SLR November 2020 edition.

PETE CHEEMA

Scottish Local Shop Report

SEAN RUSSELL Retaining new customers key

NOVEMBER 2020 | ISSUE 211

WWW.SLRMAG.CO.UK

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ONLINE FIRST Online to top in-store this Christmas

BIG ENERGY

Take-home packs in growth

MEDICATION TIME Covid to drive OTC sales

THIS YEAR’S MODEL?

Why the sudden rush to franchising and commission operator models?

Register for the SLR Rewards Virtual Festival of Excellence! www.slrawards.com SLR November 2020.indd 1

06/11/2020 11:04:33

100% RECYCLED PLASTIC B TTLES

BY THE END OF 2022

*

To find out more about our work towards a more sustainable planet visit www.britvic.com The plastic bottles of all Britvic owned and PepsiCo branded products, sold by Britvic in Great Britain, are to be made entirely from recycled plastic by the end of 2022

*

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November 2020

Contents

Contents ISSUE 211

NEWS p4 p5 p6 p7 p8 p9 p10 p16 p18 p20

Wholesalers Government’s reinstatement of a 20% VAT rate on PPE branded ‘potentially dangerous’.

Symbol Groups Nisa unveils a new smaller store format at its virtual expo.

Community Retailing New award honours industry legend Raj Aggarwal.

Wellbeing Industry charity retailTRUST warns of a ‘mental health storm’ brewing in retail.

Tech Costcutter launches a new predictive analytics data insights portal for its retailers.

Charity GroceryAid sees a 12% rise in the number of colleagues seeking its help.

News Extra Wholesalers Is the latest government funding too little and too late to stave off disaster for wholesalers?

Product News Seconds out for a new Lucozade Sport promo.

Off-Trade News Tennent’s taps into the zero alcohol trend.

Newstrade NFRN reminds members its Covid-19 Hardship fund is still there to help them.

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INSIDE BUSINESS p21 Research Digest Online spending looks set to overtake in-store sales this Christmas. p22 Scottish Local Shop Report There are still plenty of positives to be found in an extremely challenging year. p23 Opinion James Lowman The ACS boss offers some timely advice on coping with a second wave of coronavirus. p24 SLR Rewards This year’s event will be held virtually for the first time in its near 20-year history. p26 Symbol Spotlight Costcutter The symbol group is focused on turning new shoppers into lifelong customers. p30 Hotlines The latest new products that suppliers want to see on your shelves. p50 Under The Counter The Curmudgeon-in-Chief doesn’t have much time for America’s Commander-in-Chief.

FEATURES p32 Vaping The category is in strong growth once more, fuelled by the Menthol Ban and the effects of Covid-19. p38 Sports & Energy Drinks There’s been a change in consumption patterns thanks to coronavirus. p42 Forecourts There’s plenty of activity rejuvenating the sector, despite further Covid restrictions. p46 Winter Products The over-the-counter opportunity could be massive this year. p48 Tea Britain’s favourite hot drink remains a vital footfall driver for local retailers and the category is in strong growth.

ON THE COVER p14 Operating Models Why the sudden rush to find alternatives to the symbol group trading model?

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News WHOLESALERS Reintroduction of 20% rate ‘potentially dangerous’

No-purchase cashback proposed Shoppers will be able to get cashback in stores without buying anything if Government proposals to combat a lack of access of cash get the go-ahead.

The plans are intended to tackle the growing number of “cash deserts” – areas with few or no bank branches and ATMs. This comes as new Ubamarket research revealed that 50% of Brits haven’t used cash since the start of lockdown in March.

Sugro holds first conference virtually Wholesale buying group Sugro has hailed its first-ever trade show and networking event a success after a tightening of lockdown restrictions forced it to switch to a virtual format at two weeks’ notice. The event, which featured online interviews and panel discussions, was attended by over 250 delegates who also

Wholesalers ‘kicked when down’ by VAT on PPE Wholesalers have warned that the Government’s reinstatement of VAT on personal protective equipment (PPE) will hurt businesses and put people at risk.

The Treasury cut the rate on PPE to zero on 1 May “to relieve the burden of VAT on the price of purchasing PPE used for protection from coronavirus by front line workers”. It said the cut was primarily aimed at care homes, that can’t recover VAT due to their VAT exempt status, but would “benefit all consumers”.

The Government has since set up a portal for care homes to source PPE, but this can’t be accessed by other businesses and the public, who now face a 20% price hike from 1 November.

This comes just as the country braces itself for a second wave of

coronavirus cases and increased lockdown restrictions.

James Bielby, Chief Executive of the Federation of Wholesale Distributors, said: “Wholesalers have been trading at a loss for months because of the restrictions on their hospitality customers. Some of them have lost 80% of their business and are struggling to maintain their contracts to schools, hospitals and care homes.

“To burden them with a 20% increase in the price of equipment that they rely on to carry out their operations is kicking them when they are down and it will only increase the existing risk to food distribution to vulnerable groups.”

Bielby said the reasons for introducing a zero rate hadn’t changed and expressed disappointment that it wasn’t being continued for as long as Covid restrictions on trade are in place.

Bestway Wholesale boss Dawood Pervez slammed the decision as a surprising and potentially dangerous move that will be of considerable concern both to retailers and the public.

He said: “An increase of 20% is a significant amount. There is little doubt that increases in price will slow demand and act as a barrier to buy PPE for some, at a time when many peoples’ income has been reduced due to the pandemic, and every penny in their shopping basket counts.”

took part in over 700 networking meetings between members and suppliers over three days.

Nisa charity’s biggest ever funding giveaway

LOTTERY Camelot celebrates million pound ticket stores

PARCEL COLLECTION

Gold playstations for lottery retailers with the Midas touch

Royal Mail’s new parcel pick-up service ‘severe blow’ for retailers

Nisa’s Making a Difference Locally charity has launched its biggest ever round of funding giveaway. The Heart of the Community Awards encourages Nisa retailers to nominate a local project or cause to receive a donation of up to £5,000 and will see a total of £150,000 donated to around 30 good causes across the country. Nisa retailers can make nominations until 20 November on bit.ly/3j9eBFN.

Convenience boosts Tesco Tesco’s half-year profits shot up by over 28% helped by strong growth in its convenience retail operation, according to the supermarket giant’s interim results. Pre-tax profits for the 26 weeks to 29 August were £551m, a 28.7% year-onyear rise. Convenience sales increased by 7.6%, with Tesco Express and One Stop stores in neighbourhood locations

Camelot is rolling out limited-edition gold playstations to celebrate stores that have sold a winning ticket that’s been worth at least £1m.

The first three gold playstations of 2020 alll went to stores south of the border: The Anker Service Station in Nuneaton, The MFG Service Station (Esso) in Ollerton, and Nicholsons in Stalham Green.

Store manager at Nicholsons, Melissa Gales, was presented with her store’s gold playstation by the very winner to whom she sold a life-changing ticket. Terry Falgate won £1m on EuroMillions in November last year after paying a visit to the store.

Melissa said: “It’s really nice to have had a big winner here.

The gold playstation will definitely make the store feel more lucky for our National Lottery players. It’s also really great that every ticket we sell goes to supporting Good Causes – it’s one of the best things about the National Lottery.”

The Royal Mail has announced a new parcel collection service.

Collect Plus will see postal workers pick up packages directly from customers at their doors for a fee of 72p per parcel, in addition to postage costs.

The Federation of Independent Retailers (NFRN) said the service will be a “severe blow” to many of its members who already offer a parcel collection and return service.

Ironically, a number of these will be taking back packages on behalf of PayPoint’s similarly-named CollectPlus service.

NFRN National President Stuart Reddish said: “Parcels are an important source of revenue for many of our members, and this is an unwelcome move at such a challenging time.

“Independent retailers have really stepped up to the mark during the Covid-19 pandemic, going above and beyond to serve their communities, and should be supported as much as possible.”

performing particularly well.

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News SYMBOL GROUPS Nisa caters for sub-1,000sq ft stores

Nisa reveals new smaller store format The new Nisa Express store format has been officially unveiled at the symbol group’s 2020 virtual expo.

Catering for retailers operating in more compact spaces, the design for stores up to 1,000sq ft has been developed with three different format options available.

Covering food centric, forecourt and essentials, each design differs to meet the demands of the shopper with format and range tailored for the specific market.

The food centric option is the focus of the store exhibited at Nisa Expo and offers a premium provision based around the on-the-go and meal for tonight customer.

The proposition is particularly designed to service the cash rich, time poor consumer, living predominantly in city centres.

Key to the food centric format is the enhanced food-to-go offering, premium coffee offer and fresh focus complemented by the latest vending machine offers, seating area and ontrend category offering.

DPD teams up with Collect+ Parcel delivery firm DPD has confirmed that over 3,000 Collect+ parcel shops are to be added to the DPD Pickup network, as part of a deal with PayPoint, the owner of Collect+.

The new deal will expand the DPD Pickup network to over 6,000 stores nationwide, with 3,000 Collect+ outlets being added. As a result, 97% of the UK population will now be within five miles of a DPD Pickup store.

Moss is R&D boss Snacking giant pladis has appointed Jennifer Moss as global Chief Research and Development (R&D) Officer.

Moss will join the pladis

The essentials version of Nisa Express serves the needs of the average below 1,000sq ft store, largely based in neighbourhood environments.

This format ensures all the requirements of the small store are maximised to their potential including a generous chilled range, BWS and a focus on value.

The forecourt concept store combines the current market trends with where the market is heading,

achieved by establishing all the key propositions under one roof whilst ensuring the core theme is the right focus for a particular site.

Head of Format at Nisa Darren May said: “Our new Nisa Express format is designed to meet the needs of Nisa partners who operate smaller stores but who want to ensure their business is contemporary, has the right look and feel and provides their customers with the best shopping environment.”

leadership team to focus on a “cutting-edge approach to innovation” to build a pipeline of new products to meet the needs of consumers. Her extensive background in FMCG and R&D spans nearly three decades.

Spar wholesaler unveils new trading model Midlands-based Spar wholesaler and retailer AF Blakemore has launched a new commission operator store

WHOLESALERS New initiative lets retailers trial products risk-free

Brand Box: free stock from Unitas Unitas Wholesale is offering free stock to retailers through its new ‘Brand Box’ product trialling initiative.

Postponed until now due to the coronavirus outbreak and part of the buying group’s Plan for Profit scheme, Brand Box lets retailers range NPD risk-free in their stores.

Each Brand Box campaign will include products selected by Unitas in partnership with its suppliers. These will either be the latest NPD or will be taken from the Plan for Profit core range.

The first campaign begins at the end of October and will give 1,000 retailers the opportunity to trial products from brands including Maltesers, Pot Noodle, Red Bull and Sharp’s Doom Bar. Each campaign will be underpinned by Picture Portal technology to enable participating brands to see how Brand Box has helped in getting its product merchandised on the shelves of independent retailers.

John Kinney, Unitas Wholesale Sales & Marketing Director, said: “We’ve developed a platform that reduces the risk for the independent retailer to support NPD at the earliest opportunity, allowing them to compete locally.”

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TECH

model. The operators of the

TRDP’s MediaMaster hits 500 store mark

former company-owned Spar

The Retail Data Partnership’s MediaMaster screen service is now live in more than 500 stores.

The service, which launched in June 2019, lets retailers advertise promotions from wholesalers and their own local content at the tillpoint.

In a study of ads placed over a 35-day period, in 106 stores with 209 screens, average sales performance was £117.05 higher in stores who carried ads on MediaMaster screens than in stores of the same fascia who didn’t carry the screens.

with the commission operators

Leominster in Herefordshire are self-employed retailers working with the wholesaler’s support. AF Blakemore owns the business, responsible for developing sales and profitability within the store.

New Border vacancy takes the biscuit Border Biscuits is on the hunt for their first ever Master Biscuitier.

The successful candidate will launch new biscuits from kitchen table to factory and help drive innovation, quality and sustainability throughout the business. The job offers a salary of up to £40,000 and, as an added sweetener, the post holder will get to taste test a lot of biscuits.

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06/11/2020 11:05:10

News COMMUNITY RETAILING New award honours industry legend

Trade groups seek clarity on tobacco stockpiling The ACS and FWD have jointly asked the Government to clear up the status of tobacco forestalling regulations, which usually ensure retailers don’t stockpile products to cash in when duty goes up. With no Budget likely, there is confusion over the status of the regs. The trade bodies called for a lifting of pre-Budget allocation rules to ensure businesses can get enough stock to meet demand.

Barcode is back GroceryAid’s summer party and celebration, Barcode Festival, will return on 8 July 2021 at Magazine London. Headliners Bastille, Dizzee Rascal, Becky Hill and Scott Mills – who were all due to perform at this year’s event – have already

Raj Aggarwal trophy will recognise outstanding community retailers A new trophy marking the legacy of award-winning store owner and wellknown convenience industry figure Raj Aggarwal is to be awarded to retailers who have been exceptional in community retailing and helping their fellow retailers.

The trophy was presented to Raj’s widow Sunita Aggarwal by ACS boss James Lowman in recognition of Raj’s incredible contribution to his local community and his tireless efforts in sharing ideas and helping other retailers to improve their businesses.

Lowman said: “We are delighted to be able to create the Raj Aggarwal Trophy to mark Raj’s enormous contribution to the people around him, the community that he served

and the retailers that benefitted from his guidance. We hope that this trophy will make something positive out of Raj’s legacy for years to come.”

In receiving the trophy, Sunita Aggarwal has asked for the award to be given to retailers that embody the characteristics that Raj will

be remembered for – unwavering commitment to the local community and a willingness to help others.

Raj died from Covid-19 in April, aged 51. A former SLR Rewards judge, he was an active NFRN member and sat on the Independent Board of the ACS. When the coronavirus first took hold in the UK, he donated trays of bread to local charities supporting the homeless. In one of his final social media posts, Raj was seen dropping off supplies for NHS workers at a local hospital.

The Raj Aggarwal trophy will first be presented to an outstanding community retailer at next year’s ACS Heart of the Community conference in October.

been confirmed. Previous Barcode Festivals have all sold out and tickets are already in high demand for 2021. Visit barcodefestival.co.uk to find out more.

Owner of Tesco meat supplier in bribery scandal Campaigners renewed calls for Tesco to ditch one of its main meat suppliers, JBS, after parent company J&F Investimentos agreed to pay a penalty of $256m to resolve an investigation by the US Department of Justice. The investigation revolved around a J&F scheme to pay millions of dollars in bribes to government officials in Brazil, in exchange for obtaining financing and other benefits for J&F.

Forest Feast founder honoured Kestrel Food’s Founder and Managing Director Michael Hall has been awarded an MBE in the 2020 Queen’s Birthday Honours List. The award was granted for his services to Economic Development in Northern Ireland.

Hall founded Kestrel Foods, which employs 80 people, in 1996. The company is behind the Forest Feast and Acti-Snack

CHARITY Off-sales chain is doing it for the kids

One-O-One backs Cash for Kids One-O-One Convenience Stores has named Radio Clyde Cash for Kids as the beneficiary of its Charity of the Year Partnership.

The move is one of several community based charitable initiatives launched by the retailer since March.

Paul Stirling, Group Retail Director at One-O-One commented: “We know that Cash for Kids is a wonderful charity that will be wholeheartedly supported by our colleagues in stores who will be fundraising through various innovative ways.

Also, by our loyal customers who will, I am sure, embrace the opportunity to raise funds and donate to a wonderful cause which is really close to home in its ambitions to support local kids.

“We hope to raise a substantial amount of money that will make a real difference to the charity whilst instilling some great pride within our staff knowing they will be making a real difference to local children most in need.

“We look forward to supporting Cash for Kids over the year ahead, it’s an exciting partnership which our business can’t wait to get behind.”

Debbie Fraser, Regional Charity Manager at Radio Clyde Cash for Kids, added: “We are absolutely delighted to be working with One-OOne and know that together we can make a huge difference.

“Child poverty in Glasgow and the West of Scotland is at its highest and through the support of corporates like One-O-One we can ensure children living in some of the most disadvantaged areas receive food and activities throughout the school holidays.”

PAYMENT SERVICES

PayPoint renews EG deal as it quits Romania PayPoint has extended its partnership with Asda’s new owner, EG Group.

The move will see the continuation of PayPoint’s bill payment and parcel services in nearly 400 of EG Group’s forecourt sites across the country.

Danny Vant, Client Services Director at PayPoint, said: “We’re delighted to renew our partnership with EG Group. The extension of our partnership means customers can continue to access our bill payment and parcel services at key forecourt outlets across the country.”

The news came as PayPoint announced the sale of its Romanian operation to Innova Capital for around £47m.

The Romanian business has been a member of the PayPoint family for 13 years and made a pre-tax profit of £6.8m in the last financial year.

brands.

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News STAFF WELLBEING retailTRUST highlights stress factors for shopworkers

‘Mental health storm’ brewing for retail, warns industry charity The UK retail sector has a once in a lifetime opportunity to prevent a potential mental health storm that could impact millions of workers, according to retailTRUST. The industry charity has launched its ‘2020 Health of Retail’ report, which identified three key factors causing stress and anxiousness in UK retail workers: Q Financial instability. This year so far 13,867 shops have closed, up 24.8% on same period last year, non-food retailers have lost more than £9 billion in sales, and 125,000 retail jobs have been lost.

Q Uncertainty and the fear of the unknown, caused by the threat of redundancy. The Institute for Employment Studies reported 700,000 UK employees at risk

of being made redundant in the second half of 2020. Workers are also bombarded with negative reporting about the future performance of the UK retail sector.

Q Social disconnect at home and work.

Lockdown restrictions have led directly to an increase in physical, verbal and racial assaults from customers and a ‘hero to zero’ change in public opinion about store workers.

The report’s author, Dr Adrian Massey, said: “Socioeconomically, the pandemic has been linked with a host of hardships: isolation, bereavement, alcohol and drug use, domestic violence, financial strain and criminality.”

LIGHT

SAVINGS Suntory Beverage & Food GB&I has teamed up with Energy Saving Trust and retailer Amit Patel to show how simple sustainability-focused changes to your store can reduce overheads and deliver real savings – making them truly #GoodForBusiness in every way.

In our first visit, we identified some “quick fix” changes that could start to impact the sustainability credentials of Amit’s store. Now, we have started to look at some larger changes that can deliver real impact.

STORE PROFILE

While for some stores, the pandemic might make it difficult to implement larger changes, for others its an ideal time. Amit altered the layout of his store to make it safer for his customers, so he was able to close parts of his store to quickly and easily change his lighting in store.

RETAILER Amit Patel STORE NAME Premier Town Street, Sandiacre STORE SIZE 900sq ft

AFTER

BEFORE

AFTER

APPOINTMENTS Expanding home delivery platform makes more key hires

Two new faces at Snappy Shopper Snappy Shopper has make another two key appointments following the recent naming of the former Nisa Head of Marketing Philippe Rondepierre as its new Marketing Director.

Ex-Deliveroo executive Alice Wookey Pamela McLaren Alice Wookey joins the fast-growing home delivery platform as Key Account Controller while Pamela McLaren takes on the role of Marketing Controller Wookey, who has a background in marketing and PR and worked for Deliveroo for four years, latterly overseeing commercial operations for most of Scotland and north-east England and handling high-value accounts for regional and Scottish national chains, also has a Masters in Gastronomy from Queen Margaret University, Edinburgh.

McLaren will be responsible for the development and implementation of Snappy Shopper’s marketing strategy, brand and service.

She joins from Hutchison Technologies where she was Head of Sales and helped deliver over £10m in revenues in three months.

Prior to this McLaren was Head of Subscriptions at DC Thomson. Her responsibilities included administering strategic projects and B2C marketing programs, building infrastructure for integrated marketing plans, marketing metrics and transformation of all active customers.

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INSTALLING NEW LED PANELLED LIGHTING COULD REDUCE HIS LIGHTING COSTS BY 50% - IN AMIT’S CASE, AROUND £265 – A YEAR “The first thing people notice when they walk in a store is whether it’s bright and welcoming, or dark and foreboding,” said Jemma Healy, category controller at SBF GB&I.

strong business case to do so. Top-line estimates about Amit’s store show that installing new LED panelled lighting could reduce his lighting costs by 50% in Amit’s case, around £265 – a year”.

“Not only can great lighting make a store look welcoming, choosing ecofriendly lighting options can also save a tremendous amount of money.”

WHAT WE CHANGED By taking the old tubes out and replacing them with 20 low wattage and energy efficient LED panels*, we were able to lift the lighting level by 30% and improve the spread of light to the shelves.

THE CURRENT SITUATION The main area of Amit’s store was lit with 28 traditional 6ft long 30W tube lights, installed around 10 years ago.

These lights weren’t inviting people to walk to the back of the store or showcasing the products on his shelves, potentially stopping Amit from maximising his takings. The same lights were being used in the storage room.

These lights were using almost 3,300kWh of energy, and costing Amit around £530, each year.

A SUSTAINABLE FUTURE “Lighting can make up a significant proportion of a retail business’s energy consumption,” said Andrew Tod of Energy Saving Trust.

“There are many reasons store owners might put off replacing their old, inefficient lighting, but there is a

We also introduced two passive infrared (PIR) sensors for Amit’s storeroom – meaning the lights in those rooms would only come on when they sense movement, further helping to reduce energy use.

“By introducing new movement sensors we were able to introduce an even more sustainable system,” adds Tod. “Changing over the lights in Amit’s store took only two days, but the impact on his bills and the long-term energy use of his store will last much longer,” says Healy.

“This really is a change that, in every way, will be #GoodForBusiness”. * Actual products fitted: KLED27PNL Kali-Pro LED Panel, 27W, 595x595mm; 2x Smart control PIR microwave movement control

To get regular updates on the project, follow SBF GB&I on Twitter at @suntorybf_gbi

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News TECH New partnership helps retailers cut costs and boost sales

FSS consults public on future strategy Food Standards Scotland (FSS) has opened a public consultation on its proposals for

Costcutter launches data insights portal

its new strategy for 2021-26. The draft strategy identifies FSS’s proposed key priorities for the next five years. The consultation runs until Friday 18 December 2020 and seeks views on FSS’s ambition for Scotland’s food environment and its proposed approach for delivering the new strategy.

EU bans dairy-like names for vegan products The European Parliament has rejected a proposal to ban the use of words like ‘sausage’ and ‘burger’ to describe vegan and vegetarian products. However, in a surprise move, MEPs

Costcutter Supermarkets Group (CSG) has announced a partnership with predictive analytics specialist Data Revolution that will let the symbol group provide retailers with insights on shopper trends, pricing, range and promotions, to help them manage costs and maximise sales.

The move follows a successful trial of a predictive analytics portal across 100 Costcutter stores in the south of England late last year.

David Morris, CSG IT Director, said: “Our trials, initially in stores who operate our CPOS system, took place before the Covid crisis and the results were outstanding, with retailers reporting increased sales,

improved margins and achieving higher rebates, as a direct result of the data they could access.

“We’ve used the lockdown period to focus on analysing those results and refining the offer, to give our retailers the best possible insights and advice. Predicting what will be their bestselling lines, what ranges they can look to rationalise, what promotions deliver the best results and what ordering and pricing decisions will maximise their sales and help manage costs. A dedicated portal will be introduced to retailers through their BDM in future, who will provide detailed guidance and recommendations.

“It will add projected performance data on shopper behaviour to the rich insights we already provide retailers on their customers, through our Shopper First programme. Retailers will be able to access segmented data, tailored to their store type, location and demographics.”

Plans for CSG’s predictive analytics portal will see each retailer provided with all their relevant data, actionable insights and recommendations in one place. Data will be refreshed and updated weekly and will enable the Group’s BDM and field-based teams to provide additional expert guidance to each store owner based on the data.

also voted to ban any indirect reference to dairy products for plant-based foods.The decision means that descriptions such as ‘yoghurt-style’ or ‘cream imitation’ will not be allowed.

Tesco goes with the Flow Following successful trials, record’s traffic light FlowControl system is rolling out across 1,100 Tesco stores across the country.

FlowControl is being supplied and installed on customer entrance and exit doors at all store formats of Tesco stores including Express, Metro, Extra and Superstores. This will help Tesco comply with Covid-19 social distancing guidelines and ensure customers and staff feel safe during the pandemic.

Arjowiggins wraps up sustainability problem Paper manufacturer Arjowiggins has launched a new sustainable alternative to plastics in packaging. Sylvicta is a translucent, functional barrier paper that has been found to preserve the quality of food and cosmetics just as well as conventional plastics. The paper – which prevents oygen passing through it – is fully recyclable, compostable and made from

WHOLESALERS Goldney brands saving “a disgrace”

Unitas boss condemns Tesco’s bumper rates relief Unitas Managing Director Darren Goldney has lashed out at the Government’s £600m award of Business Rates relief to Tesco, after the supermarket announced a £551m profit during the coronavirus outbreak.

Goldney said: “This is a disgrace.

The near 30% half-year rise in Tesco’s profit suggests that over the full year it could make an extra £600m – almost exactly the same as the amount of taxpayers’ money the Government is handing over to them.”

Unitas represents 170 regional food distributors; many have lost up to 80% of their custom because of lockdowns, and fear there is worse to come.

Goldney said it was “absurd” that large supermarket chains should get financial support that enables “huge” profit growth. Highlighting that the hospitality and health care sectors along with other businesses like care homes rely on wholesalers, he said it was “equally absurd” that the Government doesn’t understand the need to keep that supply chain viable.

He called on the Government and businesses that have received a coronavirus “windfall” to “do the right thing”.

Unitas is a member of the Scottish Wholesale Association.

Its Chief Executive Colin Smith said the situation “highlights and demonstrates graphically the mistakes government(s) have made in the rush to support industry and where more direct and knowledgeable targeting is required going forward.”

Darren Goldney

VAPING

UKVIA appoints John Dunne as Director General John Dunne has been confirmed as Director General of the UK Vaping Industry Association (UKVIA) after a vote by the trade body’s full membership.

Dunne was previously responsible for the UKVIA’s member recruitment activity, where he oversaw significant growth in membership levels.

He is also the UKVIA’s primary media spokesperson on television, radio and in print.

Dunne has a long and well-respected background in European vaping and has held senior positions at some of the sector’s leading firms.

In addition, he has advised industry analysts and financial institutions on the vaping industry.

The new role has been established to support future planned growth of the UKVIA, as it extends its role and influence, while building its membership base significantly.

renewable raw materials.

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News CHARITY GroceryAid sees 12% rise in colleagues seeking help

GroceryAid’s impact revealed GroceryAid has launched its latest Impact Report, which reveals that in 2019/20 it assisted over 17,000 colleagues from manufacturers, convenience stores, wholesalers, supermarkets, distribution, sales and support functions.

Almost three-quarters of those helped (73%) were of working age.

The industry charity distributed £4.25m in financial assistance, helping 3,183 colleagues as well as providing emotional and practical support through its round the clock helpline services.

Last year, 13,871 colleagues contacted the 24/7 Helpline. This is a 12% increase in colleagues needing practical and emotional support across a broad range of topics.

Employers remain the top referrer to the charity for colleagues in need with the main reason for applications being financial hardship triggered by illness.

This is the first time the GroceryAid Impact Report has been released digitally. Visit groceryaid.org.uk/impact-report to view it.

GroceryAid President Charles Wilson commented: “The last year saw GroceryAid support more colleagues than ever before and we take great pride in that achievement. As we look forward, Covid-19 has had a huge impact on the nation and on our trade. We expect rising demand for our services, and we are geared up to help colleagues who need assistance from GroceryAid.”

CONSUMER ON PACK OFFER

TRADE ASSOCIATIONS ACS stalwart Chamberlain bows out

That’s Paul folks!

Commercial Director Paul Chamberlain will leave ACS in March 2021.

Chamberlain has been in post for over 13 years, joining ACS in 2007 after several roles in the news and magazine publishing industry.

In his time at ACS, he led significant growth in the supplier membership base, headlined by the Premier Club which currently includes over 40 supplier members looking to engage with the convenience sector.

He also planned and developed a range of events including international and UK study tours, conferences, bespoke inductions for suppliers, and more recently the ACS Live sessions.

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ACS Chief Executive James Lowman said: “Paul has been incredibly important to the growth and success of ACS during his time here, delivering enormous value for suppliers through industry leading events, networking opportunities and building long-term relationships.

Paul’s work has enabled ACS to push ahead, invest in the best possible support for retailers and represent our members effectively.”

Chamberlain added: “I have truly enjoyed my 13 years at ACS. I leave James and the team with many thanks for their support and friendship and look forward to watching ACS continue to thrive in for coming years.”

STOCK UP NOW

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News Extra

Wholesalers | An Industry In Crisis

NewsExtra A FRESH LOOK AT VAPING – P32 WHOLESALERS The Scottish Government steps in as businesses ‘haemorrhage money’

Convenience Matters with the SGF The fact that convenience stores have created a safe space for customers to shop has been one of many remarkable achievements during the pandemic – particularly given the constraints of space within a typical store. Convenience stores have not become hotspots for the transmission of Covid-19. But complacency is a dangerous enemy, never more so than in these dangerous times.

We seem to be in a new phase of the pandemic, where it is spreading across different segments of the population, such as students and young people. The Scottish government does have a fourphase route map out of the pandemic but the measures we are seeing now – circuit breaker or ‘reset’ restrictions – were not envisaged in the original route map and suggest that we are very far from any return to normal.

A big concern from us is that significant numbers of staff in convenience stores would begin to test positive and as a result they and their colleagues – identified via the contact tracing system – would have to self-isolate. Given the small staff teams in most convenience stores this would be a massive challenge.

The Scottish government does have detailed guidance for retail on the Covid-19 section of its website. The guidance includes how to protect staff, an operational checklist and very importantly a detailed risk assessment.

We would strongly encourage retailers to make use of all these resources – as the pandemic evolves it is vital that shop staff are protected, and that shops can stay open.

The guidance is about to be revised and we will cascade it to all our members: please watch out for it.

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Wholesalers on ‘cliff edge’ thrown lifeline The collapse of the hospitality industry has hit wholesalers hard, with farreaching implications for local retailers. So is the latest government funding too little, too late?

With the wholesale industry staring at an uncertain future, the Scottish Wholesale Association has welcomed confirmation by First Minister Nicola Sturgeon that Scottish wholesalers can access muchneeded hardship grant funding to help businesses which can remain open but are directly constrained by the Scottish Government’s new five-tier local Covid restrictions.

Businesses which can remain open, but are directly constrained by the measures, are eligible for grants worth £1,400 or £2,100, based on rateable value. This support is in addition to the UK Government’s new Job Support Scheme l and means that wholesalers will be eligible for these grants every four weeks for as long as the restrictions last.

Clarity on funding followed a question in the Scottish Parliament by Brian Whittle, the Conservative MSP for South Scotland, who said during a debate on the Scottish Government’s ‘Covid-19: Scotland’s Strategic Framework’ that wholesalers were “haemorrhaging cash”. He told Parliament: “It is not just the hospitality industry that is suffering – the whole food supply chain is under threat.”

Whittle raised the plight of Scotland’s foodservice wholesalers which lost, on average, 81% of their business when coronavirus closed hospitality, tourism and leisure businesses in March. He said: “The Government needs to speak to the Scottish Wholesale Association, which will tell it the stark reality of the cliff edge that it faces in a sector that is worth £2.9 billion to Scotland and supplies some 5,000 convenience stores, as well as hospitals, schools, prisons and hospitality businesses.

“Wholesalers have high overheads and carry significant stock, but have been left out of the support schemes such as that which provides rates relief.

“If supply chains fail, they will be extremely difficult to rebuild. There will be a post-Covid period, so business needs to know that preparations

and plans are being made to which they can work – they need to know that there is light at the end of the tunnel so that they can be confident about retaining their employees.”

Whittle referenced a major wholesale owner who said his business was “haemorrhaging money to the extent that he is considering shedding 70 staff because he does not know what is coming down the line”. The MSP added: “He has only a fraction of his delivery trucks out there and they are running half empty while trying to maintain supplies for his customers who are still able to carry out some trading.

“Many businesses that traditionally work to a oneyear, three-year or five-year plan currently cannot plan even a week in advance. Continually opening up and shutting down is unworkable. Business is not a tap that can be turned on and off – it might be easy to shut it down, but it takes time to turn the tap back on.”

The Scottish Wholesale Association has written to the First Minister and Finance Secretary Kate Forbes requesting a meeting to outline first-hand the “reality of the cliff edge” and the impact it will have on public-sector contracts should wholesale not receive targeted sector support.

Its Chief Executive Colin Smith said: “We certainly welcome the clarity from the First Minister that this much-needed hardship grant, part of the ‘Covid-19: Scotland’s Strategic Framework’ support, will be accessible to wholesalers especially when members have already been declined, by some local authorities, the one-off hardship grant that was implemented at the start of the current ‘brake period’ to support businesses that were severely restricted but not closed.”

“We also welcome First Minister Nicola Sturgeon’s statement that businesses need more support and are calling on the UK Government to give additional funding to the Scottish Government for this to happen.” www.slrmag.co.uk 06/11/2020 11:05:26

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Comment

MODEL BEHAVIOUR EDITORIAL

The news that Co-op has opened its first franchise store in Scotland – at Stirling University – has certainly created a little ripple of excitement and interest, and it’s also what sparked the idea for this month’s cover story. That and the fact that a load of wholesalers and retailers seem to be suddenly trying out new operating models as alternatives to the traditional symbol group model. Nisa and Costcutter have launched Co-op franchises down south, Midlands-based Spar wholesaler AF Blakemore has opened its first ‘commission operator’ model store and, closer to home, CJ Lang boss Colin McLean admitted during a recent call that Spar Scotland is “definitely interested” in exploring the commission operator model up here.

The moves haven’t escaped the attention of retailers either. In a single week I took three calls from three independent retailers asking how the Co-op franchise worked – so I thought I’d do my job and find out for them. Hence this month’s cover story and the very interesting interview I did with Co-op’s Head of New Channels, Martin Rogers.

There are all sorts of upsides to the new models for independent retailers, as well as some obvious downsides – the loss of control over ranging being the most obvious one. But there are some compelling arguments in there, not least the fact that, for instance, the typical Co-op franchisee saw sales increase by 50% after joining, and those are pre-Covid increases.

Agree with it or not, the Co-op’s response to that concern is that they operate thousands of stores across the UK and know what a good range looks like and if they’re going to offer independent retailers access to the highly valuable Co-op masterbrand, they want franchised stores to “look, feel and smell like a Co-op”. So it comes down to whether retailers are prepared to sacrifice some control for bigger sales, but the cookie cutter model is particularly interesting for retailers keen to grow a chain of stores relatively quickly.

The Spar commission operator model is broadly similar, albeit the store is actually owned by the wholesaler and operated by the independent retailer, but the benefits are roughly the same.

Franchise and commission operator models aren’t new – they’re bog standard for many forecourt operators – but they’re relatively new to convenience and it will be interesting to see how whether these new models gain traction in Scotland over the next year.

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

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

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

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

CIRCULATION & SUBSCRIPTIONS Circulation Manager Cara Begley 0141 222 5381 | cbegley@55north.com Scottish Local Retailer is distributed free to qualifying readers. For a registration card, call 0141 222 5381. Other readers can obtain copies by annual subscription at £50 (UK), £62 (Europe airmail), £99 (Worldwide airmail).

55 North Ltd, Waterloo Chambers, 19 Waterloo Street, Glasgow, G2 6AY Tel: 0141 22 22 100 Fax: 0141 22 22 177 Website: www.55north.com Twitter: www.twitter.com/slrmag DISCLAIMER The publisher cannot accept responsibility for any unsolicited material lost or damaged in the post. All text and layout is the copyright of 55 North Ltd. Nothing in this magazine may be reproduced in whole or part without the written permission of the publisher.

All copyrights are recognised and used specifically for the purpose of criticism and review. Although the magazine has endevoured to ensure all information is correct at time of print, prices and availability may change.

This magazine is fully independent and not affiliated in any way with the companies mentioned herein.

Scottish Local Retailer is produced monthly by 55 North Ltd.

ANTONY BEGLEY, PUBLISHING DIRECTOR

© 55 North Ltd. 2020 ISSN 1740-2409.

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Cover Story

New Trends In Operating Models

THIS YEAR’S MODEL? Recent weeks have seen a lot of activity from wholesalers and retailers around new franchise and ‘commission operator’ models – so what’s the big idea, and why the sudden rush to find alternatives to the symbol group model?

BY ANTONY BEGLEY

T

he symbol group model has been the pre-eminent model for binding wholesalers and independent convenience retailers together for some time now, but there are signs that a new trend is emerging. Several retail and wholesale groups have begun trialling new franchise and commission operator models and all at the same time. Co-op opened its first franchise store in Scotland last month, Costcutter has begun converting company-owned stores to Co-op franchises, Nisa is opening Co-op franchises and now even Spar is joining in on the act with Midlands-based wholesaler AF Blakemore recently launching a ‘commission operator’ store in Herefordshire.

So why the sudden rush to find alternatives to the tried and tested symbol group model?

One answer to that question is cold, hard cash. Bank funding has largely dried up in retail and store values are rocketing as the Covid effect pushes up sales, profits and, consequently, selling prices. “The reality is that it’s getting harder and harder for independent entrepreneurs to get into convenience retail in the first place,” says Lous Drake, Sales 14

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“Of the 14 stores that have become Co-op franchises, the average increase in sales is around 50%.”

Director at Blakemore Trade Partners. “The capital required these days can be prohibitive for a lot of entrepreneurs, so this model offers a ready-made model to help ambitious entrepreneurs onto the ladder.”

But that’s not the only explanation to why wholesalers and retailers are testing out new models. Co-op has been trialling the franchise store model for around two years and now has 14 franchise stores, the most recent one being its first in Scotland, located on campus at Stirling University. For Martin Rogers, Head of New Channels at Co-op, the franchise model is an attractive one to independent retailers looking to build a chain of stores quickly and efficiently.

The ‘cookie cutter’ franchise model takes a lot of the complexity out of adding new

stores because each store is essentially a cut and paste of every other store. Or, as Rogers prefers to put it: “Franchise stores have to look, feel and smell like a Co-op.”

The obvious quid pro quo here is that by demanding high levels of compliance in terms of store design, range, promotional execution and so on, independent retailers lose a lot of the freedom they enjoy running their stores how they see fit – but there is an upside.

And it’s a big one. “Of the 14 stores that have become Co-op franchises,” explains Rogers, “the average increase in sales is around 50%” – and it’s worth pointing out that these are pre-Covid increases.

How much control do retailers sacrifice for a shot at huge sales increases? Retailers do retain “some independence around pricing” but high levels of compliance are expected around range, promotions, store look and feel and so on, which is hardly a surprise given that the franchise model marks the first time the Co-op has allowed independent retailers access to the highly valuable Co-op masterbrand.

“So far, the retailers we’ve worked with on the franchise model have been absolutely fantastic and have enthusiastically embraced their role as guardians of the Co-op brand,” says Rogers. “We operate in over 4,000 locations so we have a lot of experience and expertise and that’s what we bring. In return, we expect our franchise retailers to respect and protect the brand which is clearly in their own interests as well as ours.”

As well as bringing their brand and expertise, the Co-op also commits a significant financial commitment towards the refit to ensure the now store does indeed look, feel and smell like a Co-op. Much of the investment, says Rogers, is around tech and branding and a typical refit will see the Co-op www.slrmag.co.uk 06/11/2020 11:06:00

New Trends In Operating Models

contribute around 25% of the cost. There is no upfront fee – unlike other franchise models like Subway, Greggs and Costa – with the key fee being the basic franchise fee, typically a percentage of net sales. This helps incentivise both the independent franchisee and Co-op to maximise sales.

“We take the franchise model very seriously,” says Rogers. “There was a lot of nervousness in the business when we first launched it, as you would imagine, but we’ve seen it work and work well. We’re committed to helping independent retailers grow their business and we’re committed to growing margins because that’s how we both benefit.

We offer a 24 hour, 365 days a year account management service to our franchise retailers and we’re always available.”

According to Rogers, there are no hard and fast rules around who can become a Co-op franchisee, but the only two ways in currently are through Nisa (which Co-op owns) or Costcutter (which has Co-op as its exclusive supplier).

But it’s not just franchise models that are seeing some frantic activity at the moment.

So-called ‘commission operator’ models are starting to gain traction in convenience. The model isn’t new in itself as it’s commonplace in the forecourt sector with companies like MFG relying on it, but it’s not a model you come across much in traditional convenience retailing.

“It’s a very popular model in the forecourt sector,” says Blakemore’s Drake. “It’s something we had been looking it for some time but our brand new store in Leominster in Herefordshire is the first company-owned store to operate under the new model. It won’t be the last”.

In basic terms, the store is owned by AF Blakemore but is run by independent retailers. www.slrmag.co.uk SLR November 2020.indd 15

In the case of Spar Leominster, the site is now run by MIH Traders which is owned by Dasitha Gamage and Janaka Watowita.

“The store was formerly operated by Blakemore Retail, our company-owned store division,” explains Drake. “But now it’s being run by Dasitha and Janaka but with the full support of AF Blakemore. It opened on the 7th of September and the early indications are that it is very much performing to expectations and we have high hopes for it.”

So what is the thinking behind the new model? “Essentially, our commission operators will be self-employed entrepreneurial retailers who are seeking to operate their own businesses supported by a successful retail partner. AF Blakemore will own the business, with the commission operators responsible for developing sales and profitability within their stores. In practice, that means we’re freeing the retailers up to focus on what really matters: growing the business.”

AF Blakemore currently services 966 Spar stores, including 277 company-owned stores, with Leominster the only store operating under the new model, but Drake says that more commission operator stores are already in the pipeline and will be announced in the very near future.

Drake is frank about how he expects these retailers to develop in future and fully expects to see retailers migrate into owning their own stores in the future.

Cover Story

He comments: “The commission operator model is a great way to get into this exciting industry in the first place, but we fully expect retailers to outgrow the model. If commission operators start to hit £40k or £50k sales a week, for example, we would expect them to migrate on to buying their own stores, but we would obviously hope to retain them as customers of AF Blakemore in the longer term. But this is our aim. We absolutely want our operators to be successful and make money and we will provide them with all the support and help they need to achieve that success. The commission operator model can be a stepping stone for ambitious entrepreneurs.”

Commission operators enjoy exactly the same terms as Spar symbol operators including on critical issues like pricing and credit terms.

“It’s a very flexible model,” adds Drake. “We allow the operators flexibility in the range they carry, for instance, and they enjoy a a lot of control over how they run their business – but we do expect good levels of compliance, as we do with all Spar retailers. Discipline is key in maintaining the high standards that shoppers expect when visit any Spar store and that’s vital across issues like promotions, pricing, efficient and consistent use of POS and so on, but that doesn’t mean commission operators don’t enjoy a good degree of autonomy in how they run their stores. We view it as the best of both worlds.”

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News

Products

Valeo unveils festive range Valeo Confectionery has unveiled its Christmas confectionery

ProductNews

line-up. It includes Barratt’s retro sweets, which are available as a tub (630g, RSP £3), a carton (300g, RSP £2) and a sharing bag (180g, RSP £1). For those seeking a more grown up treat, Valeo’s other confectionery lines include milk chocolate Just Brazils (180g, RSP £3), York Fruits (200g, RSP £3) or Barratt’s Liquorice Novelties (270g, RSP £3).

Cadbury shrinks share bag packaging Mondelez is to reduce packaging by 15% across its large Cadbury share bags to help reach its global target of eliminating 65,000 tonnes of packaging by the end of 2020. Giant Buttons, Caramel Nibbles and Bitsa

BRING SOME ENERGY TO LOCKDOWN – P38 SPORTS & ENERGY New campaign aims for category growth

Red Bull hopes new Air Mail promo takes off Red Bull has unveiled Red Bull Air Mail, an on-pack promotion that lets shoppers gift a free 250ml 4-pack to friends and family.

Cardboard sleeves on promotional 250ml 4-packs have a postcard printed on the inside that consumers can send to someone in need of a lift.

The recipient then enters a code online to redeem a 4-pack for themselves.

The promotion runs across 4-packs of both original and sugarfree variants.

With the value of its multipacks growing 40.6% in the last month, Red Bull said: “Now is the perfect time for retailers to stock up.”

The energy drink brand has responded to consumer trends and is aiming to drive a better understanding of Red Bull for multiple moments of need, identifying its four key moments of need as Sports & Fitness, Work & Study, Socialising, and Travel occasions.

Supported by an extensive in-store and digital marketing campaign, Red Bull Air Mail aims to leverage existing users to drive new multipack users, as well as maintaining 4-pack distribution and rate of sale, which in turn will contribute to the overall growth of the Sports & Energy Category.

Retailers can email customerservice.uk@ redbull.com to find out more about the promotion.

Wispa large sharing bags in the UK will contain the same amount of treats as before, but in a new

GROCERY

optimised pack format that uses

Murray in no hurry to drop lunch

15% less packaging.

Scotland’s bread heroes rise to the challenge Mungoswells Malt & Milling was crowned the winner of the Tiptree World Bread Awards Heroes for Scotland, in a special online awards evening on Tuesday 13 October 2020.

A small-scale arable farm and mill, Mungoswells sits north of Haddington, East Lothian. Staff were putting in 14 hour shifts to meet the massive flour demand seen during the early stages of the coronavirus pandemic.

Old Curiosity releases gininspired herbal tea range

Old El Paso has teamed up with tennis player Andy Murray to support the launch of new Tortilla Pockets (RSP £4) – a tortilla with a sealed bottom that allegedly “ensures a mess-free Mexican mealtime experience anytime, anywhere”.

The Scots racquet swinger shared a video with his five million or so social media followers where he munched his way through a Tortilla Pocket while playing keepy-uppy with a tennis ball – without dropping either.

The stunt is part of Old El Paso’s #MessFreeChallenge, which sees people nominate someone to successfully eat a Tortilla Pocket without getting sour cream everywhere. Murray was put forward by fellow tennis player, mercurial Australian Nick Kyrgios.

Furthermore, Murray and Old El Paso will donate 20,000 Meal Kits to FareShare to help feed UK families in need.

Maeve Judge, Marketing Manager, Old El Paso said: “Tortilla Pockets is our most exciting innovation in a decade, so we knew we needed to do something big to celebrate the launch. The #MessFreeChallenge is fun, engaging and super shareable, with an important charitable initiative at its heart.

Scottish craft distillery Old Curiosity has released a new range of herbal teas, developed in partnership with Edinburgh-

CHILLED

based Pekoe Tea, and inspired

Wall’s rolls out ‘free gift with every pack’ promo

by its award-winning gin range.

Sausage roll brand Wall’s Pastry is giving consumers the chance to win a £1,000 UK holiday, alongside various other high-value prizes, as part of its new on-pack promotion.

The ‘free gift with every pack’ promotion runs until mid-December, across the brand’s Snack Sausage Rolls, Classic Pasty, Jumbo Sausage Roll, Vegan Jumbo Roll and a selection of its slices: Chicken and Mushroom, Chicken and Bacon, Chicken Tikka and Peppered Steak.

As well as a £1,000 Forest Holidays voucher and weekly £500 Halfords gift vouchers, prizes include PrezzyBox vouchers, free manicures and pedicures, and Fabyouless memberships.

The G&Tea herbal tea range uses the same botanicals as Old Curiosity’s Secret Garden Gin, blended with Ceylon Tea. The range includes: Lemon Verbena, Apothecary Rose and Lavender, each priced at £5.95.

KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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Products

News

Timmy team-up Aardman has teamed up with Yeo Valley Organic with a new collaboration on its children’s range Little Yeos and the recently relaunched pre-school show

SPORTS & ENERGY DRINKS New promotion packs a punch

Lucozade Sport fans can train with AJ in new promo

Timmy Time. The partnership on Little Yeos Fruity Favourites four-pack will support children’s education in learning more about the environment, healthy lifestyle and taking care of the planet supporting Yeo Valley Organic’s

Lucozade Sport’s new on-pack promotion gives shoppers the chance to meet heavyweight boxing champion Anthony Joshua.

One lucky winner and two guests will meet AJ and enjoy a training session in the ring.

There are also 20 runner-up prizes of a pair of boxing gloves, signed by the legendary puncher.

The promotion will appear on more than five million 500ml bottles of Lucozade Sport Orange, Lucozade Sport Raspberry and Lucozade Sport Fruit Punch, which be available between November and January.

Lucozade is boxing clever with the timing, as

Joshua is due to put his IBF title on the line against Bulgarian bruiser Kubrat Pulev on December 12.

A digital out-of-home, social media and PR campaign will support the promo. POS material is also available.

“The partnership between Anthony Joshua and Lucozade Sport has proved irresistible to shoppers over the past couple of years,” said Tom Bell, Head of Marketing for Lucozade Sport.

“In the past year, Lucozade Sport Fruit Punch – featuring Joshua on pack – has driven sales of almost £8m.”

latest campaign to encourage its consumers to Put Nature First.

Spar’s mince pies take Christmas prize Judges of the BBC Good Food magazine have hailed Spar Luxury Mince Pies as the UK’s best for the first time in the 2020 BBC Good Food Christmas Taste Awards. Judges said the pies, which retail at £2 for a pack of six, “have a lovely golden colour and crumbly, buttery pastry.

The filling is sweet and jammy, with nice big chunks of plump,

CONFECTIONERY It’s a win-win for store owner and his chosen charity

Curly Wurlies land retailer £25k in Mondelez competition A Surrey retailer is celebrating after scooping £25,000 for his store – as well as £25,000 for a charity close to his heart – through Mondelez International’s independentonly Win-Win campaign.

Kandasamy Mugunthan, who runs Chart Downs News in Dorking, Surrey, found the winning ticket in a case of Curly Wurly that he bought from Booker in September.

Kandasamy has owned Chart Downs News for just over a year and will invest the prize money in the store.

He explained: “We’ve been planning a full refurbishment of the shop since March, but because of Covid-19 we haven’t been able to get it started. This prize will pay for most of that, which is great! We’re now planning to start the refurb in two weeks’ time.”

The Win-Win competition offered independent retailers the chance to win prizes totalling £140,000 by finding special golden tickets inside cases of participating Mondelez products.

As part of the prize, Kandasamy donated £25,000 to Mannar Welfare Association UK, a charity that provides relief to people affected by the war in the Mannar region of Northern Sri Lanka.

A spokesperson for the charity said: “We are very much humbled by this gift. We will be able to expand our projects thanks to this timely donation, helping so many more needy people in the Mannar district of Sri Lanka. We thank Mr. Kanadasamy Mugunthan for nominating our charity and we wish him success in his business.”

SNACKS

soaked fruit and a good hit of

New look popchips cuts packaging

citrus from the candied peel.”

KP Snacks has reduced the packaging on its popchips portfolio by 23 tonnes per year and revealed a modern new pack design across the range.

The new design has a modern look and feel, prominently features core ingredients, gives the brand standout and is more fun and relevant. It incorporates popchips’ signature tagline, ‘popped not fried’.

Alongside the new pack design, the manufacturer has reduced the size on the inside and outside plastic layers across all popchips formats, which represents an overall decrease of 10% annually. KP Snacks estimates that 23 tonnes of material will be saved per year. The packaging reduction rolls out between November and January. The move is part of KP’s pacKPromise, which sees the company striving to use less packaging across its portfolio, with the end goal of all its plastic film packaging being fully recyclable by 2025.

Britvic has reached an

Britvic and PepsiCo renew exclusive partnership agreement with PepsiCo for a new and exclusive 20-year franchise bottling agreement in Great Britain for the production, distribution, marketing and sales of its carbonated soft drink brands – including Pepsi, 7UP and Mountain Dew. The new agreement extends the relationship to 31 December 2040, and includes the Rockstar energy brand.

Nescafé launches online coffee-to-go hub Nescafé has launched a new online coffee-to-go hub as a one stop shop destination to help convenience stores grow their hot drinks trade and maximise their coffee sales. The hub promises all the latest coffee market trends, advice and tips for success, plus access to a ‘click n deliver’ online ordering service. The hub is free to join at coffeetogo.co.uk.

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News

Off-Trade

WKD makes students’ dreams come true RTD brand WKD is running a

Off-TradeNews

series of tongue-in-cheek online competitions to provide things students don’t usually want to spend their money on. To take part in the ‘Your Wish is Student Granted’ campaign, students just need to respond to WKD’s social media posts. The campaign will reach over half a million students and prizes range from spatulas to coursebooks to the weekly grocery shop.

Glasgow Gin saddles up for gallus new look Glasgow Gin has been relaunched with a new look and a humorous advertising campaign that brings to life the statue of the Duke of Wellington that inspired it. Produced by the Gleann Mòr Spirits Company, the gin’s branding features a newly commissioned version

FORECOURTS GET BACK IN GEAR – P42 RTDs Gordon’s and Smirnoff join the cocktail party

Diageo taps into premium premix trend Diageo has launched a pair of new premix cocktails from two of its most popular spirits brands.

Gordon’s Pink Martini (ABV 5%) and Smirnoff Passion Fruit Martini (ABV 5%) are both available now from UWS, UWG, Spar and JW Filshill with an RSP of £2 per can.

Coming to market in black 100% recyclable aluminium cans, the two RTDs look to capitalise on the flourishing premix cocktail market, currently in growth by 43.8%. They tap into the growing desire for convenience amongst consumers as well as a shift towards premiumisation.

Gordon’s Pink Martini mixes Gordons Premium Pink Distilled Gin, with raspberry juice and natural berry flavours.

Smirnoff Passion Fruit Martini mixes Smirnoff No. 21 with passion fruit juice, natural fruit and vanilla flavourings, and is lightly carbonated.

Anita Robinson, GB Marketing Director at Diageo, said: “At Diageo, we are continuously researching and innovating to meet the ever-evolving demands of our customers. With 72% of consumers saying the brand of spirit is important when selecting premix cocktails, we’re extremely excited to be launching two expertly mixed cocktails in a convenient format from two of the biggest spirits brands in the world.”

of Glasgow’s iconic statue, complete with traffic cone. Its WINE

launch will be supported by a full

New Zealand Wine re-launches Independent Retail Promotion

social media campaign.

Mangrove has the eye of the tiger Mexican distiller Case Lumbre has launched premium mezcal Ojo de Tigre (Tiger’s Eye) in the UK. Ojo de Tigre is made with two varieties of 100% sustainably grown agave from the Oaxaca and Puebla regions of Mexico, and comes in a bottle inspired by historic amulet flasks. Ojo de Tigre (ABV 37%, RSP £36.99) is available now, distributed by Mangrove UK.

anCnoc releases second batch of Peatheart anCnoc Highland Single Malt Scotch Whisky has launched Peatheart Batch 2: the second consignment of its permanent peated expression. After a limited release in Sweden, this second bottling will now be available to drinkers around the world. anCnoc Peatheart Batch 2 (40ppm) is bottled in 70cl at 46% ABV and has an RSP of £52.

There are 1700 cases of the new

SUSTINABILITY Invention will save 3,000 tons of plastic annually

Bacardi reveals 100% biodegradable spirits bottle Bacardi has unveiled plans to put what it called “the world’s most sustainable spirits bottle” on shelves by 2023.

The new 100% biodegradable bottle will replace 80 million plastic bottles – amounting to 3,000 tons of plastic – currently produced by Bacardi across its portfolio of brands every year.

While regular plastic bottles take over 400 years to decompose, the new bottles break down completely in 18 months without leaving any microplastics behind.

Bacardi rum will be the first spirit to appear in the new bottle, before the plant-based material is rolled out across the entire Bacardi supply chain and the company’s 200 brands and labels including Bombay Sapphire gin, Grey Goose vodka, Patrón tequila, Martini vermouth and Dewar’s Scotch whisky.

New Zealand Winegrowers is relaunching its Independent Retail Promotion which was due to take place in April and May this year as Covid-19 struck and will now run in spring 2021.

The promotion will be extended so retailers can run their campaign any time throughout April, May and June 2021.

The prize remains the same, which offers participating retailers the chance to win one of three trips to New Zealand, taking part in a wine experience discovering the regions, varieties, landscapes and personalities behind New Zealand wine.

The campaign strapline – ‘How About a Glass of Right Here’ aims to bring a slice of New Zealand to the UK and Irish markets, showcasing the beauty of the country and linking it with its wine.

New Zealand Winegrowers will also offer an online tasting training for participating retailers and their staff to provide them with extra knowledge and enthusiasm for New Zealand wines.

To be in with a chance of winning, participating retailers need to run a standout New Zealand promotion with the simple aim to showcase New Zealand’s diversity for at least two weeks during April, May and June 2021.

For more information and to register their interest, retailers should email chris. stroud@nzwine.com.

batch available.

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www.slrmag.co.uk 06/11/2020 11:06:21

Off-Trade

News

Spar stays in tune with latest gin trends Spar has relaunched its own label premium gin range under ‘The Harmonist’ brand name.

New-look Rhubarb & Ginger Gin

LOW/NO ALCOHOL Scotland’s favourite lager turns teetotal

Tennent’s Zero arrives in convenience Tennent’s has launched its 0.0% ABV beer Tennent’s Zero into the convenience channel.

The launch is supported with PR, influencer and social media activity.

Tennent’s Zero uses water from Loch Katrine, hops and Scottish barley to give it the same flavour profile as Tennent’s Lager, but with just 17kcal per 100ml.

It is available in card packs of 4 x 440ml cans and is the first of the brewer’s smaller pack formats to come out of plastic – part of Tennent’s ongoing sustainability commitment.

Iain Telford, Senior Marketing Manager at Tennent’s, said: “Creating Tennent’s Zero has been like the search for the holy grail as we sought to create a 0.0% product but with all the same great taste of Tennent’s Lager. Our master brewers have spent months getting this right and we are truly delighted with the beer that we have created and can’t wait for people to try it.”

The new lager follows on the heels of Tennent’s Light, a 3.5% ABV beer which launched earlier this year.

Beefeater has launched a new £16.99 price-marked pack (PMP) across its original London Dry variant and its flavours range, Beefeater Pink Strawberry and Beefeater Blood Orange.

The new price-marked packs roll out across the convenience channel, including major wholesalers, from this month.

Within convenience, Gin is growing +33% in volume versus last year and within this, Flavoured Gin is the fastest growing spirits category (+77% in volume versus last year).

Chris Shead, Off-Trade Channel Director at Pernod Ricard UK, commented: “Gin is still very much the drink of choice and we’re delighted to be launching a PMP for Beefeater at a time when we are seeing significant changes in consumer behaviour.”

The new packs join the company’s recent launch of a £7.99 PMP on its bestselling Campo Viejo Rioja Tempranillo, which is available in major wholesalers now.

London Dry Gin following suit in the New Year. Both are bottled in 70cl at ABV 40% with an RSP of £20. Bottles now have thicker, heavier bases and a cork instead of a screw cap for a more modern appearance. Flavour profiles remain unchanged.

Pernod Ricard’s sustainability progress recognised by UN Pernod Ricard has been awarded ‘Lead’ status by the United Nations Global Compact for the third consecutive year in recognition of the progress it has made against key sustainability targets. The drinks giant is one of only 40 companies globally (and the only wine & spirit producer) to receive the award, for demonstrating its ongoing commitment and progress.

Drumshanbo Irish Whiskey comes to UK Speciality Brands has signed

GIN Pernod Ricard brand leverages the power of price-marks

Beefeater brings out PMPs

is in stores now with Original

WHISKEY

an exclusive deal with The

Jack Daniel’s makes it count worldwide

Shed Distillery of PJ Rigney to

Jack Daniel’s has launched ‘Make It Count’, its first truly global marketing campaign.

The campaign showcases a new way of thinking for the 154-year-old brand that celebrates the people who drink it.

A new ‘First Timers’ TV ad showcases Jack Daniel’s fans “who choose to live boldly and try something they’ve always wanted to do”.

The ad is part of a cross-channel campaign, including TV, social, digital and out-of-home activity across over 100 countries worldwide.

“With ‘Make it Count’ we have a long-term platform that resonates with consumers, especially in today’s environment, and carries the message of Jack’s bold, independent spirit,” said Matias Bentel, Chief Brands Officer of Jack Daniel’s parent company, Brown-Forman.

(70cl, 43% ABV) is available

distribute its first global whiskey release in the UK. Drumshanbo Single Pot Still Irish Whiskey now with an RSP of £50. It joins Speciality’s world whiskies portfolio which already includes Nikka from Japan, Michter’s from Kentucky, Kavalan from Taiwan and Irish Single Malt Waterford.

Guinness zeroes in on noalcohol market Guinness has become the latest in a long line of beer brands to unveil an alcohol-free variant with the launch of Guinness 0.0, which is said to “boast the same beautifully smooth taste, perfectly balanced flavour and unique dark colour of Guinness”.

The absence of alcohol means each can contains only 70 calories. It is available in a 440ml can 4-pack format.

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NOVEMBER 2020 | SLR

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News

Newstrade

News& Magazines WINTER PRODUCTS: KEEP SELLING THE TABLETS – P46 CORONAVIRUS Trade association says it’s still here to help

NFRN Covid-19 Hardship Fund remains open As Scotland entered its new five-tier lockdown, the NFRN reminded its members that financial assistance is still available through the NFRN Covid-19 Hardship Fund.

The Covid-19 Hardship Fund was created to alleviate some of the financial pressures that independent retailers may be facing due to the coronavirus pandemic. It offers assistance in the form of a grant to members suffering cash flow and other financial challenges. Since its launch in April, the Hardship Fund has helped 95 independent retailers and paid out nearly £120,000.

Thanks to generous donations from the Federation’s districts, branches and from individual members, as well as from suppliers and publishers, the fund reached an impressive total of £241,621.

NFRN National President Stuart Reddish said: “The impact of Covid-19 on the lives and businesses of some independent retailers has been unprecedented and, with members in Scotland facing more restrictions, we are issuing a reminder that our Covid-19 Hardship Fund is still here to help.

“We are acutely aware that some members are facing severe financial difficulties due to the coronavirus pandemic and that further restrictions may completely decimate footfall within certain stores, due to their location.

“If your store has to close or is struggling to survive due to Covid-19, apply for a grant today via the NFRN’s website, TheFedOnline.”

Recipients have used the money to pay outstanding bills, restock their stores or to buy essential shop equipment.

NEWSPAPERS

Herald owner sees 88% drop in profit Newsquest Media Group, owner of The Herald, has seen pre-tax profits tumble by 88% from £108m to £13.4m last year. The regional publisher’s turnover fell by 5% to £187.7m but cost control measures helped maintain the overall profitability of the business, leading to a 10% rise in adjusted earnings (EBITDA) to £38m.

Operating profit fell from £78.2m to £9.7m.

The company closed 10 free newspapers in 2019, following the closure of 16 in 2018, and

Daily Mail tops 1m for first time since March The Daily Mail’s circulation has topped 1m for the first time since Covid-19 hit the UK in March. The latest ABC figures show most of the UK’s national newspapers saw marginal sales growth in September but continued year-on-year decline of between 10% and 20%.

The Daily Mail, which had dipped below 1m for the first time because of the effect of the Covid-19 lockdown on footfall, returned to average sales of 1,007,181.

The Mail on Sunday and Observer saw the smallest yearon-year decline (both 10%) while The Financial Times again recorded the biggest month-on-month growth (10%) and the largest year-on-year decline (-38%).

The published ABC figures do not include the Sun, Times or Telegraph titles, which have chosen to keep their circulations private.

also closed its Southampton press.

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www.slrmag.co.uk 06/11/2020 11:06:25

Research Digest

ONLINE SPENDING TO OVERTAKE INSTORE SPEND FOR FIRST TIME Consumer spending online is set to overtake in-store spending for the first time ever this Christmas, says new research.

A

he amount of money consumers spend online will overtake in-store spending for the very first time this Christmas, according to predictions by delivery specialists ParcelHero. The company says Brits will spend £39.41bn online this Christmas as online spending outstrips High Street sales for the first time as shoppers brace for a Covid Christmas.

In Christmas 2019, Britain’s shoppers spent over £78bn on Christmas presents and food. ParcelHero says customers look set to spend around the same amount again this year but, this time, a far bigger slice of our Christmas budget will be online.

ParcelHero’s Head of Consumer Research David Jinks says: “Last Christmas, we spent £25.43bn online and £53.15bn in stores. This year, our research shows the situation will be reversed and we’ll spend more online than offline in the first truly digital Christmas.

“In September, sales online grew 53% YOY, according to the ONS. This Christmas, we think they will inch up to 55%. That means online shopping will rise to a record-breaking £39.41bn.

“We don’t think it’s likely we’ll see a massively increased overall spend this Christmas, as people are concerned for their jobs because of the impact of Covid and Brexit, which looms just seven days after Christmas. So, assuming Brits spend roughly the same as last year, that means in-store shopping will correspondingly drop considerably to £39.17bn.

“With Amazon and Tesco promising free grocery deliveries for Christmas for shoppers in their membership schemes, we’re also expecting food deliveries to soar over the festive period. As even Marks & Spencer launches full-scale food deliveries thanks to its new Ocado tie-in, you could say it’s not just an online Christmas revolution, it’s an M&S online Christmas revolution this year.”

CONFIDENCE GROWING

D

espite the continued threat of Covid-19 on the retail sector throughout 2020, the proportion of small retail businesses predicting growth for the next quarter rose from 27% in Q3 of this year to 35% ahead of the critical Christmas period, according to the latest data from a rolling study by Hitachi Capital Business Finance.

This quarter of small retail firms were more optimistic about their growth plans than they were pre-pandemic in Q1 2020 when

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just 31% of small retailers foresaw modest or significant growth in the months ahead. This is the best growth outlook figure for small retail businesses since Q4 2019 when 39% of retail SMEs predicted growth.

The top priorities for small businesses to secure growth for 2021 were increasing new business income/sales (39%), diversifying the business by offering new lines of services and products (36%) and reducing fixed costs (24%).

For the first time this year, small business confidence has

held firm from one quarter to the next. These figures were, however, based on a survey the day after the Government announced its three-tier Covid restrictions, with many respondents anticipating the avoidance of a second national lockdown, something that now looks very likely in Scotland.

By sector, the research also gives a welcome boost for the high street. Ahead of Christmas, there was a marked rise in the proportion of retail small businesses predicting growth (up from 27% to 35% in three months).

Inside Business

POST OFFICE PROVIDES ‘£1.1BN REVENUE’ FOR COMMUNITY New research from the Post Office has found that Post Offices are delivering a lifeline to struggling high streets and communities, providing an extra £1.1bn revenue to other businesses. Visits to Post Offices help drive another 400 million visitors to other shops, restaurants and local businesses.

The Public First research, commissioned by the Post Office, found that 33% of respondents said that on their last trip to the Post Office they had visited another business and also found that 82% of the public see their local Post Office as an essential service, with young people valuing it almost as much as older people.

Small businesses also rely on their Post Office to keep their businesses functioning – with 43% of small businesses saying they would not survive without a local Post Office.

Nick Read, Chief Executive at the Post Office, said: “Local post offices are a lifeline for communities across the UK as they are the place to go to do everyday banking or send parcels. We are an essential retailer and will remain open wherever possible during these recently introduced lockdown restrictions. The footfall we generate could make a big difference to sustaining high streets over the long term and helping small businesses start and grow, contributing to economic recovery across the UK.”

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Inside Business

Scottish Local Shop Report

SCOTTISH LOCAL SHOP REPORT 2020

Despite a hugely challenging year, there are plenty of positives to be found in the latest SGF Scottish Local Shop Report, the most comprehensive overview of the convenience market available.

T

he Scottish Local Shop Report 2020 has been published by the Scottish Grocers’ Federation (SGF) and makes for interesting reading, given the flux of the last seven or eight months. Produced by the SGF with the support of their colleagues at the Association of Convenience Stores (ACS), the report is arguably the most comprehensive snapshot available of the Scottish local retailing sector and this year’s report paints a quietly positive picture of the state of the retailing nation.

For the third year in a row, total convenience store numbers have risen again, this time 22

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to 5,025 stores. There is more good news in that the sector now employs an additional 3,000 staff, taking the total number of people employed in the local retailing sector to a significant 47,000.

Despite the challenges of tackling Covid-19, convenience retailers somehow find the time, energy and funds to continue to invest heavily in their stores. In Scotland alone, over £62m has been invested by local retailers over the last year with an average annual investment of more than £6,000 per store.

Encouragingly, some 85% of independent Scottish local retailers have engaged in some

form of community activity in the past year.

The once burgeoning food to go market has been hit badly by lockdown but the report nonetheless shows that 37% of Scottish stores have a coffee machine, 27% have an in-store bakery, 22% offer hot food to go, 21% have a food preparation area or kitchen and 12% operate a food to go concession.

The wider UK convenience channel now generates annual sales of almost £45bn or, to put it another way, it accounts for about one fifth of the total UK grocery market. The convenience sector also paid almost £9bn in taxes last year. www.slrmag.co.uk 06/11/2020 11:06:28

James Lowman | Opinion

Inside Business

THE NEXT PHASE:

LET’S NOT FORGET WHAT WE’VE LEARNED ACS boss James Lowman offers some timely advice on how to cope with what looks increasingly like a second wave of coronavirus, urging retailers not to forget what they learned in the first wave.

BY JAMES LOWMAN, CHIEF EXECUTIVE, ACS

S

ince the start of the Covid crisis my colleagues and I at ACS have not just been working to help members to deal with the immediate challenges they’ve been facing, we’ve also been leading a discussion about what we can all learn from this experience. Which of the behaviours we’ve seen over this period will last, which are specific to this time? What would we do differently if we had our time again or if the same issues emerged again?

Some of this work has been formalised – see our Covid debate sessions during August and the many ACS Live discussions and Local Shop Podcasts where we’ve tried to capture some of the most important things to learn.

What we’ve fought shy of has been defining some sort of playbook, because a) with such complex issues and so many unknown and changing factors it would be pretty arrogant for anyone to think they knew ‘the answer’ to the questions about what happens next and how we would respond again, b) businesses and communities are different, so there isn’t a plan that works for even a decent minority of convenience stores, and c) given a and b, this sort of advice ends up being so generic that it means nothing and I personally get irritated at highly equivocal descriptions of past events being presented as practical guidance for the future, when it isn’t. However, with growing speculation that we’re going to see more restrictions on how the public lives, moves, shops and socialises, and against the backdrop of some of these already being imposed in different parts of the UK, here’s a non-exhaustive list of key advice I would give retailers and industry partners at this time.

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COLLEAGUES FIRST Everyone agrees that colleagues are our most important asset, but get past the warm words and listen to what they say they need to feel safe. Offer choices on PPE and processes in store, and look at opening hours and breaks to allow the store to replenish and your colleagues to decompress. Think about the bigger picture of your colleagues wanting to turn up every day and advocate for your business in the community.

Retailers with established social media channels did better in the first lockdown because they could tell their customers in real time and without physical contact what their policies were and how they were keeping stores safe. I know many retailers who have eschewed social media because they’ve seen face-to-face contact as more relevant – that’s fine but we’re in a different world now when the customer who came in every day doesn’t.

We’ve got some good guidance on getting better at social media.

If in doubt, communicate. On social media, yes, but also with good signage in store. We’ve got resources but use whatever works for you and make sure it looks clean and clear.

Make local links. These might be formal, for example telling the council helplines what you do through the retailer services checklist, or they may be more informal links to local people who want to help customers and your store.

ALTERNATIVE SOURCES Think about alternative sources of supply, whether that’s additional wholesalers, local suppliers, or suppliers to the hospitality

industry who saw their trade crash, not fully recover, and could see it fall again. Evaluating and connecting with these sources will help keep your shelves fuller for longer.

Decide now what your objective is. Are you an emergency option selling a bit more food, or are you trying to build your reputation as somewhere shoppers will feed their families from? Both are absolutely fine as strategies, but if you’ve found yourself reverting to a sales profile of impulse snacks since restrictions were eased... well that’s probably what your business should focus on and the Covid period will be an exceptional time when you sell more food. If you’ve kept a chunk of your new food shoppers in the past three months, that’s a pretty good indicator that it’s worth trying to attract and keep more.

Talk to each other. The best ideas, advice and insight I’ve heard over this time has been from retailers on WhatsApp, social media, trade press and our own communications and online events. Use your existing networks, and expand your information sources by one or two retailers or organisations you don’t normally engage with.

Hopefully much of that sounds like common sense, because there aren’t magic answers here. The principles of our business – listening to customers, engaging colleagues and building your relationship with the community – are exactly the same as they were pre-Covid. It’s just more intense, faster paced and against the backdrop of a uniquely challenging time for the whole country and indeed the world. Keep these guiding principles and you’ll emerge from this even stronger.

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06/11/2020 11:06:30

SLR REWARDS 2020:

A VIRTUAL FESTIVAL OF EXCELLENCE With coronavirus ruling out live events for the foreseeable future, this year’s SLR Rewards will be going virtual for the very first time in its near 20-year history!

Beer, Cider, Wines & Spirits Retailer of the Year Q Premier Dundee University Q Premier Smeaton Stores, Kirkcaldy Q Spar Havannah Street, Glasgow Biscuits Retailer of the Year Q Eurogarages Spar Duncansfield Q Best-one Redding Supermarket Q Spar Dalrymple Confectionery Retailer of the Year Q David’s Kitchen Falkirk Q Eurogarages Spar Hamilton Q Londis Solo Convenience Store, Baillieston Q Spar Leuchars Crisps & Snacks Retailer of the Year Q David’s Kitchen Falkirk Q Eurogarages Spar Lomondgate Q Spar Camelon Food to Go Retailer of the Year Q Brysons Londis, Prestwick Q David’s Kitchen Falkirk Q Nisa Pinkie Farm Convenience Store, Musselburgh Q Spar Havannah Street, Glasgow Forecourt Retailer of the Year Q Brysons Londis, Prestwick Q Jet Nisa Ardeer, Stevenston Q Premier Racetrack Autoport Services, Glasgow Fresh, Chilled & Frozen Retailer of the Year Q Premier Dundee University Q Nisa Pinkie Farm Convenience Store, Musselburgh Q Spar Renfrew

THE FINALISTS

Newstrade Retailer of the Year Q Joes, Loanhead Q JR McKinnes, Dalry Q Premier Turriff

24

Soft Drinks Retailer of the Year Q Day-Today Barassie Q Eurogarages Spar West Highway, Clydebank Q News 24, Glasgow Q Spar Boswell Park, Ayr

Vaping Retailer of the Year Q Premier Racetrack Autoport Services, Glasgow Q Spar Havannah Street, Glasgow Q Wazs, Broxburn Community Involvement Retailer of the Year Q Day-Today Bourtreehill Q Londis Solo Convenience Store, Baillieston Q Nisa Pinkie Farm Convenience Store, Musselburgh

VIRTUAL

New Store of the Year Q David’s Kitchen Kirkcaldy Q Spar Freuchie Q Spar Havannah Street, Glasgow

Best Refit of the Year Q Highclere Food Store, Inverurie Q Premier Racetrack Autoport Services, Glasgow Q Nisa Bellshill Q Nisa Pinkie Farm Convenience Store.

Musselburgh Responsible Retailer of the Year Q Family Shopper Blantyre Q Londis Solo Convenience Store, Baillieston Q Premier Racetrack Autoport Services, Glasgow Scottish Brands Q Eurogarages Lomondgate Q Greens of Ellon Q Nisa Pinkie Farm Convenience Store.

Musselburgh Sustainability Q Greens of Ellon Q Highclere Food Store, Inverurie Q Premier Dundee University Q Premier Watson’s Grocer, Moniaive Team of the Year Q Best-one Whitburn Post Office Q Day-Today Lochside Q Premier Smeaton Stores, Kirkcaldy ThinkSmart Innovation Award BP Mearnskirk Day-Today Redburn Road, Prestonpans Premier Racetrack Autoport Services, Glasgow

SLR | NOVEMBER 2020 www.slrmag.co.uk

SLR November 2020.indd 24

06/11/2020 11:06:32

S

LR is excited to confirm that for the first time since we local retailing industry together for a great night as we’ve been doing first launched the Rewards almost 20 years ago, we will be for almost 20 years – but coronavirus has made that impossible. The holding the event virtually. With coronavirus ruling out live safety and wellbeing of all our industry friends is paramount. events this year and for the foreseeable future, this year we “But we are thoroughly looking forward to recognising and rewarding will be instead hosting a virtual festival of excellence. this absolutely amazing sector in a virtual environment. It’s been a On Friday 11 December at 6pm we will be bringing the entire long, tough year for us all so it will be a pleasure to end the year with Scottish local retailing industry together, as we do every year, but this a celebration of the entire Scottish local retailing sector. I think we’ve time retailers will be able to join the party from the comfort of their demonstrated over the last seven or eight months just how valuable own home, or store, via their PC, laptop, smartphone or tablet. our sector is to every community across Scotland and I sincerely hope Coronavirus has turned the world upside down which is why it is that the heroic efforts of local retailers across the country during these more important than ever that we recognise and celebrate the fantastic tough times will be rewarded with increased loyalty from shoppers role that local retailers play in communities the length and breadth of long into the future. How this industry is perceived by shoppers has Scotland. changed forever and we have a golden opportunity to build a And we want you to help us create a very special event lasting legacy. where we can raise a glass to this phenomenal industry “I look forward to virtually welcoming you all on 11 sector and come together – in a virtual environment December.”

– to praise, thank and honour Scotland’s heroic local retailing sector.

Antony Begley, SLR Publishing Director, To register as an attendee for WHEN? FRIDAY 11 DECEMBER, 6PM said: “We are both delighted and excited to this year’s SLR Rewards, visit be launching the first ever SLR Rewards in the SLR Awards dedicated WHERE? IN-STORE, ON YOUR SOFA OR virtual format. Clearly, it’s not how we had website at www.SLRawards.

WHEREVER YOU HAPPEN TO BE envisaged the Rewards and we would have com and attendance is much preferred to bring the entire Scottish

HOW TO REGISTER

free for all.

www.slrmag.co.uk SLR November 2020.indd 25

DRESSCODE: COME AS YOU ARE

NOVEMBER 2020 | SLR

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06/11/2020 11:06:34

Inside Business

Symbol Spotlight | Costcutter

CONVERTING NEW SHOPPERS TO LIFELONG CUSTOMERS

In today’s climate, part of the key to ensuring long term success is ensuring that new shoppers who visited stores for the first time during lockdown remain as loyal, lifelong customers.

BY SEAN RUSSELL, COSTCUTTER SUPERMARKETS GROUP MARKETING DIRECTOR

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www.slrmag.co.uk 06/11/2020 11:06:40

Inside Business

Costcutter | Symbol Spotlight

“An estimated 47% of shoppers are changing their spending habits to focus on value and 25% are shopping more often at their closest, most convenient stores.”

I

ndependent retailers need the best retail partners to help them further strengthen their support for local communities, expand their shopper base and continue to grow their sales.

At Costcutter, our focus is on helping our independent retailers convert new shoppers who saw their local store as a lifeline during lockdown, into lifelong loyal customers. Supporting our retailers to do this during today’s economic downturn means working in partnership to help create a strong offer, centred on fresh foods and the ability for shoppers to do a ‘full shop’, alongside a key focus on value.

An estimated 47% of shoppers are changing their spending habits to focus on value and 25% are shopping more often at their closest, most convenient stores [Nielsen]. Switching to value will be fundamental for retailers to adapt to changing shopper needs and we’ll be working closely with our retailers to help them to understand more about their own shopper base and what that means for their range, promotions and marketing.

One size doesn’t fit all, which is why at the heart of our support for retailers is our unique ‘Shopper First: Drive Five to Thrive’ business growth programme. It provides in-depth shopper insights and data to help tailor every aspect of the store – from range and missions to actionable insights. Retailers who have participated in our Shopper First programme have seen a minimum of 20% sales growth.

Price promotion strategies are tailored to meet the key shopper ‘personas’ identified by Shopper First. Multi-buy promotions can be great value, for example, but for some shoppers, price reductions are more popular, particularly on single items to minimise waste. For other shoppers, offering products at round pounds, half price or better, is the best option.

It’s not all about price and value, of course. People are also trading up and treating themselves as bars, restaurants and out-of-home dining decreases under the restrictions.

Shoppers are also looking for more than top-up and impulse from their local convenience store. They’re more prepared to do a full shop in store and are looking for meal solutions and fresh ingredients for scratch cooking.

This is where access to Co-op Own Brand is vital for our

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retailers. With over 2,000 products, Co-op Own Brand has been a proven driver of increased footfall, basket spend and sales. There is great trust in the brand and the quality of the products, particularly fresh foods. There is also a continued growth in demand for vegetarian, vegan and free-from options, which will be another key theme for 2021.

Growth in demand for online and last-mile delivery will also continue to rise, so our partnership with Uber Eats is a great opportunity for retailers, offering a ready-made solution in many areas.

Our substantial investment in the right technology and support for retailers, using data, predictive analytics and artificial intelligence to create a better shopper experience for their customers, is another key element of the CSG offer.

CSG continues to attract progressive retailers to our group who see the value we can bring to their business through our dedicated support and innovative business solutions. Embracing new opportunities and adapting to new challenges will be fundamental to that continued growth next year and we look forward to helping more retailers thrive.

NOVEMBER 2020 | SLR

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06/11/2020 11:06:42

SWITCH TO THE RIGHT01904 232 505 OFFER CALL

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06/11/2020 11:06:44

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06/11/2020 11:06:44

Hotlines

Product News & Media Watch

Maltesers Bunny Orange Mars Wrigley Mars Wrigley has announced the launch of Maltesers Bunny Orange, which will be available next year with an RSP of 61p. Demand for orange flavours has grown 20% in the last two years. Kerry Cavanaugh, Marketing Director at Mars Wrigley, said: “In what has been a challenging year for retailers, we know this exciting NPD will bring a new zest for life into sales and get consumers excited about the category once again.”

Mentos Candy Cane Perfetti van Melle Mentos Candy Cane, a new Christmas-themed limited-edition, is available from now until the end of the year. Multipacks (RSP £1) contain three individually-wrapped rolls and each roll is filled with 14 vanilla mint-flavoured printed sweets. Sugar confectionery saw sales growth of £1.9m in 2019 against the previous year. For further information call 01753 442100 or visit perfettivanmelle.com.

Seabrook Loaded Fries Calbee Calbee has unveiled a new restaurant-inspired snack ‘Loaded Fries’, which launched under its Seabrook brand. Loaded Fries rolls out in two flavours – Cheese & Bacon and Chilli Heat – and will be available in a 6x19g multipack, 130g sharing bag and an 80g £1 pricemarked pack. It is available from Bestway/ Batleys as well as Unitas and Sugro members.

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Walkers unleashes the ‘power of sausage roll’ Walkers has launched a festive limited-edition ‘Power of Sausage Roll’ flavour, in partnership with LadBaby and the Trussell Trust.

Five pence will be donated to the charity with every pack sold, as part of the brand’s continued sup-port for the Trussell Trust, whose work in the UK supports a nationwide network of food banks and helps to fight against poverty.

LadBaby has been on a (sausage) roll with its charity singles, which have made the Christmas number one spot for the past two years – with all proceeds donated to the Trussell Trust.

Fernando Kahane, Senior Marketing Director for Walkers Snacks at PepsiCo, said: “When Covid-19 hit earlier this year, we were really proud to pledge £1m in support to the Trussell Trust. We are delighted to continue our fundraising efforts, by partnering with LadBaby & unleashing the ‘Power of Sausage Roll’ flavour crisps to do good with a 5p donation to Trussell Trust per pack.”

“To support the launch, we are building a fame driving and highly talkable new advert.

Our 90 second film centres on a cheeky take on a Christmas classic – featuring iconic British Christmas references & a host of celebrity friends – and is sure to get the nation smiling.

So, keep your eyes peeled!”

Limited-edition 5 x 25g multipacks (RSP £1) are available now, backed by digital and in-store marketing activity during November and December.

SnowPlus Pro/Lite SnowPlus Chinese vaping startup SnowPlus is now launching in the UK with two pod devices: SnowPlus Pro (RSP £24.99) and SnowPlus Lite (RSP £14.99). Both utilise SnowPlus Classic Pods which come in a pack of three (RSP £7.99) and will be available in the UK in five flavours – Mint, Classic Tobacco, Lychee, Mango and Grapefruit. Retailers should email bd@ snowplustech. com for stock enquiries.

Häagen-Dazs chocolate nut range General Mills Luxury ice cream brand HäagenDazs has launched two new super indulgent flavours for the festive season: Belgian Chocolate & Hazelnut and Dark Chocolate & Caramelised Almond. Both are available now in 460ml tubs (RSP £4.80). Luxury tubs are the biggest contributor to take home growth in convenience, up £4.6m.

Porkless Pork Pie Addo Food Group Pork Farms has developed its first Porkless Pork Pie (2 x 65g, RSP £1.65), which features a pea protein meat replacement filling, hot water crust pastry and seasoning. The pie has been developed to meet growing demand for flexitarianismfriendly options. The new product development signals a move by the brand towards a healthier snacking range.

www.slrmag.co.uk 06/11/2020 11:06:46

Product News & Media Watch Cadbury Bournville Fingers Mondelez Cadbury Bournville Fingers are available now in cases of 20 x 114g with an RSP of £1.50. The launch is supported by cinema, TV, in-store, social and digital activity that is predicted to reach 94% of all adults.

Bournville has seen value growth of 48.2%, well ahead of the overall dark chocolate market’s 8.9%. For further enquiries, call 0870 600 0699 or email retailer.services@mdlz.com.

JPS Players and L&B Blue New Crush Imperial Tobacco

Red Bull Red Edition Red Bull Originally launched as a limitededition in July, watermelon-flavoured Summer Edition has been made a permanent SKU, extending the existing Editions range and renamed Red Edition. It is available now in 250ml cans with an RSP of £1.35. Summer Edition’s rate of sale was in line with the top launches in Sports & Energy; shoppers bought over 150,000 cans within one month of launching.

Pedigree Christmas Dinner Mars Petcare

Imperial’s New Crush variants for its L&B Blue and JPS Players brands are intended to appeal to former crushball smokers, with new product features including a filter that delivers a cooling sensation during smoking, as well as a white-tipped firm filter that retains its shape and structure until the end of the smoke.

Both are available in packs of 20 (RSP £9.30), with 10 packs per outer.

Part of a 10-strong range of cat and dog Christmas treats, Pedigree Christmas Dinner contains 12 x 100g sachets (six each of Gravy with Turkey & Carrots and Gravy with Chicken & Vegetables) and RSPs at £4. A £1m+ TV campaign for Pedigree runs throughout November and December.

MEDIAwatch

Hotlines



A refreshing take on Christmas Pepsi Max has roped in UK grime and rap artists Kamakaze and TrueMendous for its new ‘Christmas refreshed’ campaign, encouraging people to try something new this festive season. The two rappers declare “Traditional is so cliché,” as they ditch festive jumpers for hoodies and replace the Christmas tree with a palm tree.

Where next for Glenfiddich?

Glenfiddich has launched a global campaign to introduce its new brand idea: “Where Next?” The campaign features a new film the ‘Stag’ and accompanying social, digital, out-of-home and print advertising. It communicates “the uncertain and challenging journey of growth” and reimagines the brand’s stag icon as a symbol of this.

Quorn’s mince advert Quorn will be back on TV from November 17 for three weeks with an advert for Quorn Mince, emphasising how easy it is for families to reduce their carbon footprint by making more sustainable food choices. The activity forms part of the brand’s ‘Step in the Right Direction’ campaign, which launched at the beginning of this year.

‘Reasons For Cathedral City’ Müllerlight Skyr Müller The launch of Müller’s first ever fat free Skyr yogurt is supported by a new marketing and on-pack campaign starring Müllerlight brand ambassador Katarina JohnsonThompson. The recipe contains 14g of protein per pot, the company’s highest ever per portion. It is also fat free, contains no added sugar and is 90kcal or less per pot. It is available in two 150g variants, Strawberry & Acai and Salted Caramel flavour, with an RSP of £1.25.

Spectacular Science Cupcake Mixes Dr. Oetker These two new kits provide everything needed to bake and decorate 12 cupcakes and include a learning activity sheet that explains the science behind them.

Crazy Colour Changing Icing mix uses PH reactions to create a colour-changing icing. Squashable Jelly Bubbles mix uses spherification to make a bubbly alternative cupcake topping. Both RSP at £2.50.

A new £1m advertising campaign – ‘Reasons For Cathedral City’ – showcases the cheese as a “trusted go-to food staple, bringing moments of pleasure and comfort to a variety of at home meals”. It runs until 6 December ITVHub, All4, Sky Go and Sky on Demand, and is expected to reach over 2m of the brand’s target family audience.

Caring is the hardest thing we do Aunt Bessie’s has launched a £3.1m marketing campaign to introduce its new brand platform ‘Caring is the hardest thing we do’. The campaign initially runs through to Christmas and includes a new TV advert supported by video-on-demand, digital and shopper activity, as well as a high-profile influencer campaign.

for all the latest product news, head to www.slrmag.co.uk/category/product-news/ www.slrmag.co.uk SLR November 2020.indd 31

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Feature

Vaping

FRESH LOOK AT VAPING

The vaping category is in strong growth once more, fuelled by the Menthol Ban in May and the effects of Covid-19, so is it time for a fresh look at the category?

W

hichever way you look at it, the vaping market in Scotland and across the rest of the UK hasn’t exploded in quite the way that many industry commentators predicted, or indeed hoped.

The last couple of years in particular have seen growth in the market stall and even May’s ban on menthol and other flavoured tobacco products didn’t have quite as dramatic an effect on the vaping category as many had expected or hoped for.

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www.slrmag.co.uk 06/11/2020 11:07:01

why not buy ? shoppers do.

N E W M Y B L U. H A N DY A N D E A S Y VA P I N G.

This product contains nicotine. 18+ only. Not a smoking cessation product. Š Fontem 2020.

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ePod

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Vaping

Feature

Sales did increase after the ban, but the 12.6% increase recorded by IRI in the 12 weeks following the ban was hardly the boom that retailers desired.

Vaping remains, nonetheless, a significant category and it is likely that it will grow in future once the morass of legal issues and misinformation Duncan Cunningham, it currently finds itself mired in UK Corporate Affairs is finally overcome.

Director at Imperial Tobacco & blu.

The category is currently worth around a whopping £1bn in the UK, with around 30% of vaping sales taking place in traditional retail stores [ECigIntelligence July 2020]. A further 20% of sales are made online and the remaining 50% come through specialist vapeshops.

Overall, pod-mod systems are becoming increasingly popular thanks to their ease of use and flexibility, although open systems still account for over 80% of the category. Over the past year within traditional retail, nicotine salts (nicsalts) have grown to become the preferred liquid for pods.

This is thanks to the fact that they allow nicotine to be absorbed into the blood stream faster than normal e-liquids, thereby more closely replicating the experience of smoking a traditional cigarette. This is particularly value of UK relevant for adult smokers looking to switch vaping market for the first time, or those who have tried vaping in the past and haven’t been completely convinced.

£1BN

COVID IMPACT The big question at the moment is the impact that coronavirus is having on the category. Duncan Cunningham, UK Corporate Affairs Director at Imperial Tobacco & blu, says: “Whilst it is still too soon to know what the full impact of the pandemic will be, there are some trends emerging that could be shaping convenience store sales in the vaping category.

“As a result of the Covid-19 pandemic, many customers have started shopping locally or online, in part because they are less willing to go far from home for their products.

Therefore, there is an opportunity for convenience stores to retain customers of vape products that might shop elsewhere (such as specialist vape stores) under normal circumstances.”

Cunningham highlights how customer service has a particularly crucial role to play at present, given the 36

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in-store restrictions that are in place because of the coronavirus outbreak.

He comments: “Many consumers won’t wish to handle products in order to look at them before they buy and may also be inclined not to ask questions at the till point to avoid queues building up behind them, which can be intimidating. With this in mind, retailers need to be prepared to proactively offer them advice at the till point and help shoppers feel at ease by providing knowledgeable answers to their questions that really showcase their understanding of the category.”

He also believes it’s also a good idea to have a strong visual display of vaping products, positioned away from the main gantry where possible, with clear information on pricing to enable customers to browse at their leisure without the need to handle and inspect products.

Where space is limited, even

BLU OFFERS THE FOLLOWING MERCHANDISING ADVICE Product Positioning Shoppers are often drawn to products displayed at eyeline, so we’d recommend placing devices at this level, and then the supporting brand e-liquids or accessories on the shelves above and below. Low margin products, or cheaper brands, should be placed on the lower shelf, with higher margin products above the devices. Also, grouping the respective brands together in a well-organised display will help to create further shelf-appeal for products, as well as making it easier for staff to locate products for quick service and maintain stock levels.

Vape Display Solutions Many specialist vape stores have invested significantly in their store interiors to ensure they offer maximum consumer appeal. While these stores include an extensive range of products, they are often carefully displayed to promote a minimalist look, featuring sleek arrangements of products. These attractive interiors and displays help draw consumers in from the high street and drive footfall into the stores. Therefore, any independent retailers looking to compete and truly position themselves as a destination store for vapers should consider investing in their displays and range to offer a similar shopping experience for their customers.

www.slrmag.co.uk 06/11/2020 11:07:18

Vaping

a small countertop unit can help achieve this, especially if it is well organised and fully stocked. Making sure that it is positioned in a particularly well-lit part of the counter will also help increase stand out even further.

30%

market share held by traditional retail

MENTHOL MOVEMENT As highlighted above, vaping sales did hit double digit growth in the wake of the Menthol Ban in May, but the one area that perhaps unsurprisingly saw a stellar spike was menthol vaping products.

IRI data for the 12 weeks after the introduction of the ban show that menthol product sales rocketed by almost 45% in tracked channels.

Juul Labs UK Sales Director John Patterson says: “If we look at total sales across closed and open systems in the 12 weeks pre and post the removal of menthol cigarettes, then menthol and mint products contributed to almost 60% of all growth in the category, with menthol flavours alone responsible for 36% of all growth.”

Patterson hails the company’s Glacier Mint and Menthol JUULpods as key drivers and must-stock products for retailers.

He comments: “Since May, Glacier Mint JUULpods have remained the number one refill kit in the closed pod sector in the UK and Menthol JUULpods have performed strongly. Retailers who stock the JUUL range could therefore grow their category sales and offer adult smokers a credible alternative to cigarettes.”

TRAINING KEY Now more than ever, investing in education of staff is key to retaining new and existing vape customers, says Cunningham.

“If retailers don’t invest in training their staff on the products on offer, there’s a strong chance they’ll miss out on sales,” he says. “However, if they make sure their staff know the products well, so they can talk comfortably to shoppers and are equipped to answer any questions they may have, this will pay off massively in terms of sales and repeat visits.

“As retailers become more familiar with the category and their customers’ needs, we recommend tailoring the range offered to ensure it caters to demand. Proactively engaging with shoppers at the till point is a great way to provide excellent customer service.

“Retailers can use these conversations as an opportunity to advise customers on the different products and any supporting promotions available. As well as offering customers the much-needed support they need, doing so will also help retailers gather useful intel about their shopper purchasing habits that will help them shape their range.” www.slrmag.co.uk SLR November 2020.indd 37

Feature

MISINFORMATION ‘ COSTING LIVES’ Industry and political figures have responded to the headline findings of a new vaping report by Action on Smoking and Health (ASH), which include a drop in the number of adult vapers for the first time, an increasing misperception of the relative risks of vaping to smoking and the positive influence that flavours were having on helping smokers quit and prevent relapse.

The study revealed that: Q The number of adult vapers decreased from 7.1% to 6.3% of the UK population in the last year Q Just 39% of smokers were aware that vaping is less harmful than smoking, down 9% on the year before Q 41% of ex-smokers said their main reason for vaping was to aid in quitting cigarettes Q 20% said that they vaped to prevent using cigarettes again.

Nearly 20% of current vapers reported that they would smoke more, or revert to smoking, were flavoured liquids to be banned in the UK. John Dunne, Director General at the UK Vaping Industry Association, said: “Misinformation continues to be a huge challenge for the industry despite its efforts to make consumers aware of the evidence-based facts, including Public Health England’s statement that vaping is at least 95% less harmful than smoking.

“Inaccurate and misleading reporting, together with highly questionable research, gives a negative view of vaping to smokers who may otherwise quit. Even worse, it could make current vapers reconsider whether they’ve made the right move by taking up e-cigarettes.

“There are still 3.2m vapers out there who have made the successful switch but there are also 6.9m smokers – of which nearly a third have not tried vape products.

These smokers can still turn to vaping to quit cigarettes and benefit from harm-reduction.”

Gareth Johnson MP, member of the All-Party Parliamentary Group for Vaping, commented: “Vaping is significantly safer than smoking and false information to the contrary is literally costing lives. If smokers switch to vaping there is clear scientific evidence that it is better for their health so we need more encouragement of smokers to make this change.”

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Feature

Sports & Energy Drinks

BRINGING ENERGY TO LOCKDOWN

Coronavirus has had a massive impact on how shoppers live their lives and that has had a knock-on effect on consumption patterns in the vital sports and energy category.

T

he impact of Covid-19 on how shoppers in Scotland live their lives has been there for all to see and the subsequent effect on consumption patterns has been equally significant.

In soft drinks in general and sports and energy drinks specifically, a significant shift towards take-home packs has been evident – and growing.

Matt Gouldsmith, Channel Director, Wholesale at Suntory Beverage & Food GB&I, says this shift has big implications for retailers: “In recent months we’ve seen an increase in drink-later formats, with the market growing over the onset of the pandemic [Kantar, June 2020]; our drink-later portfolio is growing by 15% and multi-packs have played a large part in driving this, currently experiencing a growth of +17.9% [IRI, Aug 2020] as the winter season draws in.

“Our portfolio mirrors this market trend, as we’ve seen strong growth of 20% [IRI, March 2020] in Lucozade Energy’s drink-later range, including 1L bottles and multipacks, which is expected to continue into the festive season. In fact, Lucozade Energy’s drink-later portfolio is growing faster than the soft drinks category in general [IRI, July 2020], meaning it’s increasingly important retailers have a larger format offering for this demand.”

Soft drinks are clearly an important part of the take home occasion, as shoppers look for their favourite brands to enjoy with meals and snacks as Christmas approaches – but taking a fresh look at your take home offering sometime soon might be time well spent.

Gouldsmith does, however, urge retailers to pay close attention to the needs of their shoppers and adapt their soft drinks range accordingly, as impulse drinks allow consumers to offer their families and guests a variety of drinks in new, exciting flavours for night in occasions.

“We are investing in ambitious innovations across

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our portfolio of leading brands to drive sales for retailers by giving consumers a choice of exciting flavours in both drink-now and drink-later pack formats,” he says. “Lucozade, the UK’s biggest sport & energy drink brand [IRI, Mar 2020], launched a new sub-brand this year. Sweetened with stevia, and with 4.3g sugar per 100ml, Lucozade Revive is designed to offer a different type of energy. It’s not a boost or a buzz, it’s a naturally inspired uplift that makes drinkers feel revitalised and back in the groove. Revive has natural fruit flavours, no artificial colours, and vitamins B3, B5, B6 and B12 to help reduce tiredness.”

Lucozade Energy has also introduced a new addition to its flavours range. Lucozade Energy Citrus Chill, a new lemon & lime flavour, is available in 380ml PMP and standard packs. It joins the market-leading range of Lucozade Energy flavours and will build on the successful launches of Lucozade Energy Apple Blast and Lucozade Energy Watermelon & Strawberry Cooler.

MULTIPACK MOVER Red Bull is also focusing on multipacks with the launch last month of its latest campaign, Red Bull Air Mail, an innovative on-pack promo featuring on Red Bull Energy Drink 250ml 4-packs in the impulse channel. The campaign features a limited-edition sleeve on Red Bull Energy Drink 250ml 4-packs that becomes a postcard which can be sent to a friend or family member offering the opportunity to sample a 4-pack themselves for free. Postcard recipients simply enter a code online to redeem the pack.

Red Bull says its multipacks have grown over 40% in the last month alone, making it the perfect time for retailers to stock up.

Last month Red Bull also announced that its Summer Edition, launched in July, will be made a permanent SKU, and will be renamed the ‘Red Edition’, available in a PMP www.slrmag.co.uk 06/11/2020 11:07:24

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Feature

Sports & Energy Drinks

250ml can at £1.35. The Summer Edition’s rate of sale is in line with the top launches in Sports & Energy, says the brand, as shoppers bought over 150,000 cans within just one month of launch.

GAME ON With more people spending more time at home during the pandemic, gaming has been flourishing and Monster Energy is helping retailers cash in with a new gaming partnership with Microsoft’s new 2021 Halo Infinite game. Now in its 17th year, the Halo franchise has sold over 79 million games worldwide, making it one of the biggest names in the gaming industry.

For the first time, promotional packs of Monster Original were joined by other leading variants from the Monster range, to increase the appeal of the promotion to an even wider audience. Launched last month, the promotion sees codes featured under the ring-pulls of single and multipack cans of Monster Original and Monster Ultra White.

Codes are also be available for the first time under the ring-pulls of the Monster Juiced Mango Loco and Pipeline Punch variants.

The codes allow gamers to enhance their experience by exchanging them for a 30-minute ‘Double XP Boost’ to use in the game’s multiplayer modes. Until 31 March 2021, consumers will be able to enter their codes on a Monster microsite, which will then be uploaded in their Xbox Live account – giving them Double XP and collectable Monster-branded content that will be added 40

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to their inventory and available in-game when Halo Infinite is released. They’ll also be entered into a prize draw to win exclusive prizes, including the new Xbox Series X console.

The promo packs are supported with POS materials available from the Coke Customer Hub (cokecustomerhub.co.uk), to help maximise in-store visibility and drive sales.

ROCKSTAR SHIFT Britvic and PepsiCo have very recently announced that they have renewed their franchise bottling agreement for a further 20 years for PepsiCo brands in the UK with one of the consequences being a transitioning of the popular Rockstar energy brand from AG Barr to Britvic. The deal saw Britvic assume responsibility for the brand at the start of this month.

Commenting on the agreement, Silviu Popovici, CEO PepsiCo Europe, says: “We are very pleased to announce this new and enhanced exclusive bottling appointment with Britvic in Great Britain, as well as further strengthening our portfolio with the exciting addition of Rockstar. This decision was based on our history of sustained strong performance in the market, backed by Britvic’s ongoing commitment to significantly invest behind our brands.”

HOME-GROWN ENERGY “Energy is a fast-growing part of the soft drinks market delivering the highest profit per litre for retailers, with over one in three soft drinks sold in Scottish convenience stores being an Energy drink [IRI, Sep 2020],” says Adrian Troy, AG Barr’s Marketing Director.

“The energy category has always been driven by people’s needs and there are currently big sections of society that are busier than ever before. We may have lost the busy morning commute, which has always been a hotspot for energy consumption, but it’s been replaced by the pressure of lockdown, juggling childcare and the need to catch up on work late into the evenings which creates the need to feel alert and awake throughout the day.”

Troy highlights how flavoured energy drinks now account for 34% of the mainstream energy market and are growing faster than original energy [IRI, Sep 2020].

Troy sees Irn-Bru Energy as the perfect product to capitalise on those trends and says that half of all Irn-Bru Energy cans sold are bought by shoppers in addition to their normal energy drink, helping to drive incremental sales for retailers. Additionally, the brand is growing four times faster than the total energy market [IRI, Sep 2020], making it a must-stock for retailers. www.slrmag.co.uk 06/11/2020 11:07:53

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06/11/2020 11:07:55 30/09/2020 17:23

Feature

Forecourt Update

FORECOURTS BACK IN GEAR It’s been a long and difficult summer for many forecourt operators but there’s plenty of activity to help rejuvenate the sector, even with further Covid restrictions in place.

T

his year has proven particularly difficult for many forecourt operators with fuel volumes well down for many and there are still plenty of challenges ahead – but there’s plenty for retailers to get excited about and look forward to as they set out to regain some semblance of normality.

One major piece of recent news is that the government has announced another £49m in funding to support the automotive industry’s transition to low-carbon technologies. Some 31 projects are receiving a portion of £10m from the government’s Automotive Transformation Fund, to support development of low carbon emission technologies for vehicles with one project in particular, Thurso+, aiming to upscale a battery cell production facility in the town.

The move will help accelerate the shift towards electric vehicles and offers more opportunity to retailers keen to service the growing number of customers using electric and hybrid vehicles.

Meanwhile, the JET fuel brand has been keeping forecourts front of mind with its first TV ad for over 20 years. The campaign captures how JET champions the driver – providing all the essentials they need to ‘Keep On Moving’.

The TV spot is part of JET’s ongoing brand awareness programme designed to increase

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visibility and consideration amongst new and existing customers.

A fresh take on a classic road movie theme, the campaign captures the journey through the eyes of the driver and features a man at a grand piano travelling through dramatic countryside before stopping at a JET forecourt to refuel before hitting the road again.

“We are continuing to invest in our brand and the growing retail business to be the best we can be for our drivers, our dealers and the local communities we serve” says Mary Wolf, MD for UK Marketing at Phillips 66. “In fine tuning the JET brand our aim is to improve the experience for our customers and to give the drivers who visit our forecourts everything they need and want to continue their journeys quickly and safely. It is a simple, straightforward ‘driver-first’ ethos that is perfectly captured in this new campaign.”

Fuel supplier Certas Energy has also been working hard with the launch of Certas

Energy Dealer Rewards, an online resource that offers free access to personal wellbeing tools, learning courses and discounts from leading brands.

The scheme provides tailored programmes that can help forecourt retailers and their employees to improve their personal wellbeing and navigate these challenging times. The platform’s online learning resources offer hundreds of courses to support professional growth, with categories including Business & Management, Health & Psychology, Technology and many more.

Certas Energy Dealer Rewards is available to all Gulf and Pace dealer employees at no additional cost.

Richard Billington, Retail Director at Certas Energy, commented: “Our team is working non-stop to find creative solutions to support our dealers and their workforce throughout and beyond this national emergency. What’s been difficult for many people is finding new ways to spend the additional hours we’re all at home – whether it’s business as usual or not. That’s why I’m delighted to launch Certas Energy Dealer Rewards to help our retail network and their teams get the best from this extra time at home.

“With its wide range of learning and wellbeing tools, we hope our colleagues will find the platform to be a useful resource for personal and professional development as we prepare for the time when we can all return to normality.” www.slrmag.co.uk 06/11/2020 11:08:03

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gulfoil.co.uk/retail 06/08/2020 11:40:11 06/11/2020 11:08:15

Feature

Winter Products

MEDICATION TIME?

A plethora of Covid-related issues may combine this winter to ensure that the over-the-counter medicine opportunity is a huge one for local retailers this year.

PANADOL REFRESH AND TV AD Panadol has revamped its look with a new, contemporary packaging design across its whole range and the brand is also back on TV for the first time in seven years, driving awareness as we enter the winter months.

The new design is set to help distinguish Panadol and encourage consumer engagement and trading up. Brand communications on TV and across digital media platforms will further encourage this, highlighting that the ingredients in Panadol Advance and Panadol Extra Advance provide fast and more effective pain relief than standard paracetamol.

The TV campaign, Together, We Shine Brighter, will run until December and will also be supported with a £1m social, digital and search programme.

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H

aving a cough, a cold or a fit of the sneezes is never an enjoyable experience for shoppers, but in the current coronavirusdominated climate with all sorts of sensitivities around personal safety and health, the prospect of suffering from any of these minor ailments is less appealing than ever for consumers.

Sales of pain relief products typically increase by around 22% [Nielsen Scantrack, Feb 2020] in a normal year, but in this very abnormal year we could see a fresh and potentially huge opportunity for local retailers, as Paul Trethewy, Controller for Convenience at GSK, says: “Over the last few months, retailers have played a crucial role in supporting their local communities and shopper needs. We’re seeing consumers regularly shop at their local stores, and with this likely to continue for the long term, there’s a great opportunity for the convenience channel to meet consumer need for over-the-counter (OTC) cold and flu treatments as we move towards the autumn and winter months.”

OTC solutions are becoming a popular purchase for consumers, as they seek selftreatments. The cold & flu sector has seen a growth in shoppers across most age

Paul Trethewy, Controller for Convenience at GSK.

groups [Kantar, Feb 2020], presenting a great opportunity for retailers to build their offering in store. “With the cold treatments sector continuing to grow at upwards of +5% [Kantar, May 2020], it’s important that retailers are prepared by stocking well-known brands such as Beechams and Piri that will reassure shoppers when looking for over-thecounter medication,” says Trethewy.

“When we combine the number of people visiting GPs due to cough and congestion symptoms, cold and flu is the second most common minor ailment that leads to these visits. With the current situation meaning the NHS continues to face pressure, many www.slrmag.co.uk 06/11/2020 11:08:19

Winter Products

shoppers are increasingly looking to self-treat their cold and flu symptoms, but with an emphasis on maximum impact.”

As a result, GSK is expecting the impulse channel to be an important provider of OTC cold and flu treatments. So it’s vital that retailers are aware of which sectors within the OTC and winter remedies category are thriving. Two key opportunities here are the multi-symptom sector and the sore throat sector.

“Beechams has must-stock products to drive sales designed for treating multisymptoms, making it a convenient solution for shoppers as they look for cold and flu medication,” says Trethewy. “Our All-In-One range gained a +1.2% increase in value sales in the last year [Nielsen, Feb 2020]. Stocking a portfolio of Beechams, including our powder and liquid products will enable retailers to cater for multiple consumer needs.”

He recommends the following lines as must stocks for all retailers: Q Beechams All-In-One Max Capsules – 16’s Q Beechams All-In-One Liquid – 160ml Q Beechams All-In-One Tablets – 16’s Q Beechams Powders – 10’s

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Beechams All-In-One Max Strength Capsules saw an 87.3% spike in value sales leading up to and during the Covid lockdown. By stocking Beechams, a product that tackles both cough and congestion, retailers can improve their cold & flu offering for consumers.

Piri is another must-stock range as it continues to be the UK’s No.1 selling allergy care brand.

To gain maximum value from key brands like this, GSK advises retailers to position them at eye level and place them on the shop floor to immediately highlight their offer and reassure shoppers.

While some products are required to be kept behind the counter, retailers should always look to stock some self-treatments on the shop floor to minimise disruption to a shopper’s journey as they seek cold and flu solutions.

With 24% of shoppers admitting to buying healthcare products on impulse [C&F PDJ IPOS, May 2014.], it’s important retailers position their winter remedy products on the shop floor to encourage impromptu purchases and to avoid missing out on additional revenue.

Feature

GSK RANGING & MERCHANDISING TIPS Q Additional basket items: To enable additional sales through up-selling, retailers should place supporting products such as tissues and lip balm close to their cold and flu fixtures.

Q Offer different OTC formats: Retailers should cover all consumer needs, by providing a portfolio of OTC solutions in a variety of different formats such as liquid, tablets and sachets.

Q Advanced preparation: 40% of cold and flu shoppers stock up ahead of the winter months, so retailers need to ensure they are prepared ahead of season, to solidify confidence within their customers.

Q Value of fixtures: Utilise open fixtures and free-standing display units on the shop-floor, as this will help encourage impulse buys.

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Feature

Tea

TEA UP FOOTFALL

Under coronavirus, tea remains a vital footfall driver for local retailers and the category is in strong growth over the last few months.

A

s restrictions continue to affect everyday life and the call to shop locally and support local businesses grows, the role of local retailers and the service they provide to communities is growing in importance. Social distancing and other restrictions mean that footfall has taken a hit over the last seven or eight months, but massively increased basket spends have more than compensated for the lower number of shoppers visiting stores.

A key challenge for retailers then is to focus on growing footfall once more and a great way of doing that is by focusing on the product categories that bring shoppers to their doors on a regular basis. One such category is tea.

Across Scotland tea sales have remained strong, with volume sales of tea overall up 3.8% in the 12 weeks to 3.10.20 [AC Nielsen] and up 2.6% in value. Aside from sales of green tea which have seen a slight fall, all other categories are showing growth: Q every day black up 3.3% Q fruit and herbals up 5.4% Q decaf up 13.4% Q redbush up 12%.

THE APPEAL OF TEA The figures are an encouraging sign of tea’s popularity and the appeal of tea presents opportunities for sales. Sourced from natural ingredients and naturally low in caffeine, tea fits well with the desire for a healthier lifestyle, something very much front of mind just now. It can help contribute to our daily fluid 48

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intake and has good associations with taking a soothing break or as a social facilitator to catch up with others.

With many different flavours and formats, both hot and cold, there really is a tea for everyone and tea shoppers are good for sales, often bringing larger baskets with companion items like biscuits, milk, or breakfast products.

CURRENT TRENDS Kantar figures show that the numbers buying tea and the spend per buyer have both gone up and Tetley still has the largest number of buyers and the greatest household penetration up 4% YOY. Everyday black teas still dominate sales, but shoppers are adding different teas into their selection which is particularly benefitting sales in ‘healthy’ sectors like decaf, fruit & herbal and redbush.

Another area of interest is Cold Infusions, ideal to drop into cold water to perk it up with a fruity burst of flavour. Great for everyday hydration on warmer days.

WHAT BEST TO STOCK Tea shoppers like brands and if you don’t stock what they want they will go elsewhere.

Think about what types of tea will suit your customers best, a green and fruit & herbal offering plus an essential decaf to complement everyday black is a good place to start. Try to site companion products close by, or secondary site tea with items that go well with tea occasions.

SIZE, VALUE AND SHOPPER LOYALTY With more people opting to shop locally, the type of packs they are looking for is changing too. Smaller pack sizes of 40s and 80s continue to do well for local stores, but larger packs sizes like 160s and even 240s are fast becoming essential stocks.

The offer of a safe place to shop, combined with assurance of value will be increasingly important to maintain customer loyalty. Price mark packs and packs with extra free will grow in importance in the battle for customer retention – 82% of shoppers actively seek them out when shopping (Lumina Intelligence).

REACHING CUSTOMERS Throughout the most challenging times Tetley has continued to support the brand with its Now We’re Talking television ads and a series on online campaigns. The reach of the campaign has been significant.

With more social media followers than any other tea brand, digital marketing has a prominent role in Tetley’s marketing, combined with traditional advertising and sampling in select magazines: Tetley interacts and engages with different groups to create desire for tea and drive sales. www.slrmag.co.uk 06/11/2020 11:08:49

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UTC

BURGER BUDDIES?

Marketers don’t tend to be high on UTC’s Christmas list. He blames them for most of the world’s ills, so unlike most folk who found it inspiring, the auld boy took a much dimmer view of Burger King’s decision to ostensibly urge its customers to buy from its deadly foe, McDonald’s.

Not afraid to swim against the tide, the auld yin dismissed the ad as a “a fauxcontroversial, social media attentiongrabbing stunt”. Which is a fairly articulate criticism by his standards.

We’ll leave you to make up your own mind...

FLIPPING MADNESS

UTC has never been much of a man for burgers. A fish supper or a Greggs steak bake, absolutely, but burger joints have never done it for him. It might be all those baseball caps and acne. Whatever the reason, his heart sank the other day when he learned that the last McDonald’s-free county in England has just lost its badge of honour.

It was with a heavy heart and a tear in either eye that the auld boy shared the sad news with the SLR team that Rutland in the East Midlands had just allowed a McDonald’s to open for the first time.

TRUMPKIN WASTE The US election was drawing near as SLR went to press so UTC couldn’t resist this poor excuse to use a photo of a pumpkin carved in in the image of the inimitable Donald Trump, hopefully ex-President of the United States by the time you read this.

A press release which would ordinarily have been met with a quick if somewhat shaky stab of a gnarled finger in the direction of the ‘delete’ key has been instead called into action to allow UTC to use this photo.

So here goes.

Apparently 126,000 tonnes of pumpkin waste are heading to landfill this year. The release dramatically read: “With parents tearing their hair out this half term, many have turned to Halloween pumpkin carving to entertain the little ones – however next week the discarded pumpkin carcasses will be heading for landfill, all 12.6 million of them.”

Apparently we should all be making soup, pies and bread with them instead.

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L A U T VIR SLR REWARDS 2020 A VIRTUAL FESTIVAL OF EXCELLENCE With Coronavirus ruling out live events for the foreseeable future, this year’s SLR Rewards will for the very first time in their near 20-year history be going virtual!

On Friday 11th December at 6pm we will be bringing the entire Scottish local retailing industry together, as we do every year, but this time retailers will be able to join the party from the comfort of their own home, or store, via their PC, laptop, smartphone or tablet.

FRIDAY 11TH DECEMBER, 6PM

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