Retail Express - 21 March 2023

21 MARCH-3 APRIL 2023 STRICTLY FOR TRADEUSERSONLY

SPRING BUDGET

Local shops miss out on further energy support to tackle rising bills in latest plans

BOTTLE RETURN

‘SHAMBLES’

• Political point-scoring threatens to throw Scotland’s deposit return scheme off course five months ahead of rollout

• Local shops to face 30-day cashflow crunch

• One in four retailers denied exemption from scheme

MILKSHAKE SUPPLIER ERROR

F’real admits outdated hardware led to incorrect withdrawal warnings to stores

CUTTING COSTS

Three retailers reveal how they are continuing to slash bills and stay afloat

BACK PAGE

• Tackling illicit vapes: how to protect your vape sales by staying clear of non-compliant stock

• Nicotine pouches: an update on the most popular lines, and how retailers are managing the segment

• Regional trends: The bestselling 10ml e-liquids and short fills in convenience

All the latest product launches, and… Quick guide: understanding how coils can affect your customers’ vape experience Gantries and displays: a guide on how to take your vape display to the next level in 2023

REFRESH YOUR RANGE

How to build a strong range that drives sales and increases spend

BOTTLE RETURN

‘SHAMBLES’

• Political point-scoring threatens to throw Scotland’s deposit return scheme off course five months ahead of rollout

• Local shops to face 30-day cashflow crunch

• One in four retailers denied exemption from scheme P3

SPRING BUDGET

Local shops miss out on further energy support to tackle rising bills in latest plans

MILKSHAKE SUPPLIER ERROR

F’real admits outdated hardware led to incorrect withdrawal warnings to stores

CUTTING COSTS

Three retailers reveal how they are continuing to slash bills and stay afloat

Megan Humphrey, editor

THE supply of illegal vapes got so bad last year that there were two being sold every minute in London.

Although less than one million were seized during the same period, the figures reinforce how opportunistic criminals are in their ability to adapt to popular markets.

Whenever I ask how retailers can help tackle the sale of illicit goods, I’m always told – ‘report, report, report’. Well, what about if they’ve got no one to report to? I was told last week by a Scottish retailer that they’ve had no trading standards officer in their local area for more than four years.

This is where I’m stumped. I understand organisations are under pressure, but retailers aren’t exactly being given another option, or being reassured that their concerns are being heard.

The ones who are often described as giving the “best intelligence” due to being the eyes and ears are being deprived of the tools to help them identify the criminals continuing to take advantage of the law, and their legitimate sales.

Shops denied energy support lifeline in Spring Budget

THE fears of thousands of retailers came true last week after the government failed to provide any extra targeted support to local shops battling rising costs.

Last week, the ACS warned that nearly 7,000 independent stores would face permanent closure if the chancellor, Jer-

THIS NEEDS ADDRESSING URGENTLY

If resources can’t be adequately supplied to support those witnessing illegal sales within their community, how can retailers have faith that organised criminals are being targeted at the more sophisticated top level.

This needs addressing urgently if there is to be any change in cracking down on these increasingly popular, illegal products.

@retailexpress betterRetailing.com facebook.com/betterRetailing

News editor Alex Yau @AlexYau_ 020 7689

Specialist reporter Dia Stronach 020 7689 3375

News reporter Jill Lupupa jill.lupupa@ newtrade.co.uk

emy Hunt, did nothing to address the issue in this year’s Spring Budget.

Hunt made no reference to businesses in his announcement, and instead pledged to cap energy bills for households at £2,500 until the end of June.

The news came as a huge blow for retailers on higher rates who face the prospect of their bills quadrupling in April.

Elfbar recall

TEN batches of non-compliant El�bar products have had a mandatory recall by regulators.

The Chartered Trading Standards Institute and Medicines and Healthcare Products Regulatory Agency criticised wholesalers and stores that

continued to sell the 600 stock, which contains more than the legal 2ml e-liquid limit. A survey of more than 100 independent shops found only half removed them from sale. Enforcement notices have been sent to every local trading standards authority.

Currently, stores are bene�itting from the energy bill relief scheme, which runs out at the end of March.

ACS chief executive James Lowman said: “Convenience stores have been left out in the cold by the chancellor, being left to face crippling energy bills by themselves and putting thousands at risk. Dif�icult decisions will have to be made in

the coming months.”

Elsewhere, the 5p cut in fuel duty will be maintained, with fuel duty frozen for another 12 months from April 2023. Alcohol and tobacco duties will rise by the rate of RPI, with the exception of draught relief in pubs. There were no signs of immediate changes or taxes to disposable vapes, despite rising political pressure.

New Lotto terminals

NATIONAL Lottery reps have claimed new terminal devices are “coming soon” to stores.

last month.

Asked about the terminals, a spokesperson for Allwyn said: “Allwyn has exciting plans to invest in and grow the retail channel over the course of the Fourth Licence. We will start to communicate with retailers this summer to share details.”

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

Horizon racism claim

05

Premium PMPs

A WHISTLEBLOWER has accused Post Of�ice’s Fujitsu Support Services-run helpdesk as “toxic”, with widespread racism.

PREMIUM brands have started launching price-marked packs as the importance of value continues to grow.

Lindt is to add a 95p pricemark to its 38g Lindor Milk and Lindor Milk Salted Caramel treat bars. National ac-

count manager Daniel Caton described shoppers as “savvier than ever”. He said: “Price-marked purchasing is increasing in an in�lationary environment, and pricing is particularly important when purchasing snacks.”

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’ publisher, Newtrade Media, cares about the environment.

at the company’s Wake�ield of�ice from 2000 to 2001. He said the �loor was “toxic, with vocal characters in Squad A, unchallenged by managers, who looked away as all Asians were called ‘Patels’, regardless of surname”. 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 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.

Scotland’s deposit return plunged into jeopardy

A POLITICAL showdown, a “shocking” exemptionsapproval-rate for stores, and “huge” cash�low concerns has left Scotland’s upcoming deposit return scheme (DRS) hanging in the balance.

Under the scheme, set to go live on 16 August, retailers will have to add 20p to the price of single-use bottles and cans, which consumers can redeem by returning them to be recycled.

Scotland has been spearheading the scheme for several years, but in recent weeks, the UK government has threatened to halt it altogether, until a uni�ied approach from all UK nations has been decided.

Scotland secretary of state Alister Jack criticised the scheme, and, as reported in The Guardian, told the House of Commons during a session that it would be bad for businesses and consumers.

However, despite growing intensity, scheme administrator Circularity Scotland Limited’s (CSL), chief operating of�icer, Simon Jones, has con�irmed DRS will be going live on the pre-agreed date.

Speaking at the Fed’s Scottish Business Event in Glasgow last week, he said: “We understand there are a lot of big decisions for retailers to make, and we will do everything we

can to support them. Right now, we are preparing for the scheme to go live when it should.”

Registrations for retailers wanting to take part and become a return point operator (RPO) opened earlier this month. RPO’s can either operate the scheme via automation, using a reverse vending machine (RVM), or manually, taking containers back over the counter.

However, retailers can also apply for an exemption. The applications process opened in April 2020. At the time, retailers were eligible only if they struck up a partnership with an alternative return point within close proximity, or if they could prove participating in the scheme would breach environmentalhealth requirements.

In November, the Scottish government announced a new return-point-mapping and exemption-support service to help retailers identify alternative return points, and remove the requirement to share commercially sensitive information. Most importantly for local shops, the government announced it would take the size of a premises into account in determining the risk of breaching obligations.

Zero Waste Scotland con�irmed to Retail Express, that, as of 24 February, a total of 139 applications had been lodged, with only

22 approved, seven denied and the rest in the process of being assessed, representing a one-in-four storeapproval rate.

The Fed’s national deputy vice president, Mo Razzaq, described the lack of approvals as “truly shocking”. He said: “It looks as though our members will now be forced to be a return point and pay huge costs to buy a machine or �it out their stores for a mass of empty bottles and cans at a time they can least afford it.”

CSL has already con�irmed that stores operating an RVM will receive payment of their handling fees per bottle within a

month, and seven days for those taking back containers manually

However, Razzaq stressed that waiting a month will leave him nearly £4,000 out of pocket. Speaking at the Fed’s event, he said: “I’ll easily process more than 2,000 bottles a week. Factoring in all the costs involved with the machine, I’ll be nearly £900 down a week, and this is my biggest worry.

“The length of time this payment will take to reach us will cause me huge cash�low issues, and this needs to be revisited as a matter of urgency. I believe it should be the same length of time as those retailers

taking part manually.”

A spokesperson for CSL responded: “As the scheme beds in we will continue to review costs and payment terms to ensure we operate as leanly as possible and minimise the impact of DRS on our stakeholders. However, it must be noted that a 30day payback period is a standard practice for many UK businesses. Any retailer concerned about any aspect of the scheme should get it touch so we can discuss their particular circumstances and support them.”

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

How is Google’s free plug-in device helping generate footfall to your store?

“We’ve noticed a real impact since using it. We’ve had it for six-to-eight weeks. We’ve been getting a lot of people calling and asking us if we have certain things in stock as Google had told them how many of a certain product we had in a week. The number of enquiries has increased, but I don’t know if it’s actually made a difference yet with people coming into the store as it has been a short time.”

Kavita

“Our staff do monthly reviews of Pointy, so we will be doing one at the end of the month. I don’t actually oversee that process myself, but, on the whole, I would say this device is a positive for retailers. We have had it operating in the store for a little while, and it’s easy to use, as you just connect the USB that goes from the scanner to the EPoS system, and then it uploads everything automatically.”

Vrajesh Patel, Londis Dagenham, east London

“We ordered it 18 months ago, and have been using it. It gives us an online presence and showcases which products we have in stock. We had someone come from Birmingham, a 45-minute drive from us, looking for Prime, so they were able to call ahead to check we had it in stock. It’s good for footfall as people can return to you when they like what you stock, so you reach a market that’s not known to you.”

Chloe Taylor-Green, Spar Western Downs, Staffordshire

Do you have an issue to discuss with other retailers? Call 020 7689 3357 or email megan.humphrey@newtrade.co.uk

NEWSPAPERS: Daily Mail Group (DMG) has launched a scheme giving “enhanced payments” on delivered copies, with rival publishers urged to follow suit. Retailers and home news delivery (HND) agents taking part in DMG’s subscription platform on HND software PaperRound can opt in to get an extra 0.7p on every copy of the Daily Mail and Mail on Sunday they deliver.

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

PAYPOINT: The firm has completed its acquirement of Appreciate Group, giving partnered stores access to new shopping-voucher sales opportunities. The group provides Love2Shop, Park Christmas and HightStreetVoucher.com services. PayPoint’s corporate affairs and marketing director, Steve O’Neill, said: “In the past year, total commission paid to PayPoint’s retail partners has increased by 25%, driven by the introduction of new products and services, alongside significant growth in existing offerings.”

GOOD WEEK BAD WEEK

KETCHUP: Retailers have hit back at Booker after the wholesaler increased the price of its value Euro Shopper tomato ketchup by nearly 100%. Pricing of the 470g product showed that the price-mark had risen from 69p in February to £1.29. In comparison, 460g Heinz Ketchup was price-marked at £2.79, while a 550g Tesco non-price-markedpack own-label ketchup was £1.

INFLATION: Independent retailers are struggling to keep up with the pace of inflation, according to data from Kantar. Figures for the four weeks to 19 February show despite grocery price inflation hitting 17.1%, independent convenience stores saw just a 1.8% year-on-year increase for grocery sales over the 12 weeks.

Patel, Burnham Budgens, Slough, Berks

MEGAN HUMPHREY

Chloe Taylor-Green

Minister for green skills, circular economy and biodiversity Lorna Slater

C Y MY CMY

ALEX YAU

INDEPENDENT retailers have incorrectly received withdrawal notices for their F’real machines, due to their devices being fitted with outdated hardware.

Last year, the milkshake supplier’s parent company, Rich’s, began removing machines from retailers on its free-on-loan model who failed to meet a sales target of

10 cups per day. The decision was met with widespread criticism from store owners who had invested thousands of pounds to accommodate the machines.

However, several store owners told Retail Express they had received withdrawal letters from the firm in the past few months, despite exceeding the daily target.

said he was selling an average of 5,000 cups a year and disputed the letter with the firm. Meanwhile, Parfull Kumar, of Go Local Extra in Stockport, said he was receiving letters, despite his machine consistently breaking down.

Another affected store owner also disputed the notice and was told by F’real that “old hardware” on their machine was sending incor-

rect sales data. Rich’s marketing, research and development director, John Want, said: “We recognise blenders require regular firmware updates and we do this on a rolling programme. Our service levels are consistently high, with 98% of issues fixed within 24 hours. In any instances where blenders have a serious malfunction or issue, we swap them out.”

F’real admits to hardware errors Uber Eats vape issue

Jeet Bansi, of Londis Meon Vale in Stratford upon Avon,

#LetsTalkGroceryAid Call our Helpline for ‘in the moment’ emotional support and to discuss what other services may benefit you Receive accurate information on everyday issues, including legal, financial and consumer law

UBER Eats is giving supermarkets a competitive advantage over independent retailers in vaping, as it is preventing small shops from listing the category following last month’s Elfbar recall.

Messages sent to stores by

For the full story, go to betterRetailing.com and search ‘F’real’ HERE FOR EMOTIONAL SUPPORT TAKE POSITIVE PRACTICAL STEPS

the delivery firm, seen by Retail Express, confirmed it was not allowing independent stores with decentralised listings to sell vapes.

The communication warned there was a risk to stores being allowed to list vapes.

Get help managing your finances and budgeting for the future. You may also be eligible for a non-repayable grant

VIOLENT incidents in retail have reached “appalling levels” at nearly double the rate of pre-pandemic figures, the British Retail Consortium has revealed.

Free and Confidential Support Available 24/7, 365 days a year, through the FREE Helpline and website, for grocery colleagues, their partners/spouses and dependants

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

Fast Trak expansion

A HIGH-MARGIN general merchandise distributor is targeting more convenience stores as customers.

Fast Trak has worked with petrol-station retailers since 2004, counting Bestway, Booker, Nisa, Costcutter and Tesco among its customers.

Managing director Asif Ayub told Retail Express:

“We haven’t made the leap to convenience yet, but it’s something we will do in time. We want to ensure we get the product range right first for any prospective customers. That’s important for us.”

it is still nearly double the prepandemic figure of 455 incidents a day in 2019-20. 21 MARCH-3 APRIL 2023 betterRetailing.com For the full story, go to betterRetailing.com and search ‘Fast Trak’

PML’s disposable debut

JASPER HART

PHILIP Morris Limited (PML) has entered the disposable vape market with the launch of Veeba, branded as a premium option in the category.

Veeba (RRP £4.99) is available in nine varieties, including Gold, Indiblue, Turquoise, Yellow-Green, Summer, Red, Classic, Coral Pink and Mauve. The supplier said it emits on average over 99% lower levels of harmful chemicals compared to cigarettes, however it is not risk-free as it provides nicotine, which is addictive, and is only for adults.

Its e-liquid contains a nicotine level of 1.8% (20mg/ ml), with each production batch receiving a Certi�icate of Analysis and subject to regular and randomised checks to ensure devices have the correct liquid and nicotine composition.

Veeba’s Recycling Programme also enables and encourages users to dispose of used devices in a responsible and sustainable manner, with products cleaned and separated by material type, and then recycled into raw formats manufacturers can use to make new products.

In accordance with the supplier’s marketing prac-

tices, the packaging, device and �lavour descriptors have been designed to appeal to adult smokers only. It explained that Veeba has not been “commercialised with

�lavour descriptors that may appeal to youth, such as images or descriptions of candies or desserts, or brightly coloured or �lashy devices or packaging”.

#WhattheFanta campaign returns

COCA-COLA Europaci�ic Partners (CCEP) has brought back its #WhattheFanta campaign for the fourth year in a row with a purple-coloured mystery �lavour.

This year’s iteration, ‘The fabulous �lavour hunt’, features the new �lavour in 330ml price-marked pack cans, and 500ml and 2l rPET plain-pack bottles.

Shoppers are invited to solve the �lavour mystery by

KBE Drinks to distribute Sapporo beer

KBE Drinks has signed a three-year distribution agreement with Japanese company Sapporo Breweries Limited, the makers of Sapporo premium beer.

The distributor said Sapporo was an ideal partner amid the growth of premiumisation in the drinks category.

Sapporo beer has an ABV of 5% and is available in 650ml cans.

Shaun Goode, chief operating of�icer at KBE Drinks, said: “Consumers are increasingly looking for more sophisticated and aspirational brands that not only taste great, but also have a strong heritage.

“Sapporo de�initely �its this pro�ile, proven by the fact it’s grown by 19% in the past year, so we’d advise retailers to stock up and enjoy the sales.”

scanning on-pack QR codes which unlock a series of online clues hidden within episodes of a show called The Fabulous Flavour Hunt. There will also be hints on Fanta’s social media accounts.

CCEP is supporting the promotion with a multimillion-pound marketing campaign, which includes digital and outdoor, paid social media and PoS kits.

No-alcohol Staropramen out now

MOLSONCoors Beverage Company has launched Staropramen 0.0%, a new non-alcoholic lager tapping into the growing demand for low- and-no-alcohol options and world lagers.

It is available in 330ml bottles and four-packs, coming alongside the brand’s 11.4% value sales growth following a multimillionpound investment last year.

According to the supplier, 41% of UK adults have drunk low- or no-alcohol drinks in the past three months.

Kathryn Reynolds, marketing controller – premium beers at Molson Coors, said: “The number of alcoholfree occasions is increasing

and, while there are more 0.0% options available, we know consumers want zero-alcohol lagers to still truly deliver on �lavour.

“The Staropramen team has perfected a method to offer a full-�lavoured Czech pilsner with zero alcohol.”

F’real launches UKonly Bubblegum

F’REALhas announced the launch of a UK-exclusive Bubblegum variety.

Available to retailers now, Bubblegum is F’real’s second country-exclusive and nontraditional milkshake �lavour, after the launch of Cotton Candy in the USA.

With an RRP of £3.50, it is made with fresh milk and no arti�icial ingredients.

ing manager at F’real, said: “Given that the demand for Cotton Candy was so prevalent in the US, leading to its rapid switch from a limitededition variety to one of the core �lavours, we’re con�ident Bubblegum will see blenders across the country in overdrive this spring.”

Nordic Spirit adds Strong Spearmint

JTI UK has launched a Strong version of its Spearmint Nordic Spirit nicotine pouches.

The supplier said the launch (RRP £6.50) looked to tap into the demand for extra-strong and strong strengths, which have an 83.1% share of the category. Additionally, it provides another menthol offering, which accounts for 81.6% of the market.

Bruce Terry, portfolio

The supplier has supported the launch with a marketing campaign that kicked off this month that includes digital advertising, paid social media activity and in-store PoS. said:

brand manager at JTI UK, said: “The continued growth of the nicotine pouch category represents a huge opportunity for retailers. With mint by far the most popular �lavour when it comes to nicotine pouches and demand for stronger varieties on the rise, the introduction of Spearmint Strong provides more choice at the till and expands the sales opportunity for retailers.”

Gemma Bryant, market-

To support the launch, the supplier will provide digital PoS and social media assets.

PRODUCTS 08

Red Bull’s next Summer Edition

JASPER HART

RED Bull has launched a Juneberry variety, the latest of its limited Summer Edition �lavours.

The supplier says the �lavour is reminiscent of dark cherries and mild blueberries. It performed well in consumer taste tests, seeing the highest purchase intent of any previous Summer Edition at 75%.

It is available in 250ml, 250ml price-marked pack, 255ml Sugarfree and 250ml Sugarfree four-pack formats. The launch comes as �lavours are driving energy drink growth, with 61% of functional energy consumed for �lavour, up from 40% in

2020. Red Bull’s previous Summer Edition launch, Apricot, was the supplier’s most successful new launch, contributing to 30% of Editions sales and 54% of Editions growth, with sales of 4.8 million packs.

A Red Bull spokesperson said: “Red Bull is the signpost to the category, therefore instrumental to the overall strong performance of �lavoured sports and energy drinks, outperforming total �lavoured sports and energy by four times.

“We also know shoppers love to explore new �lavours, so we are constantly innovating to add excitement to the category, which has not only helped us to drive sales,

Blu 2.0 vape kit now available

IMPERIAL Tobacco has launched its latest vape kit, Blu 2.0, into wholesale and convenience stores.

Blu 2.0 features an array of updates, including what the supplier describes as a smoother vape experience due to its ceramic heating pod technology, a longerlasting battery, and bigger 1.9ml volume e-liquid pods.

It also has a magnetic lock feature and ‘power tap’, which enables users to check the device’s battery level with a tap.

Each of its pod �lavours comes in 9mg/ml and 18mg/ml nicotine strengths. These include Golden Tobacco, Polar Menthol, Fresh Mint, Berry

Mix, Blueberry Ice and Fresh Mango �lavours. The device has an RRP of £9.99, and RRP £6.99 for a pack of two pods.

but also introduce new shoppers to the sector. This has led to Red Bull Editions quadrupling in value within the past two years, grow-

ing 81% shoppers incrementally year on year and appealing to more females, with 62% of Editions spend by female buyers.”

PepsiCo refreshes 7Up design

PEPSICO has updated the design of its 7Up range, the brand’s �irst in more than seven years, in line with its international positioning that adds moments of ‘Upliftment’ to the everyday.

The redesign follows PepsiCo’s mission to offer “light relief from the mundanities of daily life by bringing moments of Upliftment, positivity and

surprise”, as noted by Mauro Porcini, SVP & chief design of�icer at PepsiCo.

With an aim to represent a design that better captures the brand, the design maintains 7Up’s signature green colouring, with added citrus tones and high-contrast lines.

Porcini added the redesign is meant to “portray a feeling of upward energy”.

RAISING THE BAR ON FLAVOUR

www.blubarhub.co.uk

US soda gets distribution deal

US CRAFT-SODA brand

Jones Soda Co has partnered with American Fizz, the UK’s largest distributor of American food and drink.

The partnership will make the supplier’s products available to retailers throughout the UK, France and Belgium in 2023.

Jones Soda is made with pure cane sugar. Its varieties include Cream Soda, Root Beer, Blue Bubblegum, Green Apple, Strawberry Lime and Berry Lemonade.

It is also known for its unique bottle designs, which feature photos submitted by customers which frequently change.

Additionally, under every bottle cap, customers can

In-depot offer days at Hancocks

�ind a personalised fortune, featuring “quotes, wisdom, inspiration,and whimsy”. Customers can also redeem bottle caps for branded merchandise.

‘Add some pasión’ with Campo Viejo

PERNOD Ricard UK has launched a new campaign for its Campo Viejo wine brand, inviting consumers to ‘Add some pasión’.

The campaign runs until the beginning of April across outdoor, on-demand and social media advertising and in-store PoS.

A 40-second video uses silhouettes and shapes to reference the key elements involved in making the wine, including the Sierra de la Demanda mountain range where its grapes are cultivated.

It also highlights the breadth of the brand’s range, including its Tempranillo, Reserva and Gran Reserva lines.

The supplier has launched the campaign as Spanish wine is in growth, with an 8.9% market share, while Campo Viejo has a 21.3% share of the Spanish wine category, according to Nielsen �igures.

HANCOCKS is holding ‘Sweetest day’ events across its depots to offer retailers one-day-only deals across its brands.

The �irst event took place on 9 March across all 14 of the wholesaler’s depots. Other events are taking place on 11 May, 3 August and 5 October.

One of the available deals will be £1 off all Kingsway

3kg bags. Additionally, any customers who spend £500 in-depot across all products on one of the days will have a chance of winning £50-worth of Crazy Candy Factory lines.

Hancocks will also be offering prizes, with a 43-inch Toshiba TV up for grabs at each depot, as well as a prize draw to win Love2shop vouchers.

Mondelez launches Philadelphia promo

MONDELEZ International has launched a new campaign for Philadelphia, reminding shoppers that meals are ‘Simply better’ with the spread.

The campaign aims to highlight how the brand’s quality and taste elevates the meals it accompanies. It is also partnering with biscuit brand Ritz on sideby-side outdoor adverts.

Nancy Galvin, brand

manager for Philadelphia UK, said: “We want shoppers to know a good meal doesn’t have to be complicated – instead, it can be made ‘Simply better’ with Philadelphia. With its great taste and quality, it’s a simple addition that can really make all the difference.”

The campaign will be underpinned by in-store, digital and social media activity.

New taste and design for Sprite

JASPER HART

COCA-COLA Europaci�ic Partners (CCEP) has announced a new formulation for Sprite alongside a new pack design and accompanying global marketing campaign.

The supplier says the new recipes will deliver an “enhanced” lemon-lime �lavour across Sprite and Sprite Zero Sugar. They will also further differentiate the two varieties, giving Zero Sugar a lighter taste pro�ile to give shoppers a point of difference.

The new design retains the attached caps that CCEP has begun featuring across its 500ml bottle range. It features white and black text to highlight the differences between Sprite and Sprite Zero Sugar.

Meanwhile, the new campaign will kick off in Q2 across digital outdoor, online video, social media and sampling.

It will initially focus on the refreshment Sprite provides, with audio cues such as ice clinking, bubbles �izzing and

the sound of a can opening.

Later in the year, it will focus on how Sprite can cool drinkers down in moments of mental and physical heat.

The new formulation, pack design and campaign come as Sprite is now worth more than £144m in Great Britain.

Martin Attock, vice president of commercial development at CCEP GB, said: “Sprite has enjoyed solid growth over the past 12 months and our latest activity is designed to build on that momentum.”

19 Crimes launches cork cash promo

CONSUMERS have the chance to win £250 through Treasury Wine Estates’ (TWE) latest campaign for its 19 Crimes wine brand.

Until 31 August, there are 400 limited-edition corks across 19 Crimes’ Red Wine, Uprising, Chard, Sauv Block and Revolutionary Rose 750ml bottles, each worth £250.

Each cork features a unique eight-digit code.

When a winner �inds a cork, they will be directed to the dedicated the19thcork.co.uk website to enter their code and claim their prizes.

The campaign comes as the brand continues to grow by attracting younger adult drinkers. According to Nielsen, it is adding £7.4m to the wine category.

TWE is supporting the campaign with marketing activity including social media, in�luencer marketing and in-store activity.

Glasto tickets up for grabs with Brothers

BROTHERS Cider is marking its partnership with Glastonbury Festival this year with an on-pack promotion offering prizes including free tickets.

Overall, the promotion has more than a million prizes up for grabs, including 10 pairs of tickets to the sold-out festival.

Other prizes include festival-themed hoodies, T-shirts, bucket hats, sunglasses and can coolers, as well as a million coupons for 50p off Brothers drinks.

It runs until 31 May across 500ml bottles of Festival Apple Cider, Cherry Bakewell Cider and the newly launched 500ml bottle format of Toffee Apple Cider. It is also available on 10x440ml can multipacks of Festival Apple Cider.

The supplier is supporting the campaign with social media and digital advertising.

Rustlers: ‘Better than you think’

KEPAK has brought back its ‘Better than you think’ campaign to promote its Rustlers ready-meal brand, as part of a £1.5m investment in the brand this year.

The campaign positions Rustlers as a meal solution for time-pressed and costconscious shoppers.

Upon its initial launch in 2020, the campaign brought in an additional 40.3% of shoppers to the brand. It also led to an 18% year-on-year

Molson Coors toasts Aspall’s success

increase in sales, with Rustlers’ share of convenience lunch sales rising from 8.8% to 13.2%.

Elaine Rothballer, head of marketing for consumer brands at Kepak, said: “‘Better than you think’ dials up Rustlers’ quality and taste credentials by educating consumers through provenance and taste cues – found to be the most motivating driver of shifting product perceptions.”

MOLSON Coors Beverage Company is hailing the success of Aspall Cyder after it saw strong growth in the convenience channel last year.

Aspall’s sales in convenience grew by 25% in 2022. The supplier said there was particularly strong growth in Q4, despite cider traditionally not being considered a popular winter drink.

Convenience-store sales in the quarter were up by 49% compared with the same quarter in 2021. This is far ahead of Aspall’s overall Q4 offtrade sales growth of 16%. They have helped Aspall become the UK’s numberone super-premium cider, according to IRI.

The supplier said the growth came in the wake of signi�icant investment in the brand, including its �irst TV advert, that aired last June.

Women in Convenience aims to address this inequality and make meaningful changes.

We are asking female retailers to complete our short survey, to share their thoughts and experiences, so that we can begin to understand what is behind the inequality, and how Women in Convenience can best help tackle the issues that female retailers face in the workplace.

The survey can be accessed at the following link: bit.ly/3wPzrmR or by scanning the QR code.

We really appreciate your time – thank you.

You can find out more about Women in Convenience and how to get involved by visiting betterRetailing.com/women-in-convenience

Over 75% of female retailers feel that there is inequality in the independent convenience sector.

THE

OPINION

RETAILER OPINION ON THIS FORTNIGHT’S HOT

TOPICS

What do you think? Call Retail Express on 020 7689 3358 for the chance to be featured

SERVICE FEES: How will PayPoint and Payzone’s rises affect your store?

“IT’S a service we provide for the bene�it of the customer, and we don’t really make much money from it. More people need to use it now than previously because they top up their electricity cards, so it’s a tricky situation to be in as a retailer. I’m not happy about it, but unfortunately people rely on it.”

Sue Nithyanandan, Costcutter Epsom, Surrey

We have imagery all around the store

PRICE-MARKED PACKS (PMPs): How are you mitigating falling margin?

“WE substitute products with non-PMPs unless the margins are there, then we stick to them, but it very much depends on that. Everyone realises what’s going on – price and margin changes aren’t as much of a shock as they were a few years ago.”

Harj Gill, Windmill Select & Save, Rubery, Birmingham

increases

“ YOU either have to continue providing a the service, or say enough is enough. Because we are in a location where people need it to pay their bills we have to carry on using it. If they can’t access it, then they won’t be able to pay their bills. I think it’s morally wrong that these people have costs and it is then passed onto us.”

Atul Sodha, Londis Hare�ield, Uxbridge, Middlesex

UNDERAGE SALES: What steps do you take to ensure compliance?

“STAFF training is a must. We always ask for ID, and we ask them to come back with it before we make the sale. We know most of our shoppers anyway. It’s not good for our community if children get products they shouldn’t be buying.”

“WHETHER someone looks older than 25 or not, we always look for ID. We have imagery all around the store highlighting that it is needed, not just in the alcohol system. When we train our staff, they have to do an online training course on age veri�ication.”

“THEY haven’t been dominating our sales. We can still get PMPs fairly easily from Booker, and we are doing okay because we haven’t been too heavily reliant on them in the past. We use PMPS as a sort of value offer here and there.”

Goran Raven, Raven’s Budgens, Abridge, Essex

I don’t foresee many major changes

If the margins are there, then we stick to them

LOTTERY: Are you pleased Allwyn will be carrying out a retailer survey?

“I AM quite happy. I have always had a great relationship with Camelot and I hope to continue this with Allwyn when they take over. I don’t foresee there being many major changes, and if anything, it will be a bene�it to the retailers who operate the National Lottery and the public.”

Eugene Diamond, Diamonds News, Ballymena, Co. Antrim

“I AM not too worried about the changeover from Camelot to Allwyn. Allwyn is known internationally, so the company has experience in operating many national lotteries. I think it would be good for the new operator to do something different from its predecessor.”

Mo Razzaq, Premier Mo’s, Blantyre, South Lanarkshire

Trudy Davies, Woosnam & Davies News, Llanidloes, Powys

Chloe Taylor Green, Spar Western Downs, Staffordshire

I’m not happy about the

Getting ready for Easter

EASTER is easily one of the biggest trading opportunities for retailers after Christmas – in fact, for us, it’s actually bigger and busier than Christmas. That means it’s really important to make sure you’ve prepared for it properly, your availability is strong and your ranging is correct. That’s especially important with the cost-ofliving crisis.

providing Evri need to double-check for missing payments’

EVRI has underpaid me parcel commission yet again.

I’m missing payment for 250 parcels – 200 on customer drop-offs and 50 on the collection side. Evri accounts for 20% of my turnover. The issue is that I’m now missing around £80-worth of commission

because of this, and it’s not like this is the �irst time this has happened.

I’ve followed up with them, but it just takes so much time to chase. I’ve looked at using other parcel companies, but that’s not the point. If Evri are providing this kind of service, then they need to start being

WIN £50-worth of BrewDog Punk IPA

more honest.

A while back, Retail Express uncovered a glitch in their system which resulted in them needing to pay out thousands of pounds of missing commission to retailers. I have contacted the area manager and my rep but was told they are having a restruc-

ture and that I need to call someone else.

Hardik Patel, Svarn News & Off Licence, Staffordshire, West Midlands

A spokesperson from Evri responded: “We can con�irm we are in contact with Mr Patel to resolve these queries.”

COMMUNITY RETAILER OF THE WEEK

Harjit Singh,

H &

Jodie’s Nisa Local, Walsall, Birmingham – @hjodies

Each issue, one of seven top retailers shares advice to make your store magnificent

Confectionery sales always go up in a recession because people start treating themselves little and often. They can’t spend money on a big holiday or eating out at restaurants, so they’re buying alcohol and food to have at home rather than the pub. Expect lots more people to celebrate Easter at home this year and prepare accordingly. The focus should be on having promotional activity and displays in store to capitalise on sales early. I recommend buying conservatively for Easter, though, because if you have excess stock afterwards, no one will buy it.

If you do run out, you can top up with purchases from the supermarket. So, keep that conservative level and hope to run out at Easter weekend and then top up.

At Easter itself, eggs are more of a distress purchase so the price becomes less important. Also, don’t over-promote during Easter weekend itself.

You should definitely have an offering of budget Easter eggs. We find that the £5-10 eggs sell most successfully. But you should also have a selection of premium options as well. That’s really important because premiumisation is still important, even with the cost-of-living crisis. Thorntons is your basic premium option, but it’s definitely good to have a strong selection of Lindt Easter eggs. The eggs should already be on display, if not by the end of March, to let your customers know you’re stocking them. They should be prominent as well.

If the weather is good, barbecue products and packs of beer will sell well. Beyond that, you can look at non-food items. Have a strong Easter flower display, it can follow on from Mother’s Day. We’ve got Easter napkins and Easter plates for kids’ parties, as well as bunting. Decorations always sell well.

You can do even more in store as well, with activities like raffles, where you raffle off a big Easter egg, but the most important thing is decorating the store. It really gets customers into the feel of Easter. Everything is so doom and gloom at the moment, so Easter bunnies and chicks, bright spring colours and decorations in the store can really brighten people’s day up.

BREWDOG has partnered with Retail Express to offer five retailers the chance to win £50-worth of Punk IPA. Craft beer shoppers spend more on their total basket than other beer shoppers. With the right range, retailers can add incremental sales and drive shoppers to more premium products. BrewDog Punk IPA 330ml four-pack is the UK’s number-one craft beer line.

TO ENTER

Fill in your details at: betterRetailing.com/competitions

This competition closes on 18 April. Editor’s decision is final.

“I HAD to visit Walsall Manor Hospital for a CT scan at Christmas. When I was there I apologised that we weren’t able to help them with their donations at the time, but a staff member told me about an opportunity to help the children’s ward. At the end of last month, we donated £1,000 to help fund the building of a new children’s play area. It’s great to know how much joy this will bring children at the hospital. We’ve traded for 32 years, and it means a lot to us being able to help our community.”

‘Shops

‘We donated £1,000 to the children’s ward’

Harj Dhasee Mickleton Village Stores, Gloucestershire

The Retail Success Handbook: Recruitment, Retention and Training

The National Living wage increase in 2023 and low unemployment rates are causing difficulties for store owners in finding, training and retaining strong teams. This edition of The Retail Success Handbook examines recruitment strategies in a competitive job market, maximising efficiencies and retaining employees. We also explore ways to improve employee skills and loyalty, while maintaining profitability, including:

Best practice for recruiting and onboarding staff

Creating value through staff incentives and staff welfare

Exploring effective options to train and boost productivity

Smarter ways to promote products and interact with customers more effectively

RANGING RIGHT

RETAIL EXPRESS has teamed up with top suppliers to help retailers build a strong range that drives sales and increases spend

FOCUSING ON YOUR RANGE

STRONGmerchandising and ranging are among the core stepping stones of a successful convenience store.

Whether placing highermargin products at eye level or locating linked purchases nearby, every decision has to be well thought through.

A challenge retailers face is navigating the range of products available to them in each category. When merchandising alcohol, for example, retailers have to think about beers, cider, wine, spirits and pre-mix

drinks, as well as different formats and new products.

Every product ranged in store has to meet the needs of the store’s customers.

This is why Retail Express has partnered with suppliers to help retailers build a strong range that will drive sales.

BAT UK talks about alternative nicotine products and the importance of covering different flavours, devices and strengths, as well as the solutions it offers.

BrewDog provides tips on

ranging craft beer, including capitalising on the demand for multipacks and the products shoppers are looking for within the category. These include leveraging the strength of familiar brands to help shoppers navigate the fixture and having the right location for your craft beer products.

Meanwhile, Red Bull emphasises the importance of understanding that every soft drinks shopper is different, and that a full range is imperative to maintaining sales.

The tips they offer range from determining the right facings to giving the right amount of space per category in soft drinks.

Finally, Weetabix discusses the opportunities within cereal, including on-the-go formats and how stores can communicate value.

Among top tips and advice on different categories, retailers can also benefit from supplier planograms within each category to help them change their shelves, if needed.

ALTERNATIVE NICOTINE PRODUCTS

RANGING EFFECTIVELY

IT’S vital retailers stock a broad range of alternative nicotine products, with a variety of brands and products covering different nicotine strengths and flavours, such as mint, fruit and tobacco. Structured displays are key for retailers to showcase their range effectively to adult consumers and help them navigate through a category.

BAT UK offers its retailers best-in-class merchandising solutions that not only support retailers’ product storage,

THREE TIPS FOR RANGING

but also help them highlight and organise products in the category to help adult nicotine consumers find their way easily around their vaping products and nicotine pouches.

BAT UK’s solutions also include digital screens that deliver key information to adult consumers, such as product information, promotions and launches. Retailers should speak with their BAT UK sales representative on the merchandising solutions available in their areas.

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BAT UK suggests retailers range their merchandising solution from high- to low-nicotine strength, keeping stock grouped by brand, strength and flavours to make it easier for adult consumers to view what’s on offer.

A store’s vaping and nicotine pouch products should be displayed ideally near other nicotine products – and make sure they are clearly visible in the line of sight of the adult consumer at the point of sale.

When space is limited, BAT UK advises retailers to minimise the amount of stock in their display areas by keeping just one facing per product, focusing mainly on bestselling lines.

“CONSOLIDATING the category into an organised display is beneficial and likely helps to drive sales and profitability, increase the number of adult consumers in stores and gives them more opportunity to explore the category based on their preferences. Consumers can become confused at the increasing number of products on offer in the category. In-store displays are the key to informing nicotine consumers about the range and brands on offer, particularly those at the point of purchase.”

To find out more, contact your BAT UK sales rep or visit vapermarket.co.uk/contact_us

Mustafa Zaidi, head of business development, BAT UK

SUPPLIER VIEW

CAPITALISE ON CRAFT BEER

RANGING EFFECTIVELY

CRAFT beer shoppers spend more in store than any other beer shopper on their total basket, highlighting the key opportunity for retailers. By having the right range, retailers can add incremental sales to their business, driving shoppers to more premium products. The amount of craft beer lines recommended for a store’s range is dependent on space retailers have dedicated to total beer.

For maximum profit opportunity, BrewDog recommends

THREE TIPS FOR RANGING

that for approximately every 10 beer lines stocked, retailers should include one craft beer product. BrewDog holds the top seven craft beer products in impulse, with the can four-pack the most important format throughout the year1. BrewDog Punk IPA 330ml four-pack is the UK’s number-one craft beer, followed by BrewDog Hazy Jane 300ml four-pack at number two and BrewDog Lost Lager 440ml four-pack, the fastest-growing craft beer2.

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Leverage the strength of familiar brands to help shoppers navigate busy fixtures. BrewDog is the signpost for craft beer3 so should be displayed at eye level and brand blocked.

Location is key. When buying craft beer, 76% of men want chilled beer from the fridge in convenience stores4, so place these at eye level to capture their attention and drive sales.

Focus on multipacks. This is true as value becomes more prominent as costs continue to rise. The fourpack can is the most important format for craft beer and BrewDog shoppers5.

SUPPLIER VIEW

“WE know that craft beer shoppers are extremely valuable to the category and likely to increase total basket spend when in store, so getting the range right is vital to capturing those significant incremental sales.

“As the signpost to the category, ranging topperforming craft beer lines, such as BrewDog Punk IPA, Hazy Jane and Lost Lager four-packs, as well as multipacks at eye level in the chiller, will help drive customer trial, upweight purchase and encourage repeat custom.”

Miriam Thompson, off-trade category development manager, BrewDog PLC

DRIVE ENERGY DRINK SALES

THREE TIPS FOR RANGING RANGING EFFECTIVELY

EVERY shopper is different, so it is crucial their favourite soft drink is always available when they need it. If a store is missing a product their shoppers are looking for, they might go elsewhere, jeopardising repeat purchases, too.

When building a strong range, it’s key for retailers to remember the four soft drink need states: refresh (colas and carbonates), hydrate (water), replenish (sports drinks) and energise (caffeinated energy drinks and ready-

to-drink coffees).

Shoppers can only see products within a 1.3-metre breadth, so it’s vital retailers signpost each sector with the biggest brands to help them locate what they are looking for, quickly. For energy drinks, that is Red Bull.

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To offer further choice, there are four key segments that should be included within a store’s energy drinks range to get right: core energy drinks, sugar-free options, flavoured options and multipacks. 3

Start by getting the right amount of space per category. Sports and energy makes up 35% of the soft drinks category, so review the category and ask: have you given it over a third of chiller space?

Don’t scrimp on facings of your bestsellers. For example, Red Bull Energy sells more than any other soft drink in a store’s chiller. It will be near impossible to keep drinks perfectly chilled if they don’t have multiple facings.

Put your bestsellers at eye level. Red Bull signposts energy drinks, and Coca-Cola does the same for cola and carbonates. That ‘power shelf’ at eye level should always highlight a store’s bestselling and most iconic brands.

SUPPLIER VIEW

Head of customer development, Red Bull UK

“DESPITE challenges on household incomes, such as the current economic climate, soft drinks are growing faster than other FMCG categories1, with branded spend 36% higher than own label, meaning shoppers are not willing to compromise when choosing their favourite branded drinks.

“Ranging the bestsellers and ensuring retailers have strong chilled availability, especially throughout the summer months, will help shoppers find what they need, maximising growth and driving profit for convenience stores.”

CAPITALISE ON CEREAL

RANGING EFFECTIVELY

VALUE for money is a bigger customer trend than ever. There has been an upswing in the popularity of smaller pack sizes due to their lower price, but retailers need to offer a wide range of formats so all customer needs are met in store, particularly in cereal.

Price-marked packs are still great sellers, too. They reassure the customer they are getting a brand they love at a fixed price, which helps to maintain trust between shopper and retailer.

THREE TIPS FOR RANGING

With hybrid working a relatively new mission, a store’s breakfast range should include convenient portable options such as Weetabix On The Go or Alpen bars – but a core range is still important in convenience stores.

Don’t make it too cluttered and keep it simple. Make sure you have family favourites such as Weetabix, Weetabix Minis, Alpen and Ready Brek, alongside other options, such as Weetos.

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Why not try merchandising cereal in the ambient category near teas and coffees, or consider creating a breakfast end featuring teas, coffees, sugars and cereals to help drive linked purchases.

Retailers can further drive linked purchases by mixing up their merchandising approach by using units in less likely areas, such as near fruit or yoghurt and dairy, or other cereal accompaniments.

Don’t forget about the on-the-go occasion. The Weetabix On The Go drinks and Alpen bars are doing brilliantly with commuters and parents on the school run, so make sure they are easily accessible.

SUPPLIER VIEW

“THE cereal and breakfast drinks category is worth £1.7bn, of which 8.4% is in convenience stores (approximately £143m1). That’s a big opportunity for retailers to capitalise on. At Weetabix, we know that independent retailers often look at small packs, small cases, PMPs, as well as having a strong core offering – and we offer it all. Value is such an important mission to shoppers right now, and we help you meet that mission, while also protecting retailer margins.”

Darryl Burgess, head of sales, Weetabix

CATEGORY ADVICE ICE CREAM

A N-ICE SALES OPPORTUNITY

JASPER HART looks at the yearround possibilities ice cream offers

THE ICE CREAM OPPORTUNITY

AS the weather (apparently) gets warmer and spring nears, retailers should have one eye on their freezers and the role sales of ice cream will play in driving profits.

According to Michelle Frost, general manager at Mars Chocolate Drinks & Treats (MCD&T), the category is worth £3.4bn in the UK, with convenience sales accounting for £790.6m. Handheld multipacks are the largest segment within convenience stores, with £378m in sales.

“It has been an interesting year for ice cream in the UK,” says Frost.

“Where we have seen major multiples dip slightly, the independent and convenience channels have enjoyed much more favourable levels of growth attributed to the warm weather. For our handheld singles, we have seen value sales increase by up to 20% within impulse channels.”

As in other treat categories such as confectionery and soft drinks, brands have a key role to play for ice cream sales, as customers look to spend dwindling disposable income on established products.

“As the cost of living continues to rise, we are expecting

more consumers to seek everyday luxury in more affordable and accessible formats,” says Jose Alves, head of HäagenDazs UK at General Mills UK.

Mars’ ice cream range has a 42% market share, and Frost says it has delivered more than six times the growth of the category average and more than any other manufacturer. Meanwhile, within the premium ice cream segment, Ben & Jerry’s has a 29% market share, according to Statista. Keeping the right formats can also contribute to crossselling opportunities. “Last year, Häagen-Dazs research in-

dicated that while one in three shoppers were hosting a big night in weekly and that 60% of consumers were planning to choose ice cream for a movie night at home, almost half –43% – couldn’t find the dessert options they wanted in store,” says Alves.

“The big-night-in occasion provides an opportunity for retailers to drive sales at a time when shoppers are feeling this squeeze on household spending. Alongside wine and other snacks categories, premium treats, such as luxury ice cream, are frequently added to baskets.”

Voilà!

New macaron ice cream from Häagen-Dazs.

41%* of shoppers want to see more innovation. Which means your customers will find our new creamy ice cream made with real macarons, totally irresistible. Stock up now. And voilà! You’ve got big sales.

FORMAT FLUCTUATIONS

MOST independent retailers, especially those with smaller shops who need to manage their space, will be aware of the shift from handheld ice creams to take-home tubs as the weather gets cooler and indoor treats become the norm.

“As the summer ends, I cut down to about 15 single ice creams and add more tubs,” says Muntazir Dipoti, of Todmorden News in Todmorden, West Yorkshire. “We use the same freezer throughout the year, changing the range.”

Jennifer Dyne, head of ice cream at Unilever UK&I, says ice cream can increasingly

be thought of as a category to suit any day of the year.

“It goes without saying that ice cream sales rocket on a sunny day. However, it isn’t and shouldn’t be dictated by seasonality – it is a yearround opportunity. There are many different occasions available for ice cream that are relatively untapped – from evening desserts, to family get-togethers, to more solo indulgent treats.”

This may also dictate the quality of products retailers sell; both premium and ownlabel take-home ice creams offer value for money as either

group treats or ways to cater to large gatherings. The choice between handheld and take-home isn’t necessarily all that binary, depending on your customer base. Vince Malone, of Tenby Stores & Post Office in Tenby, Pembrokeshire, does a strong trade in multipacks of Magnums and Soleros for tourist families in the summer. “There are some great offers to be had,” he says. “You can get a three-pack of Magnums for £3.50 compared with £2.25 for a single.”

RETAILER VIEW

Muntazir Dipoti, Todmorden News, Todmorden, West Yorkshire

“DURING the summer, we tend to have the single ice creams, and the variety is quite big because I have the Wall’s three-tier Maxivision freezer. Magnums are the core sellers – I stock all flavours. My top tier is for the Magnums, then the middle one is more focused on ice lollies such as Feast, Calippo and Solero. The bottom shelf will be for kids’ items such as Haribo lollies, Ice Pops and Push Pops.

“We find that tubs don’t sell as much during the summer. People buy them more from the supermarket because they have better offers. I generally get HäagenDazs and Ben & Jerry’s, and I also have budget tubs. There are also some vegan lines that get regular customers.”

BALANCING OLD AND NEW

THE ice cream category is another category affected by the one-two punch of HFSS restrictions and overall trends towards healthier products. “An increasing number of consumers are now looking for dairy-free, vegan or gluten-free and lowsugar options,” says Kenton Burchell, trading director at Bestway Wholesale. “Brands are likely to formulate their products due to this trend.”

Dipoti tries rejigging his range to give new lines enough space for him to know whether or not they’ll bed in. “If there’s a less-popular line that still sells through, I’ll give it a half facing and mix it with another line, such as Soleros, Calippos or Fabs, which have been going for ages. People know them, so they don’t need a full facing, so the newer line can get that space,” he says. He also now stocks a range

launches

Häagen-Dazs has launched a macaron ice cream range in collaboration with pastry chef Pierre Hermé in Strawberry & Raspberry and Double Chocolate Ganache varieties. These are available as pints and minicup formats, with respective RRPs of £5.35 and £4.80.

Ferrero has launched a trio of ice creams. Ferrero Rocher Classic, Ferrero Rocher Dark and Raffaello are available in single sticks at an RRP of £2 and multipacks of four at an RRP of £4.75.

MCD&T has launched Twix Ice Cream cones, available as a four-pack with an RRP of £3.50. This marks the first time the popular chocolate brand has been developed into an ice cream cone format.

Unilever UK&I has launched four new Magnum lines. Double Starchaser and Double Sunlover are available in multipacks of three (RRP £3.99), pint tubs (RRP £3.99) and as a single (RRP £2). Mini Double Caramel Collection pairs Gold Caramel Billionaire and Caramel Almond in a six-pack with an RRP of £4.50. Finally, Vegan Raspberry Swirl is available in a three-pack at an RRP of £3.99.

Pukpip is a brand of frozen bananas dipped in chocolate, available to retailers from CLF Distribution and Consort Foods. It is available in Milk Chocolate and vegan Dark Chocolate varieties, each at an RRP of £3.99.

of vegan ice creams, which are increasingly accessible to convenience stores. These niche, free-from lines don’t need a large customer base, just a regular one that will come back to your store because you offer it while your competitors might not.

Alan Mannings, of Shop on the Green in Chartham, Kent, has seen similar success from Swedish Glace’s dairy-free vegan range.

THE FIGHT CONTINUES

CHARLES WHITTING finds out how illicit tobacco has evolved into next-gen, and what suppliers, retailers and regulators are doing to halt its advance

THE ILLICIT TOBACCO ISSUE

ILLICIT tobacco is a scourge that harms society in a number of ways, whether it’s supporting organised crime, introducing unregulated and potentially toxic products into the underground marketplace or hurting the bottom line of responsible retailers at a time when every penny counts towards their bottom line.

A study by KPMG commissioned by Philip Morris Limited (PML) in 2022 found that one in five cigarettes consumed in the UK were illicit,

making the UK second highest among 30 European nations for the volume of illicit cigarettes consumed.

Within the illicit marketplace, counterfeit cigarettes are now the most prevalent form of illicit cigarette in the UK, making up 34.1% of the total in 2021. These counterfeit cigarettes appear to mostly be produced within EU borders, with KPMG finding that illegal manufacturing sites are moving west in Europe.

While Imran Nasim, from

Symington Stores in Kilmarnock, has never had a problem with illicit tobacco in his area, he is concerned that the continued rising price of tobacco could see people turn elsewhere for their tobacco.

“The quality of illicit tobacco is nowhere near good enough and genuine customers are always going to buy the proper stuff with me,” he says. “But with the price of a 20-pack of cigarettes going up again, it’s going to cause problems when money is already tight.”

ILLICIT TRADE IN NEXT-GEN NICOTINE

IN recent years, the illicit market has evolved and grown beyond traditional tobacco products to include the nextgen nicotine category as well.

With next-gen usage on the rise and nicotine levels capped at different levels by different countries, vapes and other products run the risk of failing to comply with UK standards.

“With approximately 4.3 million people now regular vapers, an illegal strand of vaping has emerged. A JTI UK

commissioned study found that a shocking 25 out of the 28 disposable vape products tested on the market were not legally compliant, while the UK Vaping Industry Association recently estimated that up to 60% of disposable vape products in the UK are illicit,” says Ian Howell, fiscal and regulatory affairs manager at JTI UK.

The Chartered Trading Standards Institute (CTSI) states illicit vapes to be the

products that 60% of trading standards professionals are most concerned about. According to the CTSI, more than 1.4 million tonnes of illegal vapes were seized in the last six months of 2022 in the northeast of England alone. On top of this, underage vaping is a growing concern.

CTSI chief executive John Herriman says: “While we recognise that vaping can be a useful quitting aid for smokers, we are worried about

increasing breaches of the law, with many non-compliant devices being sold on high streets. There is an increasing problem with vaping products being sold to children in many general retail premises, such as mobile phone shops, gift shops and convenience stores.

“Trading standards teams are cracking down on the unscrupulous retailers who are selling these products to young people without the legally required age-verification

checks. It is important that vaping products comply with rules that were established to safeguard public health, and that they do not end up in the hands of children.”

Kate Pike, tobacco control lead for Trading Standards

North West, has seen a large increase in reports about shops selling illegal vapes or next-gen products to children.

Mo Razzaq, from Premier Mo’s Blantyre in South Lanarkshire, believes the UK

Vape Industry Association needs to sit down with other trade organisations to work out a strategy to ensure vape products are sold legally.

“The disposable vape is here to stay, but if regulations come in, people may turn to organised crime to get them,” he says. “If they don’t do it properly and instead just offer knee-jerk reactions, then we’re going to have issue after issue. We are raising concerns as we have done for years.”

Supplier tips

What suppliers and authorities are doing

“We have launched a new and improved anti-illicit trade website as part of our continued ‘Suspect it? Report it!’ trade campaign to tackle illegal sales of tobacco. The redeveloped website is a valuable resource for information about the illegal tobacco problem in the UK, with the site containing information about the latest developments in illicit tobacco via an updated news page, LinkedIn page and Twitter feed,” says James Hall, anti-illicit trade manager at Imperial Tobacco UK&I.

“Our test-purchasing programmes continue to identify physical and online sellers of illegal tobacco and vapes. Last year, we gathered evidence of more than 230 retail outlets selling illegal tobacco and/or vapes, including 107 in the north-west of England,” says JTI UK’s Ian Howell.

CATEGORY ADVICE FIGHTING ILLICIT TOBACCO

SUPPLIER

VIEW

Ian Howell, fiscal and regulatory affairs manager at JTI UK

“WE recognise it can be difficult to identify an illegal vape at first glance, meaning educating and training staff plays an important part in preventing illicit sales. We’ve mapped out guidance on what to look out for:

E-cigarette tanks should have a capacity of no more than 2ml and refill containers are restricted to 10ml.

The e-liquids themselves can’t exceed a nicotine strength of 20mg/ml and all packaging must be child-resistant and tamper evident.

Disposable vapes claiming more than 600 puffs are likely to be illegal.

Colourings, caffeine and taurine are banned.

“We encourage retailers to visit JTI Advance to access information that helps empower and educate staff and, of course, JTI’s business advisers can assist and offer advice.”

WHAT RETAILERS CAN DO

THE fight against illicit tobacco requires coordination and cooperation between people reporting crimes when they see them, and the authorities taking immediate action against wrongdoers.

While there are several avenues open for retailers to turn to, there is still more that could be done by authorities.

“The illicit tobacco trade causes significant harm to local shops and the communities they

serve, both in terms of posing health risks and undermining legitimate retailers,” says ACS chief executive James Lowman.

“We have urged the government to tackle the illicit market by making use of the existing systems, such as track and trace, which tracks the movement of tobacco throughout the supply chain and the location of all retailers of tobacco products in the UK.

“The government should

commit to providing additional funding for illicit tobacco enforcement, as set out in the Khan Review, and direct this funding to enforcement teams and local authorities to ensure that they have the staffing and resources they need to tackle illicit traders.”

When it comes to illicit vaping, retailers need to ensure they are doing everything they can to educate themselves and staff about what the guidelines,

legislation and regulations are within this category to ensure they are not caught out.

“We recommend convenience retailers dealdirectly with legitimate manufacturers with a solid track-record in smokefree products. This includes, but certainly isn’t limited to, building strong relationships with field reps and ordering stock via a manufacturers’ trade engagement platform,” advises a PML spokesperson.

Top success

Success stores in the fight against illicit tobacco

“In November, HMRC uncovered an illegal cigarette factory in Leicester that could have led to a £130m annual revenue loss. In the first nine months of 2022, Border Force seized 690 million cigarettes and 31 tonnes of handrolling tobacco at the UK’s ports and airports,” says Howell.

“JTI’s Project Talon, which focuses on identifying social media posts that illegally advertise tobacco products, has led to the removal of thousands of such posts from platforms such as Facebook. The project continues to evolve as we develop and implement new review methods to further improve its effectiveness, including Telegram and TikTok,” adds Howell.

“We recently asked MPs to back our calls for stronger powers and additional funding for trading standards to tackle the issue of illegal tobacco,” says Howell. “The government has committed to extending some of HMRC’s powers to trading standards this year.”

“Our internal data in the north-west shows that a focus on enforcement activity has reduced the number of retailers who sell to children during test-purchasing operations, which is definitely a step in the right direction. We would encourage people to continue to report to us when they have concerns,” says Trading Standards’ Kate Pike.

KEEPING ENERGY COSTS DOWN

The RETAIL EXPRESS team finds out how retailers are making crucial savings amid the energy crisis in their stores

1Eugene Diamond, Diamonds Newsagents, Ballymena, County Antrim

“BACK in 2020, I had to close the shop for two months and we used that time to redecorate, invest in the store and do all the jobs that can be quite hard to do when you’re open seven days a week.

“One of the things we did at this time was invest in LED lighting, and I’m so glad we did – we didn’t know there was a costof-living crisis coming down the road at that point. Of course, there is an initial investment, but it’s been worth it.

“We’re saving roughly 30% on our electricity now and, although it’s hard to calculate it exactly because energy prices keep going up and down, making the investment in LED lighting has helped us to bring our energy bills down signi�icantly when you compare it with where they would have been otherwise, which is only bene�icial for us in the long run.”

“WE’VE started switching off our fridges at night except for where food is perishable. The fridge units holding alcohol are switched off at the end of the day.

“We’ve also stopped using our heating and put timers in our stockroom and our toilets, so they automatically switch off when they’re not in use.

“There’s also some investments we’ve made that have proved really useful in cutting our energy bills. We’ve installed solar panels on our roof, saving at least £1,200 each month, and it helps us power higher-energy parts of our store, such as the Subway franchise.

“The sweet shop we own is in the site of an old hotel and still has a meter with a separate night and day setting, which is costing us a lot of money, so I’m currently speaking to our energy supplier to get this updated, too.”

“WE’VE made changes around the store to try and save energy wherever we can.

“When it comes to our air conditioners, we’ve stopped using all three of our units and we’re just using them one at a time, in rotation, to ensure they all stay in good working order. We’re also switching off the heating as much as possible.

“We have traditionally had two freezer units for ice creams and other products, but this year I have condensed this range into one freezer in a bid to further cut and reduce energy costs. I’ve taken the other freezer out and replaced it with shelving that I’m using for high-margin items, including a range of calendars, to help boost spend and become a destination. That space is now making the business money, whereas it would have been a signi�icant cost before.”

In the next issue, the Retail Express team reveals the steps retailers take to find and stock viral products. If you have any problems you’d like us to explore, please email charles.whitting@newtrade.co.uk

Mo Razzaq, Premier Mo’s Blantyre, South Lanarkshire

Amit Patel, Stratford Post Office, east London

Energy prices are continuing to go through the roof. What are retailers doing to combat this?

– Phil Moutray, WM Moutray & Sons, Dungannon, County Tyrone