SLR June 2020 edition. by 55 North

JUNE 2020 | ISSUE 206

WWW.SLRMAG.CO.UK

MARK BRILL

What next as DRS becomes law?

LEIGH SPARKS

Retail is broken – how do we fix it?

AND SO IT BEGINS...

Phase I of the easing of lockdown restrictions signals a new era for local retailers

ENERGY CRISIS

Energy drinks shine in pandemic

ALL-IN-ONE APP NFRN’s new multipurpose app

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CIGARETTES THE ‘NEW DUAL’ RANGE A NEW DISTINCTIVE BLEND IN A UNIQUE DUAL PACK PLUS: This new distinctive blend is also available in Mayfair New Green Sterling New Superkings Green Berkeley New Superkings Green Benson & Hedges New Superkings Green

CIGARILLOS NEW STERLING DUAL CAPSULE LEAF WRAPPED TOBACCO LEAF WRAPPED STICK WITH A PEPPERMINT CAPSULE FILTE FILTER

VAPES LOGIC COMPACT NEW EXTENDED RANGE NOW INCLUDES 9 MENTHOL FLAVOURS

LOGIC EPIQ E-LIQUID AVAILABLE IN MENTHOL FLAVOURS

NICOTINE POUCHES NORDIC SPIRIT 100 TOBACCO FREE WITH 100% A FRESH MINT FLAVOUR

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June 2020

Contents

Contents ISSUE 206

NEWS p4

Symbol Groups Costcutter Supermarkets Group reports one of its strongest set of financial results to date. p5 Deposit Return Scheme Scottish Parliament approves draft DRS regulations. p6 Crime Key Holyrood vote on shopworker protection law is delayed. p8 Coronavirus The NFRN unveils a contact-free shopping app for its members. p12 News Extra Home Delivery Everyone scrambles for a piece of the action as boom looks set to continue. p14 Product News Border Biscuits lends its support to hospitals and care homes. p15 Off-Trade News Britain’s favourite red gets a new PMP and Global Brands taps into the watermelon trend.

INSIDE BUSINESS p16 Opinion Leigh Sparks Can we really be satisfied with the retailing system and the towns we have? p19 Hotlines The latest new products that suppliers want to see on your shelves. p26 Under The Counter The auld boy discovers that environmentally-friendly loo roll is not to be sniffed at. FEATURES p20 Sports & Energy Coronavirus has turbo-charged category sales at a time when they are already strong. p24 Sustainability An increased focus on sustainability could be one consequence of the ‘new normal’.

ON THE COVER p12 Coronavirus What lies ahead for local retailers as Scotland starts to ease out of lockdown?

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News SYMBOL GROUPS Massive sales rise for CSG

Certas launches free online resources Fuel supplier Certas Energy has launched Dealer Rewards, a new online resource that offers free access to personal wellbeing tools, learning courses and discounts from leading brands. The tailored wellbeing programmes can help forecourt retailers and their employees improve their personal wellbeing during the coronavirus outbreak. The resources are available to all Gulf and Pace dealer employees.

Copy England’s High Street Safety Fund, says SRC The Scottish Retail Consortium has urged the Scottish Government to earmark cash to help get ready for the re-opening of non-essential shops. The call came after the UK Government launched a £50m ‘Re-opening High Streets Safely Fund’ to let English councils introduce physical distancing and other

‘Outstanding’ 2019 for Costcutter Costcutter Supermarkets Group (CSG) has reported one of its strongest set of financial results to date, with sales increasing by 10% to £426m for the period 1 January to 31 December 2019. The symbol group also saw a £9m rise in earnings before tax (EBITDA) to £5.1m, completely reversing 2018’s loss of £4.2m. CSG boss Darcy Willson-Rymer said 2019 had been an “outstanding” year for Costcutter. He added: “Our ability to create innovative solutions that help our independent retailers put their shoppers first and grow their business has been pivotal to our success story in 2019.” The lockdown-induced resurgence of the convenience channel was reﬂected in a 22% rise in non-tobacco sales across the first four months of 2020, and Willson-Rymer plans to convert the ‘lifeline’ shoppers responsible for the spike into loyal Costcutter regulars. He explained: “We will do this through both the Shopper First programme and its proven ability to help

participating stores focus on the right range and offer with an emphasis on fresh foods, and by helping retailers become even closer to local communities.” Willson-Rymer also revealed an ambition for CSG to be the UK’s “best loved and most shopped” fascia: “By continuing to focus on bringing communities together to make their lives easier and more prosperous, we can build on the success we have achieved in 2019 and fulfil our purpose of helping independent retailers thrive.”

Thinking big: Costcutter boss Darcy Willson-Rymer

safety measures to help prepare high streets and shoppers for an

WHOLESALERS Industry veteran retires

easing of restrictions.

David Lamb leaves CJ Lang after 25 years

Hancocks Glasgow reopens The Glasgow branch of Hancocks reopened on 18 May along with eight stores south of the border. Opening hours are Monday to Friday 10am – 4pm. The move follows a successful trial in the Manchester depot. All other branches – including Dundee – remain closed for the time being. However Hancocks also announced that its Coventry, Stoke, Croydon and Reading branches will not reopen at all.

Sweet news for planet

David Lamb, Trading Director at CJ Lang, has retired from the company. After a long and successful career with Wm Low Supermarkets, Lamb joined CJ Lang in 1995 where he gained experience in the Convenience, Cash & Carry and Foodservices sectors. A long-term Executive Board member, he made a significant contribution to trading both at CJ Lang and as a member of the Spar UK national trading committee. CJ Lang boss Colin McLean said: “Over the years David has made a significant contribution to the Board and has helped steer the direction of the business. In the two years since I’ve joined Spar Scotland, David has

been a huge asset in sharing his wealth of experience in wholesale trading with CJ Lang and Spar UK. “On behalf of the Shareholders and the Board of CJ Lang, I would like to thank David for his loyalty, dedication and commitment over the last 25 years.” Richard Collins has taken over the Trading Director position. Collins joined CJ Lang from HubPix and previously held senior trading roles with Ramsden International and Costcutter Supermarkets Group. David Lamb commented: “I am very proud of the role I have played alongside CJ Lang colleagues and Independent customers in building the success of Spar in Scotland.”

Tate & Lyle has announced a set of new environmental targets

TOBACCO

and commitments in line with its

JTI stock take-back

‘Improving Lives for Generations’ core purpose. By 2030, it plans a 30% absolute reduction in Scope 1 and 2 CO2e emissions; a 15% cut in Scope 3 emissions; a 15% reduction in water use; and for all its waste to be recycled. There is also a commitment to eliminate use of coal by 2025 and to

With the one-year sell-through period now at an end, JTI has conﬁrmed it will take back all non-compliant Track & Trace, Menthol and Capsule 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: “Should your local JTI representative not be able to visit your store immediately following the implementation of Track & Trace and the Menthol & Capsule Ban, please ensure that you keep JTI Menthol & Capsule and non-compliant Track & Trace stock that needs swapping separate from other stock. For more help call your JTI representative, visit the JTI Advance trade website or call 0800 163503.

sustainably manage the amount of corn the business uses. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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News DEPOSIT RETURN SCHEME Parliament approves scheme despite last-minute plea

Holyrood passes DRS regulations The Scottish Parliament has passed draft regulations for the deposit return scheme (DRS), which will go live on 1 July 2022 – 15 months later than it was originally due to start. The scheme was voted through with 36 votes in favour, 16 against and 19 abstentions, despite an 11th hour call from the Scottish Wholesale Association for MSPs to halt DRS during the coronavirus outbreak. SWA boss Colin Smith said: “Scotland’s food and drink wholesalers will be bitterly disappointed that the DRS regulations have been passed by Parliament rather than being halted and revisited after Covid-19 disruption has dissipated.

“This is meant to be an evidencebased policy but the evidence on which it is built – container numbers, return points, queueing spaces, online food shopping – will have fundamentally changed as business exits Covid-19. “Wholesalers and others in food and drink are already under intense pressure with some businesses fighting for their very survival – there will be no time or money to spend trying to assist the Scottish Government or a still-to-be formed Scheme Administrator to set up the DRS.” Smith pointed out that while the revised July 2022 ‘go live’ date announced in March was welcome,

it “pre-dates Covid-19 and still needs manufacturers, wholesalers and retailers to start planning now but no-one will”. “We suggest that the Scottish Government will have to review this legislation again in six months to ensure that the policy objectives and business case still stack up in light of what the new economy will look like,” he said. Scotland’s DRS scheme will include plastic bottles made from polyethylene terephthalate (PET), aluminium and steel cans, and glass bottles. Under the scheme, a 20p deposit will be applied each time one of those single-use drinks containers is sold.

‘Inspired’ Nisa retailer runs rings round charity target An independent retailer has raised more than £2,000 for charity after being inspired by legendary war veteran Captain Tom Moore. Miv Chahal, owner of Nisa Prudhoe in Northumberland and keen marathon runner, completed 100 230-metre laps around the precinct where the store is based to raise funds for NHS Charities Together. After setting an original target of £500, Miv collected a total of £2,400.

Donations ﬂood in for NFRN Hardship Fund JPI Media, Just Employment Law and Warburton’s are the latest companies to back the NFRN’s Covid-19 Hardship Fund. They join previous donors Booker,

WHOLESALERS United gets ready for easing of restrictions

POST OFFICE

UWS deep cleans depots

Camelot, Coca-Cola European

P.O. to top up postmasters’ June pay

Partners GB, dmg media, Japan

Postmasters will receive a 15% top-up of their variable remuneration in June from the Post Office. The Post Office had previously guaranteed independent postmasters 100% of their remuneration in April and 90% in May. The guarantee covered both fixed and variable remuneration. The rate of remuneration reflects previously announced increases that came into effect on 1 April. All branches that are currently receiving fixed remuneration will continue to do so in June. Branches operated by independent postmasters that are struggling to remain open or to open at all in May and are not eligible for coronavirus financial support from the UK Government may receive additional support from the Post Office in the form of a hardship payment to provide immediate relief. Nick Read, Post Office Chief Executive, said the support on offer for June would let postmasters “plan ahead”.

districts and branches have also

United Wholesale (Scotland) has prepared for the potential easing of lockdown restrictions by deep cleaning its depots using biofogging technology more commonly seen in hospitals. Specialist contractor PSS Group carried out the procedure using specialised hand-held devices to deliver a disinfectant solution in a mist form. All of United’s three depots have now been successfully decontaminated during closing hours to reduce the risk to customers or staff. Chris Gallacher, MD of United Wholesale (Scotland), said: “Our depots have remained open during the coronavirus crisis and we have introduced many safety measures

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to protect our customers, including social distancing. “We want to do everything we can to not only protect our workforce and customers, but to help drive down coronavirus cases and care for our NHS. Deep cleaning is a sensible plan for all businesses ahead of the easing of lockdown restrictions and provides reassurance to customers using the premises.” Mohammad Rajak, owner of Day-Today Bridgeton, added: “It’s fantastic to hear UWS is taking safety of its customers and keyworkers seriously. The recent deep clean at its depot with fog technology gives us that much needed confidence and that added layer of security whilst shopping.”

Tobacco International, Newtrade Media and Reposs. NFRN contributed to the fund.

Costcutter awarded GroceryAid gold status Costcutter Supermarkets Group has been awarded the top ‘Gold’ status by GroceryAid in recognition of its retailer support. The award recognises Costcutter’s efforts in awareness, fundraising and volunteering. Since becoming an active supporter of GroceryAid, Costcutter has held a number of events, including a charity golf day which raised over £13,000. The group has also run internal awareness campaigns.

Councils pay out £600m in business bailout cash Over 50,000 grants totalling over £600m have been paid out so far from two Scottish Government schemes set up to help businesses struggling because of the coronavirus. As of 5 May, over 71,000 applications were received for the Small Business Grant Scheme and the Retail, Hospitality and Leisure Business Grant Scheme across Scotland.

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News CRIME Fate of crucial legislation remains undecided

New boss for PayPoint PayPoint has announced the appointment of Nick Wiles as Chief Executive. Wiles joined PayPoint’s Board in October 2009 as a Non-Executive Director and has been Chairman for the past five years. He has been operating as Executive Chairman since last September, after then Chief Executive Patrick Headon stepped down due to ill health. Also, Lewis Alcraft, currently Chief Commercial Officer, has been promoted to the position of Chief Operating Officer.

FareShare CEO joins IGD Board of Trustees Lindsay Boswell, CEO of food redistribution charity FareShare, has joined IGD’s Board of Trustees. Boswell, who has been CEO of FareShare for 10 years, was previously Chief Executive at the Institute of Fundraising. IGD and FareShare are currently working with the food and consumer goods industry, and other charities, to safeguard a consistent supply of food to food

Key vote on shopworker protection law delayed The Scottish Parliament has yet to vote on whether MSP Daniel Johnson’s proposed Protection of Shopworkers Bill will proceed any further after the committee overseeing the Bill delayed publication of its report. Stage 1 of the parliamentary process should have been completed last month but the Economy, Energy and Fair Work Committee now expect to make their report by the end of June. It will also then also recommend whether MSPs should accept or reject the Bill before they vote on whether it should move to the second of three stages on its journey into law. It’s not clear when this key vote will take place, as the parliamentary timetable has been severely disrupted by the ongoing coronavirus outbreak. The Committee heard evidence from Johnson on 13 May and

Daniel Johnson gives evidence questioned him about the Bill, which would make it a specific offence to threaten, assault or abuse shopworkers. Stewart Forrest, Scottish Divisional Officer for shopworkers trade union Usdaw, said it was clear from the session that there is strong support for the intentions of the Bill, albeit with questions about the details. He said: “We would welcome the Bill progressing to the next stages of the legislative process when amendments can be fully considered.”

According to an Usdaw survey, incidents of abuse, threats and violence against shop staff have doubled during the current crisis. However, the Scottish Government takes the line that existing legislation is sufficient to protect retail staff. This prompted the Scottish Grocers’ Federation to write a strongly worded letter to the Cabinet Secretary for Justice Humza Yousaf asking the administration to throw its weight behind the proposed legislation. SGF Head of Public Affairs John Lee commented: “We have used the space afforded by the parliamentary delay to write to the Justice Secretary urging him to move on from this view and support the Bill. Convenience retailers have played a crucial role in getting Scotland through the Covid-19 crisis, and we owe it to them to create a safer working environment.”

banks during the Covid-19 crisis. NEWSTRADE Big Thank You

McColl’s new money man McColl’s has appointed Giles David to its Board as Chief Financial Ofﬁcer (CFO). David joins the business on 1 June 2020 having previously been CFO at Casual Dining Group, a position he was appointed to in 2017. He has over two decades of experience in senior ﬁnance roles across retail, hospitality, property and telecoms, and is a Fellow of the Chartered Institute of Management Accountants.

From Coors to crisps: Nick Williams joins Tayto Golden Wonder brand owner Tayto Group has announced the appointment of Nick Williams as Scotland Trading Controller. Williams has worked in the brewing industry for over 10 years, for Heineken and most recently Molson Coors. During this time, he managed a number of key customers across Wholesale, Convenience and

The Sun gives retail heroes a big thank you Registration has opened for the Big Thank You Tour (bigthankyoutour.co.uk), the Sun and Virgin Radio’s three arena shows that acknowledge the efforts of key workers during the coronavirus outbreak. Anyone who has been classified as a key worker – like c-store staff – can apply for a pair of tickets for themselves and a guest. Tickets are free, and 35,000 are available. The tour hits the SSE Hydro in Glasgow on 1 November and will feature a roster of chart-topping talent. Other shows take place in London and Manchester. The London leg will also include The Sun’s Who Cares Wins awards. Registration closes at end of June, when a ballot will be used to randomly select the gig-goers. All attendees must be aged 14 or over, and under-18s must be accompanied by an adult. News UK Retail Director Neil Spencer said: “Retailers have been the lifeblood of their local communities throughout this crisis and as an industry we are extremely grateful for all the work that has gone into ensuring our readers can still access their favourite newspapers at this time. “The Big Thank You Tour is a way to say thank you to all key workers, and I hope our retail heroes will be a big part of this, so please do get nominating.”

CORONAVIRUS

PayPoint unveils initiatives to support retailers To help retailers make it through the coronavirus outbreak, PayPoint has waived the yearly inﬂation increase to its service fees. Furthermore, PayPoint will now bill for service fees in arrears while retailers forced to close their stores can also claim a service fee refund for the closure period. A new campaign recognises PayPoint retailers who have gone ‘above and beyond’ to serve their communities during the pandemic. Winners of the ‘Local Heroes’ awards will be showcased across PayPoint’s social media channels, receive a certiﬁcate and a £500 donation to a charity of their choice.

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News CORONAVIRUS Newsagents’ group launches new tech solution

CSG offers free Covid support materials Costcutter Supermarkets Group has added to its range of Covid-19 support materials and guidance. All are now available for free to independent retailers from freshstart.costcutter.co.uk. The package includes a guide to implementing social distancing in-store and vital point-of-sale materials. Costcutter retailers also share their experience of serving their communities during the pandemic.

Post Ofﬁce sees surge for parcel service Drop & Go, the Post Ofﬁce’s fast track service for businesses and online sellers sending parcels, has seen a 30% increase in use since lockdown started. The number of new customers signing up for the service is three and half times higher compared to the same period last year. An

NFRN unveils contact-free shopping app for members Mobile app Jisp has partnered with the NFRN to offer retailers an all-in-one solution providing same-day home delivery, click & collect, mobile payments and in-store scan & go services. With Covid-19 and social distancing dictating current consumer behaviour, the app is intended to help independent stores avoid unnecessary human interactions and negate queues, while also creating an additional income stream. It provides a suite of contact-free shopping solutions for both in-store and at home. In-store barcode scanning with a smartphone automatically adds products to a virtual basket and lets shoppers checkout securely via the app. Several NFRN members’ stores will trial the app over the coming weeks. NFRN National President Stuart Reddish said: “Covid has accelerated digital in retail and, given the current complexities of serving customers, along with future opportunities digital brings, we’re pleased to announce this brand-new partnership with Jisp.

“This opportunity comes at a time where physical meets digital in retail, and we’re well placed to provide the most advanced app for our members across the UK & ROI that will be loved by our customers too.” Julian Fisher, CEO of Jisp, added: “We are delighted to become the big voice for smaller businesses wishing to kickstart their digital presence. Whether it’s home delivery, click &collect, scan & go, communications or gamification, this app will set the benchmark for the retail experience of the future.”

in-branch and digital advertising campaign to promote Drop & Go goes live this month.

PayPoint retailers redeem 250,000 CashOut vouchers PayPoint has revealed that more than 250,000 vouchers for disadvantaged people – collectively worth over £8.5m – have been redeemed through its network since 1 April 2020, using its CashOut digital vouchers service. In Scotland, North Lanarkshire Council and South Lanarkshire Council use the approach to facilitate their free school meal programmes while schools are closed.

Calls for government to prop up retail rents Helen Dickinson, Chief Executive of the British Retail Consortium, has urged the Government to support rents for retail properties. The call came after publication of the inaugural BRCLDC Vacancy Monitor, which revealed a consistent increase in the number of stores lying empty. When broken down into 11 regions, Scotland had Great Britain’s ﬁfth-lowest vacancy rate

SYMBOL GROUPS Supplier thanks independent retailers

WHOLESALERS

Fever-Tree initiative rewards Nisa store workers

Women in Wholesale ‘take control’ with lockdown videos

Colleagues at some of Nisa’s partner stores have been receiving special gifts as a thank you for all their hard work over recent weeks, thanks to premium mixer brand Fever-Tree. The supplier had been due to work with Nisa’s key account partners at an event which was cancelled due to the outbreak of the coronavirus and it wanted to support them in a different way. Rob Steadman, National Convenience Manager at Fever-Tree, said: “We were unable to go ahead with our arranged event and so we chose to run an initiative whereby key account retailers could nominate particular staff who, during this time,

deserve recognition or just need a pick me up.” Working closely with the key accounts team at Nisa, Fever-Tree identified colleagues at stores around the country and sent out surprise gifts to be enjoyed by the nominated shop staff. Head of Key Accounts at Nisa Vicky Lockie said: “This was such a lovely gesture by Fever-Tree and I know our partners in key accounts have thoroughly enjoyed making the most of it by nominating a member of their team. “Being part of Key Accounts offers this group of retailers the opportunity to work closely with certain suppliers and we were all disappointed the event we had arranged had to be cancelled. This is a great way to create a reward for staff going above and beyond.” Fever-Tree is just one of many suppliers that the Nisa Key Account team are working with to support retailers in enhancing their proposition.

Organisers of Women in Wholesale (WiW) have launched a series of vlogs and webinars to keep members supported during lockdown. In line with this year’s theme ‘Take Control’ the video series kicks-off with how key industry ﬁgures are coping with working under the current lockdown situation. A ‘Take Control of Working from Home’ panel will be followed by a ‘Resilience in Lockdown’ webinar hosted by leadership and resilience specialist Caroline Dakin, who was voted one of the top speakers at the WiW Conference 2019. To receive the free-of-charge vlogs and webinars sign up to the WiW newsletter or follow WiW on Twitter.

(12.9%). KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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Home Delivery

News Extra

NewsExtra TURBOCHARGE YOUR ENERGY DRINK SALES – P19 HOME DELIVERY Everyone gets on board as boom looks set to continue

Signed, sealed, delivered As surveys indicate that the current surge in home delivery will continue after the coronavirus crisis is over, rival platforms are signing deals with wholesalers in a bid to increase their share of the market.

One of the more welcome effects of the coronavirus on the convenience retail sector has been the surge in demand for home deliveries, as an increasing number of shoppers choose to shop online rather than risk picking up a case of Covid-19 along with their groceries in-store. To take one example, home delivery platform Snappy Shopper has recorded a fivefold increase in store numbers on the back of demand from retailers and customers during the crisis. Platform sales soared 534% in the five weeks after the lockdown started compared to the five weeks before. Whether or not demand will drop off again once the pandemic subsides remains to be seen, but a couple of recent surveys suggest widespread home delivery could be here to stay. Research from Retail Economics revealed that more than a quarter (28%) of consumers said the way they shop will change permanently because of Covid-19, with 43% of consumers switching to purchasing products online they had previously only ever purchased in-store. Similarly, the HIM and MCA Insight UK Recovery Report 2020 found that 29% of shoppers are shopping online for food and drink more than before the lockdown began. More significantly, 20% of them plan to keep using grocery delivery services more even when lockdown has ended. With demand clearly there, and with large incremental sales to be made – Snappy Shopper said its top-performing store took in an extra £39,800 one week – it seems that everybody wants a piece of the action. This includes Spar Scotland which recently rolled out Snappy Shopper in stores across Dundee, Aberdeen, Glasgow, Inverness, Uddingston and Ayr, with plans for further launches over the coming weeks. In a similar move south of the border, Snappy Shopper secured its most significant deal to date www.slrmag.co.uk

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which will see it debut in up to 250 stores serviced by West Midlands-based Spar wholesaler AF Blakemore. Closer to home, United Wholesale (Scotland) signed a long-term deal with Glasgow-based technology firm DrinkSorted to make home delivery available to its chain of 500 Day-Today and USave shops, and around 1,000 independent stores. UWS and DrinkSorted expect to handle over 250,000 orders each month, with an average basket spend of £22. DrinkSorted was originally set up to provide home delivery of alcoholic drinks within one hour, and has since expanded to include a full range of grocery products. DrinkSorted already has existing deals with several independent retailers under various fascias, including Costcutter, KeyStore, Spar and Best-One, as well as online whisky specialists Scotch Whisky World. Meanwhile, rival platform Shoply is collaborating with the Scottish Grocers’ Federation on a partnership that will see the home delivery platform piloted across a number of SGF member stores. Formerly known as Drinkly, the Edinburgh tech start-up has rebranded as Shoply to support its expansion into convenience home delivery. Thirty retailers throughout the UK currently use the platform. Discounter Aldi has also stepped into the arena by launching an experimental home delivery service in partnership with Deliveroo. The trial started with a store in Nottingham and rolls out to a further seven branches this month. Customers can order from over 150 Aldi products. The initial range of essential items – like bread, milk and fresh produce – will then be delivered to customers’ doorsteps in as little as 30 minutes. If successful, the service could extend to further Aldi stores by the end of 2020.

Convenience Matters with the SGF The Scottish deposit return regulations have belatedly gained ﬁnal approval from the Scottish Parliament. A chamber half-empty due to personal distancing requirements half-heartedly voted for DRS to become law. Our understanding is that none of the opposition parties voted for the regulations: despite having more than 3 years to work on this, the Scottish government has totally failed to build a crossparty consensus. The scheme will now go live in July 2022. Or will it? We are now at an absolutely vital stage where the success of the scheme – and any realistic chance of meeting even the 2022 date – is totally dependent on a scheme administrator being established very quickly. This is at a time when most of the industry is experiencing a massive impact from the Covid-19 crisis. If a scheme administrator isn’t formed soon the entire process could be derailed and the Scottish government will be left with a massive problem. In the meantime the key issues for us are to make sure the exemptions process works for retailers, that we can give retailers the information they need to make decisions on automated take back or manual take back, the impact on cash ﬂow and so on. One unintended – but perhaps very positive – consequence of this crisis is that shoppers have embraced convenience. If we can keep them there, increase footfall and the customer spend on the product categories such as soft drinks which are part of the scheme, then deposit return could yet be made to work for convenience.

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Comment

IT’S TIME TO START CREATING A LOCKDOWN LEGACY We may only be in Phase One of First Minister Nicola Sturgeon’s ‘route map’ out of lockdown with three more phases to go, but the recent very slight easing of lockdown conditions is the first major sign that we have finally set foot on that long and winding road back to normal or, as the already cliched phrase has it, the ‘new normal’. The world has undoubtedly changed over the last few months. Shoppers have changed. Retailers have changed. How people view their communities has changed. How people shop has changed. What people consider important has changed. And do you know what? A lot of that change is for the better. The world has, it seems to me, become a little less self-obsessed and a little more awake to the fact that we are all in this big thing called life together and we all need a little help now and again. Local retail has of course been at the heart of this shift with retailers across Scotland and the rest of the UK demonstrating that retail in its deepest sense means more than just selling stuff. Yes, being able to provide communities with the vital products and services they need is fundamental to any well-functioning community. But there’s so much more to true community retailing – and coronavirus has opened more shoppers’ eyes than ever to this fact. The relationships between local retailers and their communities are stronger than ever, but like all good relationships, it’s a two-way street. We need to be there for each other in the good times as well as the bad. Let’s be honest, coronavirus has offered our sector a rare opportunity to truly shine – and by god, our sector has done itself proud. But what we really need to come out of this whole calamity is a legacy. We need many of the shoppers who now use our stores to stick with us. There are many research studies that suggest they will – but we can’t rely on them doing so simply because of goodwill. Goodwill has a habit of not lasting. No, we need to keep developing our stores and our offer to give them as many compelling reasons as possible to stick with us in the long term. The time to start thinking about how you create that legacy in your community is now, if you haven’t done so already. This is a once in a lifetime opportunity that we must not squander.

EDITORIAL Publishing Director & Editor Antony Begley 0141 222 5380 | abegley@55north.com Web Editor Findlay Stein 0141 222 5389 | fstein@55north.com Editorial Contributor Karen Peattie

ADVERTISING Advertising Manager Robert Aitken 0141 222 5302 | raitken@55north.com

DESIGN Design & Digital Manager Richard Chaudhry 0141 222 5388 | rchaudhry@55north.com

EVENTS Events & Operations Manager Kirsty McDowall 0141 222 5383 | kmcdowall@55north.com

CIRCULATION & SUBSCRIPTIONS Scottish Local Retailer is distributed free to qualifying readers. For a registration card, call 0141 222 5381. Other readers can obtain copies by annual subscription at £50 (UK), £62 (Europe airmail), £99 (Worldwide airmail). 55 North Ltd, Waterloo Chambers, 19 Waterloo Street, Glasgow, G2 6AY Tel: 0141 22 22 100 Fax: 0141 22 22 177 Website: www.55north.com Twitter: www.twitter.com/slrmag DISCLAIMER The publisher cannot accept responsibility for any unsolicited material lost or damaged in the post. All text and layout is the copyright of 55 North Ltd. Nothing in this magazine may be reproduced in whole or part without the written permission of the publisher. All copyrights are recognised and used specifically for the purpose of criticism and review. Although the magazine has endevoured to ensure all information is correct at time of print, prices and availability may change. This magazine is fully independent and not affiliated in any way with the companies mentioned herein. Scottish Local Retailer is produced monthly by 55 North Ltd.

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ENJOY RESPONSIBLY

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*Source: Prime database, IPSOS fiscal YTD 2020 until end of Dec 2019 **Source: Nielsen Total Coverage, Value share % MAT 21.03.2020 †Source: Nielsen Total Coverage, Value Sales MAT 21.03.2020

02/06/2020 15:41:50

Cover Story

Easing of lockdown

THE LONG AND WINDING ROAD

Last month saw the Scottish Government publish its ‘route map’ for how it intends to ease Scotland out of lockdown with Phase One put into action on 28 May. So what lies ahead for local retailers? BY ANTONY BEGLEY

C THE ‘R’ NUMBER AND WHY IT MATTERS The R number is the rate of virus reproduction and conveys the average number of people that would be infected by one individual with the virus. If R is 2, then two people would be infected by one person on average. So, if R is above 1 it shows that the virus is spreading in the population and if it is below 1, the virus is declining in the population. R is currently estimated to be between 0.7 and 1.0 in Scotland. At the start of lockdown, the Scottish Government believes it was between 4 and 6.

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oronavirus has changed everything. That much is clear from the last few months but with the recent publication of the Scottish Government’s ‘route map’ out of lockdown and with the implementation of Phase One kicking in on 28 May, it seems we are finally on the long and winding road out of lockdown. First Minister Nicola Sturgeon has so far taken a more cautious approach to easing out of lockdown than her Westminster counterpart Boris Johnson and only time will tell which approach was the better. Sturgeon said: “The lockdown restrictions have been necessary to reduce and mitigate the massive harm caused by the Covid-19 virus, but the lockdown itself causes harm including loneliness and social isolation, deepening inequalities and damage to the economy. That is why I have set out the gradual and incremental phases by which we will aim to ease lockdown matched with careful monitoring of the virus.” The First Minister predicts that, in some ways, easing lockdown will be more complicated than the full lockdown period. “Trusting each other will be vital,” she says, www.slrmag.co.uk

02/06/2020 15:41:51

Easing of lockdown

“as will recognising that every decision we take as individuals will have an impact on our collective wellbeing.” The most recent data for Scotland show there has been a welcome, sustained decline in new Covid-19 cases, hospital admissions, ICU admissions and deaths. There is some evidence that the current R number in Scotland [see panel] is slightly above that elsewhere in the UK and the Scottish Government’s current assessment is that progress, while real, is still fragile – and that room for manoeuvre remains limited. The ‘Test and Protect’ strategy will now see tests for all those above the age of five with symptoms, with those testing positive and their close contacts asked to self-isolate. The route map provides a phased approach to easing restrictions but it does not specify dates for each phase. The phases will be refined over time but a cautious approach is what the Scottish Government says it will take. Progress will be reviewed and reported every three weeks with announcements made on whether the country is ready to move from one phase to another. But what impact will the easing of lockdown have on local retailers? A number of studies indicate that the way consumers shop has changed forever with many shoppers stating that they have no intention of returning to the ‘old’ normal. Home delivery is here to stay, that much is clear. But how much of the ‘new’ business will retailers retain, and for how long? “I reckon that even with easing happening the local retailing sector will still see bigger than normal sales until at least Christmas,” says Graham Watson of Premier Watson’s Grocers in the rural Dumfriesshire village of Moniaive. “Shoppers aren’t going to just rush back to crowded supermarkets overnight because of the health risks. And I think a lot of shoppers have realised the real value of their local store in the last few months. I think a lot of them will want to keep using community stores.” Ayr Day-Today retailer Ross Macpherson also sees it taking a while before the legacy wears off – and urges retailers to do all that can to proactively retain the new custom. He www.slrmag.co.uk

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Cover Story

PHASE ONE – AN OVERVIEW EPIDEMIC STATUS

Q High risk the virus is not yet contained. Continued risk of overwhelming NHS capacity without many restrictions still in place.

CRITERIA/ CONDITIONS

Q R is below 1 for at least three weeks and the number of infectious cases is starting to decline.

NEW ACTIVITIES PERMITTED

Q More outdoor activity permitted and permission to meet up with another household outdoors, in small numbers, including in gardens, but with physical distancing Q School staff return to schools Q Increased number of children accessing critical childcare provision Q Re-opening of childminding services and fully outdoor nursery provision Q Transition support available to pupils starting P1 and S1 where possible Q Gradual re-opening of drive through food outlets Q Household waste recycling centres open says: “I think it will be many months before we get back to whatever normal is now. We’ve learned a lot during coronavirus and the pandemic has accelerated the adoption of new solutions like home delivery. We started using Snappy Shopper before the crisis but it has just gone through the roof in the last couple of months. We’re doing an extra £10,000 in both my stores and while I don’t think we’ll retain all of that volume post-coronavirus, I think we’ll keep enough of it to have a huge long term positive impact on the business.” Only time will tell what legacy Covid-19 leaves behind but the opportunity for local retailers to build something lasting and significant out of their heroic role in the worst pandemic in living memory is enormous.

“We know lockdown is doing harm of its own, causing loneliness and social isolation, deepening inequalities and damaging the economy. None of us want it to last any longer than it has to.” NICOLA STURGEON

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02/06/2020 15:41:52

News

Products

Coke rolls out new PMPs Coca-Cola European Partners has lowered the price-marks

ProductNews

across its portfolio of cola PMPs. Coca-Cola Zero Sugar and Diet Coke are now available in £1.75 price-marked 1.75-ltr bottles, while 1.5-ltr bottles of Coca-Cola Original Taste and Coca-Cola Cherry are now available in £1.95 PMPs. Also, 500ml bottles of Coca-Cola Zero Sugar now come

GET UP TO SPEED WITH SUSTAINABILITY – P24 BISCUITS Lanarkshire company thanks frontline staff

Border Biscuits supports hospitals and care homes

in a £1 PMP, as do Diet Coke Sublime Lime and Diet Coke Twisted Strawberry.

Perfectly Clear on screens Clearly Drinks has unveiled a new prime-time TV advert to re-launch its Perfectly Clear ﬂavoured water brand. In a bid to target families across the UK, the advert “invites children and grown-ups to dive into a fun, colourful watery world”. The ad is supported by an integrated marketing campaign that includes online advertising, inﬂuencer campaigns and PR activity.

FrieslandCampina perks up frontline NHS staff FrieslandCampina has been delivering its milk drinks to frontline workers across the UK. Over a six-week period at the height of the coronavirus outbreak, a team safely dropped-off 5,368 cases of Barista cold coffee drink and 409 cases of Yazoo Kids chocolate to 77,472 workers at 171 sites nationwide. Ambulance services the length and breadth of the UK have beneﬁted from the deliveries.

Maryland launches new price-marked packs Burton’s Biscuit Company has unveiled a range of larger, better value, price-marked Maryland Cookies packs, available exclusively to the convenience channel. From mid-June, the new £1 200g PMP range will replace the 99p 136g PMP range. It includes three variants: Chocolate Chip, Double Choc and Hazelnut. For further

Lanark-based Border Biscuits has donated over 60,000 biscuits to NHS hospitals and care homes since lockdown started, with that number continuing to rise. The company has made the donations through its Community Support charitable

foundation, to which it donates 10% of profits each year. Normally aimed at supporting projects that benefit Lanark or its townsfolk, Border Community Support has shifted focus during the Covid-19 pandemic. Most of the biscuits donated so far have gone to hospitals in Lanarkshire and the Lothians, including Edinburgh Royal Infirmary, the Western General Hospital and St John’s Hospital in the Lothians alongside Hairmyres University Hospital, Wishaw University Hospital and Monklands University Hospital in Lanarkshire.

John Cunningham, Managing Director of Border Biscuits, said: “We wanted to play our part in providing support to the brilliant staff within our NHS and care homes who are on the frontline of our country’s efforts in the fight against Covid-19. “We are pleased to hear from feedback that our biscuits are giving NHS and care home staff a boost during their shifts at this time. We are not stopping there, however, and our Community Support team’s work is continuing to provide even more support where we can in these areas.”

BREAKFAST

Consumers can win sports kit with Weetos The Weetabix Food Company has revealed a new on-pack promotion for its Weetos cereal as part of a strategy to put excitement back into the brand and boost sales. Launching this month, the promo will run across 500g and 350g £2.49 PMP packs until August. It gives consumers the chance to win one of nine prizes of £500 to spend towards sports kit and equipment. To enter, consumers need to send in a photo of their Weetos pack or bowl as part of a unique sporting environment – a basketball hoop made from the box, for example. A £12m brand and the fourth-biggest product in the chocolate cereal category, Weetos is currently enjoying 13% value growth. Abbie Randall, Marketing Assistant, Weetos, said: “We’re really excited to bring this promotion to retailers. The on-pack campaign will stand out on shelf, helping to raise awareness of the Weetos brand and increase visibility and sales in-store. “We know that our core audience of 5-15-year olds love playing sport so we wanted to help promote this via our on-pack giveaway and we’re conﬁdent that this campaign will increase brand engagement and appetite for the product, as well as being a great activity to get involved with when at home. Whilst it may not be the summer of sport everyone had hoped for, we still wanted to provide the opportunity to help people of all ages stay active and be in with the chance to win a head to toe sports kit.”

TOBACCO ALTERNATIVES

Zyn extends nicotine pouch range Zyn has added two new ﬂavours to its range: Espressino and Spearmint. Espressino tastes of freshly roasted coffee in combination with chocolate, nougat and vanilla. Spearmint has a mellow and spicy character with distinct notes of spearmint. A pack of 15 pouches has an RSP of £7. Email zyn@ blueocean.com or call Blue Ocean on 02392 449670 for trade enquiries.

information call 0330 6600 196 or visit burtonsbiscuits.com. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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www.slrmag.co.uk

02/06/2020 15:41:53

Off-Trade

Off-TradeNews News

News

Innis & Gunn backs ‘holiday hunger’ charity Innis & Gunn has announced a new partnership with Meals & More, a UK-wide charity which works to end ‘Holiday Hunger’,

WINE New price-marked pack for UK’s favourite red

Pernod Ricard uncorks Campo Viejo Rioja Tempranillo PMP

where children struggle to

Pernod Ricard has made sure there’s plenty of stock available for convenience retailers as it launches a price-marked pack of its bestselling Campo Viejo Rioja Tempranillo, the UK’s number-one red wine. The brand is currently growing ahead of the Spanish wine category and is leading the charge to restore overall category growth with a new £7.99 price point. The bottle features a neck sticker with a £7.99 price-mark to drive sales even further for convenience retailers. PMPs are a key sales driver in convenience sector, with 82% of shoppers looking to purchase them as a part of the weekly shop. Over four-

by a number of initiatives to

fifths (83%) of retailers also claim PMPs sell faster in their stores than the equivalent plain packs. Chris Shead, Off-Trade Director at Pernod Ricard UK, commented: “Consumers are savvy and know the average price of their favourite wines. With 61% of shoppers believing PMPs offer better value for money than a non-price-marked pack, we’re launching one on our most popular wine to give consumers the confidence they are being offered good value, help retailers shift more stock and keep shelves rotating.” Campo Viejo Rioja Tempranillo PMPs is available in six-bottle cases from major wholesalers (PMP £7.99).

get food to eat when they are not in school. The brewer has pledged a six-ﬁgure support package which will be bolstered be announced in the coming months.

Wild Thyme to be had with Old Tom Hebridean island distillery Wild Thyme Spirits is set to launch an Old Tom-style gin, called Cait Sith (pronounced Caught Shee) this month. The small batch gin is based on Wild Thyme’s multi-award winning Colonsay Gin and, in true Old Tom style, is drier than a Dutch Genever but sweeter than a London Dry. It is bottled at ABV 40%. To stock please contact info@ wildthymespirits.com.

RTDs

Shake Baby Shake taps into watermelon trend

VK teams up with boohoo for promo

Canned cocktail brand Shake Baby Shake has unveiled a new Watermelon Daiquiri flavour (ABV 4%). The launch taps into a blossoming demand for watermelon flavour in alcoholic drinks, which has grown 63% year-on-year. Shake Baby Shake’s newest cocktail combines watermelon and lime, mixed with white rum. It joins an existing line-up of Martini, Raspberry Mojito and Tropical Daiquiri flavours, which are now worth £1.73m. The launch is supported by influencer-driven social media activity. Charlotte Leaver, Senior Brand Manager at Global Brands, said: “As canned cocktails continue to drive the RTD category forward with exciting innovation after exciting innovation, our new Watermelon Daiquiri is sure to be a summer smash. The flavour encompasses all that is great about the Shake Baby Shake brand; a fantastic, mouth-watering on-the-go cocktail in totally gorgeous, Insta-worthy packaging.” The Shake Baby Shake range is available in 250ml individual cans, four packs and a 2.25 litre bag-in-box. For more information call 01246 216000, email info@ globalbrands.co.uk or visit globalbrands.co.uk.

Ready-to-drink brand VK has unveiled a new on-pack promotion offering consumers an extra 10% off at online fashion retailers boohoo and boohooMan with every purchase of its mixed 10-pack. The promo is part of new campaign ‘#WeAreSummer’, which is focused on “looking great and having fun across the summer months”. It will see VK work with 2020’s Love Island star Luke Mabbott, in addition to the continuing partnership for the second year running with Alex and Olivia Bowen. The campaign is expected to reach over 23 million consumers on social media with a mix of inﬂuencer activity and giveaways. The brand is also running a competition in the mixed pack giving consumers the chance to win a holiday for four to Ibiza in 2021. It has also launched a limited-edition Raspberry & Peach ﬂavour to tie in with the campaign.

Accolade launches Echo Falls Botanicals Accolade Wines has unveiled new range under its Echo Falls brand. Echo Falls Botanicals (ABV 5.5%) is available now to Nisa retailers in 75cl bottles (RSP £4.50) in two ﬂavours: Melon & Mint and Raspberry & Lavender. The bottles are the ﬁrst in the Echo Falls portfolio to feature a refreshed label design. The new range is targeted at the generation-z and millennial audiences driving current consumer interest in botanicals.

Spar makes Gen!us move Spar Scotland has rolled out Gen!us Craft Lager across all its stores. Gen!us (ABV 3%), described as the UK’s ﬁrst light craft lager, was launched in 2018 and is vegan friendly and contains 79kcal per 330ml can. Gen!us Brewing is an Ofﬁcial Fundraising Partner of the My Name’5 Doddie Foundation and donates 5p for every can sold to the motor neurone disease charity.

www.slrmag.co.uk

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JUNE 2020 | SLR

02/06/2020 15:41:54

Inside Business

Opinion | Professor Leigh Sparks

WHAT SHOULD WE VALUE ABOUT RETAILING AND TOWNS AND WHAT SHOULD WE DO ABOUT THEM? Recent weeks have shown that the concept of ‘place’ has become more important to more people than ever before. Can we really be satisfied with the retailing system and the towns we have, once the dust sort of settles from the pandemic? BY PROFESSOR LEIGH SPARKS

he retail system in the UK is broken. It works for quite a lot of people most of the time, but mainly the affluent and the car-borne, though

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not for all. When it does work, it does so at the expense of both society and local economies. It is not sustainable in the broadest sense and does not meet the obligations we must now

accept as necessary for rebuilding our future. Our towns, places and high streets are broken. We have accepted the ways things have been for many years, in the pursuit of low prices and the often false god of economic productivity. Retailers have become disassociated from their local markets, consumers and places and even more distant from many of the suppliers they rely on. This is especially so in terms of food retailing. Covid-19 must alter our perceptions and challenge our willingness to accept this ‘bargain’. We deserve better in so many ways. Now, this is not to say that multiple and large-scale retailing does not have its place – it does. Nor is it to argue that the just-in-time supply system in food failed under the weight of binge-buying ahead of lockdown. The response from many such retailers, producers and supply systems has been impressive and the recovery effective. Consumers have gained and do gain benefit from the www.slrmag.co.uk

02/06/2020 15:41:55

Professor Leigh Sparks | Opinion

Inside Business

operation of large retailers. But do they pay their way, and should they be more responsible (to producers, consumers, suppliers, places, communities) in their dealings? More fundamentally, should we engineer more of a balance in the system in order to provide properly for more of our population? This is also not just about providing economically, but also socially. So, what might we want our retail sector to look like? It needs to be a system that works for all and not just for some. Food banks are not an acceptable component of any advanced economic system. We need an enhanced local focus, reducing dependency on long, complex, supply chains. The pandemic has highlighted the inequality we knew was there but kept wanting to forget about. Local must be a major focus. This is about local neighbourhoods and places as well as the local supply chains and assets that are required to break our over-dependence on international and distant supply. A renewed focus on community, support and place has been demonstrable in recent weeks. We need to build on this. The plight of many artisan and local producers, unable to supply their normal markets should be a wake-up call. We have great local producers and products and we should be seeking to support them by opening up local markets and focusing on local consumers. We must connect better our producers and our consumers, and this is best done in towns and town centres. This implies a rebalanced sector with switches from national multiple chains to local and independent operations; from physical to digital taxation; and from a reliance on the car and out-of-town stores to in-town and neighbourhood stores and markets. It suggests a new relationship with quality and sourcing (and in food, our diet) and an underpinning need to enable people to access this physically and economically. We have proven through the last six weeks or so that previously impossible solutions are not that, and that we can rethink our approach and systems. We cannot go back to what has been failing us generally; we need to be bold and rethink these relationships and redefine what is acceptable. www.slrmag.co.uk

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JUNE 2020 | SLR

02/06/2020 15:41:59

Inside Business

Opinion | Professor Leigh Sparks

My focus above has been mainly on food retailing, but the issue is broader than that. If we are serious about supporting ‘the high street’ and town centres, then this is the opportunity to rebalance to focus on what we value and thus what we should be active in encouraging and discouraging; one or the other is not an option. If we accept that, then what measures could we take to make this happen? Some initial ideas include: A rebalancing of taxation between digital and physical retail. Online has expanded during this crisis and many of those who have used online may well continue to use it. We need to rebalance taxation to accept and reflect what has now changed in business operations. If we want physical stores we have to stop taxing them out of business whilst allowing others a free pass at using, but not paying for, common good (such as the roads they currently use for delivery). International tax avoidance should be stopped. This is not to try to end online, but to reflect its true costs and also the changing nature of business. Immediate substantial increases in income for ‘key workers’ and those currently marginalised in our economy. These people and jobs (including shop workers) have real value to our economy and society. Disincentivise retail components damaging the concept of place and not paying their true social and economic costs e.g. out-of-town carfocused stores. The current lockdown has seen the rediscovery of local and community, often focused around place. Activities that damage place need to be challenged and refocused. Some of this can be done by fair taxation (including abolition of rates for high street independent retailers), reflecting the true economic and social cost (fresh air now trafficis much reduced anyone?). However, there might also be a need to directly challenge rights of operation. If businesses are hurting communities in the broadest sense should they have a right to continue to operate? Change the VAT system to reward the reuse of historical and existing

buildings rather than as currently happens rewarding new build on often greenfield sites. Allied to this there needs to be substantial economic protection and support for independent producers and retailers to encourage their sustainability and growth. If we value the local and entrepreneurial, then we need to support them. We are saying that c-stores and local independents have done a fabulous job in the pandemic; let’s show it afterwards by making the ‘playing field’ rather more level. The proportion of their spend made in local areas is far higher; they are the glue of the social networks we claim to value (as they have shown over the last few weeks). Requirements on retailers of all

markets on a regular basis, with ‘local’ (and ‘farmers’ and ‘fishers’ for food) being defined terms and a responsibility on local authorities to provide space and opportunity for such markets on a regular basis. Some of this would be physical – as markets are inherently social – but strong encouragement for local collective and community supply is needed, whether physical and/or virtual. This must not be a burden on local authorities that is unfunded but a funded requirement. None of this denies the important role of mass retailing and production; this is about a rebalancing, not an abolition of the approach. But the retail (especially the food) system has failed us, and no amount of post Covid-19

sizes to demonstrate their ‘local’ credentials in terms of procurement and product and service supply. Too often local has been managed (if considered at all) by a few nods to local employment and some pictures of vaguely local producers in store. If we are willing to support local businesses through our taxation and licensing system, then we need mechanisms and measures to demonstrate that localness. This is not only in people, but in products, services, community payback and other measures of local community good that build places rather than extracting value. Financial and managerial support should also be provided for local

‘back to normal’ rhetoric should be accepted. The ‘old normal’ did not supply or nourish the nation in the way it should; we now must be able to feed our country on a sustainable healthy basis and build a sustainable future, focused around towns and place. This will require a radical shift in thinking and operations. The world has changed. Ending lockdown and returning to the old ways is not an acceptable way forward. We have seen that alternative futures and ways of doing things are possible. We must take this opportunity to change our towns and communities for the better, and it starts with local retailing.

PROFESSOR LEIGH SPARKS IS PROFESSOR OF RETAIL STUDIES AT THE UNIVERSITY OF STIRLING. THIS ARTICLE FIRST APPEARED ON PROFESSOR SPARKS’ BLOG AT WWW.STIRLINGRETAIL.COM.

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www.slrmag.co.uk

02/06/2020 15:42:00

Product News & Media Watch Logic Compact Intense mint flavours JTI

Great British Puds Swizzels

JTI has launched two new menthol ﬂavours into its Logic Compact Intense range. Both Berry Mint and Polar Menthol are available now in 18mg/ml nicotine salt pods, RSP £5.99. Menthol is currently one of the most popular ﬂavours within the vaping category and the launch coincides with the ban on menthol and capsule cigarettes. To find out more information, call the help desk on 0800 112 3401 or visit jtiadvance.co.uk.

Tropicana Essentials Energise PepsiCo

Great British Puds includes four varieties of individually wrapped chew bars in classic British dessert ﬂavours: Sticky Toffee Pudding, Lemon Meringue, Rhubarb Crumble and Apple Pie & Custard. It is available now in 150g hanging bags with an RSP of £1.29. Price-marked packs are also available. The product is vegetarian/vegan-friendly and was the winning entry in the brand’s 90th anniversary Sweetest Invention competition.

JPS Bright Imperial Tobacco

Tropicana has added a new ‘Energise’ variant to its Essentials functional juice range. It is available now in 330ml bottles with an RSP of £1.99. A blend of pineapple, passion fruit, banana and ginseng, the new ﬂavour also contains magnesium to help fight tiredness. The new ﬂavour scored a 90% purchase intent in early testing. The launch coincides with a packaging refresh for the Essentials line-up.

Targeted at former menthol smokers, JPS Bright offers a premium two-piece white stream filter tip to reduce the harshness of the smoking experience; Reduced Smoke Smell paper that cuts down the linger of smoke smell on fingers and clothes; and a new premium tobacco blend. It is available in super king size packs of 20 sticks with an RSP of £9.65.

MEDIAwatch

Hotlines



‘Irn-Bru gets you through’ returns Barr Soft Drinks has brought back its ‘Irn-Bru gets you through’ campaign, which kicks-off with reruns of classic TV ads like ‘Steamy Windows’. The campaign will offer moments of light relief from coronavirus with “splashes of humour, moments of distraction and the funniest fan content on how Scotland is getting through the lockdown”.

Good causes thank lottery players Camelot’s latest TV commercial features a chorus of “thank yous” to players from some of the frontline projects and organisations who are helping the nation during the coronavirus emergency and have received National Lottery funding. The ad is part of a marketing campaign running across TV, radio, social and digital.

Galloway extends STV deal Lactalis has kicked off a new STV sponsorship deal for its Galloway brand. The campaign runs until the end of December and promotes Galloway cheddar products as “the perfect ingredient for cooking for your family”. The campaign targets households with children and is expected to reach 80% of adults in Scotland.

Hot since ‘95 Tic Tac Coca-Cola Ferrero

Crunchips Wow Lorenz Snacks

This new special edition will be available in the next few months in more than 70 countries around the world and is supported by a global multi-channel marketing campaign. RSPs are 62p for T1 (18g) packs, £1.41 for T100 (49g) and £2.70 for T200 (98g). Ferrero said consumers can look forward to enjoying “an incomparable taste experience”. For more information on Ferrero products visit its retailer hub online at yourperfectstore.co.uk.

Lorenz Snacks has launched two new additions to its Crunchips range under the Wow sub-brand. Terrifying Jalapeno & Cream Cheese Inferno and Incredible Paprika & Sour Cream Pleasure are both available now in cases of 12 x 80g bags, RSP £1. The Crunchips range has more than doubled in sales value in the UK over the past three years. To stock contact UK distributor Envis Snacks on 023 9262 7130 or sales@ envissnacks.com.

Lynx is celebrating 25 years of its Africa variant with ‘Hot Since ‘95’, a £6.5m campaign that runs across TV, video-ondemand, out-of-home, social and in-store. Supporting it are a trio of brand ambassadors that includes heavyweight champion Anthony Joshua, chart-topper AJ Tracey and YouTube ‘star’ Calfreezy.

Yazoo back with a (big) bang Yazoo is back on screens after nearly 10 years, in a £2m broadcast sponsorship deal with Big Bang Theory spin-off series Young Sheldon. The advert features the drink in several different consumption occasions. Yazoo is targeting young impulse buyers with the campaign, which runs until the end of August.

for all the latest product news, head to www.slrmag.co.uk/category/product-news/ www.slrmag.co.uk

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JUNE 2020 | SLR

02/06/2020 15:42:02

Feature

Sports & Energy Drinks

VIRAL SALES

Coronavirus has turbo-charged sales of sports and energy drinks during a period when they are traditionally already strong, so how do retailers make the most of the opportunity?

arly summer is normally a good period for the soft drinks category in Scotland, particularly as we often get our best weather in May and June, but this is clearly not a normal summer. The spike in sales that retailers would ordinarily expect has been given a turbo boost by the effects of the current Covid-19 pandemic and consumers rushing to their local stores in preference to the long queues and potential contamination risks they may run in supermarkets. Matt Gouldsmith, Channel Director, Wholesale at Lucozade Ribena Suntory, says: “A spike in sales can normally be expected at this time of year given the weather and increased summer events, and when the sun comes out this can be boosted even further. However, this isn’t a typical summer due to coronavirus, meaning it’s more important than ever that Scottish retailers pay close attention to the needs of their customers and adapt their soft drinks range accordingly throughout the warmer season.”

RED BULL MERCHANDISING ADVICE 1 SPACE a Red Bull advises retailers to stock the most effective range to drive the greatest value b Category space should be aligned with share of value sales to maximise sales 2 FOCUS ON TOP FIVE BRANDS a 50-60% of Soft Drinks space should be allocated to the top ﬁve brands b Ensure 60-70% of space for Sports & Energy brands, in line with share of the category 3 VERTICAL BLOCKING a Shoppers only see products within a 1.3m breadth b Vertical blocking helps shoppers to easily ﬁnd the product they are looking for improving their ease of shop

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Gouldsmith points to hydration as a key driver in warm weather with soft drinks sales increasing by 1.6% for every 1-degree temperature change – and that’s before the effects of coronavirus. That means paying close attention to both instant consumption lines and take-home packs, as Gouldsmith explains: “This makes it crucial for retailers to have their drink-later soft drinks range, such as Lucozade Energy’s portfolio, including 1L bottles and multipacks, which has seen strong growth of 20%. This will help shoppers enjoy the warmer weather and BBQs in their gardens as well as elsewhere, when the lockdown restrictions begin to lift.” Energy is, of course, the biggest category within Scottish ‘drink now’ soft drinks worth £122m [IRI, Feb 2020], so it is critical that retailers get it right in-store. In fact, ror the past decade, energy drinks have been the fastest growing segment within the wider Soft Drinks category [Euromonitor, 2008-2018] with growth predicted to continue for the next five years [Mintel Sports & Energy Drinks Report 2019]. “Energy is an exciting and fast-growing part of the Scottish soft drinks market delivering the highest profit per litre for retailers, with over one in three soft drinks sold in convenience stores being an Energy drink [IRI, Feb 2020],” says Adrian Troy, AG Barr’s Marketing Director. “Consumers are increasingly opting for flavoured variants when choosing an energy drink, with flavoured energy now accounting for 34% of the mainstream energy market and growing faster than original energy [IRI, Feb 2020].” Red Bull also says that products that deliver added value for a range of summer occasions, such as www.slrmag.co.uk

02/06/2020 15:42:05

Sports & Energy Drinks

Feature

MORE MULTIPACKS. MORE SALES.

multi-vitamins, protein or a functional energy boost, continue to be popular. Summer clearly presents various opportunities for retailers to boost sales of soft drinks, as customers look for cool, refreshing options.

NPD Thankfully, there’s plenty for retailers – and shoppers – to get excited about in the vital sports and energy category. Red Bull, the UK’s number one energy drink brand, is bringing a new taste to the market with Red Bull Zero. The new Red Bull Zero formula delivers a similar taste to the classic Red Bull Energy Drink but with no sugars. Red Bull believes this gives consumers the choice to enjoy a zero-sugar product with a different taste than Red Bull Sugarfree, but the same “wiiings”. The reformulated Red Bull Zero offers shoppers more choice for those moments where they’d rather have less sugar. Alongside diet offerings experiencing growth, Zero variants are growing +20.7% [IRI, Sep 2019] displaying growing demand for zero calorie options. Lucozade, the UK’s biggest sport &

SUGAR: Sugar is an important component of energy for the majority of consumers, but a growing number are looking for a lower calorie or even sugar free option. Some energy drinkers may want zero sugar energy, but they don’t want it to look, feel, perform or taste different to regular energy drinks.

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¹ DS

INNOVATION: Energy consumers like to try new ﬂavours and retailers can keep their fixture exciting by ensuring they make enough space on their fixture to include NPD in their chiller.

IN A ST O HT

Adrian Troy, Marketing Director at Barr Soft Drinks identifies key trends driving the growth of Energy: FLAVOUR: Taste is the No.1 reason for a consumer to choose a soft drink and Energy shoppers are looking for more than functionality from an Energy product. Retailers need to ensure that Energy gets its fair share of space on the fixture in order to offer the choice of ﬂavours that shoppers are looking for and ultimately increase their profits.

BOU G

KEY TRENDS

3 SEC

SOURCE: ¹IRI INFOSCAN, TOTAL COVERAGE, UNIT SALES, RED BULL MULTI PACKS, 52 W/E 28.03.2020; *IRI INFOSCAN, TOTAL COVERAGE, RED BULL ENERGY DRINK, VALUE SALES, 52 W/E 28.03.2020.

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Sports & Energy Drinks

energy drink brand, has also tapped into the no-sugar trend with the recent launch of a new sub-brand. Sweetened with stevia, and with 4.3g sugar per 100ml, Lucozade Revive is designed to offer a different type of energy. It’s not a boost or a buzz, says the company, but a naturally inspired uplift that makes drinkers feel revitalised and back in the groove. Revive has natural fruit flavours, no artificial colours, and vitamins B3, B5, B6 and B12 to help reduce tiredness. Lucozade Energy has also introduced a new addition to its £66.8m flavours range ahead of the summer season. Lucozade Energy Citrus Chill, a new lemon & lime flavour, is available in 380ml PMP and standard packs. Meanwhile, Rockstar recently launched Baja Juiced El Mango,

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packed full of real mango juice, guarana, ginseng, B-Vitamins and caffeine. As higher caffeine energy drinks are delivering strong market growth in the USA, Rockstar XD Power has also been launched to offer a different proposition to current energy products, appealing to the 61% of men in the UK aged 16-34 who use supplements. The performance is delivered by 200mg of caffeine per can, complemented by branchedchain amino acids and B vitamins, which directly impact energy levels and brain function.

PMPS According to LRS’s Gouldsmith, price-marked packs remain important for retailers when it comes to demonstrating value to energy and sports drink shoppers.

“They need to be balanced alongside shopper insight and store-specific requirements in order to meet the needs of consumers,” he says. “To help retailers make the right choice on what to stock we offer the option of price-marked or non-pricemarked packs across our range of soft drinks, including leadingbrands Lucozade Energy and Lucozade Sport.”

DRINK LATER One trend that is worth noting is the growing importance of larger format and multipack offerings, as Gouldmsith comments: “Scottish independent retailers are a critical part of our business and we are constantly looking to adapt our offering to support them in the best way we can. One way we’ve achieved this is by

offering new drink-later formats to suit the trends resulting from Covid-19. “The small changes retailers make this summer will help to secure new loyal customers in the future.”

TOP DOGS Of course, no retailer can afford to be without Red Bull Energy 250ml, the company’s bestselling SKU and the single most valuable soft drink in the UK. Red Bull Energy Drink 250ml is worth over £144m and continues to grow year-on-year [IRI, Sep 2019]. Another important brand in Scotland is Irn-Bru Energy which, says Barr Soft Drinks, established itself as “last year’s fastestselling soft drink in Scottish convenience” [IRI, Jul 19].

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ENERGISE YOUR SALES

®, MONSTER ENERGY ULTRA® and UNLEASH THE ULTRA BEAST!® are registered trademarks of Monster Energy Company.

*Nielsen – Total GB, MAT Value Sales % growth (min 30% ND), WE 22.02.2020.

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Sustainability

SUSTAINABILITY SET TO BE A FOCUS IN ‘NEW NORMAL’ As Scotland begins the process of easing out of lockdown, it looks clears that customers will have different priorities under the ‘new normal’ and an increased focus on sustainability could be one consequence.

ll the normal rules of retailing clearly went out the window over the last few months as both retailers and shoppers turned their attentions to simply getting their hands on the staples and basics they needed to survive – but as we begin the process of easing out of lockdown, we will see consumers begin to turn their attentions to more ‘normal’ priorities. It’s clear that the world has changed in the last few months with a sense of community returning to many parts of Scotland and once consequence of a more compassionate society is likely to be a greater focus on sustainability. We’ve all realised how precious our communities and environment are to us recently; it makes sense that we might want to take more care of them in future. That presents a fantastic opportunity for community retailers to do the right thing – and also grow their businesses into the bargain. One thing we now know for sure is that Scotland will have a Deposit Return Scheme (DRS) come July 2022. The Scottish Parliament voted to pass the DRS legislation into law last month so at least we have some clarity on that issue. But what does it actually mean for retailers and what happens next? Mark Brill, Vice President Sales and Marketing at TOMRA Collection Solutions UK & Ireland, explains: “A Scheme Administrator will be appointed in the next few months. They will be 24

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responsible for the operational aspects of the scheme.” The ‘go live’ date for the scheme has been set as 1 July 2022, with the rest of the UK set to follow suit in 2023. The scheme will include PET plastic bottles (such as most fizzy drinks and water bottles), steel and aluminium cans, and glass for all types of drinks in these containers ranging from 50ml to 3L. It’s a huge challenge for the sector, but one that Brill is encouraging Scotland’s local retailers to tackle positively. He comments: “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.” Brill says some large, multi-site retailers are already planning for how they will accept returns but he urges local retailers to use this time to understand the scheme and their role within it. The obvious Big Question will be whether retailers choose an automated returns system via a reverse vending machine (RVM) or a manual system. That decision will largely come down to how many customers a store typically serves in a week and, of course, whether they have space inside or outside the store for an RVM. There are however several very small footprint

QUORN HELPS TACKLE CLIMATE CHANGE Quorn has launched a campaign to highlight how the brand is helping people take a ‘Step in the Right Direction’ when it comes to sustainable food choices, as part of the fight against climate change. The multi-million pound campaign is spearheaded by ‘Step in the Right Direction’ TV advertising and the introduction of Carbon Trust certified ‘Farm to Fork’ carbon footprint data on its top-selling products, rolling out on packs this month. The new TV campaign runs throughout the year and asks people to consider their food choices in the fight against climate change. Quorn is the first meat free food manufacturer in the world to publish the carbon footprint of its key products and the first food manufacturer to go through the Carbon Trust’s Climate Leadership Framework, to help identify a roadmap towards achieving net zero emissions.

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Sustainability

options available to retailers now, including Tomra’s M1 machine. What really matters however, is the fact that a DRS scheme is very likely to be popular with customers and, managed well, can help drive footfall and engagement as well as enhancing the experience of visiting your store.

“A DRS creates a wealth of opportunities,” says Brill. “From helping the environment to 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.

Feature

LRS ‘GROWING FOR GOOD’ As part of the Suntory Group’s ‘Growing For Good’ vision, Lucozade Ribera Suntory is using its position in the industry to lead the soft drinks category in driving positive change. “Growing For Good means everything we do as a company always benefits its community, and by continuing to do good things for society and the environment we will help make a better, brighter future post-Covid-19 and beyond,” says Matt Gouldsmith, Channel Director, Wholesale at Lucozade Ribena Suntory. The company is helping identify quick sustainability wins for local retailers to help them reduce their carbon footprint and improve their sustainability credentials at every possible step, including what they buy and where they shop. Over the next 12 months, LRS and the Energy Saving Trust are partnering with a retailer on a major project to show how small changes can make a big difference in making stores more environmentally and financially sustainable. They will be looking at areas including lighting, chillers, heating and waste reduction. The company has also made significant progress in reducing its reliance on plastic, such as moving to make Ribena Squash and Ribena 500ml bottles out of rPET, and in 2019 Ribena’s best-selling bottle was light-weighted, removing 325 tonnes of plastic from production annually. All Lucozade Sport bottles will be made with 100% recycled materials from this year as part of the company’s ambition to move to using 100% sustainable plastic across its entire portfolio by 2030. “We have also invested in our Coleford factory, opening a new £13m energy and water-efficient production line,” says Gouldsmith.

are All o 10 ur 0% bo rec ttles yc lab le

GROW YOUR SALES WITH HYDRATION FROM A NATURAL SOURCE

Highland Spring is the No.1 plain bottled water brand*

STOCK UP NOW *Nielsen Total Scotland value 52w/e 16.05.20

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UTC

BUM DEAL

What with all the recent toilet roll panic buying, the auld yin was hardly surprised to see new challenger brands entering the market. His favourite was Uranus Wiper. No, really. Uranus Wiper is an environmentally friendly bog roll that was launched to help raise awareness about the stigma around anal cancer. Fair enough. It reminded him of that old joke about what the Starship Enterprise and a toilet roll have in common: both of them circle Uranus searching for Klingons.

DESIGNER WHEAT

Never mind finding a cure for coronavirus, a team of scientists from Rothamsted Research have bred a type of wheat specifically to improve whisky production. According to the old boy, if you can’t be finding solutions to catastrophic global viruses, then the next best thing you can do with your time is help make better whisky. Apparently, normal wheat causes sticky residues which results in all manner of processing problems, higher energy use and excessive wear on pumps. The new stuff doesn’t. Which is nice. #FirstWorldProblems

MADE REDUNDANT? WE’RE HERE TO HELP… Ever on the lookout for thoughtful ways to help his fellow humans, UTC thought it was his duty to share a recruitment email that dropped into his inbox this week. So, it turns out Sex Doll Genie is looking for staff as it “races to fulfil a record number of orders during the coronavirus pandemic.” The web’s top sex doll retailer offers more than 2,600 premium, hand-crafted and made-to-order sex doll designs. New recruits can work from home, packing and posting dolls. Find out more at sexdollgenie.com/pages/careers. 26

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been er ev n s a h s es en r a w a d Lees’ bran

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

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