Retail Express - 19 April 2022

TARGETING DODGY CIGS • Retail Express reveals new track-and-trace operator using ‘groundbreaking’ tool to combat illicit tobacco P3 19 APRIL-2 MAY 2022 STRICTLY FOR TRADE USERS ONLY

Nicotine products are for over 18s only What is VERIFY? VERIFY provides retailers with display materials, support and training on how to avoid selling tobacco, vapour and oral nicotine products to under 18s and ensure compliance with the law.

Ensure VERIFY is visible in your shop Complete VERIFY online training to learn about your responsibilities

More details at

www.vapermarket.co.uk/verify

PRODUCT RECALL

RETAIL CRIME

COFFEE TO GO

How Ferrero’s recent product scare is affecting confectionery sales in stores

The stark figures linking the Covid-19 pandemic and attacks on shop workers

Top retailers share tips on how you can boost sales and profits with this drinks category

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The Retail Success Handbook: Sustainability Everything you need to know to run a more sustainable, profitable shop

The Retail Success A MUST-READ FOR PROFIT-DRIVEN INDEPENDENT RETAILERS

Only £4.99

Handbook

SUSTAINABILITY

On sale 3 May Everything you need to know to run a more sustainable, profitable shop

Packed with information and insight on how retailers new to sustainability can get started, as well as offering inspiration for those already on their sustainability journey and looking for the next step.

This issue is a must-read for the convenience channel. Including: How shoppers’ views are evolving and how you can respond The independent retailers who excel at making their store more sustainable How to connect with your local community, including partnering with other businesses How to fund your sustainability initiatives, and ensure they are profitable Store-wide guide to the most sustainable products and packaging solutions

This edition is bursting with ideas – big and small – that will help you run a more sustainable and profitable business.

DON’T MISS OUT Order your copy from your magazine wholesaler today or contact us on 020 3871 6490

FASCIA GUIDE

The symbol groups helping you tackle rising costs 16

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FOCUS ON FASCIAS

Fascia guide

19 APRIL-2 MAY 2022 STRICTLY FOR TRADE USERS ONLY

four fascia SS TEAM talks to to help THE RETAIL EXPRE what they’re doing tion groups to find out and HFSS legisla retailers with pricing

FOCUS ON

FASCIAS

TARGETING DODGY CIGS • Retail Express reveals new track-and-trace operator using ‘groundbreaking’ tool to combat illicit tobacco P3

PRODUCT RECALL

RETAIL CRIME

COFFEE TO GO

How Ferrero’s recent product scare is affecting confectionery sales in stores

The stark figures linking the Covid-19 pandemic and attacks on shop workers

Top retailers share tips on how you can boost sales and profits with this drinks category

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P4

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been stores – they have systems, group and providing structures and pro- researching one of the its inforbe the thing that THIS year could be retailers with regulartraining for retail- could for them. it most challenging updates and wages and vides the following pages, mation as well as business ers, with rising Over with – Par- initiatives, for store energy bills coincidingthat is four different groups and strategy advice One Stop and a cost-of-living crisis ca- fetts, Bestway, what they are replanning and re�itting. to realso spoken – explain reducing the spending have Spar We �ight customers. within each to help retailers pacity of their upcoming doing rising costs and pre- tailers working an underAdditionally, the fascia group to get will force against HFSS this year.

HFSS legislation of what impact their to re- pare for on help- standing them durthousands of retailers and Their initiatives symbol has had on in terms ranging with rising costs times, both think the layout, stores to ing retailers promotions on ing these and their from promotion in their and of their business We also ask ant prod- range ensure non-compli gondo- products, rebate rewards overall well-being. on plans ucts aren’t placed own-label products. prepara- the groups what their the till. for la ends and at the When it comes to are to support retailers of these HFSS legislation – rest of 2022. the Throughout all for tion will need fascia that may affect all changes, retailers group, with rules support. A fascia

our say

Alex Yau, acting editor

The fight against illicit tobacco intensifies STARK figures released by the Tobacco Manufacturers’ Association this month revealed that, despite all the disruption over the past two years, the pandemic did very little to curb the sale of illicit tobacco causing damage to the trade of independent retailers like yourselves.

As regular readers will know, the scourge of illicit tobacco is a problem that is consistently on our radar, as demonstrated by the Stubbing Out Illicit campaign featured in previous issues. HMRC’s track-and-trace (T&T) legislation has been a subject covered frequently across the campaign in the past. Although we’ve shared details of a new rumoured database using T&T to clamp down on dodgy packs, until now we were unsure exactly how it would work.

I’m excited to reveal that Swiss firm Dentsu Tracking will THIS IS A be spearheading the project PROGRESSIVE after it was announced it would be taking over from De La Rue as STEP FORWARD IN operator. As expected, they were FIGHTING ILLICIT eager to give us all the details on how they intend to use the “ground-breaking” new tool to ramp up the fight against illicit tobacco. Full details of which can be found on page 3.

I know this by no means will fully eradicate the issue in the short term, but I have to admit it’s a progressive step forward. This will help provide the police and local trading standards with comprehensive resources they’ve never had before. The tool is expected to go live in July, and I can assure you we will do our utmost to provide updates on how it’s working. I do always enjoy it when illegal sellers have another reason to be kept on their toes, and this is doing exactly that. @retailexpress betterRetailing.com facebook.com/betterRetailing Acting editor Alex Yau @AlexYau_ 020 7689 3358

Editor – news Megan Humphrey @MeganHumphrey_ 020 7689 3357

Features writer Jasper Hart 020 7689 3384 @JasperAHHart

News reporter Noemi Distefano @NoemiDistefano_ 07597 588955 Deputy insight & advertorial editor Tamara Birch @TamaraBirchNT 020 7689 3361

Features editor Charles Whitting @CharlieWhittin1 020 7689 3350 Senior features writer Priyanka Jethwa @PriyankaJethwa_ 020 7689 3355

Magazines reporter Tim Murray tim.murray@ newtrade.co.uk

Production editor Ryan Cooper 020 7689 3354

Production coordinator Chris Gardner 020 7689 3368

Account manager Marie Dickens 020 7689 3366

Sub editor Jim Findlay 020 7689 3373

Head of marketing Kate Daw 020 7689 3363

Sub editor Robin Jarossi

Senior account director Charlotte Jesson 020 7689 3389

Management accountant Abigayle Sylvane 020 7689 3383

Head of design Anne-Claire Pickard 020 7689 3391 Designer Jody Cooke 020 7689 3380

Head of commercial Natalie Reeve 020 7689 3372

01

Salmonella scare forces recall of Ferrero’s Kinder products NOEMI DISTEFANO

RETAILERS are losing hundreds of pounds worth of chocolate sales following a recall of a number of Ferrero’s popular products.

On 2 April, the supplier issued a notice urging stores to remove a number of Kinder lines from shelves due to a salmonella scare. The recall impacted Kinder Surprise,

02

Kinder Mini Eggs, Kinder Egg Hunt Kit and Kinder Schoko-Bons.

As Retail Express went to print, Joe Tyldesley, of One Stop Romiley in Stockport, claimed he was not given any clarity on when availability would return.

“We are waiting to hear back from Kinder,” he said.

“We would lose around £150. but we do have similar prod-

Camelot challenge

CAMELOT will take the Gambling Commission to court after it had lost its bid for the fourth National Lottery license to rival Allwyn Entertainment.

The announcement that Allwyn would take over the licence on 1 February 2024

was made last month. The company’s chief executive of�icer, Nigel Railton, said: “We are launching a legal challenge today in our capacity as an applicant for the Fourth Licence because we �irmly believe that the Gambling Commission has got this decision badly wrong.”

ucts we can sell.”

However, Sophie Towers, of Kibble Bank One Stop in Burnley, said the problem was out of her control. “We have to just deal with it,” she said. “People just buy anything when it comes to these kinds of products. It’s not something they have to have, but rather a luxury item.”

03

A Ferrero spokesperson said: “Since the beginning of the recall, we have been in close contact with our retail partners and have supported them in implementing the necessary steps to ensure the maximum level of food safety. We want to sincerely apologise to all our consumers and retail partners.”

Tobacco increase

BRITISH American Tobacco has joined Imperial and JTI in announcing a number of price increases for cigarettes and hand-rolling tobacco.

In a letter sent to stores last month, and seen by Retail Express, the company con�irmed cigarettes will in-

crease by 40p from 27 April.

Hand-rolling tobacco will rise by 70p per 30g pack and £1.15 per 50g pack.

The retail price of Pall Mall KS Shift XL, Rothmans KS Blue XL, Rothmans SK Silver Green and Pall Mall KS Shift Blue will not change.

Editor in chief Louise Banham @LouiseBanham

Managing director Parin Gohil 020 7689 3388 Head of digital Luthfa Begum 07909 254 949

Business delivery manager Ifzal Afzal 020 7689 3382

Subscribe online at newtrade.co.uk/our-products/ print/retail-express. 1 year subscription: UK £65; overseas (EU) £75; overseas (non-EU) £85 Retail Express is printed and distributed by News UK at Broxbourne and delivered to news retailers free by their newspaper wholesaler.

Published by: Newtrade Media Limited, 11 Angel Gate, City Road, London, EC1V 2SD; Phone: 020 7689 0600

The five biggest stories this fortnight

42,281

For the full story, go to betterRetailing.com and search ‘Camelot’

04

HFSS confusion

SYMBOL groups are still being left in the dark over upcoming high fat, sugar and salt (HFSS) restrictions, despite the government publishing its “longawaited guidance”.

The guidance failed to remove confusion on whether symbols will be exempt from

certain promotional or location restrictions from October.

Trade bodies and retailers have previously criticised the government for failing to provide clarity on these terms.

Non-compliant stores will receive an improvement notice, escalating to potential �ines.

For the full story, go to betterRetailing.com and search ‘tobacco’

05

Sustainable success

THE UK’s best independent retailers have overcome the challenges of the pandemic to successfully make their stores more sustainable.

Analysis of the Independent Achievers Academy’s Top 100 stores in the UK and Ireland revealed sustain-

ability was a key priority for shops. Initiatives introduced included community fridges, installing more energy ef�icient equipment, partnering up with wastereduction organisations and donating surplus products to food banks.

Audit Bureau of Circulations July 2020 to June 2021 average net circulation per issue

Retail Express’ publisher, Newtrade Media, cares about the environment.

Reproduction or transmission in part or whole of any item from Retail Express may only be undertaken with the prior written agreement of the Editor. Contributions are welcome and are included in part or whole at the sole discretion of the editor.

Newtrade Media Limited accepts no responsibility for submitted material. Every possible care is taken to ensure the accuracy of information. No warranty for goods or services described is implied.

For the full story, go to betterRetailing.com and search ‘HFSS’

For the full story, go to betterRetailing.com and search ‘IAA’

@retailexpress facebook.com/betterRetailing

19 APRIL-2 MAY 2022 betterRetailing.com

alex.yau@newtrade.co.uk 020 7689 3358

New track-and-trace operator to head up illicit tobacco tool ALEX YAU A “GROUNDBREAKING” tool in the latest �ightback against illicit tobacco is to be spearheaded by new track-and-trace (T&T) operator Dentsu Tracking, Retail Express can reveal.

The Swiss �irm has been appointed by HMRC to replace De La Rue as the operator of the tobacco system from July on a �ive-year contract. The �irm has previously operated similar T&T systems for other governments across Europe.

Launched in May 2019, T&T requires businesses involved in the supply of cigarettes and hand-rolling tobacco to have an economic operator identi�ier code (EOID).

Tobacco products transported and sold through the UK will have a barcode with the EOID. Any code that isn’t recognised by T&T will generate a warning that the product could be illegitimate.

As part of its appointment, Dentsu will operate a database of registered suppliers, with the aim of giving police forces and trading standards authorities more resources to detect and clamp down on dodgy tobacco sellers.

The database will provide detailed information on the invoicing, ordering and payments of registered products. A “mobile inspection tool” will also be provided to authorities,

allowing them to check the legitimacy of products while in their hands.

Combined, these methods will provide real-time alerts to the police if tobacco is potentially being sold by an illegal trader. The database will only include information about registered suppliers, but not those who are unregistered.

Retail Express �irst heard about the database at the National Business Crime Conference in Nottingham six months ago.

At the time, information about its release date could not be given, but it was described by City of London superintendent Patrick Holdaway as “groundbreaking”.

Commenting on this latest development, Holdaway told Retail Express: “There is already a system in place, but in our experience, the capability is limited. The new system will work much better and we hope that it can be used to reduce crimes involving tobacco.

“We know that much of the stolen stock is sold back through retailers. If they know that the stock can be identi�ied as stolen through T&T, they won’t risk trying to sell it. Of course, we also need trading standards to follow up and be seen to be checking the product.”

When asked how its database will help retailers avoid illicit stock, Dentsu Tracking director of gov-

express yourself “Over the past two years, we have seen own-label and branded products shortages. We are trying to work with what we have in stock aross the store. We have own-label products across every food and nonfood section, and all categories have been impacted in terms of availability since the start of the pandemic, and over the past month with the start of the war in Ukraine.”

Judith Mercer, Spar Greenway, Belfast

03

GOOD WEEK OWN LABEL: Booker is to complete the rollout of the Jack’s own-label range by the end of August. The wholesaler will replace almost 600 products available across Happy Shopper, Discover the Choice and Farm Fresh. It will not replace the 97 existing Euro Shopper lines.

For the full story, go to betterRetailing.com and search ‘Booker’ WELLBEING: Jisp has partnered with GroceryAid to help raise awareness of support services available to independent retailers. Jisp managing director Ilann Hepworth said: “GroceryAid provides a wide range of emotional financial and practical support for independent retailers, employees and their partners, so we are delighted that this initiative will get the GroceryAid message to retailers and their employees.”

BAD WEEK ernment business Jan Hoffman told Retail Express the company “brings a wealth of experience and expertise in supply chain control”. “We are thrilled to team up with HMRC in their �ight against the illicit tobacco trade, delivering a T&T system tailored to the speci�ics of the UK market,” Hoffman added.

“The system provides HMRC with a high level of government control over the tobacco supply chain, allowing enforcement bodies to detect the different forms of illicit trade and curb the circulation of noncompliant products.”

The latest �igures from the Tobacco Manufacturers Association revealed that illicit tobacco was still a major problem in the UK.

the column where you can make your voice heard

In a poll of more than 12,000 smokers in November and December, 71% said they had purchased tobacco that avoided UK tax.

A �ifth of smokers claimed to have bought non-plain-pack cigarettes, while 19% said they had bought tobacco from social media – compared with 4% before the pandemic.

Commenting on how the �irm plans to work with Dentsu, Imperial’s anti-illicit trade manager, James Hall, said: “Imperial is working closely with HMRC and Dentsu to ensure the system is ready and all of the existing data is correctly migrated to aid a smooth transition from the existing provider to the new system.

“The system, alongside other anti-illicit measures, work together to help authorities identify legitimate products along their journey, as well as illicit products as and when they appear within the supply chain.

“The new system should help tackle illicit products.

But, as with most things, there is not one solution to every problem, and there is more work to be done on the ground to track, monitor and take action against criminal activity that undermines traders who are operating responsibly.”

Philip Morris Limited, JTI and British American Tobacco were unable to provide comments by the time Retail Express went to press.

NEWSTRADE: The collapse of YM Group and its three printing sites across Yorkshire disrupted the distribution of TV Choice magazine. YM Group’s printing firms in Scarborough, York and Wakefield were responsible for printing weekly and monthly magazines supplements for DMG group, Bauer Media and Reach.

For the full story, go to betterRetailing.com and search ‘YM Group’ WHOLESALE: AF Blakemore has become the wholesale partner of rapid delivery firm Gorillas. The company offers a similar service to Getir and Deliveroo, who have been described as major competition to independent retailers.

An employee at one of Gorillas’s London branches told Retail Express Blakemore supplied the majority of its ambient goods.

For the full story, go to betterRetailing.com and search ‘Blakemore’

Are own-label sales increasing as customers face more cost pressures?

“We have seen a 5% increase in own-label products over the past three months. I would say own-label sales are improving overall, especially across the non-food category. Some cases include food lines of which we are seeing a branded shortage. For instance, Walkers crisps are becoming very difficult to find, therefore customers are more inclined to choose an alternative. Improved quality on packaging also has an influence.”

Seelan Thambirajah, multi-site retailer

Do you have an issue to discuss with other retailers? Call 020 7689 3358 or email alex.yau@newtrade.co.uk

“There has always been a demand for own-label in my store because that’s the way it has always been in our community. I think I can see a new trend with more customers thinking about switching to cheaper products, at least for certain lines. Customers are turning away from brands when it comes to non-food products, such as household lines and pet food.”

Ken Singh, BB Nevison Superstore, Pontefract, West Yorkshire

Ken Singh

NEWS

04

19 APRIL-2 MAY 2022 betterRetailing.com

Gov’t highlights Covid-19 crime link ALEX YAU

A NEW government report has reinforced the “harsh reality” that local shops were major victims of crime during the pandemic.

The Home Office’s Commercial Victimisation Survey, launched last month, found nearly half of small shops and wholesalers across England and Wales reported an increase in assault between

April 2020 and March 2021.

The survey of 2,284 businesses also highlighted the varying levels of abuse faced by small shop owners during the year. Sixty-one per cent of businesses reported facing verbal assaults.

It also highlighted more severe levels of abuse, with 22% experiencing threats or intimidation, while 13% were physically attacked without injury. All those sur-

veyed believed the instances of abuse were related to the pandemic.

Commenting on the findings, ACS chief executive James Lowman urged more stores to contact the police, as less than a third in the survey reported crimes to the authorities. “We know from our own research that criminals repeatedly targeted convenience stores throughout the course of the pandemic,

and these findings from the Home Office have confirmed this harsh reality,” he said.

“However, we also know that retailers have been investing in crime-prevention measures in their businesses to send a clear message to perpetrators that these incidents will not be tolerated.

“The survey also confirms that retailers and the police are not working closely together enough. Many crimes

go unreported, and when they are, the response from the police is mixed. We all need to

redouble our efforts to share information and take action to tackle crime.”

PMP focus drops SUPERMARKETS are moving away from £1, £2 and £3 price-marked packs (PMPs), in response to inflationary pressures affecting the cost of goods.

In data for the 12 weeks to 20 March, Kantar said the proportion of grocers selling

products at “round pound” PMPs had dropped annually from 18.2% to 15.9%. The figures revealed the first annual decline in grocery shopping trips for 12 months.

For the full story, go to betterRetailing.com and search ‘Kantar’

BROKEN BEER PACKS CONTINUE WHOLESALERS have reported “widespread” issues with broken beer packs, despite suppliers such as Budweiser Brewing Group pledging to fix similar issues that occurred more than six months ago. The issues can be linked back to a move to more sustainable packaging.

However, the transition by beer suppliers has led to reports of packs breaking more easily, causing higher risk of wastage and injury.

For the full story, go to betterRetailing.com and search ‘beer’

Russian vodka decline

For Tobacco Traders Only

SALES of Russian Standard vodka in convenience stores have fallen, after retailers boycotted the brand due to the Russian invasion of Ukraine.

The latest EPoS data from Retail Data Partnership showed the brand accounted for less than 3% of total vodka sales in March, compared with up to 4% of all vodka purchases in February.

Co-op and independent retailers notably chose to delist the brand from their stores to show solidarity with Ukraine.

PRODUCTS

06

WKD moves into energy market JASPER HART SHS Drinks is set to launch WKD X, a new energy drink-inspired sub-brand of its popular alcopop.

WKD X has a 7% ABV and contains caffeine, guarana and taurine. WKD X Blue and WKD X Gold are launching in single 500ml cans in standard and £3.29 pricemarked formats.

It will be available to retailers in May in cases of 12. Its launch comes as energy drinks are the fastest-growing segment of the soft drinks category, with consumption heavily skewed towards 18-to-30-year-olds.

SHS Drinks intends to target Gen Z consumers who

have grown up with energy drinks and are driving their growth. WKD has had a 36% sales growth in two years.

Alison Gray, head of WKD at SHS Drinks, said: “Consumers are already well versed in mixing alcoholic drinks with energy drinks – what WKD X delivers is the convenience of a pre-mixed format from a respected brand consumers know and love. For depot managers and convenience retailers keen to focus on where incremental RTD category growth will come from, WKD X marks the spot.”

The launch will be backed with a media campaign including social media and in�luencer activity.

Weetabix brings back A lighter McVitie’s Rich Tea biscuit On the Go £1 PMPs WEETABIX is bringing back its £1 price-marked pack (PMP) range of 250ml One The Go drinks due to popular demand.

The limited-edition bottles are available to convenience and wholesale now across the brand’s Strawberry, Chocolate, Vanilla, Banana and Caffé Latte varieties.

They are designed to drive impulse purchases and bring incremental shoppers to the chilled breakfast drinks category.

Their relaunch will be accompanied by Weetabix’s �ield sales teams visiting more than 1,000 UK convenience stores to encourage distribution of the range.

According to the supplier,

the entire On the Go range is HFSS-compliant.

FRIESLANDCAMPINA has announced a slew of packaging updates across its Yazoo and Chocomel brands as part of its sustainability commitments.

All bottles in the Yazoo core range are now made from 100% rPET, as part of Yazoo’s aim to make all of its packaging recyclable or reusable by 2025.

Next year, all on-the-go Yazoo bottles will feature a tethered cap to reduce lit-

tering as well as an updated sleeve-removal mechanic to make recycling easier.

Meanwhile, Chocomel has updated its 1l cartons to be made from 88% plantbased materials using Forest Stewardship Council (FSC)approved cardboard.

They are also fully recyclable. FrieslandCampina intends all Chocomel lines to use Tetra Pak by the end of this year.

Yazoo and Chocomel packaging updates

PLADIS UK&I has launched McVitie’s Rich Tea Delights, a lighter version of its Rich Tea biscuits.

The new addition to the £31m Rich Tea range has 30% less sugar than the original variety, with 38 calories per biscuit. Packaging features cues to highlight these credentials.

Rich Tea Delights will

sit outside of upcoming regulation on the promotion of HFSS products, meaning their in-store position can be used to signpost the biscuit �ixture at end-of-aisle.

They are available now across convenience and wholesale with an RRP of £1.59. Packaging is recyclable through Pladis’ partnership with Terracycle.

Birds Eye’s Green Cuisine sausages BIRDS Eye is launching Meat-Free Cumberland Style Sausages as part of its Green Cuisine meat alternative range.

The new sausages are a revamped launch of the supplier’s Green Cuisine Meat-Free Sausages. They will be available to convenience and wholesalers soon with an RRP of £2.50, having launched in Sainsbury’s.

Their launch comes as the alternative protein market is forecast to become 11% of the overall protein market by 2035, and 9.6% of the UK total population has bought Green Cuisine products this year.

As a result, the Green Cuisine range has grown by 31.3% annually, and by more than 300% compared to 2019 sales.

19 APRIL-2 MAY 2022 betterRetailing.com

Full-sugar Old Jamaica returns OLD Jamaica is bringing back its original full-sugar recipe permanently, available to independent retailers and Home Bargains nationwide.

This marks the �irst time Old Jamaica’s original ginger beer recipe, which has 15g of sugar per 100ml, has been available since it disappeared from shelves in 2018. The supplier said it aims to capitalise during summer events such as the Queen’s Platinum Jubilee, Glastonbury and the FIFA World Cup. It is available in a 330ml can with an RRP of 88p, or a six-pack with an RRP of £4.50. There are also 500ml

and 2l bottles with respective RRPs of £1.20 and £2.50.

Levi Roots bottles move to clear plastic

NICHOLS PLC has announced that it is introducing fully recyclable clear plastic bottles across its Levi Roots Caribbean Crush range, along with updated labelling.

The supplier said the move from green to clear bottles would help consumers locate the products on shelf, as well as highlight their recyclability.

The new 500ml clear bottles are available to convenience and wholesale now, with clear 2l bottles set to launch on 1 May. The new packaging comes as Levi Roots soft drinks are experiencing 21% annual growth in value sales within impulse, outperforming the �lavoured carbonates sector by 14%.

Brothers Cider to sponsor Glastonbury BROTHERS Cider is the of�icial cider brand of this year’s Glastonbury Festival.

This marks the second year of the of�icial partnership agreement between the supplier and the festival.

As part of the partnership, Brothers will give away 10 pairs of Glastonbury tickets as well as thousands of other prizes through an on-pack promotion.

An additional pair of tickets is up for grabs via a social media competition.

Brothers’ new Festival Apple Cider variety will be available, alongside its Toffee Apple and Wild Fruit �lavours, among others.

Glastonbury takes place between 22 and 26 June.

Headline acts include Paul McCartney, Billie Eilish and Kendrick Lamar.

High Fat Sugar Salt (HFSS) legislation is coming*, and we are here to help

Look out for this logo

HFSS. We’ve got it covered.

If you have any questions about HFSS, or Newtrade Media products, please call the team on 020 7689 3363

*

Visit betterRetailing.com/HFSS

HFSS restrictions to come into force in October 2022

in any of our products to find the latest information, insight and advice.

#IAA22

TOP 100

INDEPENDENT LOCAL SHOPS ANNOUNCED

We are thrilled to share the Independent Achievers Academy (IAA) has published its annual Top 100, a list of local news and convenience retailers who are aspiring for success – and achieving it The Top 100 represents stores that are delivering brilliant standards, offering fantastic service and creating memorable experiences for their shoppers. All while juggling the many challenges that the convenience retail sector currently faces.

The Top 100 is decided by Newtrade Media’s expert team following rigorous, independent assessments to determine who qualifies for this widely respected and much-desired badge of success. These independent assessments entail a:

Mystery shop and audit to assess customer experience, ease of shop, breadth of range, merchandising standards, availability levels and innovation.

Digital review to understand how many consumers are being reached, engagement levels with customers and the impact of each store’s online presence.

Video interview to evaluate the strength of processes in place in attracting customers, adhering to legislation, developing staff and operating sustainably.

We’re helping you get behind the numbers to understand what a Top 100 store looks like, the benchmark they’re setting for the industry and how this has changed in the past year.

Why not find out where your nearest Top 100 store is and visit them to see what you can learn?

WHO ARE THE IAA TOP 100?

Scan our QR code or head to betterRetailing.com/top-100 to discover who made the sought-after list, find out which retailers are driving the industry forward and learn who the new stars joining them are.

What is the Independent Achievers Academy (IAA)?

The Independent Achievers Academy (IAA) is a year-long learning and development programme that supports independent retailers with growing their sales and profits, by showing how small, measurable changes can make a big difference.

2021/22 UK & IRELAND

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INDEPENDENT RETAILER

IT’S ANYTHING BUT AVERAGE

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BY 1%

59% have a milkshake or slushy machine

BY 8%

43% TOP 100 93%

BY 5%

sell cut flowers or plants

IN NUMBERS

sell vaping products

87% offer home delivery or click & collect

50%

sell fruit and veg loose or in recyclable/ compostable packaging

44%

BY 15%

BY 8%

BY 22%

offer recycling facilities for customers

PRODUCTS

10

Casillero adds Sauvignon Blanc CONCHA y Toro is adding to its Casillero del Diablo wine brand with the launch of a premium Sauvignon Blanc as part of its Reserva Especial range.

The brand currently ranks number four in the UK’s top wine brands and is the second-largest white wine brand.

It is also experiencing value growth of 3.8%, which makes it the fastest growing among the top �ive wine brands in the UK. The Reserva Especial Sauvignon Blanc follows the launch of its Spanish Tempranillo in March 2021.

It is available at an RRP

of £9, making it a premium, trade-up option, and is available via Booker and Bestway, as well as Co-op and other symbol groups.

At the new variety’s launch event, the supplier said the reason for launching this variety is because Sauvignon Blanc is worth 15% of the white wine category and is in growth.

Following this, the bestselling varieties in order are Pinot Grigio, Chardonnay, Malbec, Merlot, Shiraz, red blend, Cabernet Sauvignon, Tempranillo and white blend.

With Casillero Reserva Sauvignon Blanc the number-one Sauvignon Blanc in convenience, and the

top-selling Sauvignon Blanc outside of New Zealand, the supplier said the new wine

PLADIS UK&I is expanding its Carr’s Melts range with the addition of a new Italian Herbs variety.

The new �lavour’s launch comes as the £7.7m Carr’s Melts range is growing at 16% year on year.

It will be available soon to convenience and wholesale in 150g boxes, RRP £1.69, having launched in Tesco stores.

The supplier said retailers

can drive incremental sales through the new �lavour from shoppers looking for snacks to enjoy during social occasions, with 76% of consumers eating savoury biscuits at parties and social gatherings.

Pladis is supporting the new launch with a £2.5m ‘Crack on’ media campaign, consisting of social media, PR, sampling and summer experiences, including Pub in the Park.

BUDWEISER Brewing Group UK&I has announced it will launch Ukrainian beer brand Chernigivske across UK hospitality and retail.

All pro�its from sales of the beer will distributed among charitable organisations to support humanitarian relief efforts.

Anna Rudenko, marketing director for Chernigivske in Ukraine, said: “I am proud we can launch Chernigivske in the UK to support humanitarian relief. Chernigivske has been enjoyed by generations of Ukrainians.

“As a brewer, we can use our daily interactions with consumers to bring this beer to market and enable consumers to support humani-

tarian relief efforts.”

Chernigivske is available to stock now. Retailers interested in stocking the beer are encouraged to visit budweiserbrewinggroup.co.uk/ site/contact/enquiries.

INDEPENDENT snack supplier Burts has launched a new brand identity highlighting the use of local ingredients in its products.

The updated packaging showcases the supplier’s relationships with producers such as Quickes Cheese and Sotuh Devon Chilli Farm.

Burts is also launching a new limited-edition Prawn Cocktail variety, with packaging designed with charity partner the Royal National Lifeboat Institution. It will be available in 40g and 150g formats.

Other new launches include new Lentil Chips in Lightly Sea Salted, Sour Cream & Chive and Barbecue �lavours in 20g and 85g for-

mats, as well as Burts Ridges, ridge-cut chips in Reaper Chilli & Lime and Steak Surf & Turf varieties.

JASPER HART

acts as a trade-up option for customers looking to buy something more special.

Red Bull on-pack promo seeks interns RED Bull has launched a special limited-edition can as part of a recruitment drive put on by the Oracle Red Bull Formula 1 racing team.

The can features updated packaging including Red Bull cars and race drivers Max Verstappen and Sergio Pérez. It also features a QR code that customers can scan to take them to Red Bull’s website to begin applying for an internship.

Oracle Red Bull intends to capitalise on the growing popularity of F1 by offering a new summer internship programme that anyone can apply for, offering roles across communications,

operations, fan engagement, partnerships, hospitality, Red Bull relations and esports/gaming.

TEAPIGS has launched its �irst decaf tea variety.

The decaf tea, available in an English Breakfast �lavour, is aimed at young adult and young family consumers, who the supplier says are willing to spend more on caffeine-free teas.

Additionally, it comes in 100% plant-based packaging, and with every pack

sold, the supplier will donate to the Teapigs ethical scheme, which supports vulnerable young people in Rwanda, where Teapigs sources much of its tea.

Teapigs Decaf English Breakfast is available in packs of two, 15, 40 and 50 bags, as well as individually wrapped envelopes. A pack of 15 has an RRP of £3.99.

Pladis launches Carr’s Ukrainian beer launch Teapigs launches first decaf tea variety with charity drive Melts Italian Herbs

Limited-edition Embassy Signature IMPERIAL Tobacco has announced a May launch for new Embassy Signature Silver Edition cigarettes.

The new variety will be a limited-edition product available until the end of September. The supplier says it can offer smokers a premium experience at an affordable price.

It will have an RRP of £10.15 per pack of 20. Impe-

rial says it uses reducedsmoke-smell paper, making it ideal for smokers who want to limit the lingering odour of smoke on hands and clothes.

It also features a modernshaped �ilter and textured tipping paper, as well as resealable ‘fresh protect’ foil to maintain product freshness from the �irst cigarette to the last.

Burts rebrand comes Carabao goes big with new launches with 500ml format ENERGY drink brand Carabao is set to launch its �irstever 500ml PET bottle.

The format will be available in Carabao’s Original variety. The supplier has also switched the �lavour’s colour packaging from green to blue.

The supplier said it is �inalising agreements with several retailers to stock the new format, with it currently set to launch on 25 April in Poundland stores.

John Luck, chief marketing of�icer at Carabao UK&I, said: “At Carabao, we continually monitor the needs of our consumers and the category.

“Our latest research revealed that 87% of frequent energy drinkers would buy

a 500ml resealable bottled version of their favourite energy drink.”

19 APRIL-2 MAY 2022 betterRetailing.com

KP launches Flavour Kravers peanuts KP Snacks has launched KP Flavour Kravers, a new range of KP peanuts with �lavours not usually associated with the nuts category.

The new range is launching in Flame Grilled Steak, Smokin’ Paprika and Fiery Caribbean Jerk Sauce varieties, in 140g sharing packs with an RRP of £2.50.

KP Snacks said the launch aims to capitalise on evening sharing occasions, the largest consumption occasion within nuts and sharing, and taste, the leading crisps, snacks & nuts (CSN) category driver.

Jenny Blanco Barcia, marketing manager at KP Snacks, said: “We know that across

CSN, taste is the numberone category driver and our Flavour Kravers range has been created to bring bold new �lavours to the nuts segment.”

CONFECTIONERY wholesaler Hancocks has revealed a selection of new products, including a new novelty range from Crazy Candy Factory.

Part of the new range features the Double Duo Dunker, a double-ended fruit�lavoured lollipop with two sherbet dipping powders, offering four �lavours overall.

It has an RRP of £1.

Another sherbet and lollipop combination treat is Crazy Candy Factory’s Paint Splash Lollipops, which consists of a tub of sherbet accompanied by a dipping lollipop paintbrush, available with an RRP of £1.20 in Orange & Strawberry, Blue Raspberry & Green Apple and Cherry Cola varieties.

Hancocks is also stocking the new Sonic The Hedgehog packs from Pez, with an RRP of £1.75.

VALEO Snackfoods has announced it is developing a range of non-HFSS snacks, due to launch later this year.

The supplier’s Metcalfe’s popcorn brand is adjusting its Sea Salt, Cinema Sweet and Sweet n Salt Popcorn to ensure they are compliant with the incoming legislation.

Valeo is also adapting its range of Manomasa tortilla chips to make them HFSScompliant.

Russell Tanner, marketing director at Valeo Snackfoods, said: “We know consumers are increasingly looking for healthier snacking options, as two-thirds of consumers agree they try to limit the amount of fat, sugar or salt in their diet, but we also know

they don’t want to compromise on taste or �lavour.”

Pladis launches Mini Pipers campaign Cheddars Nibblies for wholesale PLADIS UK&I has launched a new, lighter format for its Jacob’s Mini Cheddars brand, Jacob’s Mini Cheddars Nibblies.

The new range contains 75 calories per portion and 30% less fat than original Mini Cheddars. They are available to convenience and wholesale in Cheddar & Smoked Paprika and Double Gloucester & Chive varieties.

Mini Cheddars Nibblies are available in 6x17g multipacks and 115g sharing bags, the latter of which have an RRP of £1.50.

The new launch comes as Mini Cheddars is one of the top 10 biggest brands in

crisps, according to Nielsen, with sales growing by 27% year on year.

BRITVIC has stopped supplying 600ml bottles across several of its soft drinks lines, Retail Express understands.

Documents shared by a wholesale source, and seen

by Retail Express, show size reductions across cases of 12 of the following products: 7Up Free Cherry, 7Up Free, Pepsi Max, Pepsi Max Raspberry, Pepsi Max Cherry, Pepsi Diet and Tango Orange.

A spokesperson at Britvic commented: “Our 600ml format offered shoppers 20% free and was price-marked to drive maximum engagement.

We maintained the same MRSP as our 500ml bottles, which have been available alongside this promotion.

We continually review our

ranges to ensure the best promotions and formats are available at the right times.”

Hancocks reveals new Britvic cuts back on 600ml bottles novelty sweet lines

Valeo Snackfoods’ non-HFSS moves

11

58 Gin rebrands as 58 and Co

LONDON-BASED spirits company 58 Gin has rebranded to 58 and Co following a complete overhaul of its product range and its attaining B-Corp certi�ication.

The distillery will build upon it being named UK Gin Producer of the Year in 2020 to bring new limited-edition spirits to market.

It is also expanding its core range with the addition of a Triple Distilled Vodka, created with 100% British wheat. It will sit alongside its premium London Dry, Apple & Hibiscus and Navy Strength Gins.

58 and Co will also update its premises with a front-ofhouse distillery shop counter and a spirit re�ill service.

PEPSICO has launched a marketing campaign for Pipers Crisps exclusive to wholesale and the on-trade, offering stockists the chance to win Red Letter Day vouchers.

The ‘Savour the Moment’ campaign is running now until 26 June and offers stockists the chance to win experience day vouchers worth £500 or £1,000 with the purchase of a promo-

tional Pipers case.

To enter, stockists can scan the QR code on the case or visit piperswinmoments.co.uk to complete an online form.

They will then �ind out instantly if they have won a Red Letter Day voucher. Businesses may enter a maximum of 10 times per week. The competition comes as Pipers is now the fastest-growing premium snack brand.

Cheeshapes get bigger packs STRINGS & Things has launched a bigger and better-value Cheeshapes pack to help families stretch their money.

Each Cheeshapes pack will now have four snack packs inside, rather than three, making them last longer.

This new development comes as cheese snacking is worth £235m and has been recruiting more shoppers into the category, showing 7.2% growth.

Currently, there are almost 12 million shoppers buying from the kids’ cheese snacking category.

Sarah Davies, Strings & Things marketing manager, said: “We believe these bigger packs offer great

value for parents looking for healthier options and variety for their kid’s lunchboxes, especially in the current economic climate.”

Cheeshapes is currently the most popular cheese snack brand in the UK.

Müller Milk rebrand highlights health MÜLLER Milk & Ingredients has relaunched its branded milk range to focus on health, recyclability of the packaging and responsible sourcing.

The new design highlights that the milk is fresh from one of Müller’s supplying farms in Britain.

Additionally, there is visible messaging to inform shoppers that the bottle is recyclable and contains at least 30% recycled material, as well as ‘high in protein’ and ‘100% natural’ claims.

The new design will be visible across Müller Milk, Müller Milk Organic, Müller Milk Extra, Müller Mini Milk, and will roll out across Müller Butter and Müller Cream in the coming months.

12

IAA #COMMUNITYSTARS

PRODUCTS

19 APRIL-2 MAY 2022 betterRetailing.com

Walkers to up non-HFSS sales non-HFSS range contains nearly half the salt of regular Walkers crisps while maintaining the taste through new ingredients which replace sodium.

Walkers is also reformulating Walkers Baked, Doritos Dippers and Popworks snacks, as well as planning to launch a healthier non-HFSS crisp range in the future.

Jason Richards, general manager of PepsiCo UK & Ireland said: “This is a signi�icant milestone in our long-term commitment to provide smart snacking choices, without compromising on taste. We’ve been making changes to our range over many years, but now

is the time for even bolder action. I’m con�ident that people up and down the

ONE Stop stores now have access to a new limitededition Coca-Cola variety, Coca-Cola Zero Sugar Intergalactic.

The new launch has a similar design to the supplier’s recent USA-exclusive limited-edition Starlight variety. It is available for One Stop suppliers as part of the symbol’s most recent promotional period at an RRP of 77p.

One Stop Mount Nod retailer Aman Uppal started stocking the �lavour at the beginning of April. “I knew about the success of Starlight in the US, so I made a conscious effort to order extra stock,” he said. “We sold over 100 cans on the �irst

day ,and more than 200 this week, so it’s going well.”

MARS Wrigley is making its �irst steps into the gummy category in the UK with new Skittles Squishy Cloudz.

Available now across grocery, convenience and discounters, Squishy Cloudz has launched in Fruits and Crazy Sours varieties in 94g and 70g tear-and-share bags.

The launch comes as Skittles was the fastest-growing brand in the fruity confections category in 2020.

Victoria Gell, brand director of Skittles, said: “Squishy Cloudz offers our customers the opportunity to achieve incremental sales within sugar confectionery and Mars Wrigley is supporting the ‘Squish the rainbow!’ campaign in store with col-

ourful and engaging PoS to drive trial.”

WORLD of Sweets has expanded its Bonds of London products with the launch of its Our Heritage range, which includes traditional British sweets with a modern twist.

Available in the range are the Bonds Liquorice Sticks, modernised with a yellow crunchy candy topping. They are available in Black and Red varieties with an RRP of 20p per stick.

World of Sweets has also launched a new Candy Cane range with watermelon, strawberry and bubblegum �lavours, with an RRP of 25p per stick. It encourages selling these products either individually or as part of a combined bag of treats.

The supplier has also

launched a Candy Floss Tub that combines layers of cherry, apple and watermelon �lavours, with an RRP of £1.99.

SEABROOK Crisps is continuing its partnership with Alton Towers for a �ifth year and is extending the offer to include Thorpe Park Resort.

The partnership includes an on-pack promotion, available now until September, offering shoppers two-for-one entry at either resort. It is running across a range of Seabrook Crinkle Cut multipacks and 70g £1 price-marked packs.

It comes as the Calbeeowned brand has grown by 32.2% year on year.

Seabrook crisps are now purchased by almost nine million UK households, an increase of 1.8 million since January 2021.

The supplier is supporting

the promotion with a marketing campaign including TV, digital and social media.

JASPER HART

The Independent Achievers Academy (IAA) joined JAMES STEAD, manager of Whites Calver and Calver Service Station in Hope Valley, Peak District, to uncover how he’s created a competitive local offering and a strong shop layout

KEY TAKEAWAYS 1

James uses his sales data to determine his shop layout, with each area divided into zones, including fresh food, food to go and alcohol.

Customers are also able to find linked purchases, boosting spend.

2

James works with 36 local suppliers, including four craft beer brands and a local cake business, helping to drive trade-up. Suppliers are split among team members, each of them managing five or six suppliers.

3

To encourage upsell and knowing many customers shop with their eyes, James merchandises a value and premium line, like a local product, together. For example, James has an artisan bakery next to his standard cakes.

JAMES’ TOP IDEA “Sales data helps to determine the right shop layout, but the key is watching the customer. We print receipts, and think about what else could have been picked up.”

Read the full coverage of James’ session by scanning the QR code or visiting betterRetailing.com/james-stead

PEPSICO intends to make lower-calorie or healthier products 50% of its Walkers sales by 2025, as it continues to redevelop its range.

Walkers will make an initial investment of £35m in the next three years to reformulate or launch new non-HFSS products, aiming for 30% of sales to come from non-HFSS snacks, with an additional 20% of sales to come from snacks sold in portions of 100 calories or less per packet.

The supplier has already made steps in this direction with the recent launch of Walkers 45% Less Salt. The

Intergalactic CocaCola available now

Bonds taps into sweet Heritage

country will enjoy these new products as much as their old favourites.”

Skittles gets into gummy sweets

Seabrook partners with Thorpe Park

We are the

Struggling to cope?

If you or someone you know has a newstrade connection and is finding life difficult, we may be able to help.

NewstrAid provides financial and emotional support to people who work or have worked in the sale and distribution of newspapers and magazines in the UK.

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FREE Helpline:

0800 917 8616 FREE Wellbeing/Emotional Support Helpline:

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www.newstraid.org.uk RN 1-2 page horizontal.indd 1

24/03/2022 12:47

C o v i d - 1 9 HARDSHIP FUND NFRN member hardship fund Help those that need it due to the Coronavirus outbreak

Together We can Achieve more!

Email: hardshipfund@nfrn.org.uk See website www.nfrnonline.com to download form Full T&Cs apply

OPINION

14 WIN £1,000 FOR YOUR STORE , YOUR STAFF OR YO UR COMMUNITY

RETAILER OPINION ON THIS FORTNIGHT’S HOT TOPICS

What do you think? Call Retail Express on 020 7689 3357 for the chance to be featured NISA: How will this wholesaler’s latest delivery fee affect you?

COMING UP IN THE 29 APRIL ISSUE OF RN

“THE fuel levy doubling from £4.88 to £9.77 is an absolute joke. More so when you consider that we already pay a surcharge on all goods that are delivered to us. Nisa already came under fire when it first announced the levy in February. It’s just another cost to bear alongside everything else right now.”

Food-to-go strategies: how to build a profitable food-to-go offer in your store

Anonymous retailer

“EVERYTHING is going up and something has to give. Nisa isn’t the only wholesaler putting its prices up. However, they have also moved their milk price increases from quarterly to monthly. When you look at this in comparison to other suppliers, it makes you question whether the fuel rise is right.”

Anonymous retailer

+

Security focus: how to make your store a safe place for customers and staff

Nisa isn’t the only one putting prices up

Pricewatch: see what other retailers are charging for babycare and boost your own profits

FARMING CRISIS: How frequently are milk prices going up?

At RN, our content is data-led and informed by those on the shop floor

3,451 retailers’ sales data analysed for every issue

69+ unique retailers spoken to every month

71% of RN’s news stories are exclusive

It doesn’t seem a lot, but it soon adds up

betterRetailing.com/subscribe

Mitz Patel, Meet & Deep News, Twickenham

“I’VE seen three increases from my dairy supplier, Freshways, since last December. Costs are continuing to creep up everywhere and I don’t think there is anything we can do. If we increase our costs, our customers will just shop elsewhere.”

Gaurave Sood, Neelam Post Office & Convenience, Uxbridge

PAPERS: How will Reach’s latest margin cuts affect sales?

“IT’S a disgrace. The Express said it’s because of tough trading conditions – what do they think is going on in stores? When publishers increase the price of newspapers, but choose to keep most of the increase to themselves, it’s greed.”

Arif Ahmed, Ahmed Newsagents, Coventry, West Midlands

“I’M worried this is going to happen to more newspapers. Nobody is happy, and the obvious concern is that this is Reach doing this and it has many other titles in its portfolio, so the move to below 20% margin could go even further. ” Jim Mitchell, HND agent, Carlton Colville, Suffolk

The move to below 20% margin could go further CRIME: How are you protecting yourself from incidents?

STAY INFORMED AND GET AHEAD WITH RN ORDER YOUR COPY from your magazine wholesaler today or contact Kate Daw on 020 7689 3363

“MEDINA has increased my milk by 3p. It’s a smart move because it doesn’t seem a lot, but it soon adds up. I don’t have much choice here. I need to pay it or find a cheaper supplier, which is hard at the moment when everyone’s costs are going up.”

We have the mobile numbers of local police

“WE have radios so we can communicate with local stores and police. We share information with them and get a better understanding of what’s going on. The police want to interact with us. It’s about finding the best way.

We also have the mobile numbers of local police officers.”

Dave Hiscutt, Londis Westham Road, Weymouth, Dorset

“WE make every store in the area aware, and we go above and beyond. All we can do is protect ourselves and other shops by working with them. Sometimes we’ll put it on Facebook and try to humiliate the offender or find them.”

Andrew Newton, Nisa Local Colley Gate, Halesowen, West Midlands

LETTERS

19 APRIL-2 MAY 2022 betterRetailing.com

15

BAY BASHIR

Letters may be edited

Belle Vue Convenience (Go Local), Middlesbrough

Delivering home delivery success

‘I’m looking at an exit plan due to rising costs’ RECENTLY I’ve been looking at options to have a commercial property expert look at my business and potentially lease it out to a supermarket.

I’m looking at my exit plan within the next year or two and wanted to get a good idea of the potential of my business.

The turnover of my two stores is £50,000, on average, per week, and have a good overall margin. I don’t want to lease my store just to anyone down the street. I want something lucrative and I know this would be quite likely with a supermarket.

One of the main reasons I’m looking at this is because

WIN £50-worth of Vuse stock

it’s become tough to run a business as an independent retailer now. Store owners are really feeling the pinch in terms of running their businesses due to a consistent wave of rising costs.

My milk and utility prices are increasing monthly.

There are ways to save

energy, but we can’t turn off everything. Equipment such as milk fridges always need to be on, otherwise you’ll have a load of wasted stock.

The costs are going to run into tens of thousands of pounds if the government doesn’t provide any support.

Anonymous retailer

WIN £50-worth of new Smirnoff

RETAIL Express has teamed up with BAT UK to give five retailers the chance to win £50-worth of Vuse stock when they complete a short survey about vapes in their stores.

BAT’s leading vape brand Vuse has continued to increase in popularity over the past year as adult consumers seek out alternatives to smoking.

DIAGEO is giving five Retail Express readers a chance to sample £50-worth of new Smirnoff Mango & Passionfruit Twist (37.5% ABV) each. With bold flavours designed to appeal during the summer, and on-shelf appeal, this flavoured vodka is a versatile option for the upcoming months.

TO ENTER

TO ENTER

Fill in your details at:

Fill in your details at:

This competition closes 31 May. Editor’s decision is final.

This competition closes 17 May. Editor’s decision is final.

betterRetailing.com/competitions

betterRetailing.com/competitions

WE introduced home delivery with Snappy Shopper about 10 weeks ago and it has really worked for us.

We started off bringing in around £500 a week, but success wasn’t going to happen overnight.

Since then, it’s rose to £1,000 a week and we’re now at £2,500 a week and still climbing.

I think we could bring in £150,000 Each issue, one of seven top in delivery sales this retailers shares advice to year. It’s great for us make your store magnificent because there are no extra overheads to accommodate.

And because four of our five stores are very close to each other, we can sell from those four shops, but centralise the delivery service itself from just one. This is maximising sales from the shops and, more importantly, it’s bringing new customers on board.

Two years ago, I would have loved to have gotten into delivery, but I didn’t have the skillset. But my son’s on board now, and that means he’s bringing younger eyes and ideas to the table. We also get such great information on these customers and what they’re buying, which is really helpful.

We went with Snappy Shopper and it’s been really positive. They’ve been a good partner and have been very supportive with good management, even though there is no face-to-face communication and it’s all done over the phone when you’re setting it up.

The entire order goes through their app – there’s a £3 delivery charge, which people are happy to pay – and it’s click and go, with the money going straight in our account.

We could take cash, but we’ve decided not to because it makes things simpler and safer for our delivery drivers.

Now all they have to worry about is making sure that they are handing goods over to people that are of the right age.

I’m doing things to train my team up on that account.

We don’t inflate our prices – they’re the same as they are in store, although we do charge an extra £1 for a pack of cigarettes. That’s made us very competitive because a lot of stores in the area have increased their prices. We’re also able to put promotions and offers on there. At the moment, we’re selling Roberto Cavalli Vodka at £20 for a litre. It’s usually £42, but we got a large volume of it for a good price.

And at £20 we’re still making a good margin on what is a great offer for customers.

Get in touch

@retailexpress betterRetailing.com facebook.com/betterRetailing alex.yau@newtrade.co.uk 020 7689 3357

16

FOCUS ON FASCIAS

Fascia guide THE RETAIL EXPRESS TEAM talks to four fascia groups to find out what they’re doing to help retailers with pricing and HFSS legislation

FOCUS ON

FASCIAS

THIS year could be one of the most challenging for retailers, with rising wages and energy bills coinciding with a cost-of-living crisis that is reducing the spending capacity of their customers.

Additionally, the upcoming HFSS legislation will force thousands of retailers to rethink the layout, ranging and promotion in their stores to ensure non-compliant products aren’t placed on gondola ends and at the till.

Throughout all of these changes, retailers will need support. A fascia group, with

its structures and systems, could be the thing that provides it for them.

Over the following pages, four different groups – Parfetts, Bestway, One Stop and Spar – explain what they are doing to help retailers �ight against rising costs and prepare for HFSS this year.

Their initiatives on helping retailers with rising costs range from promotions on products, rebate rewards and own-label products.

When it comes to preparation for the HFSS legislation – rules that may affect all fascia

group stores – they have been researching and providing retailers with regular information updates and training initiatives, as well as business and strategy advice for store replanning and re�itting.

We have also spoken to retailers working within each fascia group to get an understanding of what impact their symbol has had on them during these times, both in terms of their business and their overall well-being. We also ask the groups what their plans are to support retailers for the rest of 2022.

PAID FEATURE IN ASSOCIATION WITH PARFETTS

FACTS

19 APRIL-2 MAY 2022 betterRetailing.com

Average store size: 1,000sq ft

Cost of joining: £0

Number of members: 1,000+

Twitter: @Parfetts

17

Combatting rising costs

AG Parfetts

AG PARFETTS is helping tackle rising costs through three-weekly promotions and a free delivery service

WITH the ongoing challenges with rising costs, Parfetts plans to invest back into its business and its retailers. “As a result, there are no planned pricing changes, and we continue to offer the same low prices for all our customers,” says Steve Moore, head of retail at Parfetts.

Parfetts also has no joining or membership fees, and customers benefit from its free delivery and click & collect service, along with free leaflet distribution and marketing support. Retailers benefit from three-weekly

JOIN

promotion cycles with 17 retail club deep promotions and more than 1,000 three-weekly deals, helping to convey value. Additionally, Parfetts also offers weekly promotions, manager’s specials, individual supplier takeovers and re-sells that offer better margins to customers.

All Parfetts customers are allocated a dedicated RDA, who offers advice around different convenience store categories, new products, store development and of-

0161 429 0429

fering a core range. Parfetts also offers each store access to the wider store development team to ensure stores deliver the maximum possible performance. Customers also enjoy a free fascia, store development, merchandising advice and a free EPoS system.

parfetts.co.uk

Preparing for HFSS

Parfetts is reviewing the potential impact of the HFSS legislation and communicating this through its dedicated team of retail development advisors.

Parfetts is developing strategies to

NEW OFF-LICENCE FOCUSED SYMBOL GROUP

deliver HFSS-compliant store concepts in small- to medium-size layout forms.

Parfetts will have a fully tested plan should legislation change to include its stores. They are working with retailers to test its thinking and using its retailer forum to ensure its planning is robust.

Stores should also be replanned to deliver against key customer journeys while also ensuring customers can shop all key categories while still meeting any possible future legislation changes.

“Switching from Bargain Booze to The Local and Parfetts has seen my margin increase by 8% overnight”

Retailer viewpoint Parfull Kumar Go Local Extra Petersfield Drive, Baguley, Manchester

Haydn Hicks :: The Local :: Ulverston

DRINKS

TAILING RE

CONVENIENCE DRINKS RETAILER OF THE YEAR

FI

NA

“WE’VE been with Parfetts for the past five years.

Parfetts is competitive on price and its promotions were stronger than other symbol groups we looked at. We have an RDM who visits every three weeks to help us with the changing

offers and will let us know about any new launches – and is on hand to help with anything we have.

“With costs rising, Parfetts is putting new promotions on, which are a big help to communicating value. We buy products at a

cheaper price, and it gives us extra margin on them.

Every three weeks, our promotions change, and these make a difference because it drives footfall as shoppers are looking for cheap deals. Parfetts also do free leaflets to our area.”

ARDS AW

We have an RDM who visits every three weeks

02

2

Parfetts understands that any changes across the wider retail sector will have a ripple effect and that future legislation may also be passed that may affect its retailers. Parfetts will continue to monitor HFSS regulations closely and will ensure its retailers are kept fully informed.

L IS T 2

Drinks Retailing Finalist Convenience Store of the Year

For more info contact John O’Neill, Customer Development Manager Tel: 07717 300148 Email: John.ONeill@parfetts.co.uk

PAID FEATURE IN ASSOCIATION WITH BESTWAY RETAIL

18

FACTS

Average store size: 500sq ft to 5,000sq ft

Cost of joining: None for Costcutter or Best-one

Number of members: 3,500

Twitter: @RetailBestway

Combatting rising costs

Bestway Retail BESTWAY RETAIL supports its stores with bespoke business plans and personalised store leaflets

BESTWAY Retail works closely with its suppliers to drive efficiencies and keep its costs as stable as possible.

Retailers under the Bestway Retail fascia also have access to its nationwide network of cash and carry depots where they can find strong promotions, as well as ‘collect only’ and one-day deals. Retailers can also earn the same rebate rewards as they do for their delivered wholesale spend.

Retailers who join Bestway Retail under the Costcutter fascia have access to the Co-op own-label range,

JOIN

while Best-one retailers can access its extensive own-label range of 400 products, helping to emphasise value as consumer attitudes shift towards this.

To combat rising costs throughout the pandemic, Bestway Retail maintained its price-marked packs, enabling its retailers to make more margin.

Retailers also receive personalised store leaflets designed to boost footfall, drive loyalty among shoppers and find the best deals.

To help manage costs,

01904 232 505

Bestway Retail’s BDMs work in partnership with retailers to draw up bespoke business plans specifically designed to help drive sales and profit for each store.

New members also benefit from six weeks of ‘hypercare’, where they receive a weekly visit from their BDM.

bestwayretail.co.uk/recruitment

Preparing for HFSS Bestway Retail is on hand to offer advice, guidance and support ahead of the introduction of HFSS, ensuring that affected retailers are aware of the legislative changes and what it means to them.

BDMs and the Bestway Retail HFSS Working Group will run through the potential impact of HFSS to ensure that retailers are supported and that any transition needed is as seamless as possible.

Bestway Retail doubled the number of BDMs for its retailers to ensure they have unparalleled access to industry experts.

Bestway retailers receive more than 20 unbeatable shopper deals monthly, with case allocations that ensure retailers have availability throughout the promotional period.

Its teams continually review pack formats, new products and lead on trends to meet changing consumer tastes and to stay ahead of supply issues.

Retailer viewpoint

As an independent retailer, you need a Symbol and franchise partner that can help grow your footfall, sales and profits.

Costcutter and best-one retailers enjoy access to the Bestway Cash & Carry depot network with rebate rewards on qualifying purchases

Whatever your store. Whatever your shopper.

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Lewis Prager Best-one Preens, Wakefield

The BDM support was a massive drive for me “WE joined Bestway Retail in 2019 after buying the store in 2018 and the BDM support was a massive driver for me.

When I met with our BDM for the first time, we created a business plan straight away, went through the store and what they’d improve.

“The prices for retailers

from Bestway are strong and, unlike other wholesalers, we achieve good margin from them – even on promotion. There isn’t much Bestway Retail can do about energy costs, but there is a good rebate we receive when buying from Bestway Wholesale. The best thing is you

don’t have to jump through hoops to achieve it, it’s very achievable and it prides itself on that. Bestway Retail is trying to do more promotions and better pricing, and when driver shortages hit, it allowed us to earn our rebate on picking up at cash and carries.”

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PAID FEATURE IN ASSOCIATION WITH ONE STOP

19 APRIL-2 MAY 2022 betterRetailing.com

Average store size: 1,000sq ft

FACTS

Number of members: More than 250

19

Cost of joining: Weekly fee of £92 Twitter: @1stopfranchise

Combatting rising costs

One Stop ONE STOP is helping retailers convey value with its eye-catching promotions and own-label range

THROUGHOUT the pandemic, One Stop noticed bigger weekly shops were declining, and customers are now using a mix of retailers for more frequent and smaller shops. One Stop has also noticed customers are demanding better value and quality now more than ever.

With changes in legislation and rising business costs coming up in 2022, One Stop recognises that a good value proposition is vital to retain shoppers.

One Stop understands it needs to keep prices low and quality high to attract

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customers and drive sales and profitability for franchisees.

One Stop works closely with its retailers to make sure there is always eye-catching promotions and key products on the shelves. It has more than 500 products available on multibuy deals that attract a wide range of customers, as well as more than 400 ownlabel products.

These are not only providing customers with excellent-

01543 363 003

quality items at a great price but are also providing strong margins for franchisees.

Many One Stop retailers have expanded their business with delivery services, such as Deliveroo and Snappy Shopper, enabling them to reach customers outside their store catchment area, helping to drive sales.

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Franchise support One Stop’s Eat Street proposition offers its franchisees vending services, such as Costa Coffee, allowing them to become a destination shop, while keeping that convenience feel.

Franchisees also have access to market-leading promotions to ensure they’re always driving sales and profitability. One Stop provides a four-week promotion cycle that changes every two weeks.

One Stop also runs strong seasonal campaigns that drive increased footfall during busy trading periods, including fun and engaging campaigns that are seasonally themed, such as Easter, summer and Christmas.

One Stop provides its franchisees with a dedicated business development manager, who visits retailers at least every four weeks, along with its franchise action line so retailers feel seamlessly supported.

Retailer viewpoint Daniel Wilson

Want to start a franchise and need more information?

We’d love to have a chat with you

Owner of 14 One Stops in North Yorkshire

One Stop has been a big support “WE joined One Stop in 2015 and own 14 stores now. All our stores are trading well, and a lot of good information comes from One Stop.

“The planograms we receive from One Stop have been a big support. All your shelving is done by One Stop, so your products fit –

you get a regional development manager and ours has a lot of retail experience.

“With rising food costs, the good thing about being with One Stop is we follow its RRPs. We’re confident One Stop will be able to control costs and protect our margins. We receive a mar-

gin report every week, so I can see straight away the average margin across the business and of each store.

“We run One Stop promotions and they’re great value. The general pricing across our stores is strong, but a good promotion helps boost spend.”

Get in touch today 01543 363003

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PAID FEATURE IN ASSOCIATION WITH SPAR

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FACTS

Average store size: 1,700sq ft

Store numbers: 2,600

Average store turnover: £22,000 (excluding services & fuel)

Membership costs: Free for the first year

Combatting rising costs WHEN a retailer joins Spar, they gain access to a national multimillion-pound marketing programme, further enhanced locally by each wholesaler. The programme includes strong three-weekly and weekly promotional programmes, and marketleading, competitive seasonal deals, designed to drive footfall and sales.

To help with rising costs, Spar offers everyday lowprice programmes providing shoppers with ongoing value and price promises on their essentials and fresh produce, as well as modern

Spar To help tackle rising costs, SPAR has a vast own-label range and strong promotions

JOIN

Preparing for HFSS Spar has been very proactive in understanding the impact of HFSS on its independent retailers. Since January 2021, the symbol group has had teams looking at how the legislation will affect stores in terms of promotions, category management, Spar brand, product placement, marketing and communication.

With RDC partners, Spar has undertaken several trials in company-owned stores to understand how to deliver compliant store layouts and how to communicate to customers.

Spar has also been working with suppliers to understand which products are compliant, how to maximise promotions and alternative location strategies.

The Spar brand team have been reformulating products where it has no impact on eating quality so they comply with the new rules. Spar will be providing independent retailers with details of which products fall under the HFSS legislation to assist with their planning.

Rea

in-store theatre, online marketing materials, including seasonal PoS, and simple and easy-touse in-store promotional print solutions.

Spar retailers also benefit from the Spar own-label range, which has won nearly 100 food and drink awards over the past 12 months. Spar has expanded its ranges and developed strong relationships with local suppliers by working with more local butchers and bakeries. Spar also unveiled a new UK-wide brand position to celebrate

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the unique characteristic of Spar convenience stores.

The three pillars, value on your doorstep, nurture our neighbourhoods and passionate about local, aim to motivate shoppers and help them see how Spar is different to other convenience retail brands.

spar.co.uk/own-a-store

sons to join t h e

ily SPAR fam tailers of independent re

Retailer viewpoint Rahn Heer Derry Hill Stores (Spar), Calne, Wiltshire

We had updates about Storm Eunice, so we could prepare “WE joined Spar because of their professionalism, and offering to invest in us as a major symbol, they see the potential in your store. Spar also offered planning and merchandising for us. We receive daily emails about what’s new, and have regular BDM visits and calls.

We even had updates about Storm Eunice before it happened, so we could prepare.

“With rising costs, we’re anticipating Spar to support us in the coming weeks, as it’s bound to affect everybody. In this day and age, price is a big thing, but availability is a bigger factor than

Support to succeed

price. Getting the right products in place is the hardest thing. Things have changed.

But Spar has level of availability, which is great. Our next plan is opening a Post Office and increasing the store by half to keep it under 2,000sq ft so we avoid the upcoming HFSS legislation.”

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MOCHA

MEANS MARGINS

FASTEST GROWING CATEGORY 29% YOY* FASTEST GROWING ICED COFFEE BRAND* FASTEST GROWING £1 PRICE POINT*

*IRI Marketplace Data Symbols & Independents 52 week unit sales to 31st October 2021

CATEGORY ADVICE COFFEE TO GO

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19 APRIL-2 MAY 2022 betterRetailing.com

THE COFFEE OPPORTUNITY CHARLES WHITTING finds out what retailers should look for in a coffee machine, and how to build sales in chilled coffee and tea

CHOOSING A MACHINE WHEN choosing a coffee machine, there are many options for retailers to think about. Size is, of course, an important consideration, but even the smallest store can accommodate a coffee machine on its counter.

Consider the space you’re willing to dedicate to a coffee machine and work out what will fit best in that space.

Another important consideration is the coffee company itself. For many customers, the quality of the coffee or the familiarity of the brand will be a

big selling point, so retailers should consider whether brand recognition will be a deciding factor. Shisan Patel, from Jasp (Dps) in Birmingham, has two Nescafé machines, which he selected because they fitted the space he had available, but he would recommend retailers go for a Costa machine if their store has the footfall to generate sales.

“It’s the main brand people recognise,” he says. “It’s a bit of a go-to coffee, to be honest.

When we had a Tchibo, people

would ask for a Costa rather than a coffee. You have to sell a lot of cups per day with a Costa, so there’s a risk there, but if you’ve got the footfall that you can get from a high-street store, then Costa is number one.”

However, the coffee itself is only one part of the decisionmaking process. Retailers need to study the fine print of any contract they are thinking of signing. With some retailers stuck paying fees to companies that have since gone bust and thus can’t help with mainte-

nance, and others struggling to sell enough cups per day to meet the minimum requirement, retailers should be careful about what they’re signing.

Gaurave Sood, from Neelam Convenience Store & Post Office in Uxbridge, Middlesex, is considering buying a machine outright this summer so there will be no future costs down the line. “We don’t want to be tied with someone and then get left out in the open,” he says. “Something we’d look at is a My Coffee Station, where

there’s no cost incurred for us and it’s all profit shared.”

Hitesh Modi, on the other hand, has gone with Office Station for the coffee machine in his father-in-law’s Londis store in Chesham, Buckinghamshire.

They are charged £1.20 for every cup they sell and charge £1.65 themselves. “It means the margin we get is less, but there’s no stress,” he says.

“There’s no upfront payment and you only have to pay on

what you sell. You get a sense of security that if something goes wrong, it’s covered. They look after the servicing and everything.

“I would recommend that approach, especially with the current market. There are companies that rent the machine and you pay upfront and if they go bust, you still have to pay.

Why go for a three-year lease like that if you don’t know what’s going to happen?”

THE UK’S NO.1 CHILLED COFFEE *

Stock up now Find us in the chilled aisle. *Nielsen 26/02/22

CATEGORY ADVICE COFFEE TO GO

24

CHILLED COFFEE AND TEA A HOT coffee isn’t the only way people are getting caffeinated on the go, with a range of chilled coffee drinks now also available.

With summer on the way, it is likely that demand for a colder caffeinated drink will be on the rise, so retailers need to think about how they can build a strong chilled coffee offer.

“Part of the category’s popularity can be attributed to the fact it meets more than one consumer need – taste, hydration, an energy boost and satiety. It therefore naturally attracts a wider number of shoppers to the category as consumption is driven by different need states, at dif-

ferent times of day,” says Adam Hacking, head of beverages at Arla Foods.

Amy Burgess, senior trade communications manager at Coca-Cola Europacific Partners (CCEP), says the readyto-drink (RTD) coffee sector is worth more than £227m and has had a value growth of 37.5% “We know RTD coffee is particularly appealing when the sun is shining as people look for a refreshing pickme-up on the move or at home, and we expect this to be an even bigger opportunity this summer,” she says.

“RTD coffee can provide a little energy boost to increasingly busy consumers.”

POSITIONING AND PROMOTING COFFEE TO GO RETAILERS need to consider the customer journey when it comes to coffee to go. For those stores with a large food-togo offer, creating a dedicated area featuring all their ‘on the go’ machines and products can make it something of a destination for customers. However, other retailers might want to pursue the impulse opportunities of coffee and position their machine in a high visibility and high-footfall area, such as by the door or at the till.

“Coffee quality is seen as the quality of the retailer and represents hospitality,” says Tjerry Sanders, group category leader at Selecta. “You want to show off your brand to the consumer. Therefore, you should

position the coffee machine at the main points of sight or interaction for consumers. These are positions that receive the highest footfall – for example, entrances and exits.”

Given that many customers will make purchasing a coffee to go something of a morning or lunchtime habit, having a quality product makes return visits far more likely, presenting the chance for further sales. Retailers can also use free samples to get the word out there, and offer loyalty cards to encourage people to return again and again.

“The most useful activity to consider when promoting coffee are linked deals. Linked deals should be the first thing

retailers consider as they ensure the coffee offering is relevant throughout the day,” says Paul Dugdale, channel manager, coffee to go, at Lavazza. “For example, at breakfast time, retailers can create a deal whereby customers can purchase a coffee with a breakfast item for a discounted price. Loyalty cards also incentivise repeat customers.

“For example, at Lavazza, we offer loyalty cards specifically for coffee sales – helping to reward customer loyalty and drive repeat custom with a ‘buy eight, get one free’ mechanism.”

86799 Barista Retail Express Trade Ad.pdf

19 APRIL-2 MAY 2022 betterRetailing.com

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new products

Starbucks Multiserve Starbucks has launched two of its products in multipack formats. Starbucks Multiserve Caffè Latte and Starbucks Multiserve Caramel Macchiato are made from 100% Arabica coffee beans and are available in convenient, fully recyclable and ethically sourced 750ml packs.

Selecta’s SBUS Re-Imagine A new full self-service coffee corner with fresh milk, vegan milk, syrups, ice coffees and original coffee has been launched by Selecta. Coffees can be ordered from a digital screen and branded with the customer’s own signature.

Absolute Drinks Tea Machines Absolute Drinks has recently branched out into instant tea machines which serve Karak chai and Kashmiri pink tea with the Chaimaster range. These include the Chaimatic 4, Chaimatic 5 and Chaimatic bean to cup.

POSITIONING CHILLED COFFEE WITH Costa Coffee RTD almost doubling in value in the past 12 months and Starbucks chilled coffee adding more than £26m in incremental sales in 2021, retailers should consider focusing on big brands with their chilled coffee range.

However, regardless of the products they stock, retailers need to make sure they are prominently positioned in their fridges to provide a product people can buy and consume immediately.

“We would recommend stocking cold coffees such as Barista in the chiller, alongside soft drinks and other flavoured milks. With its competitive price, Barista really stands out on shelf and we’d suggest merchandising alongside other brands to give choice to customers and help the cold coffee section stand out,” says Gabriella Sudall, marketing manager for NPD at FrieslandCampina UK. This summer, retailers

might also want to consider moving beyond single-serve packs of chilled coffee and offering larger pack sizes as customers look for regular hydration and caffeination.

“With the appetite for the category thriving, there is an opportunity for RTD coffee to further evolve to reflect the wider variety of formats seen in the broader soft drinks category. For example, takehome, sharing and multipack formats,” says Arla Foods’ Adam Hacking.

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04/04/2022

17:12

CATEGORY ADVICE COFFEE TO GO

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COMPLEMENTARY SALES RETAILERS shouldn’t just be looking for sales of coffee from their machines.

As people are increasingly back on the move, accompanying food options should be stocked next to the machine and promoted to attract incremental sales, particularly at breakfast and lunchtime.

Deals connecting sandwiches, cake or pastries with your coffee can generate more sales and extra profit. Offer

options in the morning that will capture the breakfast-onthe move crowd, before moving to lunchtime deals later in the day.

“Stocking complementary categories alongside hot-beverages-to-go fixtures offers retailers the chance to increase spend by encouraging impulse purchases. Popular categories that work well together with hot drinks include morning goods and bakery items, both

of which are in growth,” says St Pierre’s commercial director, Chris McLaughlin. “Food to go – and therefore the hot drinks fixture – has become a key part of leisure activities over the past 18 months.

Journeys of all kinds are accompanied with a trip to the hot drinks fixture – not just the morning commute.”

The opportunity to generate incremental sales need not only apply to hot coffee to go.

Particularly in the summer, people look for products to accompany their chilled coffee as part of breakfast, lunch or a pick-me-up snack.

“We see Barista sell well when placed near other foodto-go products, such as chilled sandwiches, as it’s the ideal after-lunch pick-me-up. We’ve also seen it perform strongly when placed in retailer meal deals,” says FrieslandCampina’s Gabriella Sudall.

MAINTENANCE OF YOUR MACHINE REGARDLESS of the contract or deal that you arrange with your coffee machine supplier, there are still things that you and your team will need to look after yourselves to make sure the equipment functions properly and provides customers with the product they’re after.

Dirty or malfunctioning equipment will not just put customers off, but can bring

problems in the long-term, as it may cost you more in repairs if smaller problems aren’t nipped in the bud early.

“Cleanliness is the most essential maintenance issue when it comes to coffee machines,” says Selecta’s Tjerry Sanders. “If a machine gets dirty, it can cause a blockage resulting in poor coffee quality or the machine breaking. It is advised to keep your machine

clean and stick to its recommended service intervals.”

Setting out a cleaning rota and instilling the desire to keep the machine clean and in good working order among your staff is essential. Retailers should look at machine maintenance in the same way that they look at keeping the floors clean and the shelves full, and ensure there is training provided for staff.

cider

CATEGORY ADVICE DEPOSIT RETURN SCHEME

19 APRIL-2 MAY 2022 betterRetailing.com

WHAT’S THE LATEST ON SCOTLAND’S DEPOSIT RETURN SCHEME? JASPER HART explores retailer concerns ahead of Scotland’s deposit return scheme

DRS: WHAT WE KNOW SIX years after it was first announced and after two delays, Scotland’s deposit return scheme (DRS) is set to go live on 16 August 2023.

Despite the delay, Scotland’s circular economy minister, Lorna Slater, has maintained the target of achieving 90% collection rates by 2024, as well as announcing key milestones for the date.

These include launching a public awareness campaign in August 2022 (although Circularity Scotland, the company in charge of running the scheme, has told Retail Express the cam-

paign will launch six months before the scheme goes live), a rollout of voluntary return points for select retailers from November and the early launch of a community-run DRS on Orkney, also in November.

In brief, the DRS means retailers will need to charge a 20p deposit for every drinks container they sell and take back the empty containers for recycling against the refund of the deposit.

All single-use drinks containers made of PET plastic, metal and glass between 50ml and 3l will be part of the scheme, al-

though retailers have the right to refuse dirty, non-empty or non-intact containers. They can take part in the scheme with or without the aid of a reverse vending machine (RVM).

Retailers will also receive a handling fee per container. Although the scheme is still more than a year away, it will be one of the most significant pieces of legislation to affect the retail industry this century.

Naturally, there are concerns around retailers’ ability to process the containers, the handling fee and the frequency of collections.

HANDLING FEES MO Razzaq, national deputy vice president of The Fed and retailer at Premier Mo’s @ Blantyre in South Lanarkshire, has been an ardent advocate for the DRS, but has also fielded various shopkeeper reservations about the scheme.

Chief among these is the handling fee retailers will receive for processing containers. At The Fed’s recent Scottish Conference in Glasgow, RVM manufacturer Sielaff’s head of sales and business development, Zac Miller, said the handling fee

would probably range from 2.8p to 3.2p per container for retailers.

At the end of last year, Circularity Scotland announced the handling fee would be revealed in Q1 of this year, but has since told Retail Express details will be revealed this month, meaning many retailers are unable to prepare ahead of time and how it will affect the business.

At the time of writing, handling fees have not been announced, but this may have changed at the time of publication.

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CATEGORY ADVICE DEPOSIT RETURN SCHEME

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COST NEUTRALITY COST neutrality is a key factor baked into the handling fee discussion, as many retailers will be facing the additional expense of installing an RVM, with the added costs of maintenance, upkeep and space. “We want the fee to be as high as possible,” says Razzaq. “If it’s not affordable for retailers, then it’s not going to work. If they’re going to make a loss, they’re not going to agree to it.”

Another concern of Razzaq’s is the sudden influx of work for shopfitters to help retailers scrambling to install an RVM. “Retailers

VIEW

are currently refitting their shops and are not accounting for an RVM. That’s a huge concern and they will need to get their shops remerchandised and spend money again,” he says.

Additionally, retailers who sell drinks containers via delivery services will also be responsible for their disposal through the DRS. “We are engaging with the Scottish Environmental Protection Agency and delivery partners to support the creation of a workable solution,” says a Circularity Scotland spokesperson.

WILL THERE BE EXEMPTIONS? WITH so many small stores seeing the installation of an RVM as either a spatial impossibility or a heavy expense, many retailers will undoubtedly be interested in securing an exemption. Zero Waste Scotland is running the exemptions process on behalf of the Scottish government, and has laid out two main criteria for exemptions: proximity and environmental health.

Stores can apply for a prox-

RETAILER

imity exemption if they have an agreement with a nearby return point to act on their behalf, while stores can also apply for an environmental health exemption if they can demonstrate operating a return point would mean they would be in breach of other legislation, such as environmental health, food or fire safety. More detailed guidance is available on Zero Waste Scotland’s website.

who is involved?

These suppliers and industry bodies are involved in the rollout of DRS Circularity Scotland The scheme administrator, responsible for appointing logistics partners and getting retailers up to speed.

Biffa The official logistics provider for the Scottish DRS, Biffa is responsible for the infrastructure of sorting centres and arranging container collections from stores.

Zero Waste Scotland A non-governmental organisation that will be responsible for fielding retailers’ exemption requests on proximity or environmental grounds.

Sielaff An RVM manufacturer who appeared at this year’s The Fed Scottish Conference in Glasgow, and who may provide RVMs of differing sizes to retailers as part of the scheme.

Tomra One of the largest RVM manufacturers in the world with a global market share of around 75%.

Faraz Iqbal, Premier Linktown Local, Kirkcaldy, Fife “Putting an RVM in my store would take up a considerable amount of space – I genuinely don’t see where I’d fit it in. The only thing I could think of is outside, but it’s still a considerable investment. I know there doesn’t have to be a machine, but we’re going to have to see what the benefits and drawbacks are of actually doing the scheme once it comes into force.

“Customers don’t really know about it at the moment.

The local Lidl has a machine – I see a few people using it now and again, but not to the extent of widespread consumer behaviour change. The question is whether people start using it to the extent they require it at a convenience level. Will people expect us as a smaller store to be doing it or would they prefer to go somewhere outside with a car park?

“However, it’s an opportunity as well. If you’ve got an RVM, people might come in who haven’t before to use it. It’s all about convenience, so there are two sides to the argument.”

DRS ELSEWHERE IN THE UK AS it became clear Scotland was leading the way in implementing a DRS, it was thought governments of the other UK nations (as well as the Republic of Ireland, whose government has published draft regulations for the introduction of a DRS) would see it as a blueprint for how their schemes could take shape, as well as which companies might be involved.

With their schemes not expected to start until late 2024 at the earliest, there is no detailed guidance for English, Welsh and Northern Irish retailers.

However, the Department of Agriculture, Environment and Rural Affairs (DAERA) has announced glass will not be in the scope of the planned DRS in England and Northern Ireland.

The exclusion of glass is a factor the Association of Convenience Stores has repeatedly called for due to issues around weight and health & safety, and this news has not gone unnoticed by Scottish retailers.

“To have glass, you will need a bigger machine, which costs you more money – some retailers won’t have the facili-

ties for that,” says Dennis Williams, of Premier Broadway in Edinburgh, who is otherwise supportive of the scheme.

“You’re also going to get less of a handling fee per tonne because glass weighs more than plastic. What they’re doing in England is common sense – at the end of the day we’re on the front line. It’s just another thing to police.”

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SECURITY The RETAIL EXPRESS teams talks to retailers about how they keep their store and staff safe, and how they deal with crime

We don’t get much response from the police.

What are retailers doing to reduce crime in their stores? – Andrew Newton, Nisa Local Colley Gate, Halesowen, West Midlands

1

Catherine Johnson, Premier St Dogmaels, Pembrokeshire

“I’M putting in some training to help my team as we had an increase in bad attitudes during the pandemic. If their experience and con�idence allow them to deal with an irate customer, then they are advised to do so. But if it’s going to be more of a problem, they are told to ring me immediately. I live very close to the shop and can be there very quickly. We have cameras on site and audio at the till for back-up once something has happened.

We can then be fully informed.

“We deal with shoplifting on a case-by-case basis. The staff keep a close eye on stock and we’ve got cameras as well. We had a new system put in a year and a half ago during the pandemic to increase security for staff against abuse. It’s so clear we can see the shoelaces on their shoes. CCTV has come on leaps and bounds, and it allows us to take reasonable precautions. We have signs telling people we have it, which is in itself a deterrent.”

2

Muhammad Rashid, Attock Superstore, Oldham, Greater Manchester

“SHOPLIFTING is the old-school problem. We have a big 50inch TV with all the CCTV camera footage rolling on it. That acts as a basic deterrent because whoever’s on the counter can see everything that’s happening in the shop. We also have shutters and alarms. I don’t have speci�ic staff training, but we tell them to keep more of an eye on someone picking things up and putting them down again, hanging around in the store or large groups coming in. But customers have to feel they can walk around the shop without being watched. It’s a �ine balance.

“We don’t get much of a police response and I believe if the theft is under £50, they won’t even consider taking the case.

We’ve got respect in the community, though, and people know not to mess with us. We have friends who are also shopkeepers in the area and we all let each other know if people are causing problems. You’ve got to look out for each other.”

3

Danny Wilson, runs several One Stop stores in Yorkshire

“ALL my stores have alarm systems that are linked to the police.

They all have panic buttons in the storerooms, so if anyone is causing problems or the staff are in danger, they can push the panic buttons and that calls the police silently. The response from police is much faster this way and they do come straightaway. That’s for serious problems.

“Some of our stores are also on a CCTV radio round. So if something is happening and you’re in a town nearby, other stores can get in touch and report any shoplifting or more minor incidents on the radio to you. You might be aware of shoplifting nearby and you can keep an eye out.

“The police are also more willing to work with you if you have more information and if they know you’ll give them the CCTV footage. If we couldn’t prove something on CCTV, we probably wouldn’t report it.”

In the next issue, the Retail Express team finds out how retailers are preparing for the Platinum Jubilee celebrations. If you have any problems you’d like us to explore, please email charles.whitting@newtrade.co.uk