SLR May 2017

WHICH ONE IS RIGHT FOR YOU? Fascias in focus

NO SOFT OPTION Soft drinks market in state of flux

TIME TO CAN DRS?

Is it time to dump the ‘unnecessary and impractical’ Deposit Return Scheme?

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Scottish Grocers’ Federation

Networking Event 2017 This event is aimed at making it a little more stress free in the day to day working within the industry.

Whether that be by listening to what our breakout sessions have to say, or by offering a series of one-to-one meetings between suppliers and retailers, this should go some way to open some doors and remove some barriers!

Included in the Day

• Refreshments

• Lunch

• Attendance is free for all members

9.30 – 4pm • Thursday 8th June 2017 RBS Conference Centre Gogarburn, Edinburgh

Name: .........................................................................................................................................................................

Organisation: ..............................................................................................................................................................

Email: ..........................................................................................................................................................................

Mobile number: ..........................................................................................................................................................

Please forward your booking form to:

Scottish Grocers’ Federation

SLR 2 1 SGF May 2017.indd SLR (FP).indd

Irati Ugarte, SGF 222 Queensferry Road, Edinburgh EH4 2BN e-mail: i.ugarte@scotgrocersfed.co.uk 19/05/2017 5:09:55 10:44:02 16-May-17 PM

May 2017

Contents

Contents ISSUE 167

NEWS p4

SRC opposes returning rates power to Councils The Scottish Retail Consortium remains against giving Councils back power for setting business rates. p5 Booker-Tesco deal ‘all about growth’ Booker boss tells Scottish conference merger is all about growth. p6 SGF vaping guide a big hit Trading Standards give thumbs up to retailer guide. p8 One Stop sweetens meal deal Franchise adds ice creams to fast growing meal deal. p10 News Extra Rates hike adds yet more cost The latest hike in business rates adds yet more to the cost of business. p18 Product News A round-up of the latest product news that retailers need to be aware of. p20 Off-trade News Carlsberg brings Danish way to UK, Foster’s launches new campaign and more.

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INSIDE BUSINESS p22 Opinion Jane Bickerstaffe Packaging industry boss explains why plastic and coffee cup recycling schemes must be taken in context. p24 Research Digest Some of the latest research relevant to Scotland’s local retailers. p26 SLR Rewards All the winners from this year’s SLR Rewards. p28 Woodlands Local Feedback from the latest sets of trials and initiatives in Falkirk. p34 Hotlines Some NPD to keep an eye out for. p70 Under The Counter The latest batch of rants and raves from the auld yin.

FEATURES p36 Facsia focus The argument for joining a fascia or symbol group has never been stronger – but which to choose? p56 Sugar confectionery The sugar tax may be on its way but shoppers still enjjoy a treat. p62 Soft drinks Navigating your way through a fast-evolving and hugely important category.

ON THE COVER 14

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DRS would leave retailers carrying the can The time to act is now if retailers want to help avoid an ‘unnecessary and impractical’ solution.

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19/05/2017 10:44:06

News RATES SRC against giving Councils back rates power

AB InBev in growth AB InBev’s Q1 results show the company in double-digit growth in Northern Europe with Jason Warner, President of AB InBev

SRC opposes return of rates power to Councils proposal

in North Europe (UK & Ireland), hailing them as “very pleasing”. He said: “Sales volumes [are] growing by low- double digits, assisted by the launch of Bud light. Our key global brands, Corona, Stella Artois and Budweiser were in the top five biggest contributors to the beer and cider growth in the UK off-trade.”

Lidl loses union battle Trade union GMB has scored a victory against Lidl after the discounter’s bid to deny its workers union representation failed. The Court of Appeal has thrown out the company’s

The Scottish Retail Consortium (SRC) has reiterated its opposition to handing responsibility for setting business back to local authorities.

The call came at the Scottish Parliament’s Local Government Committee evidence session on Non-Domestic Rates recently when the Convention of Scottish Local Authorities called for control over business rates to be repatriated to local authorities.

David Lonsdale, SRC Director, who also participated in the session, said the idea was entirely opposed by businesses. He said: “Retailers are clear that we are not remotely

satisfied with the unwieldy and costly business rates system as it stands, which is why the SRC led calls for the establishment of the current Barclay Rates Review. That should hopefully result in moves towards three-yearly revaluations, simplifying the administration, and making the system far more competitive. There needs to be a move away from ad hoc levies and supplements and complex reliefs which are just sticking plasters on a costly and cumbersome rates system.

“However, we are deeply concerned at calls for the rates poundage to be devolved to local

authorities and believe this would be a retrograde step. Local councils are already able to reduce business rates in their areas, but so far this has been unused by all except two of the thirty-two Scottish local authorities.

As a result the wider policy of local discretionary rates relief is at risk of being seen to be a flop. We are firmly opposed to repatriating control over the poundage rate to councils as it could lead to them treating businesses like cash cows, putting up business rates even further and hitting competitiveness.

“The current rates system is not fit for the modern digital economy.”

attempts to overturn a ruling ordering them to allow staff trade union representation.

Last year the Central Arbitration

WHOLESALE SWA seeks mentors

SWA searching for mentors

Committee, the independent tribunal with statutory powers over trade union recognition, dismissed Lidl’s attempts to block warehouse operatives from having a union represent their interests. The High Court then upheld the CAC’s decision in August and the Court of Appeal again confirmed the right of GMB to ballot members for recognition within the company after the supermarket’s objections were thrown out.

Spar UK grows team Spar UK has announced the appointment of Cat Worsfold in to the role of Format Proposition Manager. This new role reflects SPAR’s continued commitment to develop its retail formats in line with the changing needs of customers and progression in the market. Worsfold will focus on developing the format and proposition offer to ensure alignment with the customer mission across the entire SPAR estate. She will report to SPAR UK Retail Director, Ian Taylor. Prior to joining SPAR, Worsfold worked in Tesco’s Express business on store space

The Scottish Wholesale Association (SWA) is inviting experienced individuals working within the wholesale and retail sectors to consider volunteering as a mentor for the trade body’s Mentoring Programme. Several ambitious individuals currently working for SWA member wholesalers in the key areas of buying, sales and management are waiting to be matched to a suitable mentor as part of the programme which was established five years ago to improve skills and nurture emerging talent within the Scottish wholesale industry.

Individuals are matched with a mentor who could be from within or outside the wholesale industry.

Mentees benefit from regular oneto-one sessions with their mentor plus unlimited telephone contact and, crucially for employers, the programme is structured around the individual needs of the employee in line with the business vision.

Sandie Holmes, Managing Consultant at 121 HR Solutions, the Association’s training partner, is facilitating the

programme. She explained: “We’ve been delighted to have benefited from the input of several inspiring men and women who have worked with our mentees since we launched the programme back in 2012.

However, we are now inviting a fresh batch of enthusiastic people who would like to give something back to the wholesale industry.

“We are looking for mentors who are committed to helping others and people who appreciate that asking for help or advice isn’t a weakness – it is, in fact, a strength,” she said. .

One mentor is Kevin Ward, Business Unit Director- Impulse Channel – at Carlsberg UK (pictured).

He said: “Mentoring has allowed me the opportunity to pay back the time, energy and investment afforded to me from those who saw in me something more than I could see myself. While I will never fully repay the debt, I have been rewarded with supporting others in realising more of their ambition, releasing their potential and building the leaders for the future. Email training@ scottishwholesale.co.uk for more information.

MINIMUM WAGE

John Lewis minimum wage gaff highlights compliance challenges The John Lewis Partnership has been forced to restate its accounts and take a £36m hit after a payroll error that breached minimum wage rules. The retailer, which also owns Waitrose supermarkets, said the error affects all staff paid by the hour over the past six years.

The total cost could be as much as £36m, according to the company’s annual report.

Lee Knight, Employer Solutions Director at tax consultants RSM said: “The fact that the John Lewis Partnership has chosen to restate its profits because of a breach underlines the difficulties faced by all employers trying to stay on the right side of the law.

Complying is fraught with pitfalls and is about much more than just understanding the headline rates.

“John Lewis appears to have chosen to be open and transparent about the apparent breach.”

development.

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19/05/2017 10:44:07

News CONSOLIDATION Booker boss highlights positives of Tesco merger

Tesco deal ‘all about growth’, Wilson tells Scottish audience Booker CEO Charles Wilson has reiterated that the potential merger of Booker and Tesco is “all about growth”. Speaking at the Scottish Grocer’s Federation annual Business Summit, Wilson addressed mounting speculation by stating clearly that the key driver for both both Booker and Tesco was the potential for growth in a highly competitive market.

Wilson explained that the synergies and strategic fit that both parties brought to the table would “drive growth, ensure efficiencies across the supply chain, deliver a better service to retailers and ultimately improve the offer to consumers.”

During a lively panel discussion, it was put to the Booker CEO that the merger would strengthen the hand of a large supermarket which had been trying to drive independent retailers out of the market but Wilson suggested that an analysis of recent numbers shows quite clearly that the real threat now and in the future would come from companies like Amazon and their internet-based grocery offer.

The event also saw a presentation from Sheffield Booker retailer Mandeep Singh who demonstrated to the

Mars supports animal centres Mars Petcare has announced the latest recipients of its Feeding Brighter Futures Grants Programme – which was designed to assist re-homing centres by providing much needed grants. Fourteen UK animal rescue homes across the country will share £120,000 including Edinburgh Dog & Cat Home.

Costcutter ‘Tasty in no Time’ campaign Booker CEO Charles Wilson and SGF Chief Executive Pete Cheema.

Costcutter Supermarkets Group has launched a new integrated campaign for its Independent own brand called ‘Tasty in no

audience how being proactive on social media can boost both sales and footfall, explaining that ”technology is the best weapon we have for fighting back”.

Another key speaker was Keith Brown MSP, Scottish Government Secretary for the Economy. Brown reiterated his pledge to work with SGF and support the Federation’s Scottish Parliament Cross Party Group on Independent Convenience Stores.

Time’ to showcase the range and has been designed to increase in-store awareness for the award winning own brand, promoting quick and easy ‘food for tonight’ recipe ideas to shoppers. The campaign is supported by a full suite of in-store POS, including header boards, shelf

ECIGS BAT adds to its vaping assets

BAT acquires VIP vaping business British American Tobacco (BAT) has acquired the VIP Premium Vaping & E-liquids business from previous owners Must Have after the e-cigarette company got into financial difficulties. The business was bought through BAT’s Nicoventures Retail operation and sees the global tobacco giant assume control of a

company with 166 retail outlets as well as a significant online business.

A BAT spokesperson said: “We can confirm we have acquired the VIP business. The UK is a key vaping market and retail is a key component in driving its growth.

The VIP business includes 166 retail outlets which can contribute to our

commercial strategy and further our reach with smokers and vapers.”

The company says the deal “makes perfect sense” as it views retail as a crucial success factor for next generation products, helping smokers and vapers learn more about the category and potentially safer alternatives to smoking.

stripping, fins, roundels and for the first time, tear off recipe cards. Additionally in-store radio advertising is being used to capture shopper’s attention, with national press advertising, consumer leaflets and social media to directly engage shoppers.

Winter comes to PayPoint PayPoint has appointed Gary Winter to the newly created role of Parcel Services Director.

RESEARCH

Retail sales up 0.5% in Q1, but challenges remain The Scottish Government has published its Retail Sales Index for the first quarter of 2017 showing that the value of retail sales – unadjusted for falling shop prices – has nudged up 0.5%.

Commenting on the figures, SRC Director David Lonsdale said: “The improvement in the headline figure in the first quarter of this year is encouraging at first glance, but it looks less rosy once falling shop prices are taken into account. Indeed shop prices have fallen each month for the past four years which demonstrates that retailers are having to work ever harder to maintain let alone grow sales values.

“Scottish retailers face a challenging trading period ahead. Rising commodity prices and changes in

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the exchange rate are pushing up import prices, the cumulative burden of government policies is mushrooming, whilst shoppers themselves are expected to keep a tighter rein on spending. Consumer spending, the mainstay of our economy, faces headwinds in the months ahead as household budgets contend with rising overall inflation and increases in council taxes.

Higher statutory employee pension contributions are also set to take their toll on discretionary spending in each of the next two years.

“In the context of the UK General Election, Scottish retailers want to see policies from the political parties which keep down the cost of living, bolster disposable incomes, and help consumer spending take wing.”

Winter has worked in the eCommerce and delivery industry for 17 years and has held senior positions with a number of UK parcel carriers including UK Mail, Royal Mail/ Parcelforce and Hermes.

The appointment follows the new Collect+ agreement between PayPoint and Yodel, in December 2016, which opens the industry-leading service to other parcel carriers for the first time. PayPoint is aiming to grow its network of Collect+ retailers from around 6,200 to over 7,000 by the end of 2017.

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News E-CIGS New SGF guide proves popular

Mars Petcare names a new Managing Director Mars Petcare UK has appointed Deri Watkins to the role of Managing Director. Watkins has

Trading Standards: SGF vaping guide a big hit

held senior positions with Mars UK for 20 years. He also has a global perspective and customer focus – most recently as Mars Petcare’s Chief Customer Officer where he worked in close partnership with both sales teams and customers.

Genius move by Scottish University Edinburgh-based gluten-free food specialist, Genius Foods,

The Scottish Grocers’ Federation guide to the Scottish regulations on Nicotine Vapour Products (NVPs) has proved to be a success in enabling stores to comply with the new laws, according to Trading Standards. Three and a half thousand hard copies of the guide have now been distributed to retailers though local authority Trading Standards officers.

Commenting on the impact Peter Adamson, Chair of Trading Standards Scotland said: “The guide is an excellent resource for Scottish local authority trading is being well received by retailers.’

The new regulations, which came into effect on 1st

April, mean that NVPs are now fully age-restricted products, sale by staff under-18 must be authorised and introduced a new tobacco and NVP register. The guide was produced in partnership with the Scottish Government.

SGF Head of Policy John Lee said: “We are delighted that the guide has proved to be such a success. It ensures that our members are trading within the law and promoting responsible community retailing. This type of partnership with the Scottish government – and with trading standards – is what we want to build on for the future.”

has entered into a partnership with the Scottish Centre for Food Development and Innovation at Queen Margaret University where its team is now operating from a specialist new food science laboratory. Food scientists at QMU have provided expert training to the Genius Foods team on ways to measure the texture, colour and flow properties of its products using specialist equipment.

Imperial helps nail smuggling prison officer Imperial Tobacco has assisted Devon and Cornwall Police in securing the conviction of a prison officer who was attempting to smuggle counterfeit tobacco into HMP

COMMUNITY Coke hooks up with Spar for green space project

SYMBOLS

ParkLives returns for fourth year

Nisa gets membership boost from expo

Coca-Cola European Partners (CCEP) is partnering with Spar to help bring its ParkLives community programme to life across Scotland, England and Wales this summer for the fourth consecutive year.

The community initiative runs all summer and brings consumers together to enjoy their local parks and green spaces. Taking place daily throughout the spring and summer months, the fun, free programme of activities is delivered in partnership with local Councils.

Open to people of all ages and abilities in local

parks, the activities are run by an enthusiastic team of specially trained local session leaders and volunteers.

Some 213 Spar stores, including stores in Dundee and Glasgow, are taking part and Spar is supporting the event in participating stores with instore POS, social media, Spar Radio and exclusive Spar shopper prizes.

There will also be a special retailer incentive of £1,000 for the best ParkLives instore activation.

Debbie Robinson, SPAR UK Managing Director said the scheme is all about adding value for the customer.

Dartmoor.

Daryl Keenan, from Paignton, was arrested and charged after a routine staff search upon entering HMP Dartmoor – a ‘smoke free’ prison – uncovered several counterfeit 50g pouches of Golden Virginia tobacco hidden in his bag. A member of Imperial’s Anti-Illicit Trade (AIT) team assisted in verifying that the stock was illicit.

One Stop sales up 7% One Stop’s franchise model is reaping rewards for its independent retailers with franchisees experiencing an average growth in their like-forlike sales performance of more than 7% during the 2016/17

APPOINTMENTS Certas names new dealer sales head

Certas strengthens retail division Certas Energy has appointed Craig Nugent as Head of Dealer Sales, a new position created to strengthen the company’s drive for retail growth.

“The appointment of Craig is further proof of our long term

commitment to the dealer market,” commented Ramsay MacDonald, Retail Director, Certas Energy. “Craig has vast experience in strategic planning and implementation and he will play a leading role as we look to equip our Retail Division to meet ambitious long term growth targets.

“We now have a 500-strong Gulf network and in the coming years our aim is to increase the quality and size of the network and establish Gulf as a top three brand.”

Nugent said: “I am delighted to be part of Certas Energy at such an exciting time in its evolution and I relish the challenge.”

Membership numbers at Nisa Retail have swelled after a successful recruitment event hosted during the company’s two-day exhibition at Stoneleigh last month. In total 23 prospective members met with the recruitment team and signed up for Nisa, making it the most fruitful annual exhibitions on record.

Chris Moore, New Business Controller at Nisa, welcomed the news and said: “Our annual exhibition at Stoneleigh was arranged in such a way that all our prospects could very easily see what Nisa has to offer them; from the fantastic Store of the Future 2 that was on display in the middle of the arena, to the Heritage wine that was launched and available for tasting, to the Epositive team who were demonstrating our products.”

financial year.

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19/05/2017 10:44:09

HI TOITY Y A S UAL O Q T T I A HE AY GR ITY

S UAL Q T A GRE

LITY QUA YOUR AND EXPECT YOU S TYMER SITOOUR UL QU CA Y

T AND PEC YOU ERS EX TOM CUS

I TO H Y SA TIMES D GOO

CONNECTING NECTING WITH SMOKERS SMOK KERS S SINCE 1901 For the avoidance av voidance of doubt, retailers are free at all times to determine the selling price of their product.

QUALITY

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BLEND

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News MEAL DEALS One Stop adds ice creams to meal deal

Deflation fall good news for retailers The BRC-Nielsen Shop Price Index for April 2017 showed that overall shop price deflation was 0.5% in April, a deceleration from the 0.8% fall in March. This is the shallowest deflation rate since November 2013.

Food inflation dropped back slightly to 0.9% from the 1.0% rise in March while fresh food reported inflation of 1.0% in April from the 0.9% rise in the previous month.

Nestle slammed for Blue Riband job cuts Nestle has been slammed for proposing 300 job losses as it moves production of its Blue Riband chocolate biscuit to

One Stop adds ice cream to £3 meal deal One Stop is improving its £3 meal deal with the addition of 14 ice cream lines from major brands like Wall’s, Oreo and Ben & Jerry’s. The company says it has been improving its Meal Deals for several years to give better value to customers across a variety of meal occasions.

The latest enhancement is aimed at driving sales when the weather is hot, both over the summer months and during pockets of good weather throughout the year. The deal now provides an opportunity to encourage customers purchasing

an ice cream to shop the wider meal deal.

Customers can now add selected handheld ice creams (up to the RRP £2.29) as a ‘snack’ in their meal deal, with the best value combination offering a saving of £4.69.

Galen Levi, Head of Proposition for Franchise, said: “This great initiative ensures that customers now have

a huge choice of meal options and our franchisees enjoy a great footfall driver courtesy of what has become a real destination for customers.

Where else can you pick from such an extensive range of sandwiches, snacks, confectionery, hot and cold drinks, Slush Puppie and ice cream from just £3?”

Poland. Blue Riband has been made in Britain since 1936 and is primarily consumed by the UK market. The cuts include seven

CHARITY Biscuit business boost cancer charity funds

Paterson Arran raises £75k for Macmillan

jobs in Scotland.

Coca-Cola to axe 1,200 jobs Coca-Cola has said it will cut about 1,200 jobs due to falling demand. Its global carbonated drink sales fell 1% in the quarter to 31 March, The cuts will begin in the second half of 2017 and continue into 2018. The firm said it was increasing its cost-cutting target by $800m in annualised

Britain’s leading shortbread brand, Paterson Arran, has raised over £75,000 in a fundraising drive for Macmillan Cancer Support and is aiming to smash their £100,000 target by July.

For every promotional pack of Paterson’s shortbread sold across the country, the brand has pledged to donate a percentage of the proceeds to the charity. To celebrate raising £75,000 so far, Paterson’s will be delivering boxes

of its shortbread to staff at a number of Macmillan centres up and down the country.

Allan Miller, Sales and Marketing Director at Paterson Arran, said: “We’d like to say a huge thank you to our customers across the UK for their contributions so far, it has certainly helped us on our way to reaching our £100,000 goal, which could power 2,000 hours of support at Macmillan centres across the country.”

savings, and now expects to save $3.8bn by 2019.

One Stop slush fund

INDUSTRY AWARDS

SGF collects trade award

COMMUNITY

Retailers boost community plan A campaign run by Camelot to encourage retailers and customers visiting National Lottery outlets to vote in The People’s Projects 2017 has helped to contribute to a 28% rise in votes for this year’s awards. The community-based initiative gives customers a say in where some of the National Lottery funding went as part of the initiative.

One Stop Franchise and Slush Puppie are to build on their 2016 retail success with the launch of a fresh trade plan coupled with the launch of Slush Puppie’s new ‘Flavour Treats’ range.

The deal will see a new flavour introduced to One Stop Franchise stores every month.

Call to appeal rates Scottish retailers are being urged to appeal new rating assessments by the 30 September 2017 deadline.

Retailers should act now to avoid being landed with unfair rateable values for the next five years.

The Scottish Grocers’ Federation has been named the the Best Food and Drink Trade Association in the UK by Trade Monthly Magazine. SGF’s Pete Cheema and Pauline Mullen are pictured with their award, the first in the organisation’s nearly 100 year history.

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19/05/2017 10:44:14

STOCK UP

NOW

n Now i

£1.5P0s PM

Tap into a £760 per year premix opportunity1 with best-selling spirit brands Sales of PMP products are 50% greater than plain packs2 Stocking in the fridge can increase rate of sale by up to 120%3 Premix is the only RTD category in growth4 Please drink responsibly.

1: Based on stocking Diageo 6 SKUs, HIM! 2015, Nielsen Scantrack to Sept 16. 2: HIM! CTP 2016. 3: Nielsen Scantrack to Sep 16. 4: +14.4% value growth MAT.

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19/05/2017 10:44:14

News Extra

Business rates | Revaluation Hits Retailers Hard

NewsExtra GUM SALES ROCKET IN WOODLANDS AFTER REMERCHANDISING P31 BUSINESS RATES Calls for reform in face of rocketing bills

Convenience Matters with the SGF It’s now almost six months since we set up the first-ever Scottish Parliament cross party group on independent convenience stores. The initial support from MSPs was very encouraging, with 11 of them becoming members of the group. The support from the industry has also been impressive; meetings have been extremely well attended by retailers and by our wider stakeholders. The Scottish government has also endorsed the group, with the Cabinet Secretary for the Economy being committed to engaging with and supporting us. So far so good. However we need to boost attendance and engagement from MSPs. This isn’t as easy as it probably sounds. As the Scottish Parliament takes on new powers in previously reserved areas, MSPs are becoming increasingly busy. In fact to remain effective the Scottish Parliament probably requires an increased number of members. The public appetite for this, however, is just not there.

To raise the level of engagement with the CPG we need to mobilise our members. They need to get their MSPs to join the group and to play an active part in it.

‘Going local’ is the best and most effective way to do this.

This will become increasingly the case for a whole range of issues: retailers are actually our greatest political strength and we need to harness and maximise this potential.

So please get in touch with your MSP, tell them they need to support the CPG, tell them to get to the next meeting on May 23 and that you’ll see them there!

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Rates hike adds to constantly rising cost of doing business Huge hikes in rates is just the latest blow to local retailers across Scotland as the cost of doing business continues to rise, making harder than ever for retailers to invest in their store and their staff.

Soaring business rates continue to concern local retailers with many experiencing unprecedented hikes following the recent revaluation by the Scottish Assessors’ Association.

SGF President Dennis Williams has seen his business rates jump almost 50% this year. “There can be no basis for that level of rates increase,” he said. “It’s the latest rabbit being pulled out of the hat to pile even more pressure on the independent retail sector.

“If it was just this one thing we were having to contend with it wouldn’t be so bad,” Dennis pointed out. “But here we are – a 50% rates hike hot on the heels of all the other costs we’re having to incur, from pensions auto-enrolment, the national living wage, tobacco legislation. It just goes on and on and on – I can’t remember times being so tough.”

Dennis said that the introduction of the national living wage had put £8,000 onto his wages bill.

“That’s a lot for any small business to swallow and then this rates increase comes along – it’s just wrong and not the way to encourage small businesses.”

Business rates relief through the Small Business Bonus Scheme (SBBS) is available if the combined rateable value of all your business premises in Scotland is £35,000 or less. Dennis said: “This is obviously good for these businesses and Derek Mackay, the Finance Secretary, says that more

than half of all commercial properties will pay no business rates in 2017-18.

“But the other side of the coin is that businesses like ours are seeing massive hikes and that’s unfair.

Obviously we are appealing.”

Nisa retailer and former SGF President Abdul Majid has also been hit with an increased rates bill.

Like Dennis, he intends to appeal. “You’ve got to be proactive and make your voice heard,” said Abdul.

“We have enough cost pressures as it is in our sector and eventually we have to pass that on.”

Abdul added that the current system “does nothing” to encourage businesses to move into empty shop units. “We need something that’s going to kick-start local economies and bring life back to areas where there are a lot of empty shops.”

Meanwhile, the Scottish Retail Consortium (SRC) has stated that the rates system is no longer fit for purpose as it “regularly fails to reflect economic or trading conditions, with rates bills way too high, especially for the 21,000 commercial premises in Scotland which continue to pay a higher tax rate than competitors or counterparts in England”.

Director David Lonsdale said: “Retailers are clear that we are not remotely satisfied with the unwieldy and costly business rates system as it stands, which is why the SRC led calls for the establishment of the current Barclay Rates Review. That should hopefully result in moves towards three-yearly revaluations, simplifying the administration, and making the system far more competitive.”

The Scottish Government review of the rates system led by former RBS Scotland chairman Ken Barclay is due to report in the summer.

The SRC also opposes any proposals to allow councils to set business rates. With COSLA calling for such a move, Lonsdale said: “We are deeply concerned at calls for the rates poundage to be devolved to local authorities and believe this would be a retrograde step.”

At the SGF, John Lee, Head of Policy and Public Affairs, advised retailers planning to appeal against their new rateable values to do so as soon as possible. “You have until September 30 to appeal,” he said. “If anyone thinks they have been reassessed wrongly please come to us – we are happy to offer help and advice.” www.slrmag.co.uk

19/05/2017 10:44:16

Advertorial

SUZOHAPP TO INTRODUCE NEW SMART DEPOSIT SOLUTION AT RBTE 2017 The SDS30 will be launched at RBTE in London 8th-9th May, Stand 300

The SUZOHAPP team invites attendees to visit the stand on the 8th – 9th May to find out more about its brand new Smart Deposit Solution. The SDS30 is a fantastic new addition to the CashComplete™ range. It allows users to upgrade their cash handling process to improve cash visibility, accuracy and shrinkage protection. The compact design means it can easily be installed directly at the point of sale, and security is improved by minimising the number of bank notes held in the till, reducing the risks of theft and attack.

Addressing other key issues within the retail industry, the SDS30 also reduces the number of touch points in the processing of notes, streamlining and automating the overall cash handling process. Accountability is present at cashier-level, and visibility of notes is improved, as all deposits and withdrawals are continually monitored

through unique user logins. Along with the CashComplete™ software, cash levels can also be monitored remotely.

The SDS30 also reduces the number of cash counting inaccuracies from the very start of the cash handling process at the point of sale. The intelligent 4-way read validator validates notes instantly, significantly reducing the risk of accepting suspect bank notes and incurring further process costs and discrepancies within the downstream banking reconciliation.

According to the UK Retail Fraud Survey 2016, UK retailers lost £2.34 billion in the preceding year as a result of shrinkage. The SDS30 offers a smart solution that helps overcome many of the common problems seen within the retail industry. Please visit stand 300 to learn more about how the SDS30 can help improve the cash handling process within your business.

SDS-30

Innovative Smart Deposit Solution ✓ Cost effective tool to reduce shrinkage ✓ Small enough to be installed directly at the point of sale ✓ Validate every note at the point of sale ✓ Secure cash and protect employees

www.cashcomplete.com

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SCAN COIN Limited Dutch House, 110 Broadway Salford Quays, Salford, M50 2UW Tel: 0161 873 0500 | Fax: 0161 873 0501 sales@scancoin.co.uk

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Comment

THE TIDE IS MOST DEFINITELY RISING EDITORIAL

For all that it’s a logistical nightmare to carry out, the on-the-road judging for the SLR Rewards provides a unique opportunity every year to have a look at dozens and dozens of stores across Scotland in a very short period. For taking the pulse of the industry you can’t beat jumping into a (hired) car and travelling the length and breadth of the country for weeks on end doing nothing else but visiting some of the best stores our nation has to offer.

It’s too easy to make the glib statement that standards are rising every year but I have to admit that some of the stores I visited for this year’s judging are the best I’ve ever seen – and not just in Scotland. I’m lucky enough in this job to get to see lots and lots of convenience stores across the UK and Ireland and, occasionally, even further afield. And I can say without the slightest hesitation that Scotland now boasts some of the finest stores I’ve ever seen anywhere.

Not only that, I’d say the general standard of stores is probably higher than you see anywhere else in the UK. A lot of that credit must go to the symbol groups who have worked tirelessly to drive store standards and compliance up – and with a great deal of success.

But some of it is down to great entrepreneurs who simply wanted to deliver the best for their customers. Ardeer Service Station, the winner of this year’s Scottish Local Retailer of the Year, is simply spectacular. There’s no other word for it. Yes, it cost a lot of money to build – around £1.5m – but it’s the quality of thought that went into the concept that really blows you away, not just the fact that a lot of money went into it. Innovative concept plus world class execution equals top notch store. Spar Euro Garages Lomondgate is another similar example, and there are many, many more.

There are few high streets in Scotland’s villages towns and cities these days that don’t boast at least one very, very good independent convenience store.

Scotland’s populace has never been better served for stores that offer great prices, long opening hours and friendly smiles behind the till.

It’s a far cry from a decade ago when the competition was a little softer and independent retailers could often get away with lower standards, sloppier service, patchier availability and poor in-store execution. Today’s customers are so used to high standards that they don’t want to accept less – nor should they.

So it’s massively encouraging to see independent retailers stand up and be counted and once again show the pretenders like Tesco and Sainsbury’s how you run a real local retailing outlet. With passion and pride and community spirit and heart and commitment.

Despite all of the many challenges that our industry faces – DRS, minimum wage, rates hikes, squeezed margins – we are still right there at the cutting edge doing what we’ve always done best. It’s been a tough journey but let’s hope that all’s well that ends well and we can fully reclaim what was ours in time.

Publishing Director & Editor Antony Begley 0141 222 5380 | abegley@55north.com Editoral Assistant Iain Hoey 0141 222 5385 | ihoey@55north.com Web Editor Findlay Stein 0141 222 5389 | fstein@55north.com

ADVERTISING Advertising Manager Susan Dignon 0141 222 5384 | sdignon@55north.com

DESIGN Design & Digital Manager Richard Chaudhry 0141 222 5300 | rchaudhry@55north.com Designer Lisa Deakin 0141 222 5388 | ldeakin@55north.com

EVENTS Events & Operations Co-ordinator Chloe Buchanan 0141 222 5383 | cbuchanan@55north.com

CIRCULATION & SUBSCRIPTIONS Scottish Local Retailer is distributed free to qualifying readers. For a registration card, call 0141 222 5381. Other readers may 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.

ANTONY BEGLEY, PUBLISHING DIRECTOR

© 55 North Ltd. 2017 ISSN 1740-2409.

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Cover Story

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Deposit Return Scheme

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Deposit Return Scheme

Cover Story

DRS TO LEAVE RETAILERS CARRYING THE CAN? Despite support from CCEP and the NFRN, the controversial deposit return scheme is still widely seen as unnecessary and impractical and would once more leave retailers picking up the pieces on an ill-conceived, if well-meaning, scheme.

BY KAREN PEATTIE

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Cover Story

BACKGROUND The idea for a DRS in Scotland was first mooted in 2013 by then environment secretary Richard Lochhead, who saw a deposit return scheme in action during a trip to Sweden.

He believed that a scheme which offers an incentive for recycling drink containers could help tackle Scotland’s litter problem.

Leading trade organisations and companies operating across the drinks and food packaging supply chain – including the SGF and Scottish Wholesale Association – then got together to form the Packaging Recycling Group Scotland (PRGS) to oppose DRS and work with the Scottish Government to help boost recycling, reduce waste and support the Scottish antilittering strategy.

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Deposit Return Scheme

P

ressure is mounting on the Scottish Government to scrap plans to introduce a deposit return scheme (DRS) for plastic bottles and cans, with both the Scottish Grocers’ Federation and Scottish Wholesale Association firmly against its implementation on the grounds that current proposals are impractical and unnecessary given the existing kerbside recycling facilities available.

However, recent support for a DRS by newsagents’ trade group the Federation of Independent Retailers (NFRN) at its Scottish conference, which followed a widely reported U-turn on the subject by Coca-Cola UK which said it is now supporting a DRS scheme in Scotland, has angered many retailers and prompted ex-SGF president Abdul Majid to vent his frustrations on social media.

Writing on his Facebook page the Bellshill Nisa retailer said he was “angry and disappointed with fellow retailers at NFRN who flew in the face of ALL reports and ALL other retail trade bodies, ALL supermarkets and most manufacturers to support something that will not only adversely impact their members but will be the death knell for many small shops”.

The controversial NFRN development saw retailers attending the group’s conference in Dundee in March add their voices to calls for a DRS. This decision was based on a small sample of retailers attending the event. Gail Winfield, President of the NFRN in Scotland, said in a press release: “NFRN members are responsible retailers who want to play a role in protecting the environment and who recognise the damage that plastic bottles and cans can do to their surroundings.

“It’s for that reason we have agreed today to support the Scottish Government’s aim of increasing the rate of recycling but we want to ensure that any schemes to achieve this are developed in co-operation with the independent retail sector.”

Winfield admitted that while the NFRN had “concerns about the practicalities of operating such a scheme and around the potential impact of kerbside recycling” her trade group considered the issue “important enough” to justify creating a working party comprising “likeminded groups to ensure that any deposit refund scheme that is implemented in the future allows independent retailers to fully play their part”.

Coca-Cola’s U-turn on the subject hit the headlines in February when the current affairs

magazine Holyrood reported that the soft drinks giant “has thrown its support behind calls for the Scottish Government to introduce a deposit return scheme, in an effort to reduce littering and boost recycling”.

Holyrood’s report, on February 22, stated: “Coca-Cola has strongly opposed the idea in the past, telling a 2015 Zero Waste Scotland consultation that ‘DRS doesn’t encourage packaging reduction or recyclability’ and that it was ‘legally questionable’ whether a DRS could be introduced in Scotland without changes to UK legislation first, with the drinks manufacturer instead arguing for local authority kerbside collections.”

An online statement by the soft drinks supplier, also on February 22, outlined its “significant progress to improve the sustainability of our packaging in recent years”. It said: “Our sustainable packaging review is ongoing, but it’s already clear from our conversations with experts that the time is right to trial new interventions such as a well-designed deposit return scheme for drinks containers, starting in Scotland where conversations are under way.”

Meanwhile, both the SGF and Scottish Wholesale Association reiterated that the Scottish Government has made no decision on DRS, pointing to a letter from Roseanna Cunningham, the current Cabinet Secretary for Environment, Climate Change and Land Reform, to the Environment, Climate Change & Land Reform Committee, which said that a DRS would “be a substantial undertaking with significant costs, essentially reforming the way that we manage materials in our communities”.

She said: “It would involve complex work to change the packaging on multiple products, install return systems, create an administrator to manage the system, introduce enforcement, redesign remaining kerbside services and so forth.

“In deciding whether this is our preferred approach in Scotland, it is important that we consider in full the potential costs and benefits, in partnership with all of those who would be involved. While it is extremely helpful to now have a rich and lively debate on deposit return, we need to ensure that we take a decision on the basis of facts and figures.”

John Lee, Head of Policy and Public Affairs at the SGF, said: “The Scottish Government, through its environment agency Zero Waste Scotland, is shortly to undertake further feasibility work and evidence gathering from key stakeholders. It is also undertaking work www.slrmag.co.uk

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Deposit Return Scheme

to look at extended producer responsibility to encourage manufacturers to become more fully involved in recycling.”

Local authority recycling rates, he continued, through kerbside collection, increased to over 44% of all waste collected in 2015. The report from Eunomia Consultants, which formed the basis of the original Zero Waste Scotland feasibility exercise published in 2015, said a DRS is likely only to raise household recycling rates by between 1.5% and 3.3%.

It has also been estimated that the reverse vending machines which form the basis of many deposit systems can cost between £20,000–£30,000.

Lee, who last month attended a meeting of the sub-committee set up by the Environment Committee to investigate the DRS issue in more depth, said: “The meeting on April 26 was extremely constructive and positive – there is a lot of understanding of the problems and costs facing retailers if a scheme is implemented. It is not a done deal.

“Our view remains that with DRS, retailers are neither the producers nor the polluters but once again are being asked to tidy up the mess.

When retailers face constantly increasing cost pressures, such as implementing workplace pensions and other legislative compliance, they simply cannot afford to become mini recycling hubs with all the costs and drain on resources this would involve.”

Also last month the Scottish Wholesale Association reiterated its firm opposition to a DRS scheme, claiming that current proposals, as well as being impractical, would be costly for consumers, businesses and local councils.

Executive Director Kate Salmon insisted that “enhancements to the current kerbside collections system that has served Scotland well for many years are the way forward”.

Salmon also warned of the potential for a new illicit cross-border trade in plastic bottles as well as the additional logistics and transport costs of a brand new system to return bottles to central depots rather than via current local authority provision. “A DRS isn’t an easy quick fix with no environmental impact and it’s disingenuous of anyone to suggest it is.”

Meanwhile, the Association of Convenience Stores has joined with the SGF to write to the Scottish Government highlighting concerns after conducting UK-wide research into the impact of a scheme. A survey of 2,000 consumers found that 70% preferred to use kerbside household recycling facilities over a deposit return system for bottles and cans. www.slrmag.co.uk

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Cover Story

INSPIRE SHOPPERS AND MAXIMISE SALES WITH NEW ADVICE FROM Diageo has extended its My Store Matters programme with the launch of a new category advice initiative designed to help convenience retailers grow their alcohol sales by up to £9k (13%) per year.1 Using the latest market insights, the advice presents retailers with a series of easy to follow and simple to activate principles, packaged together under three key pillars: ‘Inspire, Display, Sell’.

Over the next three issues, Diageo will explore these three principals, with insight from retailers who have already successfully implemented them in store.

INSPIRE

‘Inspire’ advice focusses on convenience shopper key missions and boosting visibility and range in order to engage shoppers and drive sales. Tips include: aware of the top three missions • Be‘Something for Tonight’, ‘Top Up’ and ‘Gifting’ Make alcohol and accessible in-store. Off-fixture displays can help • grow sales by visible over 18% A core range of ‘must stock’ lines can increase alcohol sales by up to 64%.

• Excite shoppers with additional SKUs, such as new, premium and local or 2

3

3

seasonal products Since executing this advice, Julian Taylor Green of Taylor Green’s Spar, Lindford says; “Alcohol is extremely important to my business as both a footfall and profit driver. I’ve already implemented elements of Diageo’s ‘Inspire’ advice by introducing more seasonal products into store, and I look forward to developing this further as summer approaches to further maximise the appeal of my range to customers”.

For more information on Diageo’s NEW My Store Matters advice, visit WWW.MYSTOREMATTERS.net or speak to your local rep today.

The SMIRNOFF, CAPTAIN MORGAN, BELL’S, GORDON’S, BAILEYS and HAIG CLUB words and associated logos are trade marks. © DIAGEO 2015 1 Nielsen Scantrack – data to 26.03.16 2Nielsen Scantrack – data to 26.03.16 3Nielsen Scantrack – data to 18.06.16

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Products

News

Kitkat recall The Food Standards Agency confirmed that Nestlé has

ProductNews

recalled all KitKat Original Milk Chocolate Bites Pouch Bags because it has been mispacked with KitKat Peanut Butter Bites, meaning peanuts and nuts are not declared on the label. The packaging has the specific batch code 70720457V2 which can be found on the back of the wrapper.

Coke Life UK axe Coca-Cola is to axe its Life brand in the UK from June as sales continue to fall. Coca-Cola Life, which accounts for just under 1% of the company’s trademark sales, has performed poorly since launching in 2014. The company said now was the right time to phase out the Life brand in order to make a clearer distinction between its sugar and sugar-free options.

During the year to 18 March 2017, Coca-Cola Life’s volume sales fell 73.1% (Nielsen data).

WIN

CHECK OUT THE LATEST LINES TO HIT THE SHELVES P34 SOFT DRINKS Coca-Cola on-pack competition

Win a holiday with Coke

CONFECTIONERY

MARS SWEET NIGHTS IN Mars Chocolate UK has launched Sweet Nights In, a new on-pack promotion which offers consumers 50% off the latest movie rentals and £3 credit they can use across a wide range of TV shows, books, music and apps on Google Play Store.

Consumers can enjoy a movie after buying three promotional flashed products, visiting www.sweetnightsin. co.uk and registering the codes printed on the packs to receive voucher codes.

The promotion runs across six of the top 10 take-home SKUs in the category, including: Maltesers standard pouch, Galaxy, and M&M’s sharing pouch.

Coca-Cola European Partners has brought back its popular Share A Coke campaign, but with a twist. The logo on bottles of Coca-Cola, Coca-Cola Zero Sugar and Diet Coke will be replaced by the names of the world’s top holiday destinations.

Those purchasing a destination-themed Coke have a chance to win a vacation to a dream holiday hotspot, such as Hawaii, Bali, Ibiza or Miami. Consumers can take part in the promotion by entering a unique code found on pack at coke.co.uk/summer.

Winners will win a dream holiday for four to the destination of their choice and there will be a winner drawn every day during the eight week period from May 10 until July 9.

The on-pack promotion and packaging design will be supported by a marketing campaign that includes a new commercial, digital out-of-home advertising, social media and PR activity.

The new commercial, called Pool Boy, launches on TV, in cinema and online from May 19.

£50 WORTH OF STOCK & A PORTABLE WATERPROOF SPEAKER WITH ROCKSTAR

AG Barr is celebrating the launch of one of its biggest ever on-pack promotions for Rockstar, the UK’s No.1 big can flavoured energy brand*1, by offering retailers the chance to win £50 worth of stock PLUS a Rockstar-branded Boombuoy pocket-sized waterproof wireless speaker worth £50. Three runners-up will receive £50 worth of Rockstar.

This summer Rockstar will partner with Baywatch, the action-comedy film, starring Dwayne Johnson (The Rock) and Bollywood sensation Priyanka Chopra, set to be released on May 29.

The promotion, running from April to June across Rockstar Xdurance and Rockstar Guava – the UK’s top two best-selling flavours*2 – gives shoppers the chance to win the Ultimate VIP Miami Experience. The promotion also runs on a new, great-tasting limited edition flavour – named Beach Blend – and features on both plain and 99p price-marked 500ml cans (outers of 12).

HOW TO ENTER: Just fill in the form below and send to: ROCKSTAR BAYWATCH COMPETITION, SLR, WATERLOO CHAMBERS, 19 WATERLOO ST, GLASGOW, G2 6AY T&C’S: This competition is only open to readers of SLR. Only one entry per store is permitted.

Entries received after the closing date will not be considered. The prize is not transferable and the judges’ decision is final.

CLOSING DEADLINE 9TH JUNE 2017 Name:

Source *1 IRI Marketplace, Value Sales, MAT to 29.01.17, GB Convenience *2 IRI Marketplace, UROS, 500ml Big Can Energy Drinks, MAT to 29.01.17, GB Convenience

Company/store name:

Address:

Daytime phone number:

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Date:

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Products

News

Weetabix acquisition Weetabix Food Company has welcomed the news that it is to be acquired by Post Holdings, Inc., a consumer packaged goods holding company. The

CONFECTIONERY Maynards Bassetts unveils holiday competition

Maynards’ bonkers giveaway

deal values Weetabix at £1.4 bn.

Maynards Bassetts has launched a new on pack promotion for summer which will see the brand give away days out to more than 100 consumers.

The top three winners will win a pair of flights to New Zealand, complete with £2,000 spending money, with 100 other consumers will winning tickets to ‘a bonkers day out’ in the UK or Ireland, such as the World Pea Championships in Witcham and rabbit show jumping in Bradford, along with travel and £50 spending money.

One thousand others will win a voucher for a complimentary candy bag of their choice from the range.

Convenience retailers also have the chance to win one of six £100 Love2Shop vouchers with a great ‘Bonkers’ display in their store.

The promotion aims to drive candy bag sales during

and drinks, rising from 15.3% to

The acquisition comes on the back of the growth in Weetabix’s UK market share for cereals 16.4%, in the past year.

Biscuits of Britain Biscuit maker pladis has released its second annual biscuit review, Biscuits in Britain 2016: A Year of Change. The report outlines the state of the £2.4bn biscuit category and showed that biscuits were

the summer months, and is supported by a £6m total brand marketing campaign in 2017, which will include TV and in-store activity throughout the summer.

consumed on average three times a week and on nearly six billion occasions in 2016, making the category the second largest snackfood, outperforming crisps, cakes and popcorn.

Dunk to win Oreo are offering consumers the chance to win a ‘Wonderfilled’ holiday in a new onpack promotion. The UK arm of its Global ‘Dunk for your chance to Win’ on pack campaign gives consumers a chance to win a wide range of prizes, including a

SOFT DRINKS

Capri-Sun talks back Pouch juice drink Capri-Sun has unveiled a multimillion-pound TV campaign ahead of the summer season which introduces a new animated pouch character to drive awareness of Capri Sun’s No Added Sugar range. The 20 second TV advert sees a cheeky animated pouch playing games with a family during a summer gathering.

CRISPS Promotion hits cash & carrys

bespoke Wonderfilled holiday to

McCoy’s golden display

the value of £10,000. Also up for

Celebrating the launch of its new on-pack promotion, giving shoppers the chance to win £10,000 by finding one of five golden crisps, McCoy’s has designed a stand-out depot display to drive excitement for convenience retailers at the point of purchase and create some theatre in depot. The ‘McCoy’s Gold Mine’ themed display reinforces the brand’s ‘full on flavour’ messaging across cash and carries.

Oreo Mug and Dunking Spoon

grabs are 50 pairs of amusement park tickets, 20 Samsung Galaxy S2 Tablets.

To help create the “ultimate dunking experience” at home, 10 Sets can be won every day of the campaign.

Lucozade squares up Lucozade Sport teamed up for a short film with boxer Anthony Joshua ahead of his world title fight with Wladimir Klitschko on 29 April. Joshua won the match via technical knockout in the 11th round. Steven Hind, Lucozade Sport marketing director, said: “The short film shows a man who’s never stood still, and while Watford to Wembley may not be far geographically, emotionally it is immense.”

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News

Off-Trade

Glen’s Platinum Glen’s Platinum Vodka has invested over £1.5m in an

Off-TradeNews

extensive new promotional campaign that includes premium outdoor advertising across the UK. The campaign features state-of-the-art digital screens in major UK cities such as Glasgow, Edinburgh, Manchester and Newcastle. It will also include national print and broadcast media.

This is the first nationwide campaign since the Platinum Vodka was introduced three years ago.

DIAGEO PRE-MIX £1.50 CANS FLYING P30 BEER Danish brand celebrates its roots

Carlsberg brings Danish way to UK

Distillery numbers There were 45 new distilleries registered last year in the UK, bringing the nation’s total to an estimated 273. “This is yet another positive sign of the UK spirits industry going from

BEER

Sol SKU Sol lager has released two new SKUs in the run up to summer. Available now are a new 330ml can in a 4-pack with an RRP of £4.50, and a 650ml single bottle with an RRP of £2.

Toby Lancaster, category and shopper Marketing Director at Heineken, commented: “We recommend keeping these in the chiller, and to drive sales, you could crosspromote with BBQ food or sharing bags of tortilla crisps that play on Sol’s Mexican heritage.”

strength to strength,” said Miles Beale, Chief Executive

SPIRITS Jaeger returns to the small screen

of the Wine and Spirit Trade

Jaeger’s £2m TV campaign

Association.

Cîroc’s Summer Colada Ultra-premium vodka brand, Cîroc, is introducing its first limited-edition expression, Summer Colada. Inspired by the popular cocktail, piña colada, the newcomer has been crafted using natural pineapple and coconut flavours. Summer Colada is available from this month with an RRP of £39.94 and joins a seven-strong Cîroc flavoured range.

Tequila trend The Wine & Spirit Trade Association’s latest Market Report shows consumers are buying into tequila with sales rising 37% in two years.

Carlsberg has launched a £15m integrated marketing campaign called ‘The Danish Way’, aimed at revitalising its Carlsberg and Carlsberg Export brands in the UK. The campaign sees the brand emphasise its Danish roots, with the nation’s philosophy on life forming the centrepiece of activity across packaging, TV, cinema, out-of-home and digital channels.

Central to the campaign is a new TV ad starring screen villain Mads Mikkelsen, who plays the role of a modern-day Danish

philosopher pondering the secrets to his nation’s happiness as he cycles through the streets of Denmark.

Liam Newton, Vice-President of Marketing, Carlsberg UK, said “Some consumers see mainstream lagers as interchangeable, and we know from extensive research that it’s incredibly important for them to be aware of the heritage of the individual brands they consume.

We want our campaign to celebrate our Danish origins and bring new meaning to the iconic ‘Probably’ line.”

Mast-Jaegermeister UK has invested over £2m in re-running its ‘Craft the Moment’ TV campaign following research that brand awareness among target consumers was at its peak when the advert was live in 2016.

The ad features a group of friends working together to construct a 14-metre-high stag statue by hand.

Nicole Goodwin, UK Marketing Director for Ma s t - Ja e g e r m e i s t e r said: “TV advertising is still in the top three effective media awareness touch points for Jägermeister.”

Miles Beale, Chief Executive of the Wine & Spirit Trade Association, said: “The UK has seen a boom in tequila sales over the last two years, up £46m to £173m in 2016, an increase of 37%.

“The trend is moving away from shots and strongly towards high quality, cocktail combinations and increasingly

RTDs Smirnoff changes on-pack promotion

Smirnoff PMP

Diageo has relaunched its ready-to-drink range with six new price marked packs.

The new range is made up of: Gordon’s Gin & Tonic, Smirnoff & Cola, Smirnoff & Cranberry, Gordon’s & Slimline Tonic, Captain Morgan & Cola and Pimm’s No.1

& Lemonade. The new 250ml PMPs are priced at £1.50 each, meaning they can be stocked in stores north of the border. The original promotion was a ‘2 for £3.00’ multi-buy, which fell foul of Scottish licensing laws.

sophisticated sipping products.”

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Off-Trade

News

BEER Australian lager gets summer marketing spend

Foster’s campaign quenches thirst Foster’s is celebrating its Australian heritage with a new TV commercial. Set in Melbourne 1888, the ‘Thirstiest Men on Earth’ sees a dramatised version of the brand’s founders rescuing English cricketers with a pint of their lager. The spot launches a multimillion-pound campaign across the summer.

The brand’s recently refreshed roundel design can be seen in the 30 second spot. The beer’s partnership with Channel 4 will continue throughout the summer as part of a multi-million pound spend across digital and social platforms, television and cinema.

Ifeoma Dozie, Beer Brand Director at Heineken, said: “Foster’s has genuine heritage and we are excited to bring the pioneering founders, William

and Ralph Foster, to life in this new campaign. They revolutionised the way beer was served – and icecold amber nectar is still enjoyed by millions of drinkers every year.”

CIDER High ABV cider offers lower strength option

Merrydown crisps up Merrydown heritage cider has launched a new lighter, lower strength, lower-calorie Crisp Apple Cider variant. The addition, Merrydown Crisp Apple Cider, has an ABV of 5.5%.

SHS Drinks is also re-launching its flagship 7.5% ABV offer renaming it as Merrydown Original Vintage Apple Cider and taking the opportunity to introduce a new bottle design to align it with the appearance of the new Merrydown Crisp Apple packaging.

Both Merrydown 750ml sharing bottles have an RRP of £2.49 and are available in 6- and 12-bottle shrink-wrapped trays.

PREMIX

Jack Daniel’s new cocktail Jack Daniel’s Tennessee Whiskey has announced the introduction of its first cocktail, Jack Daniel’s Lynchburg Lemonade, to its bestselling premix range.

Packaged in a convenient 330ml format, the brand recommends retailers stock the can alongside the existing premix range.

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BEER

CARLING’S PREMIER OFFER Carling has relaunched its premium lager, Carling Premier. The news follows last year’s announcement of its partnership with the Premier League, after which the decision was taken to relaunch Carling Premier with increased distribution. The beer has an ABV of 4.7% and joins Original Lager, Citrus Twist, Apple Cider and Black Fruits Cider in the range.

Q: I’m planning to launch a phone app that will allow customers to buy their groceries (including alcohol) online and then have their shopping delivered. What are the licensing implications?

Niall answers:It is crucial that a delivery of alcohol is despatched from a place that has a premises licence, e.g. your shop. There are a number of technical and practical factors that must be considered ranging from making clear on your app that you will only sell and deliver alcohol to persons over 18 to what documentation your delivery driver must carry. It is important that you get this right as failure to do so puts both you and your premises licence at risk of enforcement action.

Q: I own an unlicensed convenience store near to a local hospital so I want to open 24 hours a day. Do I need any additional permissions?

Michael responds: If you intend to open and trade between 11pm and 5am then the law says you need a late hours catering licence.

The application is made to your local council and when lodging your application you will have to display a site notice. Depending on the hours you are applying for and/or whether there are any objections then the application will be determined by a council officer or alternatively put a meeting of the council’s licensing committee.

Q: I want to sell multi packs of beer at a reduced price for the Champions League Final. Is this permitted by my premises licence?

Niall replies: It depends. Firstly, the price of an alcoholic product can only change at the start of licensed hours and the price must stay the same for at least 72 hours.

Secondly, you should bear in mind that the multi pack cannot be cheaper than the price of the same number of individual bottles when sold separately. This only applies to products of the exact same type and size. I appreciate that the restrictions on alcohol promotions can be confusing so you may wish to call the licensing hotline.

MAY 2017 | SLR

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19/05/2017 10:44:31

Inside Business

Opinion | Jane Bickerstaffe, Director, INCPEN

VITAL TO PUT IMPACT OF DRINKS BOTTLES AND COFFEE CUPS IN CONTEXT Jane Bickerstaffe, Director of the Industry Council for Research on Packaging & the Environment, explains why it’s critical to examine the impact of disposable drinks packaging in context.

W

ith all of the current debate around the proposed Deposit Return Scheme, INCPEN, the Industry Council for research on Packaging & the Environment, has recently submitted written evidence to parliament’s Environmental Audit Committee for its inquiry into the effects on the environment of disposable drinks packaging, focusing in particular on the impact of plastic bottles and coffee cups.

In the submission, we explain the benefits of these types of packaging – the protection they provide to products and their ability to meet consumer demand for drinking on-thego – and not just the negative impact they can have if handled irresponsibly.

We also point out that while packaging is the subject of much media attention, it is not the sole cause of marine or land litter, and that all drinks containers are less than 15% of litter by any measure.

We believe there is a tendency for media commentators to muddle two distinct challenges: the need to increase the quantity and quality of materials recycled; and how to prevent the littering of anything.

In terms of recycling, we say it is vital to consider the environmental impact of the recycling process itself, which in some instances can be more than the value that can be recovered.

22

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The problem of littering, meanwhile, can only be effectively tackled by targeting all types of litter and not just selected items.

Our submission casts doubt on the effectiveness of Deposit Return Systems, particularly in the UK which has hugely increased its recycling rates in the last 20 years and has widespread kerbside collections.

The current slight fall in recycling rates was due to a decline in green waste, not paper and packaging.

We welcome this inquiry and hope it will cast some clear light on the reasons why plastic bottles and coffee cups exist and both the positive and negative impact they have.

What is essential is that these bottles and cups are considered as part of the wider question of preventing littering. We do not believe that focusing on individual items will have the desired effect.

Key points of the INCPEN submission are: Q Coffee cups and drinks bottles keep drinks safe and in good condition and enable people to have a drink wherever they are.

Q Overall all types of containers have pros and cons. Provided they are used appropriately and disposed of responsibly, the choice between them appears to make little environmental difference.

Q Used packaging is 5 million tonnes, of which cups are 0.5% and soft drinks bottles

and cans 14%. Food waste dwarfs packaging at 7.3 million tonnes.

Q The most recent scientific litter survey suggests that charges do not influence litterers. It compared 2016 data with an identical survey in 2014. Supermarket carrier bags though still very few in number (under 0.5%) went up despite the charge on them and huge reduction in use.

Q In contrast, with no charge, the number of littered plastics drinks containers and coffee cups went down.

Q Whether an item is recyclable or not does not determine whether it becomes litter.

The owner of the item decides.

Q There is a big difference between a tax on drinks containers and a charge on plastic carrier bags. Unlike a bag charge which is avoidable if you take your own bag – everyone who wants a drink would have to pay a tax.

Q Most countries that operate deposit systems have done so for many years and do not have nationwide kerbside recycling. Sweden for example has only 30% kerbside collection coverage so many non-drinks containers do not get recycled.

Q Deposit systems do not increase overall recycling rates. When Germany introduced deposits in 2003 the recycling rate fell and did not get back to the same rate for 10 years. www.slrmag.co.uk

19/05/2017 10:44:31

HI! STREET

digital media

BRANDS PLACED HERE.

WILL END UP HERE.

Hi! Street Digital Media provide convenience retailers and FMCG brands with a unique opportunity to target shoppers at the vital moment of purchase decision-making. Our high bright digital media screens, placed in premium convenience stores throughout the UK are proven to increase sales of promoted products by an average of

15.3%, whilst also increasing both footfall and basket size. Brands promoted on our screens

see an immediate and tangible, as well as distribution and compliance solutions, supported by revolutionary shopper engagement analytics. To find out how you can target convenience retailers and shoppers, please visit:

SLR May 2017.indd 23

www.histreetdigital.com 19/05/2017 10:44:32

Inside Business

Research Digest

40% OF TOBACCO SOLD ‘STILL BRANDED’

N

ew independent research from The Retail Data Partnership (TRDP) has found that as much as 40% of all tobacco currently being sold by convenience stores is still branded stock, even though the EUTPD2 deadline for plain pack compliance of May 20 is almost upon us.

This month will see the expiration of the sell-through period for

New research as SLR went to press suggests that as much as 40% of tobacco sold in the UK is still branded with only days to go until the May 20 deadline.

non-compliant, branded Factory Made Cigarettes and Roll Your Own Tobacco yet retailers still seem to have a lot of work to do in order to hit the deadline, suggests data from almost 2,500 stores using TRDP’s Epos system.

Q Of the 900,000+ Factory Made Cigarette packs, 45.04% were sold in non-compliant, branded packs.

Q Of the 150,000+ Roll Your Own Tobacco pouches, 33.17% were sold in non-compliant, branded packs.

Q Only 0.57% of retailers exclusively sold compliant, non-branded packs.

The law has placed primary responsibility on retailers to implement changes in tobacco sales to the general public. The data from the research suggests that independent retailers may be in a tough position on May 20. The situation may have been exacerbated by the fact that retailers have been unable to sell through stock using promotions and price reductions. The heavy use of Price Marks on branded packs makes reducing prices even more difficult. Retailers also have limited options with regards to supplier buy-back or recall schemes. If this situation remains unchanged, retailers will be left with stock they are unable to sell legally.

‘OCCASIONAL INDULGENCE’ SEES FROZEN FOOD SOAR IN UK

T

he frozen food retail market has once again seen value and volume growth in the 52 weeks to March 27, 2017 including growth across almost every sub-category. According to the latest statistics from Kantar Worldpanel, sales of frozen food in retail grew by 1.3% in value year on year (yoy) with the sector now valued at £5.77bn.

The ice cream and frozen confectionery categories were the stars of the show for the fifth consecutive quarter with yoy value growth of 4% and 11% respectively, accompanied by respective yoy volume growth of 2.9% and 7.1%.

These sub-categories – now valued at £1.22bn – represent more than 21% of the total frozen food retail market. In part, frozen confectionery is being driven by increasing demand for frozen fruit which saw a sales growth of over 35%.

A drive for healthy eating has also led to other sub-categories seeing growth with vegetables seeing value growth of 3.3% and volume 24

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SLR May 2017.indd 24

growth of 3.3% yoy.

This is driven by the growth in popularity of frozen sweet potato which saw sales increase by 119% in 2016.

John Hyman, Chief Executive of British Frozen Food Federation, said: “As consumers are increasingly concerned about healthy choices, many treat categories are struggling to see real growth, frozen seems to be bucking this trend and that’s partly down to how the category has positioned its sweet products.

“By owning the occasional indulgence occasion through significant, premium NPD across the board, frozen confectionery and ice cream categories have managed to maintain their appeal to consumers still looking for life’s little luxuries.

“Similarly, this trend has enabled frozen to expand into new meal occasions and widen its appeal to new groups of consumers with a wide range of prepared fruit and vegetable options to offering healthier choices.” www.slrmag.co.uk

19/05/2017 10:44:32

Research Digest

RETAIL SALES GROWTH PICKS UP PACE, SAYS CBI

R

etail sales growth accelerated in the year to April, with volumes rising faster than expected, according to the latest monthly CBI Distributive Trades Survey.

The survey of 112 firms, of which 57 were retailers, showed that the volume of sales grew at the fastest pace since September 2015 in the year to April. Overall, sales for the time of year were considered to be slightly above seasonal norms.

Looking ahead, however, volumes growth is expected to slow in the year to May and sales are tipped to be broadly average for the time of year, with orders expected to be largely unchanged.

Within the retail sector, the grocery sector performed particularly strongly while internet sales continued to grow at a solid pace in the year to April, in line with the long-run average, and are expected to grow at a broadly similar pace in May. Meanwhile, wholesaling saw robust growth in sales volumes in the year to April.

Ben Jones, CBI Principal Economist, said: “Retail sales held up better than expected, especially considering that the Survey did not cover the Easter period. The warm weather in early April might

www.slrmag.co.uk

SLR May 2017.indd 25

go some way to explaining the uptick, with grocery sales driving overall growth.

“However, retailers are still cautious over the outlook, expecting slower growth over the year to May, as

higher inflation eats into household spending. With price competition remaining fierce and rising costs squeezing margins, retailers face mounting pressures in the months ahead.”

KEY FINDINGS Retailers: Q 59% of retailers said that sales volumes were up in April on a year ago, whilst 21% said they were down, giving a balance of +38%. This outperformed expectations (+16%), and was the highest balance since September 2015 (+49%).

Q 37% of respondents expect sales volumes to increase next month, with 21% expecting a decrease, giving a balance of +16%.

Q 32% of retailers placed more orders with suppliers than they did a year ago, whilst 21% placed fewer orders, giving a balance of +18%. This was the highest since October 2015 (+19%).

Q 33% of retailers reported that their volume of sales for the time of year were good, whilst 20% said they were poor, giving a balance of +13%.

Q Internet sales volumes continued to expand at a healthy pace (+48%), with growth broadly in line with the long-run average. Internet sales volumes are expected to grow at broadly similar pace in the year to May (+47%).

Q Sales volumes grew strongly in grocers (+40%).

Meanwhile sales volumes decreased in specialist food & drink (-43%).

Wholesalers: Q 69% of wholesalers reported sales volumes to be up on last year, and 6% said they were down, giving a balance of +63%, and beating expectations (+44%). Volumes are expected to grow at a slower pace next month (+8%) Q The volume of orders placed upon suppliers accelerated (+53%, from +31% in March), but is expected to be broadly flat in the year to May (-1%).

Inside Business

RETAILERS ‘REDUCING THE NUMBER OF HOURS BEING WORKED’ The latest British Retail Consortium Retail Employment Quarterly, for Q1 2017, has found that the equivalent number of full-time jobs in the retail sector fell by 3.9% compared with the same quarter a year ago. Both food and non-food retailers contributed to the decline in full time equivalent employment (FTE), although it was food that saw the deepest falls.

In the first quarter of 2017, the number of outlets rose by 0.6% compared with the same quarter a year ago. Food retailers drove the overall increase in the number of stores. All three months of the quarter reported a decline in FTE employment, with January’s decline only marginally shallower than that seen in February and March.

BRC Chief Executive, Helen Dickinson OBE, said: “Today’s fall in full-time equivalent employment from our sample of retailers shows a continuation of a year-long downward trend of retailers reducing the number of hours being worked.

“We expect retailers to continue reviewing how they work with their people as they look to address the changing face of retail and keep prices low for consumers. Building inflationary pressures and public policy costs, alongside intense competition, are taking their toll and retail, as a people intensive industry, is being hit hard. That said, many retailers are actively investing in their people to improve the quality and productivity of jobs per employee.

“Looking ahead to the Brexit negotiations for the next government, certainty for the EU colleagues working in the industry and a business tax environment fit for purpose in the 21st century are what’s needed for the retail industry to drive productivity with better jobs, innovation and new skills for the digital age.”

77% OF CONSUMERS HAVE ‘FEARS AROUND NEW PAYMENT METHODS’ Over three-quarters (77%) of British consumers have concerns about using new payment methods. The survey of over 2,000 consumers highlighted how security fears are preventing many consumers from embracing new payment technologies.

The risk of fraud was cited as the main reason (59%) consumers being unwilling to use new methods, followed by data security incidents (49%) and the risk of theft (45%).

MAY 2017 | SLR

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19/05/2017 10:44:32

SLR

AR R EW D S

2017

THE WINNERS! The winners of the SLR Rewards were recently announced at a plush event at the Grand Central Hotel in Glasgow, with Mahmood Saleem’s spectacular Ardeer Service Station scooping the top award – and a trip to Chicago.

BEER & CIDER RETAILER OF THE YEAR Day Today Wallyford

FRESH & CHILLED RETAILER OF THE YEAR

BEST NEW STORE OF THE YEAR Ardeer Service Station

Nisa Local Pinkie Farm Convenience Store Highly Commended: Spar Tarves

BISCUITS RETAILER OF THE YEAR Best-One @ Brownlies

CONFECTIONERY RETAILER OF THE YEAR Spar Euro Garages Lomondgate

BEST REFIT OF THE YEAR MAKING THE MOST OF MILK

Day Today 10 O’Clock Shop Highly Commended: Spar Carmondean

Spar Renfrew

RESPONSIBLE RETAILER OF THE YEAR NEWSTRADE RETAILER OF THE YEAR

Day Today Lochside

Giacopazzi’s, Milnathort

CRISPS & SNACKS RETAILER OF THE YEAR

SOFT DRINKS RETAILER OF THE YEAR

Spar Renfrew

Londis Inveraray

ECIGS RETAILER OF THE YEAR

THINKSMART INNOVATION AWARD

SPIRITS RETAILER OF THE YEAR

Scotfresh Denny Branch

Best-One @ Brownlies

FOOD TO GO RETAILER OF THE YEAR

COMMUNITY INVOLVEMENT RETAILER OF THE YEAR

David’s Kitchen Glenrothes Highly Commended: Day Today 10 O’Clock Shop

Ardeer Service Station

TEAM OF THE YEAR Sinclair General Stores

SPECIAL RECOGNITION

Premier Smeaton Stores

SCOTTISH LOCAL RETAILER OF THE YEAR Mahmood Saleem, Ardeer Service Station

Kate Salmon Executive Director Scottish Wholesale Association

Full review in next issue!

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WOODLANDSlocal

Inside Business

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Woodlands Local | Monthly Review

MAKING THE MOST OF THE SUNSHINE

It’s been a sunny few weeks in Falkirk, driving footfall and sales, which has helped boost the store as we continue to rebuild the team and put more efficient processes in place.

BY ANTONY BEGLEY

www.slrmag.co.uk

19/05/2017 10:44:36

Monthly Review | Woodlands Local

I

t’s amazing the difference a bit of sunshine makes.

The last month or so has been unseasonably warm in our little corner of Falkirk and that has had a huge benefit in driving up footfall and sales, as well as putting a smile on the faces of our customers. Soft drinks and water sales have shot up, as they always do when the mercury rises, but we’ve also seen decent uplifts in our cold food-to-go offer, including salads, filled rolls and lunchtime and breakfast snacking items.

The good weather has helped put a gloss on a difficult but positive month elsewhere as we continue to rebuild the team under what is now a fairly settled management team. Our new store manager Arlene Nixon has made a great impact on the shopfloor, exactly what we were hoping she would do. It’s probably fair to say that the shopfloor is now in better shape than it has been for a long, long time.

Availability is far better right across the board, merchandising and presentation has been ratcheted up a notch or two and we’ve already reworked quite a few categories to once again delist slow movers and add in some fresh lines, as well as some lines requested by customers.

The fact that Arlene manages buying has made an impact too, as she has been far more responsive in reacting to customers’ requests for specific lines. We’ve had huge success with a range of pakora products that customers were looking for and we’ve also had some success with some new Rustlers lines that were requested.

It’s also been a good few weeks for promotions with a strong package of offers from both Filshill and Costcutter.

The BOGOF on £1 Walkers bags has been undoubtedly the most successful promotion we’ve ever run – at the last count we had sold over 40 cases in the space of three weeks.

Coincidentally, this same promotion is now available from Costcutter, having been available from Filshill the period before. We’re expecting more of the same over the next few weeks.

We’ve also seen a significant uplift in crisps and snacks sales over the last month since Walkers visited and helped us rework the category in-store, removing slower movers, creating a more prominent dedicated £1 bag fixture and giving more space to the lines that are selling best.

NEW TEAM Recruiting staff has proven to be more of a challenge than expected, and in some very unusual ways. A call to the Job Centre achieved very little while an ad on our Facebook page attracted around 20 decent signs of interest.

In the end, we received around a dozen CVs and started work on the interview process... and this is where it gets interesting.

Having been chased two and three times a day by a few candidates for an interview, we set up the meetings. On the first day, we set up four interviews – and only one person www.slrmag.co.uk

SLR May 2017.indd 29

Inside Business

turned up! This seemed frankly bizarre considering how hard the candidates had been chasing the interviews.

It was then explained to me by one of our senior team that anyone on Job Seekers allowance must demonstrate to the Job Centre that they are indeed seeking a job. The best proof of that fact is an interview with a prospective employer. So when they get the interview offer, then can then show this to the Job Centre and keep claiming their allowance – but don’t attend the interview because they never had any intention of actually trying to get the job!

You live and learn in this job, I can testify to that. As a result, we only have one confirmed new start from six interviews, but we do have many more CVs to plough through as we bring in at least another two or three members of the team.

Training is clearly an issue here as, even after the new starts clock on, it typically takes us about a month to get them fully up to speed on both the legally-required and on-the-job training around using the till, PayPoint, Lottery machine and so on. That’s before we get to shelf stacking, the cleaning-up process, food preparation and so on.

While we haven’t formally started the process yet, we are working with Glasgow-based Bolt Learning to convert all our various training processes and manuals into one comprehensive online training package that new and existing staff can use in their own time to get fully up to speed or to refresh their skills.

DIGITAL SCREEN More good news comes in the shape of the new digital screen that has been fitted by Hi Street Digital. It will help add a little colour and life to the store (as seen from the exterior), as well as hopefully drawing shoppers into Woodlands by highlighting specific products and promotions and driving sales that way.

Unfortunately, the installation process isn’t quite complete because the window vinyl which obscures the screen couldn’t be amended as hoped, so we’re having to produce an entirely new one which will be purposedesigned to leave a precise gap for the digital screen. Our good friends at News Scotland have already agreed to provide a new vinyl for us, and it should be ready in time for the next issue.

While we’re on the subject of improved presentation, the team from our gantry suppliers JTI have also been in-store to update our gantry and create a bespoke vaping shelf at eye level. The new gantry helps alert customers to the fact that we sell e-cigarettes and accessories. It also brighten up what had become a very dull part of the store.

Last but not least, our on-going trials with Wrigley and Diageo are continuing to deliver in style for us with very large uplifts in sales of virtually all of Wrigley’s gum and mint products and in Diageo’s premix £1.50 price marked spirit cans.

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19/05/2017 10:44:36

Inside Business

Woodlands Local | Diageo £1.50 PMP Premix Trial

Diageo pre-mix PMP cans earn permanent place The outstanding performance of the £1.50 PMP premix cans from Diageo has earned the range a permanent listing on the shelves at Woodlands Local.

WOODLANDSlocal

BY ANTONY BEGLEY

30

SLR | MAY 2017

SLR May 2017.indd 30

W

e run a lot of trials in Woodlands Local, but very few have delivered quite the success of Diageo’s range of £1.50 price marked premix cans. The range of six different SKUs has performed to varying degrees of success, as you can imagine, given the scope of the products. However, the astonishing thing is that sales of every single product are up on historic sales.

Some lines have been runaway winners – I’m thinking of the Gordon’s Gin & Slimline Tonic here, which has been nothing short of phenomenal – while some others simply performed well, but every SKU has grown sales. Not only that, the lines look good on shelf in their posh trays. The range also adds a little variety and colour to the alcohol chiller.

Clearly the recent spell of good weather has helped boost sales further so we don’t expect the range to continue to fly quite so high all year round, but the results over the three-month trial have been hugely encouraging.

The most recent sales figures, polished up no doubt by the sunshine, are as follows: Average weekly sales during trial v average weekly sales for eight weeks before trial: Q Gordon’s Gin & Slimline Tonic: +374% Q Gordon’s Gin & Tonic: +48.7% Q Smirnoff & Cola: +64.6% Q Smirnoff & Diet Cola: +133.7% Q Captain Morgan’s & Cola: +78.1% Q Smirnoff & Cranberry: +97.4% While it’s worth pointing out that these figures are from a reasonably low base, in terms of unit sales, the fact that every SKU has grown is enough for us to make the listings permanent, although we will probably slightly amend the number of facings available. Currently, all SKUs enjoy double facings; we will take the slower selling lines down to a single facing – but all six lines are being retained. As trials go, this has been a total success.

Updated gantry brings e-cigs to the fore Our tobacco gantry supplier JTI was in the store last month to update our gantry to a new mixed-use unit that makes more of e-cigarettes.

W

ith the new EUTPD2 regulations putting an end to 10 packs as well as quite a few other lines, our tobacco gantry has suddenly found itself larger than required – but our key supplier JTI has come to the rescue with an updated gantry that makes use of some of that surplus space to

more prominently highlight vaping products.

The updated unit now has a shelf dedicated entirely to the fast-growing e-cigarette category. It also helps highlight to our customers that we do indeed sell vaping products. An additional benefit is that we now have more space on the shelf unit behind the till. www.slrmag.co.uk

19/05/2017 10:44:40

Wrigley Trial | Woodlands Local

Inside Business

15.24% increase in gum sales by volume

14% increase in gum sales by value

INCREASES IN SUGAR SALES (BY VOLUME) Q Q Q Q Q

Skittles Crazy Sours: +100% Skittles Dark Side Pouch: +200% Skittles Fruit & Sour Pouch: +69.23% Starburst Original Roll Pack: +100% Starburst Very Berry Roll Pack: +60%

60.47% increase in sugar sales by volume

64%

increase in sugar sales by value

Total sugar increase (volume): 60.47% Total sugar increase (value): 64%

Gum rework delivering in style Wrigley’s recent overhaul of the gum and sugar category has been a more or less instant hit in the store with gum sales up by over 15% and sugar up 60% in a month.

BY ANTONY BEGLEY

S

taying on top of the gum and sugar category is an absolute must for all local retailers and Woodlands Local is no different. That’s why we are working with gum supremos Wrigley to fine tune our gum, mints and other sugar confectionery sales in the store.

The detail of the project was outlined in the last issue of SLR but we are now at the stage where we can start making some meaningful comparisons as we see the results of the activity starting to appear in our Epos system. The fantastic news is that, in terms of the big picture, gum sales are up 15.24% by volume and 14% by value – in a single month. Sugar is up by 60.47% by volume and 64% by value! That’s great news in any category but in categories as traditionally strong as these, it’s nothing short of remarkable. www.slrmag.co.uk

SLR May 2017.indd 31

INCREASES IN SALES (BY VOLUME) Q Doublemint +25.00% Q Extra Peppermint bottle +42.86% Q Extra Peppermint handy pack +200.00% Q Extra White +100.00% Q Extra White Bubblemint +51.06% Q Airwaves Black Mint +200.00% Q Airwaves Cherry Menthol +60.00% Q Airwaves Menthol & Eucalyptus +58.82% Q Extra Cool Breeze +20.51% Q Extra Ice Peppermint +33.33% Q Extra Strawberry +110.00% Q Extra Ice Peppermint bottle +100.00% Q Extra Peppermint +100.00% Q Methol & Eucalyptus bottle +500.00% Q Doublemint +25.00% Q Extra Peppermint bottle +42.86% Q Extra Peppermint handy pack +200.00% Q Extra White +100.00% Q Extra White Bubblemint +51.06% Q Airwaves Black Mint +200.00% Q Airwaves Cherry Menthol +60.00% Q Airwaves Menthol & Eucalyptus +58.82% Q Extra Cool Breeze +20.51% Q Extra Ice Peppermint +33.33% Q Extra Strawberry +110.00% Q Extra Ice Peppermint bottle +100.00% Q Extra Peppermint +100.00% Q Menthol & Eucalyptus bottle +500.00%

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Inside Business

Woodlands Local | Crisps & Snacks / Slush

Working crisps and snacks harder Woodlands Local was pleased to receive a thumbs-up from Walkers on its crisps and snacks category, but there was still some scope for improvement.

WOODLANDSlocal

BY ANTONY BEGLEY

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SLR | MAY 2017

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A

s it is in most local retailing stores, crisps and snacks is an important category at Woodlands Local. While we sell a lot of hot food and food to go, the store remains firmly viewed by our customers as a true convenience store. Grocery plays a minimal role. It’s all about crisps and snacks, confectionery, tobacco and soft drinks.

So we were naturally delighted when a heavyweight team from PepsiCo visited the store last month and gave us a very pleasing thumbs up, almost across the board. Alan McCaffer and Colin Frew popped along, at our request, to offer some tips and advice on what we were doing well and what we could be doing better.

“I’ll be honest and say that, all things considered, your crisps and snacks are in very good shape in Woodlands,” said McCaffer. “The range is great. You’re not missing any key lines and you’re not carrying too much lower end stuff that takes up space but doesn’t deliver rate of sale or profits.”

That was the good news. Naturally, however, McCaffer and Frew did have some suggestions to make and arranged a re-visit to implement the plans we agreed with them.

The suggestions were along the following lines: Q Separate out the £1 bags, which are driving the market Q Give the £1 bags a more prominent siting in-store, and more space to breathe Q Create a permanent £1 bag core range Q Add one or two lines to the £1 bag range Q Add in one or two lines in the standard pack format Q Remove a shelf on the main fixture to make it easier for customers to see everything that’s on the fixture more easily Q Dedicate more facings to the standout key lines to drive impulse sales and make restocking easier Q Add a new smaller siting facing the hot food counter to drive cross-category sales Q Add a parasite unit to the front of the breakfast / lunch / soft drinks chiller to boost impulse sales The team duly returned and implemented the ideas and the results look very tidy indeed. It’s still far too early to judge what impact the changes are having on sales, but we will report back in the next issue of SLR.

Slush sales set the till ringing A run of good weather combined with lots of thirsty children meant our new Snowshock machine earned its keep.

T

he spell of wonderful weather in Falkirk couldn’t have come at a better time as far as our new Snowshock slush machine is concerned. It has been a huge with local kids – and a quite a few adults too.

We have added some posters and signage advertising the machine, and we’ve carried some content on our

Facebook page for Woodlands. The results have been fantastic, particularly as the average margin is north of 75%.

In the last month alone we have sold: Q 56 small slushes (75p) Q 78 medium slushes (£1.10) Q 37 large slushes (£1.80) That’s a total of 171 units in a month

at hefty margins, which is doing our bottom line no harm at all. Clearly, we shouldn’t expect sales like this every month, with the sun unlikely to be out to play as often as it has been lately. The results, however, speak for themselves.

The machine is also maintenancefree, easy to use and, barring cleaning, more or less takes care of itself. www.slrmag.co.uk

19/05/2017 10:44:49

Training & Development | Woodlands Local

Inside Business

INVESTING IN OUR PEOPLE

– THE SMART WAY

Woodlands Local is set to launch a new online training programme for the team with partners Bolt Learning to help our staff stay on top of all their training requirements.

BY ANTONY BEGLEY

I

t’s a phrase that gets over-used, but people are indeed a business’s greatest asset, and nowhere is that more true than in a a people industry like like convenience retailing. Unfortunately, however, the cost of people is going up continuously with constant rises in minimum wage, pensions and more. All of these costs are unavoidable so the logical conclusion for retailers to draw is that if they are going to spend a huge amount of money every month paying staff, it makes complete sense to make those staff as effective and efficient as possible.

Woodlands Local is no different. Staff costs are by far our biggest overhead, which is why we have hooked up with Glasgow-based training specialists Bolt Learning to invest inn our staff, help them develop their skills and help them keep on top of all training requirements. That doesn’t just mean the legally require training like alcohol; it also means helping them develop their skillsets across the board that will help them make better, more efficient contributions to our business. It’s also rewarding for the team to know that we as owners are interested in their development and are helping them improve their skills. www.slrmag.co.uk

SLR May 2017.indd 33

The Bolt Learning model is purely online and is module-based so staff can complete the modules at their own pace in the comfort of their own homes without the pressure of managers looking over their shoulder or pressure to complete things to set timescales.

The system enables the organisation, management and distribution of learning modules, but is also capable of being tailored precisely to the needs of individual stores, to ensure that the training is 100% bespoke for the requirements of each store.

Naturally, there are aspects of working in convenience stores which are mandatory and modules have been created on compliance issues like alcohol, health and safety and so on.

But there might be other skills which c-store managers want their staff to become competent in. This might be skills like ‘upselling’, for instance. Hardly a legal requirement, but a great skill to have nonetheless.

All of these modules have been created so that a suite of training options is available for the entire team in a store.

As well as helping strengthen the team and their skillsets, the platform also takes away

huge amounts of administration workload, something that should appeal to all stores as the red tape mountain continues to pile up.

Store managers can sit down and consider what type of training each job role and each staff member should undertake. This might mean an induction module for every new start, training on age-related sales, food safety training for those preparing food and so on. Once these ‘rules’ have been set, the automation takes over and the platform simply follows the rules which have been set by the retailer. It will even send out reminders as deadline dates approach and refresh dates can be set to ensure that, for instance, all staff do an age-related module at least once a year.

The e-learning modules don’t simply state whether a team member has ‘passed’ or ‘failed’ the training, it will use complex analysis to analyse and identify exactly where candidates struggled in any particular questions and help them target their weaknesses.

The learning modules are designed to be highly engaging (so staff remember the content) and end with tests to prove retention of knowledge. This way, retailers can be confident that their team members are truly ‘trained’ (as opposed to ‘I gave them the handbook to read – I hope they’ve taken it all on board’).

But it’s not just e-learning modules which can be distributed via the system.

Literally anything which management wants employees to read can be distributed to everyone (either ALL staff, or certain groups or sub groups of colleagues) – each person is tagged and then groups are made of people with matching tags.

Management of the store can have full visibility 24/7 of who has done what, when, and a dashboard reports everything back in real time. It’s an exciting prospect that will solve a lot of problems at Woodlands Local, particularly as we are recruiting and retraining all of our staff at the moment. Look out for an update in the next issue.

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Hotlines

Product News & Media Watch

Attack A Snak Mexican Mayo Kerry Foods A new chipotle-flavoured variant of popular on-the-go kids snacking brand Attack a Snak has arrived from Kerry Foods. The Ham ‘N’ Cheese with Mexican Mayo variant offers 13g of protein in every pack and carries an RRP of £1.50.

Two new from McVitie’s McVitie’s has announced it will be extending its Digestives Caramel range with two new flavours: Banoffee Caramel and Coffee Caramel. The extended range aims to grow the brand in the ‘Evening Treat’ category as shoppers continue to opt for a more indulgent evening snack.

Rolling out across grocery and convenience from May, the range carry a £1.50 RRP. Also arriving this month from the biscuit specialist are McVitie’s Digestives Nibbles Handy Packs, following the successful launch of McVitie’s Digestives Nibbles which have achieved over £15m RSV since their launch last year. The smaller pack aims to capitalise on the on-the-

go trend, as consumers look for their favourite snacks in grab and go formats.

Available in Caramel and Milk Chocolate flavours, the new handy packs are available in 37g at a RRP of 59p. The range is supported by a £3m ATL campaign alongside PR and digital activation.

McVitie’s Marketing Director, Kerry Owens, commented: “These delicious new handy packs are the perfect treat when you’re grazing in the day or looking for a sweet treat on the move. We are committed to responding to consumer needs and are confident our customers will love this product.”

Bounty Protein Bars Mars Chocolate UK Mars has extended its protein bar range with the introduction of its Bounty Protein Bar, capitalising on the growing trend for higher protein snacks. The bar, which contains 19g of protein, joins the Mars and Snickers protein offerings and carries an RRP of £2.19.

Cadbury Roundies Mondelez International The chocolate king has unveiled its first Cadbury biscuit with the launch of Cadbury Roundies. The biscuits are available in a multipack of five (RRP £1.99) including milk chocolate, dark chocolate and caramel wafer variants, with the milk chocolate variant also available in a single format PMP 50p and unmarked RRP 65p packs.

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Galaxy Swirlers Mars Chocolate UK Galaxy marked National Tea Day (21 April) with the unveiling of Galaxy Swirlers, an easily breakable Galaxy chocolate finger which is aimed at the hot drinks and sharing pack markets. Swirlers (RRP £2.09) come in Caramel Crunch and Shortbread Crunch flavours and are available in cases of 19 bars.

Ginsters new flavours Ginsters of Cornwall The on-the-go favourite has launched two new flavoured rolls: Large BBQ Pulled Pork Roll and Large Smokehouse Steak & Cheese Roll. The rolls have an RRP of £1.80 with an introductory price and pricemarked pack.

The launch is also supported with tailored point of sale.

Hellmans Ketchup Unilever Hellmann’s hopes to bolster the ketchup category with the launch of two new additions: Hellmann’s Tomato Ketchup Sweetened with Honey and Hellmann’s Tomato Ketchup made with Red & Green Tomatoes. The RRP £1.89 bottles are designed to appeal to consumers who are looking for healthy, sustainably sourced products.

www.slrmag.co.uk

19/05/2017 10:44:53

Product News & Media Watch Jacob Crisp Crackers Pladis

Robinsons Refreshed Britvic Soft Drinks

Jacob’s has announced the extension of its Jacob’s Cracker Crisps range with the addition of two new seasonal flavours, Mature Cheddar Ploughman’s, and Roast Chicken, Thyme and Lemon, as part of a bigger Cracker Crisps campaign in 2017. They are available in 150g sharing bags at a RRP of £1.89 and are supported by a £4m TV and online marketing campaign.

Smint Clean Breath Perfetti Van Melle

Available in three flavour combinations – Raspberry & Apple, Orange & Lime and Apple & Kiwi – Britvic’s new Robinsons Refresh’d range appeals to consumers looking for lower sugar fruit drink options. The single 500ml come in cases of 12 and 24, including PMP formats with an RRP of £1.29.

Vibe Popcorn Tangerine Confectionery

Sugar free mint brand, Smint, has developed a new three layered mint that it claims will give consumers clean breath for up to two hours.

The peppermint flavoured mint is available now in a 50-piece metal tin which carries an RRP of £1.50.

The popcorn innovation trend continues with the launch of Vibe Feel Good popcorn, from Butterkist maker Tangerine Confectionery. The new product is available in three 160g sharing bag flavour variants: Coconut & Cacao, Strawberry, and Sweet & Salted Ancient Grains, all RRP £1.99.

MEDIAwatch

Hotlines



For real food fans Ginsters of Cornwall has launched a six-sheet poster campaign across the UK from May 8 which runs for 4 weeks. The campaign, which targets shoppers across the Grocery, Impulse and Convenience channels, is designed to raise awareness of the savoury pastry brand’s focus on quality and local sourcing. The poster carries the strapline “Fans of Real Food”.

The ultimate crunchy nutter Kellogg’s is investing more than £6 million in advertising for Crunchy Nut in 2017, including its ‘Search for the Ultimate Crunchy Nutter’. The promotion challenges Crunchy Nut fans to eat a bowl of the cereal in a ‘troublesome place or at a troublesome time’, before sharing video evidence of the consequences though the hashtag #TastesTooGood.

Discover Quorn Quorn has unveiled a new TV campaign as a key sales driver in its £10 million brand relaunch.

Made up of nine 20 second commercials, the campaign encourages consumers to ‘discover a delicious, nutritious protein source’ and will run for 49 weeks. The ads showcase a range of dishes encouraging consumers to cook at home, using Quorn as the main ingredient.

Rubicon £5m campaign Walkers Pay Packet Pepsico

Trek Chunks Natural Balance Foods

The savoury snacking brand continues to drive sales its biggest on pack promotion to date. Walkers is offering shoppers the chance to win cash prizes ranging from an average weekly salary of £540, monthly salary of £2,200 and annual salary of £28,200, as well as instant cash prizes of £5 notes inside the pack. The promotion is supported with a high profile TV campaign.

Trek Chunks, a protein rich snack range from Natural Balance Foods, hopes to capitalise on the demand for better-for-you snacks. The 60g packs of bite size-chunks, which contain 12g of protein, are made from cold-pressed, natural ingredients and have an RRP of £1.15.

AG Barr is investing £5 million in Rubicon Spring with its latest campaign for the low calorie soft drink. Spearheaded by a national TV campaign, which sees the return of the popular fruity characters from last year’s ads. is supported by digital animated outdoor posters, social media and sampling, as well as in-store POS.

Rockstar on the beach The new Baywatch movie, is backing Rockstar with one of the energy drink’s biggest ever on-pack promotions. Running until June, the on pack promo gives shoppers the chance to win the Ultimate VIP Miami Experience, including pool party and luxury yacht trip, as well as daily prize bundles, via a ring pull winning code mechanic.

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

SLR May 2017.indd 35

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Fascias & Franchises

Feature

SYMBOLS OF CHANGE As the cost of doing business seems to relentlessly rise for independent retailers, the case for joining a symbol or fascia group has arguably never been stronger.

Average annual investment per store type Independents –

£7,632 Symbol Groups –

£10,716 36

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I

s joining a symbol group going to benefit you?

According to the 2016 Local Shop Report, in the UK, the 15,100 symbol group stores generated £14.2bn in sales in 2016.

The 19,100 non-affiliated independent convenience stores managed less than half of this figure, generating £6.3bn in sales over the same period. The proof is in the profit.

With a range of pressures from rates rises and increasing minimum wage to decreasing margins and ever more fierce competition, being under the umbrella of a nationally-recognised symbol brand and gaining access to the support infrastructure that symbol groups bring has never been a more attractive package for retailers looking for something to drive their business up a gear or two.

Whether considering joining one of these groups for the first time, or are considering the possibility of moving from one group to another, this guide will provide retailers with the key data they need to make a fully informed decision as to which fascia is right for them.

There are a number of easily recognisable symbol groups to choose from, including the likes of Premier, Nisa, Londis, Costcutter, Family Shopper and Spar. Each brand comes with its unique offers and benefits. It is a question of choosing one which meets your needs. Recent years have seen the diversification of

the sector, with more options for retailers of varied sizes and demographics. Whether you are looking for a more premium offering such as My Costcutter, to Booker’s family Shopper which blurs the lines between c-store, discounter and pound shop, the choice is there.

Choosing a symbol group can seem an intimidating task. It is a big commitment, especially if you are already tied into a contract or faced with joining fees – whether this is in the form of an admin charge, buying shares or paying for signage. But there is no doubt it can pay huge dividends.

How to decide which symbol group is right for your business will ultimately depend on your shoppers and what products and deals they want your store to offer them.

It might come down to the kind of store standards you are prepared to meet and the ways of working. If, for example, you are simply looking for a way of running promotions effectively then you might want to consider joining a cash & carry-based symbol group where you would normally go into depot and pick up the goods yourself.

The pros for retailers considering joining or switching symbol groups are numerous, not least because of the support a fascia can offer a in every aspect of running a convenience store, from exclusive discounts and buying power to staff training, running a social media

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Fascias & Franchises

page and availability of new technologies.

Being part of a symbol group gives you the backing and the knowledge needed to run a successful business, from promotional to posters and displays, along with the merchandising system and product knowledge to help with that make your business flourish.

Serviecs offered by groups will involve sending over several reps and provide supplier contacts who are qualified to offer an indepth analysis of what kinds of products you should be stocking, where in your store you should be stock them and how much profit you could and should stand to be making.

The support and advice that is given regarding store development should go some was to soothe shop owners who are nervous of change.

Some groups may introduce their own recommended shopfitter to assist with project planning and store layout to make the process as efficient and as stress free as possible. Many also have their own consultants who can do

detailed reports on potential or increased turnover.

These can be simple or very detailed, taking into account the demographic area around the shop and local competition. Sometimes there will be a fee, but it may be worth the cost as often it gives additional industryspecific information that will support any application. This information, when backed by a symbol brand, can add an influential supporting voice to any finance application.

Ultimately, retailers should ask themselves whether remaining unaffiliated is detrimental to their potential as a business in the long run, in light of increased competiton and pressure from supermarket chains and symbol groups themselves growing exponentially into the local retailing market place.

Whatever level you decide to go in at, it is best to do your research before determining which symbol group is right for you and ask all the important questions. This guide should help answer any basic queries and provide a starting block to joining a symbol group.

Feature

THINGS TO CONSIDER WHEN CHOOSING A SYMBOL GROUP Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q

Are there any initial costs?

What ongoing fees are there?

Are there delivery charges?

Is there a minimum spend?

Is there a minimum length contract?

Will I have to purchase any new equipment, such as EPoS? Do they allocate stock and are certain lines sent out automatically each month?

How frequent are the deliveries?

How quick are the lead times for deliveries?

What are their wholesale prices like compared to your existing suppliers?

How extensive is the product range?

Do they provide development support and in what form?

Do they provide a chilled & frozen range?

Do they offer advertising support – either nationally or locally?

What kind of consumer offers do they run?

How will they help me to stand out against the competition in the area?

Is there an own label offer?

Do they have a loyalty scheme?

Will they invest in my store and in what way?

TOP 8 REASONS FOR JOINING A SYMBOL GROUP 1) Wide range of products 2) Promotional activity 3) Regular communication 4) Marketing in trade press 5) Recognised brand above the door 6) IT and HR support 7) Dedicated trade website 8) Buying Power

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Fascias & Franchises

P THE BIGGEST AND THE BEST! 38

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remier is the UK’s number one symbol group with over 3,300 stores nationwide. The group is committed to delivering more profi ts for retailers and a better shopping experience for consumers. Premier has delivered double digit growth for fourteen consecutive years.

Premier continues to advertise on TV. Premier is advertised every day which will be seen over 100 million times. The TV advert features Premier’s famous Mega Deal promotions along with retailers to emphasise the local aspect of Premier Store. As well as this, retailers also benefi t from a full promotional programme covering all categories of fresh, frozen, grocery and impulse to ensure great value for shoppers to drive footfall into stores. This market leading promotional package, along with own-label and price-mark-packs, really drives the value message to help Premier retailers grow their business.

Premier works hard to ensure that retailers have the best choice of products to suit their individual store. This includes both Euro Shopper, Booker’s entry level exclusive own-brand and Happy Shopper, the mid tier option. This is complimented by working closely with branded suppliers to ensure the best choice of price marked packs so shoppers can clearly see the great value available.

Backed by Booker, the UK’s leading food & drink wholesaler, Premier retailers can take advantage of delivery at cash & carry prices, as well as having the ease and convenience of shopping at any Booker branch.

‘Spend & Save,’ where retailers can save up to 4% on their non-tobacco purchases, is also popular with Premier members as this delivers real savings and adds to their bottom line. Premier does not operate any membership or joining fees and installs the fascia and imagery free of charge. A wide range of additional services such as recycling, energy savings, free Epos and drop shipment are also available that have been specifi cally created to add value and keep operating costs low for Premier members.

The group continues to go from strength to strength and its relentless focus in increasing choice, lowering prices and improving service has helped Premier members deliver fantastic convenience stores.

www.slrmag.co.uk

19/05/2017 10:44:58

Footfall, sales and profits are up!

“Premier understand my business needs, and are always there to support and help grow my business.�

Mandeep Singh, Sheffield.

Call us today! 01933 371246 www.premier-stores.co.uk SLR May 2017.indd 39Group - Premier Advert.indd 1 77046 SLR - Symbol

19/05/2017 10:44:58 18/04/2017 10:02

Feature

Fascias & Franchises

NISA: THE UNIQUE MEMBEROWNED SYMBOL GROUP

N

isa Retail is unique in the convenience sector as it is a mutual style company which means it is owned by its independent retail members.

Retailers have the option to operate under four symbol fascias: Nisa Local, Nisa Extra, Loco and dual branded whereby a member can maintain their true local identity whilst also benefiting from the strength of the Nisa brand. Alternatively, a retailer can also choose to trade under their own independent fascia.

Nisa recently launched its new Store of the Future 2 Evolution format, offering a greater degree of flexibility to retailers and moving towards a more modular development format which accommodates the individual demographic and shopping missions of the store.

Nisa provides a complete retail support package which comprises a strong retail focussed team, an enhanced category management system, a bespoke staff training facility under the Retail Academy banner, and a comprehensive marketing package incorporating bespoke leaflets, point of sale material and national advertising.

Nisa’s flexible model provides its retailers with an unbeatable breadth of range comprising over 13,000 SKUs, with a 98% availability rate, to ensure they can provide a single destination shop for all their customers’ needs. This is supported

by Nisa’s award winning own label range, Heritage, which provides retailers with over 800 SKUs which have been reformulated and repackaged to ensure they offer great quality products at affordable prices. This commitment to value and quality saw Nisa secure the accolade of Symbol Fresh Produce Retailer of the Year in 2016, affirming Nisa as the symbol group of choice for fresh produce. This is all delivered

by Nisa’s industry leading supply chain which retailers can trust with an impressive 99.9% of deliveries made on the day and 95% successfully made on time.

Nisa has its own insight team which allows Nisa retailers to truly understand their customers and their market place enabling them to modify their offer to

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match the ‘local’ demographic. Retailers can then use this insight in conjunction with Nisa’s category management service to create bespoke planograms, layouts and propositions within their individual sites.

Through Nisa membership retailers can take advantage of the Retail Academy which provides a complete training solution to develop their staff, to ensure their morale remains high and to help provide the best possible customer service.

Nisa provides retailers with a comprehensive marketing package incorporating bespoke leaflets, allowing members to personalise the leaflets to include local offers, local events and community news, as well as a personalised Nisa FM which provides retailers with a strong radio network for their store.

In order to drive improved service, delivery and engagement for and with its members, Nisa recently restructured its support functions to further strengthen its operational focus and effectiveness. Nisa provides a comprehensive support structure which retailers are encouraged to utilise to ensure they continue to drive their business forward. Support comprises a strong field team covering retail development managers and regional retail managers, in addition to fresh food development managers, who encourage retailers to make the most of this important category, and store development managers who help Nisa members to further develop their stores and proposition.

Finally, Nisa knows that community involvement is key, and as such its retailers are able to support good causes in their local area through Nisa’s Making a Difference Locally charity, which in 2016 donated over £1.4 million to charities and good causes throughout the UK. The process to join the Nisa group is made as stress free as possible through the enhanced member website and the support that retailers receive from the skilled and trained in-house staff across all areas of the joining process.

Complete the form on www.join-nisa. co.uk/contact-us to join or contact our friendly development department on 0800 542 7490.

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19/05/2017 10:44:59

JOIN US NOW FOR A 2017

WITH NISA, IT’S GOING VERY WELL. ITS RANGE IS UNPARALLELED SO I CAN COVER ALL THE BASES “We’ve been Nisa members since day one when I bought the shop. This was largely to help cater for both old and new customers.

For that, I needed a large range of products to pick from at a cost which made me as competitive as I could be.

Ordering is simple and fully automated – we place orders online and they turn up two days later. I came from the wholesale sector, so I know what it’s like, and I can’t fault Nisa at all for availability and the way it delivers to retailers.”

I married Nisa’s suggested range with what the store already stocked. I wanted to make sure I was giving the existing customer base what it was looking for. New customers have provided the opportunity to stock more indulgent lines.

Colin Smith

Range: “ Product range of

13,000

skus enhanced with 100’s of promotions

NISA MEMBER SINCE 2014

To find out why joining Nisa is as easy as 1-2-3 visit www.join-nisa.co.uk SLR May 2017.indd 41 12522_NISAtradePress_Pinkies_2017_A4_AW02.indd 1

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Feature

Fascias & Franchises

MAKE L MORE AND SAVE MORE WITH LONDIS

ondis is part of the Booker Group, the UK’s leading food and drink wholesaler and is one of the UK’s leading symbol convenience store brands with over 1,800 members across the UK. Londis works in partnership with its independent retailers to provide local communities with all they need in convenience shopping, close to their home.

As well as the strength of a nationally recognised brand, Londis supports retailers with better pricing, market leading ranges, strong promotions, store development advice and a leading supply chain service to help them compete and succeed in today’s rapidly expanding convenience market.

The benefits of the Londis offer include: Q Free Membership Q Competitive cost of goods.

Q Loyalty discounts of up to 4% on all purchases (Excludes Tobacco) Q Award winning Fresh range with over 1,250 lines.

Q Award winning own brand ranges Euro Shopper, Happy Shopper and Farm Fresh.

Q A best in class online web ordering system (Londis Webshop).

Q Market leading promotions every 4 weeks Q Free Promotion Leaflets and FREE store point of sale support.

Q Support from our dedicated Store Development and Retail Development teams.

Q Tri Temperature fleet delivering all your ambient, fresh and frozen needs on one delivery.

Q A best in class forecourt package with a dedicated forecourt team.

Q Free Membership of the ACS. Londis is a flexible symbol partner that has a fully delivered service and support package to suit ambitious independent Scottish retailers with stores from 500 sq ft. up to 2000 sq ft. As a new Londis retailer you will benefit from partnering with Booker Group, the UK’s leading food and drink wholesaler.

Londis offers true value with the right range of products at the right prices. We aim to ensure our prices are the most competitive by price checking the Top selling 300 lines on a weekly basis. We provide an industry leading fresh offer with over 1,250 fresh and chilled lines, including fresh food-to-go, fresh produce ranges and mealfor-tonight solutions. Combine this with smart planning, local area knowledge, range optimisation and the symbol group’s expertise in merchandising, so any store can be turned into a highly efficient business that makes more cash profit.

We are committed to helping our retailers Make More and Save More and in 2016 helped our retailers Make and Saver an extra £21k. We continue to focus on delivering Better Choice, Price and service for our Independent Retail Partners and supporting them to grow their business locally.

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19/05/2017 10:45:01

“Londis provides a fantastic “Londis has helped me package.

It’sprofits helpedwith me increase my increase my pricing profits, and so a competitive I’m happy!” great range just right for my store!”

Bryan Craig Bryan Craig Londis Crianlarich

Join Londis today and watch your profits grow FREE

Membership

FREE

Leaflet Scheme

FREE

EPOS System

NEW

Discount Scheme

A new and LOWER cost Londis that’s SIMPLER to do business with Be part of the success and call us today!

Call 0808 178 8644 and quote ‘JOIN 05’ or visit joinlondis.co.uk SLR May 2017.indd 43 75903 Londis Recruitment Ads V6.indd5 5 74478_Lon_Recruitment_A4_v3.indd

joinlondis.co.uk 19/05/2017 10:45:02 23/01/2017 14:24 21/10/2016 10:26

Feature

Fascias & Franchises

HELPING INDEPENDENT RETAILERS THRIVE

O

ur mission is to help independent retailers thrive, giving them the support they need to grow their businesses by meeting the changing needs of their local shoppers.

In 2016 Costcutter Supermarkets Group undertook the most in-depth study of shoppers in its 30-year history and launched the new Shopper First Programme, a transformation programme bringing together new brand and store design, shopper insights and sales driving range initiatives.

Following this work, all of our retailers have detailed shopper profile information for their store, including details of our five core shopper personas. This enables them to better understand their neighbourhood and use this to develop a truly local offer to bring new shoppers into their store. This approach is supported by our range of over 9,000 lines, 300 direct to store and local specialist suppliers and an award winning Independent own brand. Our new Food to Go offer gives retailers a framework around which they can create a fully tailored offer, both in size and product mix, to meet the needs of their local shoppers and take advantage of this growing opportunity.

In January 2017 we launched our first all-new Costcutter brand and store design which has been created to connect with shoppers, stand out of from the crowd and transform the in-store experience. The new Costcutter store design is a step change in convenience retailing with a selection of stunning exterior and interior finishes that appeal to today’s shoppers’. The fully flexible modular approach allows retailers to invest at a pace that suits their individual needs and focus on the key shopper missions. This new look Costcutter sits alongside the Mace brand, which will also be updated later in the year, and the awarding winning Simply Fresh brand to allow us to offer retailers the right brand for their store; all underpinned by shopper insights.

With two-thirds of adults in the UK owning a smartphone and 90% of 16-24 year-olds having one a strong social media presence is key to reaching shoppers. We have taken the lead on social media and proximity marketing in the convenience sector and our training courses help our retailers to get online and engage with their customers to drive footfall and sales in their store.

We place technology innovation at our retailers’ fingertips, transforming modern retail with state-of-the-art systems that make life easier. We offer the latest in-store technologies that shoppers demand like easier payments via Apple Pay, Contactless and Self-Service check outs. Our cutting edge Activ Technology systems, including ActivCPoS, ActivOC and retailer portal ActivHUB, have been developed to make the ordering process hassle free and our ActivMOBILE app allows retailers access to all of this information on the go.

By putting the needs of shoppers first, we are providing our retailers with the ability to meet changing shopper expectations and buying habits, delivered through innovative unique brands that engage with shoppers.

To find out how we can help you, call the team on 01904 488663.

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SGF Advert_A4 edit.pdf

1

16/12/2016

16:35

Reason

2

#

We Help You Fight Back 75% of people now shop at Aldi or Lidl.

*Nielsen 2016

We’re here to help you win back your customers.

Our competitive prices and range of 10,000 lines deliver great margins for you and great value for your shoppers.*

Discover more reasons for us to talk‌ Call 01904 486 543

Reasons to talk

or visit www.costcuttersupermarketsgroup.com

SLR May 2017.indd 45

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Feature

Fascias & Franchises

DELIVERING VALUE EVERY DAY

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F

amily Shopper is a discount format for independent retailers that brings together the strength of symbol retailing with the great value available in the discount channel. It has been specifically developed to help independent retailers capture the growing sales and profits from the discount sector.

The discount format provides retailers with everything that shoppers would expect from a convenience store including chilled, alcohol, grocery and tobacco along with services such as Lotto and Paypoint. This is then combined with the best of the discounters, covering a wide range of £1 non-food items such as stationery, kitchen utensils, plus a broad seasonal offer. Providing comprehensive disciplines, all Family Shopper stores offer a simplified range that removes duplication. Also merchandising in full trays makes the format easy to operate while minimising back stock and easing cash flow.

Family Shopper is constantly reviewing its range to ensure that retailers have the best choice of products to suit their individual store. This includes the own brands Euro Shopper and Happy Shopper. Selected branded products are also available to ensure shoppers have a ‘best’ choice. As well as four weekly promotions, there is exceptional value in key footfall areas of the store, offering the consumer a true bargain every day.

Backed by Booker Family Shopper retailers can take advantage of delivery at cash & carry prices, as well as having the ease and convenience of shopping and ‘topping-up’ at any Booker branch. A wide range of additional services such as recycling, energy savings, free Epos and drop shipment are also available and specifically created to add value and keep costs low.

The group continues attract interest from independent retailers nationwide. By continuing to focus on choice, price and service, the group remains committed to helping Family Shopper retailers grow their sales and profits.

www.slrmag.co.uk

19/05/2017 10:45:06

Unique discount format Simple to run & operate High cash profit

“I love the simplicity of operating a Family Shopper. It offers my shoppers the best of convenience in a discount format, where they really can get bargains everyday. Having a rationalised range, that still offers choice at low prices, means I run an efficient store and eases my cash flow. Plus the Booker team supports you every step of the way.�

Mr Kumar, Glynneath.

Simply building sales & profits for you Call Family Shopper today:

01933 371757

SLR May 2017.indd 47Group - Family Shopper A4 Advert.indd 1 77108 SLR - Symbol

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Feature

Fascias & Franchises

BE PART S OF THE WINNING TEAM

PAR has experienced consecutive years of growth by continuing to improve its offer, drive basket spend and footfall, improve its promotional programmes, reduce costs and develop industry leading store formats. It continues to forge ahead in the convenience sector by offering retailers profitable store formats, the biggest own label range, innovative selling plan and a strong buying strategy.

SPAR firmly believes it offers the best route to market from its supply base to its vision for what SPAR will look like in the future.

Ultimately its strategy is to help all its retailers run successful and more profitable businesses.

Helping move your business forward in 2017, it is imperative that SPAR continues to adapt to the ever changing market and, in particular, to the changing needs of its customers and their different methods of shopping. The convenience market is currently changing more rapidly than it has ever done and SPAR recognises that we must work smarter and move even more quickly to continue to be a leader within the symbol sector.

SPAR will do this through using innovative ideas that make customers experience in store more enjoyable. Innovation is at the heart of the convenience sector and retailers must always be looking at new ways to bring a better shopping experience to our stores.

Shoppers want to see improvements in technology, foodservice, convenience and healthier options in store, which is why SPAR has endorsed SUBWAY, Greggs, Costa Express and now has its own exclusive food to go brand “Daily Deli”. This allows it to offer retailers numerous ways to get into the profitable food to go business at various levels of investment. Some stores now offer seating areas instore, in a modern world where social media and mobile phones dominate. It’s important to think of ideas to appeal to customers such as charging points and free Wi-Fi. These are just some of the innovations and the types of offerings that will drive footfall and build loyalty to a store. Convenience stores must continue to innovate and invest and be first to market to continue to attract the more discerning shopper through the door.

SPAR is committed to a ‘More Together’ strategy that ultimately aims to help its retailers develop more profitable businesses in a more modern environment, continually improving the shopping experience.

All being delivered by the largest and most committed sales team in Scotland.

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www.slrmag.co.uk

19/05/2017 10:45:09

Join the winning team!

s.

0 year r over 2 m I have o f R A nalis of SP he ember nd professio ourish into t een a m ea ofl I have b port, guidanc y business t tail m p The su has allowed has become. mitted to re d m it e o e c iv r s e is o a c t t h e s r g ha m team t winnin AR tea award s a fantastic oard, the SP its drive for b a d h e n h a R t e A s os SP tor nce acr in my s hich excelle n active role none. sales w a o t d d e in fresh sh food SPAR on h c t play e w s o r is nce ing g of fre ort of a excelle iness is show class range d supp ld s The bu te to the wor the advice an u h it Renfrew ger.

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Supported locally by the largest Scottish based sales team in the symbol sector!

Up to £20,000* to make your store a great SPAR store Free membership fees in your first year Free full project management of store development Free inclusion in the new store induction scheme & participation within the fresh food sales project Free market leading training Bespoke advertising support package to launch your new SPAR store Heavyweight national advertising campaigns plus leaflets and distribution in your local area Multi award-winning own brand range - 1000 products New enhanced package including lower cost prices and additional margin opportunities through over-riders on all purchases (exc. Tobacco products) * Subject to terms and conditions. Maximum amount available for store development £20,000.

Speak to us today www.spar.co.uk/joinspar email: recruitment@sparscotland.co.uk or call Marketing on 01382 512000 www.spar.co.uk

SLR May 2017.indd 49

www.facebook.com/ SPARintheUK

@SPARintheUK

Channel: SPAR UK

19/05/2017 10:45:09

HOW A * £50,000 REFIT COULD TRANSFORM YOUR STORE We know running a store is hard work because, like you, we are doing it every day. We want to make sure you are profiting from all the hours you are putting in, which is why we would like you to consider becoming a One Stop Franchise.

The £50,000* investment that One Stop makes will transform your store into a fresher and brighter environment that your customers will love.

Our market-leading promotions will give customers that extra reason to come to you.

We have great £3 lunchtime meal deals, 2 for £4 evening meal solutions, strong fresh and produce deals, milk, bread, and eggs for £1 and great everyday low prices on daily essentials.

We have the expertise and tools that will grow sales and profits, from our market-leading EPoS systems with auto replenishment, to our focus on people training to help you focus doing the right thing for your customers and your store.

With our backup and insight from retailing in over 900 stores 7 days per week, we continue to innovate and develop our offer and services. We truly understand what customers want and need.

If you want to invigorate your business, drive your sales higher and grow profits, we’d love to hear from you. Feel free to get in touch with our team at any time.

Find out how you could profit more from One Stop Call: 01543 363 003 Twitter: @1StopFranchise Visit: www.openaonestop.co.uk

SLR May 2017.indd 50

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Mr Singh of Cwmcarn, Wales opened his first One Stop store in February 2017 and said about the process, “One Stop push you to grow your business…it’s a well known franchise which is a draw.

“The way the team said they were going to refit the store, the step-by-step process and their communication was brilliant.

“The community were all happy and they really like the change.

People have been pleased and said, ‘I used to have to go to Blackwood and now I don’t need to, so I can use my local store’.

So, feedback is very good from the local community – they’re all very excited. It’s the promotions in-store, which draw our customers.

“System-wise, their (One Stop) technology is up-to-date. When we had the new tills they were great, before we just had a basic manual system.”

Look what a £50,000 One Stop refit could do for your store.

WORKING TOGETHER WE’LL HELP YOU PROFIT FROM...

Better Sales and Margins

Competitive margins of between 18-25% promotions with 4-weekly Market-leading promotional plan & supporting POS fresh range and offers to give Enhanced customers everyday low prices reporting including Market-leading monthly P&L and weekly KPI Dashboard deliveries up to 6 days per week, Fresh and Ambient 3 days per week

7 days a week support and training

Franchise team is just a phone Our call away – there is always someone available

Helpdesk Support Centre is available IT7 days a week, 364 days a year! dedicated BDM will visit your store Aevery 4 weeks for 3 hours.

Net featuring guides, Franchise operating manuals, toolkits, and other training materials

Time saving technology

Our 2 lane EPoS System stock Automatic replenishment invoicing, sales Online and margin reports suite of store specific Full planograms Remote access

*ex VAT. Subject to terms and conditions of contract.

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Job No. J002164

Stage ARTWORK

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Fascias & Franchises

Feature

W

ith the latest research indicating that symbols and independents are outperforming the multiples in terms of shopper spending, convenience retailing is the place to be. And with growth of 8.2%* versus a sector growth of 4.8%**, Best-one continues to lead the way in symbol retailing and particularly in Scotland where Best-one’s sales are up an impressive 9.6%*. A major part of this success is the support the group offers members in terms of promotions, flexibility, field support and store development

Over the past year over £2m has been invested in sales and business development personnel to ensure members receive two store visits per month to help retailers stock the right categories, optimum ranges and store development. A focus on hero categories such as BWS, food-to-go, bakery and chilled and fresh has seen members increase sales throughout their businesses. Each member also works with their dedicated BDE to work up a Joint Business Plan based on actual sales data and benchmarked against the store’s potential as defined by its shopper demographic.

PROMOTIONS

STORE DEVELOPMENT

Members receive five unbeatable WOW Deals and 15 Must Feature promotions every month with case allocations to ensure members have availability throughout the promotional period. Shoppers now expect to see promotions that match the multiple retailers and Bestone delivers on this. In addition with the move into larger pack formats of tobacco – the largest category footfall driver in to store – these deals will drive frequency of store visits, basket spend and customer loyalty

With a variety of formats available based on shopper profi les and their missions, Best-one works with members to deliver the best possible solution for their communities. From simple food to go solutions to full serve-over meal counters and premium coffee stations, Best-one can help remodel, refi t and revitalise your store. Many members have used future earnings from the My Rewards rebate scheme to fund refi ts or new refrigeration rather than tying up capital and the recently introduced Central Pick operation gives retailers longer shelf life on over 1,500 chilled and fresh products with up to three deliveries per week.

James Hall Symbol Development Director says “Best-one is performing incredibly well and especially in Scotland where it is growing at twice the rate of the overall UK independent and symbol sector. The Best-one brand also resonates greatly with shoppers as the recent Which? Survey showed – ranking Best- one as the UK’s top symbol group and third in overall convenience after M&S Simply Food and Little Waitrose. I believe Best-one is the best alternative for retailers wanting to make a step change in their businesses or for other fascia customers wanting to make the switch to a progressive and profitable symbol partner.”

FLEXIBILITY Best-one members can buy online, in-depot or via the Bestway Wholesale mobile app and can pay by cash, direct debit or credit with up to three deliveries per week. All retailer purchases contribute to the My Rewards rebate scheme which offers up to 5% cashback on purchases with the annual rebate to participating members in excess of £7,000 per year. Local sourcing also plays a major part for the group and members are free to engage with local suppliers in addition to over 300 drop shipment suppliers.

FIELD SUPPORT Best-one prides itself on its continued support it delivers to members.

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*Bestway Business Intelligence data, 12 weeks to 23rd April 2017 **Kantar WorldPanel 12 weeks to 23rd April 2017

IT’S TIME YOU WERE WITH THE BEST-ONE!

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Feature

Sugar Confectionery

SWEET-TALK YOUR SHOPPERS With sugar confectionery predominantly an impulse category – research indicates 80% of confectionery purchases are influenced in store – retailers must cover all the bases to drive impulse sales in one of convenience’s most important categories.

£147m Is the value of the mint segment

45%

Of consumers purchase mints

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N

early every month, SLR prints a story about cuts in sugar content and recipe reformulation of a popular product, regularly attributed to the sugar tax and the country’s new found fixation with healthy living. Many manufacturers have responded to this sugar revolution by reformulating their products, or launching news ones, that deliver improved nutritional credentials while still delivering an affordable treat that the majority of shoppers still seek in an increasingly regulated world.

Shoppers know there is sugar in most confectionery.

It doesn’t disguise

itself as a healthier and people are as likely as ever to pick up a chocolate bar or bag of candy to satisfy their cravings and no matter what is going on in the production line, category sales are as strong as ever.

The singles section is the first thought for most shoppers looking for a quick sugar pickme-up. Maintaining a neat fixture, having clear pricing and offering a diverse range of confectionery best-sellers and new offerings is likely to help drive incremental sales in the category. Retailers should also take advantage of brands that are creating product awareness with product promotions, details of which can be found in SLR. Recent single serve NPDs from popular brands include Skittles Tropical and Starburst Very Berry from parent company Wrigley.

“Tropical has been mirrored in other categories and is performing exceptionally well with value growing year-on-year,” says www.slrmag.co.uk

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Feature

Sugar Confectionery

£1.3bn

Is the value of the UK confectionery market

MONDELEZ’ TOP TIPS FOR DRIVING CANDY CONFECTIONERY SALES Q Stock the bestselling brands and ensure these are placed in the bestselling locations.

Q Group products by format i.e. singles should be placed with singles, bags with bags etc.

Q Stock the latest supported NPD. Q Make the most of brand investment by having displays in store when the consumer is most aware of them.

Q Utilise manufacturer POS to help product stand-out and help shoppers spot what they are looking for.

Q Place mints in the main confectionery fixture and on the counter.

Q Where possible, remove the product from its case.

Q Be fully stocked.

Q Stock should be clearly priced.

Q Ensure shelf edges are clean so the product looks at its best.

Dan Newell, Confections Marketing Manager at Wrigley.

“Berry flavours [also] have a proven track record of driving growth in to the sugar confectionery category,” he continues, citing recent Nielsen data as evidence. “Starburst flavour variants have proven to be 89% incremental to the brand, and the launch of Starburst Very Berry is projected to drive nearly £4 million in retail sales as Wrigley looks to drive category growth.”

Reformulation is taking place in confectionery favourites, including Nestlé Confectionery’s flagship brand KitKat, which has introduced a new recipe across its milk chocolate range, with each chocolate bar now containing extra milk and cocoa. The move is 58

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part of the company’s commitment to reduce sugar in its product range. Rather than boast the sugar reduction, the core KitKat milk range will feature a flash on the front of packs for six months championing the “now with extra milk and cocoa” message to consumers, demonstrating that sugar content is not always the main selling point.

The confectionery aisle is being infiltrated by the growth of biscuit bites, with bitesize singles and sharing packs coming from popular brands, including McVitie’s Digestives new Nibbles Handy Packs. Whilst 54% of biscuits eaten on-the-go are in take home packs, only 7% of biscuits are currently available in on-the-go format – making the new offering an exciting on-the-go proposition

for the confectionery category.

McVitie’s Marketing Director, Kerry Owens, explains the phenomenon: “Our busy lifestyles have led to an increase in snacking when out and about, leading shoppers to gravitate towards single serve packs, pouches and grab on-the-go items.”

Thanks to occasions like the Big Night In, sharing bags containing bitesize offers of popular confectionery products has grown the category in recent years. Mondelez has one of the widest ranges on offer, which it has extended further with the launch of Cadbury Fudge Minis. Cadbury Fudge is the third largest brand within Mondelez International’s kids portfolio, and follows the likes of Cadbury Dairy Milk Buttons which have also been extended into the bitesize category.

Melissa Stuart, Brand Manager for Cadbury Bitesize, says: “The chocolate bags category is contributing to 39% of the total chocolate growth and so we hope by introducing another well-loved brand into this category, retailers will be able to drive sales further.”

Long standing bagged confectionery brands are also taking a piece of the action with new offerings, as hanging nag veteran Millar adds a new ‘melt-in-the-mouth’ Smooth Butterscotch sweet to its range. Top sellers from the brand’s 25 SKUs are Pan Drops, Mint Imperials, Chocolate Eclairs and Blue Raspberry Bon Bons. “Classic flavours continue to perform very well in the confectionery sector, so we’re delighted to add a premium-quality Smooth Butterscotch to our range,” says Sunny Pahuja, Managing Director of Millar brand owner Nisha Enterprises.

Ensuring consumers are getting value for money is crucial to the confectionery

www.slrmag.co.uk

19/05/2017 10:45:20

*Nielsen Total Coverage 28.01.17 **Retailer Competition: UK, 18+, Delicious Display registered members. Promotion Period: 00.01 15/05/17 – 23:59 31/07/17. Internet access, contact details, ability to take and upload photo required. Upload a photo of your display of promotional Maynards Bassetts bags (400g/160g/190g) for a chance to win. Winners randomly selected in a draw within 7 working days of 31/07/17.

1 entry per store. Display should stay up for verification for 21 days after 31/07/17. Prize: 6 x £100 Love2shop (“L2S”) vouchers (L2S T&Cs apply). 1 prize per winner. Promoter: Mondelez Europe Services GmbH – UK Branch, Sanderson Road, Uxbridge, UB8 1DH. See full T&Cs on deliciousdisplay.co.uk Consumer Promotion UK, ROI. 18+, 00:01 01/05/17 - 23:59 31/08/17. Final draw (for entries between 01/09/17 - 31/12/17) on 06/01/18. Promoter: Mondelez Europe Services GmbH – UK Branch, Sanderson Road, UB8 1DH. See www.winbonkersdaysout.com for full T&Cs. SLR May 2017.indd 59Bassetts Bonkers The Grocer Trade Advert_170421_v2.indd 1 5113080_Maynards

19/05/2017 10:45:20 21/04/2017 17:33

Sugar Confectionery

Feature

24%

Of confectionery sales comes from candy

Maynards Bassetts recently launched brand new Wine Gums Tangy, which aim to bring more adults to the sour segment. Following this launch, the Maynards Bassetts Wine Gums brand return to the small screen this month with a TV campaign that will air for six weeks, as a part of a £6m marketing programme for the brand in 2017.

Last summer the brand also launched Maynards Bassetts Juicy Chews, the brand’s first adult chew candy with a liquid centre and is available in three tantalising flavours – cherry, orange and strawberry.

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category as it is driven by impulse, and one of the most effective methods is to stock price marked packs.

More than two thirds of shoppers buy PMPs in convenience stores as competitive pricing encourages impulse sales, according to him! data. “As well as offering good value, PMPs help retailers build a sense of confidence and trust with shoppers, with half saying PMPs reassure them that they are not being overcharged,” says Wrigley’s Dan Newell. He says that currently, only 68% of retailers stock a selection of price marked packs as part of their confectionery offering.

Following the successful launch in 2015 of £1 RRP PMP hanging bags, last summer, Wrigley launched a new range of PMPs across its best-selling Skittles and Starburst singles formats. “The PMPs are designed to help retailers in the convenience channel drive confectionery sales, by offering consumers a selection of top performing sugar confectionery brands, at an attractive price,” Newell explains.

T a k i n g initiative from its popularity in the mint and gum category, Wrigley also added a new bottle format packaging for its original Skittles Fruits variant, to tap into the growing consumer demand for confectionery products to enjoy on the go. The neat red container features an easy to open re-sealable lid ensuring people can enjoy Skittles candy when on the move.

Mints and gum

have a vital role to play in the confectionery aisle as insights from Kantar show that 45 per cent of consumers buy into the category.

Ferrero’s Customer Development Director, Levi Boorer says that the mints and gums category has seen an increased consumer demand for a range of fruit flavours over the past few years as a key driver for the category. “We have acted upon this trend by developing insight-driven NPD, to ensure that retailers have a range of products to offer shoppers,” he says.

Mints and gums most commonly occur as impulse purchases in convenience stores, which Boorer says can be maximised by siting in disruptive locations such as at the counter or beside the newsstand. “Research shows that 31% of shoppers only buy one item when visiting a convenience store, demonstrating the importance of creating intelligent disruption in-store to drive further impulsive sales” he explains. “Pocket confectionery is one of the most impulsive categories in the confectionery market, with 7 out of 10 purchase acts being unplanned.

Many shoppers will also browse for longer at place such as the newspaper or magazine fixture – retailers can capitalise on this by implementing magazine hook-over units.”

Sugar confectionery is a constantly diversifying category which sells itself to shoppers in a number of ways. Brands may be dramatically dropping the sugar content in their products, but regardless of what goes on in the production line, sugar confectionery remains strong for local retailers. It is a top selling category in convenience and it is worth focusing on best-selling lines, ensuing shelves are stocked, making the most of awarenessdriving brand investment such as adverts and stocking the latest NPDs.

£6bn Is the value of the UK on-the-go snacking market

www.slrmag.co.uk

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Feature

Soft Drinks

HARDER TIMES FOR SOFT DRINKS? Very few categories in local retailing are undergoing change on the scale seen in the soft drinks market thanks to the sugar tax – but what does it mean for local retailers? SLR speaks to some experts from key soft drinks players.

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T

he media focus on sugar has led to an increasing number of consumers switching from sugary soft drinks altogether in favour of healthier alternatives. KWP research shows that 92% of consumers are trying to manage or reduce the amount of sugar in the foods they buy and 29% of consumers are ‘very concerned’ about sugar.

As a consequence, the soft drinks scene is undergoing a massive overhaul in response to the notorious Sugar Tax. The majority of all research, development and marketing spend is being funnelled into low and no sugar variants by the major UK and global manufacturers, making sure they keep profits up. Manufacturers hope these new innovations and reformulations will provide consumers with the products they demand at affordable price points.

As shoppers become more conscious of the volume of sugar in their diets, it is important, therefore, that retailers provide a selection of healthy soft drinks. There are numerous drinks on the market that claim to be ‘low in sugar’ or ‘healthier’, but which of these products should retailers stock their drinks cabinets?

“With a value of more than £7.6bn [Nielsen Data], soft drinks present a huge sales opportunity for retailers as consumers look to refresh and rehydrate, whether they’re on-the-

go, have their feet up at home, or are planning to host a dinner party or family gathering,” says Amy Burgess, Trade Communications Manager at Coca-Cola European Partners (CCEP). “For retailers, offering a wide choice of different products, including a range of flavours and variants, as well as pack formats, is the key to making the most of soft drinks sales.”

As the trend towards healthier soft drinks progresses, Burgess urges retailers to keep a wide selection of zero or low calorie drinks, as well as constantly reviewing their soft drinks range to track the demand from consumers and what new, lighter offerings they should make space for.

The importance of offering chilled soft drinks should remain a key focus for retailers as on-the-go purchases are a key driver in the convenience sector. Consumers prefer their drinks to be chilled, with ‘Drink now’ sales accounting for more than three quarters of all soft drinks sales in Scotland convenience, according to IRI research.

From April to August, the crucial summer period for soft drinks sales, shoppers consume 14% more soft drinks (IRI Research), with Water, Fruit Drinks and Other Flavoured Carbonates seeing the most benefit.

“Retailers who adapt their ranges to reflect this will benefit significantly”, says Adrian Troy, Marketing Director at AG Barr. www.slrmag.co.uk

19/05/2017 10:45:26

Soft Drinks

Feature

THE TOP 10 SOFT DRINKS MERCHANDISING TIPS FROM CCEP AND AG BARR Q Group different sectors together such as, colas, flavoured carbonates, energy drinks, waters, juice and juice drinks.

Q Identify your best performing brands in each category and stock these at eye level.

Q Stock different variants of the same brand together.

Q Stock soft drinks alongside their caloriefree equivalents.

Q Look out for products that are being backed by marketing investments.

Q Ensure that your soft drinks fixture is highly visible, well presented and located in a high footfall area.

Q Ensure effective ranging, space allocation and stock availability.

Q Restock regularly, especially during the summer months.

Q If a product is selling out regularly increase the number of facings.

Q Talk to your customers to find out what they want.

HEALTHIER DRINKS

WHY? Soft drinks giants Coca-Cola and Irn-Bru continue to extend their healthier offerings to keep interest in a constantly diversifying market, taking the bull by the horns with sugar reductions and new brand permanent lines.

KEY PRODUCTS Q Q Q Q Q

Coca-Cola Zero Sugar Coca-Cola Zero Sugar Vanilla Diet Coke Irn-Bru Sugar Free Irn Bru Xtra

Last Summer, Coke Zero became Coca-Cola Zero Sugar, following extensive reformulation and development to get the recipe as close to the 130-year-old original as possible, and hoping to encourage more Coca-Cola Classic drinkers to give it a try. The new name and new look is to enhance its sugar-free credentials even clearer to consumers.

“The reaction has been really positive so far and we’re encouraged by Coca-Cola Zero Sugar’s performance to date, which has seen it become the fastest growing top-five cola brand,” says CCEP’s Amy Burgess.

The success of the reformulation saw the arrival last month of CocaCola Zero Sugar Vanilla variant, which is to be joined later this summer with a reformulated Coke Zero Cherry. Both, along with Diet Coke’s recently unveiled brand ambassador, Holly Willoughby, are seeing significant marketing support which should boost sales of the products Since its launch last year, Irn-Bru Xtra – the first permanent product from the popular Scottish drink – has seen a positive response following extensive, ongoing marketing. The AG Barr brand’s healthier options are proving themselves popular as Irn-Bru Sugar Free offer has become Scotland’s number one low-calorie flavoured carbonate, according to IRI marketplace data.

www.slrmag.co.uk

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Feature

Soft Drinks

JUICE AND CARBONATED DRINKS

BOTTLED WATER

WHY?

WHY?

The demand for lighter options can be seen across the soft drinks category and juice drinks are no exception.

The nation’s focus on health, particularly sugar, is having a big impact on soft drinks. An increasing number of consumers are switching from sugary soft drinks to healthier alternatives.

KEY PRODUCTS

KEY PRODUCTS

Q Q Q Q Q

Capri-Sun No Added Sugar Orange-Lemon Oasis Zero Fanta Zero Sugar Rubicon Spring Rubicon Light & Fruity

To tap into this consumer demand, retailers may consider stocking a range of low and no calorie juice drinks, such as Oasis Zero and the CapriSun No Added Sugar range, which is available in Orange, Blackcurrant, Tropical and recently introduced Orange-Lemon flavours.

“We’re launching Capri-Sun No Added Sugar Orange-Lemon 330ml as the brand continues to help retailers tap into the growing demand for low calorie juice drinks for immediate consumption,” says CCEP’s Amy Burgess. “It has been designed to support retailers’ sales as 50% of millennials now claim to eat healthier than they ever have in the past.”

Also in growth are flavoured carbonate brands, such as Fanta, which saw steady growth that the brand attributes to a large portfolio of different flavours and Zero Sugar options.

“With consumers becoming ever more health conscious, stocking zero sugar variants of well-loved brands like Fanta, Dr Pepper, Lilt and Sprite, can help retailers meet demand for bold and refreshing fruit flavours whilst enabling consumers to enjoy lighter products,” Burgess advises.

From AG Barr comes Rubicon Spring, a range of four products combining sparkling spring water with fruit juice, containing 15 calories or less per bottle, and Rubicon Light & Fruity, a new range of three products which claim to deliver the Rubicon taste with half the sugar.

“Branded flavoured sparkling water is currently one of the strongest performing areas within the soft drinks market, growing at +144%,” says AG Barr’s Adrian Troy.

“Rubicon Spring has delivered nearly a third of this growth, with sales of over £10 million since it was launched in July 2016.”

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Q Q Q Q Q

glacéau smartwater glacéau smartwater sparkling Highland Spring Highland Spring Sparkling Strathmore water

Bottled water is one of the fastest growing soft drinks sectors, having achieved 12.4% growth in the convenience sector over the past year [IRI data], with sales of both immediate and future consumption formats on the rise. The bulk of bottled water sales within independent and symbol retailers are made up of immediate consumption formats and so offering a range from well-known brands such as Highland Spring, Strathmore and glaceau smartwater, is likely to drive sales.

“Demand from health conscious consumers has undoubtedly played a role in the growth of bottled water as shoppers look to reduce their calorie intake whilst hydrating at the same time,” Amy Burgess explains. “This trend has also had an impact on the sparkling water market, which currently makes up 15% of the total plain bottled water sector, and has enjoyed 8.6% growth over the past year.” CCEP launched its 600ml glaceau smartwater sparkling at the beginning of the year to capture this growing market.

MERCHANDISING WATER – TIPS FROM HIGHLAND SPRING Q Position key water lines in the bottom right or left hand side of the chiller Q Avoid single facings to help maintain availability Q Ensure water is always visible and always available Q Include water in your meal deal soft drinks range Q Stock large single bottles and a small range of multipacks in ambient space in larger stores

www.slrmag.co.uk

19/05/2017 10:45:30

COC0884_Oasis_2017_Sours_Trade_2017_AW1.pdf

1

11/04/2017

16:41

it’s new! it’s sour! it’s not gonna

©2017 Atlantic Industries. All rights reserved. OASIS is a registered trade mark of Atlantic Industries.

stock itself...

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• Low Sugar, Low Calorie • All Natural Flavours • No Artificial Colours • SOUR TASTE, SWEET SALES

STOCK UP NoW! #REFRESHINGSTUFF

Get in contact to find out more at connect@ccep.com or call 0808 1 000 000

19/05/2017 10:45:30

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Feature

Soft Drinks

ENERGY DRINKS

WHY? Energy is the best-selling soft drinks sector for independents according to Nielsen data, with sales being driven by a focus on innovation to ensure there’s a choice for every consumer.

KEY PRODUCTS Q Q Q Q Q

Monster Energy Ultra Citron Relentless Passion Punch Rockstar Revolt Killer Citrus Rockstar Revolt Killer Cooler Red Bull

Most recently, much of this new product development is focused on low or zero sugar variants, helping to appeal to consumers who are increasingly demanding healthier options within the energy sector. Low calorie energy drinks grew by 32% over the past year (Nielsen), making it the highest performing segment in the energy drinks sector.

“We helped retailers meet the demand for zero sugar drinks with the launch of Monster Energy Ultra, a range of three calorie free flavours, in January 2016,” says CCEP’s Amy Burgess. “Monster Energy Ultra White was joined by Ultra Sunrise. Ultra Red completed

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the trio. This increasing demand was reflected further in January 2017 with the launch of a fourth Monster Energy Ultra variant, Monster Energy Ultra Citron, further increasing the choice of sugar-free energy drinks for health-conscious consumers.”

Also accelerating into the zero sugar range is AG Barr’s energy drinks staple, Rockstar, with the launch of a category-boosting new range, Rockstar Revolt. The range comprises two of 500ml varieties, Killer Citrus and Killer Cooler, which Adrian Troy says are: “Revolutionary zero sugar energy drinks that don’t compromise on look, taste or energy boost.”

Energy drinks specialist Red Bull’s Category Development Manager, Richard Fisher, recommends retailers rationalise their range to focus on the key SKUs, providing them with the right amount of space on shelf to drive growth and maximise sales. “Currently,” he says, “both core and sizes are under-represented on shelf vs. share of sales, yet flavours are overrepresented.

“In terms of the category, product size is the first or second most important decision for a consumer, behind which brand to choose. Both size and diet are driving the category, so by offering different sizes and charging a premium accordingly, retailers can ensure they are maintaining value in the category.”

DEPOSIT RETURN SCHEME (DRS) As the soft drinks market continues to grow and change, local retailers should take heed of Scotland’s proposed Deposit Return Scheme and what it could mean for their stores. More information on this can be found in our cover story on page 14.

www.slrmag.co.uk

19/05/2017 10:45:58

Soft Drinks

Feature

PMPS ADULT SOFT DRINKS AND MIXERS

WHY? Figures from the Office of National Statistics also show 21% of adults in the UK do not drink alcohol at all, and so it is more important than ever to offer consumers a range of great-tasting, premium soft drink alternatives.

Mixers is a fast-growing sector, having enjoyed 10.4% growth over the past year, and is popular whether mixed with alcohol or served on their own.

KEY PRODUCTS Q Appletiser Q Schweppes Sparkling Juice Dinks 250ml Q Schweppes Tonic Water “As well as delivering on taste and refreshment, adult soft drinks offer consumers a sophisticated alternative to alcohol that they are happy to consume while others may be drinking beer, wine or cocktails,” says CCEP’s Amy Burgess.

Schweppes Sparkling Juice Drinks and Appletiser are now both available in a smaller 250ml can. The new format replaces the 330ml can and hopes to appeal to health-conscious consumers as it contains only 50 calories per 250ml portion. The cans are available in a 69p PMP which is likely to help consumers try the new range.

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Value for money plays a big part in consumers’ shopping decisions and price-marked packs are an ideal tool to help retailers grow their sales. IRI data show that price-marked soft drinks are delivering 26% more value than plain packs and are driving growth by 6%, making them vital for retailers to drive sales PMPs can be a particularly effective way to encourage consumers to trial new products, thanks to the perceived value they offer, and research from him! shows that 43% of shoppers claim that they’d be more likely to try a new line if it was sold in a PMP. “PMPs are provided at a price that offers a fair and competitive margin that helps to increase consumer appeal by offering a great perception of value, whilst allowing our customers to reap the full benefits of increased sales,” says CCEP’s Amy Burgess.

“While our PMPs are designed to provide an affordable single price point, we also provide plain packs across all of our formats and brands to help retailers choose the right option for them and, ultimately, it’s their choice as to which products they choose to focus on in store.”

MAY 2017 | SLR

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UTC

HE SHOOTS, DRAM FINE HE SCORES... CHALLENGE WITH SHAMPOO. UTC is indebted to his former colleague Kevin Scott, now with The Herald, who sent him on a belting story about a skint Brazilian football team who have done a deal with a local supermarket to advertise its products on their strips. Feel free to make up your own jokes here.

“DE-INTELLECTUALISING BUD’S IFFY PR INTELLECTUAL PROPERTY” STUNTS #39

UTC has a bit of a love/hate relationship with craft beer upstarts BrewDog: they love themselves, he hates them. But he will in his weaker moments admit a grudging respect for what they’ve achieved and for some some of the bolder stuff they’ve done. Last month saw a great example when BrewDog published the latest version of all of their recipes for making their beer so we can all go and replicate a wee Punk IPA at home. UTC thought this was a brilliant idea.

Not that he would actually go to the bother of doing it: Mrs UTC would kill him for filling the kitchen with the aroma of hops and yeast, no doubt.

But he bored everyone at SLR Towers for half an hour about how it was “de-intellectualising intellectual property” and said it makes all that nonsense about Irn-Bru’s secret recipe only being known by two people on earth and kept under 24 hour armed guard seem a bit daft. [Aye, whatever – Ed]

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Budweiser must have gotten itself a new PR company recently because it’s been churning out a flurry of increasingly outlandish press releases of late that have been keeping UTC just below boiling point.

The latest release outlined a plan to “create microgravity beer for when we make it to Mars”. Bud, somewhat pointlessly, wants to be the first beer on Mars.

With the help of Google, the auld yin discovered that the temperature on Mars gets down to -125 degrees Celsius so the likelihood of us getting there any time soon is about the same likelihood as there is of him buying a Bud at his local public house.

It all started innocently enough. A press release opened with a simple question: “How many whisky distilleries do you think you can you visit in a single day?”

Now, as regular readers will be only too aware, the auld yin loves a hauf. So you can imagine the admiration, tinged with not a little jealousy, that flushed UTC’s jowls on reading that a guy called Blair Bowman was planning to attempt to visit a record-breaking 60 whisky distilleries across Scotland in a single day.

Bowman happens to be the founder of World Whisky Day and is undertaking the challenge to raise money for international water development charity Just a Drop which works with communities to deliver accessible, clean, safe water, and health and sanitation programmes to where they are needed most.

The Challenge is taking place on Monday May 15 and Bowman will set off from Balblair Distillery in Ross-shire and finish around 17 hours later at Aberfeldy Distillery in Perthshire.

The auld yin spent the rest of the day staring out the window, having no doubt realised that there was in fact such a thing as a Perfect Day after all.

BUZZWORD REMOVAL TOOL

The team at SLR Towers stumbled on a new online big of software that they thought would appeal to UTC. It’s called the Buzzword Removal Tool – which is their pet name for him anyway – and it works by automatically stripping out PR buzzwords and marketing speak like revolutionary, mission-critical, nextgeneration, web-enabled, value-added, amazeballs, awesome and super-excited.

His reaction was disappointingly restrained when presented with the tool, restricting himself to a an underhis-breath dig at “how there would be nothing left on the page if it took out all the guff from every press release.”

[Miaow... – Ed]

www.slrmag.co.uk

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