SLR January 2023 Edition

HAPPY HOGMANAY 2022

BORN TO MIX

We believe the world becomes a better place when we mix beyond our differences. This bottle design encapsulates the power of unity and how weaving the world’s diverse threads together can break conventions and make us stronger.

NEWS

06 Convenience Asda unveils plans to accelerate the roll-out of its new Asda Express convenience store concept.

07 Lottery Incoming National Lottery operator Allwyn acquires rival Camelot.

08 Supermarkets A Which? investigation reveals evidence of price ‘hiking’ of budget and own-brand products.

10 Services As the cost-of-living crisis continues to bite, PayPoint Counter Cash withdrawals hit £1m a week.

12 News Extra Charity The Scottish Grocers’ Federation forges a new partnership with industry charity GroceryAid.

18 Product News A premium Irish crisp brand comes to the UK and Mondelez unveils a new resource for retailers.

20 Off-Trade News The Macallan celebrates a former boss with a short film and Pernod Ricard announces plans for a carbon neutral distillery.

INSIDE BUSINESS

22 Deposit Return Scheme A newly-published Scottish Government document moves the likelihood of a supermarket-led DRS another step closer.

25 Advertising Feature Envipco With Scotland’s Deposit Return Scheme set to go live in August, the easiest way to meet your obligations is with a reverse vending machine.

26 Advertising Feature TOMRA Mark Brill, UK & Ireland VP Sales and Marketing for TOMRA, looks at what we know about the Deposit Return Scheme.

28 Product of the Year Awards There’s still time for you to make your voice heard as SLR seeks to discover just what was 2022’s best NPD.

30 Hotlines The latest new products and media campaigns.

42 Under The Counter The Auld Boy comes across a cunning canine way of cashing in on the Deposit Return Scheme.

FEATURES

32 Seasonal Occasions Maximise footfall in 2023 by taking advantage of calendar occasions old and new, such as the King’s coronation.

38 Cakes & Biscuits The snacking category is showing no sign of slowing down with brands adapting quickly to potential HFSS restrictions in Scotland.

40 Healthy Eating Health consciousness is more popular than ever among shoppers and the big brands are responding to help you meet that demand.

Dalry retailer unveils expansion plans

Premier Carrick Stores, based in Dalry, North Ayrshire, could be set to extend by 142sq m under plans lodged with the local authority. The plans would see an adjacent flat used to enlarge the store with a replacement single-storey extension built provide additional retail floor space and storage space. The plans, which are pending consideration, also include an ATM and new signage.

Coronavirus ‘can live on food for days’

Covid-19 could live on certain groceries – including fresh fruit and veg – for days in certain conditions, new research suggests. The research found that the amount of time the virus lasts can vary. It lived on peppers, bread crust, ham and cheese for several days under some conditions, but lasted for just hours on the surfaces of croissants and pain au chocolat. However, the overall risk to consumers remains very low.

Three Highland weekly newspapers withdrawn

Highland News and Media is to stop printing the Turriff, Inverurie and Ellon Advertisers. The publisher said the communities would continue to be served via its Grampian Online website. In addition, The Highland News is to be incorporated into the publisher’s flagship paper, the Inverness Courier, and the North Star will be incorporated into the Ross-shire Journal.

ACS launches Deposit Return Scheme explainer

The Association of Convenience Stores has launched a new explainer video and briefing on Scotland’s Deposit Return Scheme (DRS). The briefing provides retailers with an overview of DRS, which is due to go live on 16 August. The video explainer and slide deck include everything that retailers will need to know to prepare for and operate DRS.

Asda to open ‘over 300 convenience stores’ by 2026

Asda has unveiled plans to create 10,000 new c-store jobs over the next four years as it accelerates the rollout of its new Asda Express store concept. Last month the supermarket opened its second Asda Express convenience store in Tottenham Hale, north London, and con rmed its plans to open 300 more by the end of 2026.

e convenience sector, which is forecast to see sales grow by 13% to more than £50bn by 2027, is a key part of Asda’s long-term growth strategy to become the UK’s second-largest supermarket.

Asda Express stores cater for a broad range of customer needs, including ‘top up’ shops, lunch on the go, and cooking dinner from scratch.

e stores will stock around 3,000 products, including a range of fresh, ambient and chilled groceries, as well as products from Asda’s premium Extra Special range and a broad selection of beers, wines and spirits.

POST OFFICE

A range of hot and cold ‘food for now’ options will also be available from Asda and partner brands including Leon, plus ‘food for later’ choices such as ready meals, pizzas, stir frys and a selection of £10 meal deals for two people. Asda’s ‘toyou’ parcel collection and return services and a rapid delivery service through Uber Eats will also be available in some stores.

Mohsin Issa, Asda’s co-owner, said: “A key part of our growth strategy is to provide customers with more opportunities to shop at Asda closer to where they live or work. With more than three quarters of the UK population visiting a convenience store in the last 12 months, the potential for growth in this market is signi cant.

“Our ambition is to become the convenience destination of choice by providing shoppers great value and a comprehensive and convenient range of products and services under one roof.”

See p16 for more on this story.

Post Office forecasts closures if energy support ends

Energy bills for the average post office have jumped 249% and are set to rise by £6,000£8,000 next year – putting these community hubs and the essential services they provide at risk of closure, new research reveals.

The research from London Economics shows that Post Office and its 11,500 branches contribute £4.7bn to the UK economy per year and visits to post offices generate over £3bn a year of spending in nearby shops and businesses. However, this contribution is under threat if post offices

cannot afford to pay spiralling energy costs.

The Post Office is calling on the government to continue to support them by extending the Energy Bill Relief Scheme for its branches beyond 31 March 2023.

To date, the Energy Bill Relief Scheme has helped cap the increase in energy bills for post offices, which has been a lifeline for thousands of postmasters. The government is now reviewing the scheme to determine which businesses are most vulnerable and merit continued support.

Nick Read, Chief Executive at Post Office, said: “Our postmasters are not immune to the profound cost-of-living crisis and escalating energy bills, and they need help to survive this winter and beyond. Government should not overlook the important role they play in the economy and in keeping us all connected – both nationally and in every local community across the country – and we strongly urge them to extend the Energy Bill Relief Scheme support in place for post offices beyond 31 March 2023.”

Camelot acquired by incoming Allwyn

National Lottery operator Camelot UK Lotteries is set to be sold to incoming operator Allwyn, which will take over the management of the National Lottery from 1 February 2024.

e Czech-based company was granted the licence to operate the National Lottery from Camelot earlier this year. It has con rmed that it is working with Camelot and the Gambling Commission to ensure the ease of this transition.

Allwyn’s Chief Executive Robert Chvátal said: “We are delighted to have the opportunity to acquire the current operator of the third licence for the UK National Lottery. Allwyn and Camelot share a common goal: a passion to protect and improve the UK National Lottery, and the good causes it celebrates. Common ownership of the operators of both the third and fourth licences will help ensure the successful delivery of the National Lottery both in 2023 and over the next decade.

“Allwyn is committed to making the National Lottery better, raising more for good causes and improving player protection. is deal strengthens the transition process and helps support

Allwyn in achieving its vision for the National Lottery.”

e acquisition, which is subject to regulatory approvals, including from the Gambling Commission, has been welcomed by the NFRN.

National President Jason Birks said: “We congratulate Allwyn on the acquisition of Camelot from Ontario Teachers and hope that we can continue a strong relationship that is mutually bene cial. e Fed calls on Allwyn to consider the independent retailer during this transition, as they are central to the functionality of the lottery system and must be supported fully during this changeover. We hope that Allwyn will take the time to meet with the Fed to mitigate any impact this transition may have, and we look forward to working together.”

POLITICS

Greenock c-store plan

Greenock retailer Harry Lalley has applied for planning permission for a new convenience store and hot food takeaway at a central Greenock site. The site was formerly home to Nelson Street EU Congregational Church, which was put up for auction in 2017, and demolished in February and March 2021. The shop would have a trading space of 187sq m and would have 14 parking spaces. The retailer currently has two other stores Greenock stores in Auchmead Road and Fife Road. The application is pending assessment by Inverclyde Council officials.

Scotmid launches community orchard scheme

Scotmid has launched a new environmental and wellbeing initiative – ‘Scotmid Community Orchard’ – that will create a Scotland-wide orchard of thousands of trees and bushes. The retailer is seeking a group near each of its stores to plant five or more fruit trees or bushes within a community space. It will award £200 to each successful applicant, to fund the purchase of plants. It is set to benefit almost 200 communities across the country. To apply, visit smartsurvey. co.uk/s/communityorchard before 20 January 2023.

M&S unveils EV charging deal with BP

Marks & Spencer and BP pulse have signed an exclusive agreement to bring high-speed electric vehicle charge points to the retailer’s store estate across the UK. The agreement will see M&S and BP pulse – BP’s electric vehicle charging business – work together to install an initial 900 electric vehicle charge points in around 70 M&S national stores in the next two years. A combination of ultrafast (≥150kW) and rapid (≥50kW) charge points will be installed during the roll-out.

Glasgow newsagents up for grabs

Jordanhill Newsagents in the West End of Glasgow has been put on the market as its owners seek to retire. The Crow Road outlet currently runs as a traditional newsagents, with a “healthy” paper bill, and sells confectionery, essential groceries and other convenience items. The business is located close to many schools and colleges, has a dense local population, and sits close to other interconnecting neighbourhoods, such as Anniesland and Knightswood. The freehold store has a guide price of £85,000.

Scottish government loses independence case

UK Supreme Court judges have unanimously rejected the Scottish Government’s argument that it can hold a second Independence Referendum. The Supreme Court President Lord Reed said for a vote to be held legally, Westminster would have to temporarily hand over those powers to Holyrood, as in the 2014 Independence Referendum.

In response, First Minister Nicola Sturgeon, said: “That is a hard pill for any supporter of independence, and surely indeed for any supporter of democracy, to swallow.”

The Secretary of State for Scotland, Alister Jack, said that the UK Government was committed to working with the Scottish Government on the issues that matter most to people in Scotland.

Jack said: “People in Scotland want both their governments to be concentrating all attention and resources on the issues that matter most to them. That’s why we are focussed on issues like restoring economic stability, getting people the help they need with their energy bills, and supporting our NHS.”

Sturgeon has confirmed she will take the campaign into the next UK general election.

Nisa World Cup community push

Nisa’s Making a Difference Locally charity handed out almost £40,000 to 32 sports teams across the UK during recent World Cup, so they could buy new kit and equipment. Nisa retailers could nominate sports clubs in their communities to be in with a chance of a charitable donation. The 32 clubs were randomly selected and received a donation of £1,000 via their local Nisa retailer. Each nominated club was also matched to a World Cup team in a sweepstake with more donations awarded to the clubs whose teams won the tournament or came in second, third, or fourth.

One O One partners with RVM

One O One Convenience Stores has signed a deal to work with RVM Systems for the supply and operation of Reverse Vending Machines. The partnership will enable One O One Stores to implement Scotland’s Deposit Return Scheme in all its stores, enabling customers to quickly and conveniently dispose of used drinks containers.

ACS flags up mental health support available

The Association of Convenience Stores is reminding retailers about the emotional, financial and practical support that is available through GroceryAid for employees and their families. The charity has a helpline and a live chat that are available 24/7, 365 days a year, which provide free and confidential emotional support to anyone working in the grocery industry. For more information about GroceryAid and to access support please visit groceryaid.org.uk or call the helpline on 08088 021 122.

CJ Lang donates £142k

CJ Lang & Son and Spar Scotland donated a total of £142,753 in 2022 to community groups, charities, and foodbanks. More than £69,000 was donated to Marie Curie; the Kiltwalk challenge raised £24,038; the community cashback campaign during COP26 meant £26,000 went to 26 charities, community groups and projects across Scotland; £7,474.03 went to the Red Cross; and £15,518.11 went towards various donations to local charities and communities throughout the year.

Supermarkets ‘hiking’ prices of budget and own-brand

Supermarkets have been hiking the prices of their budget and own brand ranges by as much as 175% over the last 12 months, according to new research from Consumer champion Which?

e organisation’s supermarket food and drink in ation tracker shows “huge” price hikes on everyday budget and own-brand products. Which? tracked the annual in ation of tens of thousands of food and drink products across seven months at Aldi, Asda, Lidl, Morrisons, Ocado, Sainsbury’s, Tesco, and Waitrose to see how in ation is impacting everyday products.

e rst wave of data revealed that supermarket own-brand and budget ranges have risen on average by as much as 18% year-on-year, compared to around 13% for premium own-brand ranges, and 12% for branded foods.

e biggest price increases on supermarket budget food and drink for the quarter ending 31 October between 2021 and 2022 were on Cream elds So Cheese (200g) at Tesco which went from 49p to 84p – an increase of 72% and Sainsbury’s Simply Muesli (1kg) which went from £1.20 in 2021 to £2.03 in 2022 – a 70% increase.

e research found that mid-priced own-brand products tended to be where supermarket prices had risen the most. e most striking increase for this period was on Waitrose chocolate chip shortbread 200g which almost tripled in price going from 82p in October 2021 to £2.25 in October 2022 – an increase of 175%.

e worst supermarkets for overall in ation on food and drink year-on-year were Aldi (19.6%) and Lidl (19%). However, both discounters still tend to be the cheapest of the big supermarket chains to shop in overall. e discounters were followed by Asda (15.2%), Morrisons (14.4%), Waitrose (14.2%), Sainsburys (13.7%) and Tesco (12.6%). Ocado had the least in ation overall (10.3%).

Sue Davies, Which? Head of Food Policy, said: “We know the big supermarkets have the ability to take action and make a real di erence to people struggling through the worst cost of living crisis in decades. at’s why we’re calling on them to ensure everyone has easy access to basic, a ordable food lines at a store near them, can easily compare the price of products to get the best value and that promotions are targeted at supporting people most in need.”

Watchdog finds evidence of ‘rocket and feather’ fuel pricing

ere is evidence that “rocket and feather” fuel pricing – when fuel prices rise as wholesale costs rise, but then fall more slowly than costs come down – has taken place in 2022, according to the Competition and Markets Authority (CMA).

e analysis is part of an initial update on the CMA’s Road Fuel Market Study from the Competition, which was launched in July. e study follows on from an urgent review that had been commissioned by the government to look at whether the cut in fuel duty, announced in March 2022, had been passed on to consumers.

e watchdog’s analysis also reveals that: Q Prices rose by around 50p a litre from January to July, the largest leap in fuel prices ever recorded in one year, before falling by 31p for petrol and 14p for diesel since.

Q e gap between diesel and petrol prices has become larger than ever reliably recorded. Diesel now costs 24p more per litre than petrol on average.

Q Prices vary widely between local areas. e CMA looked into what may be causing high prices in certain areas and found that prices are likely to be higher at petrol stations where there are few (or no) competitors nearby – and particularly where there is no local supermarket petrol station.

Q Annual retailer fuel margins are increasing, but the causes are not yet clear. Between 2017 and 2021, the di erence between the price retailers paid for fuel and the pump price rose by the equivalent of 2-3p a litre on diesel and 3-4p a litre on petrol.

FORECOURTS Fuel prices falling more slowly than they went up

Laurencekirk convenience store on the market

RnB News, a convenience store in Laurencekirk, Aberdeenshire, has been put on the market. The high street store features a “wellconfigured trading area and wellestablished newspaper round”. RnB News is on the market on a leasehold basis, at £70,000. Retail property specialist Christie & Co is handling the sale.

Struggling Locavore launches £50k crowdfund

Glasgow-based ethical grocery business Locavore has launched a £50,000 crowdfund to help it survive the cost-of-living crisis. The company has four shops across central Scotland, four organic market gardens, and a central hub where it packs veg boxes and delivers wholesale orders to other retailers. It also has a kitchen supplying its cafés and shops. Locavore said: “Unfortunately this is all now under critical threat as we face the most difficult period in our 11-year history.”

Biggar welcomes new Spar store on High Street

Retailer Arshad Aslam has opened a Spar store on the High Street of Biggar, South Lanarkshire. The 2,500sq ft store has been refurbished after being vacant and now features a pizza parlour. The store also has an off-licence, a variety of newspapers and magazines, lottery, Payzone, ATM, Hermes, American confectionery, Equi’s Ice Cream, Tango Ice Blast, Rollover, and Costa Coffee.

Scotland loses 17% of cash machines

Scotland has lost 1,048 ATMs (-17%) since July 2018, according to new research from Swedish Banking as a Service provider Intergiro. The research shows that as of May 2022, Scotland had 5,106 ATMs – 9.3 ATMs per 10,000 residents. In addition, the data shows Glasgow Central has lost 92 ATMs since July 2018, with 258 still remaining.

PayPoint Counter Cash withdrawals hit £1m a week

PayPoint’s free-to-use cashback-without-purchase facility, PayPoint Counter Cash, has seen withdrawals hit the £1m a week mark. e service is available at 4,800 PayPoint stores in di erent parts of the UK where communities have below-average free access to cash and has provided more than £28m in cash withdrawals in the past 12 months.

PayPoint data reveals that 29% of withdrawals are for amounts impossible to withdraw from a traditional ATM – multiples of £5, £10 or £20 – showing that hard-up consumers are making every penny count as the cost-of-living crisis worsens. Over a third (36%) of withdrawals are for amounts under £10.

e data shows there has been a steady increase in total withdrawal values month-on-month. In the week commencing 14 November, 19% of withdrawals were non-ATM denominations to the penny, 29% were nonmultiples of £5, rounded to a pound or to a penny, and

Vaping ‘worth

£1.3bn’

e UK vape sector grew by 23.4% from 2017 to 2021, an increase of £251m, and stood at £1.325bn last year alone, new research reveals. e report, compiled by the Centre for Economics and Business Research (Cebr), shows that the number of people directly and indirectly employed in the vape sector – such as those employed elsewhere in the supply chain – was 17,700 in 2021. e contribution vaping made to the Exchequer through taxation was £310m in 2021.

Cebr’s report estimates that the total saving in healthcare costs associated with smokers switching to using vaping products was £322m in 2019. e research organisation goes on to say that “the potential healthcare saving if 50% of all smokers switched to vaping” would have been £698m in 2020.

In addition, the gain in “economic productivity” associated with smokers switching to using vaping products was estimated to be £1.3bn in 2019, which the study says would increase to £3.33bn if 50% of remaining UK smokers switched to vaping.

14% were for £9.99 or less.

In the rst two weeks of November withdrawals of £9.99 or less were up 15%, compared to the rst two weeks in October. ey were up 28% and 54% compared to the rst two weeks of September and August, respectively.

Alex Kemp, Head of ATM & Cash Solutions at PayPoint, said: “ rough the cost-of-living crisis, we’re now seeing what a valuable service Counter Cash is for the communities that use it.

e data shows that, potentially, up to a third of people can’t even a ord to withdraw standard amounts like £5 and £10 from traditional ATMs. What’s clear is that as taxes and costs rise, people are having to watch and control their outgoings more tightly, and o en need to budget down to the last penny. Counter Cash allows them to do that in ways that traditional cash machines don’t.”

Snappy Shopper raises seven-figure investment

Snappy Shopper has raised “a seven- gure sum” from existing investors Highland Technology, Kelvin Capital and Scottish Enterprise, to fuel growth ambitions. e investment round, which was led by major investor Highland Technology, will be used to continue to invest in the company’s growth and core technology platform in pursuit of Snappy Shopper’s mission to enable local retailers to serve customers online with a local home delivery service.

Snappy Shopper has achieved triple digit average annual revenue growth since its inception and strong growth has continued post pandemic.

e business says it intends to capitalise on the slowdown of the dark store operating model and capture consumer demand by enabling existing local convenience stores to o er a pro table quick commerce service using the platform’s leading technology. So far, Snappy Shopper has been focused on the UK convenience sector but plans to expand to other high street retailers as well as internationally.

Snappy Shopper reached numerous milestones in 2022 with 50 million products sold and more than ve million orders placed through the platform with continued record-breaking order volumes.

Convenience Matters with the SGF

Only a few short months ago, the Deputy First Minister committed to establishing a new Joint Taskforce to investigate the impact of regulation on business.

At the time, this was a welcome acknowledgement that the constant conveyor belt of legislation could put some businesses at risk. None more so than in convenience retail, already reeling from being on the frontline of increasing energy costs, food inflation and the cost-of-living crisis.

It appears that message, however, hasn’t reached the ears of ministerial colleagues. Retailers and producers now have just a few weeks remaining to submit their views on yet another sweeping set of restrictions, this time on alcohol advertising.

The consultation, closing in early March, probes the idea of placing limitations on, or potentially banning, all major alcohol advertising and promotion in Scotland.

Communities benefit when their local convenience store offers a wide range of goods and services, and footfall depends greatly on the variety of products in stock. With 18.1% of overall sales attributed to alcohol products, our Local Shop Report shows that giving customers a choice of goods is a key reason people visit their local store.

While the extensive restrictions set out in the consultation are only proposed measures, they show the direction of travel and send completely the wrong message to business.

Responsible retailers are at the heart of their communities and government must take seriously the fact that multiple initiatives are all landing on them simultaneously. All at a time when we need stability and a consistent approach for businesses across UK.

SGF announces new partnership with GroceryAid

Industry charity GroceryAid has received another signi cant boost to help support the important work it does for convenience and grocery retail colleagues in Scotland with the unveiling of a new partnership with the Scottish Grocers’ Federation (SGF), the leading trade body for independent retailers in Scotland.

e partnership caps a landmark year for GroceryAid in Scotland following the hugely successful launch of the new annual Checkout Scotland music festival in September.

GroceryAid was founded in 1857 and supports industry colleagues 24/7, providing completely con dential and free emotional, practical and nancial support to those in need.

In the wake of the pandemic, the charity is busier and more relevant than ever with a growing demand for the crucial support which it can o er. Indeed, the charity is now having to provide more support now than ever before in its 165-year history.

SGF Chief Executive Pete Cheema OBE said: “We are delighted to have this partnership with GroceryAid, one which will provide vital support to our membership. ese are di cult

times for people as they are coping with a costof-living crisis and the associated pressures that can bring to bear on their daily lives – those working in the convenience industry are no di erent.

“ at is why the access to key support such as nancial guidance and advice, online health and wellbeing support, counselling and the free helpline which is available 24/7, 365 days a year will be of great bene t. SGF looks forward to a long and successful partnership.”

Steve Barnes, Chief Executive of GroceryAid, said: “ is is fantastic news for GroceryAid to be partnering with the SGF to provide our free and con dential services to members of such a wellrespected trade association. We all know tough times lie ahead and it is establishing long-term relationships such as this that will help us drive awareness in Scotland to support even more colleagues through crises. Last year GroceryAid distributed £434k in nancial grants to Scottish colleagues, of which £120k supported colleagues in independent retailers.”

Convenience stores provide over 49,000 jobs in Scotland.

Scottish Grocers’ Federation

CHARITY New tie-up caps a landmark year for GroceryAid in Scotland

The Scottish Grocers’ Federation has confirmed that it has entered a new partnership with industry charity GroceryAid, which supports industry colleagues 24/7, providing emotional, practical and financial support.

HAPPY HOGMANAY 2022

HERE WE GO AGAIN...

It wouldn’t be a new year without another major retailer announcing that they’re going to conquer the convenience channel from a standing start. This year, we have not one but two contenders.

Asda you can understand. The stellar ambition of the Issa brothers is well known and you can see why they might think convenience is a quick and easy win. But B&Q? Come on now. That’s just insulting to both fellow retailers and to customers. Just because I bought a cordless drill from you 18 months ago, does that mean I’m happy to buy my lunch from you too?

The reason behind the latest peak in interest in convenience is the same reason as ever: money. The convenience market is flying, despite the monumental challenges of the last few years – and everybody wants a slice of that action. That’s understandable. What’s less understandable is how big retailers feel they can muscle in and take over in a channel that is all but foreign to them. Supermarket retailing is not like convenience retailing. The two channels sell similar product ranges but that’s where the similarities begin and end.

Running a convenience store, as every local retailer knows, is about much more than range. At the heart of every successful convenience store – and there are many of them – is a complex amalgam of community engagement, deep relationships, range, pricing, trust and a million other factors. Those don’t come quickly or easily, as everyone who has tried to conquer convenience has discovered.

And, as our cover story points out this month, the reason why convenience is so attractive and is growing so quickly is because the people already doing it – you! – are doing it so well. Talk to anyone who runs a chain of company-owned stores and they’ll tell you time and again that a chain run by a team of employed managers is always up against it when competing with a well-run owner-managed independent store. Heart and soul. Passion. Commitment.

Don’t get me wrong, there are some wonderful company-owned store managers – but there’s nothing to compare with a retailer who owns his or her own store and is there behind the counter every day of the week, alive to the opportunities, listening to customers, desperate to make sure his or her customers are happy.

Don’t forget, we’ve been here a hundred times before. Remember when Tesco Express was going to take over the world? And Amazon?

So, I would urge all independent retailers to take Asda and B&Q’s forays as a massive compliment. They want what you already have. But time and expe rience show that replicating your success is beyond even the biggest of them.

ANTONY BEGLEY, PUBLISHING DIRECTOR

EDITORIAL

Publishing Director & Editor

Antony Begley abegley@55north.com

Deputy Editor

Liz Wells lwells@55north.com

Features Editor Gaelle Walker gwalker@55north.com

Features Writer Elena Dimama edimama@55north.com

Web Editor Findlay Stein fstein@55north.com

ADVERTISING

Sales & Marketing Director

Helen Lyons 07575 959 915 | hlyons@55north.com

Advertising Manager Garry Cole 07846 872 738 | gcole@55north.com

DESIGN

Design & Digital Manager Richard Chaudhry rchaudhry@55north.com

EVENTS & OPERATIONS

Events & Circulation Manager

Cara Begley cbegley@55north.com

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COME AND HAVE A GO…

With local retailing set to grow at twice the rate of supermarket shopping over the next five years, Asda and B&Q’s forays into the convenience market are understandable – but what makes them think they can succeed where so many others have failed?

BY FINDLAY STEIN

Convenience has witnessed a slew of new format launches over the past 18 months or so, from both within and outside the channel. These include:

MAY 2021:

POUNDLAND

Poundland launches two trial ‘Poundland Local’ stores in Yorkshire that seek to provide a local offer but without premium convenience prices.

MARCH 2022: SWIFT

Iceland unveils plans to open four stores under its Swift convenience format following a successful trial in Newcastle in spring 2021. Intended to rival Sainsbury’s Local and Tesco Express, Swift offers grocery, chilled, fresh, alcohol, cigarettes, tobacco, food-to-go and – of course – frozen.

MAY 2022: EDDY’S FOOD STATION

Former Morning, Noon & Night boss Stephen Thompson launches Eddy’s Food Station chain in Alloa, with plans for another 30 stores over the next five years.

MAY 2022: MORRISONS RESCUES MCCOLL’S

The supermarket giant plucks the ailing convenience chain from administration and, after agreeing to sell 28 stores to allay CMA concerns, announces plans to close 132 loss-making McColl’s stores and rebrand those remaining as Morrisons Daily.

JUNE 2022: AMAZON FRESH

The 19th Amazon Fresh store, and the first outside London, opens in Sevenoaks, Kent. Despite the stores offering arguably the ultimate convenience experience with their checkout-free ‘Just Walk Out’ technology, this marked the end of Amazon’s UK growth spurt as disappointing sales force the online behemoth to rethink its expansion plans.

JULY 2022: HODNETTS STORES

Justin Hodnett, a 25-year retail veteran – most notably with Sainsbury’s and the Coop, reveals plans to launch a new chain intended to “reinvent convenience” with stores UK-wide. These will be supplied by Booker, Hancocks and Batleys. Hodnett says he plans to deploy Amazon’s ‘Just Walk Out’ tech in stores.

DECEMBER 2022: ASDA

The supermarket giant announces it plans to open 300 stores under its new ‘Asda Express’ concept, employing 10,000 people.

DECEMBER 2022: B&Q

The DIY chain says it will open “dozens” of ‘B&Q Local’ stores, offering convenience ranges similar to Sainsbury’s Local and Tesco Express.

Convenience retailing: it’s not as easy as it looks. Many major retailers have had a go over the years but, let’s be honest, their track record is uninspiring at best. Several major multiples have learned to their cost that operating convenience stores isn’t as simple as just building small footprint versions of their big box stores. ‘Build it and they will come’? Not necessarily.

e reasons why operating convenience format stores can be extremely di cult are obvious to every independent retailer, but that doesn’t appear to stop the big boys thinking they can crack it anyway. Asda and, bizarrely, B&Q, are the latest big retailers to step up to the plate to give it a punt.

So what is the big fascination with convenience? Well, the main reason is that convenience is ying. Despite all the doom and gloom – war in Ukraine, post-Brexit mayhem, soaring energy prices and industrial unrest – the future looks bright for the channel, if the crystal ball-gazers at IGD are to be believed.

According to its forecasts, the overall convenience market is set to grow by 13% over the next ve years, with sales climbing beyond the £50bn mark. Granted, in ation will account for a chunk of that, but it’s still good news. Especially since the gure is double how much IGD predicts that the supermarkets will grow by.

Another reason why convenience is attractive to businesses like Asda is the fact that it’s very hard for them to grow their supermarket estate in what is already a saturated market. e pressure from the discounters isn’t making things any easier. Yet supermarkets need growth and if they can’t grow the business through increased sales from existing stores, they need to add stores. e answer? Let’s build a convenience chain. How hard can it be?

And how many times have we heard ambitious major retailers loudly proclaiming their plans to be the leading convenience player from a standing start? e latest is Asda with Mohsin Issa, Asda’s co-owner, who has his roots rmly planted in forecourt retailing, making no bones about it: “ e potential for growth in this market is signi cant. Our ambition is to become the convenience destination of choice.”

And to bring this about, Asda intends to o er 10,000 new convenience store posts over the next four years as it speeds up the roll-out of its new Asda Express store concept. e news broke at the beginning of December, on the same day the supermarket opened its second Asda

Express store and con rmed plans for a further 300 by the end of 2026.

e stores tick the boxes for a number of convenience store missions, including top-up shops, food-to-go, and dinner from scratch. ey will stock around 3,000 lines, including a comprehensive range of fresh, ambient and chilled groceries, as well as products from Asda’s premium Extra Special range and a wide selection of beers, wines and spirits.

So far, so predictable. e challenge in building a strong independent retailing business, however, is not just in getting the right range into a store. at’s the easy bit.

e move is to be expected from Asda. A er all, Tesco gained substantial ground in the convenience sector when it acquired Booker. is brought thousands of Premier, Budgens, Londis and Family Shopper stores under its umbrella, and without too much grief from the Competition and Markets Authority, as the stores are independently owned. And more recently, Morrisons bought McColl’s out of administration, although that did upset the competition watchdog a tad.

What came as more a surprise last month though were reports that B&Q – of all retailers – was throwing its DIY-shaped hat into the ring, with plans for “dozens” of convenience stores. e rst two of these are understood to be opening in central London early this year, under a ‘B&Q Local’ fascia, which the company recently applied to trademark.

e stores will stock basic DIY products, o er a kitchen planning service, and let customers order from a wider home improvements range for click-and-collect.

Details are sketchy regarding which convenience categories the Local stores will o er, although without going into the nuts and bolts of it – if you’ll excuse the pun – B&Q boss Graham Bell gave a nod in the direction of Sainsbury’s Local and Tesco Express.

So do these incursions represent the latest in a long line of existential threats to convenience retailing as we know it?

Probably not. Just like any other business model in a free market economy, running a chain of c-stores is essentially Darwinian in nature. It’s the survival of the ttest – that’s why McColl’s went down the tubes in the rst place, when it struggled to adapt a er its wholesaler Palmer and Harvey went belly-up. Compare McColl’s to Bestway, which grabbed the opportunity to snap up 180 P&H vehicles from the administrators to start its own van sales business.

And Bestway continues to evolve, with plans to strip back its current 10 fascias to focus on just Best-one and Costcutter in the convenience channel. Managing Director Dawood Pervez says Bestway is “pushing boundaries on what a good shop looks like”.

So fair play to B&Q for looking to diversify, but it’s hard to imagine that it knows what a good shop looks like or how it builds convenience relationships with its customers. And are customers unsophisticated enough not to be able to see through B&Q’s attempt to muscle in on a growing channel?

Don’t forget too that there’s a reason that the convenience market is growing. In a word: you.

It’s growing because the people already in it are good at what they do. ey’re passionate about convenience and they care about their customers and the communities they serve.

So it’s unlikely Scotland’s local retailers need to lose any well-earned sleep over the antics of Asda, which is essentially a novice when it comes to convenience.

And what about B&Q? It should probably stick to selling lawnmowers rather than trying to cut our grass.

TV chef cooks up moneysaving Del Monte recipes

Del Monte has teamed-up with cookery author and TV personality Lisa Faulkner to promote the positive benefits of eating canned fruit and highlight the value of incorporating Del Monte’s products into everyday meals. The collaboration begins with a series of recipes utilising the brand’s core canned fruit range that includes seasonal recipes for key occasions as Veganuary and Easter.

Look who’s aiding Fareshare

Suntory Beverage & Food GB&I has redistributed over three million surplus 250ml drinks of Lucozade, Ribena and Orangina to people facing food insecurity, as part of its long-term partnership with food redistribution charity FareShare. Besides benefitting communities, the donations also go a long way in helping the company’s bid to halve the amount of food that wastes by 2030.

Müller ditches coloured milk caps

Müller Milk & Ingredients has started switching its coloured milk bottle caps to clear, with the aim of converting its whole range by this summer. The dairy company has already converted all green semi-skimmed milk caps, its most popular, to clear. While Müller’s milk bottles are fully recyclable, the coloured caps cannot currently be recycled back into food grade packaging.

F’real shakes up branding

Self-serve milkshake brand f’real is seeking to boost consumer engagement with a comprehensive redesign programme. Free to all current f’real stockists, the rebrand includes new visual content for existing base units, blending bar headers and protective screens. No equipment will be replaced, and every qualifying retailer will get advance notice of the rebrand team arriving in-store.

Product News

Bobby’s brings Keogh’s to UK

Irish premium snack brand Keogh’s Crisps has signed a distribution deal with Bobby’s Foods that will see its products available in the UK convenience channel, including Co-op, Costcutter and Nisa stores

First to launch in Bobby’s Foods will be Atlantic Sea Salt & Irish Cider Vinegar, Mature Irish Cheese and Onion, and Irish Atlantic Sea Salt.

Grown and hand-cooked in small batches from ‘crop to crisp’ in North County Dublin, Keogh’s avours combinations show a distinct local Irish in uence, with salt harvested from the Atlantic

Ocean and vinegars sourced from an orchard local to the Keogh’s family farm.

A relatively new player, Keogh’s Crisps has already won a collection of awards including 22 Great Taste Awards. It is also a winner of

the Irish Exporters Association’s ‘Exporter of the Year’ award and ‘Food & Drink Exporter of the Year 2022’.

e brand is also Ireland’s rst food producer to be accredited as a carbon neutral business.

Commenting on the Bobby’s deal, boss of the family business

Tom Keogh said: “ is is a huge milestone and supports our vision of bringing the highquality produce of Keogh’s farm to households worldwide. Growing up on the family farm, it was always a dream to be able to sell our products overseas.”

Rockstar fuels thirst for gaming

Britvic’s energy drink brand, Rockstar, has launched a new Xbox partnership, which includes bespoke limitededition cans, Xbox prizes, and a trial one-month Xbox Game Pass Ultimate membership.

Limited-edition 500ml cans feature artwork from the three games – Halo Infinite, Fallout and Elder Scrolls Online – and a QR code that gives players a one-month membership to Xbox Game Pass Ultimate.

The code also gives fans a chance to win a range of Xbox prizes, including the next generation Xbox Series S console.

Ben Parker, Great Britain Retail Commercial Director at Britvic, commented: “Stimulant energy is the largest category in impulse, with stimulant shoppers spending 80.3% more than soft drink shoppers in OOH on average. Our latest partnership and on-pack promotion with Xbox is sure to boost sales even further for retailers.”

SPORTS & ENERGY Barr buys

Boost

Barr Soft Drinks has acquired Leeds-based functional drinks brand Boost Drinks for £20m.

Founded in 2001, Boost offers a growing portfolio of cut-price sports, energy and protein drinks with an Iced Coffee range the latest addition to its stable.

Boost will continue to be run independently, operating as a standalone supported business unit within the AG Barr Group.

Chief Executive Officer Simon Gray will remain in charge.

He commented: “This is a really exciting next step in Boost’s journey as AG Barr has a proven track record of acquiring and developing attractive brands. We are confident that together we will be even stronger positioned to take advantage of a number of exciting growth opportunities.”

AG Barr boss Roger White added: “The Boost portfolio offers premium taste and performance at a competitive price, with a strong market position in the UK independent retail channel – with our proven track record of acquiring and developing attractive brands such as Rubicon and Funkin, I look forward to working with Simon and the team to ensure Boost continues to grow and develop under our ownership.”

SNACKS Premium Irish crisp brand lands in convenience

SPORTS & ENERGY

Mondelez launches new retailer website

Mondelez has launched Snack Display (snackdisplay. co.uk), a brand-new website to support retailers.

Containing product news, bestseller information, category advice, market trends and planograms, the website is designed to help retailers grow their sales.

An updated and refreshed version of the former Delicious Display website, Snack Display forms part of the broad support that Mondelez o ers retailers by bringing them a range of advice and guidance in an online format. e website will also give retailers access to other things like POS material and customer loyalty schemes.

Susan Nash, Trade Communications Manager at Mondelez, said: “We are proud to be supporting the trade with the launch of our new website, as it’s never

up today, and explore the many informative resources on Snack Display to help them maximise their sales and stay up to date.”

Mondelez said retailers should visit Snack Display for resources to strengthen their proposition to

New look for Barr range

Barr Soft Drinks is relaunching its Barr Family Range with a refreshing new look. The new packaging has started rolling across all 500ml & 2L PET, 750ml glass and 330ml can formats, including multipacks, and has been redesigned to engage shoppers and enhance on-shelf impact. The relaunch also includes a full suite of new-look POS and display units.

Swizzels puts up prices

Swizzels has made increases to its range of price-marked packs for the first time in its history. The new range has a £1.15 price mark and has started appearing in wholesalers. Before making the changes, Swizzels partnered with The Fed to conduct research among retailers to gauge their views about the move. Of the retailers surveyed, 60% said they were comfortable stocking a higher-priced PMP, provided their

CONFECTIONERY Mondelez unveils updated version of its Delicious Display site

‘Beer is not a fruit’

Brewdog has fallen foul of the advertising watchdog for sending out a marketing email that suggested drinking one of its fruit-flavoured beers counted as “one of your five-a-day” portions of fruit and vegetables. A BrewDog spokesman said: “We respect the Advertising Standards Authority’s decision and are happy to confirm that beer is not a fruit or a vegetable. We hope that sorts it out.”

Sharp’s adds to medal haul

Sharp’s Brewery has picked up five awards at International Beer Challenge 2022, including silver medals for Sharp’s Atlantic Pale Ale and its limited-edition Sharp’s Camel Valley Pilsner The Cornish brewer also picked up bronze medals for Sharp’s Offshore Pilsner, Doom Bar and Chalky’s Bite. The wins follow success at the World Beer awards in August, when Chalky’s Bite struck gold.

Deal makes UK drinks industry more sustainable Glass bottle maker Encirc has signed a deal with Accolade Wines that will see it take over Accolade’s zero-waste and carbon-neutral bottling and warehousing facility in Bristol. The 10-year agreement ensures ongoing support for Accolade’s wine brands, and provides contract bottling and distribution support for other beverage producers. The move will let Encirc provide an ultra-efficient, sustainable supply chain service.

Bloody

good show

Thatchers Blood Orange Cider attracted more shoppers than any other innovation within the beer wine and spirits category in 2022, making it the most successful BWS launch of last year, according to Kantar Shopper Panel data. Now one of the top four fruit ciders in the UK, IRS Cider & Perry data also revealed the 4% ABV premium cider added more value to the category than all other new cider launches combined.

O -TradeNews

Nothing but Nettie: The Macallan celebrates former boss

e Macallan has released a short biopic revealing the real-life story of former Managing Director, Janet ‘Nettie’ Harbinson, who cra ed the most valuable bottle of wine or spirit ever sold at auction, e Macallan Fine & Rare 1926.

e eight-minute lm, ‘ e Spirit of 1926,’ will be screened in selected cinemas globally and is

available now on e Macallan’s website and YouTube. It celebrates Harbinson’s quiet heroism and her profound legacy and encapsulates the brand’s values in her character. It is set in Speyside, primarily at e Macallan’s 485-acre estate.

Janet Harbinson is a key gure in e Macallan’s history. She assumed control of the distillery in 1918 a er its boss – her husband – died suddenly. rough her passion and care for those around her and her dedication to cra smanship, she kept the business a oat and helped to rebuild the local area.

Without setting out to do so, she also cra ed e Macallan Fine & Rare 1926, which achieved legendary status a er it fetched £1.5m at Sotheby’s in 2019. Several years on, it continues to be the world’s most valuable bottle of wine or spirit ever sold at auction.

GIN Portman Group doesn’t swallow Prescription Gin

MixPixie, a supplier of personalised gifts, may well have had its tongue firmly in its cheek when it dreamed up the label for its Prescription Gin, but it now finds it has the boot of the Portman Group firmly up its backside after a member of the public made a complaint to the drinks industry watchdog.

A textbook example of how not to package an alcoholic beverage, Prescription Gin looks designed to grace the shelves of a chemist’s shop, with its medicine bottle shape, the name ‘prescription gin’ and an exact replica of a UK pharmacy green cross on the label.

The label’s wording also came under fire, with a token “please drink responsibly” failing to offset the message “possible side effects may include extreme relaxation, giddiness and happiness”.

According to the Portman Group, MixPixie has apparently agreed to discontinue Prescription Gin and work with it to design a new label. However, as SLR went to press, it was still available on the company’s website and could be personalised with ‘patient’s name’, ‘dosage’ and ‘authorised by’ messages.

It looks like MixPixie could be heading for a dose of some very strong medicine indeed.

SOCIETY Research finds younger people are worst hit

Nearly half of Scots upset by other people’s drinking

e research highlighted that younger people are particularly impacted, with this gure rising to 57% of 18-34 year olds in Scotland, whilst 24% of adults in Scotland between the ages of 18-34 felt emotionally hurt or neglected by others drinking, compared to the Scotland-wide average of adults of 14%.

e Drinkaware Monitor 2022 gave an insight into the drinking habits of 6,318 UK adults.

ose surveyed highlighted the impact other people’s drinking has on them, from feeling physically threatened, being involved in an argument, feeling uncomfortable at social occasions, or being let down by someone.

WHISKY Woman behind world’s most expensive dram recognised

New research from alcohol charity Drinkaware has found that 41% of adults in Scotland were negatively a ected by someone else’s drinking last year.

Pernod Ricard announces carbon neutral bourbon distillery

Pernod Ricard has revealed plans for a $250m investment over ve years to build a state-of-the-art, carbon neutral distillery and ageing warehouses in Kentucky, for its Je erson’s Bourbon brand.

e investment will also include construction of a visitor centre.

As well as being carbon neutral, the new facility is also expected to be the rst distillery of its size in the US to achieve LEED certi cation, an internationally recognised sustainability framework for environmentally friendly buildings.

e distillery and warehouses will operate using low carbon

WHISKY

technologies powered by certi ed renewable electricity, meaning the distillery won’t burn fossil fuels during bourbon production.

In addition, as part of Pernod Ricard’s commitment to protect and nurture the environment surrounding its facilities, Je erson’s will continue to partner with local farmers and suppliers to source ingredients and casks.

e drinks giant also recently announced plans to invest a total of €400m equipping Chivas Brothers and Irish Distillers with more sustainable distillation technologies and greater production capacity.

Kiwi whisky makes UK debut

Spirits distributor Mangrove Global has launched New Zealand newcomer whisky brand Pōkeno in the UK.

Pōkeno (pronounced paw-que-no) rolls out with a trio of single malts:

Q Pōkeno Origin is fully matured in rst ll bourbon casks

Q Pōkeno Discovery is a combination of spirit aged in rst ll bourbon, oloroso and Pedro Ximenez sherry casks, married together in cask for a nal period of maturation.

Q Pōkeno Revelation twins spirit fully aged in rst ll bourbon and New Zealand red wine casks, married together for a nal period of maturation.

e brand’s founder, Matt Johns, commented: “For us as cra distillers, Pōkeno is an absolute hidden treasure. Not only do we have the privilege of using the pure spring water that has been drawn over centuries from the surrounding volcanic hills, but these same hills conspire with the subtropical climate to create conditions that accelerate the spirit’s maturation and avour development in the barrel. In Pōkeno, the angels don’t like to wait for their share.”

Mangrove Global boss Nick Gillett added: “We are excited to be adding this delicious brand to our portfolio. e three malts are in a class of their own. As world whiskies are growing massively in popularity it is a natural step to include Pōkeno single malts into our increasing portfolio of world whiskies.”

Beam Suntory in peatland partnership

Beam Suntory has teamed up with the Royal Society for the Protection of Birds (RSPB) to restore peatland in Scotland, thus promoting carbon capture and protecting biodiversity.

The spirits maker will contribute more than £400,000 to regenerate approximately 160 hectares of peatland at the Airds Moss reserve in East Ayrshire, which is owned by RSPB Scotland.

This marks the start of the second phase of the Peatland Water Sanctuary initiative, a $4m conservation project to restore 1,300 hectares of peatlands by 2030, enough to produce the same amount of peat that Beam Suntory uses every year in making its Scotch whiskies on an ongoing basis.

New distributor for Rockstar Spirits

Rockstar Spirits has appointed Amber Beverage as the new distributor of its spiced rum brands, responsible for Captain Webb’s Two Swallows (38% ABV, RSPs £22 to £23.50), Grenade Overproof Spiced Rums (ABV 65%, RSP £32) and the Bomb Navy Strength Spiced Rum range (57% ABV, RSP £31.50). Contact sales.uk@amberbev.com or call 01283 217703 for trade enquiries.

Whisky makers tackle harmful drinking

The Scotch Whisky Action Fund has named nine projects it will support this year as part of the industry’s ongoing commitment to promoting responsible consumption and tackle harmful drinking. Funding is given to projects taking an innovative approach to addressing the issues around alcohol misuse within a community or section of society. The fund has already provided £1m of support to over 80 projects throughout Scotland.

Bottle first for Diageo

Diageo has teamed up with glass manufacturer Encirc for a partnership that will create the world’s first net zero massproduced glass bottles. A new furnace, at Encirc’s Elton plant, will reduce carbon emissions by 90%. Powered by zero carbon electricity and hydrogen, the furnace will produce up to 200 million Smirnoff, Captain Morgan, Gordon’s and Tanqueray bottles annually by 2030.

Co-op wines and spirits winners for Nisa

Nisa retailers benefitted from specially designed point of sale materials to help promote some of the best Co-op licensed lines over the festive season. POS specifically called out awardwinning products, including favourites such as Co-op Irresistible Single Malt Whisky, Co-op Irresistible Pink Grapefruit and Elderflower Gin Liqueur, and Co-op Irresistible Malbec.

WHISKEY Jefferson’s Bourbon brand sees huge green investment

WHISKY Mangrove launches three New Zealand single malts

SUPERMARKET-LED DRS EDGES CLOSER

The likelihood of a supermarketled Scotland’s Deposit Return Scheme moved another step closer with the publishing of a document stating that for online takeback “initially only the largest grocery supermarkets will be obliged to provide a takeback service”.

BY ANTONY BEGLEY

Another month, another very concerning indication that Scotland’s forthcoming agship sustainability programme, the Deposit Return Scheme (DRS), is set to be led by the major multiple grocery retailers.

It was a concern agged up in the last issue of SLR with Scottish Grocers’ Federation Chief Executive Pete Cheema warning that Scotland could be “sleepwalking into a supermarket DRS” and the alarm bells have grown louder a er the publication of a letter from Lorna Slater, Minister for Green Skills, Circular Economy and Biodiversity to the Scottish Parliament Net Zero, Energy and Transport Committee. e letter was o cially published on the Scottish Government website on 15 December and in it Slater comments that, in terms of online and ‘distance’ sales: “I am proposing to bring forward amendments to the regulations so that initially only the largest grocery supermarkets will be obliged to provide a takeback service; all other businesses will be exempt.”

Slater goes on to say that “the takeback obligation on those supermarkets will be phased in: we will set a date for takeback to be available to the general public in 2025”.

is looks very much like another step towards a supermarket-led DRS, something which Cheema believes could have disastrous consequences for Scotland’s local retailing community.

MAJOR CONSEQUENCES

“SGF has been warning for some time that we appear to be inexorably moving towards a supermarket-led DRS and the consequences of that could be very signi cant for our members,” said Cheema. “If we have to all intents and purposes a supermarket DRS on August 16 then the convenience retailing sector will forever be playing catch-up and trying to regain customers who have no choice but to visit the major multiples to return their empty drinks containers and claim their deposits back.”

Cheema’s concerns are very real and are centred around the apparent scramble currently taking place to ensure that DRS does indeed go live, in some shape or form, on 16 August. With so many key questions unanswered and so many major hurdles still to overcome, the Scottish Government appears to have reached the same conclusion that many industry spectators came to a long, long time ago: there is zero chance that the DRS as originally proposed will be ready in time for the deadline.

COMPROMISE SOLUTION

e best that it can achieve now is nding a politically palatable way out of what has long been a clearly intractable situation. at view is reinforced with the publication last month of documents from the o cial DRS Gateway Review, made public under a Freedom of Information request. e Scottish Government

“

am

”

has sat on the DRS Gateway Review since 1 June 2022.

e Review appears to accept the widely held belief that a t-for-purpose, comprehensive DRS will not be in place for the August deadline.

Critically, the Review concluded that: “[ e] Review Team nds that a fully functioning and compliant DRS cannot be in operation for the revised August 2023 schedule. e Review Team believes that a ‘so er’ approach to DRS implementation should be pursued but further urgent activity would be required to consider, assess and agree this possibility.”

Cheema commented: “ e Final Report was submitted to the Senior Responsible Owner on 1 June with recommendations for future action and stipulated that within three weeks of the nal report intended actions were to be provided for addressing each recommendation. Why has it taken until December for the Scottish Government to publish this report when we are so close to go-live? at is not good enough. e operational risks are still outstanding and have not been dealt with.”

DANGER AHEAD

e big question is: what does a ‘so er’ approach look like? For Cheema, it only means one thing: “With every month that passes it looks more and more like the DRS will be driven by the supermarkets. Exemptions are now far easier for local retailers to secure which gives the clear indication that the Scottish Government will focus on ensuring that the supermarkets have the DRS in place on 16 August and they will consider that su cient to declare that the implementation of DRS was a success. If that happens, the ultimate cost to the convenience retailing sector hardly bears thinking about. We would be handing massive footfall to the major grocery players on day one and we might never fully recover from that.

“SGF has been and remains fully committed to a t for purpose, world-leading, deposit return scheme. We have spent signi cant time with the Government proposing changes and improvements to the scheme that we are still waiting to see enacted by Parliament. Along with this, the convenience industry – despite signi cant e orts to engage – are still not being given critical answers in relation to binding commitments on store scheme upli s, community points, nancing and crossover period that is impacting our members’ ability to plan

e ectively.”

“Review Team finds that a fully functioning and compliant DRS cannot be in operation for the revised August 2023 schedule.

The Review Team believes that a ‘softer’ approach to DRS implementation should be pursued.”

DEPOSIT RETURN SCHEME MADE EASY

In Scotland we consume over two billion single-use drink containers every year. Many of these end up being le on the streets as litter and quite o en end up in land ll sites or are incinerated. e issue here is twofold, rstly we pollute our beautiful country with nonbiodegradable materials and the second is we waste valuable resources that could be recycled and used over and over again.

e Scottish Government has implemented a Deposit Return Scheme (DRS) which goes live on 16 August 2023, to encourage consumers to return these empty drink containers for recycling. e consumer will be charged a deposit when they purchase a drink and will have that deposit refunded once they return it. Simple but e ective. Other countries using a Deposit Return Scheme achieve recycling rates over 90%.

e easiest way to collect these returned drink containers is to use a reverse vending machine (RVM).

Simply, this machine accepts the container, con rms what it is (check barcode, check dimensions, check weight, etc), compacts the material to enable e cient storage and waste collection and

then authorises the return of the deposit with a voucher or digital payment.

e voucher can then be scanned at the checkout to reduce the customer’s shopping bill or create a cash credit. Finally, the machine reports all the data back to the System Administrator, who then credits the retailer for all the deposits returned to consumers and pays the retailer a handling fee as compensation for the service they are o ering.

For the retailer, the reverse vending machine fully automates this whole process,

without it, everything must be done manually at the counter.

At Envipco, we have spent 40 years designing and manufacturing reverse vending machines and have been at the forefront of developments over the years. We have a full range of RVMs from large ‘bulkfeed’ sized machines down to our market leading Flex RVM, designed speci cally for the convenience sector.

Contact us to help you prepare for the Deposit Return Scheme at: www.envipco.com/contact_us

“For the retailer, the reverse vending machine fully automates this whole process; without it, everything has to be done manually at the counter.”

With Scotland’s Deposit Return Scheme set to go live in August, the easiest way to meet your obligations, minimise in-store effort and provide a great experience for your customers is with a reverse vending machine, says Envipco.

HOW CAN CONVENIENCE RETAILERS PREPARE FOR THE DEPOSIT RETURN SCHEME?

WHAT IS THE DEPOSIT RETURN SCHEME?

A deposit return scheme adds a refundable deposit to single use drinks containers to encourage high quality recycling and reduce litter.

Scotland is introducing its scheme in August 2023 and is set to include so drinks and alcoholic beverages, including PET bottles, cans, and glass bottles ranging from 50ml to 3 litres.

HOW WILL CONVENIENCE RETAILERS BE AFFECTED?

Scotland’s scheme will be a ‘return to retail’ scheme, which means that retailers will collect the bottles and cans back from consumers. As well as doing their bit for the environment, retailers will receive a handling fee for every eligible container that they take back.

HOW CAN RETAILERS COLLECT THE EMPTY BOTTLES AND CANS IN THEIR STORES?

Retailers can either accept bottles and cans back manually ‘over the counter’ or by using a reverse vending machine to automate the process. Retailers who sell high volumes of drinks per week should consider investing in a reverse vending machine from the beginning of the scheme. Retailers who want to give customers a great recycling experience in their store and avoid manual handling for store sta should also explore automating.

SO, WHAT DO WE KNOW ABOUT THE SCHEME?

Q e scheme will go live in Scotland on 16 August 2023.

Q e scheme will be run by a scheme administrator called Circularity Scotland, a not-for-pro t organisation that will be responsible for the day to day running of the scheme.

Q In May 2022, Circularity Scotland announced details of the handling fees. Retailers using a reverse vending machine will receive a handling fee per eligible container of 3.55p for the rst 8,000 items each week, with an extra 1.35p for each additional item. Retailers operating manual returns (over the counter) will receive 2.69p per eligible container.

Q Retailers must accept any eligible container back, not only the products that they sell.

Q e deposit amount will need to be displayed separately from the price of the product on any point of sale.

Q e scheme administrator will collect the containers from stores on a regular basis, with one-o collections if required.

Q Retailers will be reimbursed around seven days a er the bottles and cans are collected by the scheme.

Q Some exemptions may be given, these can be checked on the Zero Waste Scotland website.

HOW CAN RETAILERS PREPARE?

e best way to prepare is to get familiar with the scheme and how it will work. Visit the Circularity Scotland website (circularityscotland.com) for full information and frequently asked questions.

As part of these preparations, a key decision for retailers is whether to use a reverse vending machine or accept containers back manually.

Broadly speaking, retailers who sell over 2,000 beverage containers a week and who expect high returns may consider investing in a reverse vending machine to help with their operation. Retailers who want to give customers a great recycling experience in their store and avoid manual handling for store sta should also explore automating, since it is typically quicker and more e cient to return bottles at a reverse vending machine.

WHAT CAN TOMRA OFFER CONVENIENCE RETAILERS?

Space and costs are key consideration for convenience retailers, so TOMRA has developed a new compact, lower cost, reverse vending machine especially for retailers in Scotland. is new machine is called the TOMRA M1 and is less than 0.65 sq. metres, but still takes all three materials in the scheme. It’s great for smaller busy stores where space is limited, enabling retailers to automate without giving up valuable selling space.

To get in touch with TOMRA, email tcs.uk@tomra.com

With less than one year to go, Mark Brill, UK & Ireland VP Sales and Marketing for TOMRA, looks at what we know about the Deposit Return Scheme, which is set to start in Scotland on 16 August 2023.

Let’s create a great recycling experience.

The deposit return scheme (DRS) is coming to Scotland. Make it easy with TOMRA.

The global leader in reverse vending technology

tomra.com/uk | Get in touch to find out more: tcs.uk@tomra.com

Voting for the SLR Products of the Year Awards will close shortly, but there’s still time for you to make your voice heard as SLR seeks to discover just what was 2022’s best NPD.

The SLR Products of the Year Awards recognises the products that have had a positive impact on stores and sales – and rewards the suppliers who invested in bringing them to market.

From fruity- avoured spirits to avoured chocolate, sugar-free so drinks and restaurant-inspired snacks, the steady ow of innovative new products that was launched in 2022 o ered local retailers loads of ways to revamp their ranges with ashes of in-store theatre, excitement and fun.

Last year also saw a steady stream of new products to help retailers handle sustainability demands and England’s new HFSS regulations, while also helping consumers cope with the cost-of-living crisis.

anks to the power and pull of social media, new product launches also o ered retailers an array of opportunities to engage with their customers online and highlight the freshness and relevance of their in-store o ers.

A quick peek at social media feeds of some of the industry’s leading retailers reveals hundreds of likes and comments from engaged customers who are only too keen to try and

buy. e power of new products is clear to see; innovative launches help to keep local retailers on trend and on track.

And that’s why SLR once again launched its Products of the Year Awards.

Now in their third year, the Awards are designed to celebrate the hero new products that have had such a positive impact on stores and sales and, crucially, to reward the suppliers who invested in bringing them to market.

Winners of the SLR Products of the Year New Awards will be selected by the local retailing community, with all retailers able to vote for their favourites from our shortlist and explain how their chosen products helped to shape their success in 2022.

All winning products will also be entitled to carry the SLR Products of the Year Awards 2022 winner logo on-pack and in their marketing materials – thereby completing a virtuous circle by helping drive further sales in the future in local retailing outlets across the country, because we all know that shoppers love an award-winning product.

Our shortlist of products can be viewed online, so what are you waiting for? Get involved!

Lewis Hamilton Monster Energy Zero Sugar CCEP

Lewis Hamilton has joined forces with Monster Energy again to launch an all new zero sugar energy drink, which is available now in plain and £1.39 PMP singles, as well as multipacks of four. The drink is vegan-friendly, has no calories and a peach nectarine flavour. The can has a new design Hamilton created in collaboration with artist Mad Dog Jones.

Double Cheeseburger/ Cheeseburger

Rollover

Hot food-to-go brand Rollover has extended its burger range with the launch of a Cheeseburger and Double Cheeseburger. Both are available now and use quarterpound (113g) beef patties that are available pre-cooked and frozen. These are served with slices of cheese in Rollover’s artisanal, handfinished buns in fully recyclable, biodegradable packaging that consists of wrapping paper and a cardboard tray.

Dead Man’s Fingers Energy Drink Halewood Artisanal Spirits

Dead Man’s Fingers has extended its portfolio with the addition of a new alcoholic energy drink range, available now. The line-up boasts four fruity flavours: Smooth Mango, Passion Fruit, Blue Raspberry and Tangy Lime. All four caffeinated alcoholic drinks contain taurine and guarana, and are available in a 500ml can format, with a 7% ABV and RSP of £2.99.

Imperial marks 145 years of Golden Virginia with limited-edition retro papers

Featuring a retro design that plays on the brand’s longstanding history, the limited-edition papers are available to buy now within 30g and 50g packs of Golden Virginia Yellow at RSPs of £16.85 and £27.90 respectively, and Golden Virginia Original at RSPs of £18.55 and £30.75.

Tom Gully, Head of Consumer Marketing UK&I at Imperial Tobacco, commented: “As a heritage brand with a huge following of loyal consumers, Golden Virginia offers a high-quality rolling experi-ence. With the addition of these limited edition papers, the range offers retailers a really unique product to surprise Golden Virginia buyers at a peak time of year when there’s typically a seasonal spike in sales.”

The retro papers are available while stocks last.

Gully added: “When they’re gone, they’re gone so we’d recommend retailers stock up now to take full advantage of the additional sales while they can.”

E600

Geek Bar

Disposable

vape manufacturer

Geek Bar has upgraded its E600 range to include the latest mesh coil technology. Geek Bar said its new KA1 mesh coil technology provides extra vapour and a more consistent, mellower flavour. The E600 already shares the new, soft mouthpiece seen in more sophisticated Geek Bar products while being cheaper, with an RSP of £4.99. It is available in 20 flavours and each device offers 600 puffs.

Chocomel Plant-Based FrieslandCampina UK

Chocomel Plant-Based’s cashew nut and pea milk formulation offers the same chocolatey richness as the original premium chocolate and was rated as 93% positive in advance taste tests, beating current market leaders in a blind test. It is available in a 1 litre tetra pack format. With growth of 81%, Chocomel is driving forward well ahead of the premium milk drinks category (51%), with sales of £6.9m.

Mentos Sour Gum

Perfetti Van Melle

Perfetti Van Melle has launched Mentos Sour Gum, which combines a crunchy outer shell with a liquid fruit centre. Compliant with England’s HFSS regulations, it is available now in two flavours – Sour Apple and Strawberry – in display cases of 10 bottles with an RSP of £1.

Each pocket-sized bottle contains 15 pieces of gum. The launch is supported by a social media campaign, with in-store activity planned in 2023.

Imperial is celebrating 145 years of its premium quality Golden Virginia rolling tobacco brand with the launch of a new range of limited-edition papers.

Blu Bar Disposable Vape

Imperial Tobacco

Available now, the blu bar range comprises a collection of disposable and ready-to-use vape products with a compact pocket-size design. Each blu bar device contains 20mg of nicotine in 2ml of liquid providing up to 600 puffs and features an LED indicator that lights up when in use. With an RSP of £5.99 per device, the new range includes six flavours: Kiwi Passionfruit, Mango Ice, Banana Ice, Peach Ice, Watermelon Ice and Strawberry Ice. Each blu bar features bright and vibrant bursts of colour, both on the device and on the pack to create on-shelf standout and help with range navigation in store. Imperial is backing the launch with a special Profit on Return deal of up to 43% at wholesalers, as well as with a new trade microsite, which provides retailers with everything they need to know about the range.

Galaxy Milk Chocolate Digestive Biscuits Mars/Burtons Biscuits

Galaxy Milk Chocolate Digestive Biscuits and Galaxy Orange Digestive Biscuits (both RSP £1.89 for a 300g pack) are available exclusively from Asda until March when a wider roll-out in March will see both available from wholesalers. With chocolate digestives eaten in one in three households, Mars Chocolate Drinks and Treats thinks there is space in the market for a challenger brand to occupy, particularly one that appeals to a broader spectrum of shoppers. Michelle Frost, General Manager for MCD&T, said: “there is a fantastic opportunity for retailers to increase penetration with our Galaxy Milk Chocolate and Galaxy Milk Chocolate Orange Digestive Biscuits.” For all sales enquiries, retailers should contact Burtons Biscuits on 0330 6600 196.

Rice work if you can get it

The first Müller Rice campaign in five years sees the brand team up with footballer Declan Rice on ‘Rice, Rice Baby’ – a reworking of the 90s Vanilla Ice song. The multi-million-pound campaign is a bid by the brand to target new audiences. Radio ads feature the West Ham player belting his own version, and the campaign also includes out-of-home ads and dedicated social media content on LADbible.

Messi gets megged

Pepsi Max has launched ‘Nutmeg Royale,’ the first activity under its new international brand campaign ‘Thirsty For More’. A short film sees Lionel Messi, Paul Pogba and Ronaldinho battle it out in a nutmeg tournament to the tune of Fatboy Slim’s ‘Rockafeller Skank’. Scanning a code hidden in the ad gives viewers the chance of getting their hands on some NPD from the brand.

Seize the New Year

Maximising footfall in 2023 can become easier by taking advantage of calendar occasions old and new, such as the King’s coronation.

BY ELENA DIMAMA

The rst two months of the new year are traditionally key for retailers to keep the momentum of the festive season going with a host of seasonal celebrations.

From Burns Night to Chinese New Year and Valentine’s Day, the opportunities for stores to drive footfall will be once again plenty, despite the challenging economic times.

“With Burns Night in full swing, retailers must be well-prepared for the coming months as consumers continue to enjoy key celebratory periods such as Mothering Sunday, Easter, the King’s coronation, and Wimbledon,” Ben Blake, Head of Marketing – EMEA – Treasury Wine Estates, says.

DRINKS ON THE UP

“Being aware of key seasonal occasions can be bene cial when it comes to stocking spirits and the rst few months of 2023 will bring a variety of occasions perfect for socialising and coming together, such as Burns Night and Chinese New Year,” Johnny Dennys, Head of Brand and Trade Marketing, Mast-Jägermeister UK, explains.

Retailers can tap into this opportunity by stocking recognisable brands that o er value and quality, he adds.

ey certainly can – according to Lumina Intelligence, 18% of shoppers purchase alcohol for Easter, just slightly below the 19% who buy owers or boxed chocolates.

“Events such as [Easter] present a huge opportunity for retailers to prepare well in advance to ensure their range is right. ere is

an opportunity to use promotions to maximise alcohol sales for these periods, with 27% of shoppers likely to stock up on alcohol on promotion,” Blake adds.

However, it goes without saying that if you want to o er a discount on alcohol, that your licence prohibits irresponsible drinking promotions, and you must still follow minimum unit pricing.

And, according to Kevin Fawell, O -Trade Sales Director at Molson Coors Beverage Company, during previous times of economic uncertainty, “many people held on to those smaller indulgences saving money by cutting out bigger expenditures”.

“Choosing a premium drink could be one of those little treats that people want to keep, which is why we expect premium beer and cider lines to remain popular choices,” he tells SLR.

“ is includes World Beers, which are increasing sales ahead of the core category in the o -trade in Great Britain. For example, Madrí Excepcional, has already delivered £32m value sales in retail, with its crisp, refreshing taste and distinctive branding proving a real hit. Continental-style pilsners such as Staropramen are becoming increasingly popular too, providing a more crisp and hoppy avour than the styles we traditionally drink in the UK.”

Treasury Wines Estates is o ering up its Wolf Blass range for shoppers looking for a “more premium night in,” as the brand invests in an integrated marketing campaign with TV advertising, out-of-home and digital activities all running.

Meanwhile, retailers can also bene t from the shot occasion, described as a “key trend” to look out for by Dennys, as shoppers celebrate together. “For such occasions, consumers are looking for brands they know and trust that can deliver on quality and taste,” he says.

“Our latest innovation, Jägermeister Cold Brew Co ee (ABV 33%), is perfect for alternative shot occasions that are becoming more popular, such as alongside food and earlier in the evening. It also taps into the cold brew co ee trend and with it, increases sales. Co ee remains a popular avour amongst consumers, with more than 24 million households in the UK buying the beverage.”

REMEMBER THE CHOCOLATE

“Compared to Christmas, shoppers are usually more likely to make a dedicated trip for chocolate at Easter, showcasing the size of the opportunity for confectionery,” Jason Sutherland, UK & Ireland Sales Director, Ferrero UK, explains.

“ e ONS reported a jump in retail sales in April 2022, supported by food and drink

spending in the lead-up to the Easter weekend. is showed that consumers still wanted to spend for a special occasion, especially when it came to treating.”

Confectionery is at its best during Easter, with boxed chocolate, for example, playing a key role in driving footfall. Ferrero will be honouring the occasion with the Classic Boxed SKU within total boxed chocolate, along with the Kinder Egg Hunt 150g.

What’s more, the brand is launching two boxed egg packs for 2023, a Ferrero Rocher Egg and a Ferrero Collection (Milk) Egg, which both include a large 175g egg and six Pralines. On top of this, Ferrero is introducing a new 100g Chocolate Bunny for Easter.

“Kinder Surprise is a big focus for us at this time of year and accounts for 33% of Kinder unit sales during Easter,” Sutherland adds. “Looking ahead, we’re con dent 2023 will be even bigger for the Kinder brand, especially as we have a licence agreement with Disney’s Avatar to provide gurines in our 100g Surprise Easter eggs.”

According to Sutherland, Easter eggs, chocolate gurines and treats can “really play” into independents’ hands. “While convenience stores may not always be able to compete on price, by providing a choice of big-name products, such as the Kinder Surprise or orntons’ Classic egg collections, and items at various price points, they can encourage impulse purchase from their existing customers,” he explains.

Cadbury is also gearing up for Easter 2023, bringing back its Cadbury Creme Egg’s ‘How Do You Not Eat Yours? campaign. Shoppers will be warned once again to keep an eye out for a halfmilk chocolate, half-white chocolate Cadbury Creme Egg. Retailers who sell the winning eggs are set to bene t from the promotion, with more than 20 Amazon vouchers up for grabs –including one worth £1,000.

Meanwhile, Mondelez is unveiling its rst product innovation for Cadbury Creme Eggs –adding white chocolate to the range. Cadbury Mini Eggs and Cadbury Dairy Milk Orange Filled bags will complete the line-up.

It’s not just readymade confectionery items that perform well on the run-up to Easter; shoppers like to try their hand at creating something of their own, which presents a great opportunity for the Home Baking category.

“Items that performed particularly well in 2022 were placements, whether it be wafer, chocolate, or sugar. Also, everyday items such

as baking chocolate, avoured buttercream, marzipan, cocoa powder and baking cases,” Jen Johnson, Head of Marketing – Cake, Dr. Oetker Baking, tells SLR.

“Whole cake mixes also did particularly well showing that more time-poor customers may be looking for simple but e ective ways to bake quickly and e ciently.”

SEASON OF LOVE

Valentine’s Day and Mother’s Day are great opportunities for retailers to ramp up their gi o erings in core categories such as alcohol or confectionery.

“Recently, sparkling wine has performed particularly well across the big occasions, driving sales from both gi ing and celebratorily moments,” Blake explains. “ is trend has been recognised in strong sales performance across Valentine’s Day and Mother’s Day, where according to Kantar, sales of private-label sparkling brands grew by 22% during the four weeks to 26 December.”

On the back of this trend, Treasury Wine Estates is launching a sparkling variant to its 19 Crimes portfolio for the rst time.

It’s not just the alcohol performing well on celebratory moments – cake and confectionery can serve retailers perfectly on those occasions too.

“At Dr. Oetker, the areas known to perform well over Valentine’s Day and Mother’s Day include sweet mixes, chocolate placements, inclusions, marshmallows and buttercream; all

FERRERO’S EASTER

TIMELINE TIPS

Phase 1 – The ‘Early Season’ (approx. seven or eight weeks before Easter): This is the ideal time for retailers to start driving awareness with Mini Eggs and Self Treat products with people looking for little treats for during the day, such as the Ferrero Collection Crispy Eggs in Hazelnut/Cocoa flavours.

Phase 2 - ‘Mid-season’ (four weeks before Easter): This is when we really begin to think about Easter and will start to purchase gifts for the big day. Retailers should ensure smaller eggs and models are now displayed. Smaller eggs and figures like the Thorntons Bunny 90g, Kinder Moulded Bunny 75g and Kinder Surprise 100g will engage shoppers from the start of the season through to the main event, while bigger more extravagant offerings will catch the eye with their fun designs. Some may even consume these products before Easter, offering another opportunity for re-purchase before the weekend itself.

Phase 3 – ‘The Main Event’: In the week running up to Easter, the demand is very much for Easter Eggs and confectionery of all sizes, as these are the ones to be given as gifts and to share. Retailers should ensure that their range of eggs appeals to the whole family as well as being at different price points.

the ingredients to make a delicious homemade treat for a loved one,” Johnson says.

“As for our top performing products, the Heart Marshmallows and Wafer Daisies do particularly well, as well as the usual chocolate, colours and sprinkles.”

BEAT THE COST-OF-LIVING WOES

e economic challenges facing shoppers are at the centre of many brands’ agendas this year, with many brands citing value for money as paramount to promotions in 2023.

“We are recognising that more valueconscious consumers are switching to products that o er them the best overall value for their money. is does not always necessarily mean the cheapest option, but the best-perceived value,” Blake says.

“ is is driving growth in the £8-£10 price bracket. As consumers continue hosting key celebrations from home, retailers should respond to this trend by ensuring they have good stock of more premium alcohol options, particularly within the wine category. ere has been growth in wines £8+ in the market, and at Treasury Wine Estates we are seeing increased sales in wines £7+.”

According to Kantar, 64.6% of o -trade alcohol occasions were consumed alongside food in the last year, with 77.1% of wine otrade occasions including food this year.

e cost-of-living crisis is also likely to a ect the Home Baking category, both positively and negatively but overall, Dr. Oetker anticipates that consumers will keep baking and potentially more consumers will come into the category as a means of ‘entertainment’ or pastime.

Johnson explains: “If we consider the negatives, then we know price-conscious Brits will have less disposable income this Easter and therefore may be forced to cut out or reduce spend on categories deemed as ‘non-essential’. In some respects, this includes home baking because many consumers enjoy it as a hobby or pastime rather than a necessity.

“By contrast, customers may be more likely to celebrate special occasions at home, therefore making them more inclined to choose to bake their own creations from scratch as opposed to buying extravagant and expensive shop-bought cakes,” she concludes.

Dr. Oetker predicts an upli in sales for home-baking products over Easter, as it can be a “great activity to keep children entertained, and therefore in a cost-of-living crisis it becomes a more a ordable alternative to other options over holidays and weekends”.

GO FOR MULTI

“Multipack formats have been a key focus over the last year – and with more social occasions on the horizon over the long Easter weekend and stretching into the May bank holidays, we expect to see this trend continue,” Fawell, from Molson Coors, explains.

“To tap into this growing demand, we launched a Doom Bar ‘fridge pack’ containing 10x440ml cans last year, and a 6x330ml can multipack for our Staropramen range to help retailers drive sales. Both packs are encased in a recyclable cardboard sleeve, making them entirely plastic-free.”

And, according to Jägermeister, price-marked packs are a “must-stock” for the big night in, “as they help boost impulse purchases due to clear price labels, but also drive pro t,” Dennys says.

“Consumers feel reassured that they are not being overcharged for premium brands with price-marked packs, providing an incentive for consumers to make a purchase.”

“Retailers should start displaying Easter seasonal products such as decorations, cases and mixes around two weeks before Easter to catch the early planners, and to remind customers of the upcoming event. Grouping these products together on the aisle end or as a bundle deal online along with other categories – such as cornflakes to make Easter nests – will encourage shoppers to buy into the category.”

HAVE IT AND EAT IT

The snacking category is showing no sign of slowing down with brands adapting quickly to potential HFSS restrictions in Scotland.

WHOLESALE

Q Impulse, Indulge, and ‘On the Go’ Missions will be the key sales drivers for cakes and biscuits.

Q With the cost-of-living crisis, instore promotions will increase sales and attract customers who are reducing their spend on snacks.

Q Retailers should use POS materials to drive sales and show visibility of product displays in the store.

Q Retailers should also be stocking up on the best-loved ranges that customers are loyal to and base this on their previous sales revenue and basket spend to uplift sales.

The biscuits and cakes segment continues to be key within the snacking category, emboldened by the festive season and the rise of homeworking.

Biscuits is the second largest snacking category in the UK, according to Kantar, nearly worth £3.3bn and with a sales growth at 2.5% in independent and symbol stores, according to Nielsen.

Regulations for food and drink high in fat, sugar or salt (HFSS) have come into force in England, but the Scottish government has also recently closed a consultation on its proposals to restrict promotions on HFSS.

DEFYING THE CRISIS

“Biscuits and cakes remain one of the few categories where shoppers are willing to spend money on treats, especially during tougher economic times,” Colin Taylor, Trade Marketing Director at Fox’s Burton’s Companies, says.

Fox’s Burton’s Companies’ sales growth of 4.7% over the last year has been driven by a strong core line performance including Maryland Cookies, which grew by 13.8% year on year (supported by new avours and Minis), Jammie Dodgers up 13.3% (supported by minis and Choccie Dodgers) and Fox’s Fabulous Cookies (with the help of fabulous promotions and a new Millionaire’s cookie), according to Taylor.

To help bring innovation into the segment, Fox’s is launching Party Ring Choc Minis, containing ve bags of cocoa biscuits with a choc twist on the icing.

“ ere were 238 million out-of-home sweet biscuit occasions last year. e ‘children’s biscuits’ segment of the market accounts for

one-in- ve occasions where biscuits are enjoyed out of home, especially for on-the-go snacking and treating. Brits spent £120m on ‘children’s biscuits’ last year, growing the segment’s value by 17%. Impulse outlets grew even faster at +29% year on year,” he adds.

Indeed, Kenton Burchell, Trading Director at Bestway Wholesale, also thinks that impulse will be one of the key sales drivers for cakes and biscuits.

“With the cost-of-living crisis, in-store promotions will increase sales and attract customers who are reducing their spend on snacks,” he explains. “With the cost-of-living crisis, consumers will be on a budget and will be purchasing less on quantity.” He adds that retailers should utilise the space and location to stock products and make it easier for customers to navigate.

“Retailers will need to review their stock inventory on the range of products that are the best sellers for cakes and biscuits,” he says.

“Promotions and cross-merchandising of categories, e.g. cakes and biscuits [should be] next to hot drinks, and teas and co ee categories,” he adds.

GUIDED BY IMPULSE

“Increasing levels of impulsive on-the-go purchases have resulted in double digit growth for some of our healthier brands like belVita, with sales increasing as we get back to ‘new normal’ consumption patterns,” Susan Nash, Trade Communications Manager at Mondelez International, says.

Impulse and sharing seem to be big drivers for the category, with the brand recently launching a new Cadbury FIngers campaign focused on the

importance of sharing. ’Sign with Fingers Big and Small’ encourages people across the nation to learn some British Sign Language (BSL) to help people come together. “Cadbury Fingers identi ed that many in the deaf community report feelings of isolation and exclusion in the kinds of shared moments that Fingers are made for,” Nash explains.

NO GUILT

Research by NielsenIQ has shown that 71% of consumers say that healthier and more nutritious foods are “extremely important to them”.

“As a business, Mondelez International is committed to Mindful Snacking, an approach to eating that places emphasis on intention and attention,” Nash says.

“Consumers can snack mindfully by slowing down, giving each bite their full attention and taking the time to savour their snack thoroughly. Additionally, we’re proudly part of the BeTreatwise initiative, which aims to help consumers have a balanced approach to treats and snacking.”

Also taking notice of the consumer shi to healthier snacking is General Mills.

“We know many people have a hard time satisfying a broad range of sweet cravings without feeling guilt for indulging,” JP Del Carmen, the company’s Head of Snacks, notes.

“Snackers are also looking for options that o er the taste experience of a traditionally more indulgent product. With this in mind, we took avour inspiration from one of the more treat-led brands in the General Mills portfolio – Häagen-Dazs – for Fibre One 90-calorie Strawberry Cheesecake bars,” he adds.

KEY SALES DRIVERS FROM KENTON BURCHELL, TRADING DIRECTOR AT BESTWAY

HEALTHY WAVE

Health consciousness is more popular than ever among shoppers and the big brands are responding to help you meet that demand.

BY ELENA DIMAMA

January has traditionally been the month when New Year’s resolutions become reality and improving their health takes a focal point in consumers’ minds, a er they’ve pushed the boat out a bit too far over an indulgent Christmas period.

According to a recent DSM report, consumers are more health-aware than ever before and are on the lookout for products that support their wellbeing, along with healthier alternatives to traditional favourites like sugary zzy drinks and confectionery.

ZERO-SUGAR CHOICES

Stocking up on zero- or low-sugar variants is paramount to any retailer wishing to attract the healthconscious shopper.

“ ere’s no doubt that consumers have become even more health aware since the start of the pandemic and unsurprisingly this has translated into being more heath conscious with their food choices,” Andrew Bradshaw, UK Sales Director at Dole Sunshine Company, explains.

A recent survey by StreetBees of nearly 50,000 consumers showed that the number one attribute sought when deciding on what to eat and drink was no-added or low-sugar content.

Similarly, Red Bull has found that consumers have increasingly been picking up sugar-free and zero formats. Sugar-free variants have been growing penetration by 48.8%, according to Kantar data, and, in independent markets, low- or no-sugar lines have

TIPS TO MAXIMISE SALES FROM HIGHLAND SPRING:

1 Position fast sellers on the bottom shelf in the chiller.

2. Keep bottled water to the left/right depending on traffic flow.

3. Give at least two facings to maximise visibility for shoppers.

4. Allow for sparkling plus a choice of flavoured canned products.

5. Restock after the breakfast rush and lunch time.

6. Have top selling lines at pay points to encourage impulse purchases.

7. I nclude a small range of large bottles and multipacks in the ambient fixture where space allows.

seen faster growth than full sugar, with 21% growth for the former, compared to 16.9% for full-sugar ranges, according to Nielsen Scantrack.

“Expanding Red Bull’s o ering to include a sugarfree price-marked multipack not only bolsters the brand’s current multipack portfolio but also presents an important opportunity to futureproof the range,” Red Bull says.

FLAVOURS MATTER

Just because something is healthy, it no longer means it probably doesn’t taste that great. Brands have put a great deal of e ort to make sure that their healthy variants deliver the same avour quality as their fullsugar counterparts.

“At Dole, we’ve recently announced two new additions to our Fruit in Juice range. e delicious new avours of Mango in juice and Pear in juice have arrived to complement the existing range of Tropical Fruit, Peach, Pineapple, Mandarins and Mixed Fruits in juice cups,” Bradshaw says.

In the cereal category, Weetabix has recently launched a limited-edition Weetos Orange Chocolatey Hoops, which has ranked top in product concept testing conducted by Weetabix in 2021.

“Backed by in-store promotions and online marketing campaigns, Weetos Orange Chocolatey Hoops is HFSS compliant with no red tra c lights, while it also boasts strong nutritional scores, as it is high in bre,” Darryl Burgess, Head of Sales for Weetabix, explains.

Highland Spring is also o ering di erent avours for its sparkling cans variety. “Highland Spring’s sparkling cans are perfect for those looking for a healthier zzy drink option to enjoy, whilst keeping hydrated,” Jennie Inch, Brand Manager, Highland Spring Group, says. “At under 35 calories per can, and available in three delicious avours, they are great for those looking to stick to healthier products whilst satisfying a zzy drink craving.”

COST OF LIVING

“Consumers are changing their shopping behaviours and becoming increasingly conscious of product value for money, incorporating quality, waste, convenience and choice, which is where ambient products can increasingly have a role to play,” Bradshaw says. “Shoppers understand that ambient goods not only o er good value and have longer shelf lives but in the case of our Dole packaged fruit range, can also be one of your ve-a-day and a healthy part of their overall diet.

“A recent survey on attitudes to healthy eating revealed that 32% of people admit that money concerns cause them to eat less healthily,” he notes.

Highland Spring is also expecting a change in shopping attitudes. “ e cost-of-living crisis is understandably on everyone’s minds and is a real worry for both consumers and retailers,” Inch explains.

“With it expected to last a while, consumer purchasing habits will undoubtedly change. Whether consumers aim to shop less, or make tactful purchases, it will impact the retail sector. For example, it might be that bulk buying or opting for larger formats is a more economical way of purchasing for some families, and others might switch to cheaper alternatives of their favourite products.”

EAT YOUR GREENS

According to a recent survey by IGD, more than a third of shoppers place an importance on eating more fruit and vegetables to lead a healthier lifestyle, with a further one in ve looking to eat more fresh produce, in particular.

When it comes to convenience store shoppers, research by Lumina highlights brand and health are the most important factors when conducting a planned top-up mission (63% of shoppers looked for brands/44% looked for healthier products).

“ e size of the prize for convenience retailers shouldn’t be underestimated,” Martin Purdy Commercial and Marketing Director at Florette UK, says. “ e leafy prepared salads market in convenience is already worth over £77 million and shoppers are visiting more frequently to purchase leafy salads (+13.5%) showing a growing appetite for the category in the channel.”

is already worth over £77 million and shoppers are

DUG-PAWSIT RETURN SCHEME

Under The Counter is, by his own admission, “not a dog man”. Unless, of course, said dog sports a numbered jacket and chases a mechanical hare.

However, the Auld Boy knows a good thing when he sees it and his myopic peepers fair lit up when he read about Scruff the Border Collie.

Thirteen-year-old Scruff (who, at 91 in dog years, gives UTC an arthritic run for his money) has become a social media sensation for his dogged determination in clearing Nuneaton of discarded plastic bottles, retrieving well over 1,000 last year.

Now, with the Deposit Return Scheme finally set to cough and splutter into life in August, UTC has spied an opportunity to make himself a tidy sum (pun very much intended) by deploying a dog to hoover up every plastic bottle it comes across.

The Auld Boy reckons that – if his canine chum can match Scruff – he’s onto an easy 200 quid in thrown-away deposits a year.

Nobody in SLR Towers has the heart to tell him that a collie dug will easily scoff at least £200-worth of Pedigree Chum annually. And there’s also the issue of the other deposits – the hot and steaming ones UTC would have to pick up in a wee plastic bag.

WHAT’S A CURLY WOO WAH?

Under The Counter prides himself on keeping abreast of the latest advances in technology. Not the best at mental arithmetic, over the years he’s variously relied on slide rules, adding machines, pocket calculators and mobile phones to work out how much his 50p seven-horse accumulators will pay out.

Now the proud owner of a smart speaker, he often rips Mrs UTC’s knitting by shouting – right in the middle of Coronation St – “Alexa, what’s 50 times 33 times seven divided by two times 12…”

It came as no surprise to the Auld Boy then, given his overblown sense of self-importance, when Amazon reached out asking him to “answer the questions that stump Alexa”.

Now this is right up UTC’s street, pub quiz bore that he is. Or so he thought, for it turns out a lot of drunks, or children, or drunk children, ask Alexa some weird shizzle.

Questions that baffled the Auld Boy included ‘How do you boil eggs without?’, ‘How much protein is in a cat?’, ‘What is the definition of a p.p.?’ and ‘What letter start with ‘t’?’

The only one he came close to answering was ‘Where is grandpa go?’

“Doon the pub,” grumbled UTC, slamming the door behind him.

MOOSE LOOSE ABOOT HOOSE!

If you’re old enough, as Under The Counter most certainly is, you’ll remember the 1958 smash hit ‘Hoots Mon’ by popular beat combo Lord Rockingham’s XI. You know, the instrumental with the line “There’s a moose loose aboot this hoose!” that Maynards ripped off for a Wine Gums advert back in the day.

Well, fast forward to now and – hoots mon! – if someone didn’t go and phone the fire brigade when they discovered a moose loose inside their hoose.

The Auld Boy scoffed at this notion, fed up to his back falsers with tales of people dialling 999 because they’d been sold a cold kebab and so on, until he discovered the caller was in Alaska and the moose was a 36-stone walking lump of venison that had stoated through a skylight into said someone’s basement.

One tranquiliser dart and a large tarpaulin later, the unfortunate beast was back out in the subzero temperatures where it belonged, groggily posing for pictures with its smiling rescuers – and the grim-faced gunman who’d shot it in the bahookey.

This was a more favourable outcome than UTC’s far-fetched proposal, which involved sourcing a gigantic cat and starving it for a fortnight…

Over 100 years ago Northern Ireland introduced whiskey to the world and now our distillers and craft brewers are in the midst of a vibrant renaissance. Over the last decade, our drinks sector has become one of the region’s most dynamic, innovative and export-driven industries. Our drinks producers are winning awards across the globe, driving buoyant sales at home and abroad and our buzzing visitor centres and tap rooms are enticing tourists into cities, towns and villages across the four corners of our beautiful country. Northern Ireland is now home to over 20 distilleries and breweries producing single malt, pot still and blended Irish whiskeys, gin, poitin, vodka, rum, craft beer, cider and hard seltzers. From Old Bushmills Distillery, the world’s oldest licensed distillery, to innovative newcomers including Hinch, Echlinville, McConnells, Rademon, Killowen, Copeland and Boatyard you can be sure of Pure, Natural, Quality drinks and a warm welcome. Slainte!

For more information on Northern Ireland’s wide range of quality and innovative food and drink products, contact Michelle Charrington, T: 07817 173 514 E: michelle.charrington@investni.com

Northern Ireland. Altogether more.

Northern Ireland. Bringing our world-class food and drink to your table.

Image courtesy of the Irish Whiskey Association