Retail Express - 22 March 2022

‘GIVE US OUR DIGNITY BACK’ • As the Post Office Horizon inquiry hears damning evidence of lives ruined, former postmasters make fresh demands for fair compensation • Retail Express speaks to five ex-branch owners about the ongoing physical and emotional impact caused by the IT scandal

22 MARCH-4 APRIL 2022 STRICTLY FOR TRADE USERS ONLY

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STOCK UP NOW WITH AN

AWARD WINNING BOTTLE OF BEEFEATER

E N J OY R E S P O N S I B LY

NATIONAL LOTTERY

AVAILABILITY

HFSS LEGISLATION

Camelot loses its Lottery licence to Allwyn Entertainment after three decades

Sales of trendy, viral crisp brand Takis hindered by production issues

Top tips on how to prepare for upcoming junk-food promotions ban

P2

P4

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22 MARCH-4 APRIL 2022 betterRetailing.com

Three-month follow-up:

MERCHANDISING & DISPLAY

INCREASING ICE CREAM SALES

Three months International ago, the IAA and Mondele visited Mo Adam z to discuss how in Aylesbur and seasona merchandising guideline y l displays s Here’s what can improve sales. he’s achieved

IAA ADVICE 1

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Create seasonal store to inspire displays at the front of the purchases.

Use merchandi displays are sing guidelines to ensure easy to shop.

THE RESULTS

out how LYDIA WILKINS findsprofits with retailers can boost ice cream this summer

22 MARCH-4 APRIL 2022 STRICTLY FOR TRADE USERS ONLY

CE THE IMPORTAN OF ICE CREAM

22%

We remerchan The increase in dised our confection confectionery ery display sales category bestsellerand added s. We adapted a front-of-store fixture and inspire customers to focus on seasonal events , resulting in a in confectionery 22% growth sales.

PARTNER ADVIC

THE WINES AND SPIRITS OF SUMMER

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’S THE NAT ION THE STATE M...ITSOF WINE AND SPIR FAVOURIT E ICE CREA 1

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INSPIRE SHOPP TO BUY MORE ERS

‘GIVE US OUR DIGNITY BACK’ • As the Post Office Horizon inquiry hears damning evidence of lives ruined, former postmasters make fresh demands for fair compensation • Retail Express speaks to five ex-branch owners about the ongoing physical and emotional impact caused by the IT scandal P3

NATIONAL LOTTERY

AVAILABILITY

HFSS LEGISLATION

Camelot loses its Lottery licence to Allwyn Entertainment after three decades

Sales of trendy, viral crisp brand Takis hindered by production issues

Top tips on how to prepare for upcoming junk-food promotions ban

P2

P4

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our say

Megan Humphrey, editor

Mental health must remain a priority ALTHOUGH it’s my responsibility to bring together the fortnight’s biggest news stories and features to one place, I’m only able to scratch the surface of finding out what truly is going on in the minds of independent retailers.

This was apparent last week when I had a difficult, yet honest conversation with Sophie Towers, owner of One Stop Kibble Bank in Burnley.

When I first entered the world of convenience four years ago, Sophie welcomed me with open arms, and was always willing to have a chat.

However, when we spoke, she didn’t sound like her usual self. She admitted she’d been feeling low, and was struggling to stay positive, amid ongoing price rises and the state of affairs in which the world finds itself.

She asked whether she could use her platform as one of our Rising Star columnists on page 15 to speak candidly about SHE ADMITTED her struggles, and try to help SHE’D BEEN others who might be feeling the FEELING LOW same way.

Despite being at her lowest, Sophie was still thinking of others, and I want to thank her personally for trusting me enough to open up about her experiences.

It’s not easy to do, but admirable, and important to shine a light on mental health.

Talking of trust, Jack Courtez, editor of Retail Express’ sister title RN, is taking a break for six months. I’ll be taking over his position, leaving you in the very capable hands of my colleague, Alex Yau. Many of you will already know him, and I have no doubt he will use his expertise to continue helping you deal with the issues that matter most. @retailexpress betterRetailing.com facebook.com/betterRetailing Editor Megan Humphrey @MeganHumphrey_ 020 7689 3357

Editor – news Jack Courtez @JackCourtez 020 7689 3371

Features writer Jasper Hart 020 7689 3384 @JasperAHHart

News reporter Suhara Pavithri Jayasena @suharajourno 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

Senior news reporter Alex Yau @AlexYau_ 020 7689 3358

Designer Jody Cooke tim.murray@newtrade.co.uk 020 7689 3380 Magazines reporter Tim Murray Production editor Ryan Cooper 020 7689 3354

Production coordinator Chris Gardner 020 7689 3368

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

Head of design Anne-Claire Pickard 020 7689 3391

Head of commercial Natalie Reeve 020 7689 3372

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 01

Camelot fails to retain UK National Lottery licence

During the bidding process, Allwyn’s lotto giant owner, INDEPENDENT retailers Sazka, said the Lottery needed were left “shocked” last to be “dragged into the digital week after Camelot lost its age” and that it would have a licence to operate the Na- ‘digital �irst’ plan.

Eugene Diamond, owner of tional Lottery.

On 15 March, the Gambling Diamonds Newsagents in BalCommission (GC) announced lymena, County Antrim, startAllwyn Entertainment as its ed operating the service in his preferred applicant for the store in 1994 when Camelot next licence period, due to launched the National Lottery.

He told Retail Express: “I start on 1 February 2024.

MEGAN HUMPHREY

02

Crime investment

RETAILERS invested £71m more in crime prevention measures over the past year, compared to 2021.

The ACS’ 2022 Crime Report, published in March, revealed store owners spent £246m to protect themselves from incidents, with each

will be sad to see them go. I’m worried Allwyn won’t put independent retailers �irst because of their intention to turn things digital.

“If they move too much beyond terminals in shops, the whole concept will lose its community spirit.”

Tenby retailer Vince Malone said Lottery sales at his Post Of�ice (PO) are 20% higher than last year, and he is concerned about the takeover.

03

“I will be challenging PO on what they are going to do with regard to pushing the retail network forward with Allwyn,” he said.

“I also plan to invest in other categories over the next few years to have something to fall back on if the Lottery doesn’t remain as popular if it has a more digital focus.”

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

Illicit tobacco tool

City of London superinstore spending £5,239 on av- A NEW track-and-trace tool erage. This is an additional created to crack down on il- tendent Patrick Holdaway licit tobacco is predicted to con�irmed the expected date £1,515 per year. at the NFRN London disThe top areas of investment go live this summer.

The system created by trict meeting held in March, included security staff, CCTV HMRC uses track and trace to stating the system will and intruder alarms During the year, there were scan seized tobacco products “identify which route” the an estimated total of 35,216 to locate where they origi- stolen tobacco was purchased through. nated from. incidents.

Editor in chief Louise Banham @LouiseBanham For the full story, go to betterRetailing.com and search ‘crime’

Business delivery manager Ifzal Afzal 020 7689 3382 Account manager Marie Dickens 020 7689 3366 Management accountant Abigayle Sylvane 020 7689 3383 Managing director Parin Gohil 020 7689 3388 Head of digital Luthfa Begum 07909 254 949

42,281

04

Hermes rebrand

PARCEL delivery company Hermes has announced a rebrand as ‘Evri’ with a new logo and brand being rolled out across its locations, vehicles and ParcelShops.

The new brand aims to provide investment in its customer service, including

05

PayPoint fee rise

opening a UK-based customer PAYPOINT is to increase the service team and adding 200 weekly fee charged to retailexperts based at local depots, ers by 3.9% in April. close to where issues arise.

The changes will mean the The company will also be weekly price of PayPoint’s upgrading its chatbot, offer- lowest ‘Base’ tier will ining more phone lines that crease from £10.39 to £10.80, enable customers to speak while the cost of the highest directly to someone.

‘Pro’ tier will rise from £31.18

to £32.40, equivalent to an annual cost between £21.12 and £63.24.

Retailers were informed of the fee increase through letters sent by the billpayment company received this month. The fee was criticised by retailers.

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 ‘Evri’

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

@retailexpress facebook.com/betterRetailing

22 MARCH-4 APRIL 2022 betterRetailing.com

megan.humphrey@newtrade.co.uk 020 7689 3357

Ex-postmasters demand justice over Horizon scandal ALEX YAU FIVE former postmasters have demanded fair compensation from the Post Of�ice (PO), following ongoing trauma experienced from the Horizon scandal.

Between 2000 and 2014, 736 subpostmasters were prosecuted by PO for theft, fraud and false accounting due to numbers not adding up on their till system, Horizon. However, a number of the convictions were quashed, after the shortfalls were linked to major IT glitches. Last month, those affected began giving damning evidence as part of a public inquiry.

Further hearings are set to be announced, following the latest session on 18 March.

In turn, �ive ex-postmasters told Retail Express how the impact of being falsely accused still takes its toll on their lives today.

In 2001, Parmod Kalia was given a six-month custodial sentence for theft at Croydon Crown Court, following a £27,000 shortfall at his branch in Orpington, Kent. Kalia told Retail Express the false accusations led to three suicide attempts and prolonged illness.

“I served my time, even though I shouldn’t have been there,” he said. “I’m an introvert now, and I’m still rebuilding my relationships. My marriage broke

down, and I’ve lost all my friendships. My children’s education suffered, and I’ve attempted suicide three times.

“I’ve had to give up driving due to health reasons and I’ve developed Type 2 diabetes. My eyes and mouth now make involuntary movements and I can’t talk to strangers.

“PO has refused to give me interim compensation because they don’t believe Horizon was intrinsic to my prosecution. They should be held accountable. The people who knew all of this are staying very quiet.”

In 2012, discrepancies at Susan Knight’s Cornwall branch had built up to £19,000. She was accused of false accounting and despite court charges being dropped, she can’t erase the torture endured during the process.

“At the time, I needed to make sure someone was in the car with me at all times,” she said. “I wanted to end it. I was so ashamed.

I lost all dignity and belief.

I want PO to see what it’s done. You’ve been proved wrong time and time again.

Give us our dignity back.”

In 2008, Julian Wilson was suspended after his system showed shortfalls of £27,000 at his Redditch branch. PO dropped the charges following a plea bargain and Wilson was sentenced to 300 hours of community service before passing in 2016.

express yourself “WE have been displaying the Ukrainian flag on our digital screen on the front of the shop for three weeks.

We have a couple of Ukrainian families living in the area and they have come in and personally thanked us for doing this. We felt as though we needed to do something as soon as the war kicked off and we have every intention of leaving it up until things calm down, whenever that may be.”

Wilson Rea, KeyStore More, Lanark

03

GOOD WEEK BOBBY’S: Delivered confectionery supplier Bobby’s has announced a new direct-to-store distribution deal with Henderson Group, aimed to expand its reach through Northern Ireland. The expansion is being supported by a new distribution warehouse in the region and a team of field staff. The date of the distribution deal was confirmed as 1 April by Bobby’s national sales development manager, Dave Clarke.

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

Susan Knight

Describing the ordeal, his widow Karen said she believes the stress caused his early death.

“He wasn’t alive to see his name cleared,” she said.

“Prior to his death, Julian went into hibernation and ended up getting diabetes and glaucoma.

“I want to know who signed the prosecutions off. Nobody has come forward. All the rotten eggs need throwing out.”

Former Kent postmaster Tara Adedayo paid £50,000 to PO before being given a two-year suspended sentence for accusations of false accounting in 2006.

She told Retail Express the �inancial pressure had left her battling multiple debts.

“A company with no government backing would never get away with this sort of thing,” she said. “It has affected my children and my marriage broke down. I have become a recluse and I’m no longer

the column where you can make your voice heard

trusting of anyone. I’ve gone from having a bright future to no future.”

In 2008, former Hampshire postmaster Jo Hamilton pleaded guilty to false accounting after the PO accused her of stealing £36,000.

She told Retail Express she has still not received fair compensation from PO. “I’m jumping through legal hoops, even though my claim is realistic,” she said. “[PO] is arguing about where my career is going because I’m nearly 65.

I just want them to sort it out and pay everybody.”

Since the Horizon glitches were uncovered, 72 convictions have been overturned, while 65 interim payments of up to £100,000 have been made.

Last December, PO announced the government would foot the bill for the compensation as the company is unable to cover it itself.

Jo Hamilton

Acknowledging the errors, PO’s new chief executive, Nick Read, said the company had been unable to contact 127 out of the 736 postmasters convicted, and urged them to come forward.

Commenting on the demands, a Post Of�ice spokesperson said: “We are sincerely sorry for past events and providing compensation to victims of the Horizon Scandal is a priority. Interim payments of up to £100,000 have been expedited, ahead of �inal compensation, to the majority of people whose convictions have been overturned and will continue for others. Post Of�ice is working with the government on the arrangements for �inal settlements.”

To read the full interviews of each former postmaster, go to betterRetailing. com and search ‘Post Office’

BESTWAY: Best-one and Bargain Booze retailers have been given access to the Nisa supply chain. It means the majority of Bestway’s symbol stores now have an additional supply source. Purchases made through the Nisa supply chain will also contribute to rebates of up to 6%.

BAD WEEK COSTCUTTER DELIVERY FEE: Costcutter has become the latest symbol group to charge a fee for deliveries to associated stores.

In a message sent to retailers, seen by Retail Express, the fee of £4.88 will be enforced from 28 March. Retailers in Northern Ireland will be charged a levy of 21p per case, instead of the £4.88 fee.

For the full story, go to betterRetailing.com and search ‘Costcutter’ TANGO ICE BLAST: Retailers have been receiving scam calls from thieves attempting to steal Tango Ice Blast machines. In a letter sent to stores, Frozen Brothers, which supplies Tango Ice Blast and Fanta Frozen slush machines, warned of “targeted attempts” to steal freezers.

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

How are you supporting the Ukrainian crisis?

“WE have stopped selling Russian Standard vodka. As soon as the war erupted, we made the decision to remove it from our shelves. We are simply asking for peace for the people of Ukraine. We put out messages on our social media profiles alerting customers of our move to support in some way. The brand is state-owned, so we felt it necessary. Any vodka distilled in Russia won’t be sold.”

Sasi Patel, multi-site Go Local retailer based in Manchester

“WE’VE raised £720 since we started fundraising. I paid £500 into the Post Office Disasters Emergency Committee’s Ukraine humanitarian appeal last week. They are an umbrella group for 15 charities, who provide food, water and medical assistance to fleeing refugees. There are also women in the community making blue and yellow ribbon bows, and knitting them, who are donating the proceeds to us.”

Meryl Pike Williams, Pikes, Porthmadog, Gwynedd

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

Meryl Pike Williams

Viral Takis hit by production issues ALEX YAU

M A K E YO U R M AR K

the trend early and have been selling thousands to customers. They’ve been really popular on social media.

Although they have a more premium cost than some other brands, customers are still willing to pay extra.”

Serge Notay, of Premier Notay’s Convenience in Batley, added: “We’ve probably sold more than 1,000 packets of Takis since we started stocking them before Christmas.

MA K E YO U R MA R K

I’ll be trying to raise sales further by promoting them on my TikTok page. Hypedup products like these are selling well for us these days.

“We are aware that there are production issues affecting availability. We haven’t been too bad as we’ve got a good supplier who has had no problem getting the majority of them in, although I have had issues getting hold of the Blue Heat �lavour.”

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AVAILABILITY in convenience stores of top-selling trendy crisps brand Takis is being hampered by production issues.

Sources close to the brand told Retail Express the issues were impacting distribution in the UK, with no indication of when the delays will end. With prices ranging from £1 to £6.99, the tortilla

chips originate from Mexico and their popularity in the UK has been driven by social media platforms such as TikTok. One retailer, who asked not to be named, told Retail Express the products have an average margin of 50% and they have been bypassing the availability issues by importing directly from North America.

They said: “I caught onto

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22 MARCH-4 APRIL 2022 betterRetailing.com

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NEWS

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MA K E Y O U R M AR K

Promo ban confusion SYMBOL groups have been unable to answer which parts of the upcoming high fat, sugar and salt (HFSS) law would apply to their sites.

From October, all ‘chainrun’ shops (50 or more staff) must ban volume promotions on unhealthy products. In chain stores (with 50 or more staff) larger than 2,000sq ft, HFSS will also restrict the placement of unhealthy lines in key areas, such as checkouts.

ACS guidance urges retailers to contact their symbol group to ask about exemptions. However, when asked, no symbol group could out-

line which parts of the law would apply to their partnered stores.

PAYPOINT MCCOLL’S U-TURN PAYPOINT reverted its decision to temporarily suspend bill payment services in the majority of McColl’s stores, a day after making the announcement.

A spokesperson for the EPoS company confirmed the decision was made on 4 March after talks with McColl’s leadership team over concerns about the fate of the struggling chain.

However, a day later, a PayPoint spokesperson said it had restored services at

the sites, but failed to give a reason for the stoppage.

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

Iqos rep team expands PHILIP Morris International (PMI) has kickstarted expansion of its Iqos sales team across the north of England.

A company rep con�irmed the news to Retail Express’ sister-title RN this month, naming Liverpool as a major region of focus, and intentions to raise awareness of heated tobacco outside of London.

The expansion will be supported by training and education of the brand. Last year, PMI admitted plans to double its rep team beyond the capital, but declined to name speci�ic areas.

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Madrí Excepcional lager JASPER HART MOLSON Coors Beverage Company’s Madrí Excepcional beer, which has a 4.6% ABV, is available for independent retailers to stock after its launch in bars and restaurants in October 2020.

Since its on-trade launch, the European-style lager, a collaboration between Molson Coors and Madrid’s La Sagra brewery, has become a top-10 bestselling

draught world lager in the UK, according to the supplier.

It also has the third-highest rate of sale per outlet in the category.

Its rollout into retail will be supported by a multimillionpound investment in TV, video-on-demand, outdoor and digital activity, as well as in-store partnerships and activations, which will aim to highlight the beer’s heritage as ‘el alma de Madrid’ – the soul of Madrid.

Ryan Mclaughlin, marketing

controller for premium beers, Western Europe at Molson Coors, said the world lager category is going from strength to strength.

“It [Madrí Excepcional] has enjoyed a strong start in the on-trade and has one of the highest rates of sale in the lager category,” he said.

“We’re con�ident it will help retailers drive sales in the off-trade, and will be throwing our weight behind the brand with a multi-channel marketing programme.”

Graze expands Marmite range with on-the-go punnet MARMITE Crunch Punnet is the latest addition to Graze’s healthy snack range, following the launch of its sharing bag format last year.

The sharing format has become one of Graze’s bestselling �lavours, with a �ive-star rating on its website.

The new on-the-go format comes in a 28g pack with less than 150 calories per portion, at an RRP of £1.20.

The brand has marketed it as a healthier alternative to traditional snacks like crisps due to its high �ibre content and vegetable ingredients, and it is vegan and HFSS-compliant.

Country Choice launches Curry and Chilli Potato Dogs

BOOST SALES IN AN YOU COULD HELP GROW YOUR SALES

BY CROSS-SELLING SCRATCHCARDS Many National Lottery players are open to trying a Scratchcard alongside their usual game of choice. Suggesting a fun and easy to play £2 game as an extra treat could encourage them to give Scratchcards a go.

TOnPotToIP ffer

of cust are likelyomers to buy Scratchca with a Lo rds tt ticket o

Why a fun your players card at ch at cr S 2 £ gside the till alon et? their tick

*Source: Hall & Partners – Claimed retail data for 52 weeks (April 2020 to March 2021).

Rules & Procedures apply. Players must be 18+. Scratchcard for illustrative purposes only.

388612 SC March Trade Ad Retail Express 125x150 AW2.indd 1

11/03/2022 12:14

FOOD-TO-GO supplier Country Choice is expanding its Potato Dog range with two new varieties. The new options include Curry and Chilli Potato Dogs.

Both have a crispy rösti potato jacket, and are designed as an alternative to traditional savoury pastry bites. The Curry Potato Dog is a frankfurter-style curry sausage wrapped in a potato rösti, while the Chilli version features a chilli-�lavoured sausage.

The 140g Potato Dogs are available in cases of 20 with an RRP of £2.05. They can be baked from frozen in 20-25 minutes and have a four-hour shelf life in a hot cabinet once cooked.

Brothers launches Cherry Bakewell cider CHERRY Bakewell is the latest variety to join Brothers Cider’s range.

The supplier said cherry�lavoured drinks are growing at 32%, and it therefore expects the new addition to be popular among millennial and Gen Z drinkers, who prefer �lavour innovations.

Available from the end of this month, Cherry Bakewell will come in 330ml and 500ml bottles at 4% ABV, and is vegan and gluten-free.

Nicola Randall, senior marketing manager at Brothers, said: “We are con�ident that Cherry Bakewell is the perfect addition to our range and

one that will continue our momentum as the fastestgrowing �lavoured cider brand in the market.”

betterRetailing.com

PAID FEATURE INDUSTRY CLOSE-UP

22 MARCH-4 APRIL 2022 betterRetailing.com

In partnership with

07

FIVE KEY TAKEAWAYS

BE PREPARED FOR HFSS While industry and consumers realise the need for the new legislation, 43% of businesses don’t feel prepared. GS1 UK is working with the industry to make it easier and more efficient to comply with the new legislation. Sarah Atkins, CMO and membership director at GS1 UK, explains more

THE IMPACT OF HFSS THE new legislation, due to be implemented from 1 October, means products high in fat, sugar or salt (HFSS) can no longer be placed at prime locations in stores, with bans on volume promotions, such as buy-one-get-one-free, and restrictions on digital marketing and advertising.

It affects most businesses selling food or drink, yet GS1 UK’s research found that a fifth are unaware of the changes, with only a third auditing their products and seven in 10 unaware

that volume promotions will be banned.

Forty-three per cent feel unprepared, with just 33% training staff on the new rules, 35% auditing suppliers and 48% reformulating existing products.

Yet, 66% of businesses and 68% of consumers agree on the need for regulation to curb unhealthy eating, suggesting that unpreparedness stems from a lack of standardised processes and not a lack of enthusiasm for the new legislation.

1 2

Just one in three businesses have audited products ahead of the October deadline. GS1 UK’s productDNA platform can help you to get prepared.

A fifth of business owners and managers are completely unaware of the upcoming HFSS legislation and the impact it will have on their business and consumer buying habits.

3

While 81% say the new rules will significantly impact how they operate, 43% feel unprepared and need support in order to adapt.

4

Seventy per cent of businesses are not aware that volume promotions will be banned, which could affect impulse sales.

HELP AVAILABLE ALMOST 50% of businesses are unprepared for the new legislation. To help them beat the October deadline, GS1 UK has joined forces with the UK retail industry to create a free way for manufacturers and suppliers to capture and share HFSS information.

GS1 UK’s productDNA platform is designed and built for the industry using GS1 standards, enabling suppliers to easily capture, manage and share HFSS attributes with multiple retailers at once.

Built-in flexibility allows it to evolve, supporting the industry in increasing data accuracy, adapting to future legislation and meeting shopper demand for product information.

With over 75% of grocery retailers, including Sainsbury’s, Tesco, Waitrose and Partners, Ocado, Asda and Morrisons, already using the product data sharing platform, productDNA is answering the data-compliance challenge created by the HFSS legislation.

THREE REASONS TO USE PRODUCTDNA

1 Designed by the industry The productDNA platform was designed by the industry, for the industry, based on GS1 data standards.

2 Share your HFSS data from one place Product data can be easily managed, shared and received from one location, creating a smoother process.

3 Future-proof your business Meet your business needs to address changing legislation and shopper demands based on accurate product information.

5

Sixty-eight per cent of consumers agree on the need for regulation to curb unhealthy eating, with almost 50% of businesses unprepared for the legislation.

For more information, visit gs1uk.org/hfss or scan the QR code

PRODUCTS

08

Heineken targets Gen Z with Silver lager launch JASPER HART HEINEKEN has launched Heineken Silver, a premium lager aimed at Gen Y and Gen Z drinkers.

The new lager (4% ABV) is available in 4x330ml bottles (RRP £4.50), 12x330ml bottles (RRP £12) and 6x330ml slimline cans (RRP £5.50).

Interest in lager has waned among younger generations.

According to Heineken, although the lager category has grown by 34% since 2019, sales among Gen Z and Gen Y drinkers have declined

by 2%, while penetration among 18-to-24-year-olds has halved in seven years.

The supplier believes the more premium offering meets younger lager drinkers’ changing tastes and can help unlock a £315m value opportunity in the lager category. Heineken Silver is made using a brewing process at -1°C, and has a low bitterness of 10 International Bitterness Units (IBUs), offering a lighter drinking pro�ile.

Alexander Wilson, category & commercial strategy director – off-trade

at Heineken UK, said: “Our research shows growing popularity for premium and lighter-style drinks, particularly among Gen Y and Gen Z, who are looking for quality beverages while moderating alcohol intake.

“As lager under-indexes with Gen Y and Gen Z drinkers, the opportunity is to add lager to their shopping baskets.”

Heineken will support Heineken Silver’s launch with a £20m campaign targeting Gen Y and Gen Z consumers.

Own it with Trebor mints TREBOR is running a new ‘Own it’ promotion, which gives consumers a chance to win £10,000 in cash, alongside other style- and �itness-themed prizes.

The promotion will run throughout the year, supported by a £1.6m campaign including social media, digital and outdoor advertising, as well as PoS support for convenience retailers. Last year, the brand

Retail Express Half Page All Pages

celebrated its centenary with a ‘The big 100’ promotion.

To enter, customers need to enter their contact details and the barcode of their purchase at trebor. co.uk, where they will be entered into the grand draw for £10,000, as well as �inding out whether or not they have won one of the smaller prizes.

New Echo Falls tropical Fruit Fusion ACCOLADE Wines has announced the addition of Echo Falls Sparkling Passion Fruit & Sicilian Lemon to the �lavoured wine brand’s Fruit Fusion range.

The new variety will be available to convenience and wholesale from 28 March.

It has an RRP of £5.50 and 5.5% ABV. Its launch comes as the Fruit Fusion range is now worth £46m, and will be supported by in-store and digital advertising.

Additionally, Echo Falls’ ‘Phone on silent, girls on loud’ campaign, which originally ran during February,

will return in the summer to encourage shoppers to shop the range.

22 MARCH-4 APRIL 2022 betterRetailing.com

Nairn’s makes its TV debut BISCUIT brand Nairn’s is launching its �irst TV campaign, investing £1m into the ‘Nything goes’ ad.

Launching on ITV and the ITV Hub for viewers in London, the south-east and south-west, the advert intends to demonstrate the brand’s versatility and range, highlighting the variety of occasions on which Nairn’s biscuits can be enjoyed and appealing to new and existing customers.

The campaign follows Nairn’s packaging refresh in 2021. There will be further airings of the advert this spring and autumn, which

will be supported by social media ads.

Emma Heath, head of marketing at Nairn’s, said: “We want to engage and welcome

BRITVIC has launched 7Up Free Cherry in a 500ml bottle for the �irst time to capitalise on on-the-go occasions.

Phil Sanders, out-of-home commercial director at Britvic, said: “Considering the success of 7UP Free Cherry to date, and that the initial rollout in take-home formats was one of the biggest new product launches in the category over the past two years, we are con�ident this

momentum will continue in the on-the-go sector, especially as the �lavour is currently worth an impressive £5.7m.”

Britvic will support the rollout with instore PoS material, and launch a wider digital and out-of-home campaign in support of 7Up’s various �lavours, including the new format, from May until the end of August.

new users into our Nairn’s family and bring an unexpected smile to the faces of those who already know us well.”

7Up Free Cherry launched in 500ml on-the-go format

09

Danone rebrands Aptamil Profuture as Aptamil Advanced DANONE Specialised Nutrition has announced the relaunch of Aptamil Profutura under the new name Aptamil Advanced.

The range offers the same formulation for customers, with Danone saying the rebrand is aimed at helping shoppers more easily navigate the premium followon and toddler milk range.

It consists of Aptamil Advanced Infant Milk (From birth), Aptamil Advanced Follow-On Milk (From 6 months) and Aptamil Ad-

vanced Toddler Milk (From one year).

Danone has also used the relaunch to introduce new packaging with 50% less plastic than the previous packaging, as well as a triple

safety seal to preserve freshness.

The range is being rolled out nationwide this spring, with an RRP of £16. Danone is supporting the launch with a £3.5m ad campaign.

Ribena partners with gaming firm Hasbro for on-pack promo

SUNTORY Beverage & Food GB&I (SBF GB&I) has launched an onpack promotion across packs of Ribena in partnership with gaming company Hasbro, giving shoppers the change to win one of 10,000 limitededition Ribena Mini Monopoly boards.

The promotion, running now until the end of May, also offers shoppers the chance to win

thousands of prizes in Hasbro’s range, including Cluedo, Battleship and Jenga.

Promotional packs include Sparkling Blackcurrant (2l), Squash in Blackcurrant, Blackcurrant No Added Sugar Squash (both 1.5l, 850ml, 600ml) and Squash in Strawberry (850ml). Consumers must scan the QR code on the collar of the bottle to enter.

SBF is supporting the promotion with PoS material to help retailers encourage incremental sales.

03/03/2022 17:24

PRODUCTS

10

22 MARCH-4 APRIL 2022 betterRetailing.com

JTI expands Nordic Spirit range JASPER HART JTI has expanded its Nordic Spirit nicotine pouch range with a new �lavour variety, Spearmint, and an ExtraStrong nicotine strength for Bergamot Wildberry.

The launches are both available in an Extra-Strong strength to re�lect the growing demand for stronger varieties in the nicotine

pouch segment.

With Strong and ExtraStrong now making up 72.6% of nicotine pouch sales, and Extra-Strong the fastest-growing strength, the supplier said the latest options will “help retailers provide a range of options for customers seeking a stronger nicotine experience”.

The new Spearmint variety

appetite for fruit �lavours and adds another strength to Nordic Spirit’s growing range, so that retailers can bene�it from this rapidly growing category, which is now worth £2.2m and is growing 40% year on year,” it said.

As with other varieties, the pouches will give retailers a POR of 20% and have an RRP of £6.50 each.

is also the �irst Spearmint �lavour in the segment in an extra-strong nicotine strength. Mint �lavours account for 77.6% of the nicotine pouch category.

The supplier added that although Mint remains dominant, Bergamot Wildberry makes up 63.8% of all nicotine pouch fruit �lavour sales. “The new strength caters to growing customer

ASSESS. COMPARE. IMPROVE

#IAA22

LOOKING TO CONNECT WITH LIKE-MINDED RETAILERS? Join the IAA network today.

Visit betterRetailing.com/IAA or contact Kate Daw on 020 7689 3363

Robinsons launches new RTD variety BRITVIC is launching a new variety of Robinsons Ready to Drink, Blackberry & Blueberry, following the brand’s launch last year.

It is available in a 500ml bottle with an RRP of £1. A £1 price-marked pack is also available.

Britvic says the �lavour will allow retailers to continue to drive on-the-go drinks sales.

Research from Britvic has found that 55% of retailers have added new soft drinks

launches and �lavours to their ranges since the end of lockdown.

Meanwhile, more than two-thirds of retailers agree they are seeing growth in impulse soft drinks sales, and more than a third predict their on-thego drinks sales will exceed pre-Covid-19 levels.

BRITVIC has expanded its soft drinks range with Tango Editions, a sugar-free range that will launch in limitededition periods.

The �irst �lavour to launch under the new sub-brand is Berry Peachy – a peach & raspberry-�lavoured drink.

The new �lavour is available in several formats, including 2l and 500ml bottles, and 330ml cans. It is supported by outdoor, digital and social media advertising, including

in-store PoS. Tango is worth more than £52m, having grown by 13.1% annually, and its sugar-free �lavours represent a third of the brand’s sales. Its last sugar-free release, Dark Berry, has added £8m to the soft drinks category since its launch in March 2021.

IMPERIAL Tobacco will launch limited-edition 21s packs across some of its leading brands exclusively for independents.

Available from April, the range of 21s will be available across Players JPS, Richmond, L&B Blue and Lambert & Butler brands. They will have an RRP of £9.75 for Richmond, £10 for Players JPS and L&B Blue, and £10.80 for Lambert & Butler.

Tom Gully, consumer mar-

keting manager at Imperial Tobacco, said: “Driving value for our customers remains a top priority for our business.

Through this latest launch, we’re offering the same popular blends at great value price points, but in a bigger box format for consumer convenience.”

New sugar-free Tango launched

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12

RETAIL

IN ACTION

As the popularity of iced coffee continues to soar, STARBUCKS shares its top tips on how to make the most of the ready-todrink (RTD) chilled coffee category

PAID FEATURE ONE MINUTE CATEGORY MANAGER

What to stock THE Starbucks chilled coffee range includes a wide range of convenient, on-the-go products that appeal to a broad audience.

Must-stocks include:

Starbucks Doubleshot Espresso RRP: £1.70

Starbucks Chilled Classics Caffè Latte RRP: £1.70

Starbucks Grande Caramel Macchiato 330ml RRP: £2.35

Starbucks Chilled Classics Skinny Latte Lactose Free RRP: £1.70

Starbucks Frappuccino Caramel RRP: £1.90

Starbucks Chilled Classics Caramel Macchiato RRP: £1.70

Starbucks Frappuccino Mocha RRP: £1.90

Starbucks Grande Caffè Latte 330ml RRP: £2.35

Starbucks Oat Based Vanilla Macchiato RRP: £1.70

How to stock it DESPITE RTD coffee being a relatively new UK concept, the pace of category growth has been exceptional. As such, consumers increasingly expect to find these products in the soft drinks chiller.

TOP TIPS Brand recognition is a key purchase driver within RTD coffee. Starbucks is an incredibly recognisable brand, representing close to 50% of all RTD coffee sales1.

1

2

The Starbucks chilled coffee range can help retailers meet a variety of consumer needs, including an energy boost, indulgence, hydration and satiety.

3

Retailers must have an inclusive RTD offering. The Starbucks range includes dairy-free, vegan and no-added-sugar options to help broaden consumer appeal.

3

RTD coffee is an ideal addition to meal deals and linked purchases, so use PoS and signage to highlight your chilled coffee range to drive sales.

Where to stock it CONSUMERS expect to shop with ease, so siting within store is an integral part of whether an offering is successful.

THREE TOP TIPS

1

The RTD coffee category, including Starbucks, should be sited within the soft drinks fixture, alongside dairy drinks and as close as possible to the energy category.

2

It’s important to give RTD coffee lines appropriate space within the soft drinks chillers, with multiple facings a key way to encourage a purchase.

1

MINU

CATEGORY M

STARB

22 MARCH-4 APRIL 2022 betterRetailing.com

In partnership with

13

Drive RTD coffee sales 1

Use PoS front of store and at the fixture to grab shoppers’ attention.

Starbucks can provide retailers a full suite of assets to help achieve this.

1

UTE

MANAGER

BUCKS

2

Retailers should ensure their range is reflective of their customers and have several facings of their most popular lines.

3

Consider executing a promotional plan throughout the year (including link and meal deals as appropriate) to drive rate of sale.

Now shout about it TOPTIPS

1

Use national events and key calendar dates to highlight certain lines. For example, Starbucks Frappuccino chilled coffee for freshers’ week or Starbucks’ Plant Based range for Veganuary.

2

Make the most of social media to highlight meal deals, promotions, new products and limited editions, such as Red Cup, a celebratory pack design for the winter holiday season.

3

Utilise Starbucks, marketing activity and PoS range to ensure customers know where to buy, helping retailers become a destination for RTD chilled coffee products.

Supplier viewpoint Adam Hacking Head of drinks, Arla Foods

“ONE of the most exciting things about this category is the speed at which it is evolving.

Innovative new products are continuously hitting the shelves, keeping this sub-category fresh and relevant as it progresses at pace to match ever changing consumer habits. The demand for multipack and multi-serve offerings are growing, too. The category also offers scope for innovative flavours and limited editions. It’s an exciting time for the category which provides a lucrative opportunity for retailers who want to embrace RTD coffee.”

For more information on Starbucks’ range, visit starbuckschilled.com/uk Nielsen Total Coverage to 01.01.22

1

OPINION

14

RETAILER OPINION ON THIS FORTNIGHT’S HOT TOPICS

COMING UP IN THE 1 APRIL ISSUE OF RN

What do you think? Call Retail Express on 020 7689 3357 for the chance to be featured INFLATION: How have price-marked packs (PMPs) been affected?

“WE’VE seen almost a 5%-to“AT the moment, it seems 10% margin drop in pricecustomers haven’t noticed marked goods. It is no longer the change in weight of £1 sustainable for us. Now we Dairy Milk chocolate bars, have decided for some areas but with the increase on where we can’t get the margin, PMPs, it is bound to go one we are trying to replace the of two ways. Either the PMP product with a non-PMP line. price increases, or the weight We are making a judgement of the product decreases, but call line by line.” the price remains the same.”

Retail crime: the processes that will enable you and your team to report crime quickly and easily

Amit Puntambekar, Ash’s Shop, Fenstanton, Cambridgeshire

Anonymous Booker retailer

+ Preparing for HFSS – promotions and marketing: ideas and advice designed to increase sales

We are making a judgement call line by line

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

PRICE RISES: How are you dealing with the ongoing energy crisis?

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

Those at risk will have to turn off chillers

betterRetailing.com/subscribe

Ferhan Ashiq, Levenhall Village Store, Musselburgh

“IT’S easy to cut costs by taking away staff, but when the shop gets busy, we are the ones who get worn out.

I’m training staff to upsell at the till to increase spend. If I’m able to get an extra 20p at least from every customer, then that will go a long way.”

Rav Garcha, multi-site retailer based in the Midlands

SUMMER: How are you preparing for warmer weather?

“THERE is an opportunity to push drinks promotions during sports events. It is going to be important to make sure customers are aware of our summer drinks and ice cream promotions, so we will advertise them on Facebook and Instagram.”

Jey Sivapalan, 1 Stop – Go Local, Derby

“WE are looking into offers, such as if you buy something, you get a free raffle ticket.

Another thing we will do is make sure our events tie in with charities we work with.

My husband’s charity, Shock Sleaford, aims to cover the postcode with defibrillators.”

Rachael Hockmeyer, Spar Sleaford, Lincolnshire

There is an opportunity to push drinks promotions SUSTAINABILITY: How are you reducing wastage in your store?

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

“FOR many stores, the simple ways of cutting bills have already been achieved.

There’s no more tinkering around the edges to be done.

Those at risk will have to look hard at turning off chillers of non-perishable goods – and at scaling back fresh and chilled ranges.”

Our EPoS tells us our busiest hours

“WE do hot food, and we have our days with high wastage, but we check the data, see when the busiest times are and make sure to fill up at the right times. Our EPoS tells us our busiest hours, so we know we can hit those times rather than filling up our hot plates at the wrong time.”

Nishi Patel, Londis Bexley Park, Dartford, Kent

WE’VE been using an app called Beep. You can insert a product’s expiration date and when you want to be alerted about it. An alarm will go off and list anything on a particular date you’ve set. The full subscription with unlimited entries is £49 a year.”

Stuart McClymont, Mac’s, Mansfield, Notts

LETTERS

22 MARCH-4 APRIL 2022 betterRetailing.com

15

Stop sophie One Kibble Bank, towers Burnley

Letters may be edited

I have to be honest about how much I’m struggling I’M really struggling a lot at the moment. I’m fed up and I’m feeling really demotivated.

I don’t feel the same about retailing as I did when I first opened my shops.

There are so many worries right now, and the way I’m feeling is just the reality.

Things were tough prepandemic, and when that hit adrenaline took over, I pushed One of two leading retailers through because shares her thoughts on the it’s what I had to do. challenges in retail However, now that’s calmed down, it just seems as though there is more to deal with. I just feel like I can’t get a break.

Utility bills are continuing to rise, and next month we are going to have to deal with another hike in national minimum wage. I know I’m not the only retailer that feels this way and I think it’s important to be honest.

I want to advise others to prioritise their mental health. It can feel as though we don’t have time for ourselves.

For example, sometimes when I’m in the shop I want a break from everything, but a customer will come in to buy a paper and want to talk to me about the front page, which is about the Ukrainian crisis. There just isn’t anywhere for me to escape.

It’s also difficult to feel more positive when you try and implement a lot of the suggestions, but things don’t change. I’ve tried to offset the rising energy costs, but nothing I’m doing is helping my bottom line.

I used to do a lot to help my community, but I’m even running out of steam when it comes to that because I feel like no one is taking the time to care about me.

Nobody is loyal to my shop. I know customers are going elsewhere to get the cheapest prices, which I understand because everyone is doing what they can to survive now.

International Women’s Day was earlier this month.

Usually this is something I’d have been really passionate about, but its hard to be proactive when I wouldn’t encourage female retailers to come into the sector as it stands right now.

I don’t see a light at the end of the tunnel. I don’t want this to seem really morbid, but I also wanted to use this opportunity to make others out there who might be feeling the same as me, less alone.

We need to look after each other. I think it’s really important to talk about the difficult parts of life and the job, just as much as it is the positive.

RISING

STAR

‘I got legal advice over F’real notice for machine’ F’REAL sent me the same letter distributed to other retailers, giving notice that they would take away their machines for failing to meet a recommended rate of sale of 10 cups per day.

Londis tried to �ight on my behalf to keep the machine, but F’real said it was taking it

anyway. My solicitors are now involved in the process.

F’real admitted it doesn’t have a formal contract with me, but we agreed in email that I would be given the machine on a ‘free on loan’ basis. I re�itted an area in my shop speci�ically for the F’real machine.

However, there’s nothing in the email stating that I have to sell 10 or more cups a day, which F’real is claiming I have to do in order to keep it. I’m speaking to my solicitor and currently waiting to hear back.

I’ve looked at the option of buying the machine outright, but I’ll see what my solicitor

says �irst. I want to wait and see if I have a case before I explore my options.

Hitesh Modi, Londis Chesham, Bucks F’real was unable to comment as Retail Express went to print

COMMUNITY RETAILER

OF THE WEEK

WIN £50-worth of Angel Delight pots

PREMIER Foods has partnered with Retail Express to give five retailers the chance to win £50-worth of its new Angel Delight ready-to-eat dessert pots. Designed specifically for food-to-go chillers, the new Chocolate & Salted Caramel and Butterscotch & Chocolate flavours are each under 120 calories.

TO ENTER Fill in your details at:

betterRetailing.com/competitions This competition closes 19 April 2022.

Editor’s decision is final.

Premier Mo’s at Blantyre, Lanarkshire – @morazzaq

‘We’re fundraising for the Ukrainian crisis’

WE’RE doing our bit for Ukraine by fundraising. We want to provide food parcels, nappies and baby clothes to those affected, as they’re the most important things. A few groups in the area are doing a really good job and the idea is we will work with them. The local gurdwara has started a campaign to support Ukraine and they’ll be receiving our support. They’re doing a fantastic job. We’ll donate items to them from the shop’s fundraiser and then the gurdwara will send them to Ukraine. We’ve got posters in the shop and we’re continuing to post on Facebook to keep awareness up.

A lot of other retailers are also providing support to those impacted by the Russian invasion of Ukraine.

Get in touch

@retailexpress betterRetailing.com facebook.com/betterRetailing megan.humphrey@newtrade.co.uk 020 7689 3357

16

SUPPLIER ADVICE

CAPITALISE ON CRAFT BEER Despite standard beer declining by 3% versus last year, craft beer continues to thrive. RETAIL EXPRESS joins BREWDOG to find out how retailers can capitalise on the opportunity

CRAFT beer grew in demand following the closure of the on-

trade in March 2020, as shoppers looked to recreate a publike experience at home. Following the surge in popularity, the craft beer category has grown by more than 22% in convenience stores. We joined BrewDog’s head of impulse, Jonny Leece, at two stores to find out how retailers can tap into the opportunity.

BEFORE

FOCUS ON

KELLY BUSBY Londis Seaborn Stores, Bare, Morecambe “WE’RE in a residential area with lots of families, and have become known for our beer and cider range.

We’ve noticed the increase in demand for craft beer, especially since the pandemic, and customers wanting to try something new, but our challenge is offering the right products and pack sizes to cater for our customers. We also need to be competitive on price to match the multiples.”

EXPERT ADVICE

ACTION PLAN

Head of impulse, BrewDog

1

Increase visibility: We merchandised Kelly’s craft beer to drive awareness and encourage new customers to the category, increasing sales.

“CRAFT beer is going from strength to strength, but convenience stores are struggling to understand the key lines to stock and how to merchandise them effectively.

We’re here with Kelly today to help her maximise the opportunity by introducing two key brands to Kelly’s existing range of Punk IPA and Hazy Jane. These are Lost Lager four- and 10-pack, and Elvis Juice four-pack. We’ll site them at eye-level so it’s easy for her shoppers to find and encourage new customers to the category.”

2

Stock bestsellers: We expanded Kelly’s range to include Lost Lager, the fastest-growing lager brand in the top 50 lines currently available to independents, and Elvis Juice.

3

Try new formats: Shoppers are looking for multipacks to save money, so we introduced Lost Lager 10x440ml cans and our 8x330ml selection pack.

JONNY LEECE

22 MARCH-4 APRIL 2022 betterRetailing.com

In partnership with

17

Promotional feature

THE OPPORTUNITY

47%

The share of category sales that the top 10 craft beer lines account for

FOCUS ON

TARSEM SINGH The Pantry Convenience Store (Premier), Oswaldtwistle “WE have a mixture of customers, from working professionals to pensioners, as well as passing trade. Beer and cider is a strong category for us, especially premium beer, but we’re noticing a shift toward craft beer. Our challenge is knowing what to stock. From today’s visit, we’re hoping to expand our knowledge on craft beer so we can advise customers on what to try, helping to drive sales.”

EXPERT ADVICE

21% BEFORE

The brand recognition of BrewDog (the highest within craft beer)

1 2 3

BREWDOG’S TOP TIPS

Stock the bestsellers, including Lost Lager, which is the stepping stone into craft beer.

Offer a range of formats, such as BrewDog’s variety box eight-pack, for shoppers looking to try something new.

Shoppers look for brands they know and trust, so stock recognisable brands, such as BrewDog.

ACTION PLAN 1

Drive trade-up: We remerchandised Tarsem’s premium beer offering, ensuring they are at eye-level, to drive trade-up, encourage shoppers to the category and increase spend.

2

Brand recognition: Shoppers look for recognisable brands, so we introduced three new lines to Tarsem’s range: Lost Lager, Punk IPA and Hazy Jane.

3

Offer multipacks: Six out of 10 formats are sold in multipacks of four or above, so we expanded Tarsem’s craft beer range to include these.

JONNY LEECE

Head of impulse, BrewDog “DEMAND in the off-trade has softened, creating an opportunity for retailers to premiumise their offer, especially within craft beer. Shoppers are trading up, so we’re going to create a zone for Tarsem in store, ensuring his premium offer is at eye-line to drive spend.

Tarsem is also missing some of our bestselling lines and formats, such as four-pack cans of Punk IPA, Lost Lager and Hazy Jane, which are key to bringing new shoppers to the category or driving them to try something new.”

GET INVOLVED

WHAT HAPPENS NEXT? Kelly and Tarsem followed BrewDog’s expert advice over a six-week trial period. We tracked their sales data and will report the results in the next issue.

Keep a look out for Retail Express on

5 APRIL

For more advice and tips, and to see more of Kelly and Tarsem’s stores, go to betterRetailing.com/capitalise-on-craft-beer or scan the QR code

CATEGORY ADVICE SOFT DRINKS

18

IAA #COMMUNITYSTARS

22 MARCH-4 APRIL 2022 betterRetailing.com

The Independent Achievers Academy (IAA) joined SUSAN CONNOLLY, owner of three Spar stores in Wiltshire, to uncover how she’s created a strong, inclusive team by listening to their ideas and how she gets involved in the community

KEY TAKEAWAYS 1

Susan encourages her team to use GroceryAid, who offer emotional, financial and practical support. She also invested almost £25k in CCTV and facial recognition software to ensure her team and customers feel safe.

2

In addition to closing at Christmas, Susan donates any food that will surpass its sell-by date during that period to a local food bank.

Customers can also phone up and request a food parcel if they’re struggling.

3

To boost margin and reduce waste, Susan employed someone to create sandwiches in store, and then distributed this stock to all three stores. Susan also bought her own label machine to comply with Natasha’s Law.

SUSAN’S TOP IDEA “Everything we do is based on our team’s feedback and we’re always open to ideas, too. We might not always do them, but we have an open policy, which helps.”

Read the full coverage of Susan’s session by scanning the QR code or visiting betterRetailing.com/susan-connolly

BOOST YOUR SOFT DRINKS TAMARA BIRCH gives an update on the products stores should be prioritising in this constantly evolving category

THE SOFT DRINKS OPPORTUNITY THE soft drinks market is worth £2.18bn, according to Adrian Hipkiss, marketing and international business director at Boost Drinks. Within this, the sports and energy drinks market is worth £1.6bn, with growth totalling more than £240.3m versus 2021. The fruit juice market is valued at £1.6bn and is expected to grow annually by 3.21%.

The soft drinks category is ever-changing and there are sub-categories to consider when building a strong range.

There are also fast-moving trends retailers need to match to maximise the opportunity.

With summer approaching, it’s time to review your range and ensure it’s meeting important shopper missions, such as flavours, stimulation from the energy drinks sub-category and healthier lines.

Also, don’t underestimate the demand for water and juice drinks during this period, as shoppers look for instant refreshment.

Hipkiss says: “As we move

towards summer, this is when people seek fruity tastes.

For example, flavours make up 38% of stimulation sales within the sports and energy category, and are accelerating at 29% year on year.

“We know 39% of stimulation shoppers make their purchase based on flavour.”

But Lewis Prager, of Bestone Preens in Wakefield, says having the largest range isn’t always the best way to grab sales. Prager says: “It’s easily one of our busiest categories,

but we have shortened the category over time. The reason behind that is I was trying to have all the ranges in and I couldn’t keep up with it.”

Prager worked with his business development manager to reduce the category, focusing on double and triple facings of his top-selling lines, and the improvement to his sales was instant. “Because we were keeping faster lines stocked and can put full cases on, our sales improved so much,” he says.

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CATEGORY ADVICE SOFT DRINKS

20

LOW- AND NO-SUGAR SOFT DRINKS LOW- and no-sugar soft drinks have long been prominent, with sugar-free lines the most sought out for on-the-go consumers (54%), according to Ashok Meyyappan, manager at Glug, a drinks brand launching in the UK in April.

“Given the shifting attitudes to health, customers ideally want natural prod-

ucts without comprising on taste and flavour,” Meyyappan says. “And there are vast sub-categories to consider. For example, fat-free and not from concentrate.”

A spokesperson for Red Bull echoes this trend and says: “Sugar-free varieties have grown penetration by 24.3%, displaying a growing demand

for low-calorie options.”

Within on-the-go, Britvic has expanded its 7UP range with a Cherry variety in a 500ml format.

Phil Sanders, out-of-home commercial director at Britvic, says: “Sugar-free choices are of particular importance in the fruit carbonates segment, having grown 18% in the

past two years.”

Flavour trends are ideal for those looking for healthier options, as many won’t want to compromise on taste. Sanders continues: “Recent research shows that nine out of 10 shoppers say flavour and taste are key considerations when choosing a soft drink for onthe-go missions.”

ENERGY DRINKS “ENERGY drinks have grown by 16.7% since last year and make up more than one-fifth of all soft drinks sales, making them a key sub-category for retailers to focus on,” says Matt Gouldsmith, channel director for wholesale at Suntory Beverage & Food GB&I (SBF GB&I).

To help retailers maximise energy drink sales, SBF GB&I has broken the category down into four simple consumer ‘need states’, which include enjoyable refreshment, uplift & energise, special moments and positive choices.

“Each of these is based on insights and trends that highlight the headroom for growth, and these will continue to dictate the market in the year ahead,” Gouldsmith says. “To increase relevance and expand consumption requires the right pack, in the right place, for the right occasion.”

It’s important to cater to stimulation missions, which account for 23% of all soft drinks value sales. Boost

Drinks’ Hipkiss says: “We recommend approximately a quarter of your soft drinks range and fixture should contain stimulation lines.”

Adrian Troy, marketing director at Barr Soft Drinks, echoes this and says: “Bigcan energy is driving growth at 22%, with flavoured now accounting for more than half of all volume sold, so it’s important retailers offer a wide range of formats to cater to all shoppers.”

Functional drinks are also in demand, as explained by a Red Bull spokesperson. They say: “The consistent performance of functional in the category has ensured sports and energy has remained in growth, with functional energy the fastest-growing segment in the category at 19.6% year to date.

“By offering a wider choice of functional energy lines, from low-sugar options to flavoured varieties, retailers can ensure their outlet appeals to a broad range of shopper behaviours.”

SUPPLIER

VIEW

Adrian Troy, marketing director, Barr Soft Drinks “INNOVATION in the energy category has meant the consumer base has shifted. No longer are energy drinks the reserve of the traditional young male gamers.

“There are 13.9 million people in the UK consuming energy drinks – 36.4% of those are between 15-29 years old and 42.8% are female.

“Because of this shift in demographic over the years, brands need to appeal to a wide range of consumers with a wide range of interests.

“TGI research highlighted that energy drinkers have interests including music, theatre, photography and experimenting with food. While some are gamers, they’re also adventurous and career-driven.”

21

Rubicon Raw Rubicon Raw is made with 20% real fruit juice, as well as caffeine from green coffee beans and B vitamins to provide a big energy hit for consumers. “Launched in February 2021, Rubicon Raw quickly made an impact on the UK’s energy drink market, selling 10 million cans in the first 10 months,” says Barr Soft Drinks’ Adrian Troy.

MORE MULTIPACKS. MORE SALES. ER

IN A ST O HT

RE

Red Bull Sugarfree PMP Exclusively available to convenience stores, Red Bull has launched a sugar-free price-marked multipack to help meet demand for sugar-free soft drink options, with consumers actively seeking a healthier energy boost on the go. A spokesperson says: “Multipacks are also outperforming any other format, 25% MAT and driving 85% incremental growth.”

EV

Jimmy’s Iced Coffee multipack Jimmy’s Ice Coffee has launched its Original Iced Coffee in a multipack format, available in a four-pack. Co-founder Jim Cregan says: “The ready-to-drink Iced Coffees only contain Rain Forest Alliance Certified Arabica Coffee and are poured into all-aluminium cans that will recycle forever.” It’s currently only available in Waitrose, but there are plans to expand in the coming months.

BOU G

Glug Glug is a new premium soft drinks brand, available from April. The range include 100% Pink Coconut Water, 100% Mango Juice, 100% Passion Fruit Juice and 100% Watermelon Juice. The products are 100% natural, fat-free, with no added sugar and are not from concentrate.

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new products

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Lucozade Alert SBF GB&I recently expanded its Lucozade Alert range with the launch of Lucozade Alert Original. The new flavour aims to build on the success of the Tropical Burst and Cherry Blast flavours, which generated £1m in sales in under two months through wholesale and convenience stores.

SOURCE: ¹NIELSEN SCANTRACK, SPORTS & ENERGY, TOTAL GB COVERAGE, UNIT SALES, RED BULL ENERGY DRINK 4 PACK, 52 W/E 19.02.2022. *RED BULL ENERGY DRINK 4 PACK.

CATEGORY ADVICE SOFT DRINKS

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RETAILER

HIGH FAT, SUGAR AND SALT “GIVEN the shifting attitudes to health, consumers ideally want natural products without comprising on taste and flavour, but HFSS will have a huge impact,” says Glug’s Meyyappan.

“Retailers will need to be on the lookout for products that have low-to-zero saturated fat, salt and sugar.

“Retailers can prepare to maintain sales in several ways, such as PoS and having

SUPPLIER

VIEW

a strong in-store visual presence, focusing on exceptional customer experience, implementing click & collect and ensuring they have an online presence.”

SBF GB&I’s Gouldsmith echoes this and says the impact on the industry as a whole will be significant. “We’ll be on hand to support retailers through what it means for them,” he says. “We’ve done the hard work over recent years to put

Paid for by Coca-Cola Europacific Partners

Oliver Crick, category development director, Coca-Cola Europacific Partners “LOW- and no-sugar soft drinks are a big opportunity for retailers in 2022, particularly with the HFSS restrictions coming into force from October. The good news is that 73% of soft drinks value sales already come from HFSScompliant products, meaning soft drinks are ideally placed to fill the spaces on shelves when non-compliant products are relocated elsewhere in store. Visit our trade website, my.ccep.com/topics/hfss, or speak to your CCEP sales rep to find out what the restrictions mean for your store.

“Whether or not your store’s affected by the HFSS regulations, it’s important to retain choice in your soft drinks range. It’s just a question of where and how to locate and promote non-compliant products.

We know there will be some challenges, but there are opportunities, too, and we will work with customers to help them capitalise on these.”

us in a good place ahead of the restrictions coming into force, making the transition as smooth as possible for all our customers.”

While there’s some confusion among retailers on whether HFSS will impact them, it’s important to take note of the restrictions coming into effect.

Multibuys and other promotions will be prohibited, and some stores will need to make changes to their layouts to en-

22 MARCH-4 APRIL 2022 betterRetailing.com

VIEW

sure those non-HFSS-compliant products are in the right areas away from the till.

Lines such as Pepsi Max, 7Up Free (and its new Cherry variety), Coca-Cola Zero and Diet Coke will be exempt in the cola and carbonates sub-category, while Red Bull Sugarfree will be exempt in the sports and energy category.

Lewis Prager, Best-one Preens, Wakefield “ALL limited-edition products and launches come in on Bestway offers and we stock them on our promotional gondola ends, as opposed to making it a dedicated line, and that’s worked better for us.

“Our best lines are Rockstar, Relentless and Red Bull – we stock the full range. We also group sports drinks that aren’t fizzy together. Stocking 30p, 59p and £1 cans creates opportunities to upsell.

“We had every single Monster and Rockstar line, plus the different Coca-Cola lines and limited-editions. It was bonkers, and hard to manage. We regularly had 20-30 cases open in the back to refill from, which was chaotic.

“It tied money up because some lines didn’t sell as quickly as others and our BDM came in and said ‘you don’t need this or that’, and switched them for double and triple facings of our top lines.

“We get reps who try to mess with our planograms, but we stick to Bestway’s planograms. Some reps want their bottles at eye-level. I tell them they work where they are and we make brilliant margin, so we should leave them alone.”

BEST PRACTICE FOR MERCHANDISING AS value takes a more prominent role, SBF GB&I’s Gouldsmith recommends giving drink-later formats more space. He says: “Drink-later soft drinks sales grew during lockdown, so bringing these formats into the main chiller can help to drive sales, particularly around nights in.

“Also, to drive sales, put the biggest sellers on a priority shelf in line with where shoppers’ eyes will be drawn.”

However, Boost’s Hipkiss urges retailers not to forget about the on-the-go market, as it’s a key sales driver in soft drinks, as are linked purchases.

“Placing key impulse items, such as soft drinks, in close proximity to complementary categories, such as food-to-go

and snacking, can be a huge factor in driving cross purchases,” Hipkiss says.

“We also always recommend that soft drinks are chilled, positioned in easily accessible sites within the store, at eyelevel and restocked regularly to ensure optimum sales performance and play to the onthe-go market.”

Prager, on the other hand, removed the soft drinks push mechanisms in store, making room for additional facings.

“They take up a lot of space and by taking them out, we managed to find another 2.5 metres, which is incredible,” he says.

With availability still an issue in some areas, make sure to have a back-up plan in

place. While many customers might prefer named brands, others will happily choose an own-label option if you’re unable to source the right products. If a product isn’t available, whether a big brand or own label, customers will go elsewhere, jeopardising sales.

Similarly, advertising effectively will help increase awareness of what is stocked in store. Alongside PoS to encourage impulse purchases, retailers should put promotions on social media.

On top of this, use the social posts to give information not shown in store, such as when the promotion ends, where it can be found in store and when your delivery will be in case things sell out.

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CATEGORY ADVICE ICE CREAM

22 MARCH-4 APRIL 2022 betterRetailing.com

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INCREASING ICE CREAM SALES LYDIA WILKINS finds out how retailers can boost profits with ice cream this summer

THE IMPORTANCE OF ICE CREAM OVERALL ice cream sales in convenience have total value sales of £828m, according to Michelle Frost, general manager at Mars Chocolate Drinks and Treats.

The pandemic has led to something of a boom in demand for ice cream, thanks to comfort seeking throughout multiple lockdowns.

While the lockdowns are over for the time being, there is little chance that sales will decrease as people look to

treat themselves and their friends and family.

Summer is when ice cream sales become really important, so now is the time for retailers to start thinking about creating and promoting their offer.

“With five ice creams sold every minute in the summer, ice cream is a key product in any convenience store,” says Kenton Burchell, trading director at Bestway Wholesale.

“Ice cream also has a

higher retail sales value than other snacks, and with more than 94% of people snacking more than twice a day, it’s no wonder it results in great sales.”

Every retailer spoken to by Retail Express said that ice cream is “really important” to their business.

However, the incoming cost-of-living crisis is creating a split between customers looking to save and those looking to indulge.

THE NATION’S FAVOURITE ICE CREAM...

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CATEGORY ADVICE ICE CREAM

22 MARCH-4 APRIL 2022 betterRetailing.com

27

UPCOMING TRENDS IN ICE CREAM WE are all more aware that we should be eating more healthily and many of us are beginning to cut out particular foods, such as meat, for environmental reasons.

This is starting to be reflected in customer choices when it comes to ice cream, with particular emphasis on more plant-based and vegan options, which have become more widely available over the past few years.

There is also a desire for luxury and indulgence, after long periods of time spent in multiple lockdowns.

Jose Alves, marketing manager for ice cream at General Mills UK, highlights this.

“Our reports show 36% of

largely exempt from HFSS, has a golden opportunity to drive sales in categories that would otherwise be impacted, so we expect sales in the channel to grow in 2022.”

Sustainable packaging should also be looked at, as this is something consumers are considering more often.

Carte D’Or has transitioned its range to be packaged in responsibly sourced and recyclable packaging paper, compared with previous plastic tubs. Ninety-three per cent less plastic will be used per tub. For customers increasingly interested in sustainable packaging, advertising this fact could be a useful point of difference.

“We’re proud to have made

consumers are treating themselves more than ever. At the same time, we are noticing a more holistic shift to ‘better for you’ products. Shoppers are torn between the push towards healthier living and their desire for comfort and indulgence,” he says.

Bestway Wholesale’s Burchell agrees. He says: “We have also had an increase in vegan and healthier options reaching the market. This has been partly due to suppliers looking to mitigate the impact of high fat, sugar and salt (HFSS) restrictions, but also as a result of the growing trend of consumers embracing healthier food choices. The convenience channel, which is

this move to paper packaging, saving more than 900 tonnes of virgin plastic every year and helping shoppers to reduce their plastic-packaging footprint at home,” says Horacio Cal, ice cream marketing director for Unilever UK&I. Take-home tubs of ice cream were more popular during lockdown, when people weren’t on the move as much. Since restrictions have lifted, however, on-the-go ice cream is enjoying a considerable uplift. However, the take-home market could still prove very important as people look to save money and gather together.

“During lockdown, we had a massive increase in take-home tubs,” says Christine Hope,

from Hopes of Longtown in Herefordshire. “I hope this continues this summer because it is a cost-effective option, that doesn’t require VAT payments.

VAT is just one of the things you need to bear in mind when retailing ice cream.”

Hope also believes dairyfree will be a growing trend this summer, and expects a resurgence in choc ices and Magnums. “They’re a family treat and a surprise winner, usually for nostalgia reasons,” she adds. “One of the things we’re trying to do is have as much choice as possible. Magnum will be big seller again this year.”

Heidi Moseley, from Aberdyfi Village Stores in Gwynedd,

believes multipacks will retain their popularity due to the cost-effectiveness for young families. Her customer demographic is considerably “environmentally friendly” as well, making sustainable options within the category more popular as well.

“Handheld multipacks are a significant driving force in the category and now total sales are £178m,” says Mars’ Frost.

“The past year has had trends that have contributed to our handheld ice creams growing across all channels.

“As the UK continued to predominantly work from home, shoppers are seeing the freezer become an extension of the snack cupboard.”

PROMOTING YOUR ICE CREAM RANGE THERE is no set way to promote ice cream. However, there are some things retailers would be wise to consider for maximum impact while selling, such as using shelf space effectively.

General Mills’ Alves says: “Pair complementary categories together. Cross-merchandising ice cream with alcohol or other sharing-size snacks can often interrupt purchase occasions. This presents an opportunity to up-sell occasions such as nights in.”

Alves also believes that not fixating on particular seasons benefits ice cream fixtures.

Bestway’s Burchell advises planning in advance to maximise potential impact.

“Retailers should begin to roll out promotions from this month onwards once spring hits the scene. It’s worth noting the weather has been get-

ting warmer earlier in recent years, so retailers may wish to start even earlier,” he says.

“Single ice creams tend to be an impulse purchase versus multipacks and tubs, which are usually part of a bigger buying mission. The most important thing is to make sure your ice creams are visible and customers can see what they want. Bring ice cream to the top of customers’ minds with branded cabinets and PoS materials. Place your cabinet in a visible location, stock the core lines all year round and include new products when possible.”

With upcoming HFSS regulations to consider, suppliers will be responding, perhaps with a greater focus on healthier ice cream options.

While the HFSS regulations will have a significant impact for affected retailers when it

comes to impulse sales at the till, most suppliers are confident the ice cream category will not be as greatly affected as other categories, as it is something people tend to actively seek out.

With this in mind, retailers should consider making their ice cream offer more of a major installation rather than a tillside impulse. Or they could look into the healthier products being launched.

“Suppliers are looking into healthier ice cream options and offering different pack sizes, but this category is largely driven by indulgence, so customers will still be on the lookout for their favourite ice cream even if they do not see it promoted,” says Burchell.

“It also presents a fantastic opportunity for the channel to gain market share from the multiples.”

...BUT NOT AS YOU KNOW IT

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ACADEMY IN ACTION

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new releases

Häagen-Dazs Gelato range General Mills’ Häagen-Dazs Gelato range is expanding to include a Fudge Brownie flavour. There has also been a format expansion of the Caramel Swirl. RRP £4.99.

Three-month follow-up:

ENVIRONMENTAL SUSTAINABILITY In November, the IAA and JTI UK visited Suraj and Tejal Agath in Oakham to discuss how small sustainable changes can help improve their environmental impact.

We find out what’s changed

IAA ADVICE 1

Investigate offering recycling options for customers, such as a battery collection.

2

Ask customers in store and online what products they’d like to see loose.

3

Talk to suppliers about how they can help you be a more sustainable store.

70%

THE RESULTS

The decrease in plastic used since offering loose fruit and veg

We asked our customers their thoughts on offering fruit and veg loose before speaking to our supplier about delivering our products loose. Since doing this, plastic within the category has reduced by 70%.

PARTNER ADVICE Sustainability continues to grow, and Suraj and Tejal have made a great start on their sustainability initiatives by working with their supplier to reduce plastic and will have a positive impact on the environment.

Ruth Forbes Sustainability Director JTI UK

MINIMISE YOUR ENVIRONMENTAL IMPACT Call us on 020 7689 0500 or scan the QR code to find ways to run a more sustainable business and find out how you can improve

Häagen-Dazs Summer Cocktail Collection General Mills UK has brought back Häagen-Dazs Cocktail Collection Lime Mojito Sorbet and Pina Colada pints.

A mini-cup format was also made available exclusively in Co-op this month. RRP £4.99.

Skittle Stix Mars brings Skittles branding to ice cream with this flavoured ice cream that has a ‘secret sugar-pearl centre’. It has an RRP of £2.50 for a four-pack and £1.50 for a single. It is available in an impulse format across convenience and wholesale from this month.

Starburst Ice Lolly The new juicy flavour of Starburst is available for the first time in the UK in a lime, orange & strawberry lolly with a jelly base. It has an RRP of £2.50 for a four-pack and £1.50 for a single. It is available in an impulse format across convenience and wholesale.

CLASSIC

REMIX WHITE CHOCOLATE & BERRY

REMIX ALMOND

REMIX

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ACADEMY IN ACTION

CATEGORY ADVICE WINES & SPIRITS

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Three-month follow-up:

MERCHANDISING & DISPLAY Three months ago, the IAA and Mondelez International visited Mo Adam in Aylesbury to discuss how merchandising guidelines and seasonal displays can improve sales.

Here’s what he’s achieved

IAA ADVICE 1

Work with suppliers to understand what works to co-ordinate displays in store.

2

Create seasonal displays at the front of the store to inspire purchases.

3

Use merchandising guidelines to ensure displays are easy to shop.

THE RESULTS

22%

The increase in confectionery sales

We remerchandised our confectionery display and added category bestsellers. We adapted a front-of-store fixture to focus on seasonal events and inspire customers, resulting in a 22% growth in confectionery sales.

PARTNER ADVICE Mo has increased sales by adding the category’s bestsellers and creating excitement by introducing seasonal displays. Following category merchandising and display advice really does help to capture the shopper opportunities.

Susan Nash Trade Communications Manager Mondelez International

INSPIRE SHOPPERS TO BUY MORE Call us on 020 7689 0500 or scan the QR code to pique interest with your displays and find out how you can improve

THE WINES AND SPIRITS OF SUMMER CHARLES WHITTING finds out why premium alcohol is set to keep customers coming back for more as the weather gets warmer

THE STATE OF WINE AND SPIRITS WINES and spirits may not be growing at the rate they did during the pandemic, but they are still on the up year on year.

“While this growth is predicted to slow down over the coming months, sales of beers, wines and spirits (BWS) has risen by 9% compared with 2019,” says Tom Smith, marketing director, Europe, at Accolade Wines.

“Still wine is worth £1.3bn within the traditional convenience channel, but is experiencing a slight decline in

sales over the past year, after experiencing a boost from last year’s lockdown.”

Customers are also more knowledgeable about these products now. Lockdowns allowed them to spend a bit more on wines and spirits they drank at home, and many now have a thirst for information, quality and recommendations.

“Education plays a big part,” says Vesanti Jesani, from Cellar 57 in Atherton, Manchester. “If you know the product, you’ll know what will sell.

“It’s always nicer to have that bit of banter with customers and find out what they’re looking for, and then you can

make a recommendation. I recently sold someone who came in looking for Grey Goose a Crystal Head vodka.”

CATEGORY ADVICE WINES & SPIRITS

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SUMMER FLAVOURS AND COCKTAILS WHILE premiumisation might be on the rise, retailers should also be thinking about customers making cocktails at home this summer, and stocking the products that are essential for a home bar.

“Last year, before Christmas, we sold lots of cocktail products – stuff like grenadine and Kahlúa,” says Kam Nijjer, from Budgens Meriden in Coventry. “Now the weather is better, we’ll be selling that again. It became popular in

the lockdowns and, while it’s not as much as it was then, there’s still been an uplift from normal years.”

Nijjer also notes the interest in gin, for so long the darling of the spirit world, is fading somewhat, but growth continues in the category and is driven – like vodka, rum and even whiskey – by flavoured varieties.

This is a trend Lauren Priestly, head of category development, off-trade at Diageo, has

top tips

also noticed. “Gin has been a key player for some time, driving the biggest growth in spirits, with flavoured varieties making up 45.8% of total value share. We expect this momentum to continue,” she says.

“Pink gin has been one of the driving forces behind the category’s growth, offering a sweeter taste profile and encouraging customers to try different options within the wider category.

“Flavoured vodka is experi-

encing the fastest growth within the vodka category, having increased by 30% compared with last year.”

Jesani adds: “Summer is really good for flavoured vodka and flavoured rums. People like to experiment when it’s sunny. They like the fruity flavours. It’s a refreshing drink.

“You go from selling whiskies and vodka to fruit vodkas.

This summer, Jameson Orange will make a splash because it’s refreshing with some ice in it.”

Top wine merchandising tips from Accolade Wines Offer a broad range across all colours and formats, as well as stocking key brands.

Stock key origins. Australian wine remains an origin pillar for accessible prices in convenience. France and South Africa represent the fastest-growing countries of origin.

Make sure white wines and ready-to-drink cans are chilled for immediate consumption.

Highlight appropriate gifting options and cater for seasonal changes.

Place popular brands front and centre.

Link with shopping missions, meal occasions and latest trends to help products stand out.

Offer educational snippets to help shoppers make informed purchase decisions.

PRICE CONSIDERATIONS PRICING your wine and spirits range requires thorough consideration of your customer base, as well as national trends.

“The biggest volume of wine sales within convenience comes from the core price range of £6-8 and should be at the heart of any retailer’s wine category,” says Accolade’s Smith.

Nijjer’s store is in an affluent village and he stocks wines on the shelves selling for £50 and wines behind the counter priced at £200.

His reputation for wine has grown in the vicinity beyond his competitors, but he still

market insight

Findings from Pernod Ricard UK’s (PRUK’s) half-year update Flavour will continue to thrive. PRUK expanded its Beefeater range early last year with a Peach & Raspberry flavour, with plans to invest in the range this year.

The average selling price of PRUK spirits has increased to £17.75 (70cl) versus £14.78 total market spirits.

For wine, the H1 value share of off-trade wine increased by 3.2% versus 3.6% last year.

There was a decline of light wine in H1, probably due to the closure of the on-trade, but the average price of wine has increased to £7.41.

Sauvignon Blanc and Malbec will be the growth drivers in H2 for grape variety. New Zealand and Argentina will be the same for country of origin.

Ready-to drink (RTD) cocktails have grown rapidly in the off-trade. RTDs have grown by 15.2% in the off-trade and PRUK value share of pre-mixed drinks is 4.1%. PRUK’s value growth of pre-mixed drinks is 26.4%.

Malfy gin has grown by 17%, Jameson by 6% and Havana Club by 18%.

stocks affordable favourites.

“We sell the bestsellers we hear about. But we have an exclusive range on the top shelf if people want something a bit nicer. We give them that choice to upgrade,” he says.

“We don’t stick with the normal brands everyone has.

A nicer bottle you might not find everywhere, so it’s a bit of an exclusive, and they know that and will come back,” Nijjer says.

Jesani recommends thinking about the margins as much as the price, and she lowers her prices where possible.

“It’s buying at the right price and then working out

the margin so you can make a profit while being able to offer that price. It’s always better to sell it through at a reasonable price as long as you’re making a margin.”

PROMOTING YOUR WINES AND SPIRITS WITH high fat, sugar and salt (HFSS) legislation due to come from October, affected retailers might consider replacing non-compliant products at their gondola ends with wines and spirits, given the potential for impulse sales. If they are promoted, either through price or recommendation, they can prove a valued replacement for HFSS products.

Nijjer stocks all his white and rosé wines in the chiller to make them easy to find and im-

mediately appealing to drink.

“Wine is also a highly spontaneous purchase; 28% of shoppers entering convenience stores never intend to buy wine and instead make an impulse decision to purchase the category in store,” says Smith.

“Providing communication that is clear and encouraging will help consumers and will provide a rich opportunity for retailers to amplify their sales.”

Wines and spirits are hugely important for parties

and gatherings, which will be experiencing a huge rise this year, so retailers should focus their promotions around these events.

Retailers should seek supplier support and PoS for national holidays like bank holidays, the Platinum Jubilee celebrations or Father’s Day, while they should look to their staff and customers for inspiration for more localised events or individual gatherings. Both offer the chance for cross-mer-

chandising promotions.

Diageo’s Priestly says: “Focusing promotions around key dates in the year can be a great way to increase sales. For example, Easter is one of the most significant trading occasions in the year and presents a key opportunity for retailers to help adults celebrate the long bank holiday weekend.

“Data shows us shoppers are willing to spend more over Easter, and 39% of spirits and beer shoppers report this.”

84% of Super Premium Beer Drinkers would try Stella Unfiltered ©2022 AB InBev UK Limited, all rights reserved.

Source: Nielsen Quick Predict Unfiltered Results, 2021, n=200

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CATEGORY ADVICE HFSS

34

GET READY FOR HFSS This October will see many stores forced to make drastic changes due to new legislation affecting the promotion of junk food. JASPER HART outlines what retailers are doing to prepare

THE LOWDOWN ON HFSS THE upcoming restrictions on products high in fat, sugar and salt (HFSS) could lead to some of the most significant changes to UK food and drink retailers in decades.

The rules, set to come into force this October, will limit the placement and promotion, including digital and in-store promotions, of HFSS products, with the aim of reducing uptake of unhealthy products as part of the government’s strategy to tackle obesity.

“It’s estimated that up to

50% of convenience stores will need to comply with restrictions on location and display, limiting HFSS products’ ability to disrupt the shopper and drive impulse purchases,” says Oliver Crick, category development director at CocaCola Europacific Partners (CCEP).

This could mean many will need to review ranges, and remerchandise – with some needing to update layouts.

A wholesale market report from Lumina Intelligence at the start of 2022 found 54% of

independent retailers had not heard of the legislation. This may be understandable, given the thousands of stores that won’t be directly affected by restrictions, but the wider effect on suppliers and wholesalers means every convenience retailer should be aware of the potential impact on products and customer attitudes.

“A lot of stores are exempt and can carry on as they have been doing, but they won’t be able to because there will be a shift in consumer tastes

and behaviour,” says David Gilroy, managing director of Store Excel, a digital platform for independent retailers, and former operations director at Bestway.

“Suppliers will want to push products that comply with legislation, and that will permeate the supply chain to all retailers. I don’t think they will run twin strategies for affected and unaffected stores.”

HFSS what restrictions does it enforce?

Extra free and buy-one-get-one-free promotions will be banned.

Multibuys (two for the price of one) will be banned.

HFSS products will be barred from secondary locations in stores, such as gondola ends, store entrances and checkouts.

The legislation also prohibits the marketing of HFSS products on TV (pre-9pm) and online.

22 MARCH-4 APRIL 2022 betterRetailing.com

RETAILER

PREPARATION PRODUCTS targeted by the restrictions are important to convenience retailers – namely, crisps, confectionery, soft drinks and ice cream.

Many retailers are used to featuring a lot of these categories in gondola ends and around the till area, and are unsure how to prepare.

“It’s a huge fundamental change to our business, but we can’t sit down and work it out because we haven’t been given

enough detail,” says John Stevenson, who runs three Nisa forecourts across Teesside and North Yorkshire.

“Traditionally, the runup to the till has been confectionery for the past 30plus years.”

Gilroy says suppliers and wholesalers have an “education job” on their hands to help retailers. “Most of them have joint business plans with key suppliers and biannual

VIEW

supplier meetings. They will know what’s planned, and that should be giving signals and clues as to how the market’s going to be adjusted, and in so doing there’s an education job for the wholesalers to give the retailers.”

Steps are being made in this direction: the Association of Convenience Stores has released a guide for retailers to navigate the upcoming regulations, while Unitas Wholesale

RANGING AND REFORMULATIONS BETWEEN now and October, changes to supplier ranges and wholesaler promotions will evolve. Some retailers are taking a reactive view as a result.

“We’ll wait until the eleventh hour before we make any moves, purely because of the amount of legislation in the past that has been delayed, and from a trade perspective we want to keep selling chocolate bars at the till for as long

as we’re allowed,” says Jack Matthews, of Bradley’s Supermarkets in Quorn, Leicestershire. “I’ve never seen anybody sell apples at the same speed as chocolate bars, so, from a retail perspective, it’s a massive challenge.”

In some categories, retailers may not have to work too hard to remove HFSS products from affected areas. Lucozade Energy, Lucozade Sport, Ribena,

Orangina and Lucozade Alert ranges are all HFSS-compliant and exempt from the new rules, says Matt Gouldsmith, channel director, wholesale, at Suntory Beverage & Food GB&I. Similarly, Britvic has announced a cut in sugar content in six of its Rockstar energy drink lines to make them nonHFSS. Retailers should look out for similar reformulations in coming months.

has confirmed it will launch an online tool later this year that will allow its customers to identify non-HFSS products. Unitas is following in the footsteps of fellow wholesaler Pricecheck, which launched its own guide last November.

Any retailers who think they will be affected should be in touch with their wholesalers and business development managers to see how they can best prepare.

John Stevenson, Nisa Local Stockton-on-Tees, Teesside “WE don’t have enough detail to commit to these decisions because they will inevitably involve new shelving, getting rid of gondola ends and turning them into aisle ends – it’s very difficult. Hopefully, in the next two-tothree months we should have something definitive to go from.

“In my mind, provided we know before July, that gives us enough time to make a bit of a plan. If we need to order new shelving and fixtures after July with the rest of the country doing it at the same time, that’s going to be a bit of a problem.

“There is an opportunity for naked food at the counter. We could have croissants or hot dogs, as long as they’re not prepacked, or a Costa-style cake counter at the front, or scooped ice cream.

“I was in Norway late last year, and in the 7-Elevens there, their counters are all food-to-go based, so maybe we need to look at Europe for a bit of a different counter.

In the UK, we’ve always steered away from the fresh counter, we like stuff with a bit of a date on it, but we have to change our mindset with this change in the law.”

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CATEGORY ADVICE HFSS

36

AN OPPORTUNITY FOR CHANGE AMID rising energy bills, an unreliable supply chain and a precarious global geopolitical situation, the HFSS legislation can all too easily feel like an unnecessary means of making retailers’ lives harder.

One retailer Retail Express spoke to has made plans to reduce their shop floor size to less than 2,000sq ft to avoid having to adjust their gondola ends and till space. But for those who are unable to make that sort of change, there are ways to look at the legislation

as an opportunity to evolve their store.

For example, Jeet Bansi, at Londis Meon Vale near Stratford-upon-Avon, sold 30 trays of eggs from a local supplier in the area near the till where he usually stocked jam doughnuts, making successful sales and a 40% margin. Meanwhile, Scott Annan, retail consultant at Blue Ananta, believes the legislation gives retailers more of an opportunity to carve out their own identity through proprietary fresh products – he

INSPIRATION cites Northern Irish convenience stores as being ahead of the curve in this regard.

“I was in Moran’s Centra Strand Road in DerryLondonderry, and you don’t find HFSS products on promotional ends,” he says.

“All you find is fresh products, rolls, salads and sandwiches, and soups in the winter. It’s healthier, it’s proprietary and you can’t buy it anywhere else. With proprietary fresh, you can have margins from 80-100%.”

SOME supermarkets have already begun trialling layouts for a post-HFSS landscape.

Sainsbury’s opened a 2,293sq ft store with large signs featuring recipe ideas where gondola ends would normally be, giving the store a more spacious feel and encouraging more grocery spend. Meanwhile, in Tesco Extra stores in Leicester and Royston, gondola ends are now devoted to canned fruit and veg, fruit juice and even household categories such as

toilet roll and detergent.

“We anticipate aisle ends and gondola fixtures being used in many different ways going forward, with 30% of convenience shoppers saying they would like to see their store using such space to place healthier products together, and 18% suggesting products on end of aisles and banner adverts being limited to only healthier products,” says Lucy Ingram, retail analyst at IGD. Another key convenience category that will be un-

touched by the legislation is alcohol. Bryan Roberts, retail analyst at Shopfloor Insights, advises that retailers could follow in the footsteps of continental European stores and increase the alcohol representation on their gondola ends.

Additionally, products made on-site that are HFSS may be exempt, such as pick ’n’ mix (technically not pre-packaged) and freshly baked goods, although there will be more clarity on these products as the October deadline nears.

HFSS who is affected?

Stores over 2,000sq ft will be affected by promotional and location HFSS restrictions.

Stores under 2,000sq ft but with 50+ employees will be affected by promotional restrictions, but exempt from location restrictions.

Unaffiliated stores under 2,000sq ft will be exempt.

Symbol or franchise stores should get in touch with their symbol to confirm whether or not they will be affected.

EXPERT

VIEW

John Dolman, shop design manager, SPEC Retail “OUR store designs all have to incorporate HFSS legislation, which is definitely changing the way we’re doing things. Ice cream freezers used to have an obvious place by the front door, but we’re kind of doing away with those, because when you start putting them on their own in gondolas, they take up a ton of space and it doesn’t justify it at all.

“I haven’t known a store design in the past 12 months I’ve done that’s incorporated a maxivision freezer. We’re now going back to putting ice creams into the regular ice cream display in freezer sections.

“We’re looking at the idea of ‘nesting’ products.

A dedicated impulse or seasonal section that’s easy for shoppers to find in an area that is compliant with the new rules could be a way to mitigate the loss of sales.”

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2022 SO FAR As we enter April, RETAIL EXPRESS finds out how stores are performing and what they are intending to focus on next

This year is going to be very challenging and uncertain. Where do retailers stand on the year ahead? – Dhanesh Amin, One Stop Stoke Aldermoor, Coventry

1

Pratik Patel, Jay’s Budgen’s, Crofton Park, London

“TRADING has been good so far this year. It’s really about building on that foundation of the footfall we created during the lockdowns by focusing on our local credentials. It’s now about looking after that by keeping on top of products and keeping the attention on you with new products.

“Seasonality will also be key, as well as how retailers can maximise in-store theatre and offer something different. People really like that. You’ve got the standard events such as Mother’s Day and Easter. They’re good opportunities to have an impact on your customers and sales, but you’ve also got to look at what’s happening locally.

“We’re teaming up with a couple of neighbourhood initiatives and children’s charities. Lewisham is the Borough of Culture this year, so we’re trying to partner with them and do a few things as well.”

2

Meten Lakhani, Premier St Mary’s Supermarket, Southampton

“IT’S been a hard start to the year so far, although January is always iffy. We’ve been steady and done okay. A lot of prices have gone up and we’re �ighting there. Then there are delivery charges from Booker that we have to pay. But you have to be careful what prices you’re putting up in your store because you don’t want to put them up too much when customers’ budgets are stretched. Everyone has a different view and it’s important to consider your position and your customer base. If you’re the only store in your village, you might be able to put prices up, but we’re in an urban site near lots of multiples, so we have to stay competitive, but we’ve been in this situation before.

“People are cutting back on small things, so it will be hard for shopkeepers. We’re going to have to think of some magic tricks to increase pro�itability. I’ve not been into food to go much, but I think I’ll have to dabble in it a bit more.”

3

Umang and Seema Shah, Tudor Library, South Croydon

“THE past two years haven’t gone too badly. We have a post of�ice as well, which provided really good business. Greetingscard sales and newspaper delivery were also very good. But after April, after everything goes up price-wise, will people have the spare money to spend or not? That’s a concerning point because we can already see people cutting down on things such as cigarettes and magazines.

“There’s always a new development that we don’t want. It’s one thing after another. We advise retailers to read the trade press so they know what’s happening and can prepare.

“We want to make a Facebook page for our store and do advertisements to bring in more customers. We also want to make sure we’re getting on top of cash-and-carry promotions as often as possible. We try to �ind offers on products with longer dates that we can buy in bulk and sell for good prices.”

In the next issue, the Retail Express team finds out how retailers are finding and hiring new staff.

If you have any problems you’d like us to explore, please email charles.whitting@newtrade.co.uk