The Week In Retail Issue 12

RETAIL

THE WEEK IN

VAPING

CORONAVIRUS LEGISLATION

GLOBAL VAPING CHALLENGES

LEGISLATIVE PROBLEMS DOG GROWTH

FACE MASK FURORE

MASKS MANDATORY DESPITE CRIME CONCERNS

WORKER PROTECTION

PROTECTION PROPOSALS REJECTED

BRANDED FACE MASKS COSTA DOORDROPS SPAR RAISES £1.5M

UK GOVERNMENT REJECTS NEW LAW

NEW APP SENDS SHOPPERS TO HIGH STREET Commercial Partner:

Brought to you by:

Issue 12 Wednesday 8th July 2020

Symbol Partner:

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THE WEEK IN RETAIL

EDITOR’S COMMENT SHARE YOUR NEWS AND VIEWS WITH ME AT ABEGLEY@55NORTH.COM

COPS AND ROBBERS: THE FACE MASK CONUNDRUM Ah, the humble face mask. The classic identitydisguising apparel of choice of vagabonds, thieves and other assorted rapscallions – and now the Scottish Government is forcing everyone in a shop to wear one from Friday.

Unsurprisingly, there has been quite a bit of debate among retailers since Nicola Sturgeon first made that announcement last week, not least because the guidance issued was typically woolly.

Did staff have to wear them too, or was it just customers? And who was to police it in-store?

This is just the latest in a long line of examples where the Scottish Government has legislated on issues relating to the local retailing sector without having anything even approaching a decent understanding of the consequences of their decisions. Anyway, despite warnings to her that mandatory face masks were practically an open invitation to the nation’s less morally upright citizens to come and steal from shops, the First Minister decided to plough on.

It’s a complex issue, of course. We all want to prevent the spread of Covid-19 but a little consultation with the sector wouldn’t have hurt, or taken too much time, would it?

Thankfully, SGF swung into action and, thanks to the Batphone that Pete Cheema apparently has connected to Sturgeon’s office, quickly got a lot of the issues clarified. You can read those clarifications in this issue.

The two key learnings are that, yes, staff do have to wear masks (unless behind screens and in some other exceptional cases) and no, retailers will not be responsible for policing it and will not be expected to refuse entry to customers who refuse to wear face coverings.

The massive concern remains that, come Friday, theft will rocket and CCTV imagery won’t be an awful lot of good to you. It might be worthwhile being a little bit extra vigilant in the days ahead unless you want to see months of great sales undone by weeks of pilfering.

ANTONYBEGLEY ANTONYBEGLEY ANTONYBEGLEY

ANTONY BEGLEY, EDITOR

WEDNESDAY 8TH JULY 2020 / ISSUE 12 / SLRMAG.CO.UK / 3

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CONTENTS

WEDNESDAY 8TH JULY 2020 / ISSUE 12 WWW.SLRMAG.CO.UK

6

10 THIS WEEK’S NEWS IN BRIEF

THE FACE COVERING DEBATE

UK Government rejects proposals to protect shopworkers and Spar stores raise £1.5 for Marie Curie.

8 COVID-19 UPDATE

A ROUND-UP OF THE LATEST

16 OPINION The Chancellor must extend business rates relief to the wholesale sector, says Scottish Wholesale Association boss Colin Smith.

The wearing of face masks becomes mandatory in Scottish stores, despite concerns over crime.

14 INNOVATION: COSTA COFFEE

20 PICKS OF THE WEEK

CORONAVIRUS-RELATED NEWS.

MASSIVE DOORDROP CAMPAIGN LOOKS SET TO BENEFIT RETAILERS.

A LOOK AT THE LATEST NEW PRODUCTS AND MARKETING CAMPAIGNS.

12 TECH SOLUTIONS: ROAM APP

19 OUT THE BOX: FUNKY FACE MASKS

21 VAPING

A NEW APP BENEFITS RETAILERS AND

CAN RETAILERS AND SUPPLIERS

CATEGORY GROWTH IS SLOWED BY

CUSTOMERS AND ENCOURAGES USERS TO

GENERATE ADDITIONAL REVENUE WITH

LEGISLATIVE CHALLENGES AROUND THE

SHOP LOCALLY.

BRANDED FACE MASKS?

GLOBE.

TWITTER.COM/SLRMAG

WWW.FACEBOOK.COM/SLRMAG

WWW.SLRMAG.CO.UK

WEDNESDAY 8TH JULY 2020 / ISSUE 12 / SLRMAG.CO.UK / 5

NEWS DIGEST

THIS WEEK’S NEWS FOR ALL THE LATEST NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/

SWEET SUCCESS Over 10,000 vouchers have been redeemed as part of an NFRN members confectionery

LEGISLATION

GOVERNMENT REJECTS SHOP WORKER PROTECTION LAW

promotion with Booker which

RETAIL INDUSTRY DISMAYED AS GOVERNMENT REJECTS

offered a BOGOF deal on a

PROPOSALS FOR A NEW LAW TO PROTECT SHOP WORKERS FROM

range of 24 Happy Shopper

VIOLENCE, THREATS AND ABUSE.

products each offering a minimum of 30% POR.

REACH CUTS 550 Mirror publisher Reach, the UK’s largest newspaper group, is to shed around 550 staff, representing 12% of its workforce, as part of a £35m a year cost-cutting programme.

RINGO DEAL PayPoint and RingGo have launched RingGo Retail, a new offering that lets drivers pay for

Retail trade union Usdaw is among many who have expressed deep disappointment that the Government rejected proposals yesterday for a new law to protect shop workers from violence, threats and abuse, despite evidence that incidents have doubled during the coronavirus emergency.

It has been over a year since the Home Office consultation on violence against shopworkers closed. Usdaw surveying estimates that over 150,000 shop workers have been assaulted since then.

Paddy Lillis, Usdaw General Secretary, said: “We are deeply

disappointed that the Government has rejected legislating for stiffer penalties for those who assault workers. They have failed to listen to the voices of shop workers and retailers, who had jointly called for a simple stand-alone offence that is widely recognised and understood by the public, police, CPS, the judiciary and most importantly criminals.

“At a time when we should all be working together to get through this crisis, it is a disgrace that the people working to keep food on the shelves for their local communities are being abused and assaulted.”

parking at PayPoint retailers.

The retailer simply enters the details of the customer’s

CO-UP INCENTIVE FROM COSTCUTTER

parking session and it can be paid for touch-free.

EDGEPOS BP PILOT Henderson Technology has launched the pilot stage of BP’s new payment and loyalty terminal in a range of BP sites throughout the EDGEPoS estate. The new terminals are fully integrated with EDGEPoS.

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Costcutter retailers have hailed Coop Own Brand products as key to helping win over shoppers during the Covid-19 crisis, driving sales and growing basket spend. Consequently, Costcutter is now offering £1,000 of free Co-op Own Brand products for retailers who sign up with the Group and start trading before 31 August.

Costcutter Business Development Director Jamie Davison, said: “Time and time again our retailers tell us that

the availability of Co-op Own Brand products is key to that success and has been a major driver for basket spend increases.”

“It is a trusted brand, known for the quality of its products and is helping our retailers converting new shoppers into regular customers.”

Retailers have shared stories of basket spend increases and improved margins on the Group’s recently redesigned website.

NEWS DIGEST

THIS WEEK’S NEWS FOR ALL THE LATEST NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/

LEGISLATION

FACE COVERINGS MANDATORY IN SCOTLAND FROM FRIDAY

PRICE-GOUGING WARNING The CMA has, alongside seven

FIRST MINISTER ANNOUNCES THAT FACE COVERINGS WILL BE

trade associations, warned

MANDATORY IN SCOTTISH STORES FROM FRIDAY.

retailers against raising prices unfairly. The warning is aimed

Scotland’s First Minister Nicola Sturgeon has announced that face coverings will be mandatory in Scottish stores from Friday. The measure will apply to customers and staff, although staff working behind protective screens will be exempt. Further detail will be provided regarding age verification and staff involved in food preparation.

Scottish Grocers Federation strongly criticised the move. Chief Executive Pete Cheema said: “Staff are already under tremendous pressure and this will only add to this in in terms of enforcing these measures instore and with age verification. Face coverings will further exacerbate retail crime.

“Convenience stores have already implemented social distancing measures very effectively and there is no evidence to show that stores are hotspots for Covid transmission. The Scottish government should have continued with a voluntary approach to face covering.”

SGF is working directly with the Scottish government to develop clear and comprehensive guidance on the new measures but the latest guidance is available by turning to page 10.

at the minority who are still seeking to profiteer during the coronavirus outbreak.

NISA DONATES £280K Nisa retailers have supported good causes with almost £280,000 via the symbol group’s Making a Difference Locally charity since the start of the coronavirus outbreak.

CJ LANG BACKS FOODBANK When BBC’s The One Show appealed for help on behalf of foodbanks, Spar Scotland wholesaler and retailer CJ Lang & Son donated 50 cases each of tea and coffee, getting

SPAR RAISES £1.5M FOR MARIE CURIE Charity Marie Curie has announced that Spar UK has now raised £1.5m for families living with terminal illness.

Spar chose Marie Curie as its national charity partner in 2017.

Thanks to fundraising efforts from independently owned Spar stores around the UK, 80,000 hours of

nursing care or almost 9,000 nursing shifts where patients and families have been given expert care and support have been granted.

Tom Heron, Senior Partnership Manager at Marie Curie, said: “It is a phenomenal achievement and we really cannot thank Spar UK enough.”

a mention on the show’s Thursday programme.

JOB CUTS HIT 24K New data from the Centre for Retail Research suggests more than 24,000 jobs have been lost at high street retailers in the first half of the year.

WEDNESDAY 8TH JULY 2020 / ISSUE 12 / SLRMAG.CO.UK / 7

NEWS SPECIAL

COVID-19 UPDATE FOR ALL THE LATEST CORONAVIRUS NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/

PRICE WAR LOOMING Tesco is reportedly pressuring suppliers to switch to everyday low pricing and effectively reduce their prices as the supermarket prepares for a price war with Aldi. Tesco will reportedly also permit only promotions that come under its Clubcard loyalty scheme.

M&S RELAUNCHES SPARKS Marks & Spencer is relaunching its Sparks loyalty programme as a ‘digital first’ scheme to provide members with a more personalised experience.

B&M BOOST B&M has made a strong start to the new financial year with

RETAILERS URGED TO MAINTAIN 2M RULE LOCAL RETAILERS IN SCOTLAND AND ACROSS THE UK ARE BEING ENCOURAGED TO MAINTAIN SOCIAL DISTANCING AT 2M DESPITE THE INTRODUCTION OF MANDATORY FACE COVERINGS IN SCOTTISH STORES.

S

hopworkers’ trade union Usdaw is urging retailers to maintain social distancing in shops at two metres, as agreed in joint safety guidance, despite the Scottish Government announcing that face coverings will be mandatory in shops from this Friday. The union also calls on customers to respect staff who have to enforce safety in stores.

Stewart Forrest, Usdaw’s Scottish Divisional Officer, said: “Usdaw worked

with the Scottish Retail Consortium on joint safety guidance for shops based on the two-metre rule and in our experience retailers have taken that seriously and are complying. We see no reason why that should be relaxed now that the Scottish Government has made face coverings mandatory in stores.

“We accept face coverings can limit the spread of the virus, but they do more to protect others rather than the wearer and that needs to be understood.”

FARESHARE ADDS 150 MORE PARTNERS

group revenue increasing by 27.7% to £1.15bn in its first quarter. UK revenue rose by 33.7% to £987.8m as like-forlike sales climbed 26.9%.

FREE T FOR PUBS Tennent’s has launched a new campaign for the on-trade supplying complimentary kegs for around 2,000 licences premises in Scotland as part of its ‘Dedicated to You’ activity.

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FareShare, the UK’s biggest food redistribution charity, has signed up almost 150 more retail and food businesses to divert surplus food or donate food to organisations supporting people in need since lockdown measures began.

Before the pandemic, FareShare worked with around 600 partners to divert surplus food that would have otherwise been wasted to frontline charities such as homeless hostels, food banks and domestic violence refuges.

As a result of lockdown and Premiership footballer Marcus Rashford’s public plea to the food industry to support FareShare in getting food to those most affected by the crisis, an additional 144 businesses across the supply chain signed up to help.

FareShare has now tripled the amount of food it distributes each week, providing enough food last week alone for charities and community groups across the UK to deliver over 3.2 million meals.

NEWS SPECIAL

COVID-19 UPDATE FOR ALL THE LATEST CORONAVIRUS NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/

‘HUNDREDS OF MPS’ BACK CO-OP ON PROTECTION

CHILDFRIENDLY SANITISING STATION

AS THE UK GOVERNMENT REJECTS PROPOSALS FOR A NEW LAW

D

TO HELP SAFEGUARD SHOP WORKERS, THE CO-OP RECRUITS HUNDREDS OF MPS TO DEMAND BETTER PROTECTION.

to keep staff and customers safe and that any type of crime from burglaries to violence and aggression towards staff would ‘not be tolerated’ during these uncertain times.

Heather Wheeler, MP for South Derbyshire, commented: “I am disappointed to have heard about the abuse that some key shop workers have been facing for just doing their job and helping people. I do not condone this behaviour and am appalled to hear that staff have been treated this way.

It is selfish to behave this way and we cannot let this violent and threatening behaviour stand.”

D&G RESTRICTIONS LIFTED Local restrictions in Dumfries and Galloway have been lifted following a cluster of coronavirus cases last week in the Annan and Gretna areas. The Scottish Government says the outbreak is now contained so travel is no longer restricted to five miles and care home visiting is now permitted.

The Test and Protect system was used to identify contacts of the original positive cases and contain the virus.

The cluster now involves 12 positive cases and 23 contacts who are isolating.

Visual communications specialist Ultima Displays has unveiled a brightly coloured multiheight sanitising unit specifically designed to be fun, friendly, and durable to help children aged 3 to 11 engage proactively with hygiene practices.

TECH SOLUTIONS

espite the UK Government rejecting proposals for a new law to offer better protection for shop workers, hundreds of MPs from across the country have teamed up with Central England Co-op to back a campaign calling for better protection for colleagues dealing with would-be criminals who use coronavirus as a verbal and physical threat.

Today the retailer, which operates over 260 food stores across 16 counties, joins forces with over 200 parliamentarians from across the political divide to reinforce its message

The Kid’s Multi-Height Sanitising Unit complies with all Government guidance, is very stable and has no sharp edges.

The dispenser height can be adjusted to four different positions, from 500mm – 900mm.

To find out further information, please visit Ultima’s website.

WEDNESDAY 8TH JULY 2020 / ISSUE 12 / SLRMAG.CO.UK / 9

COVID-19 SPECIAL

FACE MASKS PETE CHEEMA, CEO, SCOTTISH GROCERS’ FEDERATION

COPS AND ROBBERS: THE GREAT FACE MASK FURORE CONFUSION REIGNED IN SCOTLAND LAST WEEK AS FIRST MINISTER NICOLA STURGEON ANNOUNCED THAT WEARING FACE MASKS IN STORES WOULD BECOME MANDATORY, DESPITE CONCERNS OVER INSTORE CRIME, BUT FAILED TO SPELL OUT SEVERAL KEY DETAILS. SGF CEO PETE CHEEMA CLARIFIES THE ISSUES.

D

espite the Scottish Grocers’ Federation’s sustained and strenuous efforts to ensure that the wearing of face coverings in local retailing outlets was left voluntary due to significant concerns around in-store crime, Scotland’s First Minister Nicola Sturgeon nonetheless announced that face coverings will indeed become mandatory in retail settings from this Friday (10 July) in Scotland.

This follows a similar requirement to wear face coverings in public transport from 22 June.

Unfortunately, the official announcement failed to address some key issues, not least of which was whether it was compulsory for shop staff as a well as their customers to wear face coverings and whether local retailers would be responsible for enforcing the legislation in-store.

In the aftermath of the announcement, the SGF was inundated by calls and emails from retailers asking for clarification. We immediately contacted the Scottish Government to seek these clarifications.

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COVID-19 SPECIAL

FACE MASKS PETE CHEEMA, CEO, SCOTTISH GROCERS’ FEDERATION

We now understand that the measure applies to all shops when customers are present and staff will indeed be required to wear masks if they cannot physically distance for two metres, or there is no partition between customers and staff.

A face covering is defined as any type of protective clothing which covers a person’s nose and mouth. It does not have to be a PPE face mask.

Customers are expected to provide their own face coverings, but we strongly encourage retailers to have their own stocks of cloth or textile face coverings available as an initial encouragement to those customers without face coverings. Be aware too that it is a criminal offence with a fixed penalty notice if the law is broken.

Importantly, shop workers and retailers are not required to enforce this law, but we ask you to engage with customers who are not wearing a face-covering and explain the law. If customers refuse to wear a face covering, retailers should not stop customers from entering the store or from being served. The responsibility rests with the customer.

The measure covers the full range of different indoor retail outlets with some exemptions: Q Children under five years of age.

Q People with health conditions who cannot put on, wear or remove a face covering because of any physical or mental illness or impairment or disability or without severe distress.

Q If people need to take medication or to eat or drink where reasonably necessary.

Q Temporary removal is permitted to comply with a request by a relevant person or another person acting in the course of their duties.

Q For customers with a hearing impairment and those who lip-read, it is permitted to remove face coverings, as necessary, to provide advice, information or assistance.

Q For age-related sales customers are asked

to ensure that they remove face coverings in accordance with requests from staff.

Q In some food-handling settings where the wearing of a mask could compromise the hygiene practices that are already in place to ensure food safety.

The wearing of a face covering can be uncomfortable and may not be appropriate for long durations of time so employers should therefore consider providing opportunities for staff to temporarily remove face coverings in non-public areas. Where staff have concerns on wearing face coverings, this should be resolved in discussion between staff and managers.

The guidance will apply in indoor shopping malls including those with covered walkways, retail service settings such as hairdressers and in wholesale settings where members of the public are present.

It is recognised that there may be certain tasks that staff in food shops need to carry out where face coverings may not be appropriate. For example, where staff are handling food items or preparing meals and it is assessed that the wearing of a mask could increase the risk of other types of infection (i.e. non-Covid) from getting into the food and potentially make it unsafe.

Note too that Covid-19 is a respiratory infection and the wearing of face coverings is intended to prevent the spread of infection between people.

There is no evidence that it can make people ill through food. It is therefore important that wearing a face covering doesn’t affect the hygiene controls that should already be in place to ensure food is protected from other bacteria and viruses that can cause food poisoning. If there is any concern that wearing a face covering could present a risk to the food, the shop worker would not be required to wear one.

WEDNESDAY 8TH JULY 2020 / ISSUE 12 / SLRMAG.CO.UK / 11

TECH SOLUTIONS

ROAM APP ENCOURAGING CUSTOMERS TO SHOP LOCALLY

ROAMING BACK TO THE HIGH STREET A NEW APP DELIVERS A SUITE OF FUNCTIONALITY THAT BENEFITS RETAILERS AND SHOPPERS AND

W

ENCOURAGES CUSTOMERS TO SHOP LOCALLY.

ith deserted high streets a feature of the last few months, a Durham-based former jockey and digital entrepreneur is driving customers back to the high street with a new app.

Andrew Bartlett, who is just 23, has developed the ROAM app which gives users essential information about shops and services based on their GPS location. Using state of the art algorithms and data collection techniques, the app gives the user the feeling of being a “local” shopper with up to date offers, opening times and the ability to order items to collect instore or delivery direct to a home address.

For retailers, the app can be used to share offers, menus, news and loyalty deals direct to their customer base via the customer’s mobile phone. “In effect, ROAM becomes a business’s own app without the expensive development costs,” says Bartlett. “The platform is free and sends customers onto the high street, a reversal from the common misconception that digital sales are ruining town centre and high street sales.

“I firmly believe that the high street still has an important part in the retail economy. We’ve seen a trend towards online sales particularly during the pandemic, but nothing can beat personal customer service or the ability to see, demonstrate or try on the goods we buy. Digital is the solution

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to the decline of local shopping not the enemy and ROAM brings together app technology with bricks-and-mortar businesses.

“I believe that every town and city is unique and full of potential. I want to shine a spotlight on the independent culture of those places and help businesses grow and thrive. ROAM helps evolve the digital footprint of towns and cities encouraging people to shop local, build stronger local economies and provide further opportunities for those who live and work there.”

Having been a jockey and worked with some of the country’s leading horse trainers including Alan Swinbank and showjumper Harvey Smith, Bartlett became interested in the technology behind their successes. This led him to study computer coding and app development, build websites and experiment with ideas to improve business performance. The result was ROAM which was three years in development and is available on both iOS and Android devices and is free for both businesses and consumers to use.

The APP now has more 80,000 users in the UK. Regenerating the High Street isn’t the only practical application of ROAM. The app can monitor where members of the public are gathering within retail outlets so that people can avoid crowds or queues while social distancing remains in place. After the pandemic, the

TECH SOLUTIONS

ROAM APP ENCOURAGING CUSTOMERS TO SHOP LOCALLY

functionality will give the public up to date information so that they can see which businesses are busy or quiet and make informed decisions about when and where they shop.

ROAM works hand in hand with Andrew’s vision to get people to shop local. His current focus is on Durham City where he plans to include every business in the city in the app. He says: “Durham is a fantastic place to shop with unique boutique shops, a thriving indoor market and a setting like no other city full of awesome architecture and history. It’s a tourist destination too and the app pulls in information, opening times, images and maps on places of public interest including bars,

restaurants, clubs, hotels and gyms and a whole lot more, tailored to individuals interests to help people plan a day or night out – whatever the occasion.

“From a safety viewpoint it also allows individuals to share their location with groups so that they can stay together and plan their trips and by understanding behavioural patterns amongst friends, the app can send out safety alerts to the rest of a group if someone strays away or gets lost.”

Bartlett hopes ROAM will revolutionise the way people shop on the high street. Users and retailers can download the app free from www.roam-local.co.uk.

WEDNESDAY 8TH JULY 2020 / ISSUE 12 / SLRMAG.CO.UK / 13

INNOVATION

COSTA SAMPLING CAMPAIGN CCEP/COSTA COFFEE

COSTA DOOR DROP SET TO BENEFIT RETAILERS COCA-COLA EUROPEAN PARTNERS AND COSTA COFFEE WILL BE DELIVERING 50,000 SAMPLE BOXES OF ITS COSTA COFFEE READY-TO DRINK RANGE TO HOUSEHOLDS ACROSS THE UK.

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INNOVATION

COSTA SAMPLING CAMPAIGN CCEP/COSTA COFFEE

C

oca-Cola European Partners (CCEP) and Costa Coffee have unveiled plans to deliver Costa’s RTD can range to homes across the country, as part of a new campaign designed to fuel continued growth in the RTD coffee segment and keep the brand front of mind. The campaign will undoubtedly have knock-on benefits for local retailers across the country.

Following a successful initial round of sample box drops in late May, two further activations are being rolled out from this month to tap into the next bout of warm weather, when consumer purchasing of RTD coffee typically peaks.

Members of Costa’s Coffee Club have been invited to nominate their postcode to receive free Costa Coffee in a can right to their doorstep. Each of the 50,000 sample boxes contains two cans of Costa Coffee RTD and a handy card to stick on

the fridge – complete with product messages and mocktail & smoothie recipe ideas like the Caramel Lattini Mocktail.

Another 100,000 cans will also be given away at park locations across the UK on warm days, to provide a refreshing afternoon pick-me-up for people meeting friends or taking a break from work.

Simon Harrison, Vice President, Commercial Development at CCEP GB, said: “The RTD coffee sector is enjoying 26.5% growth and Costa Coffee RTD is already worth £6m, just eight months since launch. In fact, it’s is already the no.3 RTD coffee brand within the impulse channel. While the on-the-go mission has been less of a focus for consumers during recent months, Costa Coffee RTD has been tapping into ‘coffee moments’ within the home, providing pick me ups whilst consumers work from home or want some much needed me time alongside a snack.

“As lockdown measures continue to ease, the sunshine returns and more consumers are onthe-go, convenient RTD formats like Costa Coffee RTD deliver much-needed ‘little lifts’ anytime, anywhere. The latest campaign will keep the brand front of mind with coffee enthusiasts, during the key summer months helping to drive follow up sales for retailers.”

WEDNESDAY 8TH JULY 2020 / ISSUE 12 / SLRMAG.CO.UK / 15

OPINION

WHOLESALERS UNDER CORONAVIRUS COLIN SMITH, CHIEF EXECUTIVE, SCOTTISH WHOLESALE ASSOCIATION

WHOLESALERS DEMAND SAME SUPPORT AS THEIR CUSTOMERS WHOLESALERS ARE CALLING ON THE CHANCELLOR RISHI SUNAK TO EXTEND BUSINESS RATES RELIEF

T

TO THE WHOLESALE SECTOR TO BRING IT INTO LINE WITH ITS CUSTOMERS.

he Scottish Wholesale Association (SWA), as well as others representing the UK wholesale industry, are stepping up our demands for an extension to the furlough scheme to secure jobs which are under threat and a VAT cut to stimulate the wider hospitality, tourism and leisure industry.

Despite many food and drink wholesalers losing as much as 90% of their business overnight when lockdown was introduced, they received no rates relief. While we’ve managed to help some of our members secure lifeline grant support from the Scottish Government’s Pivotal Enterprise Resilience Fund (PERF) scheme, or their local council, most food and drink wholesalers have received nothing.

The hospitality, tourism and leisure industry accounted for over 40% of the food and drink wholesale market in Scotland before lockdown so it’s a critical sector for our members. It’s going to take a while for the industry to recover and many are still facing extreme challenges trying to keep their businesses afloat and, crucially, food and drink supplies moving.

The reopening of outlets – welcome as it is – won’t be enough to sustain the wholesale channel so we need action to stimulate the economy generally as well as targeted support for our members over the long term on what will remain a very challenging and difficult road to recovery.

Our membership is made up of small, local family businesses through to large national and international-based businesses, but each one has been an unsung hero during

16 I SLRMAG.CO.UK / ISSUE 12 / WEDNESDAY 8TH JULY 2020

this pandemic in making sure that Scotland’s food and drink supply chain remained robust and reliable.

We want to thank those local MSPs and MPs who have supported us and written to the Chancellor on behalf of SWA wholesalers within their constituencies asking for rates relief and further support for the wholesale sector.

We hope he takes action immediately given the key role wholesalers play within their local communities, the tourism and hospitality supply chain, and the wider Scottish economy.

Learn more at tomra.com/uk

We make deposit return systems work for everyone.

TOMRA reverse vending machines collect 40 billion containers every year, keeping bottles in the Clean Loop and out of the oceans.

We look forward to helping retailers in Scotland get ready for the forthcoming deposit return scheme.

NOW THAT’S A GOOD IDEA…

OUT THE BOX FUNKY FACE MASK

STYLE AND SALES WITH BRANDED FACE MASKS SPAR WHOLESALER AF BLAKEMORE IS GIVING AWAY £30,000 TO THANK GROUPS WHO HAVE BEEN THERE FOR VULNERABLE PEOPLE DURING THE COVID-19 CRISIS.

orders can be combined to save money. The retail packs are available as individual units or as multipacks and ideal for siting near the till point to grow incremental sales while also helping shoppers keep themselves safe and comply with the law. Failing to wear a mask is a criminal offence and will attract fines.

HOW DOES THE BRANDING WORK? The company can provide tailored, unique designs at no extra cost that staff can wear as part of their uniform. This helps identify staff but also offers some additional branding and advertising opportunities.

WHAT’S THE BIG IDEA? With face coverings set to become mandatory in stores in Scotland from Friday, Funky Face Mask offers retailers, wholesalers and suppliers the opportunity to generate additional revenue and generate brand awareness on the new personal essential: branded face masks.

HOW DOES IT WORK? Masks can be branded with any design including company logos or store names to add a touch of style and grow brand awareness on items that all shoppers will be required to wear.

ARE THESE RETAIL PACKS? The masks are available in retail packs to sell to consumers but are also available in plain packs for store staff, keeping everyone safe under the new regulations. Retail and staff

WHAT’S THE MINIMUM ORDER QUANTITY? Just 100 units, making them accessible for all retailers, big and small.

ARE THEY DISPOSABLE? No, they are high quality masks designed to be comfortable to wear for long periods and to be washable and reusable ensuring a longer life for the masks and delivering better value for money for retailers and for customers. All packaging contains simple wash and wear instructions for customers. They are available in three different versions to suit all requirements and all are CE marked for additional peace of mind.

WHERE DO I GET THEM?

Orders can be placed online at www.funkyfacemask.co.uk/ retail or by emailing sales@funkyfacemask.co.uk.

WEDNESDAY 8TH JULY 2020 / ISSUE 12 / SLRMAG.CO.UK / 19

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ON THE GO CAMPAIGN

JAMMIE NEW LOOK

SUPERFANS FAME

Weetabix On The Go returns

Burton’s has revealed a new

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to TV this summer as part of

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an £11m marketing campaign

improve appeal and to bring

you through’ ads saw their

from the brand. A new ad

key product credentials to the

films on TV during Alan Carr’s

has been created as part

front of the pack, including a

Epic Gameshow on STV On

of a sponsorship of ITV2’s

new ‘No Nasty Stuff!’ strap.

Saturday. Showbiz journalist

‘Showtime’ in July and August.

The new look features on all

Bev Lyons chose the five

The slots provide over 40

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winners from entries posted on

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are all now vegan-friendly.

social media.

20 I SLRMAG.CO.UK / ISSUE 12 / WEDNESDAY 8TH JULY 2020

VAPING

GLOBAL PERSPECTIVE LEGISLATIVE DEVELOPMENTS

VAPING GROWTH FAR FROM PLAIN SAILING DESPITE PUBLIC HEALTH ENGLAND’S REPEATED COMMITMENT TO ITS VIEW THAT VAPING IS 95% SAFER THAN SMOKING, THE GROWTH OF THE VAPING CATEGORY IS BEING SLOWED UP BY LEGISLATIVE

V

CHALLENGES AROUND THE GLOBE.

aping has long been touted as the saviour of the tobacco category, yet its growth has stalled recently as governments around the globe struggle with what can be a complex set of products. Despite the fact that Public Health England has consistently said vaping is 95% safer than smoking and despite the fact that the Menthol Ban should have triggered a spike in vaping sales, the category still seems mired in misinformation and, at times, malevolent scaremongering.

The smooth route to growth has been anything but and, as the following case studies show, plenty of challenges still lie ahead as the vaping industry struggles to have its products understood.

CASE STUDY 1: THE NETHERLANDS

FLAVOURS BAN PROPOSAL

The Dutch Government has announced plans to ban flavoured electronic cigarettes next year in a bid, it says, to make vaping less attractive to young people.

The government has claimed that the sweet tastes of flavours such as strawberry and mojito has made vaping more popular amongst young non-smokers. Deputy Health Minister Paul Blokhuis said: “The smoke-free generation we see coming also needs to be free of electronic cigarettes.”

Responding to the plans, UK Vaping Industry Association (UKVIA) Director John Dunne said: “It is completely wrong to conflate smoking tobacco with using vaping devices which often contain no tobacco or nicotine. There is little evidence that suggests that vaping encourages young people to start smoking. The recent Public Health England (PHE) Vaping in England Report found that current vaping is mainly concentrated in young people who have experience of smoking. Less than 1% of 11 to 18-year-olds who have never smoked are current vapers.”

Dunne also points out that, rather than pushing non-smokers towards smoking cigarettes, vaping products can be extremely effective at helping smokers quit. The same PHE report found that when vaping products were used in an attempt to quit, either alone or with licensed medication, success rates were comparable to, if not higher than, licensed medication alone.

“We would call on the Dutch government to rethink this decision which could have the significant unintended consequence of deterring those looking to stop smoking,” Dunne concluded.

WEDNESDAY 8TH JULY 2020 / ISSUE 12 / SLRMAG.CO.UK / 21

VAPING

GLOBAL PERSPECTIVE LEGISLATIVE DEVELOPMENTS

CASE STUDY 2: UNITED KINGDOM

VAT CHANGES DEMANDED

The UKVIA is calling upon the UK Government to consider a similar VAT rate for vaping to that currently applied to Nicotine Replacement Therapies (NRT). The call comes as the Chancellor of the Exchequer is widely reported to be looking at reducing the VAT rate in the wake of the coronavirus as the Government last did during the 2008 economic downturn.

In a letter to the Chancellor, Rishi Sunak, the UKVIA has urged the Government to consider a level playing field in regard to the VAT rate between NRT and vaping products, to support adult smokers who would otherwise not quit smoking to make the switch to vaping.

The letter points to a PHE Vaping in England Report which found that when vaping products were used in an attempt to quit, either alone or with licensed medication, success rates were comparable to, if not higher than, licensed medication alone.

It highlights the current VAT chasm between NRT products (5%) and vaping (the full 20% VAT and the same as conventional cigarettes) despite the fact that e-cigarettes, whilst not a cessation product, have significant potential to have a positive impact on public health. This is backed up by research commissioned by the NHS last year which revealed that e-cigs are twice as effective as nicotine patches, gum or sprays for quitting smoking.

UKVIA’s John Dunne says: “The vaping sector has been a major retail success story this century and is playing a major role in getting smokers to quit, thereby helping cut the huge annual cost of healthcare associated with smoking.

“Yet according to research nearly one in 10 smokers do not switch to e-cigarettes because they consider them to cost too much. Ensuring that the price of vaping products remains much lower than cigarettes is vitally important in continuing to encourage the some seven million smokers in the UK, who otherwise do not quit, to make the switch.

“Whilst the country is still very much in the recovery phase of Covid-19, a significant VAT reduction for vape products would pay back both economically and from a healthcare perspective.”

22 I SLRMAG.CO.UK / ISSUE 12 / WEDNESDAY 8TH JULY 2020

VAPING

GLOBAL PERSPECTIVE LEGISLATIVE DEVELOPMENTS

CASE STUDY 3: AUSTRALIA

IMPORT BAN POSTPONED

The Australian Department of Health has halted a ban on importing nicotine liquids into Australia. The ban was set to come into force from 1 July and would have prevented the import of e-cigarettes and nicotine refills for an initial 12-month period, with possible penalties of up to A$220,000.

The ban has been delayed for six months to allow the Australian authorities to undertake a formal review and consultation around the classification of nicotine. The ban is now set to commence on 1 January 2021.

The Australian government has said that the decision was made to assist those who were using vaping to help them quit smoking.

The Australasian Association of Convenience Stores (AACS) has argued that the policy should be abandoned altogether as it makes it harder for people to quit smoking.

AACS CEO Jeff Rogut said: “There are 400,000 ex-smokers in Australia who now use vaping, and as it is legal, regulated and taxed in every OECD nation bar Turkey and Australia, the government should instead look to better regulate the Australian market.

“Making it harder for people to access products that research shows are safer than traditional tobacco, and which have helped many people quit smoking, makes no sense. We need to make it easier for people to access such products.”

“In the UK the clear advice from health authorities, including Public Health England, is that e-cigarettes can be an effective aid to stopping smoking and staying smoke free. It is clear that vaping is far less harmful to the respiratory system than smoking.”

FURTHER READING: Public Health England (2020) – Vaping in England: 2020 evidence update summary NHS (2019) – Using e-cigarettes to stop smoking ASH (2019) – Use of e-cigarettes (vaporisers) among adults in Great Britain

WEDNESDAY 8TH JULY 2020 / ISSUE 12 / SLRMAG.CO.UK / 23

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