RETAIL
THE WEEK IN
MENTHOL BAN
LOCKDOWN EASING AHEAD ONLINE I.D. CHECKER WHAT DOES ‘LOCAL’ MEAN?
DECISION TIME FOR SMOKERS M A K I N G2 0 2 0A M I N T KNOW EVERYTHING YOU NEED TO ATE THE TO SUCCESSFULLY NAVIG MENTHOL BAN
RETAILER INTERVIEW
SEIZE THE OPPORTUNITY
ADVICE THOUGHT LEADERSHIP
NOW IS THE PERFECT TIME TO INVEST
20th May
The date the new ban comes into force
LEGISLATION RESEARCH
YOUR OPTIONS AFTER MAY 20TH: Q TOBACCO Q VAPING Q TOBACCOE FREE NICOTIN POUCHES Q FILTER TIPS
D
Q LEAF WRAPPE CAPSULE CIGARILLOS
Q MENTHOLATED CARD INSERTS
IATION WITH JTI
OOK IN ASSOC
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THE WEEK IN RETAIL
EDITOR’S COMMENT SHARE YOUR NEWS AND VIEWS WITH ME AT ABEGLEY@55NORTH.COM
IT’S DECISION TIME FOR MENTHOL SMOKERS Well, it’s finally here. It’s been the usual shambles with very little support for retailers and absolutely no customer-facing communications from the government, but as of midnight last night the Menthol Ban is here. It’s actually unfathomable how a government can introduce legislation that affects literally millions of consumers without actually going to the bother of telling them about it. As usual, it’s been left to retailers to tell the estimated 26% of consumers that smoke menthol or capsule cigarettes that they can’t get their usual fix as of today. As usual, it’s retailers that will be left to deal with the flak at the tillpoint. It all sounds so depressingly familiar. Coronavirus clearly hasn’t helped either. With so much going on for everyone to contend with, flagging up the Menthol Ban to consumers has slipped way down the priority list. So what will today bring? Well, the answer to that isn’t clear at all. The only studies I’ve seen so far (both by JTI) are basically surveys of retailers asking them what
they think their customers will do. All good and well, but what they think customers will do and what customers actually do might be two very different things. The latest survey, carried out in the last couple of weeks, suggested that more and more retailers are coming around to the idea that most menthol and capsule smokers will simply switch to a plain version of the brand they already smoke. That’s been the view of the major tobacco manufacturers all along. If that turns out to be the case, we won’t see the major swing that many are predicting into vaping, reduced risk products, cigarillos, RYO and the various other menthol solutions now on the market. Interestingly, the number of consumers that retailers expect to quit altogether has also fallen in the time between the two studies with only 6% of menthol and capsule smokers now predicted to quit altogether. The category’s famed resilience looks set to see it through yet another huge challenge, with another massive helping hand from retailers.
ANTONYBEGLEY ANTONYBEGLEY @ANTONYBEGLEY
ANTONY BEGLEY, EDITOR
WEDNESDAY 20TH MAY 2020 / ISSUE 5 / SLRMAG.CO.UK / 3
Make your order from your
Rep!
Bagged Sweets, Shaker Cups & more! To order or open an account, Contact Shaun Spendlow: 01506 420007 shaun.spendlow@bobbysfoods.co.uk www.bobbysfoods.co.uk
CONTENTS
WEDNESDAY 20TH MAY 2020 / ISSUE 5 WWW.SLRMAG.COM
6 THIS WEEK’S NEWS IN BRIEF
10
18
HOW’S YOUR WEEK BEEN… AVTAR SIDHU?
MENTHOL ARITHMETIC
The Kenilworth Budgens retailer is enjoying stellar sales, in no small part due to his home delivery service.
Imperial Tobacco’s UK Market Manager Chris Street has some advice to help retailers maintain menthol customers and add sales.
COVID-19 UPDATE
14
PICKS OF THE WEEK
25
A ROUND-UP OF THE LATEST CORONAVIRUS
15
JTI MENTHOL SURVEY
ONLINE AGE VERIFICATION COULD PROVE
NEWS FROM THE LAST SEVEN DAYS.
WHAT DO RETAILERS THINK MENTHOL
VITAL IN THE AGE OF HOME DELIVERY.
LICENSING UPDATE
SMOKERS WILL DO AFTER THE BAN?
The Menthol Ban goes live across the UK, while the Deposit Return Scheme passes into law north of the border.
8
11
SHOULD RETAILERS IN SCOTLAND BE
RESEARCH: LOCAL SOURCING
DEPOSIT RETURN SCHEME
AS INTEREST IN PROVENANCE GROWS,
ALLOWED TO SELL ALCOHOL TO KEY
WHAT’S NEXT FOR SCOTLAND’S RETAILERS
WHAT DOES ‘LOCAL’ MEAN TO CONSUMERS
WORKERS AT 8AM?
NOW DRS IS OFFICIALLY HERE TO STAY?
EXACTLY?
TWITTER.COM/SLRMAG
21
28
OUT THE BOX
WWW.FACEBOOK.COM/SLRMAG
WWW.SLRMAG.CO.UK
WEDNESDAY 20TH MAY 2020 / ISSUE 5 / SLRMAG.CO.UK / 5
NEWS DIGEST
THIS WEEK’S NEWS FOR ALL THE LATEST NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
NISA ADDS 37
DEPOSIT RETURN SCHEME
Nisa has completed a deal
DRS PASSES INTO LAW, DESPITE LATE SWA CHALLENGE
with forecourt specialist
THE SCOTTISH GOVERNMENT VOTED LAST WEEK TO PASS DRAFT
Ascona Group that will see 37
DRS REGULATIONS, DESPITE AN 11TH HOUR PLEA FROM THE
sites being supplied by Nisa
SCOTTISH WHOLESALE ASSOCIATION.
FORECOURTS
Retail. Despite coronavirus,
Draft regulations for a Deposit Return Scheme in Scotland were passed by the Scottish Parliament late last Wednesday [Insert link to Tomra page], paving the way for the introduction of the controversial scheme in July 2022. The Scottish Wholesale Association had made an 11th hour plea to MSPs to halt the scheme and instead revisit it after the coronavirus pandemic had passed, but this fell on deaf ears.
12 stores have already moved across and the remaining sites will migrate over as current contracts end with other suppliers. The stores range from 88sq ft to 3,000sq ft.
Regional Manager
(Scotland and Northern England) Motor Fuel Group, the UK’s largest independent petrol station operator, is looking for a Regional Manager based in Scotland to lead a team covering around 100 contract managed sites, using your skills and experience to grow the business across fuel, food to go and store ranges. Candidates will need: • A proven record of deliveringxxx standards and performance across multiple sites in the independent, motor fuel or grocery multiples sector. • To have successfully developed and managed a regional team. • Great commercial acumen. • The ability to communicate and influence a range of stakeholders. • Strong financial planning and control skills. In return we offer a competitive salary and benefits package. Visit www.motorfuelgroup.com go to the Vacancies section and apply online now!
6 I SLRMAG.CO.UK / WEDNESDAY 20TH MAY 2020 / ISSUE 5
NEWS DIGEST
THIS WEEK’S NEWS FOR ALL THE LATEST NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
TOBACCO LEGISLATION
MENTHOL BAN GOES LIVE
CAMELOT THANKS PLAYERS National Lottery players across the country are receiving a chorus of ‘Thank Yous’ in a special National Lottery TV
THE MENTHOL BAN WENT LIVE AT MIDNIGHT LAST NIGHT WITH AN
advert airing this week. The
ESTIMATED 26% OF SMOKERS NOW HAVING TO FIND ALTERNATIVE
Thank Yous are from some
PRODUCTS.
of the frontline projects and organisations who are helping
Midnight last night saw the so-called Menthol Ban come into force across the country with all menthol and capsule cigarettes now prohibited from sale. Imperial Tobacco estimates 26% of all smokers had previously chosen menthol or capsule products and will now be forced to seek alternatives. A recent survey of local retailers found that most now believe the majority of menthol and capsule
smokers will simply switch into plain versions of cigarettes from the brand they used to smoke, with retailers predicting that only 6% of smokers will quit entirely. Meanwhile, recent research among 1,000 UK menthol smokers by Vape Club, one of the UK’s largest online vape retailers, found that 39% will quit smoking, with nearly a fifth (18%) indicating they will switch to vaping to do so.
the nation through the current crisis and have received National Lottery funding.
NEW PAYPOINT BOSS PayPoint has appointed Nick Wiles as Chief Executive. Wiles has been Chairman for the past five years. Lewis Alcraft, currently Chief Commercial Officer, has been
JTI TO TAKE BACK T&T AND MENTHOL STOCK Today marks the one year sell-through period for non-compliant Track & Trace products and JTI has announced that it will take back all non-compliant Track & Trace JTI stock, as well as all Menthol and Capsule JTI stock held by every retailer visited by its sales reps. JTI aims to uplift this stock within 12 weeks from the time its reps return to the trade. Ross Hennessy, JTI’s UK Sales Vice President, said: “Whilst the
current Covid-19 situation is clearly unprecedented, we are determined to continue to support our trade partners through this period of uncertainty and JTI sales representatives are in constant contact with their retailers via phone.” Retailers are advised to keep all stock that needs swapping separate from other stock. For further assistance, call your JTI representative or the customer care line on 0800 163503.
promoted to the position of Chief Operating Officer.
ASDA SEES 3.5% HIKE Asda has reported a 3.5% rise in like-for-like sales for the first quarter, thanks to coronavirus stockpiling and growth in demand for its online delivery services; Asda.com received more than 3,500 visits per minute during the week beginning 18 March.
WEDNESDAY 20TH MAY 2020 / ISSUE 5 / SLRMAG.CO.UK / 7
NEWS SPECIAL
COVID-19 UPDATE FOR ALL THE LATEST CORONAVIRUS NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
CLICK & COLLECT TECH Tech firm Graticule Personalistaion is launching a unique ordering platform to help smaller retailers trade more safely and effectively during the Coronavirus pandemic. Forage Lite will enable customers to order, pay for, and pick up orders without having to come into the store and is being offered free to retailers.
‘WE ARE OPEN’ MAP The Independent Retailers Confederation has launched a ‘We are open’ online directory
SPAR SCOTLAND SIGNS UP WITH SNAPPY SHOPPER SPAR SCOTLAND WHOLESALER AND RETAILER CJ LANG HAS PARTNERED WITH FELLOW DUNDEE-BASED HOME DELIVERY APP SNAPPY SHOPPER.
S
par Scotland has announced a new partnership with online grocery delivery app Snappy Shopper following successful trials. Designed specifically for the convenience sector, Snappy Shopper facilitates 30-60 minute grocery delivery at in-store pricing across a full range of product categories. Colin McLean, CEO at Spar Scotland, said: “Spar stores are playing a very important role in local communities around the country by helping the vulnerable and those who are self-isolating. With the addition of the Snappy Shopper app, it will make our Spar stores even more convenient by us being able to quickly deliver essential items to consumers without them ever leaving their homes.” Snappy Shopper currently works with over 300 Spar stores across the UK.
to promote small shops still open for business. Shops are invited to add themselves to the interactive map at: www. weareopen.uk/register.
DROP & GO SURGE Drop & Go, the Post Office’s fast track service for businesses and online sellers sending parcels, has seen a 30% increase in use since midMarch as small businesses seek new ways to continue trading during lockdown.
8 I SLRMAG.CO.UK / WEDNESDAY 20TH MAY 2020 / ISSUE 5
‘SHOP LOCAL, SHOP LITTLE’ GAINS BIG MAGS’ BACKING NFRN’s ‘Shop Local, Shop Little Campaign’ has gained support from some leading magazine titles. Ads for the campaign have recently appeared in some of the UK’s top-selling lifestyle magazines published by Bauer Media Group including Take a Break, Bella, That’s Life and TV Choice. Shop Local, Shop Little adverts have also gained national newspaper coverage appearing in the likes of the Sunday Mirror, People, Daily Express, Daily Star, Daily Mirror, Sunday Star, Daily Mail and The Daily Telegraph.
Further information about the NFRN’s Shop Local, Shop Little campaign can be found online. Point your browser towards: www.nfrnonline. com/protect/covid-19-informationadvice/
NEWS SPECIAL
COVID-19 UPDATE FOR ALL THE LATEST CORONAVIRUS NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
SCOTTISH LOCKDOWN ‘MAY BE EASED’ THIS MONTH
ASDA TRIALS VIRTUAL QUEUING As part of social distancing measures during the coronavirus pandemic, Asda is trialling a new virtual queuing system which allows shoppers to log in to a queue remotely and wait in their cars until they reach the front of the virtual queue before entering stores.
FM NICOLA STURGEON SAYS LOCKDOWN MEASURES MAY BE EASED FROM 28 MAY, SUBJECT TO A NUMBER OF CONDITIONS DUE TO BE
S
PUBLISHED IN A ‘ROUTE MAP’ TOMORROW.
cottish First Minister Nicola Sturgeon has announced that coronavirus lockdown measures in Scotland could begin to be lifted from 28 May with a ‘route map’ set to be published tomorrow. This would mean people could meet someone from another household if social distancing is maintained. More outdoor activities such as sports will
also be allowed. Sturgeon also confirmed that coronavirus testing will be extended to everyone in Scotland over the age of five who is displaying symptoms, although priority will still be given to key workers, including local retailers and those they live with. Current lockdown advice in Scotland will remain in place for the time being, however.
The trial is taking place at Asda’s Middleton store near Leeds. Asda research shows that two-thirds of customers are still concerned about safety in supermarkets.
United Wholesale (Scotland) has struck a deal with Glasgow-based technology firm DrinkSorted to allow up to 1,500 convenience stores in Scotland to introduce a home delivery service. The move will make DrinkSorted one of the largest home delivery platforms in Scotland following its launch in 2019. UWS and DrinkSorted expect to handle over 250,000 orders each month, with an average basket spend of £22. The DrinkSorted app will be made available to stores which are part of the
United Wholesale network, including its chain of 500 Day-Today and USave shops, and around 1,000 independent convenience stores. Chris Gallacher, MD of UWS, said: “Scotland’s convenience stores have been at the heart of their local communities throughout the coronavirus pandemic and with the addition of the DrinkSorted app, it will make our retailers even more convenient for customers with quick delivery of essential items without them ever leaving their homes.”
TECH SOLUTIONS
UWS UNVEILS HOME DELIVERY DEAL
WEDNESDAY 20TH MAY 2020 / ISSUE 5 / SLRMAG.CO.UK / 9
NEWS SPECIAL
COVID-19 LICENSING UPDATE STEPHEN MCGOWAN, HEAD OF LICENSING, TLT SOLICITORS
SCOTTISH PARLIAMENT REJECTS 8AM OFF-SALES PROPOSAL THE SCOTTISH PARLIAMENT YESTERDAY REJECTED AN INNOVATIVE PROPOSED AMENDMENT BY MURDOCH FRASER MSP TO ALLOW RETAILERS TO SELL ALCOHOL FROM 8AM TO ALLOW KEY WORKERS TO AVOID QUEUES AND CROWDS. TLT HEAD OF LICENSING STEPHEN MCGOWAN ANALYSES AN
T
INTERESTING DEBATE IN PARLIAMENT.
he Coronavirus (Scotland) (No.2) Bill is working its way through the Scottish Parliament with the same velocity as the first and will soon become law. One of the interesting licensing vignettes of the Bill was a proposed amendment during the Committee Stage 2, made by Murdo Fraser MSP yesterday. The idea was to allow off-sales premises to sell alcohol from 8am instead of the current earliest time of 10am. The genesis of this amendment, according to Fraser, was a desire expressed to him by his constituents to allow greater shopping flexibility for vulnerable persons and key workers who had been encouraged to shop earlier to avoid crowds and queuing. The idea of relaxing any sort of law concerning alcohol sales is always going to provoke reaction. During the short debate, Monica Lennon MSP pointed to the perceived impact of alcohol consumption on immunity while Michael Russell MSP pointed to some technical issues with the proposed amendment. There was some support from the Liberal Democrats, with Alex Cole-Hamilton MSP backing the concept on the basis it was a temporary measure in unusual times. He also offered a view that the restriction of licensed hours “is rather ineffective in tackling Scotland’s unhealthy relationship with alcohol”, although that was not explored further.
10 I SLRMAG.CO.UK / WEDNESDAY 20TH MAY 2020 / ISSUE 5
In the end, what was always going to be a controversial proposal did not gain traction. Mr Fraser pressed the amendment, and the vote was six to three against. It is doubtful this will resurface. What is sometimes forgotten in debates around offsales times in Scotland is that the creation of the 10am rule was entirely arbitrary. It was not based on any evidence or assessment, but plucked out of thin air at the last minute. When Parliament debated this part of the Act, it was widely acknowledged as one of the most undignified sessions Holyrood had seen or has seen since. Instead of an open-ended approach, a number of alternatives were raised in the debating chamber, including 8am to 3am. Ultimately, a proposal by Frank McAveety MSP to go for 10am to 10pm won out. Mr McAveety’s proposal was based purely on anecdotal evidence that harmful drinkers using a treatment facility in the Saltmarket area of Glasgow would resort to local shops at 8am to buy alcohol and that they were drinking harmfully. While I present no view on the desirability of allowing off sales from 10am or 8am, law making should be based on probative evidence. There is also an important difference between causation and correlation when it comes to alcohol availability and consumption, which has been well-aired in other places.
RETAILER INTERVIEW
AVTAR SIDHU BUDGENS KENILWORTH
HOW’S YOUR WEEK BEEN...
AVTAR SIDHU?
THINGS ARE FINALLY BEGINNING TO SETTLE DOWN A LITTLE FOR KENILWORTH BUDGENS RETAILER AVTAR SIDHU BUT SALES REMAIN STELLAR, IN NO SMALL PART DUE TO HIS HOME DELIVERY SERVICE AND VAPING OFFER.
HOW’S YOUR WEEK BEEN SID? It’s been very busy, as you’d imagine, but it’s probably the first week where I’ve started to see things settling down a little. That’s not say volumes have dropped but they’ve levelled off a little. Stock availability is also getting back to much better levels and it all seems to be a bit more under control.
BUT SALES ARE STILL STELLAR? Oh, absolutely. The numbers we’re doing at the moment are just not even comparable with what we were doing before the pandemic and the store-
to-door side of the business is flying.
HOW MANY HOME DELIVERIES ARE YOU DOING? We probably average between 40 and 50 a day and the basket spend is around £45. It’s pretty incredible really. We use Snappy Shopper – it works really well. We first heard of them at SLR’s #ThinkSmart event years ago, actually. I always thought home delivery was something the convenience sector could really get hold but I suppose coronavirus has simply accelerated that process. The solutions from companies
WEDNESDAY 20TH MAY 2020 / ISSUE 5 / SLRMAG.CO.UK / 11
RETAILER INTERVIEW
AVTAR SIDHU BUDGENS KENILWORTH
Ha ha! Yes, we’re involved in the local Covid-19 Community Group which is supported by the Local Authority and Council. It basically exists to support everyone in our community that needs help. Part of what they do relates to ensuring people get access to the food and drink they need. They have a small call centre that takes orders from people in the community that need some help. They used to buy the stock from Waitrose but for some reason that didn’t work out, so they moved to us which is fantastic. The call centre takes the orders, passes them on to us and we get them ready. Then they get collected for delivery by the Community Group’s ‘Street Champions’ who look after three or four streets each. It’s a really vital service for vulnerable members of our community.
DO YOU TREAT HOME DELIVERY AS A SEPARATE DIVISION OF THE COMPANY? Yes, we pretty much do. We have four people who are dedicated to the home delivery side and we have one full-time driver and one part-time driver.
WILL IT OUTLAST CORONAVIRUS?
like Snappy Shopper make home delivery a commercially viable option for retailers.
AND YOU’VE PINCHED SOME BUSINESS FROM WAITROSE?
12 I SLRMAG.CO.UK / WEDNESDAY 20TH MAY 2020 / ISSUE 5
I believe so. We didn’t get involved in home delivery just because of coronavirus. We saw it as a real, long-term solution to grow the business. Yes, we’ll lose some customers to supermarkets and so on once coronavirus goes, but I think we’ll retain a lot of them. We’re getting orders from 10 and 15 miles away and as long as we keep offering a great range at good prices there’s no reason why they would stop ordering in the longer term.
IS A LONG-TERM APPROACH KEY THEN? It’s more than key, it’s absolutely mission critical.
RETAILER INTERVIEW
AVTAR SIDHU BUDGENS KENILWORTH
You’ve always got to be planning ahead and keeping one eye on what the future will bring. Coronavirus has effectively shone a spotlight on our sector and given us a chance to demonstrate our value to communities. The retailers who can turn that into long term growth will be the ones who are responding quickly to changing shopper needs and listening to their customers. You’ve got to keep investing in the future, in terms of both money and time.
SPEAKING OF WHICH… Yes, we’re doing a mini-refit in a month’s time. I know it seems like a strange time to be doing a refit but what shoppers want from the store has changed dramatically so we want to make sure that the space devoted to each category in-store is in relation to that new demand. I believe this is the perfect time for retailers to invest. Stores are doing well and there’s some money around to move things along and demonstrate to shoppers that you’re investing and improving the store for them all the time.
HOW’S THE VAPING SECTION OF THE STORE DOING? Again, it’s another category that we’ve long believed will make a huge difference to the longterm future of the store. We built a very large ‘store within a store’ vapeshop with a big range, touch-screen ordering and so on. Coronavirus has meant lots of specialist vapeshops have closed so the big growth we were already seeing has just sky rocketed. We see customers from miles and miles away and it all helps grow sales, footfall and profits.
ANYTHING ELSE IN BIG GROWTH? Fresh and chilled is just exploding, presumably because customers don’t want to go to
supermarkets. But I think coronavirus has given us a huge chance to showcase our range and value to new shoppers who might never have thought of visiting us before. Hopefully now that they’ve been in and seen the store’s standards, the big range, the great value and experienced the customer service they’ll stay with us for the longer term.
WHAT DO YOU THINK THE LEGACY OF CORONAVIRUS WILL BE? In a funny way, it’s taken us back to the values of 50 or 60 years ago. Community spirit, helping each other out and realising what’s actually important. It’s obviously a horrendous situation but in some ways this whole crisis could end up being a good thing for humanity to help us all reset a little – and you’ve got to look for the positives, haven’t you?
WEDNESDAY 20TH MAY 2020 / ISSUE 5 / SLRMAG.CO.UK / 13
NPD AND MEDIA
PICKS OF THE WEEK TO GET YOUR PRODUCT LISTED PLEASE CONTACT RAITKEN@55NORTH.COM
LOWER PMP RANGE
BOTANICALS BOOST
CARBON CLARITY
CCEP has reduced the RSPs
Echo Falls, the UK’s number
Quorn is adding Carbon Trust
on its cola PMPs. 1.75l bottles
one fruit flavoured wine brand,
‘Farm to Fork’ carbon footprint
of Coca-Cola Zero Sugar now
is adding a new range this
certified data to the packaging
come in £1.75 PMPs; 1.5l
week. Echo Falls Botanicals
of 13 of its products from June,
bottles of Coca-Cola Original
will be available in two flavours
with more to follow as part of
and Coca-Cola Cherry are now
in 750ml bottles: Melon & Mint
the brand’s ‘Step in the Right
£1.95 PMPs; and 500ml bottles
and Raspberry & Lavender.
Direction’ campaign which
of Coca-Cola Zero Sugar and
Both are ABV 5.5%.
is being spearheaded by TV
Diet Coke are now £1 PMPs.
RSP: £4.50
commercials.
FANTASY FIRST
CHEESY STV DEAL
CAMPO VIEJO PMP
Premier Foods is partnering
Lactalis is building on the
Pernod Ricard UK has set
with Tesco Group (including
success of its Galloway STV
aside plenty of stock for local
Booker) to unveil a limited-
sponsorship with a new
retailers as it launches a
edition range of 24 Batchelors
campaign in 2020 promoting
PMP of its Campo Viejo Rioja
products celebrating the launch
Galloway cheddar products
Tempranillo, the UK’s number-
of video game Final Fantasy
as the perfect ingredient for
one red wine. The brand is
VII Remake. Every pack offers
family cooking. The campaign
currently growing ahead of the
a chance to win game-related
is expected to reach 80% of
Spanish wine category.
prizes.
adults in Scotland.
RSP: £7.99
14 I SLRMAG.CO.UK / WEDNESDAY 20TH MAY 2020 / ISSUE 5
RESEARCH
THE MENTHOL BAN JTI RETAIL SURVEY
‘MOST SMOKERS WILL REMAIN BRAND LOYAL’ A BRAND-NEW SURVEY BY JTI HAS FOUND THAT MORE THAN HALF OF ALL RETAILERS EXPECT MENTHOL AND CAPSULE SMOKERS TO REMAIN BRAND LOYAL WITHIN THE CIGARETTE CATEGORY
A
AFTER TODAY’S MENTHOL BAN.
fter many months of anticipation, today’s Menthol Ban means that we will finally begin to see answers to the vital question of what menthol and capsule smokers actually do now their products of choice are no longer available to buy. Opinions have been divided but a very recent survey by JTI indicates that over half of all retailers have now come around to the idea that menthol and capsule smokers will simply switch to plain versions of the cigarette brand they already smoke. The survey found that over half (52%) of retailers expect adult smokers to remain brand loyal within the ready-made cigarette (RMC) category; 31% believe their customers will switch to vaping or other reduced risk products; 11% think they will switch to roll-your-own (RYO); and just 6% expect adult smokers to quit the category altogether. The results show a significant shift in thinking amongst retailers compared to a previous survey carried out by JTI earlier in the year, with 27% more retailers now believing that their customers will remain brand loyal within the RMC category (52%
vs 25%) and fewer assuming smokers will switch to vaping (31% vs 45%), RYO or quit. Mark Yexley, Communications Director at JTI UK, comments: “The results highlight the need for retailers and their staff to be knowledgeable about all of the products available once the ban is in effect.” The initial survey carried out by JTI in February this year also highlighted the need for further education and additional support for retailers on the specifics of the legislation. The recent findings paint a more positive picture with 89% of retailers surveyed now feeling fully prepared for the upcoming legislation. Yexley continues: “Our research shows that since its launch back in February, JTI’s dedicated Menthol Ban microsite and educational material sent directly to stores has provided much needed support and guidance for retailers across the UK, helping them to get to grips with what’s to come.”
The latest retailer predictions: Q 52% of retailers think menthol and capsule smokers will remain brand loyal within the cigarette category Q 31% believe they will switch to vaping or others reduced risk products Q 11% think they will switch to roll-your-own Q 6% expect smokers to quit altogether
For more information retailers can contact their rep, visit JTI’s dedicated microsite www.JTIAdvance.co.uk/MentholBan2020, or call the Customer Care Line on 0800 163503.
WEDNESDAY 20TH MAY 2020 / ISSUE 5 / SLRMAG.CO.UK / 15
PRODUCT SPECIAL
THE MENTHOL BAN SWAN MENTHOL FILTERS RANGE
SWAN MENTHOL FILTERS OFFER A QUALITY ALTERNATIVE HELP IS AT HAND FOR RETAILERS LOOKING TO OFFER MENTHOL CIGARETTE SMOKERS PRACTICAL
A
SOLUTIONS AND ALTERNATIVES FROM TODAY.
s part of its biggest ever NPD programme, tobacco accessories specialist Republic Technologies (UK) Ltd has introduced three menthol filters as part of a range of six new SKUs from the market-leading Swan brand. The tobacco accessories category in Scotland continues to outperform total tobacco, with the £29.5m category growing at 0.8% and filters up 5.9% year-on-year [IRI, Feb 2020]. “We know menthol cigarette smokers have a strong preference for the distinctive flavour and will be looking for quality alternatives from today,” says Gavin Anderson, Republic’s General Sales Manager. “As they do, they will be turning to retailers throughout Scotland for advice and guidance. Our three new menthol filters are already proving really popular, providing the choice, quality and menthol flavour delivery which enable smokers of factory-made menthol cigarettes to easily transition to menthol filters. “And generally speaking, as rising numbers of smokers are looking at alternatives to factory made cigarettes, and the emerging vaping sector is still under close scrutiny, timely, category-boosting NPD of this kind enables retailers to meet demand amongst menthol smokers whose preference is to continue with their preferred flavour.” The three new menthol filters in the Swan range comprise: Q Cool Menthol Extra Slim: a sister product to the bestselling Swan Menthol Extra Slim in a pocket-sized pack containing 120 filters. This product delivers a cool menthol flavour. RSP £1.09.
Q Cool Burst Crushball: in a two-part sliding pack containing 54 filters, this crush capsule delivers a cool menthol flavour sensation. RSP £1.29. Q Fresh Burst Crushball: this crush capsule delivers a strong peppermint flavour and also comes in a two-part sliding pack containing 54 filters. RSP: £1.29. In addition, the company has added three other SKUs which enable Scottish retailers to enhance their tobacco accessories offer: Q Swan Graphite Filter: 100% biodegradable, this extra slim filter is made with carbon paper and delivers the ultimate in filtration. RSP £1.14 (120 per box). Q Swan Long Extra Slim Filter: developed to reduce the amount of tobacco required per cigarette, this is the longest-ever Swan filter (50% longer than the standard 14mm Extra Slim Filter). RSP £1.03 (80 per box). Q Swan Eco Loose Filter: 100% biodegradable and the most environmentally friendly filter on the UK market. Natural ‘ochre’ coloured, due to no bleaching of the paper. It degrades three times faster than standard cellulose acetate filters. RSP £1.39 (200 per box).
WEDNESDAY 20TH MAY 2020 / ISSUE 5 / SLRMAG.CO.UK / 17
PRODUCT SPECIAL
MENTHOL BAN IMPERIAL ENHANCED & EXPANDED RANGE
IMPERIAL ADAPTS RANGE TO CATER FOR MENTHOL
SMOKERS
IN PREPARATION FOR THE MENTHOL BAN WHICH WENT LIVE AT MIDNIGHT LAST NIGHT, IMPERIAL TOBACCO HAS ANNOUNCED A RAFT OF ENHANCEMENTS AND A BRAND NEW PRODUCT TO HELP RETAILERS MAINTAIN MENTHOL CUSTOMERS AND GROW SALES. WE CATCH UP WITH MARKET MANAGER UK CHRIS STREET TO FIND OUT MORE.
THE MENTHOL BAN IS NOW LIVE CHRIS AND IMPERIAL HAS BEEN BUSY DEVELOPING ITS RANGE TO HELP RETAILERS MAINTAIN MENTHOL SALES. CAN YOU TELL US ABOUT THAT? It’s clearly a difficult time and we recognise the incredible lengths traders up and down the country are going to in order to keep the nation going during the Covid-19 pandemic. Despite the many challenges currently being faced within the retail industry, changes linked to the menthol ban will continue as planned. From today, all crushball and menthol cigarettes will be banned from sale. Our latest product developments are designed to help retailers cater for their menthol and crushball customers by offering them new innovations from their brands of choice.
WHAT ARE THOSE DEVELOPMENTS? We recently announced product enhancements for five of our brands, as part of the new Green Filter range, plus we’ve also launched a brand-new product, JPS Bright, to help retailers maintain menthol customers and grow their sales.
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CAN YOU TELL US ABOUT THE GREEN FILTER RANGE? Featuring across five of our leading brands, the new Green Filter range includes the same consumerendorsed tobacco blend the brands are famed for, but with product enhancements to ensure they meet the needs of shoppers transitioning from menthol. The new features include a white-tipped firm filter that retains its shape and structure until the end of the smoke and delivers a smoother, more consistent smoking experience. Plus, the addition of special Reduced Smoke Smell (RSS) paper which is designed to reduce the linger of smoke smell on clothes or fingers.
WHICH BRANDS ARE INCLUDED? The new Green Filter variants are being launched across JPS Players, Carlton, Windsor Blue, Richmond and Lambert & Butler ranges.
WHAT ARE THE RSPS? All the new SKUs are available to buy now in packs of 20 sticks with a recommended selling price of £8.95, although retailers are obviously free to set their own prices.
PRODUCT SPECIAL
MENTHOL BAN IMPERIAL ENHANCED & EXPANDED RANGE
WHY THE NEW TIPS? Our findings highlight that many menthol consumers would reject a cork tip so we’ve used white filter tips and specialist RSS paper to deliver great appeal to these shoppers when they switch.
WHAT IS YOUR ADVICE TO RETAILERS? Retailers should make sure they’re stocked up on the full Green Filter range to allow them to offer menthol consumers a product designed specifically for them from their brand of choice. Smokers can couple the range with our recently launched Rizla Flavour Infusions, which will enable them to enjoy a familiar mentholated experience, while also providing incremental sales opportunities for retailers.
WHAT IS THE NEW PRODUCT YOU MENTIONED? The newest addition to our portfolio is JPS Bright which has a premium two-piece white stream filter tip that reduces the harshness of the smoking experience, while allowing a full rounded tobacco flavour to flow more freely. As with the Green Filter range, the addition of a white-tipped filter and RSS paper will ensure the product resonates with menthol consumers. The range features a new, premium Virginia tobacco blend that has tested positively with consumers. The unique quality blend offers a rounded taste
profile that is less bitter than traditional Virginia blends and designed to suit the taste palates of menthol smokers. The new range will be rolling out soon in super king size packs of 20 sticks with an RSP of £9.65.
WHY HAVE YOU CHOSEN TO EVOLVE EXISTING BRANDS RATHER THAN CREATE NEW ONES? Brand loyalty has always been a strong purchase driver in tobacco and our research shows that 82% of menthol and crushball smokers will remain with their usual Factory Made Cigarettes brand, while 70% are expected to switch to a smooth or full flavour variant from today. As a globally recognised brand, with the 2nd highest market share of the economy sector in the UK, the house of JPS is well positioned to leverage its brand recognition through the launch of JPS Bright. Providing premium quality at an economy price point, JPS Bright provides the perfect alternative for menthol consumers from a brand they can trust.
WHAT DO YOU THINK THE FUTURE HOLDS FOR TOBACCO NOW THE BAN IS IN PLACE? We’re already seeing many adult smokers shift their purchasing habits between segments and expanding the range of nicotine products they buy to suit their lifestyle, and we expect the menthol ban to accelerate this trend further. It will take time for shoppers to settle on the right product for them so stocking a broad range covering all the different nicotine segments is key so they have ample choice available. However, it’s even more important that retailers and their staff understand the products they are selling so they can offer informed advice to their customers and help them find the right product for their needs.
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D E S I G N E D FO R M E N T H O L S M O K E R S
M
NE
GREEN FILTER RANGE
As close as it gets to menthol
For tobacco traders only
CO N TA I N I N G MENTHOL F E AT U R E S
NEWS SPECIAL
DEPOSIT RETURN SCHEME MARK BRILL, VICE PRESIDENT SALES AND MARKETING, TOMRA COLLECTION SOLUTIONS UK & IRELAND.
DRS BECOMES LAW – SO WHAT NEXT? THE SCOTTISH PARLIAMENT VOTED TO PASS DEPOSIT RETURN SCHEME (DRS) LEGISLATION INTO LAW LAST WEEK. WE CAUGHT UP WITH TOMRA’S MARK BRILL TO FIND OUT WHAT’S NEXT FOR RETAILERS.
SO, DRS IS NOW PASSING INTO LAW?
HOW MANY OTHER COUNTRIES GLOBALLY HAVE A DRS SYSTEM?
Yes, on 13 May the Scottish Parliament voted in favour of passing DRS legislation into law. This means that Scotland’s DRS is set to launch in 2022.
Around the world, deposit return schemes are a tried and tested way of achieving high recycling rates. In total there are about 40 countries/regions which operate a DRS, including countries such as Norway, Sweden, Germany, and Croatia. DRS is also used in most Canadian provinces, 10 US states, and large parts of Australia.
WHAT HAPPENS NEXT? A Scheme Administrator will be appointed in the next few month. They will be responsible for the operational aspects of the scheme. Once the Administrator has been established, we expect more details about the scheme to be made available, well ahead of the start date.
WHICH MATERIALS ARE INCLUDED IN THE SCOTTISH SCHEME? The scheme will include PET plastic bottles (such as most fizzy drinks and water bottles), steel and
WHEN DOES DRS COME INTO FORCE IN SCOTLAND? The ‘go live’ date for the scheme has been set as 1 July 2022.
WHAT STAGE IS THE REST OF THE UK AT? The rest of the UK is set to introduce a DRS in 2023. Introducing the scheme is part of DEFRA’s Environment Bill which is currently passing through parliament. A second public consultation is due during 2020, to assess the scheme design in more detail.
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NEWS SPECIAL
DEPOSIT RETURN SCHEME MARK BRILL, VICE PRESIDENT SALES AND MARKETING, TOMRA COLLECTION SOLUTIONS UK & IRELAND.
aluminium cans, and glass for all types of drinks in these containers ranging from 50ml to three litres.
WHAT IMPACT WILL A DRS HAVE ON RECYCLING RATES? A DRS is a proven way of achieving high recycling rates for beverage containers, reducing the negative impact that this waste has on the planet. The goal of the Scottish scheme is to capture 90% of drinks containers within three years. A DRS is effective in increasing recycling rates as it gives containers a value, encouraging them to be returned rather than discarded as litter or sent to landfill.
WHEN SHOULD RETAILERS START PLANNING FOR HOW THEY WILL COPE WITH THEIR NEW RESPONSIBILITIES? Some large, multi-site retailers are already planning for how they will accept returns, since their different sites could require different equipment. For smaller sites, we would recommend that retailers use this time to understand the scheme and their role within it. This could include speaking to other retailers who have run trials and through online resources, such as those we have created at www.tomra. com/uk.
WHAT OPTIONS ARE OPEN TO THEM? Choosing between manual or automated returns via a reverse
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vending machine (RVM) is the first choice to make. Retailers know their shoppers, so should start by thinking about how many they would typically serve in a week and if a great recycling experience would be something they value. When it comes to reverse vending machines, Tomra has a range of solutions for every store size. We have a brand-new machine designed specifically for Scottish retailers. The Tomra M1 concept machine is space efficient, handles all three materials – glass, PET bottles and cans – and it does so for an affordable price.
FROM YOUR TRIALS IN SCOTLAND, WHAT HAS CONSUMER RESPONSE TO RVMS BEEN? The response from consumers in Scotland has been very positive. Shoppers are often surprised by how easy and intuitive using an RVM is and like the fact that they can ‘do their bit’ for the environment. We do see a greater uptake in stores with a higher incentive, highlighting that the 20p deposit will be a crucial way of engaging a broad spectrum of shoppers.
NEWS SPECIAL
DEPOSIT RETURN SCHEME MARK BRILL, VICE PRESIDENT SALES AND MARKETING, TOMRA COLLECTION SOLUTIONS UK & IRELAND.
attracting consumers. Plus, if retailers choose to give consumers the option of donating their deposits to a nominated charity, it is also a chance to foster a sense of community and make a difference in other ways. Speak to other retailers who have run trials, find out what worked for them and always keep the shopper in mind when planning how to accept returns.
WHAT ARE THE KEY LEARNINGS FROM RETAILERS IN OTHER COUNTRIES THAT ALREADY HAVE A DRS?
WHAT ARE THE POTENTIAL COMMERCIAL BENEFITS TO RETAILERS? Retailers will receive a handling fee for each container that they take back, this is estimated as 1.1p for manual returns and 2.8p for automatic returns. The aim of this is to cover the costs incurred by acting as a return point. Aside from the handling fee, retailers should see a benefit in attracting and
keeping valuable shoppers who might choose their store based on who has the easiest and fastest recycling facilities.
HOW SHOULD RETAILERS APPROACH THE CHALLENGE? Keep in mind that the introduction of a DRS creates a wealth of opportunities, from helping the environment to
Q Once a DRS is up and running, returning containers becomes an important service as part of people’s regular shop. This means that speed and ease of use is critical – users can become frustrated if an RVM is not available. Q Consider the busiest times in the store as well as the total number of shoppers served each week. Our experience has shown us that 40% of empty containers are returned within the seven busiest hours of each week, so fast solutions are needed to avoid long queues. Q Most shoppers will use their returned deposits to pay for groceries in the store, so making this a seamless process for them is crucial.
For more from TOMRA, visit www.tomra.com/uk or email tcsuk@tomra.com
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Time to Make the Change to Costcutter Peter Juty, Costcutter Meopham
It’s time to make the change from operating on your own, to having the expert help and support required to grow your business. Unique Shopper First insights to tailor your store to attract new shoppers Fantastic support with the best BDM to store ratio in the sector Amazing range, including Co-op Own Brand products n Unmatched commercial terms including a rebate of up to 6%
Time to ! e g n a h C e h t t e k c o P Peter Juty joined Costcutter in late 2019 and has already grown his sales by 15%
join our thriving community of independent retailers Y To get in touch at www.freshstart.costcutter.co.uk
NOW THAT’S A GOOD IDEA…
OUT THE BOX ONLINE AGE VERIFICATION
INSTANT ONLINE AGE VERIFICATION WITH 65% OF LOCAL RETAILERS NOW OFFERING HOME DELIVERY, STAYING SAFE AND LEGAL WHEN IT COMES TO SELLING AGE-RESTRICTED PRODUCTS HAS NEVER BEEN MORE IMPORTANT.
WHAT’S THE BIG IDEA? Instant online age verification.
WHY DOES IT MATTER? Social distancing has been introduced to help keep us all safe but it brings significant challenges, particularly for retailers selling age-restricted goods online. With some 65% of retailers now making home deliveries, according to the latest ACS data, it’s vital that retailers ensure they are handling online sales of age-restricted products safely, responsibly and legally. Falling foul of the law could result in the loss of your alcohol licence and, ultimately, the loss of your business.
CAN’T RETAILERS JUST CHECK ID AT THE DOOR? There are various solutions in use at the moment by retailers – asking customers to tick a box online to say they are 18, checking credit card details or verifying ID at the doorstep – but none of these methods are 100% reliable and leave a significant element of risk that could have severe consequences should an age-restricted product be sold to a minor.
WHERE CAN I FIND OUT MORE? CLICK HERE
HOW DOES IT WORK? The ‘IDU’ software from LexisNexis Risk Solutions draws on industry-leading data coverage to provide and instant, seamless and comprehensive identity checks so retailers can be sure that their customers are exactly who they say they are. The software can be integrated through an API or accessed directly online.
WHAT DO LEXISNEXIS SAY? ”Our powerful know your customer software makes online age verification effortless, improving your confidence in verifying the age of legitimate customers and rejecting prospective purchasers whose age cannot be confirmed, while not hindering the purchasing process.“
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RESEARCH
LOCAL SOURCING BLONNIE WALSH, HEAD OF INSIGHT, HIM
THE BENEFITS OF LOCAL – AND WHAT DOES ‘LOCAL’ MEAN? CORONAVIRUS IS HELPING ACCELERATE AN ALREADY ACTIVE AND GROWING CONSUMER INTEREST IN LOCALLY SOURCED PRODUCTS – BUT WHAT EXACTLY DOES ‘LOCAL’ MEAN TO CONSUMERS? HIM’S HEAD OF INSIGHT BLONNIE WALSH FINDS OUT.
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RESEARCH
LOCAL SOURCING BLONNIE WALSH, HEAD OF INSIGHT, HIM
I
nterest in buying locally sourced produce has accelerated in recent years, driven by health, economic and environmental interests. In a hardto-imagine, pre-pandemic era, Brexit had already begun to shine a light on the future potential of produce grown nearer to home. HIM’s December 2019 Omnichannel Barometer tracker found that 59% of consumers thought Brexit would put more emphasis on sourcing produce locally. It also revealed a significant opportunity for retailers and suppliers to tap into this growing sense of loyalty to local products. Six in 10 consumers agreed they were more likely to buy something if it was locally sourced, rising to 66% of convenience store shoppers. Now we’re in the midst of a worldwide pandemic affecting supply chains across the globe, the topic seems even more relevant. But what do consumers understand by the term ‘locally produced’? Most commonly, at 43% agreement, it means produced in their region. However, it can be interpreted as anything from being produced in the town where the consumer lives, through to being British, or produced in the UK. Local sourcing implies freshness and therefore it is unsurprising that the winning category in terms of consumer interest in ‘local’ is fresh fruit and vegetables, with 69% agreement. In addition, fresh meat & fish (55%), chilled dairy (45%), and baked products
such as bread and cakes (35%) would also have significant appeal. One convenience store group which has put strong emphasis on local and ‘best of British’ produce is Simply Fresh. A high percentage of fruit and vegetables sold in its stores are sourced from local growers which, as highlighted on its website, helps local producers compete with major supermarkets, as well as growing the local economy. Costcutter is another example of a convenience store retailer with a shifting focus towards local shopping, illustrated through its recent brand repositioning from ‘shop the way you live’ to ‘shop locally’. So why is local produce even more relevant now, during the coronavirus pandemic? Put simply, shopping local has made something of a comeback due to a combination of people being physically confined to their local areas, as well as being faced with empty supermarket shelves. Farm shops across the country experienced a significant boost in trade as supermarkets initially
struggled to meet demand for certain products. Similarly, delivery services from local food suppliers have also become increasingly popular. As a result, consumers are getting greater exposure to locally sourced produce and the benefits it can bring, which is particularly important at a time when many smaller businesses are struggling. There is already a lot of speculation about what a post-pandemic food revolution might look like. At the same time, consumer concerns over the environmental impact of our consumption habits aren’t likely to subside any time soon. If anything, the pandemic is intensifying the glare on the impact humans are having on the planet. However, on a positive note, an overwhelming sense of community has been borne out of these difficult times and for the food and drinks industry; this could translate into greater demand for locally sourced products, benefiting small businesses and local economies.
WEDNESDAY 20TH MAY 2020 / ISSUE 5 / SLRMAG.CO.UK / 29
n ee b er ev n s a h s es en r a w Lees’ brand a
B awarrand eness
76%
**
of Scots like Lees Snowballs *
Our delicious snowballs and teacakes have been family favourites for almost 90 years. Following last year’s TV campaign, awareness is at its highest level ever, with 76% of Scots surveyed saying they liked Lees Snowballs and 44% buying Lees products every month. There’s never been a better time to stock up.
Scotland loves Lees 01236 441 600
sales@leesofscotland.co.uk *Source: JLral. Post TV Campaign Evaluation- Sept 2019 **Refers to Scots who viewed the 2019 TV ad
