SLR February 2023 Edition

NEWS

06 Store Sales Buyers continue to outstrip the number of stores available, says a new Christie & Co report.

07 Vaping Environmental concerns prompt the Scottish Government to consider banning single-use vapes.

08 Access To Cash New data shows that there are still over five million people reliant on cash machines in the UK.

10 Rural Shops ACS urges MPs to recognise the crucial role that rural shops play in their constituencies

12 News Extra Energy The new energy scheme for businesses draws flak from trade associations.

18 Product News Ferrero expands its Easter range and Oreo unveils a new Xbox promotion.

20 Off-Trade News WKD announces a Love Island double date while Brewdog backs a mental health campaign.

INSIDE BUSINESS

22 Research Digest Cost-conscious consumers present an opportunity for retailers, according to new Barclaycard data

24 Product of the Year Awards The votes have been counted and it’s time to reveal the hottest NPD of 2022.

26 Deposit Return Scheme Handling Fees increase slightly as Abdul Majid’s legal challenge goes ahead.

28 GroceryAid Scotland The industry charity’s popular Checkout music festival will return in August.

30 Hotlines The latest new products and media campaigns.

46 Under The Counter The Auld Boy discovers he has something in common with the humble Rich Tea biscuit.

FEATURES

32 Tobacco As cost pressures increase, smokers are seeking further value for money in the tobacco category.

34 Soft Drinks The soft drink category continues to provide growth for retailers.

40 Price-marked Packs PMPs could be a key growth driver this year as inflation bites and consumer spending stalls.

44 Beer & Cider Beer and cider continue to act as a cornerstone for the convenience market.

Consolidation The once clean line between the grocery and convenience is blurred further as Bestway takes a £200m share of Sainsbury’s.

New Year financial hangover for consumers

Consumer confidence fell by three points in January to -45, according to data from market research firm GfK. The company’s Consumer Confidence Index reveals four measures of confidence were down in January, while one measure was up, compared to the previous announcement. Joe Staton, Client Strategy Director at GfK, said: “The forecast for consumer confidence this year is not looking good.”

Aldi to strengthen Scottish presence with £35m spend

Aldi is set to invest £35m in Scotland in 2023, including £10m to open new stores in Cumbernauld and Coatbridge. The supermarket has also committed an additional £5m to upgrade its existing stores under its ‘Project Fresh’ initiative and will invest £20m to prepare for the roll-out of the Deposit Return Scheme, which will launch in August 2023.

55 North receives GroceryAid Gold Award

SLR Publisher 55 North has been presented with a GroceryAid Gold Award in recognition of its support and fundraising efforts for the industry charity throughout 2022. 55 North joins the ranks of companies who gave the charity the highest levels of support over 2022, participating in eight activities across all three of its ‘critical pillars’ including awareness, fundraising, and volunteering.

TWC launches convenience market report

Data and digital consultancy

TWC Group is launching a convenience market report covering independent retail and wholesaler-supplied symbol stores. The ‘SmartView Convenience’ report comprises around 6,500 stores, with a combined turnover of £5.6bn. The service will let retailers better understand sector and category performance and trends.

Convenience retail ‘best placed’ to weather headwinds in 2023

Convenience store buyers did not appear to be deterred by any shortterm decline in consumer spending and demand for stores remained strong throughout 2022, a new report from Christie & Co reveals.

e ‘Business Outlook 2023

Finding Clarity’ report reveals Christie & Co’s retail team sold 41% more convenience stores than it did pre-Covid and subsequently recorded a 1.5% rise in its retail price index for 2022.

Key market insights included in the report reveal buyers continued to outstrip the number of stores available, which o en resulted in competitive bidding and an average of 7.5 o ers for each business. is gure has been steadily increasing over the past few years.

e report also notes that while some of the larger corporates have

scaled back their new development plans, they continue to churn their portfolios which provides a fantastic opportunity to the wide pool of independent buyers seeking sites, with pro tability and growth potential becoming key considerations in light of increasing operational costs.

e report also outlines Christie & Co’s market predictions which are:

Q e threshold for a viable corporate business has increased again, leading to more and better-quality corporate

TRENDS

Scottish Government urged to match UK business rates support

divestments. is presents an acquisition opportunity for independents.

Q All sellers will need to be realistic about pricing, to re ect the performance of their business and a new cost base.

Q Price expectations will be a key focus for 2023.

Steve Rodell, Managing Director of Retail at Christie & Co, said: “2022 turned out to be a very busy year for our team, with activity levels surpassing modest expectations which were set during the Covid years.

“We are very encouraged by the healthy number of deals we are taking into this year and feel con dent that the sector will remain resilient despite the challenging economic climate.”

Pinkie Farm sells almost 1,000 bottles of Prime in half an hour

Pinkie Farm, in Musselburgh, sold almost 1,000 bottles of the popular energy drink Prime in about 35 minutes. The drink, which was created by YouTubers Logan Paul and KSI, comes in five flavours. It has been selling out quickly in supermarkets across the UK and demand remains high.

The retailer restricted purchases to one bottle of each flavour per customer and stock was positioned behind the tills.

Industry bodies across the retail sector in Scotland have written to Deputy First Minister John Swinney, urging the Scottish Government to match the Chancellor’s commitment of 75% rates relief for retail businesses in 2023/24.

Representatives of the Scottish Grocers’ Federation (SGF), the Scottish Retail Consortium, the British Independent Retailers Association, and the Booksellers Association signed the joint letter, highlighting the signi cant challenges facing the sector.

SGF Chief Executive Pete Cheema said: “Many retailers are facing an extremely challenging trading environment, and some are struggling to keep the lights on. So there’s no time to lose, the Scottish Government needs to act now.”

Dan Brown, Managing Director of Pinkie Farm, said: “It was crazy. We had 80 crates of 12 drinks sell out in about 35 minutes, there was a queue right down the street for it.”

The store has kept back some bottles so it can run an online competition.

BUSINESS RATES Industry representatives highlight the challenges facing the sector

STORE SALES Buyers continue to outstrip the number of stores available

Disposable vapes face ban in Scotland

Single-use disposable vapes could be banned in Scotland as part of new plans to tackle waste and other hazards associated with the devices, which are now used by more than 15% of vapers.

Zero Waste Scotland is to lead an urgent Evidence Review of the environmental impacts and management of single-use vapes following “emerging concerns around the negative consequences of the disposable devices”.

e review, which will consider international experience and action, will inform potential policy responses, which could include a ban of the products, a government minister said.

Disposable smoking devices have been linked to issues including litter, plastic waste and re risk.

Other approaches could include increasing access to responsible disposal options, improved product design or public communications campaigns.

Circular Economy Minister Lorna Slater said: “Not only are single-use vapes bad for public health, they are also bad for the environment. From litter on our streets, to the risk of res in waste facilities, there are issues which need to be addressed urgently.

“We will consider the evidence and expert advice and come forward with policy options, which could include a potential ban on single-use vapes.

“In the meantime, we would urge everyone who uses these products to make sure they are disposed of properly.”

DEPOSIT RETURN SCHEME

Judicial review proceedings against Circularity Scotland to proceed

The judicial review petition raised by convenience retailer Abdul Majid against Circularity Scotland Limited (CSL), which was appointed by the Scottish Government in 2021 to administer Scotland’s Deposit Return Scheme (DRS), will now proceed in the Court of Session.

Abdul is challenging the legality of the retailer handling fees which CSL seeks to impose on retailers. He is concerned that the retailer handling fee levels will not cover his costs following the introduction of the DRS and will be detrimental to his business both in the short and long term thereby threatening the viability of his store, which provides key services and groceries to his local community.

The action has been welcomed by SGF, which has also been trying to get Circularity Scotland to review the Retailer Handling Fee.

SGF boss Pete Cheema, said: “The Court has granted permission for the judicial review petition brought by Abdul Majid & Son Limited to proceed following a Court hearing on 15 December 2022.

“SGF has been and remains fully committed to a fit-for-purpose deposit return scheme but for that to happen recognition must be given and action taken to address the concerns around retailer handling fee levels which has been raised in Mr Majid’s petition.”

PREVENTING UNDERAGE SALES

Make sure all staff members are fully trained. Follow these top tips:

TAKE YOUR TIME

Distractions can prevent proper checks from taking place

MAKE EYE CONTACT with customers to assess their age

CHECK

IF IN DOUBT, ASK FOR ID and check that it’s an acceptable form of identification

REMEMBER: Mystery shopper visits are carried out in support of preventing underage sales. If your store doesn’t correctly ask for ID on 3 separate occasions, you could lose your terminal.

Rules & Procedures apply. Players must be 18+.

Issa brothers mull Asda and EG Group merger

The Issa brothers are reportedly considering merging Asda and EG Group in a deal that would create a retail giant worth more than £10bn. The combination would create a group with 581 supermarkets, 700 petrol forecourts, and more than 100 c-stores in a bid to refinance current debt. The news has prompted fresh calls from GMB to expand the Competition and Markets Authority’s powers.

Food sales soar in Scotland

Scottish food sales increased by 11.5% year-on-year in December, according to the latest SRCKPMG Scottish Retail Sales Monitor. The data shows that December’s performance was below the three-month average growth of 11.6% and above the 12-month average growth of 5.2%. In addition, the threemonth average was above the UK level of 7.9%. Total sales in Scotland increased by 11.3% year-on-year in December.

Waitrose to bin all disposable vapes

Waitrose has announced a “complete withdrawal” from the disposable vapes market. The retailer, which currently operates seven stores in and around Glasgow and Edinburgh, had already decided not to stock a number of disposable vaping products, but has now opted to de-list all single-use vapes. The move, Waitrose said, came amid “growing environmental concerns”.

SWA Achievers Awards set to be biggest

The Scottish Wholesale Association is advising those yet to book their place at the SWA Achievers Awards to do so without delay as this year’s event is attracting a recording number of bookings. This year’s event will be held at Edinburgh’s O2 Academy on 23 February. Places can be booked via the SWA website or via awards@ scottishwholesale.co.uk.

Consumers withdrawing more cash from ATMs

UK customers withdrew £83bn from cash machines compared to £79bn in 2021, according to new data from the UK’s cash access and ATM network Link.

e data shows there was also a 5% increase in the total number of ATM transactions last year, rising from just over 1 billion to 1.024 billion.

is means the average withdrawal per person over 16 in the UK was £1,564 last year, compared to £1,462 in 2021.

However, ATM use is still considerably down and unlikely to return to pre-pandemic levels. In 2019, £115bn was withdrawn from cash machines.

Northern Ireland remains the most cash-heavy of the nations with Northern Irish banking customers withdrawing an average £2,266 in 2022 compared to the South-West, where the average customer withdrew £1,069.

ATM withdrawals represent 90% of all cash withdrawals in the UK ahead of counter transactions at bank branches and post o ces.

e number of ATMs decreased from 52,547 to 51,253. ere was a fall in the number of charging ATMs, whereas the number of freeto-use machines increased slightly.

Graham Mott, Director of Strategy at Link, said: “ ese numbers aren’t surprising. It’s easy to forget that there was quite a signi cant lockdown at the beginning of 2021 and therefore 2022 was the rst year we’ve had since 2019 where there were no interruptions. What we know is that our relationship with cash

Appetite for forecourts remains despite EV deadline

e looming ‘Road to Zero’ and 2030 deadline is having little e ect on buyer appetite for petrol stations, according to business property adviser Christie & Co.

e company’s ‘Business Outlook 2023 Finding Clarity’ report reveals it received an average of ve o ers per transaction, re ecting the strong ongoing demand, causing a 1.5% increase in Christie & Co’s retail price index for 2022.

e growth of other income streams such as ‘fast-moving convenience goods’ was also identi ed in the report as a key trend shaping the market, with 88% of the UK’s lling stations now featuring a retail o ering, 31% of which are a full convenience store.

e report also outlines Christie’s predictions, for 2023:

Q e threshold for a viable corporate business has increased again, leading to more and better-quality corporate divestments, which presents an acquisition opportunity for independents.

Q All sellers will need to be realistic about pricing, to re ect the performance of their business and a new cost base.

Q Price expectations will be a key focus for 2023.

and ATMs has changed. While many people are now happy to use contactless or digital payments, our research shows there are very few people that are completely cashless. We also know that people are visiting cash machines less o en, but on average take out more cash.

“It’s extremely good news that the government is introducing legislation to help protect free access to cash. ere are still over ve million people who rely on access to cash and face-to-face banking services.”

FUNDING PayPoint extends Funding Circle partnership

PayPoint has extended its partnership with Funding Circle which provides its network of 28,000 UK retailer partners access to funding.

The extension of the partnership will allow retailers on its loyalty scheme to apply for a Funding Circle loan.

The companies claim applications take no longer than 10 minutes to complete, with no more than a 24-hour wait for a decision to be made.

Mark Latham, Banking Services Director at PayPoint, said: “When businesses want to invest in adapting to market conditions, they should be able to do so swiftly and with confidence. This was the key reason for expanding PayPoint Group’s partnership with Funding Circle.”

FORECOURTS Fast-moving convenience goods is a key trend shaping the market.

One Stop doubles home delivery range

One Stop is doubling its home delivery range with more than 2,500 products now available online. The increased range will initially be rolled out to 600 company-owned stores that offer home delivery. One Stop has also recently installed self-service checkouts in 58 of its company-owned stores, with another 80 shops planned for early 2023, including some franchise stores.

Shut that door

The Campaign to Stop High Street Heat Loss has launched a new petition that urges the government to pass legislation that insists on shop front doors being kept shut, to prevent further environmental impact. Research from Cambridge University revealed that retailers that kept their doors open consumed twice as much electricity as those that did not.

Sainsbury’s and Just Eat partner up

Sainsbury’s has launched a new partnership with food delivery app Just Eat. The partnership will widen the range of products available, starting with more than 3,000 items ready for consumers to buy online. The partnership will launch with more than 175 stores by the end of February in locations including Edinburgh, with plans to roll out to many more cities across 2023. Just Eat also has partnerships with brands such as Getir, Asda, Booker, Spar, and Shell.

Out-of-home eating occasions fall

The number of out-of-home eating occasions fell by 5% yearon-year in the 12 weeks ending 26 December 2022, according to TWC/MealTrak. The data shows food-to-go value sales declined by -2% on a 12-week ending basis versus 2021. Multiples (+18%) and discounters (+19%), remain “the clear winners,” although convenience stores are in decline (-16%).

ACS urges MPs to support rural shops

ACS is encouraging MPs to support its Rural Shops Pledge by recognising the crucial role that rural shops play in their constituencies.

e trade body is calling for more support for rural areas as part of the government’s ongoing levelling-up agenda, supporting investment in digital infrastructure to provide rural shops with reliable broadband and mobile coverage, and enabling rural shops to maintain a viable network of free-to-use cash machines.

e call came as the ACS launched the 2023 Rural Shop Report, which highlights the crucial contribution that the UK’s 17,720 rural shops make to their communities, this year it reveals:

Q Rural shops provide local, exible and secure jobs to 142,000 people, with more than half of rural colleagues walking to work.

Q More than one in four rural shops provide a local grocery delivery service to customers.

Q More than three in four rural shops (77%) have engaged in some form of community activity over the last year.

Q In the past year, rural shops have made investments worth over £214m to secure the future of their businesses.

CJ Lang selects RELEX to automate and optimise supply chain

CJ Lang & Son has chosen RELEX, a provider of uni ed supply chain and retail planning solutions, to automate and optimise its supply chain processes.

RELEX will deliver integrated store and distribution centre forecasting and replenishment, as well as improved allocations and promotional forecasting for CJ Lang’s company-owned stores and distribution centre. RELEX will also drive improved order accuracy, sharing of forecasts to suppliers, and fresh assortment optimisation.

CJ Lang sought a solution that could signi cantly improve the management and automation of its ordering processes so it could focus on more value-adding tasks.

e company looked to RELEX for its market reputation in convenience forecasting and replenishment, as well as to deliver improvements to promotions and product lifecycle management and save sta time to focus on customer experience.

ACS Chief Executive James Lowman said: “We’re calling on all MPs in rural areas to support their local shops at this incredibly challenging time for the whole rural convenience sector, as the loss of any rural shop would have a huge impact on the community that it serves.”

Lowman added: “ e government has failed in its attempt to come up with a solution to help rural businesses that need urgent support on energy costs, instead opting for a scattergun approach that won’t make a dent in the bills of thousands of shops facing huge hikes in the energy bills this year. Without urgent intervention to allow businesses to renegotiate fairer contracts, local shops will be forced to close their doors in numbers.”

Illegal tobacco factory raided in West Lothian

One of Scotland’s biggest illegal tobacco factories has been dismantled a er a raid in West Lothian.

e state-of-the-art factory, which included expensive machinery and insulation to hide noise and smells, was uncovered in an operation by HMRC and Police Scotland.

Four tonnes of tobacco were recovered, worth an estimated £1m in unpaid duty, and suspected counterfeit tobacco pouches were also found.

Joe Hendry, Assistant Director, Fraud Investigation Service, HMRC, said: “We will continue to work with our law enforcement partners to target anyone we suspect as being involved in the illicit tobacco trade.”

Five people have been arrested and charged. Investigations are ongoing.

Scottish Grocers’ Federation

Convenience Matters with the SGF

Scotland’s Food & Drink sector is globally recognised for exceptional produce and the Alcohol sector alone accounts for approximately 3.3% of GDP.

Retailers, wholesalers and farmers are vital for the wider supply chain and have hugely contributed to the economic success of the Drinks industry. Many rural communities depend on it to promote tourism and create employment.

SGF promotes responsible retailing, our members are at the very heart of their communities. Alcohol products are part of providing a ‘full basket’ for customers, with 18.1% of overall turnover attributable to alcoholrelated sales. Nevertheless, convenience stores are facing an incredibly challenging trading environment.

For the Scottish Government to choose this moment to introduce a consultation proposing a complete prohibition on alcohol advertising, banning alcohol branding, and removing alcohol products from public view is – to say the least –surprising. These restrictions could have a significant impact on our sector and thousands of businesses.

SGF encourages all its members to respond to the consultation, closing 9 March. We have been building evidence to support our retailers and producers, and have written to MSPs and ministers to highlight the damaging impact the proposals could have.

Businesses desperately need a period of stability and support from our governments. Come and have your say at the next Cross Party Group meeting in the Scottish Parliament on 28 February. Please contact jamiem@ sgfscot.co.uk for details.

ENERGY The government’s new energy support measures come into force on 1 April

Scaled-back energy support measures for businesses unveiled

The new energy scheme for businesses has attracted criticism from trade associations who fear that shops will go out of business as a result.

BY LIZ WELLS

A new energy scheme for businesses has been con rmed by the government ahead of the current scheme ending in March.

e government is currently reducing business energy bills by e ectively controlling wholesale energy prices. It will move away from this model on 1 April and instead provide a subsidy to electricity bills of 1.96p per kilowatt hour for all business customers paying over a minimum rate.

Chancellor Jeremy Hunt said: “My top priority is tackling the rising cost of living – something that both families and businesses are struggling with. at means taking di cult decisions to bring down in ation while giving as much support to families and business as we are able.

“Wholesale energy prices are falling and have now gone back to levels just before Putin’s invasion of Ukraine. But to provide reassurance against the risk of prices rising again we are launching the new Energy Bills Discount Scheme, giving businesses the certainty they need to plan ahead.”

ACS Chief Executive James Lowman, called the new package “woefully inadequate”.

He said: “By moving to a subsidy on energy bills and failing to target speci c sectors or those worst a ected, the government has spread £5.5bn support over every type of business, the result being a level of subsidy that is ultimately pointless.

“Local shops will go out of business if the government does not rethink its approach before April. Retailers who struck contracts at

the peak of the wholesale energy price will still see their bills quadruple even with this meagre support, blowing their commercial model out of the water. Our sector is resilient, plays a vital role in communities, and in fact o ers energy bill payment facilities for millions of customers including the most vulnerable. is policy will have very serious consequences for our members and the customers and communities they serve.”

e NFRN’s National President Jason Birks was equally dismissive: “ is is hugely disappointing for many independent retailers who are struggling to survive. With rising energy bills, falling margins, and rising payroll costs, small businesses will continue to struggle or, indeed, cease to exist unless additional nancial support is available.”

Gordon Balmer, Executive Director of the Petrol Retailers Association, said: “Our members have worked hard to keep their communities fuelled and fed during unprecedented times. e government’s failure to provide targeted help to sectors most in need will threaten fuel resilience in the UK.

“We urge the Chancellor to reconsider his decision and o er

support to business who might struggle to survive a er this cut.”

e Federation of Small Businesses in Scotland also voiced concerns over the “dramatic” scaling back of energy bill support for small businesses. Andrew McRae, FSB Scotland Policy Chair, said: “ is is a signi cant reduction in support – and it will have realworld impacts.

“Energy costs are still the singlebiggest challenge for many of our members, with six in 10 reporting utilities as the main driver of cost increases. By switching the support from a cap to a discount on wholesale costs, businesses are once again at the mercy of the global events that drive those prices.”

e Chancellor has also written to OFGEM, asking for an update in time for the Budget on the progress of its review into the nondomestic market. He has asked for the regulator’s assessment of whether further action is needed to secure a well-functioning market for non-domestic customers following reports of challenges certain customers are facing, including in relation to the pricing and availability of tari s, standing charges and renewal terms, and the ability of certain sectors to secure contracts.

SO MANY QUESTIONS... SO LITTLE TIME

I’ve said it before: the most saddening thing about the DRS debacle is the size of the missed opportunity. If it had been well planned and executed, the entire nation –retailers, producers, wholesalers and consumers – could have been looking forward together to 16 August with pride and excitement.

Instead, with only about seven months until the go-live date, the scheme remains mired in confusion, controversy and confoundment.

Experience and common sense tell you a project as complex as DRS takes years of careful consultation, planning, research and commitment from a lot of people. And, to be fair, the Scottish Government has had a lot of years. Nicola Sturgeon first unveiled her plans for a scheme way back in September 2017. Yes, Covid threw an almighty spanner in the works but anyone close to DRS over the last four or five years will tell you that the scheme was never going to be match fit for August 2023, Covid or no Covid. There were just too many mountains that required moving and not enough time to move them.

The most curious aspect of this whole debacle is the Scottish Government’s apparent lack of appetite to actually help get those mountains moved. They only appointed the Scheme Administrator last March with not much more than a year to go until they were supposed to deliver a working DRS. Circularity Scotland have become the whipping boys, but they were handed a poisoned chalice remit: deliver the undeliverable.

So here we are with seven months left and with many of the really important questions still unanswered. And there’s been more flip-flopping than on a beach in Lanzarote in July. We’ve seen U-turns and shifts on everything from exemptions and return point numbers to producer fees and handling fees.

Call me cynical but it looks like the government long since realised it couldn’t deliver the original scheme on time, the one that was promised and set in law, so they decided to knock off a few corners to try to create something – anything – that would let DRS go live in August. Are we heading for DRS-lite?

And as if all the in-built, systemic weaknesses with the plans weren’t enough, there have been plenty of unforeseen external challenges to further test the resolve of the government. The handling fee issue is subject to a legal challenge, the collection schedule is still a long way off and a plethora of other very serious problems still beset the scheme.

The biggest issue here, to return to my original point, is that this could all have been so different. If the Scottish Government had engaged – genuinely engaged – with industry, it could have ploughed its way through all the many legitimate challenges that launching a DRS en tails, one bite at a time. It wouldn’t have been easy and it wouldn’t have been pretty in parts, but it would have been the grown-up way to swallow that elephant.

ANTONY BEGLEY, PUBLISHING DIRECTOR

EDITORIAL

Publishing Director & Editor Antony Begley abegley@55north.com

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BESTWAY BLURS BOUNDARY EVEN FURTHER

The once clean line between the grocery and convenience channels is being blurred further with Bestway taking a £200m share of Sainsbury’s while Asda plans a mega-merger of its supermarket and forecourt businesses.

BY ANTONY BEGLEY

It wasn’t that long ago that the grocery and convenience channels were considered as entirely separate entities, if not downright sworn enemies. Back in the day the word ‘mult’ was invariably used by a local retailer as a pejorative term, a form of insult aimed at the big, bad supermarket chains with their massive budgets and their equally massive ambitions.

at once clear demarcation line between grocery and convenience, however, has become ever-blurrier over the years. Last month Bestway did their bit to accelerate the trend by taking a substantial stake in Sainsbury’s. So, where and how will it end?

e attraction of the convenience channel to big players is not new of course. Many of the major supermarkets have had a go at the channel, in one way or another – with varying degrees of success. Tesco Express and Sainsbury’s Local are only a couple of examples of the big boys’ attempts to gain a proper footing in smaller format retailing. But everybody from Amazon to B&Q have had a crack at the channel, again with varying degrees of success.

e blurring, however, moved up a gear in 2017 with Tesco’s £3.7bn acquisition of Booker. at move caused consternation in board rooms across the UK as competitors scrambled to work out how they could compete with a merger of the UK’s biggest supermarket chain with the UK’s biggest wholesaling business.

en Asda was sold by Walmart to the Issa brothers in 2020 and private equity rm bought Morrisons a year later.

Since then we’ve seen a continuing wave of deals, partnerships, tie-ups and agreements as the market wrestles with the new groceryconvenience world order, the latest of which is Bestway’s near £200m investment in Sainsbury’s, with the potential for the wholesaler to take an even bigger position in the future.

For its £200m, Bestway got a 3.45% stake in the UK’s second-biggest supermarket, making it Sainsbury’s sixth-biggest shareholder. Exactly why Bestway made the punt is up for debate. Ostensibly, the company said the stake was purely “for investment purposes” but I doubt there are many people buying that argument. It won’t surprise anyone down the line if another reason for the investment emerges. A trading collaboration of some sort, for instance.

Interestingly, Bestway categorically stated that it was not considering a takeover bid –something the £4.5bn-turnover company could probably just about do if it really fancied. Under nancial rules, however, the fact that it clearly stated it was not planning a takeover bid means it now can’t do so for at least six months – unless a rival bidder appears out of the undergrowth.

Meanwhile, Asda appears to be doing its best to blur the lines between grocery and convenience with a proposed mega merger of its supermarket and forecourt businesses that would create a retail giant worth more than £10bn with 581 supermarkets, 700 forecourts and over 100 convenience stores.

According to the GMB trade union, the latest attempt at the merger “isn’t in the interests of the 200,000 impacted workers, or the UK economy, or even consumers” but is, it says, being driven forward because it “suits the debt re nancing arrangements of a private equity rm and their business partners”.

Nadine Houghton, GMB National O cer, said: “ is proposed merger raises the spectre of a private equity black hole on the UK high street. More and more of our essential household goods – from food to fuel – are controlled by unaccountable private equity backers.

“GMB stands on the side of hard-working families in calling for the role of the CMA to be expanded – giving greater regulatory oversight in relation to private equity buyouts and ensuring greater protection of both consumers and workers.”

So where does that leave independent local retailers? Convenience is hot and everybody wants a piece of the action, including global private equity rms with their infamously short attention spans and fast buck proclivities. We’ve already seen a supermarket buy a wholesaler

and it probably wouldn’t surprise anyone to see a wholesaler buy a supermarket at some point in the future. Will grocery and convenience ultimately coagulate into one amorphous mass, the lot of it owned by three or four groups? It has happened before in other sectors. e vast majority of the global beer and spirits industries are owned by just a handful of players, for instance.

It’s a possibility, of course, but Scotland is, as ever, insulated to a certain extent because of the simple nature of the geography. is is God’s country, as we like to say. And he clearly made it on one of his more expansive days. Outwith the major cities, Scotland is particularly hard to service – which is why so few businesses try to do it properly.

ere will be more consolidation in the future. Of that there is no doubt. But even the bottomless reserves of private equity and the equally bottomless ambitions of the supermarkets cannot overcome the simple fact that Scotland is big, not very populous and very, very spread out.

Maybe God’s not da a er all.

Eggs-cellent news

Chocolate lovers of a certain age will be delighted to learn that Mondelez has decided to put the sweets that accompany its Cadbury Easter eggs back where they belong: inside the chocolate shell. The dramatic move is part of a relaunch and repositioning that sees the full range divided into clear, distinctive and easyto-shop categories. These are ‘Surprise & Delight’, ‘Traditional Gift’ and ‘Special Gesture’.

Vitalite is shining bright

Saputo Dairy UK’s dairy free spread brand, Vitalite, has launched new brand positioning and a new website. ‘Shine Bright’ is a call-to-action for consumers to focus on all-round health and wellbeing, and recognises the links between physical and mental health and how eating well is an important part of this. The brand, which marks 20 years of being dairy free in 2023, has also unveiled new product packaging and a new website.

KP unveils Mini Chips price-marked packs

KP Snacks has expanded its price-marked pack range with the launch of KP Mini Chips Salt & Vinegar £1.25 PMP (60g) and KP Mini Chips Beef £1.25 PMP (60g). Both roll out into stores from mid-February. Their launch coincides with a fresh new look for the Mini Chips range. The savoury snacking giant has also given its PMP portfolio of 45 SKUs a range and pricing restructure.

PayPoint adds Google Play and life:style vouchers

PayPoint has extended its digital voucher range with the addition of Google Play and life:style. PayPoint retailer partners can now sell ‘pin on receipt’ vouchers for Google Play worth anything between £1 and £200. Life:style vouchers can be preloaded with any amount between £20 and £100 and are intended to be given as a physical card to the customer to take away to present as a gift.

Ferrero expands Easter range

Ferrero UK has expanded and refreshed its Easter range for 2023.

orntons has expanded its range of moulded gures with the launch of a white chocolate bunny in a 90g format to cater for gi ing occasions. orntons’ existing 170g Bunny is already the third-bestselling branded SKU in value sales within novelties, worth £1.48m, according to Nielsen.

Meanwhile, a full pack re-design is set to roll out across orntons’ kids eggs, with animations and colourful backgrounds aiming to drive standout on shelf for parents.

What’s more, Ferrero Rocher has revealed two boxed egg packs for Easter 2023, a Ferrero Rocher

CONFECTIONERY

Egg and a Ferrero Collection (Milk) Egg, which both include a large 175g egg and six Ferrero Rocher. On top of this, Ferrero is introducing a new 100g Bunny for Easter.

In addition, Kinder Seasonal is returning for Easter 2023 with

familiar favourites such as Kinder Joy, Kinder Egg Hunt and Kinder Figures.

e Kinder 75g Bunny is now worth £1.1m, bene tting from additional distribution in 2022 across grocery and convenience throughout the Easter sales period.

World of Sweets teams up with chocolate liqueur brand

World of Sweets has expanded its partner brands portfolio by adding liqueur-filled chocolate maker Anthon Berg to its range.

A new distribution deal brings the Danish brand to a whole new market, vastly expanding its UK customer base and positioning it as an all-year-round gifting option for retailers, as well as focusing efforts around popular events like Valentine’s Day, Mother’s Day, Father’s Day and Christmas.

The brand is best known for its bottle-shaped chocolates, Its current includes Premium Chocolate Liqueurs, Chocolate Cocktail Liqueurs, Chocolate Coffee Liqueurs, Single Malt Scotch Collection, Chocolate Liqueur Tablets, Chocolate Pralines, Fruits in Marzipan, Marzipan Bars and an Advent Calendar. Anthon Berg is said to have the best selection of globally recognised spirits brands in the chocolate category, and World of Sweets plans to make the most of all product formats in its portfolio, including gift boxes, sharing pouches, tablets and bars.

Sovereign Blue joins JTI’s ultra-value range

JTI has repositioned Sovereign Blue’s RSPs including KS, SK and Sky Blue KS to align with its ultra-value o erings as part of a pricing restructure across the tobacco manufacturer’s portfolio of Conventional Tobacco Products.

Sovereign Blue’s RSP (20-pack) will change to £10.65, joining Mayfair Silver and Kensitas Club as part of JTI’s ultra-value range.

Mark McGuinness, Marketing Director at JTI UK, commented:

“Price is an important purchasing factor for existing adult smokers and 80.5% of all sales volumes are currently in the value or ultra-value RMC and RYO sector.

“We’ve brought Sovereign Blue in line with our other ultra-value options to provide more choice of well-known brands to consumers at this end of the market.

“Shoppers will still receive the same high-quality Sovereign Blue product, whilst retailers can maximise the sales opportunity by o ering this heritage brand at a new value RRP.”

TOBACCO JTI restructures its tobacco portfolio

SENSATIONAL SOFT DRINKS SALES – P34

Oreo launches new Xbox promo

Cookie brand Oreo has teamed up with gaming giant Xbox for a new promotion that seeks to “bring shoppers together through playful experiences”.

To celebrate the partnership, the Oreo cookie has been transformed to pay homage to the Xbox controller – with six embossed Oreo Xbox Special Edition cookies available to order now.

By scanning the cookies or entering the bar code from any participating pack, shoppers can unlock exclusive Oreo-themed in-game content across three of Xbox’s top-played games, including an Oreo ‘Parade Ground’ Armour Coating in Halo In nite, an Oreo

CONFECTIONERY Big Night In competition returns Retailers

‘Valiant Corsair’ Sail Set in Sea of ieves and an Oreo Edition ‘2009 Pagani Zonda Cinque Roadster’ in Forza Horizon 5.

In addition, thousands of prizes will be available over the promotional period, such as Xbox Series S consoles, Xbox Stereo Headsets and Xbox Game Pass Ultimate subscriptions. All entries will go into a grand prize draw for the chance to win a family holiday to California.

can win a grand with Swizzels

Swizzels has launched its Big Night In campaign for a fourth year, giving retailers the chance to win a cash prize of £1,000 when they buy any three cases from the sweet maker’s hanging bag range.

e range includes Curious Chews, Minions Tropical Chew Bars, Drumstick Choos, Refreshers Choos, Luscious Lollies and Scrumptious Sweets.

e campaign will be supported by POS for cash & carrys, wholesalers and retailers, as well as marketing support across customers’ own trade channels.

To enter, retailers need to upload their invoice or receipt via the QR code on POS or at swizzels. com/tradecomp. e competition runs from 1 February until 30 April.

Mark Walker, Sales Director at Swizzels, said: “ e Big Night In is now a rmly established trend that shows no signs of slowing down. We anticipate that more people will choose to socialise at home at the beginning of 2023 due to rising costs.

“Our hanging bags contain a selection of well-loved sweets with something for everyone, making them the ideal product to share on a Big Night In.”

“At Oreo, we love to surprise our consumers with new, fun activations that get them excited,” said Rafael Espesani, Senior Brand Manager for Oreo. “ is partnership is set to bring people together as they unlock playfulness with friends and family.”

Oreo’s brand owner Mondelez International advised retailers to stock up now on the limitededition cookies to make the most of the partnership.

New taste for Dr Pepper Zero

Coca-Cola Europacific Partners (CCEP) has unveiled a new and improved taste for Dr Pepper Zero. The relaunch is supported by a targeted out-of-home and social media advertising campaign that targets young adult shoppers.

Consumers will also be able to sample Dr Pepper Zero’s new and improved taste at universities and through food delivery services.

Martin Attock, Vice President of Commercial Development at CCEP, commented: “We know that taste is the number one consumption driver for Dr Pepper fans, and we’ve identified an exciting opportunity to make our Zero variant taste even better, with no significant taste difference between the regular variant.

“We’re starting the year as we mean to go on with Dr Pepper, and have big plans to keep investing in the brand after it became the no.2 flavoured carbonate brand in 2022.”

STG rebrands Moments

Scandinavian Tobacco Group has redesigned its value-formoney Moments brand with a new modern and eye-catching look that intends to start a shift from a ‘value, yet quality’ to a ‘value and quality’ message. The updated design features now on Moments Blue and Moments Original, with Moments Panatella following in May. New packs feature a bigger, more simplified logo and fresher colour scheme.

Nice prizes

Cadbury has launched ‘Spectacularly Nice,’ a new promotion across its hot chocolate range that gives shoppers the chance to win a raft of prizes. London West End theatre evenings and overnight trips to Paris are up for grabs, along with hundreds of Cadbury Hot Chocolate hampers that include takeaway vouchers. The promotion is bolstered with extensive out-of-home and instore support.

Hancocks launches

Ultimate Pick and Mix offer Confectionery wholesaler

Hancocks has unveiled its Ultimate Multibuy Pick and Mix to offer its customers choice from big name brands and value for money. The deal applies to bulk bags of pick and mix of 1.5kg and over. Customers who buy 20 or more bags will get a discount of 20p per bag. For customers buying 40 or more bags, the discount will be 50p per bag.

Brownie blues

Snack bar brand Fibre One 90 Calorie is out to banish the blues with a new on-pack promotion across its brownie range. Running until 20 February, the brand is offering the chance to win the ‘ultimate craveable experience’. A whopping 600 luxury prizes, including spa days, are up for grabs. To enter, shoppers must purchase their favourite brownie flavour and go online to see if they’ve won. The promotion is supported by shopper marketing activity.

SOFT DRINKS

Devilish ad campaign

Chilean wine brand Casillero del Diablo is back on TV with a rerun of its 2021 ad campaign, The World’s Greatest Thief, starring Chilean-American actor Pedro Pascal. The ad will be shown during episodes of The Last of Us on Sky Atlantic. The new drama series, which features Narcos and Game of Thrones star Pascal, is on air until 21 March. The brand is hoping for 90,000 adult ABC1 impressions over the ad’s 10-week run.

Mardi Gras makeover

Whiskey liqueur Southern Comfort has launched its third limited-edition bottle to celebrate Mardi Gras (21 February). This year, the bottle has been designed by Liverpudlian street artist John Culshaw, who took inspiration from the sights, sounds and tastes of New Orleans. Shoppers can scan an on-pack QR code to have a chance of winning a trip to New Orleans for Mardi Gras 2024.

Thatchers rolls out 2023 Community Orchard Project

Thatchers Cider has launched its Community Orchard Project for the third consecutive year. The Somerset cider maker is looking to give away 500 apple trees to community groups up and down the country, encouraging planting in both urban and rural communities. In 2022, Thatchers gave away 350 apple trees to over 50 organisations, doubling the number it was able to support in the project’s first year.

Government urged to promote low/no drinks

The Portman Group has called on the UK government to do more to encourage uptake of low- and no-alcohol drinks and finally launch its consultation on low-alcohol descriptors. Delayed now for almost two years, the consultation would seek views on standardising the terminology around the various ways in which products below 1.2% ABV are marketed – a major source of confusion for UK consumers.

WKD kicks-off Love Island double date

A er a two-year association as the O cial Alcohol Partner of Love Island, ready-to-drink brand WKD has expanded the collaboration for a further two series in 2023.

For the rst time ever, the ITV2 reality show is broadcasting two separate series in the same year, and WKD is O cial Alcohol Partner for both Series 9 (on air now) and Series 10 (summer).

e 2023 partnership provides WKD with extensive co-branded opportunities and to be the focal point of the brand’s marketing

LOW AND NO

support. Plans to leverage WKD’s exclusive O cial Alcohol Partner status and maximise the tie-in have already started and these include social, digital and in uencer activities.

Alison Gray, Head of Brand for WKD at SHS Drinks, commented: “We believe there’s no better match for WKD than Love Island! e success of the partnership is a key reason behind WKD’s impressive recent performance.

“Consumers and stockists can look forward to another year of

Broadland Drinks adds alcohol-free trio to Three Mills range

Broadland Drinks has added three nonalcoholic SKUs to Three Mills wine range.

Initially launching with a Fruity & Zesty White, a Light & Fruity Rosé, and a Juicy & Smooth Red, the new SKUs are available from this month.

Blended with 100% natural botanical flavours, Three Mills 0% is vegan, glutenfree and less than 40 calories per serving.

“Whilst it is younger consumers who are most likely to not drink alcohol, almost 40% of regular wine drinkers are actively moderating their consumption and seeking a great-tasting alternative,” said Nicola Cannon, Senior Brand Manager at Broadland Drinks.

“Caffeine and other soft drinks are not designed to target the same need state as alcohol; there’s very little choice for consumers looking for a great-tasting wine alternative.”

fun, innovative Love Island-related activity from WKD and, with two Love Island series in a year for the rst time ever, we’re doubly happy and doubly con dent that this really is a win: win, win: win scenario.”

CIDER Westons spends £2m on sustainability

Westons Cider has announced details of a £2m investment to enhance its fruit pressing capacity, while using the latest technology to reduce overall energy consumption, as part of the producer’s mission to reduce its carbon footprint.

The investment will see two state-of-the-art cider presses installed at its Herefordshire mill. Running entirely off renewable energy sources, and 20% more efficient than the current on-site presses, the new technology represents a significant step towards the company’s target of reducing its carbon emissions by 46% by 2030.

The installation of the new presses, set to begin in May, will enable Westons to press around 30% more fruit in the coming harvest when compared to the 2022 season.

The project is the latest measure introduced by Westons to reduce its carbon output. Last year, the company invested in a £3m canning line to improve its recyclable packaging capabilities and reduce the need to transport cider elsewhere.

BrewDog backs mental health campaign

BrewDog is promoting positive mental health through a tie-up with #IAMWHOLE, an award-winning mental health campaign aimed at young people, encouraging them to speak out and seek help and support.

A donation from the sales of limited-edition four-packs of BrewDog’s Punk IPA Alcohol-Free 330ml will go towards supporting #IAMWHOLE.

e campaign is supported with a guerrilla-style out-of-home and digital awareness campaign, encouraging people to think about

why mental health openness is still such a taboo for men, and to get them talking.

Alex Dullard, Brewdog’s Head of Customer Marketing, said that the start of a new year can be di cult for many and a time when we

Zealand Wine rebrands

Trade association New Zealand Winegrowers has unveiled a new global brand platform, ‘New Zealand Wine, Altogether Unique,’ to highlight the very best of the country’s wine industry.

A short storytelling video has been created as part of the rebranding that aims to create an emotional connection to New Zealand wine. is features Kiwi actor and winemaker Sam Neill of Jurassic Park and e Piano fame, who has been a part of the New Zealand wine story for over 25 years. Neill is the proprietor of Two Paddocks, a family vineyard based in Central Otago, New Zealand.

“ is storytelling asset will tell the foundational story of New Zealand wine through the lens of the key pillars of purity, innovation, and care – aspects that make New Zealand wine and the New Zealand wine industry, so unique and special,” said Charlotte Read, General Manager Marketing, New Zealand Winegrowers.

“With global activity returning to ‘normal’, it’s more competitive than ever to have voice of the New Zealand Wine brand heard, and a clear premium brand message is essential. Creating a compelling brand positioning for New Zealand Wine is important as we seek to engage and motivate evolving wine drinking audiences.”

need to look a er our mental and physical health.

He added: “ at’s why we are teaming up with #IAMWHOLE for the second year and this time we are promoting it on-pack.

“ e campaign does great work at breaking down the taboos around mental health and we’re really thrilled to be able to help spread the word.”

To nd out more about Brewdog’s support of #IAMWHOLE, or if you feel the need to talk to someone about your own mental wellbeing, please visit whole.org.uk/giveaf.

Nikka releases two new single malts

Japanese whisky brand Nikka is releasing two new expressions in the UK, exclusively distributed by Speciality Brands, as part of its Discovery Series. The new limited editions aim to highlight the brand’s whisky-making expertise whilst overturning preconceptions about single malts. Both Yoichi Single Malt Discovery Aromatic Yeast (70 cl – 48% ABV) and Miyagikyo Single Malt Discovery Aromatic Yeast (70 cl – 47% ABV) will be available from this month with an RSP of £245.

Top tequila

RTDs

Global buys Hooch, Hooper’s and Reef trademarks

Global Brands has announced its purchase of the Hooch, Hooper’s, and Reef trademarks from Molson Coors.

The brands have been produced and distributed by Global since 2012.

Steve Perez (pictured), Chairman and Founder of Global Brands said the move gave the company the opportunity to invest further into the brands with the added security of owning the equity.

He added: “Hooch is a staple of the RTD category sold by major retailers. This deal will reinforce Global Brands’ position as the leading independent producer of RTD brands in the UK.

“We have lots of ideas for innovation and look forward to sharing these with the trade and consumers shortly.”

The latest CGA data has found that independently owned Cazcabel is the UK’s bestselling 100% agave tequila. As well as leading the way in both volume and value sales, Cazcabel is also the fastest-growing premium tequila in the market, enjoying 857% growth over the last three years. Cazcabel Blanco Tequila (ABV 38%) has an RSP of £25.99 for a 70cl bottle.

Seventh heaven

Ehrmanns Wines has unveiled a new Sauvignon Blanc from the Marlborough region of New Zealand. Crisp, zesty and refreshing, Seven Degrees (ABV 12.5%) has an RSP of £12 and offers notes of citrus fruit, lime, lemongrass and passionfruit. Apparently, 7°C is the best serving temperature for Sauvignon Blanc, hence the name.

Amber Beverage names

new COO Spirits producer Amber Beverage Group (ABG) has appointed Ewan MacLean as its Global Chief Operations Officer. He becomes a member of ABG’s Executive Committee Team and will oversee and organise all ABG production and supply chain processes reporting to the Group’s CEO, Jekaterina Stuge. MacLean joins ABG from Stock Spirits where he was Group Operations Director.

CRAFT BEER A donation from sales will bolster award-winning #IAMWHOLE

WINE Jurassic Park star spearheads marketing push New

FOOD DELIVERY DRIVER PAY

‘FALLS 13%’

Food delivery driver pay fell up to 6% in 2022 compared to 2021 – with real-terms earnings plunging up to 13% when inflation is taken into account, according to data from gig worker app Rodeo.

Driver pay fell 6% in 2022 at Just Eat, 2.4% at white label delivery subcontractor Stuart, 1.3% at Uber Eats and 0.3% at Deliveroo respectively, according to the insight.

When taking average 2022 inflation of 8.9% into account, all four platforms saw realterms pay fall dramatically. Just Eat pay dropped almost 14%, while Deliveroo, Uber Eats and Stuart all saw driver earnings per order down about 10%.

COST-SAVING BEHAVIOURS PRESENT OPPORTUNITIES FOR RETAILERS

New data from Barclays has highlighted some key shopper cost-saving trends, offering opportunities for retailers.

From batch-cooking healthier meals at the weekends to buying more own brand products, new data from Barclays has revealed how consumers have adopted a more cost-conscious approach to New Year’s resolutions in 2023.

Insights from Barclays’ monthly Consumer Spending Index, which combines hundreds of millions of customer transactions with consumer con dence data, highlight some of the key trends and ag up opportunities for retailers.

e cost-of-living squeeze has apparently dampened appetite for New Year’s resolutions with 11% saying they have not made any resolutions at all due to rising costs, and an additional 10% feeling that resolutions are “less important this year” for the same reason.

A key trend identi ed is a sharp increase in people looking to get more value from the shopping spend

each week. Some two-thirds (65%) are actively looking for ways to get more value from their spending with almost half (49%) saying they are shi ing to ownbrand or budget goods over branded goods.

Meanwhile, over one-third (34%) of those who are aiming to make their resolutions more cost-e ective this year are planning to get a head start by preparing healthier or cheaper meals by batch cooking at the weekends, creating opportunities for retailers able to meet demand for ingredients.

A signi cant 63% of shoppers plan to reduce how o en they eat out at restaurants, presenting more opportunities for retailers.

Commenting on the ndings, Esme Harwood, Director at Barclays, said: “When purse strings tighten, the categories which tend to perform well include takeaways as a substitute for meals out, and staycations instead of holidays abroad.”

RETAIL ENJOYS BEST MONTH ‘FOR 20 YEARS’

Total retail food sales in Scotland increased by 11.5% compared with December 2021, according to the SRCKPMG Scottish Retail Sales Monitor for December 2022, representing “the best monthly performance in 20 years”. is gure was marginally ahead of the total retail sales growth gure of 11.3%. Adjusted for in ation, the year-on-year change was 3.9%.

On a like-for-like basis, total Scottish sales increased by 4.6% year-on-year.

David Lonsdale, Director, Scottish Retail Consortium, said: “A er two miserable years Scotland’s retailers were nally able to toast sparkling Christmas sales as 2022 nished with a ourish. December’s retail sales shone compared to

recent months and the comparable month the year before as shoppers returned to spending and took advantage of the rst Christmas in three years without pandemic-era curbs or instructions to shun socialising. Retail sales grew by almost 4% in real terms, the highest in three years, and at a much faster rate than during the second half of 2022. In gross terms, taking into account in ation and excluding Covid-era distortions, this was the best monthly performance in 20 years.

“Retail is far from being out of the woods yet. It’s an industry in transition with retailers navigating their own costs crunch, cash-conscious consumers, and the twin challenges of the economic legacy of Covid and in ationary pressures.”

RETAILERS’ FAVOURITE NEW PRODUCTS OF 2022 REVEALED!

The votes have been counted, so read on to see the winners of SLR’s Product of the Year Awards 2022...

BY GAELLE WALKER

As experienced retailers know by now, the survival, success and growth of the local retailing industry depends on all elements of the supply chain working in harmony. If retailers themselves are the heart and soul of the sector, then new products must surely be the lifeblood. Innovative new launches deliver a steady stream of chances to grow footfall, sales and pro ts.

SLR’s Products of the Year awards 2022 celebrate the very best of these game-changing new products – the bright sparks that have

helped to ignite growth in what was another challenging but successful year.

Crucially, the winners have been crowned by those who matter the most, local retailers themselves, with store owners’ thoughts, opinions and accounts having helped to shape every stage of the judging process.

So sit back, relax and bask in the glow of 2022’s most-prized new products, the tipples, treats and sweets that provided a welcome shot in the industry’s arm, setting it up for a healthier start to the year ahead.

HOW WERE THE WINNERS CROWNED?

The winners were decided exclusively by retailer vote.

All products that were launched in the 2022 calendar year and were available in the Scottish local retailing channel were eligible for entry.

The shortlist was curated from a list of every product that was carried in the print and digital versions of SLR and scored against a range of key engagement criteria including digital views, reads and clicks and offline retailer feedback.

All winners are entitled to showcase the special Winners logo on pack and in their marketing materials while all shortlisted entrants can display the special Shortlisted logo.

MEET THE WINNERS

BEER, CIDER AND LOW/NO ALCOHOL BEER

THATCHERS BLOOD ORANGE

BISCUITS AND CAKES

OREO TWISTS

BREAD AND HOME BAKING

WARBURTONS MAKE IT GRAIN

CANDY

SQUISHY CLOUDZ CHOCOLATE CONFECTIONERY

CADBURY TWIRL CARAMEL

CRISPS AND SNACKS

HEALTHY SNACKS/BREAKFAST BARS

NATURE VALLEY FRUIT & NUT

RTDS

DEAD MAN’S FINGERS: SPICED RUM & COLA SOFT DRINKS

RELENTLESS ZERO SUGAR

SPIRITS AND NO- OR LOW-ALCOHOL SPIRITS

SMIRNOFF BERRY BURST

SPORTS & ENERGY

LUCOZADE ALERT ORIGINAL

SQUASH

WOTSITS

CRUNCHY DRINKS TO GO

COCA-COLA EUROPACIFIC PARTNERS AND COSTA COFFEE DRINK FRAPPÉ RANGE

FOOD TO GO

RUSTLERS PERI PERI CHICKEN TENDERS BURGER

FREE FROM

CATHEDRAL CITY PLANT-BASED GUM

MARS WRIGLEY EXTRA, APPLE AND BLUEBERRY

HARD SELTZERS

AB INBEV CORONA TROPICAL ICE CREAM

BEN & JERRY’S SALTED CARAMEL BROWNIE PEACE POP

PROTEIN

BRANSTON BEANS

ROBINSONS ‘READY TO DRINK’ BLACKBERRY & BLUEBERRY

TOBACCO

NORDIC SPIRIT BERGAMOT WILDBERRY EXTRA STRONG VAPING

GEEK BAR E600 WINE

JAM SHED CHILEAN MERLOT CHILLED

KEFIR DRINKS

FROZEN

DR. OETKER RISTORANTE PRICE-MARKED PACK (PMP)

GROCERY

QUAKER’S FLAVOURED PORRIDGE RANGE

DRS HANDLING FEE UPPED AS LEGAL BATTLE PROCEEDS

DRS administrator Circularity Scotland has announced a slight increase in Handling Fees as Lanarkshire retailer Abdul Majid’s legal challenge is given the green light to proceed.

HANDLING FEE RECALCULATIONS

DRS ROADSHOW

To help retailers prepare for DRS, CSL is running a series of registration workshops this month at venues across Scotland, as well as online.

With Return Point Operator Registration opening in March, the CSL workshops are open to all local retailers. They will last just over three hours and will cover:

*Return Point Operators will receive the Automatic Level 1 fee for the first 8,000 qualifying containers processed each week and the Automatic Level 2 fee for every container above the 8,000 threshold.

With retailers seeking more clarity and transparency on Scotland’s ground-breaking Deposit Return Scheme, these qualities seem in very short supply as the scheme draws ever closer to its go-live date on 16 August this year. e latest major hand grenade in proceedings is the prospect of a legal challenge to the Handling Fees retailers will receive for being part of the scheme. Bellshill retailer Abdul Majid’s quiet con dence that a legal challenge he is mounting would be allowed to proceed appears to have been well founded: the Court of Session has formally granted permission for his Judicial Review petition to proceed.

HANDLING ERROR

As previously reported in SLR, Abdul is challenging “the legality of the retailer Handling Fees which DRS administrator Circularity Scotland (CSL) is seeking to impose on retailers”.

Unsurprisingly, the Scottish Grocers’ Federation (SGF), which is backing Abdul’s challenge, has welcomed the news that the challenge will now proceed.

SGF CEO Pete Cheema said: “Scottish Grocers’ Federation has been and remains fully committed to a t for purpose Deposit Return Scheme but for that to happen recognition must be given and action taken to address the concerns around retailer handling fee levels which has been raised in Mr Majid’s petition.”

Abdul’s concern is that, a er extensive analysis, he feels that the Handling Fee levels

will not cover his costs and “will be detrimental to his business both in the short and long term thereby threatening the viability of his store which provides key services and groceries to his local community in Bellshill”.

FEE RECALCULATION

In the wake of this news, CSL then unexpectedly revealed an increase in the return Handling Fees. Increases of up to 19% were announced a er the fees had been “recalculated following feedback from industry and an independent assessment from PwC, which considered the impact of in ation and changes to the guidance around exemptions for return points announced by the Scottish Government last year”.

e recalculation sees the manual Handling Fee remain at 2.69p per container while the fee for those using automated Reverse Vending Machines (RVMs) rises from 3.55p to 3.70p per container for the rst 8,000 containers each week and from 1.35p to 1.60p for every container above the 8,000 threshold each week.

CSL said the revisions will not increase the total anticipated cost of the scheme and follow the December announcement of a reduced producer fee, which was slashed by 40%.

David Harris, Chief Executive of CSL, said: “We’re focused on delivering a Deposit Return Scheme that works for businesses of all sizes and delivers for Scotland. We will continue to work closely with industry, helping them to prepare for the scheme and ensuring that the scheme runs as e ciently and at as low cost as possible from August 2023.”

Q Producer Registration process

Q Return Point Operator Registration process

Q Operations overview: how the scheme works

Q Exemptions: eligibility criteria

Q Q&A session

There are two seminars at each location at 9am and 2pm each day. The seminars take place on:

Q Tuesday 7 February at Macdonald Drumossie Hotel, Old Perth Road, Inverness IV2 5BE

Q Wednesday 8 February at The Ben Nevis Hotel & Leisure Club, North Road, Fort William PH33 6TG

Q Thursday 9 February at Malmaison Dundee Hotel, 44 Whitehall Crescent, Dundee, Angus DD1 4AY (Please note: There is no parking available at the Malmaison Dundee Hotel but it is a short walk from several public car parks)

Q Monday 13 February – DoubleTree by Hilton Edinburgh Airport, 100 Eastfield Road, Edinburgh, EH28 8LL

Q Tuesday 14 February - Philipburn Hotel, Linglie Road, Selkirk TD7 5LS

Q Wednesday 15 February – DoubleTree by Hilton Glasgow Central, 36 Cambridge Street, Glasgow G2 3NH

Q Thursday 16 February – Cairndale Hotel, English Street, Dumfries, DG1 2DF

Q Friday 17 February – Webinar, 11am (a recording will be available after the event)

To register for the events or for further information, please visit www.circularityscotland.com

CHECKOUT SCOTLAND: GET INVOLVED!

GroceryAid Scotland’s hugely popular Checkout music festival is back later this year and Scotland’s local retailers are being invited to get involved.

Scotland’s local retailing community is being urged to get involved in Checkout Scotland, the outstanding charity music festival organised by the Scottish Committee of industry charity GroceryAid. Following a hugely successful launch last year, the event will return in August with plans to ensure that the event is even bigger and even better.

e event returns on 31 August 2023 and will provide the perfect opportunity for the sector to gather, enjoying a fantastic day out and support the many industry colleagues who have fallen on hard times or face di cult challenges. e e ects of Covid have made the free, con dential support services that GroceryAid provides

more vital than ever. Unfortunately, demand for practical, nancial and emotional support has never been higher in the charity’s 166-year history.

In the last year alone GroceryAid has given out £434,000 in grants in Scotland.

GET INVOLVED

Jim Harper, Joint Chairman of the GroceryAid Scotland Committee, told SLR: “ e free, con dential support that GroceryAid provides is invaluable and, sadly, that support is more important than ever.

“Checkout Scotland is the perfect opportunity for local retailers in Scotland to play their part in supporting our industry colleagues who need a

little help, while also enjoying a great day out.

“We would encourage everyone to get involved by buying tickets, coming along and showing their support. A high-pro le event like Checkout Scotland really helps us raise awareness of GroceryAid and the many vital services it can o er to industry colleagues who may need emotional, practical or nancial help. e more colleagues that know that GroceryAid is there to help the better.”

Tickets cost £75 and are available now. ere are also a number of sponsorship packages available. All funds raised from the event will go towards helping colleagues in need with emotional, practical and nancial support from GroceryAid.

SLR PUBLISHER HITS GOLD

SLR publisher 55 North has once again received a coveted Gold Award from GroceryAid. Gold Award winners are companies that have participated in eight activities across all three of the charity’s critical pillars: Awareness, Fundraising and Volunteering. Other Gold winners include Asda, Booker, Budweiser, CCEP, Diageo, Heineken and Moet Hennessy.

THE SCOTTISH BUYING GROUP FOR INDEPENDENT RETAILERS SINCE 1976

Scotland’s best kept retail secret, working with independent retailers for over 40 years providing access to one of the leading convenience retail groups while allowing you to run your store, your way with great ranges and great support delivered direct to your store.

Delivered direct to store, with manageable order quantities.

14,000 SKU count across all categories including Food to Go

Access to the excellent and extensive Co-op Own Label Ranges

Three weekly promotion cycle available

Year round seasonal sales opportunities

Fascia and branding opportunities through the well established brand

Rebate scheme for qualifying members, spend level applies

Extensive supplementary direct to store ranges and services

Simple Invoicing*, one consolidated weekly statement and one direct debit

*Small weekly Admin Fee applies

If you want to remain independent and have the support of PGMA behind you, drop us an email at pgma@pgma.co.uk or call Martin Devlin, Commercial Manager on 0131 343 7607.

Maltesers Vegan Hot Drink

Mars Chocolate Drinks & Treats

Registered with the Vegan Society, Maltesers Vegan Instant Hot Drink is available initially at Aldi with wider distribution in wholesale expected later in the year. It comes in a 250g jar (RSP £2.99) which contains 10 servings. Consumers simply add hot water to enjoy a chocolatey drink taste with a hint of malt. For all sales enquiries, please contact Aimia Foods on 01942 272900.

Mentos Citrus Vitamin Gum

Perfetti Van Melle

Mentos Citrus Vitamin Gum is sugar free and contains 25% of the recommended daily allowance of vitamins B6, C and B12. A tangy liquid-filled centre is made up of a blend of orange, grapefruit and lemon flavours. The gum is available in bottles containing 45 pieces with an RSP of £2.40. PVM said the gum offers consumers “a hit of delicious freshness which excites the mouth and awakens the mind – all whilst contributing to their wellbeing”.

Roots from Urban Eat

Samworth Brothers

Food-to-go brand Urban Eat has relaunched its plant-based range, Roots, with a fresh look and two new sandwiches: Cheeze & Pickle with tomato and lettuce, and Falafel & Houmous with vegan mayonnaise and crunchy salad The range also includes a Tomato & Pesto wrap and a new Spicy Bean wrap. To stock, retailers should call the Fresh Food For Now sales team on 0116 236 1640 or email hello@ foodfornow.co.uk.

Magnum force: four new ice creams from Unilever

Magnum Double Sunlover offers coconut ice cream, paired with a mango and passionfruit ice cream swirl, and a layer of mango and passionfruit sauce – all encased in white cracking chocolate combined with crispy coconut pieces.

Magnum Double Starchaser features a doubleswirled popcorn flavour ice cream and caramel ice cream, encased in a caramel sauce, and coated in cracking milk chocolate with caramelised corn pieces.

Both are available in multipacks of three (RSP £3.99), pint tubs (RSP £3.99) and singles (RSP £2).

Magnum is backing their launch with its biggest marketing campaign to date, kicking off in April and live throughout the key summer months.

Passionfruit Soda Rapscallion

Glasgow-based soft drink producer Rapscallion has launched the latest in its X_series range of sodas, X_03 Passionfruit. Launched as a pop-up in 2016, Rapscallion uses fresh, natural ingredients to create sustainable, vegan, organic and low-sugar soft drinks. Previous X_series flavours include Blueberry, Bramble and Pina Colada. For trade enquiries, retailers should visit the Rapscallion website.

Also new for 2023, the Mini Double Caramel

Multipack Collection pairs Magnum’s Gold Caramel Billionaire with its first-ever Caramel Almond product. The Mini Caramel Almond flavour offers vanilla ice cream and salted caramel sauce, encased in Magnum’s cracking chocolate with caramelised almond inclusions.

The Magnum Mini Caramel Collection is available in multipacks of six with an RSP of £4.50.

Rounding off the new launches is plant-based Vegan Raspberry Swirl. This contains a raspberry ice cream with swirls of raspberry sauce, dipped in cracking Magnum Vegan chocolate. It comes in multipacks of three, RSP £3.99.

Own-label confectionery Spar Brand

Spar has added five new own-label lines to its confectionery range. Yummy Bears, Sour Gummy Mix and vegan-friendly Giant Strawberries are all available in 140g packs with an RSP of £1.20. They are joined by Tilly the Turtle Fruit Jellies (60g, RSP 59p) and Sour Flames (55g, RSP 59p). The launch is supported with in-store POS. All are packaged in a new design, which takes inspiration from traditional sweet shop-style stripes.

Limited-edition Soy Sauce Kikkoman

Kikkoman has unveiled the fourth limited edition of its 150ml dispenser bottle, with around 400,000 available from this month with a ‘Momiji’ theme. Momiji means red-tinted maple leaves in Japanese. A branch of golden Japanese maple leaves over a deep-golden bridge is said to symbolise the binding of cultures, people and tastes while the moon reflected in the water represents the wonder of nature.

Fruittella Curiosities

Perfetti Van Melle

Fruittella’s expansion into the jellies market sees two new interactive variants – ‘By the Sea’ and ‘In the Snow’ – let shoppers explore far-flung worlds. Available now in 110g packs with a £1.50 RSP, the jellies are made with 30% reduced sugar, real fruit juice, and natural colourings and flavours. The backs of packs offer fun animal facts and a QR code to further information and an AR creature creator.

Cadbury Dairy Milk Chunky Egg / Oreo White Egg

Mondelez

Cadbury has launched two brandnew shell eggs for Easter 2023. The new Cadbury Dairy Milk Chunky Egg (400g, RSP £12) has an extra thick shell while the Cadbury Oreo White Egg (499g, RSP £12) has a creamy white chocolate shell with crunchy Oreo biscuit pieces included inside. Both are available to order now.

Puff Box

JAC Vapour

This new pod device offers disposable vape users a cheaper alternative whilst limiting the environmental impact of disposable vaping. It launches in three device colours – Brilliant White, Totally Teal and Vibrant Yellow – and comes with one pod included, providing up to 650 puffs for £5.99. Packs of two refills (RSP £5.49) come in six flavours: Pink Lemonade, Sunleaf Tobacco, Ki Berry Cool, Wings Blast, Mango Ice and Absolute Menthol.

Mr Kipling Deliciously Good Hot Cross Pies

Premier Foods

Mr Kipling has expanded its HFSScompliant Deliciously Good range with new Hot Cross Pies, which take on the popular sweet and spiced flavours of Easter, reinvented in a pie format. The limited-edition product will be available by w/c 27 February as a pack of six, RSP £1.75.

Tastes like chicken

Quorn has kicked off 2023 with a brand-new marketing campaign, designed to show Britain’s poultry fans that its products taste just as good as chicken. The So Tasty campaign is set to reach millions of consumers across multiple platforms including TV, video on demand, online video, digital, social, public relations and mass sampling.

Noisy mealtimes

Running to the end of March, ‘Sound of Connection’ is the latest campaign in Old El Paso’s ‘Make Some Noise’ creative platform. A new TV ad aims to show that eating Old El Paso refocuses attention on the dinner table, as “you can’t be on your phone when both hands are holding a fajita”. It is complemented by a mix of activities across other channels.

Cut-price cookbook

Weetabix has created a free digital recipe book of meals that cost around 80p per serving. The book is supported by a £2m spend across TV, YouTube and video-ondemand. Additional consumer activity includes in-store media and POS investment, as well as social media, where influencers will demonstrate selected recipes.

Fuel of chocolate

21 Seeds & Grains Thin Bagels

Warburtons

The fourth product in the brand’s Thin Bagel range, Seeds & Grains

Thin Bagels has an RSP of £1.79 for a four-pack. The pre-sliced bagels include sunflower seeds, brown linseed, jumbo oats, malted rye flakes, sesame seeds and more. They are boiled then baked, are a source of fibre, and come in at 147 calories each.

Smint Defensive Perfetti Van Melle

Launched in response to a growing consumer demand for immuneenhancing products, Smint Defensive contains zinc alongside vitamins C and B6, to support the immune system and contribute to the reduction of tiredness and fatigue. The sugar-free peppermint lozenges are available in a widely recyclable 18-piece flip-top box, RSP £1.

Cadbury Dairy Milk’s latest advert, ‘Garage,’ is set in a forecourt convenience store and tells the story of a young woman working late at night when a customer ‘accidentally’ leaves behind a bar of Dairy Milk he’s paid for. The advert falls under Cadbury Dairy Milk’s ‘Generosity’ brand platform, which is now entering its fourth year.

Puft with pride

KP Snacks has launched ‘Hula Licious, Hula Lightful,’ a new £1m campaign for Hula Hoops Puft. The campaign will run for six months across multiple channels including radio, video-on-demand and out-of-home advertising. The strapline focuses on the 72-calories-per-pack product’s taste and healthier snacking credentials.

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

FIZZ UP

TOP TIPS TO DRIVE SALES FROM RED BULL

Q Arrange your soft drinks fixture by shopper need states, depending on whether consumers are looking for a treat or something more functional.

Q Ensure you provide the appropriate space to sales for your range, by looking at both value sales and unit sales. Sports and energy have a combined 35% share of the category, so should equate to 35% of the fixture.

Q Less is more when it comes to offering the right range. Ensure adequate supply of the SKUs that drive 80% of your category sales value.

Q Visibility is key to helping your shoppers find what they need quickly:

Q Use hero brands to signpost the category;

Q Place bestselling SKUs at eye level;

Q Block brands together to help them stand out on shelf;

Q Shoppers can only see products within a 1.3m breadth, so merchandise similar products vertically.

Q Displaying products in multiple locations is a proven way to increase soft drink sales, for example in the chiller or by the till point for impulse purchases and at the gondola end or a dedicated display for takehome.

Sdriving categories and have continued to perform well in the post-pandemic recovery period.

According to Nielsen, the category was up 9.5% in value in the week ending on 24 December 2022, with sports and energy driving the market, worth £1.9bn (up 15.7%), according to Nielsen. “As shoppers spend less on non-essential items, such as alcohol and tobacco, so drinks continue to play an important role in customers’ repertoire,” Red Bull tells SLR.

“Potentially as an alternative or simply a fundamental item, they are not willing to compromise, despite cutting back in other areas.”

As you might expect, own label is outperforming brands across most categories due to the cost-ofliving crisis, but so drinks are the exception. In fact, spending on branded so drinks is 36% higher than own label, rather than reverting to own label to save money as in other categories.

“Red Bull also had a fantastic year, growing ahead of the category at +15.3% to a value of £576m. Within Scottish Impulse so drinks growth is +8.7%, sports & energy at +10.7% and Red Bull at +12.6%,” Red Bull adds.

Energy drinks are not the only winners in the channel, though. “We managed to maintain strong sales during lockdown with multipacks performing well, alongside people grabbing a treat to enjoy at home,” Dan Chesbrough, UK Sales Director at FrieslandCampina, says. “With more consumption occasions at home, consumers are bene tting from a better price per litre and switched into bigger pack formats. Changes in occasions have led to take-home packs gaining share of shelf in the market and this is happening across all major subcategories, including key market areas such as premium and iced co ee.”

FAITH IN FLAVOURS

“Flavours are key to helping drive the growth of sports and energy, and the area which sees the most innovation, as shoppers look for variety,” Red Bull notes.

“As a result, avoured sports and energy drinks are up +21.9% YoY vs un avoured at +10.7%, with tropical avours a core opportunity, growing 22.5% vs mainstream avours at 14.5%.”

Flavours are a key driver across the category, with cola avours growing faster than standard cola over 2021 (+12%).

“Flavours in energy now account for 38% of stimulation sales and have increased 48% vs. 2020, showing us that there’s a signi cant thirst for a range of avour variants to suit all tastes,” according to Adrian Hipkiss, Marketing and International Business Director at Boost Drinks.

Brands are ramping up innovation and investment in new avours to try and capture demand, with Red Bull regularly rotating avours and introducing new limited-edition variants.

“Red Bull Editions have in fact grown +81% shoppers incrementally YoY and our latest Red Bull Apricot Edition, which launched early last year, has since become our most successful NPD, worth £6.4m YTD and is now a permanent SKU in the portfolio,” Red Bull adds.

Despite cash-strapped customers cutting back on a range of non-essential products, the soft drink category continues to provide growth for retailers.

EYES ON THE PRICE

BY GAELLE WALKER

MOMENT OF CHANGE

The Scandinavian Tobacco Group UK has redesigned its value for money (VFM) Moments brand as it seeks to shift from a ‘value, yet quality’ to ‘value and quality’ message.

The entire Moments range has been rejuvenated with a modern design which STG says brings “added personality to the brand”.

The new modern pack design can be seen now on packs of Moments Blue and Moments Original, with packs of Moments Panatella following closely behind in May.

The new packs feature a bigger, more simplified logo and fresher colour scheme with the wisp of smoke extended, which will all combine to increase shelf stand-out and particularly appeal to younger adult smokers.

As the cost-of-living crisis deepens, the year ahead could present a number of new and heightened challenges for Scottish tobacco retailers.

e buying habits of even the most loyal of adult smokers could well shi as pursestrings are tightened, making it crucial for retailers to keep up to date with local trends and ensure that their range meets demand.

e illicit trade could also pose additional challenges for law-abiding retailers, as under-

pressure smokers seek out cheaper black market alternatives.

One thing is certain though: the trend towards value-priced tobacco will grow in 2023 as adult smokers seek out the brands which o er them the lowest price for their hard-earned pounds.

“Now more than ever, value tobacco is a key trend,” JTI’s Marketing Director Mark McGuinness says.

JTI recently re-positioned its Sovereign Blue brand, including King Size, Superkings and Sky

As cost pressures increase, adult smokers will be looking to achieve even greater value for money in the tobacco category.

The value of tobacco in the UK totalled £14.8bn in 2022. IRi Market Place, MAT 09/10/22

The total value of the cigar market in the UK is approximately £288m

IRi Market Place, MAT 09/10/22

SMOKING RATES CONTINUE TO FALL IN SCOTLAND

Smoking rates in Scotland have continued to fall, with 11% of adults identifying as current smokers in 2021, down from 17% in 2019, the most recent edition of The Scottish Health Survey reveals.

The figure represents “a substantial decline” since 2003, when the survey began and when 28% of adults identified as ‘current smokers’.

Twelve per cent of men and 11% of women identified as smokers, down from 16% and 19% respectively in 2019.

Smoking prevalence was highest among those aged 45-54 at 16%, followed by 35–44-year-olds at 13%.

Prevalence was lowest among those aged 75 and up, at 5%.

Current smokers were smoking an average of 10.5 cigarettes per day in 2021.

In 2021, smoking prevalence continued to be higher among adults living in more deprived areas than among those living in less deprived areas (24% and 5% respectively).

Source: The Scottish Health Survey 2021

The Ready Made Cigarette (RMC) market accounted for £10.4bn in 2022

IRi Market Place, MAT 09/10/22

Blue King Size to align with its ultra-value o erings as part of a pricing restructure across its Conventional Tobacco Products portfolio.

With price a key consideration for existing adult smokers when deciding which brand to purchase, Sovereign Blue’s RSP has changed to £10.65 – where it joins Kensitas Club as part of JTI’s ultra-value range.

“Price is an important purchasing factor for existing adult smokers and 80.5% of all sales volumes are currently in the value or ultra-value Ready Made Cigarette and Roll Your Own sector,” McGuinness adds.

And the trend towards value for money options will certainly not be limited to the cigarette and RYO categories.

CIGARS

7.1 million kilograms of rolling tobacco were sold in the UK in 2022.

IRi Market Place, MAT 09/10/22

“We’ve brought Sovereign Blue in line with our other ultra-value options to provide more choice of well-known brands to consumers at this end of the market. Shoppers will still receive the same high-quality Sovereign Blue product, whilst retailers can maximise the sales opportunity by o ering this heritage brand at a new value RRP.”

As STG’s UK Marketing Manager Nataly Scarpetta explains: “Now, more than ever, it is important for retailers to o er their customers a range of credible value options across the store, as the current cost of living crisis continues to put pressure on households and forces consumers to make di cult decisions on what they can a ord to purchase.

to make just

STG has just re-designed its Moments range of value for money cigars in a bid to better highlight the brand’s ‘value and quality’ message to adult smokers.

“We’re really excited to launch our new look Moments range which we’re con dent will appeal to those adult smokers looking for a high-quality valuefor-money cigar,” Scarpetta, says.

AFFORDABILITY WILL BE KEY FOR ADULT SMOKERS IN 2023

UK retailers say affordability will be the “most important consideration” for adult smokers choosing smoke-free alternatives in 2023, a new survey carried out on behalf of Philip Morris Limited (PML) reveals.

Over half (57%) of all UK retailers believe smokers switching to alternatives in 2023 will purchase the cheapest products available, followed by those offering the best value for money (18%).

Smoke-free alternatives that offered the widest taste range available (10%) and those offering convenience and ease (5%) ranked third and fourth, respectively.

Asked what may prevent smokers from choosing a smoke-free product this year, price again was a factor with six in 10 retailers concerned that alternatives may be too expensive.

Despite this, over two-thirds (68%) agree that smokers will use smoke-free products as a better alternative in 2023.

Over half (56%) of the 250 convenience retailers interviewed for the survey said that they already stocked heat-not-burn products.

Kate O’Dowd, Head of Commercial Planning at PML in the UK and Ireland, said: “With the average price of cigarettes now £12.73 per pack, the data shows that retailers have listened to what customers have told them and stocked a range of smoke-free alternatives that are affordable and more importantly, a better choice than continuing to smoke.”

“Historically Moments has under-traded in the convenience channel so we’d really encourage those retailers who don’t stock it to consider doing so, as many of your customers will be looking to down-trade to cheaper options,” she adds.

HEATED TOBACCO

Cost pressures could also make 2023 a de ning year for the UK’s growing smoke-free category, as Kate O’Dowd, Head of Commercial Planning at PML in the UK and Ireland O’Dowd explains: “2023 will be the year of the multi-category, whereby retailers should o er a ordable smokefree choices that don’t compromise on taste, quality, or satisfaction for the user.

“With HEETS tobacco sticks costing less than half the price of an average pack of cigarettes, IQOS Originals Duo o ers customers a real tobacco alternative and cigarette-like satisfaction, at a fraction of the price of smoking.

“From the race to switch adult smokers to alternative products between convenience retailers and large multiples, to the speed by which manufacturers and their brands are developing and commercialising the most innovative products to meet growing demand –everyone, it seems, is feeling the heat.”

SCOTLAND’S RECORDBREAKING TOBACCO DOG SNIFFS OUT MORE ILLICIT SMOKES

Scotland’s premier sniffer dog Boo has continued his pawtest against Scotland’s illicit tobacco trade by sniffing out a further haul of illicit cigarettes from an Ayr convenience store earlier this month.

The crime-fighting canine helped to seize 128 packets of illicit cigarettes worth £1,632 and a number of pouches of rolling tobacco worth around £789 from the store, which had been reported by members of the public.

It comes after Boo sniffed out around 200,000 counterfeit cigarettes from stores across Glasgow in late 2022.

He also uncovered £1,500 of fake tobacco from a store in Perth in September.

In July, Boo set a record for the most illegal cigarettes seized by a trading standards team in Scotland, when he uncovered 447,000 cigarettes, worth an estimated £134,000 from three premises in Kilmarnock.

YOUR NEW FAVOURITES YOUR NEW FAVOURITES

Green

HIT REFRESH STOCK UP NOW

It’s an offence to sell tobacco to persons under 18 years old. For tobacco trade use only. Not to be left within sight of consumers.

FOCUS ON

value

PMPs could be a key growth driver this year as inflation bites and consumer spending stalls.

BY ELENA DIMAMA

KENTON BURCHELL, TRADING DIRECTOR AT BESTWAY WHOLESALE WHAT WOULD YOU SAY TO RETAILERS WHO ARE CONCERNED ABOUT MARGINS?

Q Retailers will need to review their margins and their products so they can balance their books.

Q Cross merchandise products together with PMPs and other categories for impulse and top-up shopper missions to increase sales.

Q Focus on the bestselling lines of PMPs with regular stock to meet customer demand.

Q Review the basket spend of shoppers and store inventory to ensure that ‘must stock’ line products are available to customers to help increase sales margins.

The impact of in ation is being felt across the convenience channel and value for money could place snacks and drinks in price-marked packs (PMPs) in a very strong retail position.

A recent Tayto survey found that 95% of consumers said they were concerned by the cost and availability of groceries; in separate research by Plum Ideas Marketing Communications Agency, 57% of independent retailers said PMP Snacks were more important than ever. Furthermore, a h of shoppers said they would choose a particular convenience store if they knew it stocked PMP products, according to Lumina, while a Mondelez study found that 56% of retailers said they have been selling more PMPs during recent times.

THE BIG PICTURE

For the crisps and snacks category, PMP sharing is the biggest segment, accounting for 51% of crisps, snacks and nuts sales – and is growing by 9%, Kenton Burchell, Trading Director at Bestway Wholesale, tells SLR.

“PMPs give consumers the con dence to know that they are paying the recommended price and so the price is not seen as manipulated,” he notes. “[ ey] give the consumer the impression that they are getting value for their money.

“At Bestway, we advise our retailers under our category tools to consider PMPs for shoppers in this category to drive shopper satisfaction.”

SNACKS GALORE

“Convenience shoppers worry that they will pay more for shopping locally and PMPs give them the con dence they are getting good value,” Matt Smith, Marketing Director for Tayto Group tells SLR. “ at’s why over half the snacks sales in Scottish convenience stores are PMPs.

“Having surveyed both retailers and consumers, it was clear how important the £1 price point is. In the current climate, consumers are feeling the pinch and independent retailers need to showcase great value for money.

“Instead of raising the headline price of our £1 PMPs, we’ve decided to stick to £1. Our new range is rolling out now and shows how much we believe in Golden Wonder’s great branded value.”

BelVita has also introduced a new pricemarked multipack format on its Honey & Nut avour. “As part of the brand’s aim to attract new shoppers and help add value to the category, the new belVita Honey & Nut PMP taps into the healthier multipack space within the convenience channel and communicates value to price-conscious shoppers,” Susan Nash,

Trade Communications Manager at Mondelez International explains.

“Adding a PMP format is certainly set to help retailers bene t from this success even further. BelVita Honey & Nut PMP will be available at a price mark of £1.49, in a convenient multipack format that will help drive sales within both the breakfast and food-to-go occasions.”

Meanwhile, Swizzels has introduced increases to its range of price-marked packs for the rst time in its history. Before introducing the changes, the company partnered with e Fed to conduct research among retailers to gauge their views about the future of PMPs.

“ e research proved invaluable and revealed that 74% of independent retailers view PMPs as extremely important to their business, not least because they are a tangible symbol of value to customers,” Mark Walker, Sales Director at Swizzels, explains. “Of the retailers we surveyed, 44% said that the majority of suppliers across all categories had already moved above the £1 PMP. In fact, 75% stated that they saw slightly higher sales or no change, proving that moving above the £1 PMP is a low-risk move.

“We also discovered that 60% of retailers were comfortable stocking a higher priced PMP, provided their margins were protected.”

Walker adds: “We have thought long and hard about the next steps in the £1 PMP evolution. In order to protect, and in some cases, increase retailers’ and wholesalers’ margins, we have taken the decision to break the £1 hanging bag PMP on sugar confectionery.”

e new range has a PMP of £1.15, which is starting to appear in wholesalers now.

Focusing on its PMP options is also key to Perfetti Van Melle, which has seen sales of its Fruittella £1 PMP Juicy Chews grow by 15.1% in the week ending on 29 January, along with its Fruittella £1 PMP Duo Stix, which was up by 15.4% for the same period.

“Whilst there is sometimes concern about the impact of PMPs on pro t margins, the allure of a PMP will help to increase impulse purchases,

encourage repeat custom and ultimately drive stock through more quickly,” Mark Roberts, Marketing & Trade Marketing Director at Perfetti Van Melle, says.

SOFT DRINKS GAIN

PMPs also play a strong role in the so drinks channel, as consumers navigate the cost-ofliving crisis. According to Lumina Intelligence, one-in-three shoppers are more likely to buy so drinks in a PMP. “Consumers are looking to make their money stretch as far as possible for them and as part of this, we expect to see smaller transactions and smaller pack sizes come into play,” Ben Parker, Retail Commercial Director at Britvic, explains. “However, we also expect to see growth in at-home family dining and athome socialising, both of which are important occasions for so drinks.”

Britvic o ers Pepsi Max in six-pack PMPs, along with Robinsons at 900ml PMP bottle, for £1.49. For shoppers looking for on-the-go solutions, Robinsons ready to drink is also available in a 500ml bottle with a £1 price mark, helping to drive impulse sales. Furthermore, on a selection of its core PMP lines – including the 500ml formats of Pepsi Max, Lipton Ice Tea and Fruit Shoot – the company will look to increase the price mark in line with in ationary pressures, as well as the POR, to create more shared margin and a “stronger translation to cash margin”.

Parker notes: “ is is as a result of recognising the importance of listening to retailers, as part of our role as a responsible trade partner, ensuring we re ect the challenges in the market at that moment.”

TAYTO GROUP

PMPs are essential to maximise snacks sales and retailers should have a range that covers key price-points:

Entry-point: where value for money is essential – especially for pocket-money lunchtime treats

Impulse: a core range as food-to-go occasions and lunchtime snacks recover £1 Sharing: demands a big focus as the largest and fastest growing segment

e so drinks channel can also bolster sales with the energy drinks o ering in PMP format. “Sports & energy is a key sector for price-marked packs, delivering £56.3m in value growth YOY, +9.3%,” Red Bull says. “Within so drinks, sports & energy contributes to over a h of total PMP performance (+21%), and Red Bull delivers more than half (53%) of sports & energy PMP growth, adding £29.5m in value, +17.0% vs YA.”

“Red Bull Energy Drink 250ml is the bestselling PMP SKU in sports & energy, worth £67.8m and drives the highest demand in Red Bull’s portfolio and Energy Drink 355ml and 473ml are the top two fastest growing PMP SKUs in sports and energy, +£8.9m (+24.0%) and +£7.4m (+18.0%) respectively,” it adds.

TOP TIPS TO MAXIMISE SALES BY BRITVIC

Category merchandising is the key to success for chillers – there are eight macro categories which shoppers use to navigate chillers that retailers should cover: carbs, sports & energy, water, juice drinks & ice tea, kids, health & wellness, dairy & protein and iced coffee.

Ensure a wider range of flavours are available across flavoured carbs, cola and juice drinks. Taste and enjoyment is the number one reason to purchase a single-serve soft drink within all segments but is particularly elevated for these three categories.

ALL OUR SHARING PACKS ARE STAYING AT £1

THINK CRAFTY, THINK CRAFT

BY ELENA DIMAMA

Beer and cider enjoyed a welcome boost in the nal quarter of year, as a result of the Fifa World Cup taking place just a few weeks before Christmas.

According to Kantar Worldpanel, beer was the only alcohol category in growth (+1.8%) year-on-year over the same period. However, the trend seems to be slowing slightly, as price increases and in ation start to bite, with total beer down in value per moving annual total.

However, cra beer seems to be helping the category stay on a more positive note.

“When we look at Cra Beer the category has declined at a slower rate (-10%) than Total Beer (-12.3%), taking its overall market share to 6.6% (+0.2% vs YA),”

Miriam ompson, O -Trade Category Marketing Executive for BrewDog, said. “And at a brand level, BrewDog is outperforming Total Cra at -4.9% vs -14.7%, taking its share to 50%.”

Cra beer has also enjoyed distribution growth in the total impulse channel, up 0.5%, taking its share to 65%, with the brand’s Hazy Jane, Lost Lager and BrewDog’s Mixed multipack entering the top 10 cra beer SKUs in the last quarter – achieving £500,000 more in value sales (up 26.9%).

SCOTTISH WIN

Cra beer is performing well in the impulse market in Scotland, up 5.8% vs total beer in value year-onyear, according to Nielsen.

What’s more, Scotland overindexes for cra beer compared

to other areas of the UK, meaning a big opportunity for Scottish retailers to boost sales.

“BrewDog brands have also had a great year in Scottish impulse, particularly Lost Lager which is up +38% amid a declining lager category (Value vs YA),” ompson adds.

“Punk IPA is now the #1 cra beer in Scotland up +3.6% vs YA overtaking the previous leader, and Hazy Jane is also +24.9% vs YA.”

THE PREMIUM ADVANTAGE

Premium beers are also an area of opportunity for the convenience market, as consumers seem willing to spend more to treat themselves to better quality beer and cider options.

“At KBE, we recently surveyed over 400 lager drinkers and a third of them said that the key factor in choosing a brand of lager in a pub is that they are looking for ‘something new and di erent’,” says John Price, Head of Marketing at KBE Drinks.

“ ese drinkers are not currently being looked a er in the ‘Premium 4%’ segment, as there’s been much less NPD than in ‘World Lager’, and this is why we repositioned our King sher brand last summer to exactly meet this consumer need.

“Obviously, King sher isn’t new, having been around in the UK since the 1970s, but it is novel to the o -trade, with a crisp and easy-drinking taste that consumers already love, and at 4.3% it meets the needs of this segment.”

Quality is also a key trend observed by Brewdog. “We know

quality (66%), taste (50%) and range (45%) are the top drivers to purchasing BrewDog, with Well Priced at 29%,” ompson notes. “We expect these to remain a priority as consumer behaviour changes and they cut back in other areas of their lives, reducing overall store spend in-store.”

COUNTING ON MULTI-PACKS

With the cost-of-living crisis showing no signs of easing, shoppers are expected to look for alternative, more cost-e ective formats. Multipacks can once more

come to the rescue, being already a key growth driver for the category.

“To succeed during this time, the focus needs to be on the format. At BrewDog, we have a full range of pack sizes from 4-packs through to 12-packs, enabling us to meet all shoppers’ needs and t all budgets,” ompson explains. “Our BrewDog Mixed Packs have also been an important recruitment tool for the category. Our research shows that 50% of rst-time purchases come from multi-packs, and larger mixed formats signi cantly over-index with rst-time buyers.”

CARLING TEAMS UP WITH EMIRATES FA CUP AND VITALITY WOMEN’S FA CUP

Carling has become the official beer partner to the Emirates FA Cup and Vitality Women’s FA Cup.

The deal, which will run until at least 2025, will see Carling roll out promotional activity throughout the remainder of this season’s games.

“The FA Cup spans every level of the game, from non-league to Premier League, and we’re delighted to be supporting both the men’s and women’s competitions,” Lee Willett, Carling Brand Director at Molson Coors Beverage Company, said.

Beer and cider continue to act as a cornerstone to the convenience market, with craft beer in particular giving the category a boost.

CRAFT BEER BRAND

WE’RE

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C’MOAN, GET AFF!

Under The Counter, like any right-thinking person, despises both practical jokes and practical jokers. Back in the day, he had recurring nightmares about being stuck in a lift with Jeremy Beadle.

However, the Auld Boy had to force his falsers into a semblance of a smile when the BBC’s live coverage of an FA cup fixture between Wolves and Liverpool was disrupted by what has variously been described as “sexual noises”, “a woman’s loud moaning” and “the sounds of pornography”.

As everyone knows by now, a studio-bound Gary Lineker was attempting to talk to Alan Shearer in the commentary gantry when the sounds of pornography started blaring out in the background. The X-rated noises were later found to be coming (no pun intended) from a mobile phone that looked even older than UTC and had been stuck to the back of the studio’s wall; a ‘strap-on,’ as BBC Sport’s Kelly Cates called it.

The cunning stunt, which made headlines around the world, was the work of the YouTube generation’s very own Jeremy Beadle, socalled “notorious prankster” Dan Jarvis.

It also marked a first for the UTC household. Whenever Lineker normally appears on the Auld Boy’s box, Under The Counter himself supplies all the moaning. Usually along the lines of “Get that overpaid crisp flogger aff my telly!”

GIE’S A BREAK

Endlessly fascinated with both horseracing and human malaise, Under The Counter likes to spend his tea breaks placing online bets and stoking his raging hypochondria.

So, after sticking 50p each way on Hoof Hearted in the 3.30 at Catterick, he recently found himself browsing articles on the British Medical Journal website. Blithely ignoring the “intended for healthcare professionals” message, the Auld Boy was about to get stuck into some light reading on ‘Alcohol related disorders among elite male football players in Sweden’ when his myopic eyes alighted on ‘Direct Uptake of Nutrition and Caffeine Study (DUNCS): a biscuitbased comparative study’.

For the one or two nonhealthcare professionals among SLR’s readership, this paper attempts to answer the age-old question of which biscuit is best for dunking into a cup of tea. Yes, really.

The study’s authors compared the relative merits of the Hobnob, Rich Tea, Digestive and Shortbread Round on their ability to both soak up liquid and not fall to bits.

Their conclusion: the humble Hobnob emerged victorious, trailed by the Digestive and Shortie. Disappointingly for UTC, his dunker of the choice the Rich Tea limped home – just like Hoof Hearted – in last place. This despite the biscuit’s superior ability to soak up liquid.

Unfortunately, it transpired that the Rich Tea, much like the Auld Boy on learning the Catterick result, reached its breaking point far too quickly.

THE BEST PART OF BREAKING UP

If you’re reading this, congratulations – you made it through January.

Depending on just how your boat floats, the first month of the year can be a veritable Olympicsized running track of hurdles. There’s Dry January, Veganuary, Blue Monday, Lunar New Year and Burns Night. And let’s not forget paying for Christmas presents that – because a jolly old man in a red suit supplied for free – your children feel no need to express any gratitude for.

Speaking of old men, although “jolly” is an adjective too far, Under The Counter has uncovered – courtesy of ParcelHero – something else that happens every January but goes largely unnoticed. Namely, the vast number of unwanted gifts that get sent back once the festive fairy dust has settled.

And there’s heartbreak behind many of these returns, according to the courier firm. It reckons as many as 3.1 million Brits sent stuff back last month because they split with their partner after buying them a Christmas present but before 25 December. More couples break up in the two weeks before Christmas than at any other time of year, as UTC informed his uninterested co-workers.

This sad statistic did not, of course, bring a tear to the Auld Boy’s jaundiced eye.

Paraphrasing his favourite 60s girl group, The Ronettes, he tunelessly warbled: “The best part of breaking up is… not having to fork out on a bottle of Anaïs Anaïs at Christmas time.” Or ‘Anus Anus’ as he uncouthly pronounced it.

Northern Ireland. Bringing our award-winning food and drink to Scothot 2023.

Scottish trade buyers are no stranger to the broad range and high quality of food and drink from Northern Ireland. From exceptional everyday staples to specialist artisan treats, Northern Ireland producers have products to boost your sales and inspire your customers. Flexibility, innovation, and strong customer relationships are at the heart of our industry. Northern Ireland’s long-established and largely family-owned companies are well positioned for continued growth. Committed to using quality, often locally produced ingredients, provenance, and outstanding flavour are guaranteed.

Visit us at Scothot in Glasgow 8-9 March, stand 750. For further information contact Michelle Charrington

E: michelle.charrington@investni.com

Northern Ireland. Altogether more.

We work with local producers to help identify new trends,bring forward innovative products and grow their business.

✓ Built around a retailer, not a computer user

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Benefits of MPos

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✓ Developed and supported by people that know the retail trade