SLR October 2017 by 55 North

OCTOBER 2017 | ISSUE 174

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READY TO GIVE ALDI LALDY! Edinburgh retailers Linda and Dennis Williams prepare for battle as Aldi moves in next door in January.

ALICE DOLLING

HIM analyst talks food to go trends

SCOTTISH BRANDS

Leveraging provenence to drive sales

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SGF Study Tour visits Inverclyde

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October 2017

Contents

Contents ISSUE 174

NEWS p4 p5 p6 p8 p10 p18 p20 p22

Filshill flourishes The Hillington-based wholesaler increases operating profit despite tough trading conditions. Nick Read resigns Nisa’s CEO steps down after less than three years in the hot seat. Rates reform Finance Secretary gives a broad thumbs-up to the Barclay Review’s recommendations. Mitchells closes doors Pressure from discounters puts popular Inverurie store out of business. News Extra SGF Study Tour Inverclyde’s regeneration may mean some fresh opportunities for local retailers. Product News Nisa unveils own-label fresh fish range while Golden Wonder goes home for product launch. Off-Trade Gordon’s brings some colour to Gin category with new premium pink offering. Newstrade The new Scottish Newstrade Steering Group launches a full-scale in-store implementation of the Sun Savers programme.

INSIDE BUSINESS p24 Research Digest Worldpay report reveals growing consumer demand for biometric payment technologies. p27 Innovator With the focus switching to healthier lines, ‘loose frozen’ fruit and veg could be a key point of difference. p28 Food-To-Go HIM Insight Account Analyst Alice Dolling looks at the latest trends shaping the growing F2G market. p32 SGF Golf Day Retailers, wholesalers and suppliers gather for one of the world’s oldest golf tournaments. p34 Woodlands Local SLR’s store makes some real progress after a tough few months. p38 Hotlines This month’s selection of the latest new products hitting shelves. p62 Under The Counter SLR’s resident coffin-dodger unearths a story close to his barely-beating heart. FEATURES p40 Price-marked Packs Once the scourge of independent retailing, PMPs are now a staple of the industry. p42 Scottish Brands Scottish consumers will often pay a premium to get their hands on home-grown products. p48 Christmas Madness from the mults has made Christmas challenging, but confectionery can save the festive day. p54 Biscuits Some of the key industry players reveal the latest trends in this massive category for local retailers. p58 Home Cocktails A 20% growth in sales of mixers means the growing trend for home cocktails is causing a stir. p60 Hot Drinks Retailers are spoilt for choice when it comes to high quality lines to tempt their shoppers with. ON THE COVER p14 Edinburgh Premier retailers Dennis and Linda Williams prepare to do battle with new neighbours Aldi.

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OCTOBER 2017 | SLR

News WHOLESALERS Increased profit for Filshill

New tenner The Bank of England has started issuing a new £10 note. Like the recently-introduced ﬁver, the new note is printed on a plastic polymer rather than paper. With an image on Pride and Prejudice author Jane Austen on the reverse, the new tenner is 15% smaller than the note it replaces. Retailers can ﬁnd out more, including information about the note’s key security features, online at www.thenewten.co.uk.

GroceryAid makes Paul Monk Life Patron Paul Monk, Chairman and Founder of inVentaBrand Consulting, has become a Life Patron of GroceryAid. Over the last two decades, he has organised numerous events to raise funds for GroceryAid. An active member on the President’s Fundraising Committee since 2000, Monk was previously inducted into the GroceryAid

Filshill posts increased proﬁts despite ‘challenging market’ Continued development of its core delivered wholesale business coupled with growth of its craft beers and spirits business and international division helped JW Filshill record an increased operating profit of £1.1m in the year to January 31, 2017 against £0.9m in the previous financial year despite a 0.5% fall in turnover to £142m. Trading in an independent retail trade that remains “highly competitive and challenging”, Filshill’s strong performance in its food and drink business offset the continuing decline in tobacco sales, helping to deliver a 0.6% uplift in gross profit, up 8% on 2016. Filshill, which supplies 175 KeyStore outlets across Scotland and the north of England, continued to operate tight cost controls across the business while investing in

Filshill MD, Simon Hannah key resources in IT, data analysis, marketing, and health and safety. The company’s capital investment, part of a long-term strategy, included new vehicles and extending its Hillington office complex to accommodate an expanding workforce and training facilities. Managing Director Simon Hannah said: “Our market is evolving with

further changes to tobacco sales regulations likely to drive the same trend for coming years, forcing convenience operators to focus more heavily on growth areas such as local sourcing, food to go, and fresh and chilled foods. “We have ramped up investment in our workforce to enable us to engage more closely with our KeyStore customers and manage the principal risk of losing customers to other groups by offering strong promotions and wide-ranging advice and support, including store layouts/ planograms, consumer leaﬂets, digital social media and Epos till installations.” The group’s international division, which exports craft beer, craft spirits and other grocery products to the rest of the world, Asia-Pacific in particular, continued to grow.

Hall of Fame to mark 10 years of supporting the industry charity.

Landmark’s Big Night In Landmark Wholesale’s latest

SNACKS Retailers on board ambassadorial programme

WHOLESALERS Key appointment for Today’s

KP reunites SnackPartners

New Today’s Group Managing Director named

KP’s SnacKPartners programme has invited ambassadors to take part in its second forum of 2017. Held in Dunstable, the event featured a range of retailers and speakers, including SGF President Dennis Williams. Along with an in-depth look at the latest sector developments, the forum focused on building a two-way dialogue with retailers, while also shedding light on recent changes to KP Snacks’ own offering. Discussions from key figures at KP Snacks covered the acquisition of Butterkist, product performance by channel and guidance around maximising sales in Impulse. The SnacKPartners forum is designed to champion retailers first and foremost: by giving them a voice, an exclusive look at upcoming NPD and providing impartial category advice on the snacking market. As well as Dennis, its latest meeting featured leading independent and symbol group retailers from across the country including: Sunder Sandher, Raaj Chandarana, Avtar Sidhu, Raj Aggarwal, Dee Sedani, Kishor Patel and Steve Bassett. The next SnacKPartners Ambassador Forum is due to take place in December 2017.

Today’s Group has announced the appointment of Darren Goldney as its new Managing Director, effective from November 13, 2017. He replaces John Schofield, who returns to his role as Today’s Finance Director after two years as interim MD. Speaking of a “key appointment” for the Group, a Today’s spokesperson said: “In a changing wholesale environment, Darren brings experience and a track record of success through collaboration, from his tenure with both large and smaller organisations, serving all customer types.” Goldney started his career at Coca Cola Enterprises as a graduate trainee, working his way up to Impulse Sales Director before joining Whitworths as Managing Director for brands. He most recently held the role of Commercial Director for Palmer and Harvey.

Big Night In promotion features a dozen products ideal for a night in front of the TV. Lifestyle Express retailers can earn a further £30 in cashback vouchers if they purchase all 12. The promotion includes Coca-Cola, Captain Morgan Spiced Rum, Doritos, McCoy’s, Carling, Fosters, Strongbow, Dairy Milk, Pepsi Max, Gallo Family Vineyards and Nescafé Gold.

Usdaw gives B&M retail staff voice Shopworkers’ trade union Usdaw has secured a new recognition agreement with discounter B&M Bargains, which allows it to recruit and organise the company’s retail staff. Usdaw already represents B&M’s distribution workers, and this new arrangement also takes in the company’s drivers. Paddy Lillis, Usdaw Deputy General Secretary, welcomed B&M’s “grown-up” attitude towards industrial relations.

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News SYMBOL GROUPS Nisa boss steps down after less than three years

Nisa CEO Nick Read resigns amid continuing uncertainty Nick Read, Nisa’s Chief Executive Officer, resigned with immediate effect on September 29. No reason was given for his departure, although pressure had been mounting on the CEO following the recent revelation that 15 senior Nisa figures had been promised hefty “retention payments” at a time when Member rebates were being withheld. The news comes just as details of the Co-op’s proposed buyout of Nisa are about to be put before Members. It follows the loss of a major contract to supply McColl’s stores, which greatly reduced Nisa’s buying power. The Nisa Board has now started a succession planning process, the result of which will be announced in due course. Read was unpopular with many Nisa Members, but it appears he is not the sole source of discontent

Former Nisa CEO, Nick Read among the rank and file. It has been reported that a group of retailers have now engaged a lawyer in a bid to remove Chairman Peter Hartley. Read joined Nisa in December 2014 with a remit to stabilise and set out a future strategic direction for the Company and its Members. Following an operating loss of £3m in 2015 – its first ever – Nisa reported EBITDA of £7.3m the following year,

marking the largest annual EBITDA swing in the company’s 40-year history. Nisa Chairman Peter Hartley said: “We are grateful to Nick for his leadership during a challenging period for Nisa and the wider convenience sector. Nick and his team have brought much needed stability to Nisa, and he will leave the business in a significantly improved financial position.” Nick Read added: “My time at Nisa has been both challenging and eventful, and I am proud of our collective success in turning the business round. The return to profitable growth was key to creating the confidence that enabled a sustainable business model for the benefit of all Nisa members. I am grateful for all the support I have received from colleagues and Members.”

Second product recall for macb this year Cott Beverages has recalled all of its macb flavoured still waters. Following the withdrawal of two Strawberry & Kiwi flavour SKUs in June, a “small number” of complaints were made about other flavours and bottle sizes. All packs with best before dates of July 18, August 18 and September 18 were subsequently pulled from shelves as a precautionary measure.

Hector’s house of biscuits Pladis has renamed its new specialist baking R&D centre in High Wycombe after Lord Hector Laing, the long-time Chairman of the snacking company’s forerunner United Biscuits. Laing was also the grandson of Alexander Grant, who ﬁrst produced the Digestive biscuit at McVitie’s. The Hector Laing Centre is one of three R&D facilities pladis has invested in over the last 18 month as part of its global expansion strategy

LEGISLATION Government reveals its programme for Scotland

Mixed bag for retailers in government’s new plans The Scottish Government published ‘A Nation With Ambition’ last month, laying out its plan to shape the future of the country. There were several points of interest for local retailers, not least the government’s commitment to “urgently” take forward the Barclay Review Recommendations on NonDomestic Rates. The headline recommendation to adopt a three-year rating cycle has been eagerly anticipated and has widespread industry support. Welcoming the move, Ewan MacDonald-Russell, Head of Policy for the Scottish Retail Consortium said it was “crucial” to delivering a more ﬂexible rates system. The programme also heralded some unwelcome, if not unexpected, developments. A deposit return scheme (DRS) for plastic drinks bottles and cans was confirmed, although whether it will apply to small retailers is undecided. The industry stands broadly against DRS and SGF Chief Executive Pete Cheema said any scheme would be “too costly, too disruptive and too expensive” while the SRC’s MacDonald-Russell was also dismissive. “Whilst superficially appealing, the reality is deposit

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return vending will hit customers with an upfront charge pushing up the cost of living; whilst also potentially costing retailers £41 million in implementation costs. This is a costly measure which will do little to increase recycling.” Despite the ongoing reformulation of ‘unhealthy’ products and the inroads made with clearer and more informative labelling, the poor state of the nation’s diet continues to be addressed by the government, with measures planned to limit the marketing of products high in fat, sugar and salt. There are also plans to open up the debate about the best use of Holyrood’s taxation powers. Given the current fragile state of consumer confidence, any moves to raise the basic rate could put the brakes on an already stalling economy, so a more rounded discussion on income tax Is welcome. With DRS implementation likely to increase costs for retailers and also hit shoppers in the pocket, attention will now shift to Finance Secretary Derek Mackay, to see if he can produce a Scottish Budget that delivers economic growth.

to become the fastest-growing company in its sector.

Rake progresses as Shaw leaves Red Bull Andy Shaw, Red Bull UK’s Managing Director is leaving the business after 14 years, effective at the end of the year. Jamie Rake will take over the leadership of the energy drink brand. He has been with Red Bull for over 10 years, working for the last ﬁve years within the European management team as Area Commercial Manager.

New Three Mobile top up Three has released a new £35 mobile top up. PayPoint expects this to be very popular with Pay as you Go customers as the tariff includes ‘all-you-can-eat’ data, 3,000 minutes and 3,000 texts. The EE £10 SIM now offers customers twice the data (2GB) and unlimited texts. Retailers can earn up to £7.50 commission per SIM.

OCTOBER 2017 | SLR

News BUSINESS COSTS Barclay Review gets government approval

Shoplifting on the increase Shoplifting in Scotland has risen by more than 8% over the last ﬁve years, according to the Scottish Government’s ‘Recorded Crime in Scotland 2016-17’ report. The number of recorded incidents grew from 26,449 to 28,650 over the period. With 28,424 incidents recorded in 2015-16, there has been an increase of 1% over the past year. In 2016, research conducted by the SRC found that the average shop theft cost the retailer involved £325.

Tilda’s UN campaign Tilda has launched ‘Mums Helping Mums’, a new on-pack promotion in partnership with the United Nations World Food Programme. Mums Helping Mums enables

Finance Secretary embraces rates reform The Scottish Government will seek to implement the “vast majority” of the Barclay Review’s 30 recommendations for overhauling the country’s Finance Secretary business rates system. Derek Mackay Addressing the Scottish Parliament (September 12), Finance Secretary Derek Mackay said the changes would lead to “a rates system that is fairer, more responsive and geared for growth”. Mackay said that, in line with the review’s recommendation, revaluations of premises will in future be carried out every three years rather than every five years, and would be based on data from the previous year rather than from two years before. Barclay also recommended reform of the Large Business Rates Supplement, which affects premises with a rateable value of over £51,000. This will now be brought in line with the rest of the UK and reduced to

1.3p by the end of the current parliament, “should it become affordable”. While less relevant to a lot of smaller business owners, the move will still reduce retailers’ rates bills by £12m annually. A Business Growth Accelerator will be realised from April 1, 2018, giving tenants of new build non-residential properties their first year rates-free. The Scottish Retail Consortium welcomed the Finance Secretary’s response to the Barclay Review, with Director, David Lonsdale, commenting: “We’re pleased to see Scottish Ministers take forward a number of welcome steps to modernise the creaking rates system not least with plans for more frequent revaluations and reducing by half the time between valuations and them coming into force. “The commitment to bring the Large Business Rates Supplement back into parity with the rest of the UK is most welcome, albeit the timetable appears less ambitious than that put forward by Barclay who said it should happen by 2020 rather than the end of the Parliament.”

consumers to provide nutritional support to new and expectant mums in Bangladesh – a country where 36% of children under ﬁve are malnourished.

Tesco launches new smartphone payment app Tesco has unveiled Tesco Pay+, a new mobile payments app. Customers can now automatically collect Clubcard points, link multiple payment cards and pay for shopping up to the value of £250 with a single swipe of their smartphone. The app replaces the mult’s PayQwiq digital wallet, which has amassed more than a quarter of a million users since its 2015 debut. Tesco says visit frequency of Clubcard customers using Pay+ has increased by 20%.

WHOLESALERS Quarterly growth for Booker

Booker keeps delivering Booker Group had another “good” Q2, according to its trading update for the 12 weeks to September 8. Group sales rose by 1.1% on the same period last year with non-tobacco sales rising by 5.8%. Like-for-like non-tobacco sales grew by 6.0%. Tobacco sales continued to be badly hit by changes in legislation, down 9.4% like-for-like. Booker said its Premier fascia continued to grow, and that both Budgens and Londis were performing well. Favourable working capital movements resulted in a strong net cash position, with around £165m in the bank. Because of its proposed merger with Tesco, Booker is in an offer period as defined in the Takeover Panel’s Code. Therefore, it will not be making forward-

looking statements for the duration of the offer period. Charles Wilson, Booker’s Chief Executive, said: “Booker Group continues to make good progress with like-for-like non-tobacco sales up 6.0%. Our plans to focus, drive and broaden Booker Group are on track. The competition review of the planned merger with Tesco plc is progressing. We continue to help our retail, catering and small business customers prosper through improving our choice, prices and service.” Steve Fox, MD for Retail, added: “Our retail business continues to progress well. We had a good summer period and I’m looking forward to continuing to help our customers make more and save more in the run-up to Christmas.”

Stoats opens Edinburgh factory Oats company Stoats has opened a new factory in the south of Edinburgh as part of a major expansion plan. The 22,000sq ft facility at Bilston Glen Industrial Estate in Loanhead will become the new headquarters for 40 staff, initially

FORECOURTS

O’Loughlin joins Motor Fuel Group Forecourt operator Motor Fuel Group (MFG) has announced the appointment of Michael O’Loughlin as its new Managing Director for acquisitions & business development. Retail and foodto-go are playing a growing part in MFG’s plans and O’Loughlin is focused on having an active role in the continued growth of these areas.

Golf raises £2k for Moira Fund The Annual Moira Golf Day organised by Britvic’s John Leslie to raise money for the Moira Fund, set up after the tragic murder of Moira Jones, has raised over £2,000 this year, supported by SLR.

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News ECONOMIC CLIMATE Inverurie retailers shut up shop

Carbon neutral evian factory starts production Mineral water brand evian has

Mitchells to close doors Long established local retailing business Mitchells, The Dairy Shop and Tearoom in lnverurie, will shut its doors for the last time at the end of the month (October 26). Owners Patrick Mitchell, Judy Whyte and Keith Whyte said a challenging trading environment in the area over recent years, coupled with changing consumer shopping habits and rising overheads meant the business could no longer successfully compete with discount grocers and online stores. In 2016, Mitchells was shortlisted for an SLR Reward in the highly-competitive Fresh & Chilled category. The owners thanked customers, suppliers and staff for their support and custom.

opened the doors to a new stateof-the-art facility. The �280m plant took six years to build and is the largest food production site in France to achieve carbon neutral status. The size of 13 football pitches, it holds 10 new multiformat linear production lines.

Local produce on menu for industry leaders Scotland Food & Drink has hosted its ﬁrst Leadership Forum Dinner of 2017/18, where discussions in Aberdeen focused on provenance and the opportunity for local food producers. Key industry ﬁgures reached a consensus that improvements need to be made in getting more local produce into stores.

McColl’s co-founder resigns James Lancaster, McColl’s Group co-founder and NonExecutive Director, has stepped down from the Board with immediate effect. Lancaster, who co-founded the business over 40 years ago, said now was the “right time” to go.

Costcutter cuts cost of doing business Costcutter has launched a new

AWARDS Scottish success at Imperial event

Edinburgh retailer lights up ignite awards There was Scottish success at Imperial Tobacco’s third annual ignite awards, where Mumtaz Ali of Mace South Bridge in Edinburgh triumphed in the Most Improved category. The event was held last month in London’s Intercontinental O2 hotel. The evening commenced with a celebration of some of Imperial’s most iconic brands, where visitors were able to interact with products and compete for prizes. The ceremony was hosted by comedian and Radio 4 broadcaster Dominic Holland, and the entertainment also included Scalextric racing, safe cracking and a mini-festival. The night culminated with the

crowning of the ignite Champion, Dhruv Patel from KS Newsagents, London. Sophie Hogg, Head of Sales & Marketing at Imperial, said: “The ignite awards ceremony is an ideal way for us to recognise and celebrate the achievements of the very best retailers, and enables us to consolidate our relationships with the independent trade.”

PAYMENT SERVICES Confusion over tablet installation

Payzone engineer visits Unexpected visits from Payzone engineers seeking to install the company’s new tablet have been causing concern among retailers. At a meeting with Payzone, NFRN representatives clarified that an engineer who “happens to be in the area” has no right to install a new terminal if the retailer has not agreed an appointment. Retailers may ask the engineer to leave their store. Payzone has also been contacting retailers by telephone to schedule engineer visits. Retailers who have not yet received a new 28-day notice and terms & conditions can refuse an engineer appointment. Further guidance around the matter can be found on the NFRN’s website at goo.gl/Pxy4Wh.

Business Services programme to help its independent store

PROMOTIONS Cross-category campaign from Costcutter

owners reduce day-to-day

Costcutter serves up Meal for Tonight

running costs. The programme offers access to discounted rates across a range of business essentials such as HR, banking, e-learning, telecoms, insurance and ﬁnancing.

Retail industry starts to grow again in Q2 The Scottish economy grew by 0.1% from April to June, according to the Scottish Government’s Gross Domestic Product Quarter 2 2017 ﬁgures. This was the second successive quarter of growth. The retail industry resumed growth by 0.6% over the same period, after

FUNDRAISING

Eiffel-ly good effort Intrepid industry colleagues have raised over £42,000 for GroceryAid by cycling from London to Paris. The sum raised is enough to provide 140 respite breaks for those with caring responsibilities.

Costcutter Supermarkets Group has launched a new cross-category ‘Meal for Tonight’ promotion. With a choice of the UK’s most popular Italian, Indian and Chinese dishes to cook at home, Meal For Tonight allows shoppers to pick their favourite meat, carb and sauce and create easy meals in under 30 minutes, all for £5 or less. The campaign is designed to drive basket spend through link purchases across fresh and ambient categories, with retailers supported through merchandising advice and POS, including shelf barkers, SEL backers and shelf stripping to make the mix ‘n’ match offer easily identifiable. “Offering mission-based solutions is crucial to making life easier for shoppers and driving basket spend,” said Mike Owen, Costcutter Supermarkets Group Category Director for Fresh and Frozen. “Meal for Tonight is designed to answer this need and will particularly appeal to Busy Impulsers and Younger Tonighters. “To really drive basket spend, we’ve created a strong bank of POS for our retailers to use along with merchandising tips, to help create real stand out.”

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SGF Study Tour

NewsExtra FULL REVIEW OF SGF ANNUAL GOLF DAY P32 INDUSTRY EVENTS Annual study tour visits the west coast

Convenience Matters with the SGF Social Media. It’s almost impossible to have a conversation without mentioning. It seems to have become one of the most important ways in which people and businesses interact with each other in the twenty-first century. We can see that retailers are using Facebook very effectively to highlight their stores, focus on promotions and interact with customers. At SGF much of our social media work is done through Twitter – we find that it’s a good way of getting messages and opinion across to a big audience. There are about 20 million Twitter users in the UK. There is a surprisingly young demographic, too: 64% of users are 18–29, 57% 30–49, and 33% 50–61. The more affluent social groups are also over-represented on Twitter, with 62% of users in the £48K plus household income bracket. Twitter has become a very useful form of ‘soft lobbying’: almost every MSP has a very active Twitter account. The Scottish Parliament has its own Twitter feed as do all the Committees. If you want to make a point to an MSP, tagging them into a 140-character tweet can be a lot less time-consuming and have a much more immediate impact than a letter or even an email. Retailers must start engaging more with politicians to get their opinions across about the issues impacting on their businesses. A good place to start is to follow SGF. You’ll get a good feeling for the issues, the key conversations and who to follow. Keep it short, concise and use visuals (avoid abuse and harassment). It’s a quick way to get your point across. Follow us @ ScotGrocersFed.

SLR | OCTOBER 2017

SGF study tour ﬁnds Inverclyde is back open for business This year’s SGF Study Tour visited Inverclyde for an education on the recent regeneration of the hard-hit region and the opportunities for local retailers.

Recent SGF Study Tours have earned a reputation for the unconventional and last month’s latest Tour was no exception with a group of retailers, wholesalers and suppliers heading to the west coast to learn about the regeneration of Inverclyde and its three towns: Greenock, Gourock and Port Glasgow. SLR joined the trip once more and enjoyed a fascinating, informative and very busy day comprising presentations, site visits, factory visits, walking tours and a guided bus tour. The region has suffered a torrid time in recent decades following the collapse of many of its key industries like shipbuilding then the subsequent failure of the tech zone it had focused its regeneration efforts upon. When flagship ‘tenant’ IBM pulled out, it left mass unemployment and economic chaos in its wake. The study tour gave attendees the chance to see the efforts being made to regenerate the entire region – and with some very important successes. The passion and enthusiasm of the team at Riverside Inverclyde, the body tasked with co-ordinating the regeneration, was striking. CEO Fiona Maguire welcomed the group as it disembarked at Gourock railway station and gave a tour of the entirely rebuilt transport hub and marina, a development that has kick-started a raft of knockon investment in the immediate surroundings. A walking tour of the town centre then offered a first-hand look at how the high street has been rebuilt before it was down to Greenock for a tour of the Golden Casket factory, conducted by CEO

Crawford Rae. A presentation on the history of the company was followed by a walk around the factory where the famous Buchanans and Millions brands, among others, are made. A true family business, the business employs around 200 staff, making it one of the largest employers in the region. A visit to the waterside Beacon Arts Centre then allowed for some presentations by several local entrepreneurs, chaired by Riverside Inverclyde Head of Business Investment Andrew Bowman. The speakers included Graeme Galbraith, Marina Manager at the flourishing James Watt Dock Marina who explained the massively positive economic impact the marina has on the local area, and Martin McAdam, CEO of Ardgowan Distillery. The Distillery has yet to be built and is unlikely to start producing saleable whisky for at least eight or nine years but the multi-million-pound project will involve the creation of a very large development complete with distillery, warehousing, retail space, restaurants and more. . The day was rounded off with a guided bus tour of sites of interest around the region which included Ocean Terminal; Kip Marina and Power Station; the site of Ardgowan Distillery; Spango Valley development site; and Drumfrochar Road development site, before a well-earned refreshment at the spectacularly-refurbished Custom House. SGF Chief Executive Pete Cheema told SLR: “The energy and passion that is going into the redevelopment of Inverclyde is fascinating to see and I think all delegates enjoyed the experience.” www.slrmag.co.uk

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IT’S ABOUT TIME TO GIVE ALDI LALDY... EDITORIAL

There are few scenarios more nightmarish for a local retailer than an Aldi moving in next door, and in the case of Edinburgh Premier retailers Dennis and Linda Williams, the discounter is set to move in almost literally next door in January. The couple have had a long time to prepare for the arrival of their unwelcome neighbour and the official opening date has been pushed back on several occasions, the latest delay at least giving them one last crack at Christmas before their world gets turned upside down. Anyone that knows SGF President Dennis, however, knows that he doesn’t do pessimism and despair. From day one he has remained positive, upbeat and optimistic – and it’s that sort of attitude that will go a long way to ensuring a long-term future for a store that’s been happily and loyally serving the local community for over three decades. But it will take more than optimism to secure the store’s future and it has been absolutely fascinating to witness how Dennis and Linda have gone about preparing for battle. It has also been enormously heartening to see the vast amount of support that Booker’s Premier fascia has dedicated to working with Dennis and Linda as D-Day looms. From Booker CEO Charles Wilson down, the fascia group’s commitment to the store has been little short of astonishing. In Dennis’s own words, “they literally couldn’t have done anything more to help us”, from strategic planning to tactical support. Working with Premier Brand Director Martyn Parkinson, Dennis and Linda drafted a battle plan to focus on everything they could do that Aldi couldn’t. There is, as experience shows, little point in trying to tackle Aldi head on at their own game – so the key has been to focus on delivering a great range of products and services that Aldi can’t or won’t match, as well as customer service on a level that, certainly in my experience, Aldi don’t even attempt to offer. A brand new Premier Deli hot food-to-go section was unveiled last month along with a new coffee machine, as was an improved tobacco and vaping offer, areas all untouched by Aldi. Big brands at great value prices in all categories (including on the impressive new spirits gantry) will also feature heavily over coming months, as they always do at Premier, as well as exceptional pricing on staples like sugar, bread and milk, all geared towards driving footfall and offering reasons to visit that Aldi can’t match. Let’s be honest though – and both Dennis and Linda acknowledge this fact – it’s going to a be tough few months at the start of 2018, but the hard work of the last year or so means that they can satisfy themselves with the knowledge that there’s not much more they could have done – and with the backing of Booker they have built a robust, modern business that is virtually unrecognisable from just two to three years ago. I certainly have everything crossed for a positive result and I’m sure all independent retailers across Scotland will wish Dennis and Linda the very best of luck in proving that the arrival of a supermarket or discounter doesn’t necessarily mean the end of the world. Give them laldy, Dennis and Linda. We’re all with you.

ANTONY BEGLEY, PUBLISHING DIRECTOR

SLR | OCTOBER 2017

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

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Doing Battle With Aldi

Cover Story

GETTING READY TO GIVE ALDI LALDY! Edinburgh Premier retailers Dennis and Linda Williams have been putting the finishing touches to their store as they prepared to do battle with German discounting giant Aldi when the chain moves in next door in January. BY ANTONY BEGLEY

igh profile Edinburgh Premier retailers Dennis and Linda Williams have had plenty of time to come to terms with the idea that Aldi is moving in almost literally next door, but with the opening of the new store having been delayed on several occasions, the couple have been putting the time to good use, crafting a detailed strategy document they hope will secure the long-term future of their business. “We learned about this a long time ago so we’ve had time to lick our wounds then pick ourselves up and get busy putting together a strategy we think will help make sure we

SLR | OCTOBER 2017

have a business long into the future,” says Dennis. An eternal optimist, as anyone who knows him will be aware, Dennis’s positivity and contagious optimism will go a long way towards making sure that his vision of a sustainable business will play out in reality – but he knows that the next few months will be anxious ones for him and Linda. “I’m a born optimist,” he says, “so I’ve always thought we can get through this but don’t get me wrong, we’re worried about it. We’ve had plenty of sleepless nights, but all we can do is try to remain positive and do all that we can before D-Day.” D-Day now looks like it will be in January next year, after the opening was once more pushed back a few months. This at least gives the store one more Christmas to cash in on and hopefully build up some reserves before Aldi opens its doors. But as much as Dennis is a glass-half-full kind of guy, he’s been in retail long enough to know that it will take more than a positive attitude to get the store through what promises to be a tumultuous period. “I’ve been in retail for 30 years,” he says. “We’ve been serving this same community faithfully and loyally for over three decades so I just hope that some of that loyalty is repaid by our customers when we really need it. But Linda and I are long enough in the tooth to know that we needed more than just passion and positivity – we realised a long time ago we needed a concrete plan of action for how we try to cope with a discounter moving in next door.”

FOCUS ON USPS That plan of action centred around a very simple yet very logical goal: bringing in as many products and services to the store that the local community wouldn’t be able to find in Aldi. Linda explains: “We knew immediately that we couldn’t hope to compete with Aldi head on in the areas where they do things well, and we accept completely that Aldi does a lot of things well. They haven’t been this successful for nothing. But we knew that there were quite a lot of chinks in their armour if you looked hard enough for them – and believe me, we looked as hard as anyone has.” www.slrmag.co.uk

Doing Battle With Aldi

Cover Story

The couple soon found that they were not alone in the battle however, with Booker and their Premier fascia brand taking an exceptionally active interest in developments. “When this whole issue first arose, one of the first people to contact us was Booker CEO Charles Wilson and that gave us so much inspiration,” says Dennis. “It says so much about the company that a man like Charles, with all the responsibilities he has, takes the time to get in touch personally to offer some ideas and advice and just general support.” It soon became clear that this was no token gesture with Wilson personally visiting the store, followed by visits from Booker Retail Managing Director Steve Fox and Premier Brand Director Martyn Parkinson. “Honestly, the support we’ve had from Booker and Premier has blown us both away,” says Dennis. “We never expected to get anything like the support we’ve had from them and we’ll never forget that. When you’re facing tough times, you need all the powerful friends you can get and we got all the help we could have wanted and more.” Dennis points out that the ‘find as many USPs as you can’ strategy actually came from a hand-written note from Wilson, who told them on his visit to the store that the key was to offer shoppers things Aldi couldn’t give them.

NEW DAWN The result of that strategy and countless hours of work, along with some very considerable investment, is a store that is virtually unrecognisable from just a couple of years ago. The final piece in the jigsaw – the Premier Deli – was fitted only last month at a cost of over £10,000 and allows the store to offer an extensive range of hot and cold foods, cakes, pastries, pies, filled rolls, sandwiches and more. “We’re very proud of the new Deli,” explains Linda. “It’s something Aldi can’t touch us on and we’ll have a good few months to bed it in and get our customers used to it before Aldi arrives. Only a few weeks in the Deli has already added hundreds of pounds of extra revenue per week onto the takings and that’s only set to grow.” Also core to the strategy was a focus on www.slrmag.co.uk

Above: The new Premier Deli, a brand that may appear in other Premier stores down the line. Left: The new Deli adds another important USP for the store in the forthcoming tussle with Aldi.

OCTOBER 2017 | SLR

Doing Battle With Aldi

Cover Story

“We’re under no illusions – this will be a huge challenge for us, but we’re as ready as we can be and we’re going to put everything we have into this fight.” big brands at great value, something that the might of Premier is able to provide in spades. “We know Aldi is own-label driven but we believe many of our shoppers want to buy big brands, especially in key categories like confectionery, crisps, soft drinks, spirits and so on,” says Dennis. “So if we can focus on delivering those big brands at great value prices we think we can compete. The Premier promotional programme is exceptional so we’ll just have to work harder to communicate the great value on global brands that we offer here in our store.” With that in mind, the store has done away with its tobacco gantry and replaced it with

an extended range of spirits in modern black shelving, making what the couple believe is much better use of prime sales space. A new vaping range has also been added to complement the existing tobacco range, once more offering a USP or two over Aldi, while the Lottery terminal also provides reasons to visit on at least four days a week. Local and national sourcing is to the fore with locally-sourced produce, bakery lines, butchery and more. There’s even a new Scottish brands promotional end to appeal to the patriot in every customer.

SERVICE WITH A SMILE

Big brands at great value prices (above) and top quality fresh fruit and produce (left) gives shoppers more reasons to choose Broadway over Aldi.

SLR | OCTOBER 2017

And all of that is before we get to the real point of difference: customer service. “We all know what the customer service is like in Aldi, so we just hope that the new store keeps up that trend,” laughs Linda. “Having been here for decades, we know every single customer personally and have a great rapport with them. We go above and beyond for our shoppers every day and we believe that this will ensure that we still have a role to play for them long into the future.” There’s no question that an uncertain future lies ahead for Dennis and Linda but they can reasonably say that they have done all in their power to prepare as best they can – and retailers across Scotland and the rest of the UK will undoubtedly be keeping one eye on how the situation unfolds because if Broadway Convenience Store can survive the storm, the template they used will be hugely valuable for every other retailer who finds themselves in a similar scenario in the future. There’s also little question that retailers across the UK, regardless of affiliation, will be wishing Dennis and Linda the very best of luck in the battle they face. “We’ve had nothing but good luck wishes from everyone we meet in the industry and that means a lot to us,” concludes Dennis. “We’re under no illusions – this will be a huge challenge for us, but we’re as ready as we can be and we’re going to put everything we have into this fight.” For the sake of the entire local retailing industry, we wish you the very best of luck and the greatest success. Now go and give Aldi laldy. www.slrmag.co.uk

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News

Products

SOFT DRINKS

Oasis gives away what’s left of its marketing budget Coca-Cola European Partners (CCEP) has revealed a new on-pack promotion across its Oasis brand, giving consumers a chance to win a share of the juice drink’s remaining 2017 marketing budget. The light-hearted promotion runs across all ﬂavour variants between September 25 and November 5, offering consumers the chance to win between £17.61 and £661.48 of the brand’s £34,672 marketing budget. One lucky winner will also receive a bonus prize of precisely £1,515.58. Promotional packs carry a unique code that consumers submit online to be entered into the prize draw. The limited edition 500ml plain and price-marked promotional packs are supported by the brand’s annual £3m marketing campaign, which includes outof-home and digital advertising as well as in-store POS. Simon Harrison, Customer Marketing Director GB at CCEP, said: “The prospect of winning part of our marketing budget will encourage both existing and new consumers to buy the much-loved juice drink brand, helping wholesalers and retailers to maximise their sales.”

ProductNews SOAK UP SALES WITH HOT DRINKS P60 OWN-LABEL Nisa tries to hook healthy eaters

Nisa launches ﬁrst ever own-label fresh ﬁsh range

Nisa has launched its first range of own-label fresh fish this month as part of its Heritage range, to help its retailers to make the most of the healthy eating and ‘meal for tonight’ sales opportunities.

The range comprises four new lines including Salmon Fillets, Salmon Fillets with Sweet Chilli, Scottish Smoked Salmon and Kiln Roast Salmon Flakes. Nisa Trading Controller Ben Purvis commented: “We are delighted to launch our first ever Heritage fresh fish lines which we hope will deliver an uplift in sales and basket spend for our members whilst providing consumers with a versatile, simple and nutritious meal solution from their local convenience store. “These Heritage salmon products are sourced from specially selected farms to ensure traceability and provenance and have been cured using premium ingredients and maturation processes, ensuring a real quality product and taste.” Tracey Redfearn, Heritage Brand Manager, added: “We are really pleased to launch these new lines as salmon is a staple ingredient that can be used in so many delicious meals, whether as part of a tasty breakfast, healthy lunch or main evening meal.”

CHOCOLATE CONFECTIONERY

No room for Hepburn on Galaxy’s Thought Train Mars Chocolate has launched a new advert for its Galaxy brand, bringing down the curtain on four years of its Audrey Hepburn ‘Moon River’ commercial. ‘Thought Train’ features the award-winning Shakespearean actress and poet Jade Anouka, and encourages people to put aside distractions and choose pleasure.

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Products

News

Hamlyns takes a Forest Holiday Hamlyns of Scotland has partnered with Forest Holidays on a new promotional package including an on-pack holiday

SNACKS Crisp producer returns to its Scottish roots

Golden Wonder unwraps Chippies at brand’s Edinburgh birthplace

competition, which will feature

Golden Wonder has unveiled its latest new product, Golden Wonder Chippies. Chippies is available now in 45g (RSP 69p) and 100g (RSP £1) bags in three flavours: Chip Shop Curry; Salt & Vinegar and Ready Salted. The brand, which originated in Stockbridge 70 years ago, held the launch event in the town’s Scotmid store. Speaking at Tuesday’s launch (September 12), Matt Smith, Marketing Director for Golden Wonder, explained: “We are very excited to be officially launching Chippies at Golden Wonder’s birthplace today. Golden Wonder is a well-loved and iconic brand that started in Stockbridge 70 years ago and Chippies are the next chapter in our story. With their punchy, chip-shop inspired flavours, Chippies really deliver the fully-flavoured taste that

at Forest Holiday’s two Scottish

on its Scottish Porridge Oats and Scottish Oatmeal from early October right through the winter. In-cabin sampling of the brand’s Instant Porridge Pots was held locations in September.

KitKat Chunky New York Cheesecake arrives Nestlé has unveiled the latest product to join its KitKat Chunky range: New York Cheesecake. The new bar is available now, and has an RSP of 65p. It will be supported by a £1.2m media campaign, which is expected to be seen by over 40 million people. This includes poster advertising, a Snapchat

Golden Wonder is famous for.” Stephen Brown, Scotmid’s local Sourcing Manager, added: “Scotmid, like Golden Wonder, also started in Edinburgh before expanding further afield and it’s brilliant to be able to celebrate the brand’s heritage. Generations of Scots have grown up eating Golden Wonder crisps and it is a truly iconic brand.”

Smith added: “We have designed our packaging to evoke fond associations with the seaside and chip shops, with waves made up of swirling words representing Golden Wonder’s story, including ‘Stockbridge’, ‘William Alexander’ and ‘70 years ago’. This packaging, which is being used nationwide, celebrates our Scottish roots.”

lens and social media activity.

Sturridge signs for Nurishment Footballer Daniel Sturridge has teamed up with nutritionally enriched milk drink Nurishment as its ﬁrst-ever brand ambassador. The three-

SNACKS Walkers teams up with online streaming service

See a movie with Walkers

year deal kicked-off with the

Walkers is tapping into family sharing occasions by offering movies to shoppers with its newest on-pack promotion. Available across Walkers Sharing Bags, Bugles and Mix Ups , the Movie Nights promotion runs until December 31. Each promotional pack contains a unique code and shoppers will need two codes to claim a movie. Walkers have teamed up with Rakuten TV to provide a choice of nearly 3,000 films which can be streamed. Thomas Barkholt, Marketing Director at PepsiCo, commented: “Research shows that over 50% of crisp snacking occasions happen while people are watching TV at

eventually reach over two

home. As these autumnal nights draw in and the weather gets a little colder, we hope this latest campaign will appeal to those families choosing to stay in. Our latest on-pack promotion capitalises on this trend and gives families the opportunity to sit and enjoy time together whilst watching one of the great movies available. “Sharing bags are responsible for one fifth of all savoury snacking occasions within the UK and we have huge confidence that this promotion will drive sales within the sharing sector.” The new promotion is supported by TV, digital and in-store advertising from early October.

injury-prone striker starring in a bus campaign that will million consumers. Long-time Nurishment fan Sturridge said: “Strawberry’s my favourite ﬂavour.”

Too Good To Be Gluten Free pie wins prize Too Good To Be Gluten Free has won the Free From Bakery Product of the Year Award at this year’s Baking Industry Awards for its Too Good to be Gluten Free Pork Pie. Since launch, the pie has contributed 40% of the brand’s growth. It uses high quality British pork, seasoned and encased in a hot water crust pastry and retails at £2.

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OCTOBER 2017 | SLR

News

Off-Trade

Jura’s One And All praises island community Jura Single Malt Whisky’s new

Off-TradeNews

limited-edition expression, named One And All, was created in celebration of Jura’s community and the team of distillery workers who craft the whisky. The 20-year-old single malt assemblage (51% abv – cask strength), which is natural colour and non-chill ﬁltered, is available now with an RSP of £120.

Fourteen years in a week William Grant & Sons has released The Balvenie Peat Week Aged 14 Years. Since 2002, the Balvenie distillery has dedicated one week each year, named Peat Week, to using only peated barley in its whisky production. The new expression is the first of these peated malts to come to market. Ian Millar, Prestige Whiskies Specialist at William Grant, said: “There’s nothing quite like peat to change the flavour profile of a whisky.” The Balvenie Peat Week retails at £60 RSP and is available now.

Benromach Distillery unveils new wood ﬁnish

TIME TO STOCK UP ON CHRISTMAS CONFECTIONERY P48 GIN Gordon’s launches into vibrant sub-sector

Gordon’s thinks pink... Gordon’s London Dry Gin is out to shake up the blossoming Gin category with the launch of its new Premium Pink Distilled Gin, available now. Tapping into the growing Pink Gin sub-sector, Gordon’s Premium Pink combines the sweetness of raspberries and strawberries with the tang of redcurrant, using only natural flavours. The blush-coloured liquid is served up in a tall, narrow bottle, which Gordon’s describes as “providing a contemporary, premium feel and distinctive on shelf presence”. Annalisa Tedeschi, Head of Gordon’s at Diageo GB, commented: “With the launch of Gordon’s Pink, we’re entering a vibrant sub-sector. In Spain, Pink Gin is a growing trend which accounts for 36% of value growth within the total Gin category, demonstrating a huge

opportunity for success that UK retailers can emulate. “With proven popularity, the strength of the well-established Gordon’s brand name and a delicious, refreshing taste, we’re confident that Gordon’s Pink will prove successful with consumers and help to catapult Pink Gin into the UK mainstream.”

From September, Gordon’s Premium Pink will be supported a £2.1m marketing investment, including a targeted out-of-home, PR, digital and social media activity, as part of its ‘Shall We…’ campaign. Gordon’s Premium Pink is available now at an RSP of £16.50 (70cl).

The Benromach Distillery Company has added to its Wood Finish portfolio with the Benromach Chateau Cissac Wood Finish 2009 (abv 45%). The single malt owes its flavour profile to a final finishing period in hand-selected wine casks from the French wine region of Haut-Médoc near Bordeaux. It is available now with an RSP of £39.75.

Winter Storm coming from Glenfiddich Glenfiddich has extended its Experimental Series of single malts with the launch of Winter Storm, a limited-edition expression finished in French oak ice wine casks. The result is “a short, crisp premium liquid imbued with a unique layer of sweetness and complexity”. The whisky is available from early

BEER Tax victory backfires on brewing giant

Carling strength row gives Molson Coors hangover Molson Coors has been left with a public relations headache after it revealed to a tax tribunal that its Carling lager wasn’t brewed to the advertised strength. The revelation came when HMRC pursued the brewing giant for £50m, which it claimed Carling owed in underpaid tax. The sum was calculated based on Carling being brewed to 4% abv, as is displayed on packs. Molson Coors argued that it had paid the correct amount of duty, as Carling is in fact produced to a strength of only 3.7%. The tribunal agreed and the brewer dodged a £50m bullet.

However, it was soon drawing fire over what was widely viewed as deception on its part. Headlines like ‘Carling is actually weaker than advertised’ soon had Molson Coors saying the media had “oversimplified a complex and technical topic”. As EU rules say drinks labelled 4% abv may vary by as much as ±0.5%, Molson Coors had indeed technically done nothing wrong. Rival brewers were dismissive of Molson Coors’ actions. Heineken said: “When we sell a 4% beer, we brew the beer to be 4%, we label it as 4% and we pay beer duty on 4%.”

WINE Nisa looks to emulate March event

Nisa’s Wine Festival returns Nisa’s second Wine Festival of 2017 was held from September 11 until October 1. It followed a similar promotion in March, which saw a 66% in sales of featured wines. The event was supported by themed POS, including a gondola end kit featuring tasting notes and ‘perfect with…’ food pairing notes. Wines on promotion during the festival included the full range of Heritage 75cl wines at £3.99 each, I Heart Marlborough Sauvignon Blanc 75cl at £6.99 and selected 75cl Echo Falls and Blossom Hill wines at £5.49 each.

October, with an RSP of £199. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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Off-Trade

News

Landmark gets into the festive spirits Landmark Wholesale has announced an upcoming promotion on its Prince Consort STOUT Guinness reveals latest ‘Made of More’ ad

Stout outta Compton A new Guinness advertising campaign, portraying the story of ‘The Compton Cowboys’, has been launched. The new release is the next chapter of the ‘Made of More’ series, which champions real people who have shown unexpected character to enrich the world around them. ‘The Compton Cowboys’ tells the story of a group of men living in Compton, Los Angeles, a city often known for gangs and violence. The cowboys rescue horses from slaughterhouse auctions and nurse them back to health on Richlands Farm. This area, in the middle of LA, was given over to agriculture by stipulation when Compton City was formed. Duncan Elliott, Guinness Marketing Director said: “We are proud to celebrate the ‘Compton Cowboys’ in our new campaign, a group of people who have made a bold and unexpected choice to live a different life. Through their love and devotion to their horses and each other, they are a source of inspiration and a cause for hope within their local community.” The ad is supported by digital content on YouTube, Facebook, Instagram and Snapchat.

range of spirits, aimed at retailers stocking up for the festive season. Bestselling Prince Consort own-brand spirits Imperial Vodka, Extra Smooth Scotch Whisky and Brandy will be available at a reduced price. The promotion runs from October 23 to November 11, 2017 exclusively in Landmark member depots. As a bonus, Lifestyle Express retailers can make further savings if they buy all three SKUs.

Arbikie takes top gin prize Arbikie Distilling was crowned Scottish Gin Distillery of the Year at the inaugural Scottish Gin Awards held last month in Glasgow. It also collected the bronze medal in the Cask Gin taste competition. Edinburgh Gin picked up ﬁve medals and the Glasgow Distillery, makers of Makar Gin, collected a brace of golds.

Premium rosé revealed Jacob’s Creek has launched a new French-inspired premium Rosé. Le Petit Rosé (RSP £8 is

CIDER New Zealand brand bids to save kiwi

Old Mout hatches Kiwi Wild Show

Old Mout Cider has teamed up with TV conservationists Chris Packham and Michaela Strachan for The Kiwi Wild Show, an online bid to help save New Zealand’s endangered national bird. The show forms part of a major campaign for the cider which also sees the donation of a third of the profit from special bottles

and packs of Old Mout to New Zealand charity, ‘Kiwis for kiwi.’ The former presenters of BBC’s Really Wild Show are releasing the show to highlight the plight of New Zealand’s national emblem, whose population has declined by 99% over the past 80 years. The campaign features instore POS, bottle neck collars and limited-edition gift packs with a glass gift with purchase. For every promotional bottle or pack sold in the off-trade, Old Mout will donate to the Kiwis for kiwi charity. In addition, for every Old Mout bought, shoppers will receive a game card to enter a prize draw that will give them the chance to win a trip for two to New Zealand.

BEER

Argentinian beer is here Wine and beer importer Morgenrot has launched Argentina’s most famous brew, Quilmes Lager (4.9% abv), in the UK in new American-sized 355ml cans. Cans are available in cases of 24 x 355ml, costing approximately £24.70. John Critchley, Morgenrot’s Commercial Director, said: “Quilmes is an Argentinian icon, so we’re thrilled to be able to extend our relationship with the brewery and launch this new format to the UK market.”

available now. Although made from Australian-grown grapes, Pernod Ricard said the new wine “reﬂects the savoury style of Rosé that is common in the Southern French countryside while offering the vibrancy of fruit character that Jacob’s Creek is renowned for”. The launch is supported by digital and social media activity.

Pioneering Golden Scottish Rum released Strathearn Distillery has launched Dunedin Rum, thought to be the first Golden Rum produced in Scotland. Bottled at 43% abv and with an RSP of £34.99 (70cl), Dunedin is said to have “an oaky-finish with a complex blend of sweet vanilla and spicy flavours which gives way to burnt sugar and caramel”.

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OCTOBER 2017 | SLR

News

Newstrade

MAGAZINES

Centaur sells home interest division to Future Centaur Media, a B2B information and media group, has sold its Home Interest division to Future. Founded in 1981, Centaur Media is a UK-listed provider of B2B information providing a portfolio of business information, events and marketing products and services. In line with its long-term strategy to become a pure focused B2B company, Centaur Media has disposed of its Home Interest division to Future, a UK-listed specialist media group. The Home Interest division comprises three brands including Homebuilding and Renovating, Real Home and Period Living. Across these brands it delivers seven annual exhibitions held across the UK, three monthly print publications and three websites. The Homebuilding and Renovating brand is the leading brand in its sector. The management team of the Home Interest division will move across with the business. Back ofﬁce responsibilities will be transferred to Future in due course. Andria Vidler, CEO at Centaur Media, commented: “This successful disposal is in line with Centaur’s strategy of becoming a pure B2B business. While Home Interest has been strengthened as part of Centaur, now is the right time for it to fulﬁl its potential under new ownership. We wish the management team every success.” TRADING CARDS

New Match Attax range goes live The latest set of trading cards from The Match Attax brand went into circulation on September 28. The new Premier League collection is likely to be popular, offering fresh sales opportunities for local retailers in Scotland. The company is advising retailers to site the new cards prominently to ensure high trial and repeat purchase. This is particularly likely to be the case for retailers in close proximity to primary and secondary schools across the country.

News& Magazines DO MORE WITH SCOTTISH BRANDS P42 CATEGORY LEADERSHIP New newstrade Group launches into first key initative

STEERING GROUP AND CUSTOMERS TO CASH IN ON SUN SAVERS When the Scottish Newstrade Steering Group was set up recently as a joint initiative between News Scotland and SLR, the key principle behind the Group’s activities was that actions speak louder than words. That’s why the Group is already progressing with a nationwide implementation of the highlylucrative Sun Savers programme. Sun Savers is the richest loyalty programme in the newstrade and rewards customers by giving them £5 for every 28 copies of The Scottish Sun that they buy. It’s that simple. The programme is app-based so shoppers can quickly download the app to their smartphones and start collecting. All they have to do is scan the barcode every time they buy a paper and when they reach 28 copies they can either collect the cash or carry on saving – and all for doing nothing more than buying their favourite paper every day. For retailers, the PICK UP THE programme offers several concrete benefits: it encourages shoppers to buy the newspaper more

regularly, it drives footfall to the store, it drives up incremental purchases and it creates loyalty to both the store and the paper. Everybody wins. Not only that, retailers receive an incentive for signing up customers and to help them do that, a range of highquality POS is available to create excitement in-store and communicate just how easy it is to get started. Group member Saleem Sadiq of Spar Renfrew commented: “The plans for the Group are quite exciting and it’s great to see some real activity happening in the category and driving some interest and some value back into news. Sun Savers is a great example and I can see it working really well for both retailer and customer if we can jointly communicate the initiative in-store. The high-quality POS kit certainly helps.” The Scottish Newstrade Steering Group was due to meet just as SLR was going to press and in that meeting the plans for the PAPER TODAY next set of activity is due to be agreed with full input from members of the Group.

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NEWSPAPERS Increased cover charges mean improved cash margins for retailers

SUNDAY TIMES AND IWEEKEND PRICE RISES IMPLEMENTED Both The Sunday Times and the new-look iweekend have increased their cover charge over the last month. The cover price of The Sunday Times increased from £2.50 to £2.70, which is forecast to deliver an incremental £6.86m in cash through retailer tills per year. The margin will remain at 21%

which means retailers will make 56.7p per copy, an additional 4.2p on every copy sold. This price rise represents the first for The Sunday Times since September 2012. Meanwhile, the revamped iweekend saw its cover price rise from 60p to 80p with each copy now generating 17.2p profit for retailers.

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Newstrade

News

The Insight: Home News Delivery As part of a new series of articles focusing on the Scottish newstrade, we offer some quick insights into home news delivery and whay it could be a great opportunity to open up new revnue streams for your store. A new category initiative called DeliverMyNewspaper which has been launched by a group of some of the leading publishers in the UK is a quick and easy way to get involved.

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OCTOBER 2017 | SLR

Inside Business

Research Digest

SHOPPERS GIVE THUMBS-UP TO IN-STORE BIOMETRICS

Local retailers will face growing consumer pressure to deploy new technology that breaks down barriers between physical and online retail environments, says new survey.

ocal retailers should embrace new technology like biometric payment, claims a new report from global payments firm Worldpay. The survey reveals the pressure retailers face in meeting the demands of digital shoppers and highlights the growth of new payment technologies that allow customers to authorise payments with parts of their body, rather than through cash or card. Just under two thirds (63%) of the 2,500 consumers surveyed said they want to be able to use a biometric scan to authorise payments in-store. James Frost, UK CMO, Worldpay, said: “Today’s digitallydriven consumers want the way

they shop to be consistent across every channel, including how they identify themselves when making a payment.” The research suggests consumers increasingly expect the same type of experience instore as they receive from online retailers like Amazon who are setting the benchmark for speed, simplicity and convenience. Today’s smartphone-centric consumers still value the human touch, yet modern technology has made today’s consumer far less tolerant of delays. Key findings include: Don’t put a cost on convenience: Consumers say they want stores to offer options like click and collect in-store.

Just don’t make them pay for the privilege. Seventy-six per cent of consumers will abandon a purchase if the store tries to charge extra for click and collect. I’d rather pay the robot: Older shoppers like to pay a person, but younger consumers would rather payments were automated to speed things up. Get personal, but don’t get pushy: Consumers are receptive to targeted offers on their mobile phone whilst they’re browsing in store. Just don’t overcommunicate. Respondents say one message is enough, more than this starts to get irritating. Add value on the shop floor: Technologies like mobile point of sale devices, which help cut

queues by allowing sales staff to take payments directly on the shop floor from a tablet device, are popular among consumers. But just a third (31%) have seen these devices in action. Beware the promiscuousness of the older shopper: Contrary to what one might expect, over 35s are the least loyal when it comes to who they shop with. Younger consumers tend to stay loyal to a brand once they’ve found one they can trust. Frost added: “Today’s consumers are arguably more demanding of retailers than at any time in the past. Stores need to find a way to reconnect with consumers and that means deploying new technologies.”

ORGANIC SALES TO HIT £2.2BN THIS YEAR

NETMUMS REPORT REVEALS PARENTS STRUGGLE TO FIND LOW/NO SUGAR LINES IN-STORE

The organic market continues to grow, up 6.3% in the 52 weeks to August 13 (Kantar Worldpanel), and the market is expected to exceed £2.2bn in sales by year end – its highest yet. The top three sales categories – fresh produce, dairy and grocery – have driven the growth, with grocery alone adding a 39% increase in sales over the last four years (Nielsen Scantrack, 52 weeks to 1 July, 2017). Kantar’s data showed that while London is still the largest sales region, strong growth has been coming from elsewhere too. Dan Rusga, Marketing Director at Yeo Valley, the UK’s largest organic brand, said: “Consumer attitudes are changing, with the importance of quality products and traceability at the forefront of producer, brand and retailer strategies. It’s time to put organic stories front and centre, bring awareness of organic to consumers and show retailers they can count on sales as a result. But organic isn’t a badge. Consumers easily see through inauthenticity. Delivering products that continue to meet consumer needs and values, which match our own, gives us a unique opportunity to keep the organic market growing.”

Research by parenting website Netmums and Sugarwise has revealed that 80% of parents regularly search for low/no sugar products for their family – yet 30% of parents can’t find these products in-store. Additionally, three-quarters (75%) of parents said they would be willing to spend more on low sugar/good taste foods if they were available while 38% of parents said they are unable to find low/no sugar lunchbox snacks. Among the other findings, some 17% of parents said they have been unable to find low/no sugar breakfast cereal, 15% had been unable to find low/no sugar desserts, 17% had been unable to find low/no sugar pasta sauce, and 12% had been unable to find low/ no sugar baking ingredients. Despite the lack of product availability, the Netmums/Sugarwise survey also revealed many parents would be willing to spend more on low sugar foods if they were available, with 40% saying they would be happy to pay more for healthy option foods as long as the products taste good. When asked “Which foods would you like to see low sugar versions of?”, parents cited in

SLR | OCTOBER 2017

order of preference: Q Sweet biscuits Q Sweetened or flavoured yogurt Q Sweet breakfast cereal Q Sweet cakes/pastries Q Jams and sweet spreads Q Puddings Q Chocolate Q Ice cream Q Dairy desserts Q Confectionery Netmums receives nine million unique visitors every month. Its Editor-in-chief, Anne-Marie O’Leary, said: “Netmums users are increasingly worried about the levels of sugar consumption by children yet our survey shows despite consumer demand for more low sugar formulations and the willingness to pay more if needed for low sugar options, retailers are failing to make these products available on shelf.” Rend Platings, CEO of Sugarwise, added: “We’d like all retailers and manufacturers, to seize this opportunity. We’d like all retailers to make lower sugar products a priority and give parents what they are looking for.” www.slrmag.co.uk

Research Digest

SCOTTISH SHOPPERS COULD PAY ‘A THIRD MORE’ FOR EVERYDAY FOOD ITEMS IN NO-DEAL BREXIT New analysis by the SRC/BRC spells out the potential cost to shoppers of leaving the EU without a tariff-free trade deal. Over three-quarters of the food the UK imports comes from the EU and without reaching an agreement on trade, most of these goods will be subject to new tariffs. As a result, the average cost of food imported by retailers from the EU would increase by 22%, according to new analysis by the Scottish Retail Consortium and British Retail Consortium based on The Tariff Roadmap. Further analysis, based on the proportion of European food that retailers sell and the impact of new tariffs, demonstrates how much typical products could be affected. The impact will be considerable if UK producers react to higher import prices and push their prices up to align with foreign products. For consumers, new tariffs will mean higher prices. The SRC/BRC has estimated potential price increases for a number of everyday food items, should goods from the EU face WTO tariffs. The price of cheese, for instance, could rise by more than 30%, or for tomatoes nearly 20%, based on import and sales data gathered from BRC members and tariff rate data from the International Trade Centre. Andrew Opie, Director of Food Policy at

the BRC, said: “Price increases of this scale to everyday food items will add a huge burden to hard pressed consumers whose finances are already under increasing strain from inflationary pressures. “Even at the lower end of the risk, price rises of 5% to 9% dwarf the increase from inflation that shoppers are currently paying on food goods (with the BRC’s latest Shop Price Index reporting food inflation of 1.3%). And the tariffs are particularly high on meat and dairy products, meaning that products such as beef and cheese would be hardest hit.” David Lonsdale, Director of the SRC, added: “These are stark findings and show that Scottish households potentially face a leap in prices for everyday essentials like if the UK doesn’t secure a lasting tariff-free trade deal with the EU after Brexit. Retailers are straining to keep down prices but unwanted new import tariffs would be difficult to absorb and may mean higher prices on shop shelves in Scotland. This presents a challenge too for Scottish consumers, already seeing family finances stretched due to rising inflation, higher council tax and pension contributions.”

RESEARCH HIGHLIGHTS TRUST ISSUES AMONG UK SHOPPERS

he latest industry report from independent shopper research agency Shoppercentrichas examined how shoppers feel about the retailers and brands they purchase from. Carried out across 1048 UK shoppers aged 18+, the research found that 46% of UK shoppers fall into the ‘cynical bracket’ when it comes to trusting brands and retailers, rating them poorly in relation to putting consumer interests first (in comparison to other institutions and businesses). Some 73% said they “want to feel good about the retailers they use, and that they want the money they spend to go to companies they trust” while women were more generally more positive towards all institutions measured but even more likely to feel independents and local retailers put consumer interests first. The key factors that irritated shoppers were: Q Promotions that aren’t as good as they

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sound (59%) Q Brands that reduce their size or quality but keep the same price (58%) Q Retailers and brands whose changes negatively impact the shoppers, but lets them profit (55%) Q Products that end up being smaller in reality than a pack suggests (52%) Q Retailers/brands who claim to be ethical but have dodgy practices (49%) Other key irritants cited by shoppers included retailers/brands who are trying to be manipulative, short sell by/best buy dates, unclear or misleading contents labels and retailers who promise good service, but don’t have the staff when shoppers need them. The consequences include sShoppers ‘stopping buying a brand or using a company’ because they were uncomfortable with something they did or stood for.

Inside Business

A ‘FIFTH’ OF PEOPLE BLAME RETAILERS FOR FOOD FRAUD

The NFU’s Mutual’s Food Fraud Report 2017, published last month, reveals that a fifth of people (20%) are most likely to blame the retailer for cases of what come to be known as ‘food fraud’. The UK food and drink industry could be losing up to £12bn annually to fraud, with illicit produce entering the food chain through means including falsified or inaccurate documentation, and redirection of waste products back into the supply chain or re-dating of stock. The least trusted product types are processed foods (35%), red meat (18%) and supplements (15%). The study also found that takeaways are the least trusted type of food outlet (42%) followed by online (21%). Some 16% of resondents rated convenience stores as their least trusted outlet. Food assurance stamps have been found to have a very strong influence on purchase decisions, with 67% of people using them to help choose the products they buy, in-store with the Fair Trade stamp proving the most influential. As Britain prepares to leave the European Union, the new research by the retail insurer reveals that only 12% of people have confidence in the European food chain and just 7% in the global chain, fewer than one in every 10 people. One-third of consumers (33%) are less trusting of products and retailers than they were five years ago, compared with only 9% whose trust has increased. A further 33% believe that food crime is likely to increase in the future. Hearing about high profile cases of fraudulent food in the media, such as the horse meat scandal in 2013, is the most common cause of reduced confidence in nearly half of consumers (46%). Commenting on the report, Frank Woods, Retail Sector Specialist at NFU Mutual, said: “There has never been a more important time for tackling food fraud and getting regulation right as we plan to leave the European Union, but Government proposals for where we will get our food from are already under tough scrutiny from industry and consumers alike with concerns over quality. “Local retailers in Scotland could be impacted as producers are under immense pressure to offset price rises caused by the weakened value of sterling and higher import costs, squeezing already tight budgets and resources and potentially cornering them into using cheaper global suppliers that may be more vulnerable to fraud.” OCTOBER 2017 | SLR

Loose Frozen Produce | Innovator

Inside Business

INNOVATOR: LOOSE FROZEN PRODUCE

As retailers focus on fresher, healthier lines in-store, an innovative ‘loose frozen’ veg and fruit solution could be a great way to another point of difference and a healthier option for consumers.

CV: FIELD FARE WHAT IS IT? It’s frozen, loose produce IS IT A NEW IDEA? It’s new to convenience retailing, but Field Fare have been selling to other independent retailers like garden centres and delis for over 40 years. WHAT’S THE RANGE LIKE? There are over 80 products in the frozen, loose produce range. DO THEY SELL ANYTHING ELSE? Yes – the total range is over 150 products, all frozen, and includes ready meals, pies, pastries and sundries. WHO ARE THEY SUPPLYING? The customer base extends to over 400 independent retail outlets from Stornoway to Cornwall. IS IT EXPENSIVE? No – Field Fare say its typically 30% cheaper than the fresh equivalent. WHAT’S THE MINIMUM DROP? 25 cases, made up from any of the 150+ range. HOW MUCH SPACE DO I NEED? Ideally, room for two (branded) chest freezers. DO I NEED ANYTHING ELSE? A set of scales. WHERE DO I FIND OUT MORE? www.ﬁeld-fare.com

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s the marketplace gets ever tougher for Scotland’s local retailers who are looking for new points of difference to bring customers through the door and as shopper trends continue to shift towards healthier, more convenient foods, a great solution from a company called Field Fare might be just the ticket for at least some retailers: loose frozen veg. Customers simply help themselves to scoops full of frozen, loose vegetables (and fruit) taking as much or as little as they like from branded freezers. No packaging or food waste, no additives or preservatives and, on average, costing 30% cheaper than a fresh equivalent. The idea itself isn’t new; Field Fare began 40 years ago but has until recently been concentrating primarily on garden centres, farm shops, delis and butchers. “The one thing we have always focused on, however, has been on working with independent retail

businesses”, MD Karen Deans tells SLR. “Minimum packaging and waste, maximum nutrient, vitamin and mineral lock-in, dramatically reduced transport costs with the flexibility for customers to economically take as little or as much as required.” The company’s loose range now stands at over 80 products – from sweet potato chips to cinnamon swirls – and is stocked in over 400 independent businesses across the UK, including new clients in Stornoway and Dornoch. It also helps that, according to Harris Interactive data from April this year, some 60% of consumers now consider frozen to be “as good as fresh”.

The idea isn’t suitable for all; retailers really need to have the room for two chest freezers to offer the breadth of range required to meet shoppers’ needs and to meet the minimum drop requirement, 25 cases per order. There is no minimum order frequency however and retailers can add products from the rest of Field Fare’s offering to meet the drop requirement; that’s everything from a ready meal range to selection of pies, sweet and savoury pastries and more. What’s more, the company also supports a charity that redistributes surplus food to 20 UK-wide regional centres and on to partner charities.

OCTOBER 2017 | SLR

Inside Business

Food-To-Go Trends

TAPPING INTO CURRENT F2G TRENDS

HIM Insight Account Analyst Alice Dolling offers SLR readers some fascinating observations into the latest trends shaping the burgeoning food-to-go landscape. BY ALICE DOLLING

SLR | OCTOBER 2017

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Food-To-Go Trends

n 2017 shoppers are becoming increasingly fast-paced – wanting what they want instantaneously, and more so than ever they want it on the move. It is therefore hardly surprising that food-to-go is expected to grow yet further this year and beyond. However, as the food-to-go marketplace competition intensifies we are seeing the convenience sector struggling to keep up with this growth, with HIM predicting the value of the foodto-go mission in convenience to grow at a rate of only 0.9% over the next three years. Fierce competition comes from food-to-go specialists. Food-to-go specialists are growing in-store numbers, with retailers such as Leon and Pret expanding outside of London. They always keep one step ahead of the game and adapt their range and store experience to tap into the latest consumer trends – in 2017 they have adapted to incorporate the continuous evolution of health (including the rise in veganism, vegetarianism, free from diets and flexitarians) and the growing demand for personalisation and digital interaction. C-stores must keep up with and not shy away from these trends to compete, whilst also achieving the basics by understanding shoppers’ decisions, motivations and importances. Firstly, stores will need to understand how to attract food-to-go footfall. The main product driving food-to-go shoppers into c-stores is chilled food-togo, whereas the main product driving them into food-to-go specialists is hot food-to-go. Retailers and operators must make sure information on these categories is clearly communicated to shoppers in the surrounding area. Promotions will be effective in enticing shoppers and hence driving shopper traffic into store and affecting overall food-to-go sales. Promotions can be a point of difference from food-to-go specialists for c-stores because the specialists rarely offer promotions. When in-store, food-to-go shoppers’ purchasing behaviour varies throughout the day. For example, hot food-to-go trade is greatest in the morning and therefore retailers must ensure availability of this sub-category during this period. Hot food-to-go will be a key category in driving up c-store food-to-go shopper value, and a key category to help convenience stores compete against food-togo specialists. Currently, in convenience stores hot food-to-go penetration overindexes in symbol and forecourt retailers; an extended range will be needed in these sub-channels. However, there is a clear opportunity to grow penetration within managed and supermarket convenience. To do this, it will be vital to understand what these shoppers’ product preferences and importances are in order to adapt ranges to suit them. Managed and supermarket convenience shoppers are more demanding; both over-index greatly in wanting more premium and healthy options in-store. C-stores can take inspiration from food-to-go specialists to achieve this. We have already seen convenience stores take best practices from food-to-go specialists and create

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Inside Business

full hot food-to-go solutions for their shoppers that adhere to demanding customer needs. One example is BYO Burgers, an Aryzta solution being used by Spar Gourmet in Dublin. It takes into consideration shoppers’ want for a personalised and digital service by allowing shoppers to heavily customise their meal (burger or pizza) by using tablets in-store. They also offer a home delivery service appeasing the new shopper who expects fast consumption and fast door-to-door delivery, an expectation since the introduction of Deliveroo and Just Eat. Hot food-to-go offers opportunities to upsell to maximise sales and shopper value. This is achieved by locating hot food-to-go besides other products the category is usually purchased with. For example, cross-merchandising the category beside hot drinksto-go. Not only will this ease the shoppers’ shop, but it will also create additional purchases if the hot food-to-go shopper is tempted by a complementary item in the same location. Hot drinks-to-go should also be a focus area for convenience store retailers. Retailers are currently under immense pressure – they are facing an influx of government legislation, inflationary pressures and a continuing price threat from the discounters, just to name a few – and as a result their margins are being squeezed. Hot drinks-to-go offers a healthy margin for retailers. In addition to the margin benefit hot drinks bring, they also drive footfall – almost three-fifths of hot drink to go shoppers say it is the main reason they are coming into store. Hot drinks-to-go are often involved in meal deals; we have seen combo deals from the likes of Aryzta and Seattle’s Best who do a coffee and donut deal in Mace and Spar stores in Ireland. These suppliers have done a great job in communicating the offer to shoppers via digital screens on the coffee machines. Meal deals are not limited to hot drink-to-go combos and currently play a big role in food-to-go in c-stores and food-to-go specialists. Over one-third of food-to-go specialist shoppers are purchasing a meal deal and one in five food-to-go shoppers are purchasing one when it is offered, although this differs by convenience sub-channel. Getting a meal deal offer right will therefore be very important. Both convenience store and food-to-go specialist shoppers believe meal deal offers can be improved. A lack of healthy options in meal deals is especially upsetting convenience store shoppers – these will be imperative in food-to-go development. In c-stores the meal deal rule of three works: nearly two-thirds think that three items make the perfect lunchtime meal deal, whereas shoppers in food-to-go specialists are happier with smaller meal deals. In addition to a main item, the top categories shoppers want to see in meal deals differ slightly for convenience stores and food-to-go specialists; the top item in convenience stores is crisps & snacks, whereas in food-to-go specialists it is soft drinks. Suppliers within these categories will be best placed as one of the two or three meal deal items. It is, however, worth considering the future of these traditional three-piece meal deals. In the OCTOBER 2017 | SLR

Inside Business

Food-To-Go Trends

FAST FACTS TO GO Q 30% of Scottish shoppers intend to buy a meal deal compared to the total market average of 35% Q Scottish shoppers are prepared to pay up to £4.25 for a meal deal, compared to the average shopper who is prepared to spend up to £4.29 Q Scottish FTG shoppers are purchasing 3.3 items compared to the average shopper who is only purchasing 2.1 items Q The Scottish FTG shopper is older than the average FTG shopper (46 vs. 39)

advanced Irish food-to-go market we do not see shoppers being tied to a three item lunch deal, and c-stores do not push these types of promotions like they do in many UK retailers. Could this be the way food-to-go is going? In 2016 we saw Sainsbury’s largely scale back their meal deal offer, removing premium sandwiches, subs, pasta pots, cakes, and more in order to regain some margin. As margins continue to be squeezed in convenience we might see other retailers follow suit. However, in the UK this has not largely happened yet and we know that shoppers’ barriers to purchasing more food-to-go is not primarily led by lack of meal deals. Fourteen per cent of food-to-go c-store shoppers believe a lack of inspiring products prevents them from purchasing more food-to-go than they currently do. Retailers should therefore offer an inspirational range. One way could be advertising a product alongside a suggestion of an occasion during which they could consume it – a picnic, for instance. Messaging around the top occasions will create high levels of engagement, however, the occasions that food-to-go shoppers are tapping into will vary on a category by category basis. Although, a theme across all categories is that food-to-go shoppers are purchasing for instant consumption, therefore products meant to be consumed chilled (e.g. soft drinks) need to be located in the chiller, not main shelf, and smaller non-take home pack formats will be required. Messaging in-store cannot stop there. Retailers and food-to-go specialists must appreciate shoppers’ purchase decision hierarchies and create communication that facilitates this decision-making process. For 30

SLR | OCTOBER 2017

instance, brand and price play large roles in food-to-go shoppers’ decision choices in both convenience stores and food-to-go specialists, and therefore these two things must be clearly communicated on POS. Brand plays the largest role in savoury pastry, sandwiches and instore bakery categories. Another big importance for shoppers is health. Nearly two fifths of foodto-go c-store shoppers believe that a range of healthy options and alternatives is important to them in-store. Even though this is lower than the percentage of shoppers in food-to-go specialists, it is still substantial. What healthy means to shoppers is constantly evolving and, unsurprisingly, we have seen food-to-go specialists keeping up. In terms of free from products, coco porridge normally affords the same shelf space as regular porridge in outlets such as Pret. For meat-free options, Veggie Prets are spreading and all Pret a Mangers now have vegetarian fridges. Brands have also taken on healthy eating trends: Poke (now mainstream, being offered on Abokado), ‘adaptogens’ and seaweed & golden lattes. Additionally, the in-store experience is of paramount importance for food-to-go shoppers. The food-to-go shopper has a higher basket spend, has a higher basket size, visits more often and is more likely to recommend a store if they have a positive instore experience, so therefore efforts need to be made to improve it. Firstly, start with the basics: key in-store experience factors are not being met for food-to-go shoppers, such as ease of shop and cleanliness of store, and therefore these need working on first. Locating food-to-go where customers want it will ease their shopping experience. Over

one-third of c-store shoppers believe the main food-to-go fixture should be a chiller at the front of the store. It is also worth considering that the food-to-go c-store shopper spends more when there is a separate till/area for customers to purchase their food-to-go. Four out of the six top factors that food-togo c-store shoppers think could improve their in-store experience are to do with speed of service. Suppliers should create an education piece to encourage retailers to implement time saving technologies. Once the basics are met, suppliers, retailers and food-to-go specialist operators can build the in-store experience to offer a fuller experience for shoppers. Technology is a great way to enhance a shoppers’ in-store experience. Food-to-go shoppers are more likely than your average c-store shopper to want to see offers direct on their mobile device, while younger shoppers are more likely to want to engage through tech. Suppliers can work with retailers to use beacon or Wi-Fi technology to function with either their own apps or pre-existing apps such as Big DL and Zapper. We have seen retailers use technology well to tap into the current personalisation consumer trend, for example, Vita Mojo in London allows shoppers to personalise their hot food order either on their app, on their website or on tablets in-store. It allows shoppers to adjust food quantities and ingredients to suit their preferences and health needs. Innovation like this, which offers a relevant and full range and experience, is the direction that convenience stores will want to take in order to flourish within food-to-go and compete against specialist outlets and the new kids on the block. www.slrmag.co.uk

Inside Business

SGF Golf Day 2017

KINGS OF THE SWINGERS The SGF Golf Day, one of the oldest golf tournaments in the world, saw retailers, wholesalers and suppliers from across the industry gather in St Andrews last month. SLR was there too. BY ANTONY BEGLEY

ow something of an institution, the annual SGF Golf Day is technically one of the oldest golf tournaments of any description in the world, something SGF Chief Executive Pete Cheema was keen to point out to those who gathered for this year’s event at the magnificent Duke’s Course in St Andrews. Another packed house saw retailers, wholesalers, suppliers and influencers dust off their clubs and don rain-jackets for another wet but otherwise thoroughly enjoyable day on a beautiful course.

SLR | OCTOBER 2017

The skills on display were once more perhaps best described as variable with some teams racking up remarkable Stableford points tallies while others were more intent on enjoying a good day out and an expensable day off work. Kindly supported by an array of sponsors, the event provided a great opportunity for networking and the chance for industry colleagues and friends to catch up over a bacon buttie, a round of golf and a beer or two at dinner. Remarkably, four players managed to beat

the pro at hole three with One Stop Franchise Marketing Manager Brad Snape being adjudged to have done so with most aplomb, thanks to a chip in from off the green that Rory McIlroy would have been proud of. “It was another excellent day and I don’t think the rain dampened spirits at all,” says Pete Cheema. “It was a really enjoyable day and SGF is proud to be keeping this important competition moving forward every year. It’s a rare opportunity for the industry to catch up in a relaxed setting. Well done to all and I look forward to seeing everyone next year.” www.slrmag.co.uk

SGF Golf Day 2017

Inside Business

THE WINNERS TEAM EVENTS

INDIVIDUAL EVENTS

MCCURRACH CUP

CALEDONIAN CUP

Team: JTI Players: Q Ryan McCaffery Q Ashley Tendy Q Adam Slobom Q Craig Gallacher

(Best Scratch score by an individual) Q John Mitchell

FINGERPOST CUP Team: Maxxium Players: Q Keith Black Q Jamie Buchanan Q Sandy Mitchell Q John Mitchell

HOWDEN TROPHY (Best Stableford score by an individual) Q Billy Bath

NEAREST THE PIN (Hole 16) Q Douglas Russell

LONGEST DRIVE (Hole 14) Q Ashley Tandy

BEAT THE PRO (Hole 3) Q Brad Snape Q Gary Bonnington Q Alan Turnbull Q Fraser Johnston

LADIES CHAMPION Q Maureen Fraser

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OCTOBER 2017 | SLR

WOODLANDSlocal

Inside Business

Woodlands Local | Monthly Update

Is that light we see at the end of the tunnel?

After another tough period at Woodlands Local with major staffing issues, we are finally back on track and have seen some very encouraging signs over the last month with increases in footfall and sales, as well as major progress in other areas. BY ANTONY BEGLEY

SLR | OCTOBER 2017

here are those months in life when you really wonder why you ever got into retail in the first place – and then, every once in a while, there are months when everything seems to be going your way. They don’t happen all that often, it has to be said, but when they do it’s a wonderful feeling. Just when it seemed like we couldn’t buy a bit of good luck, we’ve had a month where we saw some long-term plans come together, we saw the team gel like never before and we received a few unexpected bits of good news into the bargain. Mind you, it’s not like it happened by accident. The team has been busting a gut recently to get Woodlands Local moving in the right direction and gathering some www.slrmag.co.uk

Inside Business

Monthly Update | Woodlands Local

much-needed momentum. The harder you work, the luckier you get, and all that. We’re certainly not getting ahead of ourselves and we know we have quite a few bumps in the road ahead of us but it somehow seems easier to find a plan for the tough times ahead when life is going a little smoother. In terms of the big picture, we’ve seen increased footfall, basket spend and turnover in the last month which may or may not be down to factors outwith our control but we are convinced that all the work we’ve been doing has at least contributed to this undoubted progress. We’re not talking big leaps here – only increases of 5% to 10% or so, but it’s movement in the right direction, on top of a run of several months where the store has generally stabilised for the first time in perhaps 18 months. So it’s small shoots, but I can’t tell you how pleased we are to see them.

BETTER BUYING At the heart of this improvement has been much better and more controlled buying by our Manager Arlene. Our buying of standard stock has been much tighter and we’ve managed to clear out all of the excess from our various stock areas. This has obviously helped reduce outgoings as well as increase takings – with the added benefit of much tidier and clearer storage areas. We’ve also improved our promotional buying, tending to go larger on lines we know we can sell in volume, rather than buying smaller quantities of a far wider range of promo lines. This also lets us make more of a ‘wow’ on the promotional ends as we are devoting entire shelves to single lines or groups of related lines. The impact on-shelf is better and that is translating in better sales of promoted items and virtually no stock left at the end of each promo period.

CHILL CHALLENGE We still have occasional issues with stock availability in certain chilled lines, thanks mostly to a sort of ‘feast or famine’ approach that our customers take to buying some of the key lines. A good example is the stock we get from our local butchers which is exceptionally popular with our customers. The problem is that, every few weeks, and for reasons we simply can’t fathom, sales of certain lines just go through the floor. We gradually increase the order each time to cope with increasing demand then boom, one week we end up with half a dozen steak pies left unsold. We mitigate that slightly by freezing them before they go out of date and then sell them via the hot food counter but it’s one of those problems that I don’t think we’ll ever solve completely. The steak pies can sell out in a single day or be left unsold after three days – and we simply can’t work out why. We are also having some challenges agreeing on a settled chilled range, particularly now that Filshill’s trial period with Lomond has apparently ended. We must have tried 25 new chilled lines in the last few months, giving each one plenty of chance to bed in – but very, very few have stood the test of time. Our customers can be very choosy in what they’ll try, yet our commitment to an extended chilled range means we need to fill a large cabinet with stock that we know will sell solidly, and that’s proving troublesome. www.slrmag.co.uk

PEOPLE PUZZLES We recruited two new staff last month and then spent most of the month training them in aspects of running the store, over and above the mandatory licensing and cooksafe training. It’s a time-consuming and complex process, particularly when we know that only around 50% of those that we start will still be there a month later. This recruitment phase was no different. Of the two we started, one has shown himself enthusiastic, willing and great with customers while the other failed on pretty much all counts and has already been dismissed. So we’re back looking for staff once more and we will need to begin the training and evaluation cycle once more, probably for another two staff as we will need holiday cover very soon with one staff member going on vacation and another absent for up to five weeks for an operation. But we are taking heart from the fact that Danny, our successful new start, has the makings of a great member of the team and has fitted in well. As long as we’re making progress, we can keep our eyes on the prize.

CERTIFICATE SUCCESS September was a good month too for some unexpected reasons. Firstly, we had an unannounced underage test purchase from Camelot and I’m delighted to say that we passed with flying colours. Top marks to Marlyn for refusing the sale and doing us proud on that front! Then we received a nice Certificate of Appreciation from Cancer Research UK thanking us and, more importantly, our customers, for having donated £45.32 to the charity via the box on the counter by the till. Always nice, although it would be even nicer if the various charities we raise money for actually collected the tins more often! We literally have seven completely full tins that have been sitting awaiting collection for months, despite numerous phone calls and emails to them. Finally, and possibly most importantly, we also received our latest Food Hygiene Certificate from Falkirk Council. Our EHO had visited a month previously and had highlighted some minor areas needing work. Arlene oversaw these improvements and ensured we passed. Great work by the entire team for that effort and it’s hopefully a sign of things to come. OCTOBER 2017 | SLR

Inside Business

Woodlands Local | goodnessKNOWS trial

WOODLANDSlocal

NPD execution masterclass: goodnessKNOWS

It’s important to execute NPD well in-store, particularly when it’s around a product Mars calls its “biggest brand launch in 20 years”. Woodlands Local worked with Mars to make sure goodnessKNOWS got off to a ﬂyer. BY ANTONY BEGLEY

ne of the many reasons we first bought Woodlands Local was to give us the opportunity to work with suppliers to demonstrate key disciplines in local retailing. One of the most important of those is great quality execution of major new product launches. This month we’re having a go at what Mars is calling its “biggest brand launch in 20 years”: goodnessKNOWS. A fresh take on the breakfast bar concept, goodnessKNOWS comes in “four snackable squares” packed with fruit, whole nuts, rolled oats and dipped in dark chocolate. A nice touch is that the brand will channel 10% of all sales profits to the ‘goodnessKNOWS Fund’ that will support community projects and local initiatives across the UK. Ticked every box, as far as we were concerned so we got in touch with Mars and put together and execution plan for Woodlands that saw us introduce a whole array of POS. We also supported the launch with a series of Facebook posts and by some in-store sampling with our staff encouraged to join in so that they could answer any questions that our customers had.So what did we do?

127

Cranberry & Almond sold in just 2 weeks!

SHELF-TOPPER

We sited the FSDU next to our hot food counter to drive up impulse sales as customers waited for their food to be served.

As we already have a significant trade in breakfast bars, we have a small gondola-end dedicated to a range of them. We decided to use the impactful shelf-topper unit to act as a beacon for the category and sited it on top of the gondola-end, drawing customers to it and driving trial of goodnessKNOWS and other breakfast bars.

COUNTER-TOP UNIT

STAFF T-SHIRTS

The unit was sited between the two tills to drive trial and interest.

Our staff have been given t-shirts and have been wearing them throughout

FSDU

SLR | OCTOBER 2017

the trial period which has generated some questions, a lot of interest and a few jokes here and there, as you might imagine!

RESULTS We’re only a couple of weeks into the trial so far but we have already sold 127 units, which is a very successful launch in Woodlands. We will keep running the trial and will provide fuller figures in the next issue, by which time we will also have the other flavours in-store. www.slrmag.co.uk

Price-Marked Pack Trial | Woodlands Local

Inside Business

There’s little doubt about it: PMPs work!

With our ground-breaking price-marked pack trial with Wrigley now at an end, we can conclusively reveal that price-marked packs work! BY ANTONY BEGLEY

s highlighted in the last issue of SLR, we embarked in August on a semi-scientific trial with our partners Wrigley to attempt to gain some sort of definitive answer to the question ‘Do price-marked packs work?’ The mechanism was straightforward: sell plain packs for five weeks then swap them directly like-for-like with price-marked packs (PMPs). Nothing else was changed. The products inside were the same, the number of facings was the same, the sitings in-store were the same. Literally the only thing that changed was the fact that the plain packs were swapped for PMPs. By the time the last issue of SLR went to press we hadn’t quite completed the second five-week period to enable us to compare apples with apples. That period has now completed and we are able to bring the full results... We chose four hanging bag lines for the trial: Q Starburst Fave Reds 150g Bags Q Skittles Fruits 125g Bags Q Skittles Crazy Sours 125g Bags Q Skittles Fruits & Sours 100g Bags When we calculated the results through the Epos we could hardly believe what we were reading. Sales of Starburst Fave Reds 150g bags rose by over 148%, while the ‘smallest’ increase we had was a whopping 58.8% on Skittles Fruits & Sours 100g Bags! We had been concerned that while we may sell more volume we would be losing out on cash margin because PMPs carry smaller PORs – but with increases of that magnitude, that particular worry was soon swept away. We had anticipated sales increases but I don’t think either the team at Woodlands Local or Wrigley themselves anticipated sales hikes running into the hundreds of percent. The big question is what we now do going forward. Many of our confectionery lines are already PMPs but we may now decide to convert as many as possible to price-marks. If we can achieve sales hikes of even half this level we will be perfectly happy. www.slrmag.co.uk

THE RESULTS Q Starburst Fave Reds 150g Bags Plain Pack: 31 PMP: 77 Change: +148.3%

Q Skittles Fruits 125g Bags Plain Pack: 58 PMP: 111 Change: +91.3%

Q Skittles Crazy Sours 125g Bags Plain Pack: 67 PMP: 120 Change: +79.1%

Q Skittles Fruits & Sours 100g Bags Plain Pack: 34 PMP: 54 Change: +58.8%

OCTOBER 2017 | SLR

Hotlines

Product News & Media Watch

Jacob’s Mini Cheddars Crispy Thins pladis Jacob’s latest NPD is available now in three variants – Toasted Cheddar; Cheddar & Chive; and Cheddar with a hint of Chilli – sold in multipacks of seven at an RSP of £1.88. The launch is backed by a shopper marketing campaign in stores across the country. Support for the savoury snack continues into 2018 with new television advertising, digital, social media and public relations activity all pencilled-in.

Curly Wurly Squirlies and Cadbury Picnic Bites Mondelez Curly Wurly and Picnic are the latest countlines to join the ranks of Cadbury’s medium-sized bagged confectionery portfolio with the launch of Curly Wurly Squirlies and Cadbury Picnic Bites. The new bags aim to drive incremental sales for the family sharing occasion. Both are available now in 110g packs (RSP £1.99) in outers of 10.

Müller Rice 5 Grains Müller UK & Ireland The latest Müller Rice NPD contains white rice, barley, spelt, millet and wheat to offer consumers a low fat, wholegrain option. It is available in 180g single ﬂavours and four-packs of Original and Blueberry. A national multimedia campaign and largescale sampling activity at railway stations throughout the UK supports the launch.

SLR | OCTOBER 2017

Who are you? Snickers asks the question. Snickers has unveiled ‘Who are you?’, a brandnew on-pack promotion which offers consumers a new way to tell their friends when they’re not being themselves. The new packaging builds on the Snickers ‘You’re Not You’ campaign. From this month, the brand-ﬂag on Snickers packaging will change to 21 different hunger symptoms including “cranky”, “forgetful” and “drama mama”. In America, the promotion resulted in a 10% uplift in singles sales. Snickers has partnered with LADBible to create social media content that will support the promotion, as part of the brand’s £5.7m media spend for 2017. Bep Dhaliwal, Trade Communications Manager for

Crisp ‘n’ Fin Fish ‘n’ Chips Burton’s Biscuit Company This thinner and crispier additon to Burton’s £9.5m Fish ‘n’ Chips brand portfolio targets sharing occasions. Two ﬂavours are available – Salt & Vinegar and Sour Cream & Chive. Both come in 150g packs (RSP £1.59) in case sizes of eight. The launch, along with a wider brand refresh, is supported by a £100,000 marketing campaign.

Mars Chocolate UK, said: “This on-pack promotion is the perfect next step for the ‘You’re Not You’ campaign as it gives consumers a chance to engage with the concept. “Rooted in cutting-edge shopper and consumer insight, we’re confident this promotion can help drive growth across the singles category, boost sales for retailers, and provide consumers with a great chance to have a laugh with their mates.” The twenty-one hunger symptoms are: “Moaner”, “Faffer”, “Done In”, “Miffed”, “Broken”, “Irritable”, “Grouchy”, “Numpty”, “Stroppy”, “Yawner”, “Sluggish”, “Mardy Bum”, “Grumpster”, “Knackered”, “Sleepyhead”, “Lazy Bones”, “Fuzzy Head”, “Wiped Out”, “Complainer” and “Drama Mama”.

Heritage pizza range Nisa Nisa’s own-label Heritage pizza range has been extended and given a packaging refresh. Two new deep pan pizzas have been added to the range by a new supplier – Cheese Feast and Pepperoni – as well as a stone-baked Barbecue Chicken variant. The five existing have also been given a recipe change. Reaction to the new range has been positive, with sales up 50%.

Galaxy Chocolate Spread Mars Chocolate Drinks and Treats Galaxy joins Maltesers Teasers, Twix and Bounty in the expanding Mars chocolate spreads range, which is collectively worth £1.5m and growing at 38% year-on-year. It is available now in a 200g jar, RSP £2, and can be ordered from SHS on 01452 378500. Mars said the range has proved popular with consumers, and was confident that Galaxy Spread will continue to fuel growth.

www.slrmag.co.uk

Product News & Media Watch Mars chocolate cookies Burtons’ Biscuit Company This threesome from Mars Chocolate Drinks and Treats consists of Galaxy Chocolate Chunk Cookies with real Galaxy pieces; Bounty Soft Baked Cookies with ﬂakes of coconut and chocolate chunks; and M&M’s Chocolate Cookies with real chocolate M&M’s. Packs of eight 22.5g cookies RSP at £1.99 and come in outers of eight.

Bake in the Box Loaf Cake Mix Dr. Oetker Aspiring Bake Off stars need to start somewhere and Dr. Oetker’s latest venture into the Cake Mixes sector needs just milk, a fork and a spoon to prepare. Bake in the Box Loaf Cake Mix (175–200g) has an RSP £2.50 and is available now in three variants: Double Chocolate; Lemon & Poppy Seed; and Banana & Choc Chip.

Yorkie Pro Nestlé

Müller White Velvet Müller UK & Ireland Müller’s new plain Greek-style yogurt is out now in a 450g big pot format, with an RSP of £1.60. A fat-free variant, White Velvet Light, is also available. Müller hopes its new offering will disrupt the current plain yogurt sector. To support the launch, Müller is investing in a major multimedia campaign, which includes a new TV advert starring X Factor judge Nicole Scherzinger, that will hit screens in November.

Yorkie has become the latest brand to offer a protein-enriched variant with the launch of new Yorkie Pro. Available now, each 42g Yorkie Pro bar contains 10g of protein from a combination of protein-enriched milk chocolate and wheat protein crispies. Bars have an RSP of £1.50. Nestlé advises retailers to stock up and display off-shelf at launch in order to capture shoppers’ attention, and site on the main confectionery fixture in the long-term.

MEDIAwatch

Hotlines



Kinder Bueno comes of age ‘Now That’s Adulting’ is a tongue-in-cheek attempt by Kinder Bueno to connect with 25 to 34-year-old women by highlighting what it means to be a grown-up in 2017. The campaign hinges around vlogger partnerships, coupled with social media, video-on-demand and sampling activity. Free POS is available from Ferrero.

Nutella takes the biscuit Nutella’s first foray into the UK biscuits category with its B-ready bar is supported by a £2.8m campaign. This includes a new TV advert, on screens until mid-October. The ad features people raising eyebrows as they try to eat Nutella from a jar. It concludes with a woman enjoying a B-ready to the narration: “If you love Nutella in a jar, here it is in a bar!”

The Marmite Gene Project Marmite’s largest marketing campaign to date, the £3m ‘Gene Project’ hinges around scientific research that revealed a genetic foundation to Marmite taste preference, meaning consumers really are born to “love it or hate it”. The campaign includes a new TV ad, as well as digital and social media activity. An £89.99 DNA testing kit is also available.

Dr. Oetker sponsors Bake Off Oat So Simple Pumpkin Spice limited-edition PepsiCo

Old El Paso White Corn Tortillas General Mills

Quaker Oats has added a limitededition Halloween-themed ﬂavour to its Oat So Simple range. Available until the end of October, Quaker Oat So Simple Pumpkin Spice is available with a special RSP of £1 (eight sachets per pack). The launch will be supported by a month-long social media campaign and a range of spook-tacular in-store POS and theatre.

Made from corn, rather than wheat, these new tortillas will appeal to the nation’s growing number of gluten avoiders. The launch will be supported by a digital campaign on Old EL Paso’s social media channels. Available from October in 220g packs of 10.

Dr. Oetker is encouraging British shoppers to ‘Dare to Bake’ with its new Great British Bake Off partnership. The deal means Bake Off fans are getting treated to a selection of talking cakes – including the dark and velvety smooth ‘Frederico Fudge’– during sponsorship bookends at the start and conclusion of each show.

Don’t mess with Edna New York Bakery Co. has returned to TV as part of a £4m media spend. A 30” ad introduces Edna, ‘The Woman Who Runs New York’. In the fast-paced ad, the audience is transported into the sights, sounds and buzz of the city as Edna makes the bagels that fuel the Big Apple’s population. The ad will also feature on digital and social media channels.

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

OCTOBER 2017 | SLR

Feature

Price-Marked Packs

THE PRICE IS RIGHT Once the scourge of independent retailing, price-marked packs are now a staple of the industry with studies showing that they drive trust and sales among customers. BY ANTONY BEGLEY

nce upon a time, price-marked packs (PMPs) were viewed by many local retailers as best avoided, preferring instead the plain packs that allowed them to control their profit margins. Times change however and in the last five years of so, the growth of PMPs has been little short of astonishing. This growth has been driven in part by a raft of research showing very clearly that shoppers view PMPs favourably, for a whole range of reasons. HIM data from 2015 showed that 79% of shoppers actually view PMPs as promotions, 44% of shoppers are more likely to buy a PMP product on impulse and 43% of shoppers claim that they’d be more likely to try a new line if it was sold in a PMP. A Shopper Understanding report in 2013 also found that 86% of shoppers trust price-marked packs over on-shelf pricing. One company making a big splash with PMPs at the moment is fast-growing meatfree specialist Quorn which is spending £2.5m on a TV campaign targeting family meal occasions. With meat-free shoppers spending up to five times as much in-store as non-meat free shoppers [Kantar Worldpanel, May 2017] and meat-free being bought by almost 9.5 million shoppers [IRI, May 2017], it’s a category that should be of increasing interest. The media investment will be spearheaded by a new TV ad, complemented by digital support, featuring Quorn Crispy Frozen Nuggets, a family favourite and the fifth bestselling SKU in the UK’s £290m meat-free category [IRI, May 2017]. Quorn Crispy Frozen Nuggets is one of a range of price-marked Quorn SKUs targeted at the family meal occasion alongside frozen sausages, vegan fishless fingers and burgers. Also capitalising on the growth of PMPs is Mars Chocolate Drinks and Treats which has just moved its 8x350ml milk drinks range into PMPs at £1.29. Milk drinks have been extremely successful in

SLR | OCTOBER 2017

price-marked packaging as the chocolate milk drinks range from Mars Chocolate Drinks and Treats is now worth £24m [IRI, Jul 2017. Michelle Frost, General Manager for Mars Chocolate Drinks and Treats, says: “By moving into price-marked packs, we hope to see even more category growth by offering retailers the opportunity for more impulse purchases. The 702ml Mars Milk ‘No Added Sugar’ bottle is also available as a PMP (£1.69), offering consumers a ‘take home’ variant of the hero Mars Milk SKU. The UK’s No.1 micro-snacking brand, Rustlers, has long driven sales through use of PMPs. “Pricesensitive shoppers are looking for value for money so they are reassured when they see market-leading brands in pricemarked packs,” says Angela Daulby, Channel Director of brand owner Kepak Convenience Foods. “86% of shoppers trust pricemarked-packs over on-shelf pricing [Shopper Understanding, 2013].” Rustlers recognises the importance of price-marked packs and offers each of its topselling SKUs as £2 PMPs. “We understand that PMPs have a key-role to play, and that’s why our price-marked packs are available at accessible price points that help to attract new customers and encourage repeat purchase from brand loyalists and impulse shoppers,” says Daulby. Soft drinks giants Coca-Cola European Partners (CCEP) and AG Barr have also been quick to offer price-marked variants of their top selling lines. Amy

Burgess, Trade Communications Manager at CCEP, comments: “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. “For those opting to stock PMPs, we offer a wide range of price-marked Coca-Cola packs across both our immediate and future consumption formats, including £1 500ml bottles, 65p 330ml cans, and 1.75L PET bottles priced at £1.69. “PMPs are a particularly effective way to encourage consumers to trial new products. In-line with this, our recently launched Coca-Cola Zero Sugar is currently available in a limited edition 49p 330ml can PMP.” AG Barr is just as keen to help retailers drive sales through PMPs. Marketing Director Adrian Troy points out that price-marked packs continue to be popular among c-store shoppers, with 57% of shoppers saying they liked them [IGD, 2016]. “Price-marked packs are hugely important for those shoppers seeking value from the soft drinks fixture and an essential tool via which retailers can grow sales,” says Troy. “It is also important to understand that value is not about cost alone – while shoppers are looking for low prices, they are not prepared to compromise on quality. AG Barr offers a range of great tasting, high quality brands that consumers love, including IRN-BRU, Rubicon, KA, Barr and Rockstar. All of these brands are available as price-marked options to clearly communicate a fantastic price point in all pack sizes (from 330ml can and 500ml PET impulse packs to 1 litre carton and 2 litre PET take-home packs) throughout the year.”

86%

shoppers who trust PMPs over on-shelf pricing

43%

shoppers more likely to try a new line if it is price-marked

79%

shoppers who view PMP as a promotion

44%

shoppers more likely to buy a PMP product on impulse

www.slrmag.co.uk

ISN’T IT TIME

YOU MADE A

delicious difference to your sales?

PRICE MARKE PACKS D AVAILANOW BLE

With the UK’s No.1 meat free brand* • High basket spend category with shoppers spending 4 times as much as the average convenience store shopper**

• Sales growth +10.7%* • £10m media support in 2017

* Source; IRI 52we 24th June 17- TOTAL UK VALUE SALES. ** Kantar World Panel 2016. Quorn products contain Mycoprotein, which is nutritious because it’s a source of protein.

STOCK UP ON

TODAY

Feature

Scottish Brands

PROVENANCE DRIVES PROFIT – SO STOCK SCOTTISH! As local retailers understood long before supermarkets and discounters, Scottish consumers can be very loyal to Scottish brands and will often pay a premium to get their hands on them. MERCHANDISING SCOTTISH PRODUCTS AG Barr offers the following merchandising advice when siting Scottish brands: Retailers need to ensure that their range is tailored to local tastes, so they should talk to their customers to find out what they want, stocking the top-performing brands in each category. Soft Drinks is one of the most profitable categories in your store, so ensure that your soft drinks fixture is highly visible, well presented and located in a high football area between the door and the till. Effective ranging, space allocation and stock availability are the most important elements to get right. Make it easy for customers to find what they want by grouping categories and brands within them together. Then identify your best performing brands in each category and stock these at eye level with adequate facings to ‘signpost’ segments. Restock regularly; if a product is selling out regularly increase the number of facings. Empty shelves equate to lost sales, so we’d advise reviewing your range and space allocation often, based on your own sales data and local knowledge.

SLR | OCTOBER 2017

he trendy modern marketing term for it is ‘provenance’, but generations of Scottish local retailers have long known that Scottish consumers can be very, very loyal to homegrown brands and products and have long capitalised on that demand by stocking local, regional and Scottish lines in their

stores. The major multiples and discounters have since caught on to the phenomenon and have attempted to cash in by plastering Saltires across the store and allowing store managers in Scotland a little latitude when it comes to sourcing Scottish lines, but at best these tend to be token gestures. And we’ve all seen the unintended consequences of central buying: the England strips hanging disconsolately for sale www.slrmag.co.uk

O NOCK W U

20 YEARS AS

THE UK’S

NO.1

• More shoppers than any other plain bottled water brand† • Brand growth of +14.8%‡ • £5m marketing support in 2017

highlandspring.com * Zenith Global 2017, † Bottled Water, Kantar Take Home, 52 w/e 16.07.17, ‡ IRI Total Market Scotland, Value 52wks w/e 19.08.17

Feature

Scottish Brands

in Sainsbury’s in Glasgow come World Cup time, for instance. Local sourcing remains a real challenge for the multiples so it’s an area where local retailers can still drive significant sales and gain a real competitive advantage, particularly when it comes to sourcing at a true local level. Using the local butcher for meat products for example, or the local baker for bread, rolls and pastries. But even when it comes to regional or national products there is still a lot to be said for not only stocking Scottish brands but making a fuss over them in-store with POS, in-store theatre and even dedicated fixtures or bays. Edinburgh Premier retailer Linda Williams has recently created a Scottish aisle-end in her store and says it has gone down a storm with her customers: “We always knew that our shoppers like Scottish products, especially the big brands like Barr’s, Tunnock’s, Highland Spring, Tennent’s and Hamlyn’s so we decided to create a dedicated fixture and we’ve had so many positive comments, it’s been amazing.” All it takes is a little effort and thought, and extra sales and profits are there for the taking.

PROVENANCE PAYS “Provenance is a key reason why consumers choose to purchase a product, with people looking for a brand they can connect with and product that they trust to be high quality, good for them and tastes great,” says Carol Saunders, Head of Customer Marketing at Highland Spring Group. The Highland Spring brand is, of course, the leading producer of natural source water in the UK, a testament to the demand for Scottish product amongst consumers, both in and out of the home. Scotland is renowned the world over for the quality of its natural larder and Highland Spring is a good example of why that has become the case. It is bottled at source from a privately-owned 2,000 hectare catchment area in the Ochil Hills in Perthshire. No farming of any sort is permitted in the catchment site to ensure the water is as pure as it can be, with nothing but nature touching it; Highland Spring has been accredited with organic status by the Soil Association since 2001. Saunders explains: “It has been seen that consumer interest in provenance continues to be an important selling point in Bottled Water, with the UK industry pointing to a long tradition of quality brands [Zenith Bottled Water Report, 2017]. This is why the brand’s Scottish roots play such a key role in all Highland Spring communications. This has helped it to become the number one UK44

SLR | OCTOBER 2017

produced bottled water brand with consumers looking for a quality, pure and local product [Zenith International Bottled Water Report, 2017].” Importantly, Saunders also points out that “many consumers also wish to support local brands in order to champion Scottish business” and that’s a message that shouldn’t be lost. The Scots are a patriotic bunch and their love of brands like Irn-Bru and Tennent’s is legendary.

THE IRN-BRU EFFECT

data suggests that shoppers will continue to look for a choice of regular, low and zero sugar products. Irn-Bru Sugar-Free is Scotland’s leading low calorie flavoured carbonate while IrnBru Xtra already accounts for 10% of regular sales [IRI, Aug 2017], showing there is still a massive sales opportunity for retailers. The company is backing the brand with a £5m brand investment throughout 2017 across a number of platforms, including national TV advertising, digital and social media. As well as continued activation of its partnership with the Scottish Challenge Cup and The Football League, Irn-Bru is strengthening its association with grass roots football by teaming up with Sky Sports’ flagship Saturday football programme, Soccer AM. “The marketing support will reinforce Irn-Bru’s position as the brand one in every two Scots drinks most often, with research confirming that Irn-Bru makes 89% of Scots feel proud to be Scottish [LVQ Ad Tracking Research],” says Troy. Meanwhile, the Barr Family range is Scotland’s most popular range of flavours [IRI, Aug 2017], and offers unique flavours that deliver on quality, taste and value with a true Scottish character. The Barr brand also has an important role to play on the soft drinks fixture, currently accounting for 15% of Other Flavoured Carbonate sales and growing at 4% [IRI, Aug 2017].

Adrian Troy, Marketing Director at AG Barr, agrees that provenance is key: “Provenance and product benefits are increasingly important to consumers, particularly in relation to water. People are not only looking for water brands they know and trust, they are increasingly conscious about the source of the water which reinforces the provenance message.” Barr’s own Strathmore Scottish Spring Water brand is a good example, currently growing at 28% [IRI, Aug 2017]. Redesigned last year, the new packs across the brand’s 330ml, 750ml and 1 litre Still and Sparkling glass variants feature a contemporary design and an improved premium feel. And while Strathmore may be flying, it’s Barr’s carbonate range that is the one that made the name famous. Troy explains: “Scotland’s £845m [IRI, Aug 2017] Soft Drinks category continues to be one of the most profitable categories for convenience retailers, growing at 3% year on year. Two sub-categories are driving EVOLVING MARKET the growth – Water (+7%) and Flavoured Scottish brands are also benefitting from Carbonates (+4%) – with AG Barr brands the huge growth in farmers’ markets and playing a key role in offering choice, quality gourmet food vans in recent years, which is convincing evidence that consumers like to and innovation.” Leading the way is the one and only Irn- know where their food comes from. Alan Meikle, Managing Director at Bru, the number one Scottish grocery brand [Kantar, May 2016], which accounts MERCHANDISING SCOTTISH WATER for almost 60% of Within the Bottled Water category, Highland Spring offers the following flavoured carbonates key merchandising advice: in convenience and Q Position key bottled water lines (including both still and sparkling is currently growing products) in the chiller. strongly at 6% [IRI, Q Avoid single facings to help maintain availability. Aug 2017]. Q Ensure bottled water is always visible and always available, especially Troy advises at busy times such as the morning and lunchtime rush. Restocking at retailers to cash these times will help too. in on the brand’s Q If offering a meal deal, ensure still and sparkling bottled water options Scottish heritage by are included in the range of soft drinks to make the most of the merchandising all opportunity with health-conscious consumers. three variants of the Q Stock large single bottles and a small range of multipacks for drinkbrand – Original, later occasions in any ambient soft drink space. Sugar Free and Xtra Q Ensure recognised and trusted brands are visible to make the most of – prominently to customer loyalty. attract shoppers to the fixture as all the www.slrmag.co.uk

STRENGTHEN YOUR SALES CALL US ON 01236 852580 *Kantar Worldpanel, Value Sales, Take home non-alcohol brands, MAT to 22.05.16, Total Scotland

Feature

Scottish Brands

Hamlyns of Scotland, says: “We know that consumers like local, regional and nationally sourced products. At Hamlyns of Scotland, we have always promoted the fact that we’re the only major brand of Scottish Porridge Oats and Oatmeal that can claim to be 100% Scottish from field to mill to finished product. “We work closely with a network of Scottish farmers, many of whom have supplied us for several generations. We believe it’s important to shout about this in our marketing, and we’ve just added a new section to our website focusing on one of our farmer suppliers, so our customers have a full understanding of where our oats come from.” Over the winter months, Hamlyn’s is focusing its consumer advertising spend on publications with a strong Scottish flavour including The Herald, the Scots Magazine, the Historic Scotland magazine and the new Loganair inflight magazine FlightLOG, to make sure that Hamlyns immediately comes to mind when consumers are making purchasing decisions.

MERCHANDISE WISELY Meikle highlights to local retailers that it’s critically important how they merchandise Scottish brands in-store if they wish to maximise sales and profits. “The multiple retailers have been really clever at merchandising Scottish products over the past few years, with eye-catching displays of a wide variety of products, not just to increase sales, but also to show how their support for the Scottish economy through local suppliers,” he comments. “While space restrictions make it difficult for smaller stores to do something on that scale, it’s definitely worth having occasional Scottish displays around key dates like Burns Night and St Andrew’s Day. For the rest of the year Scottish products can be highlighted with Scottish Saltire-branded shelf tickets. Where retailers have space, engaging suppliers like ourselves in sampling activities can really help to encourage trial and purchase of Scottish products.”

Remember however that there are regional differences even within Scotland. Hamlyns Scottish Oatmeal may be Scotland’s bestselling oatmeal by far, and Hamlyns Scottish Porridge Oats may be one of the fastest growing brands in the competitive hot cereals market, but regional differences make choosing the right range for your store an important task. Meikle explains: “Oatmeal sales are particularly strong north of Perth, where a high number of consumers use oatmeal to make porridge, whereas in central and southern Scotland porridge oats are much more popular for porridge making, so space should be planned accordingly.”

TOURIST DOLLARS AND YEN It’s also worth bearing in mind that it’s not just Scots who have an affinity with Scottish brands. Highland Spring’s Carol Saunders says: “There is also an opportunity with consumers visiting Scotland. When coming to Scotland, visitors like to see local brands, so for outlets that attract high numbers of tourists, stocking local brands is key. Research from VisitScotland’s Visitor Survey (2015) saw that

visitors to Scotland, particularly international ones, showed a strong desire to find out about the provenance of food and drink products; local food and drink is a fundamental element of the travel experience.” To make the most of the Scottish brand opportunity, Saunders advises retailers to ensure that local products are always given prominent positioning to highlight this offering to customers, and some retailers may choose to have a specific area dedicated to local produce. However, with a convenience product like water, it is important that these local products are also stocked within the soft drinks chiller to ensure customers can quickly and easily find what they are looking for. Keeping the range tight is important too, particularly in categories like water where there is a high proliferation of brands, including those from secondary and tertiary players. This has sometimes seen retailers choose these over the leading muststock brands which can result in category devaluation. Retailers are recommended to stock top-selling brands which consumers know and trust.

THE WOODLANDS LOCAL EXPERIENCE

At our own Woodlands Local store where we stock an extensive range of sausages, steak pies, mince rounds, haggis, black pudding and macaroni cheese from the local butcher, Patrick’s, we ran a trial once to offer our customers cheaper big brand alternatives. The logic was clearly that customers would accept a perceived drop in quality for savings as high as 50% on some lines. The result? The trial only lasted a couple of months because our shoppers showed themselves more than happy to pay an extra £1 for some Patrick’s sausages. That taught us a valuable lesson about the difference between value and price.

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Feature

Christmas Confectionery

LET’S MAKE CHRISTMAS GREAT AGAIN!

Once the standout sales period of the year for local retailers, Christmas has become a more challenging time in recent years as the mults launch crazy deals in key categories – but there’s plenty that can be done in confectionery to steal some of those sales back and ensure a profitable festive period.

HOW TO WIN CHRISTMAS! Jon Eatly, Wrigley Customer Excellence Director, gives his seven simple steps to maximise Christmas confectionery sales: Q Visibility is key, so popular Christmas confectionery items should be located at eye level to take advantage of incremental sales. Your seasonal display should be in place now. Q Availability is crucial. Remember to restock each morning and prior to peak traffic times as customers stock up for the festive season. A fully-stocked display will help maximise your profit potential and guarantee repeat visits from customers. Q Ensure shoppers are aware of the choice and range on offer by keeping a clear and tidy confectionery display and merchandising by format and sub-category e.g. single serving fruit confectionery, share bag fruit confectionery, single serving chocolate confectionery, chocolate blocks, sharing bags chocolate etc. Q Encourage additional purchases using Christmas ‘Big Night In’ promotions as families gather together. This trend is growing in popularity, with offers including a DVD, confectionery pouch and drink for a reduced cost. Q Retailers should stock lines to serve the various gifting and sharing occasions for confectionery over different parts of the festive period. Single-serve treats are often popular before Christmas as shoppers treat themselves while out shopping for gifts, meanwhile sharing bags make great stocking fillers. Q Christmas is expensive for consumers. For those looking to tighten their purse strings, PMPs give value for money. Q Use eye-catching Christmas POS materials to draw attention to your confectionery display, encouraging customers to buy on impulse. Make the most of your display and interrupt the shopper with eye-catching confectionery secondary displays, clearly labelled with the price.

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hristmas may no longer be the boom time it once was for local retailers, before the mults started doing silly deals on cases of beer and advent calendars, but there’s no reason why local retailers can’t make Christmas great again with a little thought and planning. There’s not much point tackling the mults head-on, but fortunately most of the major manufacturers have worked hard with the convenience sector over recent years to ensure they have some unique and attractive offerings for customers at local retailing outlets. So where should we be focusing our attention in the run up to this year’s festive bonanza?

CONFECTIONERY

MARS CHOCOLATE

Where better to start than the most festive of festive favourites, confectionery. The giants like Mars Chocolate, Mondelez International and Ferrero invariably come up trumps for local retailers and this year looks set to be no different. Three treats are bought every second during Christmas in the UK, but in an impulsive and expandable category there is always room for treating chocolate to grow, says Mars Chocolate. As the number one and number two selling treat at Christmas according to Nielsen, the Maltesers Merryteaser Reindeer (RSP 65p) and Maltesers Merryteaser MiniReindeer sharing bags (RSP £1.29) can be impulsive purchases or perfect top-up gifts, and look set to fly off the shelves once again! However, it is not just self-treat items that drive sales during the festive season. Chocolate for sharing is the number one food and drink category shoppers are willing to spend money on at Christmas, making boxed chocolate a great option for consumers looking to buy a ‘safe’ gifting option that everyone will love, or that extra-special gift for a loved one. New for this year, Mars has given the popular Maltesers Teasers its own box, providing a perfect gift with an RSP of £4.99.

Boxed value sales grew by £2.6m last Christmas making up over three-quarters of total Christmas Confectionery sales in the final week leading up to Christmas Day, and Celebrations led the way as the number one selling tub and pouch brand [Nielsen, Dec 2016]. The Celebrations Tub is available at an RSP of £10.99 and the Pouch is RSP £4.99. Alongside the tub and pouch, the Celebrations range also includes the crowdpleasing Gift Box (RSP £4.99) which is perfect as a gift for an individual or to share amongst friends or family. Also available is the best-selling Carton (RSP £3.31) with sales 22% ahead of its nearest competitor. The strong performance of the Celebrations range will be further aided by Mars Chocolate UK’s new and improved display materials which are sure to help drives sales of these best-sellers even further. Mars also has boxes covering three of the top 10 blockbuster brands, including M&M’s Peanut and the original Maltesers box. Both have an RSP of £4.49.

ADVENT CALENDARS Advent calendars are great way of building buzz and excitement in the build up to Christmas and Mars has a strong selection. Three of its top 10 SKUs have advent calendars including the Malteasers Merryteaser calendar, the Galaxy advent calendar and the Mars calendar. All of the Mars advent calendars have an RSP of £2.79.

TUBES Tubes are a must-have stocking filler and a huge part of the Christmas Confectionery category making up 15% of total Christmas gifting sales last year [Nielsen, Dec 2016]. The number one chocolate brand in the world, M&M’s Treat Tubes cater for a variety of occasions – from a stocking filler to a perfect option for a child’s gift. Galaxy Minstrels and Maltesers are also available in tubes, all with an RSP of £1.70.

SELECTION BOXES Now an established tradition at Christmas, selection boxes are another great option for www.slrmag.co.uk

Feature

Christmas Confectionery

FERRERO

Treats bought every second at Christmas

stocking fillers and top-up gifts. Selection Box growth has been driven by more shoppers trading up to large selection boxes and with two of the top three large boxes in Galaxy and Maltesers, Mars Chocolate is a must-stock for retailers looking to capitalise on this trend. Both have an RSP of £4.49. Additionally, Mars has launched a new Snickers selection box to provide a relevant gift for men.

NOVELTY CHOCOLATE Large novelty gifts really deliver the ‘wow factor’ and the Galaxy Giant Bar is a great option, providing 56% incremental sales to the category last year [Nielsen, Dec 2016]. With strong stand-out on shelf, it’s set to be a hit this Christmas with an RSP of £10.99. Bep Dhaliwal, Trade Communications Manager, Mars Chocolate UK: “Chocolate is intrinsic to Christmas and a time when shoppers are willing to spend that little bit more. Therefore, it is no surprise that last year the confectionery category grew by £6m and Mars Chocolate mirrored this, growing its share of the market by 2.6%. “This year Mars looks set to continue its strong seasonal performance, with a wide range of products across different formats and price points, as well as brand new innovations that provide a seasonal twist on consumer’s favourite best-selling brands.” MONDELEZ INTERNATIONAL

Mondelez International will be at the heart of Christmas with the leading share of confectionery (27.1%). This year, the company has bigger plans than ever with the return of the Milk Tray Man, a £10m spend for its Cadvent campaign, NPD in both chocolate and candy, and for the first time, will offer Cadbury biscuits within its portfolio. New for 2017 are the Cadbury Snow Bites carton and Maynards Bassetts Jelly Snowmen. The popular Christmas novelty Cadbury Snow Bites carton will now be available in a self-eat format for Christmas 2017 with an RSP of 60p while Maynards Bassetts Jelly Snowmen 50

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is a sharing bag of snowman-shaped jellies from the number two candy bag brand with an RSP of £1.32. Mondelez also recommends the hugely popular Cadbury range, including Cadbury Dairy Milk Snow Balls, Cadbury Dairy Milk Mousse Snowman Chocolate, Cadbury Dairy Milk Freddo Popping Candy, Cadbury Snow Bites, Cadbury Dairy Milk Winter Edition, Cadbury Dairy Milk Advent Calendar (two sizes), Cadbury Heroes Pouch (two sizes), Cadbury Roses Pouch (two sizes), Toblerone Tablet and Maynards Bassetts Wine Gums Merry Mix. That’s a considerable list but making the most of Christmas means stocking the lines consumers are looking for.

Also helping retailers cash in on Christmas is Ferrero, which will be investing £8.2m this festive season while launching new products across its brands, including advent calendars and new boxed chocolate products. Levi Boorer, Customer Development Director at Ferrero, comments: “Following a successful Christmas in 2016, it is important as a leading confectionery manufacturer, to offer retailers products and ranges that help them to cater for the different types of festive

GIFTING As the second-biggest occasion in total chocolate, Christmas is also a huge gifting occasion for adults while sharing packs play a big role in households as families and friends come together during the festive season and add some seasonal excitement during these occasions. Retailers should stock up on gifting products to increase top-up gift purchases in the lead up to Christmas and make sharing products available throughout as social occasions increase towards the big day and excite customers with new products. Over 1.3m people enjoyed Cadbury Heroes and Roses tubs in the UK in 2015 [Nielsen, Dec 2015] and Cadbury Milk Tray grew 13% in 2015. Mondelez advises retailers to start stocking up in November and to be sure to include a raft of new lines for 2017 including the Cadbury Snow Bites Cracker, the Cadbury Heroes Cracker, the Cadbury Fudge Minis tube, the Maynards Bassetts Juicy Chews Festive Jar and a revised Cadbury Milk Tray, now with a double layer to improve shelf layout. The company’s extensive offering of Cadbury’s, Terry’s, Toblerone and Maynards Bassetts products are sure to deliver around Christmas so stocking as wide a range as space permits is advisable and make sure stock is on the shelf early.

SIMPLE STEPS FOR A CRACKING CHRISTMAS FROM MONDELEZ Stock the very best-selling lines and use our recommended stock list to help drive sales. Q Be prepared early. Q In October start the countdown to Christmas with self-eats. Q Continue the countdown theme in November with advent and novelty sharing lines. Q December – the magic of Christmas is here – stock selection boxes, Christmas-themed gifts, family sharing lines and top-up gifts. Q Utilise manufacturers’ POS and build impactful displays in store to showcase your full seasonal range. Also remember to utilise the impulsive counter space for selfeat treats. Q Help shoppers manage their Christmas spending by giving them a choice of selfeat treats and stocking fillers with products under £1 RSP. Q Make the most of manufacturer promotions. For further information on how to make the most of Christmas sales, visit www. deliciousdisplay.co.uk

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Christmas Confectionery

MARS CHOCOLATE’S TOP TIPS FOR RETAILERS: Q Seasonal innovations are 9% incrementally higher to the Confectionery category on average so retailers should be sure they stock up on NPD to maximise their sales over the Christmas period. Q Early promotions on Boxed earlier in the season can help kick start the period. However it is important to capitalise on sales opportunities in the final week. Promotions should be held at this point to drive value sales. Q The final week leading up to Christmas is worth £127m and the last two weeks represent almost a third of total season sales, so retailers should ensure they are fully stocked with a range of chocolate products right up to Christmas Day. Q Consumers are willing to spend and indulge more at key calendar events like Christmas, leading to a trend in more premium purchases. This has been evident in the strong performance of Gift and Boxed segments so retailers should ensure they are fully stocked with these products early in the year. Q Use all the PoS available to you to create in-store theatre. Q Confectionery at checkout contributes up to 11% of incremental sales at Christmas so retailers should prioritise this location during the festive season. Q Tubs are a critical part of the Christmas range with many saying that the Christmas season doesn’t really start until they see them in-store. They should be pushed early in the season in order to drive a fast start and generate category growth.

shopping needs. Whether it’s to gift, to share or simply to treat and enjoy with loved ones, we know shoppers love our products and that they are a staple at Christmas.” Worth £119m [Nielsen, Apr 2017], the Ferrero seasonal boxed offering, which includes Ferrero Rocher, Ferrero Collection, Raffaello and Thorntons, enjoyed double digit growth (+13.6%) last Christmas. Indeed, Ferrero Rocher has experienced five years of consecutive growth over the festive period (+3.8%) according to Nielsen figures, against the backdrop of a flat category. With four out of five Rocher buyers purchasing during Christmas [Kantar, Dec 2016], it is vital for the brand to continue driving momentum during this period. With a £4.1m investment across Ferrero Rocher and Raffaello, Ferrero Rocher will welcome a new TV creative in the lead up to Christmas, ‘Make Your Moments Golden’, engaging younger audiences and reminding people of the great tastes that come from the brand. Alongside this, Ferrero Rocher will receive a full support package including VOD, digital, social and experiential, keeping the products front of mind during Christmas. Following a successful year of +75% growth [Nielsen, Dec 2016], Raffaello’s support will continue to focus on highlighting the sweet, smooth and nutty flavours of the product via TV, as well as encouraging additional trial through digital, social media and sampling. Ferrero Golden Gallery will feature two new flavours in time for Christmas with new Tenderly Biancoretti (white chocolate praline with a crunchy almond filling) and Delicious (smooth dark chocolate in a crispy shell) added to both the 206g and 389g boxes. Worth £21.7m and experiencing double digit growth (+23%), Ferrero Collection will 52

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also be supported during Christmas with press advertising and in-store support. Ferrero’s Thorntons brand will continue to ‘Pass the Love On’ this Christmas with a £3m support plan across TV, VOD, social, press and instore activations. Featuring a brand new creative, the ad will showcase Thorntons’ lovingly crafted range – perfect for showing appreciation to loved ones during the festive period. Thorntons Continental experienced strong sales at Christmas 2016 leading to triple digit growth (+199%) and becoming the fastestgrowing boxed chocolate brand. Building on this success, Thorntons Continental will launch a premium Dark variant. As shoppers continue to look for new and seasonally relevant products from brands they know and trust, Thorntons will introduce two new boxed products: Thorntons Seasonal Selection, a small Christmas themed box of popular flavours including limited edition flavours; and Thorntons Christmas Selection, which includes popular favourites Winter Fudge, Vanilla Snowflake and a festive Christmas Tree, perfect for the gifting occasion.

KIDS RANGE Adding to Ferrero’s seasonal NPD line up, Kinder is launching a Kinder Chocolate Santa Letter (100g RRP £3.50). Consisting of two 100g (8 x 12.5g) Kinder Chocolate bars, an envelope, paper and stickers, each sent letter will be replied to by the Royal Mail, creating magical moments of Christmas for kids. Following sales of £2.3m

[Nielsen, Dec 2016], Kinder Joy will return with new collectable winter eggs. Available in three colours and four designs, the range includes eight toys.

ADVENT CALENDARS With the premium advent segment experiencing strong growth of +41% [Nielsen, Dec 2016], there has been increased choice in chocolate and non-chocolate advents for adults and children. Kinder will introduce The Kinder Mix Advent Calendar (RSP £5), containing Kinder Chocolate Minis and Kinder Chocolate with Cereals Minis. The calendar will continue to premiumise the advent offering during Christmas for retailers. Thorntons will be adding to its existing licence for The Snowman with the introduction of The Snowman and The Snowdog Advent Calendar, which contains milk chocolate with a 60g white chocolate Snowdog for Christmas Day. Worth £50.8m and growing +55.8% in the past four years alone [Nielsen, Dec 2016], more than five million households buy into Nutella every single year. As families spend more time together during the festive period, purchases for the breakfast occasion grow in importance. T h i s Christmas, Nutella will launch a dedicated £1.1m Christmas campaign featuring a new TV creative, festive snowman sleeves on its 400g, 750g and 1kg packs, and digital, social and experiential activations. www.slrmag.co.uk

Feature

Biscuits

TAKING THE BISCUIT

Biscuits is a massive category for local retailers and keeping on top of the latest trends is key to maximising profits. SLR speaks to some of the key players to find out where retailers should be focusing their attentions in coming months.

t will surprise no one to hear the biscuit category is big. In fact, it’s bigger than that. It’s huge. According to Nielsen figures to October last year it’s worth around £2.3bn in the UK, and provides a great opportunity for c-stores to drive sales. But it’s not about stacking them high and selling them cheap. The key to a profitable fixture is tapping into the latest trends, consumer needs and shopper missions. The biscuit market essentially comprises three main sectors: sweet, healthy and savoury. Unsurprisingly, sweet holds the lion’s share of the biscuit market, worth £1.4bn [Nielsen, Aug 2016] while the savoury biscuit category (excluding crisp breads and crackers) has seen over 20% value growth over the last 2 years according to the same data. Despite being a relatively recent development, healthy biscuits continue to hold their own in the market, with a value of £485m [Nielsen, Oct 2016]. As with most categories, it’s the big brands that account for the majority of sales, so let’s take a whistlestop tour around what many of them are up to...

OREO A relative newcomer on this side of the Atlantic, the US megabrand Oreo is now valued at £50m [Nielsen, Aug 2016] in the UK, growing at 14%. “It’s important to note that it is one of the biggest contributors to growth for the sweet biscuits category in the UK, contributing an impressive £11.2m to the category in 2016

alone [Nielsen, Aug 2016]” says Susan Nash, Trade Co m m u n i c a t i o n s Manager at Mondel z International. “In July 2016, the brand extended its flavours range with Oreo Strawberry Cheesecake and Oreo Mint and both have been successful recruiting new consumers to the category and are now worth almost ££4.7m [Nielsen, Jun 2017] combined. Oreo is the world’s number one biscuit brand and in October last year, it launched a public consultation asking the UK to help it decide on its next addition to the range with 43% voting for a biscuit featuring a chocolatey, brownie batter centre in the Oreo cookie. The launch will be supported by a £2.5m spend through AV, experiential, sampling and PR and aims to drive incremental sales to the sweet biscuit category and continue to recruit the next generation of biscuit lovers.

Crunchy Melts – which feature crunchy chocolate chip cookies with a soft melting centre. For those seeking a little more luxury, the cookies can be heated up in the microwave by following the instructions on pack. The new cookies come in 156g multipacks in three variants – Chocolate Centre, Double Indulgence and Soft Cookie Centre.

CADBURY

growth. Launched in August 2015, Soft Bakes has been belVita Breakfast’s biggest innovation to date, already worth £18.2m [Nielsen, May 2017]. belVita’s Soft Bakes range is expanding further with the launch of an indulgent NPD – Soft Bakes Filled. The product is a soft and chewy baked biscuit made from five wholegrains, including crushed buckwheat and oat flakes, with two fillings to choose from – Choco Hazelnut and Strawberry. The range expansion will be supported by a £2m marketing campaign, including sampling, TV ads and in-store activation.

While Oreo may be the new kid on the block, Mondelez’s Cadbury brand is the old master, although it only took its first step into the biscuit arena under Mondelez’s control in April with the launch of Cadbury Roundie. The product blends layers of crispy wafers with thick chocolate cream and is coated in delicious chocolate. The biscuits are available in a multipack of five including milk chocolate, dark chocolate and caramel wafer variants, with the milk chocolate variant also available in a single format. More recently, the company unveiled its second Cadbury biscuit launch – Cadbury

BELVITA belVita Breakfast has lead the segment by expanding into new formats that satisfy consumer need states. It is now worth £80m [Nielsen, Jun 2017], currently showing +6%

NUTELLA B-READY In retrospect, it looks like a no-brainer but Nutella has recently entered the biscuit category with its Nutella B-ready line. Backed by a £2.8m multi-touchpoint marketing investment, the launch is aimed at the many consumers who already love the Nutella brand. The media campaign spans multiple channels including a brand new 30-second TV advert, which hit the nation’s screens recently and will run to mid-October. Levi Boorer, Customer Development Director at Ferrero UK, comments: “Nutella B-ready is a complementary addition to the Ferrero range, offering shoppers more ‘sweet snacking’ solutions throughout the day. We

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Feature

Biscuits

see B-ready as the ideal midmorning snack, containing fewer than 120 calories, while other products – like Kinder Bueno – are much more suited to post lunch snacking. “Our initial UK trial has proved incredibly successful. We ranged at the till in a selection of c-stores and Nutella B-ready ranked as the fourth best performing sweet snacking line during the period. We also found that merchandising the single serve product separately to the multipack drove incremental sales. We’d recommend that the single serve features alongside popular confectionery lines like Kinder Bueno and the multipack format within the biscuits aisle.” Nutella B-ready is available with an RRP of £0.59p (single bar) or £1.99 (six-pack).

MARYLAND Burton’s Biscuit Company is announcing significant investment in its £50m [Nielsen, Oct 2016] Maryland brand over the next 12 months, with a range wide packaging refresh, innovation and a social media campaign. The new contemporary look and feel for Maryland will improve standout and range navigation for shoppers, believes the company, and will come to market with the launch of Maryland Thins; a new addition to the range launching this month. Targeting younger shoppers aged 25 – 45 years old looking for lighter snacking options, Maryland Thins will be available in two flavours, Milk & Dark Choc Chip, and Salted Caramel (rrp £1.49/128g), available in shelfready packaging in case sizes of nine. The new pack design is being rolled out to the rest of the range, supported by digital and social media activity, and TV advertising to be aired in Q1 2018.

“Maryland remains the nation’s no.1 cookie brand, growing at 10% year-onyear [Nielsen, Feb 2017], and gaining an additional 800,000 households in the past year alone [Kantar, Feb 2017] thanks to continued growth of Maryland core and innovative NPD,” says Mandy Bobrowski, UK & Ireland Marketing Director at Burton’s Biscuit Company. “The new designs will ensure Maryland remains relevant and contemporary, improving standout on-shelf and in turn, enabling shoppers to better navigate the fixture, whilst reinforcing the message of Maryland as cookie experts and a beacon brand on-shelf. “Additionally, our new Maryland Thins will enable retailers to attract younger shoppers through new and exciting products targeting afternoon snacking; the second biggest occasion for cookies.”

JACOB’S International biscuit giant pladis recently launched a new TV ad for its Jacob’s brand supporting its sharing backed snacks range, Jacob’s Cracker Crisps. The ad ran during ITV’s Coronation Street and has been received positively, says the company. Steve Monk, Marketing Lead, Savoury at pladis UK&I, says: “We’ve had a great response to Jacob’s Cracker Crisps since its successful launch, outperforming its competitors. Our new advertising drives the very clear product message of combining the crunch of a cracker with the favour of a crisp with an engaging story of a couple’s families meeting for the first time, that many of us will identify with!”

MRS CRIMBLES With the continuing rise in interest in freefrom foods, gluten-free treat brand Mrs Crimble’s has revealed a new characterled brand identity for its entire product range beginning with its best-selling Choc Macaroons – set to bring the brand to life in the free-from fixture. The company unveiled a new brand identity earlier this year that was rolled out across its entire product range, beginning with Choc Macaroons. The new look and feel brings the longestablished Mrs Crimble’s brand to life in the form of a wooden spoon character, evocative of the brand’s baked treats that are made, not manufactured. The beacon brand in the gluten-free market was created over 30 years ago and is now one of the UK’s biggest cake brands. It has been calculated that one of its best-selling Choc Macaroons is eaten every second worldwide. Mrs Crimble’s has garnered a sizeable free-from following, and is looking to grow this community with a consumer-centric brand strategy that focuses on championing glamourous, accessible food and irreverent humour. Rebecca Vercoe, Mrs Crimble’s Brand Controller at owner Wessanen UK, comments: “Mrs Crimble’s believes everyone should be able to have their cake and eat it. Mrs Crimble’s new brand image taps right into her mission: to make joyfully, gloriously and inclusive gluten-free treats.” One in 100 people are currently diagnosed with coeliac disease, according to Coeliac UK, while 13% of the UK’s population currently avoids, or is cutting down on, gluten – the highest proportion in Europe. A further 8% would like to cut out gluten from their diets.

MONDELEZ INTERNATIONAL OFFERS THE FOLLOWING TOP TIPS FOR MAKING THE MOST OF BISCUITS IN STORE: Q Stock bestsellers from the sweet, healthy and savoury biscuits sectors, and ensure the most popular brands are represented to appeal to the largest range of customers Q Ensure you have a clear offering for both top-up and on-the-go shopper missions Q Use manufacturer POS to highlight products, particularly when you introduce new lines Q Make the most of manufacturers’ media investment by stocking and displaying products when activity is running Q Biscuits can link with a number of other categories, such as hot beverages in winter. Consider cross-purchasing opportunities to maximise sales for both ranges and help drive impulse purchases. For example, single serve biscuits can be merchandised next to a coffee machine.

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Feature

Home Cocktails

MIX IT UP FOR PROFIT With almost 20% growth in sales of mixers in the last year, the growing trend for making cocktails at home presents a great sales and profit opportunity for retailers prepared to make it easy for shoppers.

ver since the recession first Harrison. “However, in grocery and took hold, the number of convenience 80% of mixers sold in shoppers shunning a visit to the last year did not fall within this the local pub or restaurant in premium mixer segment. There is still favour of a night in at home a huge consumer desire for a classic, with friends or family has rocketed. Not good quality mixer. Shoppers choose great news for pubs – the latest CAMRA brands they recognise and trust, which data shows an astonishing 29 pubs is why Schweppes remains the number close every week – but the collapse has one mixer brand accounting for 38% presented an opportunity for retailers. of all mixers sold in grocery and One of the most significant growth convenience in the last year.” areas has been home cocktail making. But is it still all about the gin? While it’s all but impossible to Harrison doesn’t think so: accurately measure how much “Dark spirits are experiencing this phenomenon has grown a surge in popularity, in homes across Scotland, it with premium dark rum growth in sales is possible to nonetheless have performing particularly well. of mixers a go by considering the growth The iconic taste of Coca-Cola in the mixers category, products that Classic marries perfectly with dark are obviously purchased purposely for spirits and is traditionally the go-to making mixed drinks. mixer. Increasingly health-conscious The stunning rise of gin as a category consumers are looking for low calorie also points to significant growth in and low sugar options, but without home cocktail making as few drinkers compromising on taste. Coca-Cola will consume gin straight. Zero Sugar is an appealing option for Simon Harrison, Customer those who want a dark spirit mixer that Marketing Director at Coca-Cola replicates the taste of Coca-Cola Classic European Partners (CCEP), says: but without the calories. This trend is “Research shows an increasing number underlined by the soaring popularity of of Brits are choosing to stay in when Coca-Cola Zero Sugar, which is now the enjoying a tipple, with more than half fastest growing cola brand in GB, worth of drinking occasions taking place in £148m [Nielsen, Jul 2017].” the home [University of Sheffield, April One great way to drive basket spend 2016]. Cocktails are enjoyed in bars and help shoppers indulge their by more than half of consumers [CGA home cocktail-making ambitions is Mixed Drinks Report, 2016], and now by merchandising spirits and mixers people are looking to recreate their together on shelf, taking advantage of favourite drinks without having to leave the fact that soft drinks is the only other the house. This trend is reflected by the category retailers in Scotland can site in 19.4% growth in mixer sales in the last the alcohol sections in their stores. year [Nielsen, Jul 2017].” “Spirit and mixer gifting is growing in Great news for retailers as cocktails popularity with more bays and aisle ends are fantastic basket-spend builders dedicated to such displays, especially being, by definition, multi-item drinks. around key calendar moments like Yet while customers are saving money Christmas,” says Harrison. “Mixers are by not heading to the pub, there is also more commonly merchandised evidence that they like to compensate by alongside spirits to tie in with treating themselves to a little affordable seasonal promotions. Moving towards luxury at home when making cocktails Christmas, [Schweppes] will run which means one thing: premium various gift-with-purchase promotions spirits and mixers, which tend to carry that help deliver serves that are premium profit margins for retailers. intrinsically linked with spirits such as “Premium mixers have benefitted glassware and botanical packs helping from the popularity of premium consumers create their perfect mixed spirits and the consumer trend to try drink with Schweppes in the home new experiences and flavours,” says whilst adding theatre to the occasion.”

19.4%

SLR | OCTOBER 2017

FUNKIN BACKS NEW COCKTAIL MIXER RANGE Home cocktail specialist Funkin has added a trio of premium cocktail shakers, making mixing bar-quality drinks at home easy. The trio includes Skinny Mojito, Passion Fruit Martini and Strawberry Daiquiri. Funkin is investing £500,000 to support the launch, marking the brand’s largest outdoor and digital advertising campaign, which will be amplified with social media, PR, national sampling and in-store activity. Shoppers simply need to add spirit and ice, shake and serve. The three-piece shaker has a measuring cap and measure line to allow for the addition of the precise amount of spirit and a strainer to filter a perfectly-chilled cocktail from the ice.

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T H E N AT I O N ’ S ORIGINAL & * FAV O U R I T E T O N I C

New skittle shaped bottle and brand redesign. Available in 1L PET bottles and 150ml can multipacks. Supported by a £6.6 million marketing campaign. G E T I N C ON TAC T TO F I N D O U T MOR E AT C ON N E C T @ C C E P.C OM OR C A L L 0 8 0 8 1 0 0 0 0 0 0.

THE U LT I M A T E MIXER

*Schweppes is the #1 branded product for tonic water. Based on Nielsen volume and value MAT 02/09/17 © 2017 European Refreshments. All rights reserved. SCHWEPPES, the FOUNTAIN DEVICE and the 196 GRAPHICS are registered trademarks of European Refreshments.

Tea

Feature

HOT TO TROT

It’s that time of year again when hot drinks come into their own, and retailers are spoilt for choice when it comes to high quality tea lines to tempt their shoppers with.

66,000

TYPHOO JOINS ETHICAL TEA PARTNERSHIP Typhoo Tea, the second largest tea producing company in the UK, is helping to improve the lives of tea workers worldwide by joining the Ethical Tea Partnership, a not-for-profit organisation aiming to achieve lasting positive change in the tea sector. The move is aimed at further improving the sustainability of tea production and the lives of tea workers across the industry. “At Typhoo, our commitment to sourcing responsibly in an ethical and safe manner is of high importance, says Somnath Saha, CEO of Typhoo Tea. “We take pride in knowing where our tea is from, how it is plucked and the working/living conditions of our workforce and aim to help transform and protect the lives of children and young people living in tea communities”.

Cups of tea the average drinker consumes in a lifetime

67%

Scottish tea sales coming from top 4 brands

he world may have gone coffee mad in the last five years or so but Scotland remains staunchly loyal to the traditional cuppa. Tea remains a massive category, accounting for sales of over £0.5bn annually [Nielsen, Jan 2017] with around £33m of that going through convenience. The average tea drinker will slurp their way through an astonishing 66,000 cups in their lifetime! But even in a category as traditional as tea, evolution still occurs and Tetley, the runaway category leader in Scotland, predicts that by 2027 non-black tea will be as popular as black tea. Speciality teas are growing and they are growing fast so it’s important retailers take note. Whether it’s a strong breakfast brew at home to kickstart the day, or a refreshing cuppa in the office midafternoon, there are several reasons for Scottish shoppers to pick up a box of their favourite teabags from their local store,” says David Rich, Channel Business Manager UK & Ireland for Twinings. “However, for the 84% of the population who are loyal tea drinkers [UK Tea & Infusions Association], there’s never been more choice to meet the changing taste of their favourite tipple, with an explosion in flavoured, speciality and healthy teas.” Of course, it’s not just tea that is driving growth in sales of hot drinks with everything from coffee, pods and chocolate to the oxymoronic cold hot drinks liked iced coffee playing their part. What that means is that the hot drinks fixture is becoming increasingly complex to range, merchandise and manage. A good rule of thumb however, is to follow the simple advice offered by Tetley: 67% of tea sales come from the top four brands – Tetley, Scottish Blend, Twinings and Yorkshire Tea – so focus an equivalent

SLR | OCTOBER 2017

TOP 4 TEA BRANDS IN SCOTLAND Q Tetley – 41% Q Scottish Blend – 13% Q Twinings – 7% Q Yorkshire Tea – 6% Nielsen, Jun 2017

amount of space on them and you won’t go wrong.

MARKET TRENDS It’s worth noting that the value of total tea sales in the UK declined by 3.6% in convenience [Nielsen, Jun 2017] but that was driven more by deep-cut price discounting on standard tea rather than falling volume sales. However, it is the emerging category of premium tea – incorporating speciality, green and infusions – which is driving value back into the market. Premium teas account for 10% of tea sales in convenience, with speciality tea growing by 1.6% and flavoured green teas by over 20% annually [Nielsen, Aug 2016]. The trend for premiumisation, which was first observed in the coffee sector, is now being witnessed in the tea category with consumers no longer accepting of a bland, value teabag in their drink.

RANGE & MERCHANDISING ADVICE The key varieties in the sub-sectors are as follows and this advice should be used to help range your fixture: 2 best-selling Speciality Black teas: English Breakfast and Earl Grey 2 best-selling Green Teas: Pure Green and Green & Lemon 2 best-selling Herbal Infusions: Pure Peppermint and Pure Lemon & Ginger According to Twinings, retailers should lay out their tea fixture according to sectors, separating out standard and premium teas. Within premium teas, retailers should merchandise all speciality, green and infusions packs in individual blocks making it easy for shoppers to find what they want. www.slrmag.co.uk

BOUGHT BY MORE HOUSEHOLDS THAN ANY OTHER TEA BRAND*

*Kantar 20.5.2017

UTC

ASHES TO ASHES When a press release starts: “At comparethecoffin.com we have had many unusual requests”, you simply must read on. So that’s exactly what our resident coffin-dodger did. Turns out that comparethecoffin does exactly what it says on the casket, supplying what it calls “high-quality coffins, direct to the public at significantly better prices than funeral directors.” The scourge of Co-op Funeralcare, no doubt. Anyway, the reason why these dealers in death had gotten in touch with the auld yin was not to see if he was in the market for one of their fine wares, but just to let him know about one of the more unusual requests they had just received for a tailor-made coffin. The company was allegedly contacted by one Sameera from Manchester who was looking for something for her mother, Hazel – who is still with us, by the way. Hazel smokes. In fact, Hazel smokes quite a lot, and her brand of choice is the old Benny Hedgehogs. Working with Sameera, the company set about knocking together a touching little coffin for Hazel – only to be told by B&H owner JTI that they weren’t happy with the idea of having their brand linked with a dead chain-smoking Mancunian, even if she isn’t dead yet. Not a company to be put off by minor setbacks like trademark infringement however, Comparethecoffin duly reworked the branding a bit and UTC thinks you will all agree that there could be no chance of readers mistaking this Hazelsized gold Hedges & Benson coffin for a popular brand of premium cigarettes. As a final touch of class, the company is also making a scatter-tube to look like an individual cigarette so that Hazel’s ashes can be scattered at a location of the family’s choosing after her cremation. Now all that’s required to bring the heartwarming story to a conclusion is Hazel’s demise.

WATER PALAVER FOR GATORADE UTC has always been a Usain Bolt kinda guy, so he had a chuckle to himself when he learned that sports drink Gatorade has agreed to pay £220,000 to the state of California over an app called Bolt! which featured a character based on the Olympic sprinting superstar. The game saw Bolt enhance his performance after drinking Gatorade but slowing down when he drank water. Naughty Gatorade. Attorney General Xavier Becerra said the game, which was downloaded 2.3 million times, made “misleading statements” about water and that it advised players to “keep your performance high by avoiding water”. “Making misleading statements aimed at our children is beyond unlawful, it’s morally wrong and a betrayal of trust,” added Becerra. “It’s what causes consumers to lose faith in the products they buy.” Almost half the settlement will be used to fund research and education into water consumption and nutrition in young people.

SLR | OCTOBER 2017

WE’RE NOT SWALLOWING THAT

When you’re selling something as unsexy as toothpaste with charcoal in it, you’ve got to work a bit harder with your marketing, so UTC was duly impressed by the headline in a press release from White Glo – ‘Doctor Recommends Brushing Teeth After Oral Sex’. Thinking he had clicked on a link to spoof news website The Daily Mash, the old boy was taken aback to find that the release was genuine and not just another bit of Trump fake news after all. White Glo Deep Stain Remover Activated Charcoal Whitening Toothpaste (to give it its Sunday name) could apparently help reduce STI risks. UTC refuses to be drawn on what he made of this bombshell, other than to reiterate his commitment to Dentu-Grip and Euthymol as they’d never let him down yet.

MODERN LIFE IS RUBBISH This month’s instalment of ‘sales-pitch-dressed-up-asresearch’ is from property sales specialists RetirementMove who have been looking into what British grandparents think is great about modern life, citing October 1 as ‘National Grandparents Day’. The research, they say, is a welcome antidote to the ‘back in my day’ approach favoured by the likes of UTC. We tested RetirementMove’s findings by comparing them with UTC’s favourite three things about modern life. UTC first: Q Famous Grouse Q Golden Virginia Q William Hill Compare this with the survey’s conclusions: Q Email Q Digital cameras Q The internet The auld yin merely snorted brusquely before admitting that he did occasionally put the internet to good use when Mrs UTC was out at the bingo. Commenting on the survey, RetirementMove’s Head of Marketing, Rosie Beasley, said something that we can’t be bothered quoting. www.slrmag.co.uk

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