by Taylors of Harrogate and accounting for 70% of its hot beverage output, is worth nearly £62m at retail sales value and is growing at 5.9% year on year. It is claimed to be the third largest brand in the standard black teabag market with a 14.2% value share. Out-of-home & convenience controller John Sutcliffe adds that 80s, 160s and 240s are the best selling skus in the range. “We are the only major brand to create a blend of tea specifically for use in hard water areas, ensuring the great taste of Yorkshire Tea can be enjoyed by our consumers all across the country. “We also produce three blends of loose tea: Yorkshire Tea Original, Hard Water and Gold (the premium blend).” The supplier also markets a Taylors coffee range (30% of the company’s revenue), comprising Lifestyle, Gourmet and Beans. “Worth £35.2m, we are brand leaders in the roast & ground coffee sector,” says Sutcliffe. “Our coffee is growing by 24.4% year-on-year in value, making it the fastestgrowing of the major brands in the sector. “Six of our top selling lines feature in the top 10 of the market, with our Rich Italian, Lazy Sunday and Decaffe being the top three products. “Over the years, we’ve developed long-lasting, sustainable relationships with our coffee growers. Our expert buyers regularly visit the farms and co-operatives we buy from because we believe there’s no better way to establish a genuine rapport with our suppliers. “We pay sustainable prices for all our coffee by guaranteeing to cover costs of production and paying a premium for quality. This provides our suppliers with the stability and means to invest so they can meet independent environmental standards and improve living conditions in their communities. Our coffees are sourced from Central America, South America and Africa.” Referring to the hot beverages market in general, and the company’s performance within it, Sutcliffe comments: “We are growing ahead of a declining market, achieving plus 8.8% in volume and plus 7.1% in value.” What about price-marked packs? “We are big supporters of price-marked packs. They remain an ideal pack format


• Cash & Carry Management • October 2012

within the convenience channel and offer a great level of confidence to consumers that they are getting a good price on the product. “We will continue with our price-marked range and have added to this in the past 12 months with a Yorkshire Tea 160s format and a Decaf 80s pack.” Reflecting on other skus, Sutcliffe says: “Our extra fill pack formats work extremely well and we offer these across a broad mix of customers; this will continue into 2013. “As for marketing, we have just had another run of our Little Urn adverts on tv, and this has been backed up with sponsorship of the National Village Cup Cricket Competition. “We are running more above-the-line activity from November, and this will continue into 2013.” While most of the supplier’s volume goes through the retail channel, in foodservice it deals with some of the leading concerns, such as 3663 and the Country Range Group. All data: AC Nielsen.

Dedicated wholesaler Peter Churcher, field sales manager for Liverpool-based North West Tea, describes his company as “a dedicated tea and coffee wholesaler. We act as a middle ground between manufacturers and re-sellers, such as foodservice wholesalers and smaller cash & carry operators”. He adds: “We have great contacts and supply arrangements with Nestlé, Tetley, Twinings, Tate & Lyle and Unilever, to name but a few, and we have developed in other areas such as vending.” Commenting on how North West Tea operates, he says: ”We buy in large quantities. On occasions it’s cheaper to buy a pallet or two from ourselves rather than from a manufacturer. Buying this way can save in a number of key areas.” The company was formed 16 years ago, and Churcher claims that it has achieved growth every year – with a rise of 42% last year alone. “We’ve started well this year, too, so we’ve obviously got the demand, range and service right. It’s now all about development, establishing other sectors and making sure we get the best deal in the marketplace for our customers.” Churcher, previously with Tetley, sees his job as “the first point of contact. I try to offer a fast and reliable account management service and provide support and advice to all our customers”.

Power of instant According to Paul Freeman, marketing director of Douwe Egberts, the coffee market is going from strength to strength. He points to the fact that high streets are “awash” with espresso-based coffee shops, pubs, bars and restaurants that are offering their customers premium roast and ground coffee. Yet “the powerhouse behind the British workforce – instant coffee – is still a major force in the market place”. Freeman comments: “There’s a massive sector of our economy, including small to medium-sized businesses, manufacturing and catering establishments, for whom instant coffee continues to tick all the right boxes.

hot beverages “It has the convenience and economic price point that these businesses are looking for. With blends like Douwe Egberts Pure Gold and Continental Rich Roast they can now be sure of also offering a high quality coffee experience.” Pure Gold is made from a blend of finest quality beans. The company’s master blenders roast the beans to a medium level, brew the coffee in the best conditions and then freeze dry it to lock in the flavour and aroma. Says Freeman: “Pure Gold delivers a smooth and well-balanced flavour suitable for drinking at any time of day. “Rich Roast is also made from fine quality beans, but they are roasted to a darker level to deliver a full-flavoured strong coffee with a slightly spicy finish. It is only available in the out-of-home market.”

Italian parent Lavazza Coffee UK, based in Uxbridge, is part of a Turinbased company that exports to 190 countries. Its major label, Qualita Rossa, accounts for around 60% of the supplier’s UK volume and it is the biggest selling branded sku in roast & ground coffee in the UK (Nielsen June 2012), says David Smart, senior national account manager, who has recently added cash & carry/wholesale responsibility to his duties in the retail multiple channel. “We are a very strong brand and have achieved excellent growth in recent years,” he says. To increase its patronage even further, Lavazza UK is spending £2m this year on marketing, taking in press, poster and underground advertising. “We also display at big events around the country,” says Smart, “including London Fashion Week and Taste of Edinburgh. This all helps to engage consumers in the art of coffee making. “We are also the official coffee at the Wimbledon tennis fortnight.” The company’s coffee – mainly sourced from countries in South America – comes in 250g packs, says Smart, who refers to its great value in this size with the rest of the trade using 227g, or even 200g, bags.


• Cash & Carry Management • October 2012

In addition to being stocked by major cash & carries, including Booker, Bestway and Dhamecha, the brand can be found in independent outlets, restaurants and pub chains.

Quality and variety Wendy Christensen, head of standard products at Nestlé Professional, giving her views as to how the trade should handle coffee, says: “It stands to reason that improving the quality and variety of your offering is key to unlocking sales for C&C/wholesalers. “However, it’s just as important to understand the differing needs of the different channels and make sure you’re catering to their specific needs, both in terms of formats and solutions.” She points out that while a 750g tin of Nescafé Original might be suitable for an independent café or small workplace, at the opposite end of the scale, a hotel has multiple consumption points that come into operation at various times of the day, each requiring a different solution – either self-serve at breakfast, stick packs in the room or a machine at the bar. “Understanding consumer dynamics and needs is fundamental to growing the coffee category. It all boils down to encouraging more consumers to drink more cups, more often. “To achieve this, consumers need to be provided with what they need, when they want it. Quality, convenience and customisation play a role in meeting these needs.” Nestlé Professional recently unveiled the launch of Nescafé Alegria A510, a table The Alegria A510 coffee machine top coffee system using from Nestlé Professional. a micro-grind product capable of delivering five café style coffees – cappuccino, latté macchiato, Americano, lungo and Espresso – all from the same coffee cartridge, “making the average cost per cup significantly less than other small machines”, according to Christensen, who adds that the Alegria 510 is suitable for a wide range of small outlets. Another innovation from the company is Nescafé Gold Blend Even Richer Taste.

For further information: Douwe Egberts (0844) 257 1840 Lavazza Coffee UK (01895) 209 750 Nestlé Professional (0800) 742 842 North West Tea 0151-703 0044 Taylors of Harrogate (01423) 814008 Tetley GB 020-8338 4000



Some things are even better together. Caravan and Sweet Charity are merging. Because by joining forces we can help even more grocery people facing hardship. So to help them and the 4,500 people we currently support, let’s all work together. For more information visit, or call our dedicated helpline on 08088 02 11 22.

From factory to store we’re your charity. Caravan is the trading name of the National Grocers Benevolent Fund, A Registered Charity Reg. No 1095897 (England & Wales) & SCO39255 (Scotland). A company limited by guarantee, registered in England and Wales No 4620683. Sweet Charity is the working name of The Confectioners Benevolent Fund. A Registered Charity Reg. No 1109578 & SCO38665 (Scotland). A company limited by guarantee registered in England and Wales No 5425493.


Forget the economy! According to AC Nielsen (week ended 14/7/12) the total biscuits category is valued at £2.3bn (+3%). Of this, the everyday segment is worth £322m (up 5%), healthier £446m (6% higher), everyday treats £350m (+5%), chocolate biscuit bars £337m (-4.5%) and special treats £166m (-4.1%). Although the total biscuit market is in growth, the economic climate has left consumers with less disposable income, says Mark Sugden, director, market strategy & planning at United Biscuits UK. He adds, however: “There is an upside for both C&C/wholesalers and retailers. Although consumers continue to be cautious about where and how they spend their money, biscuits are still seen as inexpensive pick-me-ups or treats. For convenience retailers and C&C/wholesalers, this means that the snacking and treat occasions are still a big opportunity.” Sugden points out that McVitie’s Chocolate Digestive price-marked packs are the leading PMPs in convenience and independents. “So it’s extremely important for C&C/wholesalers not only to offer value for money but also to stock a range of products that meet a variety of consumer needs – from everyday biscuits to indulgent ones and sharing formats through to on-the-go pack sizes. “Price-marked packs are a great way to demonstrate value for money and increase the rate of sale as they appeal to consumers who are watching their pennies. In fact, 44% of consumers are more likely to purchase an item on impulse when price-marked (him! CTP 2011).” Sugden says that UB’s go ahead! Crispy Fruit Slices, Bakes, Yogurt Breaks and McVitie’s Medley bars all come with a 55p price mark and in counter-top display units. He adds that ‘healthier’ styles are also an important part of the C&C/wholesaler’s range. “Although consumer demand for indulgent biscuits has increased, healthy eating and healthier alternatives continue to present significant sales opportunities for C&C/wholesalers. In response, UB has invested significantly to improve the nutritional content of its products by reducing saturated fat or removing artificial colours and MSG. “Between 2005 and 2011, we reduced the saturated fat content of some of our top-selling biscuits brands, including McVitie’s Digestives, which resulted in an 80% reduction in saturated fat.” In line with the growing ‘healthier’ trend, go ahead! has launched a selection to bring new consumers who like chocolate into the healthier biscuits sub-category. New Chocolate Thins are light crispy biscuit slices with a milk chocolate topping. The range is available in orange, strawberry and cherry in a 5 x 35.5g multipack (rsp £2.69) as well as an orange handy


• Cash & Carry Management • October 2012

Entering the ‘healthier’ biscuits segment.

pack (68p) or a 55p price-marked pack. Each slice contains 73 calories. Sugden comments that, as consumers have become increasingly short of time, easy-to-eat, on-the-go biscuits, such as the McVite’s Medley bar – an alternative to a chocolate bar – are gaining in popularity. He adds that since its launch, it has become a £13m brand. “C&C/wholesalers should make sure they stock a range of products available in counter display units such as go ahead! and McVitie’s Medley bars, which retailers can then display alongside confectionery, cereal bars or, alternatively, at the till point to prompt impulse purchases.” New to the McVitie’s Medley range is a double chocolate variant that includes HobNobs biscuit chunks combined with cereals, dark chocolate chips and milk chocolate. The rsp is 55p for a 40g bar and £1.95 for a multipack of six 30g bars. Sugden comments: “Over the past year, we have also seen a resurgence in the popularity of savoury biscuits. Jacob’s Crackers are showing particularly strong growth (plus 17%) – outstanding for such a mature brand. “Savoury biscuits are now recognised as being extremely versatile across different meal and eating occasions. They can be included as part of a lunchbox, enjoyed with friends at a dinner party with cheese or be part of a daily snacking occasion. “The launch of products such as Jacob’s Oddities (in March) responds to this growing trend for savoury biscuits as snacks as they’re available in individual handypacks, as opposed to a roll-pack, as well as sharing bags and multipacks.” The product is described as ‘an irresistibly light and crispy, baked savoury biscuit snack’, in a mix of different shapes and with no artificial colours or flavours. The two flavours are cheese and smoky bacon.



New pack design supported with: £1m Media campaign Sponsorship of hit TV series ‘Person of Interest’ delivering on average 1.9m viewers per week Bahlsen supports sustainable cocoa farming with

UTZ certified cocoa

Stock up NOW!


biscuits For Halloween Burton’s Biscuit Company has unveiled its Halloween range, hoping to emulate – or exceed – last year’s returns when sales during this period rose by 146% to more than £1m. The new selection builds on the Cadbury Fingers and Cadbury Animals biscuits, allowing retailers to meet consumer demand for ‘trick or treat’ and parties. There are four themed skus: Cadbury Halloween Mini Fingers (110g, 5 x 22g) rsp £1.69. Toffee Apple Fingers (125g) £1.89. Spooky Shapes (132g, 6 x 22g) £1.69. Vampire Mallows (150g) £1.59. All four skus have Halloween themed packaging in the Cadbury purple and Halloween green. The biscuits are baked in the UK by Burton’s under licence from Cadbury UK.

• • • •

Data: IRI major multiples, 12 weeks to 26/11/11.

Burton’s Biscuit Company has also unveiled the launch of Cadbury Mini Animals Dinosaurs. The latest addition to the £8m Cadbury Animals range features a multipack of 6 x 22g mini bags, supplied in outers of eight, with an rsp of £1.69. David Costello, category and activation controller, says: “The launch comes at a time when children’s mini-size biscuits are growing at 7.1% – more than twice the rate of the total biscuit market. “People love the unique taste and characteristics of Cadbury Animals. Mini Animals Dinosaurs provide an opportunity to extend the usage occasion to tea-time and appeal to a broader age range.” The new selection is aimed at a variety of eating occasions, including lunchbox, on the go and as an in-thehome treat for mums and children. Cadbury Mini Animals Dinosaurs are being supported by consumer PR, sampling and in-store PoS and merchandising. The Animals range featured in a major relaunch last year, including new pack designs, logo and animal characters. In the last 12 months, Cadbury Mini Animals have added £1.4m in value and increased household penetration by half a million – an 11% year-on-year increase (Kantar week ended 8/7/12).


• Cash & Carry Management • October 2012

Other biscuits in the Burton’s range include Maryland Cookies, Jammie Dodgers and Wagon Wheels. Data: IRI year to 7/7/12 unless shown.

Heavyweight relaunch Bahlsen has relaunched its flagship Choco Leibniz brand to strengthen its position in the £166m special treats segment and drive incremental sales. The activity includes a ‘premium and contemporary’ new look, a long-term commitment to sustainable cocoa cultivation, a £1m marketing campaign, instore promotions and trade support. Hitting shelves this month, the restyled Choco Leibniz range includes: Dark Chocolate, Milk Chocolate, Orange Milk Chocolate and Double Choc variants. The new packs show premium and indulgent images of the continental butter biscuits – with a new cocoa pod mould design – and swirls of chocolate that cover each biscuit. The strapline is: ‘More chocolate than a biscuit’. The Hanover-based manufacturer is also taking an important step with regards to the issue of sustainability, starting to switch to 100% UTZ certified cocoa. Choco Leibniz is one of the first Bahlsen products to make the move to the mass balance system, and the new pack design now features the UTZ certified logo prominently on the front. Both existing and prospective buyers said they approved of the new packaging and biscuit mould design. They added they would be more likely to buy the biscuits because they had a premium and contemporary feel, the stand-out on shelf was improved, the flavour variants in the range could be more easily differentiated and the UTZ certified cocoa logo and message was clearly communicated. Bahlsen’s £1m marketing budget includes sponsorship of the new prime time Channel 5 series Person of Interest. Advertising will feature in the credits across all 22 episodes of the US series, as well as in trailers and in online video and web content. The supplier is also rolling out consumer PR and press advertising to complement the sponsorship. Marketing manager Jon Dance says: “Bahlsen Choco Leibniz has been a hugely successful brand in the UK for almost 40 years. “As part of our commercial growth strategy, the brand is undergoing one of the most exciting evolutions in its history. The redesign and fully integrated marketing campaign will ensure the brand not only continues to be bought by existing loyal consumers but, importantly, also becomes more attractive and aspirational to many more new buyers.” He continues: “The relaunch activity for Choco Leibniz presents a significant incremental sales opportunity for retailers. To help and encourage the trade to take full advantage we have developed a range of support activities,

6619 Belvita trade ad Cash and Carry.pdf













Belvita Breakfast biscuits launched in Jan 2010 and is now worth £39m, growing at 108% vs PY.1

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

61% of all Belvita volume sales have been incremental to Healthy biscuits.2

They contain a selection of vitamins and minerals and have no colours or preservatives.

1 Nielsen Scantrack MAT data to w.e. 19.05.12. 2Nielsen Homescan Total GB 2011 vs 2010. *Belvita Breakfast regularly release carbohydrates over 4 hours to help keep you going all morning, enjoy as part of a balanced breakfast to include a piece of fruit and a portion of dairy. Proven in several clinical studies.


biscuits encourage them to make the most of biscuits by educating their customers on the opportunities available to them. We at Kraft Foods work closely with distributors to help them maximise their own opportunities via great displays and promotional material.” She highlights the company’s Belvita Breakfast – now worth £40.3m – which recently won a major trade award. “New product development has seen the launch of Yogurt Crunch and Strawberry Burst Duo Crunch, in addition to the popular Milk & Cereal variant. “We’ve been transforming the way the UK wakes up, with one in six consumers in the UK trying Belvita Breakfast and more than half making a repeat purchase. The biscuits can be a delicious part of a balanced breakfast for busy mornings or in the workplace, making them a great option for both independent retailers and out-of-home operators.”

including display material, price promotions and deals.” Choco Leibniz (rsp £1.89) has annual sales of £9.6m – up 2.2%. Each outer contains 12 x 125g packs. Bahlsen has five manufacturing sites in Europe, annual turnover in excess of £400m and exports to more than 80 countries.

Appeal of snacking

Kraft Foods’ other major biscuit brand is Oreo, which is valued at £1.3bn. In the UK alone, it is worth £19m and is growing at 3.5%. Nash comments: “Oreo is a real family favourite for morning and afternoon snacking and in the lunchbox. “This year we launched Oreo 2 Biscuit Snack Packs, a handy new format to fit snugly in lunchboxes and available in both Original and Chocolate Creme styles. For the awayfrom-home market, Oreo is also available in two-pack, sixpack and mini-tub formats. It should be a core brand for C&C/wholesalers.” A leading Kraft savoury biscuit is Ritz, recommended as a lunchtime and late afternoon snack. Last year a mini version was launched, increasing volume of the brand, which is worth £13.5m. Mini Ritz is available in 6 x 25g multipacks. The Ritz brand has been supported this year by an outdoor campaign, including bus-side advertising. Says Nash: “Snacks and treats don’t have to be sweet; Mini Ritz can be a great alternative to crisps in the lunchbox.” She adds: “For out-of-home customers, cash & carry/ wholesalers should be sure to offer an onthe-go biscuit solution to cater for every customer need. “Belvita Breakfast and Oreo are both available in formats that are ideal for customers throughout the day.”

“Snacking biscuits is a great growth area for cash & carry/wholesalers,” says Susan Nash, Kraft Foods UK trade communications manager. “Getting the right offering is key to unlocking incremental sales.” She reminds stockists that the products sell throughout the day in retail outlets, with different types of biscuit appealing to consumers at different times of the day – “but they specially appeal as morning and early afternoon snacks”. Nash adds that C&C/wholesalers should stock a range of leading lines to cover all-day opportunities. There are three main segments of the market. In retail, the largest is sweet biscuits, which account for 63% of the category, although the healthy and savoury sectors are the fastest growing – at 6.3% and 9.5% respectively. “Biscuits can be a real opportunity for retailers and out-ofhome operators. They offer huge variety and are represented in the store cupboard, in the workplace, on the go and throughout the day, making them an essential snacking range for distributors.” Nash says: “Cash & carry/wholesalers can Worldwide sales of £1.3bn. support retailers and


• Cash & Carry Management • October 2012

All data: AC Nielsen.

biscuits For Christmas

Cadbury Fabulous Fingers Tin (330g) rsp £6.99. Building on the launch of the product into a £4m brand**, this too is a new sku for Christmas. The biscuits come in a gold tin. Big Carton of Fingers (500g) rsp £5. A giant carton with four trays. Cadbury Festive Friends (200g) rsp £1.79. Says a company spokesman: “Christmas wouldn’t be the same without these family favourite shaped biscuits, half coated in Cadbury milk chocolate. Festive Friends was the leading novelty biscuit carton at Christmas 2011*. Mini Fingers Novelty Tube (125g) rsp £1.79. The tube is filled with Cadbury Mini Fingers. Mini Animals Novelty Tube (125g) rsp £1.79. The tube contains Cadbury Mini Animals and is described as ‘perfect for little stockings’. Each sku has festive themed packaging or is presented in a collectable tin. The Cadbury Biscuit assortment tins and cartons come in a shelf-ready case for ease of merchandising.

Burton’s Biscuit Company has released its Cadbury Biscuits Christmas range, which it says will help retailers maximise sales over the festive period, valued at £91m*. It claims to have been been the fastest-growing biscuit manufacturer for the past two Christmases, with 39% growth followed by a 28% value uplift. The latest seasonal selection includes the following skus: Silver Assortment Tin (380g) rsp £10.99. The biscuits are coated in Cadbury Dairy Milk chocolate and presented in a collectable silver and purple tin. Occasions Assortment Carton (290g and 580g) rsps £5.49 and £8.99. The No.1 biscuit assortment carton at Christmas last year**, Occasions comprises family favourite biscuits coated in milk chocolate. Mini Fingers Barrel Tin (500g) rsp £10.99. This new Christmas sku is packed with mini Cadbury Fingers and has a festive design. Fingers Assortment Carton (375g) rsp £5.49. It contains trays of Cadbury Milk Fingers, Dream Fingers and Bournville Fingers.

• •

• •

* IRI special events market 16 weeks to 25/12/11. ** IRI MAT to 10 August 2012.

For further information:

Bahlsen Biscuit Co (01753) 889822 Burton’s Biscuit Company (01727) 899700 Kraft Foods (08702) 400861 United Biscuits UK (020-8324 5000


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• Cash & Carry Management • October 2012

employment law

Entitled to favourable treatment HR expert Cate Ritchie (below) answers your questions on employment law.


What is a “reasonable adjustment” for disabled employees?


The equality at work legislation imposes a duty on the employer to accommodate the needs of disabled people in the workplace. It means that, once the employer knows that an employee has or might have a disability, they must take such steps as are reasonable in all circumstances (for example, changes to premises or to working times and practices, or modifying equipment and providing special computer software) in order to prevent a disabled person from being placed at a substantial disadvantage in comparison with non-disabled employees. The employer is not expected to make adjustments that are too expensive or that are not practicable. Jobcentre Plus (through its Disability Employment Advisers and Access to Work Scheme) and other agencies can offer support and advice on the issue. Remember: an employer is entitled to treat disabled workers and employees more favourably than those who are not disabled.

Q: Q:

We have received a request from one of our employees to take a two-week holiday next week. He has told me that he has already booked it and paid for it. Our policy states that notice is required to be provided and we can refuse any request. Where do I stand if I refuse his request?

We have suspended an employee (pending investigation) for an act of gross misconduct. He has pre-booked holiday in a week’s time and I don’t think we will be able to complete the investigation by then. Does he remain on suspension during his holiday?

A: A:

An employee who wishes to take annual leave is required to give notice equal to twice the length of the holiday that he or she wishes to take. As the employee has not given the required notice, you would be in a position to refuse it or you may apply your discretion and authorise it on this occasion. Should you decide to refuse the holiday request, it would be advisable to confirm this in writing to the employee and explain that, should he fail to report for work, the absence will be investigated and disciplinary action may be taken. Be mindful that if you were to approve the holiday under the circumstances, this may set a precedent for other requests in the future!

EMPLOYMENT LAW UPDATE 1 October 2012 National Minimum Wage increase The rates that now apply are: Over 21s – £6.19 an hour (from £6.08) 18-20 year olds – £3.98 an hour (no change) 16-17 year olds – £3.68 an hour (no change) Apprentices under the age of 19 or in first year of training – £2.65 (from £2.60)

• • • •

It is possible to lift an employee’s suspension in situations such as this, which would allow the employee’s holiday entitlement to be used up. This would ensure that you are limiting your liability to pay accrued holiday should your investigations result in a disciplinary hearing and subsequent dismissal. In order to lift the suspension, you should write to confirm the period of time that the suspension is lifted. You should be cautious and aware that, over this period of annual leave, the restrictions that apply during suspension (ie that the employee cannot contact colleagues or come into the office, etc) cannot be applied. However, you should remind the employee that the investigations will continue regardless of the holiday, and if he or she does anything in that time that could be considered as evidence (such as intimidating a witness or attempting to destroy data), it can still be considered for the purposes of the disciplinary. If you would like advice on any of the issues mentioned above, or wish to talk to Cate about any other HR issue, contact her at or phone (0792) 121 3890.

Cash & Carry Management

• October 2012 • 61

products & promotions Fundraiser

In south-east only IMPERIAL TOBACCO – Davidoff is a new premium cigarette which is being launched in the south-east only. Restricting it to this part of the country reflects the fact that 41% of cigarette sales in this region come from premium brands, whereas in the country as a whole it is just 23%. Davidoff, made from ‘a quality American blend’ of tobacco, comes in two styles: full flavour (orange pack) and smooth (blue). Rsp for the pack of 10 is £7.75, giving the retailer 8% profit on return. Using fingertip control to slide open the pack, smokers will find one of several illustrations inside. Head of consumer marketing, Amy Kiss said: “Premium brands generate around £290m each year for retailers in the south-east region (internal data).” Davidoff is also being launched in around 30 other countries, some of which, like the UK, will be introducing it in areas where premium cigarettes are most popular. Tel: Imperial Tobacco (0117) 963 6636.

Diversifying WALL’S – The meat products supplier, part of Kerry Foods, has entered the hot breakfast snacking category with two lines: Breakfast Muffin and Sausage Bap (155g), both microwaveable. The rsp is £1.99. The Breakfast Muffin comes with a sausage, egg and cheese slice while the Sausage Bap includes a sachet of tomato ketchup. The breakfast category grew by 4% last year (Kantar Worldpanel November 2011). Tel: Wall’s (01784) 430777.


GRACE FOODS UK – The Caribbean food and drink supplier has pledged to raise up to £10,000 over the next 12 months for the African Caribbean Leukaemia Trust (ACLT). This is the second charity which will have benefited from the company’s ‘Penny Pledge’ campaign, launched last year. One penny from every case of Grace-branded products sold by its subsidiary, Enco Products, is donated to a designated charity. The first year of the initiative resulted in £10,000 being raised for the Jamaica Basic Schools Foundation. “Retailers know that every case of our products they buy sees money going to a worthwhile cause,” said Ryan Mack, Grace Foods UK managing director. Tel: Enco Products (01707) 322332.

Nappy NPD PROCTER & GAMBLE – The company has begun targeted product development for its Pampers range, supported by media and in-store investment. The latest raft of innovation is across its premium tier lines. Pampers New Baby nappies are said to provide the brand’s best-ever protection for newborn skin. The product includes a ‘wetness indicator’ to help mums gauge when to change their baby’s nappy. Pampers Sensitive Wipes Maximum Care is claimed to be the brand’s ‘most resistant, yet softest, wipe yet’. It is 20% thicker and removes more mess with each wipe. Pampers Active Fit now includes a Size 3+ style. It is the range’s driest and best fitting nappy and has also been further improved with a new ultra-soft back sheet. It will feature in tv, press and digital ad campaigns alongside an in-store support package. Tel: Procter & Gamble (0800) 597 3388.

• Cash & Carry Management • October 2012

Lavaly taste FARMHOUSE FARE – The Lovetub ‘indulgent’ pudding brand has launched Chocolate Orange Volcano. It consists of chocolate orange sponge and chocolate sauce, topped with chocolate orange curls and popping candy. The new variant expands the 100g range, which currently comprises Sticky Toffee Pudding and Chocolate Pudding. The desserts can be microwaved in 30 seconds and be eaten straight from the tub. “Chocolate and orange is a mouthwatering flavour combination that’s always popular with dessert lovers,” said group marketing director Nigel Parrott. Lovetub Chocolate Orange Volcano comes in outers of eight (rsp £1.29). Tel: Farmhouse Fare (01200) 453110.

X Factor tickets PEPSICO/BRITVIC – The pair have combined to create an on-pack promotion for The X Factor live final. On bags of Walkers Extra Crunchy and the Pepsi range, consumers can win tickets to the show’s finale in December. Evrim Sen, marketing director, Walkers Sharing, said: “There is a profitable opportunity for retailers in the cross-promotion of crisps and soft drinks. They are currently consumed together 57% of the time, but only bought together in 13% of cases. “Walkers Extra Crunchy is already a firm favourite on sharing occasions, worth £22m (Nielsen total coverage 28/7/12), and Pepsi is the fastest growing top 10 drinks brand (Kantar Worldpanel year to 8/2/11).” Tel: PepsiCo (0118) 930 6666. Tel: Britvic (0845) 758 1781.

products & promotions Salt & pepper

Soup additions

KELLOGG’S – Pringles has introduced a salt & pepper flavour to the convenience sector. While the four core skus (original, salt & vinegar, sour cream & onion and Texas bbq) remain ‘vitally important’, the extended range of flavours ‘presents a huge opportunity’. Fiachra Moloney, marketing manager UK & Ireland, said: “With high profile television sponsorship specifically highlighting the extended range over the coming months, Pringles flavours will be at the forefront of consumers’ minds.” Tel: Kellogg’s (0800) 626066.

HEINZ – Two new flavours of the Classic Soup Special Edition range have been launched: Cream of Mushroom with a Hint of Garlic and Cream of Chicken with a Dash of White Wine. The aim is to attract new, younger consumers to the category. The launch campaign includes PR and digital activity as well as instore sampling. Television chef James Tanner is creating recipes that use the two core ingredients featured in each of the varieties. The soups come in 400g cans. Tel: HJ Heinz 020-8573 7757.

Mini cigars IMPERIAL TOBACCO – Two new Montecristo Mini cigars are now available in selected areas of the south. The variants, Full Flavour (Red) and Smooth (Blue), come in embossed tins, each containing 10 Cuban blend cigars. The rsp is £4.38. There are also price-marked packs at £3.99 while stocks last. Red and Blue Montecristo Minis will be available in over 8,000 outlets in what is termed ‘The International Brand Zone’. The traditional Montecristo mini cigars (yellow pack), which were launched in 2001, are sold through the distributor Hunters & Frankau. Tel: Imperial Tobacco (0117) 963 6636.

‘Indulgent’ GENERAL MILLS – Haagen-Dazs has introduced a Meringue & Raspberry Fondant variety to its Sweet Sensations ice cream range. Based on the brand’s Strawberry Cheesecake, the new line is a mixture of vanilla ice cream, meringue pieces and raspberry sauce. It joins the existing styles of Chocolat Fondant and Creme Brulée. Rsp for the 100ml twin pack is £3.29 and for the single £1.89. Marketing director Ed Culf commented: “The patented technology which gives Sweet Sensations its innovative ‘heart’ of sauce continues to create real excitement and buzz among consumers. “Secret Sensations has been developed to capitalise on the indulgent treat moments that more and more consumers are seeking as they opt to stay in rather than eat out during the financial turndown. “Ice cream is currently the third largest category for in-home treats after chocolate and chilled desserts.” Tel: General Mills (01895) 201367.

New flavours RED BULL – The leading energy drink brand will next year introduce its first flavour extensions in the UK with Red Edition (cranberry), Silver Edition (lime) and Blue Edition (blueberry). The launch, scheduled for the first quarter, will help drive the sports & energy segment by addressing the main barrier of taste, bringing in new shoppers to the category. Strategy & planning manager Gavin Lissimore said that Red Bull Special Editions have already been successful in Europe. In Germany, 22 million cans were sold in just six months. Rsps will be the same as for Red Bull 250ml and Sugarfree 250ml. Tel: Red Bull Co 020-7434 5670.

Redesign JTI – The tobacco supplier has launched a new pack design for the UK’s No.1 value cigarette brand, Sterling. Available across all variants and in all channels, the restyled pack brings a more modern look to the brand. It features a brushed steel effect running diagonally across the pack and includes a ‘Made in the UK’ stamp on the side of the pack and a message on the back thanking customers for choosing Sterling. The pack is being introduced in two phases. This month it is available carrying the ‘New design, same taste’ message on the OPF (overlay printed film) which will be removed after two months to fully reveal the new pack design. Jeremy Blackburn, head of communications, said: “With over one in 10 cigarettes sold in the UK carrying the Sterling name, it is important that the brand continues to evolve in order to remain relevant to existing adult smokers.” Tel: JTI (0800) 163503. Data: Nielsen MarketTrack July 2012.

Cash & Carry Management

• October 2012 • 63

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Cash and Carry Management  

October 2012

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October 2012