SLR April 2016 by 55 North

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APRIL 2016 | ISSUE 153

FUELLING THE NEXT GENERATION

Dennis and Linda Williams’ latest community involvement masterstroke sees them providing healthy breakfasts for 400 local kids.

MAKING THE MOST OF SPORT

New research shows how to cash in on sporting events

E-CIGS PLAN

Winning with e-cigs

LOW SUGAR SUCCESS

High profit, low sugar

THE POWER OF ‘BIDS’

Kirkcaldy high on BIDs

Full SLR Rewards 2016 shortlist inside! Cover.indd 1

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SOUTH COAST

Across the country youâ&#x20AC;&#x2122;re never far away from a GroceryAid event.

SOUTH WEST

Wherever you travel, we are making life better for grocery people in need. From factory to store we help everyone. To join us or get involved call 01252 875925, email events@groceryaid.org.uk or visit www.groceryaid.org.uk

THAMES VALLEY

Real lives. Real problems. Real help. NORTHERN IRELAND

MIDLANDS

NORTH EAST AND YORK

EAST ANGLIA

NORTHERN

SCOTLAND

GroceryAid

@groceryaid

GroceryAid is the trading name of the National Grocers Benevolent Fund. A registered Charity Reg. No 1095897 (England & Wales) & SCO39255 (Scotland). A company limited by guarantee, registered in England & Wales no 4620683

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April 2016

Contents

Contents ISSUE 153

NEWS P6 P7

P10

P11 P18

P20

‘Adults only ‘e-cig’ law passed E-cigarettes are to become restricted, following the passing of the Health Bill. Calls for shop workers to be given more protection The SGF calls for the Government to give shop workers the same legal protections as emergency service workers. KP Snacks unveils a new retailers’ forum New Snack Partners Ambassadors Forum works with customers in the sector to grow the Crisps, Snacks and Nuts category. Chancellor announces tax on sugary drinks In a move that will come as no surprise to SLR readers, Chancellor George Osborne has introduced a sugar tax on soft drinks. Co-op price drop announcement The Co-op has revealed a multi-million pound raft of price cuts that it says will save customers over £125 a year. News Extra Rates hikes ‘holding back’ retail industry Business rates in Scotland are set to increase this month. Product News AG Barr announced as Official Soft Drinks Partner of the SSE Hydro, and M&M’s mixes things up with new limited edition sharing pack. Off-trade News A taxation survey reveals beer is too dear, and Beam Suntory’s new deal with Catalyst Brands.

INSIDE BUSINESS P22 Market Research Sporting events in 2016 New research demonstrates the positive effect that major sporting events can have on profits. P28 2016 Rewards Shortlist Unveiled The shortlist for this year’s SLR Rewards in full P26 BIG GIVEAWAY! Your annual opportunity to win a mountain of stock! P30 Profile Bill Harvie discusses how Kirkcaldy has benefitted from a ‘BID’ levy paid for by local businesses. P32 2015 Rewards Technology Calum Duncan reports back on his trip to the Retail Tech Expo in London. P33 2015 Rewards Bread Joanna Giacopazzi shares her experiences of the Michelin-starred Peat Inn in Fife. P34 Woodlands Local All the latest from SLR’s own store. P44 Hotlines Twix spread, and new Galaxy duet flavour.

FEATURES P40 Tobacco With just over a year till EUTPD2 hits retailers, we outline what will happen and when. P50 E-cigs One of the biggest opportunities in the business, e-cigs is becoming a hugely important category. P54 Big Night In Having a dedicated BNI feature should be part of any good c-store. P60 Low Sugar The lower sugar drinks trend continues. P64 Water Keep bottled water sales up by maintaining the strongest possible range and knowing what products will sell. P68 Young Adult Brands With high levels of disposable income, the 18-30 age bracket is key to the sales of a huge number of brands. www.slrmag.co.uk

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ON THE COVER P14 Dennis and Linda Williams from Broadway Premier convenience store in Edinburgh are working directly with local schools to promote and encourage healthy eating.

APRIL 2016 | SLR

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News

One Stop’s ninth Scottish franchise opens One Stop’s ninth store to start trading in Scotland, Alva, opened on 1st April in a fully redeveloped former bank. Along with a face painter, food provided for guests and goody bags for the first 50 customers, franchisees Wasim and Farrah had Keith Brown MSP, constituency MSP for Clackmannanshire and Dunblane, open the store with them and cut the ribbon.

Big Issue founder to address SWA conference Social entrepreneur and parliamentarian Lord John Bird will be the keynote speaker at the 2016 Scottish Wholesale Association Annual Conference. Lord Bird, 70, who was brought up in an orphanage and served time in a young offenders’ institution before sleeping rough on the streets of London, founded the Big Issue magazine in 1991. Lord Bird of Notting Hill will be the guest speaker closing the final business session of the conference, taking place at Crieff Hydro in Perthshire from 10th to 12th June.

Fife brothers notch up third store Brothers Asmat and Usman Saleem have opened their third site in Fife, launching a new premium-branded Costcutter in Kelty. The new store features

E-CIGARETTES New age restrictions to be put in place

‘Adults only’ e-cig law passed E-cigarettes are to become age restricted, following the Scottish Parliament’s passing of the Health (tobacco, nicotine and care) Bill. The new legislation also means that retailers will be required to have an age verification policy for these products in place and proxy purchase will become an offence. The provisions of the bill are likely to come into force towards the end of 2016. This means that retailers

will have yet more compliance requirements at a time when the effects of plain packaging legislation and the EU Tobacco Products Directive are beginning to hit home. SGF Head of Public Affairs John Lee said: “Whilst we have been supportive of most of the measure contained in the Bill it means that retailers will have yet more legislation to comply with in 2016. We are working with the Scottish government

to firm up on the exact timeframe for implementation of the measures in the Bill, some of which will require secondary legislation. We will also issue guidance to our members to enable them to comply and continue to sell tobacco and other products responsibly.” SGF has already issued comprehensive guidance to it members on standardised packaging and the EUTPD.

7.5 metres of chilled food, 2.5 metres of fresh produce, a bakery, food-to-go, an off-licence and Costa Coffee. Costcutter Kelty’s owner, Asmat Saleem, said: “We’ve got to really know the local community over the past 20 years and saw creating this new Costcutter store as a fantastic opportunity to draw in a new customer base.” As part of the launch, the store will be taking part in Costcutter Supermarkets Group’s Local Pride campaign to support local initiatives, with funds raised in the store going to Kelty Hearts junior football team.

PARLIAMENT SGF to launch manifesto at its ‘Big Debate’ event this month

SGF to launch manifesto The SGF will launch its manifesto for the 2016 Scottish parliament election at its ‘Big Debate’ event this month. SGF has taken a no-nonsense approach to emphasising the key issues facing the convenience store industry and lists the most effective solutions. The document is targeted at the MSPs who will be in Holyrood after 5th May. Issues addressed in the manifesto include the negative impact on retailers of a potential Deposit Return System,

the need for a government Minister to take direct responsibility for the illicit trade and the benefits of having a Cross Party Group in the Scottish Parliament on independent convenience stores. SGF Chief Executive Pete Cheema said: “We believe that all of the solutions to the problems we’ve highlighted can be achieved by MSPs in the next parliament. We will look to build a cross party consensus on tacking the issues affecting our industry.”

A key example of the consensus building Cheema thinks is required is to ensure that the small business bonus becomes a permanent form of relief within the business rates system – a proposal in the manifesto that SGF is calling on every party to support. The launch of the manifesto is the next step in a programme of political engagement that began in January with the parliamentary launch of the Scottish Local Shop Report.

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

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SLR | APRIL 2016

www.slrmag.co.uk

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News CRIME SGF calls for Government to give shopkeepers the same legal protections as emergency service workers

Call for shop workers to be given more protection

In 2015 92% of retailers experienced some form of shop theft. That was just one of the shocking statistics unveiled at the first ever SGF Retail Crime Seminar, which was held in Edinburgh on the 16th of February. The data came from the Scottish Grocers’ Federation retail crime survey and formed part of the SGF Retail Crime Report, which was launched at the event. The report was developed in partnership with the Scottish Business Resilience Centre and also contained a comprehensive guide to increasing security and preventing crime in-store. SGF’s crime survey also showed that most of the threatening and abusive incidents

towards staff were triggered either by a refusal of sale or requests for ID. Speakers at the conference stressed to retailers the importance of partnership working to reduce and deal effectively with in-store crime, while there were also sessions looking at cash security, preventing fraud, and combating cyber crime. The total cost of in-store crime to the participants in the SGF survey was more than £1.3m, while the average spend by convenience stores on crime prevention measures was almost £4,000. The seminar highlighted the case of Mohammed Jawed who was subjected to an horrifically violent attack in his Glasgow store in January. SGF issued a call for the Scottish government to bring forward legislation to give shop workers the same legal protections as emergency workers, which they currently do not have. SGF announced that this would be a key part of their manifesto for the forthcoming Scottish Parliament election. Also launched at the conference was the Standards Charter for Safer Business, developed by the SGF and SBRC and endorsed by Police Scotland. This was launched by Assistant

Chief Constable Kate Thomson (pictured) from Police Scotland. The Charter provides a step by step checklist for ensuring businesses reduce the opportunities for a crime to occur. A key theme of the seminar was the importance of partnership working to effectively deal with and reduce in-store crime. SGF Chief Executive Pete Cheema said: “We know how serious in-store crime can be so it’s vital that we work effectively with Police Scotland and the other key agencies to create a safe working environment for retailers. In store crime impacts on retailers, their staff, their families and on customers. That’s why we are calling on whichever party forms the next Scottish government to pass legislation to give shop workers the same protection as emergency workers.” Paul Wheelhouse MSP, the Scottish government Minister for Community Safety has requested that copies of the Crime Report and Standards Charter be sent to him in advance of a meeting with SGF to discuss how new legislation can be developed. Cheema added: “Shop workers are front line staff and are too often at the sharp end of violence and intimidation.”

Fundraising event sparkles for GroceryAid Seven hundred people from across the grocery industry gathered at the Hilton on Park Lane for GroceryAid’s prestigious annual Diamond Ball on 4th March. The evening was a huge success, raising more than £280,000, enabling the charity to support at least 187 beneficiaries in the coming 12 months. The Diamond Ball was attended by key industry figures with the welcome speech given by departing President of the Fundraising Committee, Jason Tarry, Chief Product Officer, Tesco. During the evening, GroceryAid recognised the contribution of volunteers who have given their time for at least ten years to help the charity in its work.

Glasgow is Bestway’s best It was a good night for Scotland at the recent Bestway Performance Awards, as Bestway Batleys Glasgow scooped the coveted Depot of the Year title. The depot’s General Manager Stevie Wilkie was delighted with the win, which rounded off a “landmark year”. A further two gongs headed north of the border. Bellevue Edinburgh was named Catering Branch of the Year following a “fantastic” 2015. The Own Label Branch of the Year title went to Batleys Cambuslang, awarded for the depot’s “sparkling performance” in recording significant double-digit growth in total own-label sales.

TECHNOLOGY A new click-and-collect service gives c-stores the chance to profit from the latest trend

CornerDrop seeks cornershops As click-and-collect becomes increasingly popular with internet shoppers, a new online venture is giving c-stores a chance to cash in on the trend. There will be over one billion parcels shipped this year and around half of online retailers do not yet offer a click-and-collect option. CornerDrop addresses this issue by allowing consumers to pick up their parcels from a convenient local location, and avoid the hassle of missed deliveries. The idea is similar to Amazon’s partnership with the Co-operative, where parcels are deposited in a bank of orange lockers on the shop floor for customers to collect. With CornerDrop however, retailers hand the parcels

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over on receipt of an identifying code, giving them the opportunity for some customer interaction and potential additional sales. This also means valuable shop space isn’t sacrificed to make way for a row of metal boxes. It is free of charge to become a CornerDrop location and stores are paid 50p per parcel. Retailers can control the maximum number of parcels received in a given day, and so avoid being deluged with boxes during the Christmas rush or other busy times. The business is actively expanding its network, and is looking for more locations in 2016. Further information about the service can be found on the CornerDrop website, www.cornershop.com.

Britvic backs community causes Britvic has named charities The Wildlife Trusts and Sported as its new long-term community partners. Each charity will benefit from a combination of corporate support, employee volunteering support and fundraising initiatives. In 2015, Britvic’s employees raised over £288,000 for a wide variety of charities, with previous corporate partner Cancer Research UK receiving £100,000 over a three year period.

APRIL 2016 | SLR

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RETAIL ASSISTANCE SnacKPartners Ambassadors Forum helps retailers grow sales

KP Snacks unveils new forum A new retailers’ forum has been unveiled by KP Snacks. The SnacKPartners Ambassadors Forum consists of hand-picked independent retailers from both affiliated and unaffiliated stores across the UK. The group is intended to support KP Snacks’ dedication to work together with customers in the sector and grow the Crisps, Snacks and Nuts category. The forum will meet quarterly to discuss the latest market developments and hot topics within the sector, allowing KP Snacks to hear first-hand about the challenges and opportunities faced by retailers. The group will also offer retailer members the chance to take a first look at KP Snacks’ initiatives and directly feed back and influence its future plans in the channel. The forum is the latest extension to the KP SnacKPartners category initiative which has been running for the last two years. It provides

a balanced category management view and fresh perspective, based on authenticated data and insight. KP Snacks says independent retailers can maximise the category opportunity and grow their sales by on average +40%. Current ambassadors on the forum include: Raaj Chandarana (Premier), Raj Aggarwal (Spar), Julian Taylor-Green (Spar), Atul Sodha (Londis) and Dharmesh Patel (Independent). The forum will continue to evolve and new ambassadors will be introduced over the course of the rest of the year. Matt Collins, Trading Controller, of Convenience and Wholesale said: “The creation of our KP SnacKPartners Ambassadors Forum provides a fantastic platform for us to collaborate with some of the country’s best in class retailers and really step change our plans and ways of working in this hugely important and growing channel.”

FINANCE SMARTtill aims to help retailers save time

Costcutter introduces intelligent cash drawers Costcutter Supermarkets Group is trialling the next generation in cash management technology, the SMARTtill Intelligent Cash Drawer, in a number of its stores. Believed to be the first intelligent cash drawer on the market, the SMARTtill will soon be available to the Group’s 2,600 stores across the UK. Using the latest weighing technology, the tills count all notes and coins automatically within seconds of the cash drawer being closed. Daily cashing up becomes a thing of the past as the tills automatically reconcile every cash transaction and provide full reports for retailers on vital figures including rolling floats values, change needed, top-up values, pick-up values and sales values, saving retailers up to 30 minutes per day per POS terminal. Dave Morris, Director of IT, Costcutter Supermarkets Group, said: “Retailers are looking for straightforward technologies that can be implemented quickly and easily whilst bringing real benefits to them and their store.

“We demonstrated the SMARTtill Cash Management Solution at our conference last year and there was a real appetite for it from our retailers. The intelligent cash drawers give retailers another way to create efficiencies within their stores. Costcutter store owner Andy Pengelly commented: “We’ve just completed an initial trial of the SMARTtill Solution, and are really impressed. Not only has it saved time but it gives me an audit trail of cash handling activities instore, which is invaluable for day to day store management.” The SMARTtill Solution is a British innovation developed and manufactured in the UK by Cash Bases Limited. Stephen Bergeron, the company’s Vice President of Global Marketing, said that in addition to the time savings, retailers were seeing a reduction in cash losses of up to 90%. “It is through these operational improvements that businesses are achieving an ROI in less than a year utilising the SMARTtill Solution,” he added.

www.slrmag.co.uk

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14/04/2016 15:50:37

SUGAR TAX Osborne has introduced a tax on soft drinks

Tax on sugary drinks announced

In a move that will come as no surprise to readers of SLR, Chancellor George Osborne has introduced a sugar tax on soft drinks. The tax will be levied on manufacturers, who have been given two years to reformulate their products. There will be two bands of taxation: one for total sugar content above five grams per 100ml, with a second higher band for the most sugary drinks with more than eight grams per 100ml. Pure fruit juices and milk-based drinks are to be exempt from the tax. The expected £520m raised by the levy will be used to fund sport in schools. Labour leader Jeremy Corbyn welcomed the news, saying it would “protect our children.” The Scottish Grocers’ Federation “expressed strong disappointment” at the announcement, pointing out that the majority of soft drinks now sold in the UK are actually low and no calorie, including nearly half (49%) of all carbonates. Pete Cheema, Chief Executive of the

SGF criticised the decision: “This measure by the Chancellor completely ignores the efforts taken by the soft drinks industry to reformulate their products, promote low or no calorie alternatives and the commitment not to advertise high sugar soft drinks to under 16s. Additionally – and of great concern to retailers – is that this is likely simply to pass on the cost to consumers This is despite the Chancellor suggesting last year that the obesity problem would be best tackled in other ways.” It has been estimated that Scotland enjoys benefits of some £289m gross value added from the manufacturing of soft drinks, higher than any other UK region. Shares in AG Barr dropped by 4.9% following the news, with the value of other leading manufacturers also falling. Soft drinks contributed 8.8% of UK household sugar consumption in 2015, down from 10.1% in 2011. It looks like that figure will fall further yet, but at what cost to the retail industry?

PARCEL SHOP Customers can now send parcels from their local Co-op

Co-op rolls out new parcel scheme The Co-op is offering a new parcel service, following a successful pilot in 42 stores. Customers can now send parcels from their local store and also have items delivered there as well. Up to 450 stores are taking part in the ParcelShop scheme, for which the Coop has partnered with courier firm Hermes. Chris Whitfield, the Co-op’s Retail and Logistics Director, said: “As a community retailer we are committed to enhancing the communities in which we operate. The pilot scheme clearly demonstrated that the Hermes ParcelShop service is used and appreciated by many of our customers and so we are delighted to extend it to many more stores.” Carole Woodhead, CEO of Hermes, added: “This partnership focuses on convenience, with consumers being able to buy groceries whilst also sending parcels, collecting or returning their online purchases, and vice versa.” www.slrmag.co.uk

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News PRICE CUTS Co-op has announced price cuts that will save customers over £125 a year

Co-op price chop announced Q Nisa’s own-label Heritage range has been performing strongly since its relaunch. Trading figures for the third quarter of 2015/16 show a year-on-year sales increase of 11.24% in value and 7.73% in volume for the range. Figures for the festive season were even better, with sales growing 23.15% in value and 16.38% in volume versus the same 10 week period in 2014. Nisa offers its retailers over 800 products across a three-tiered approach to the Heritage range. Q Tesco has halved the pace of its sales decline in March as price cuts have helped stem the loss of customers elsewhere. Tesco experienced its biggest economic performance since

The Co-op has revealed a multimillion pound raft of price cuts that it says will save customers over £125 a year. The community retailer also unveiled a new initiative to support British farming. The mutual will cut the cost of over 200 of its own-brand British-sourced meat and poultry products as part of the next round of its price investment strategy. Annualised investment in cutting the costs of products will top £200m by the end of the year and The Co-op will have reduced prices on over 1,000 items since it unveiled its pricing plan. The new reductions will trim the average Co-op shopper’s annual food bill by over £125 and prices will drop by as much as 50% but by around 10% on average across meat and poultry goods. As well as lower prices, The Co-op will also introduce

a new multi-buy offer of 2 for £6 on chicken fillets and mince. All of The Co-op’s own-brand meat sold in its stores is 100% British, with the specific exception of New Zealand lamb and Danish bacon which are offered alongside British varieties. The Co-op hopes to build on its positive momentum and attract even more shoppers after Kantar declared it the fastest growing non-discounter

retailer and the most frequently visited major supermarket. The pricing investment is part of The Co-op’s commitment to source British products and, in a report launched by the retailer, it announced new support for UK farming by extending its British lamb season in store, widening its British fruit and veg offer with more crops made available and unveiling a new young farmers initiative. In the first year of a three-year commitment to British farming, The Co-op confirmed it had invested £781m to source own brand British meat, produce and dairy products from the UK, rather than alternatives from abroad. Steve Murrells, Retail Chief Executive, The Co-op, said: “We are on the cusp of something exciting and industry data shows that we are winning and that our strategy is taking us in the right direction.”

July, with a sales decline of 0.8% in the 12 weeks to 28 February, compared with a 1.6% decline revealed a month earlier. Separate figures from analysis firm Nielsen suggested Tesco was doing even better, with sales falling by just 0.5%. Q Hundreds of Morrisons fresh and frozen food products will be available to order from Amazon, after the US online retailer struck up its first supply deal with one of the UK’s ‘big four’ supermarkets. In November Amazon launched a packaged groceries offer for Amazon Prime members.

BUSINESS Bestway Wholesale announces plans to grow its business over the next five years

Bestway Wholesale recruits for the future Bestway Wholesale is to grow its wholesale business over the next five years with a new strategic focus. Club & Symbol and Foodservice will continue to be key levers for the wholesale business with both channels expected to deliver significant double digit growth. In addition the group will continue to invest in its digital capabilities. A major part of the process is the creation of a ‘knowledge and power executive’ within the company t h a t will bolster the current senior management team. The group has recruited Tony Holmes (pictured) as Sales Director – Retail. Previously at SAB Miller, Holmes has also worked for CCE. Heading up Bestway’s Supply Chain is the highly experienced Alek Adamski, who has worked with over 60 retail and consumer companies.

Lidl’s former Head of Buying Ed Smeaton will also join the group as Trading Director for Retail, while new Human Resources Director Carolyn McMenemie joins from Holland & Barrett. These new appointments will join Martin Race (Group Trading Director), Dawood Pervez (Marketing Director), James Hall (Symbol & Club Director), Ron Hickey (Sales Director – Catering) and Rizwan Pervez (Operations Director) on the Executive Board. Dawood Pervez is also appointed Deputy Trading Director. He will be aided by Salih Sheikh who becomes Head of Marketing. Younus Sheikh, Managing Director of Bestway Wholesale, commented: “We now have an unparalleled management team with unmatched knowledge gained through many years of experience working for some of the UK’s largest companies.”

Q The UK Cards Association has revealed that UK shoppers made more than one billion contactless purchases on credit and debit cards in 2015, and used the technology for almost one in eight of all card transactions in December. An increase in the amount that could be spent without using chip and pin, from £20 to £30, and growing awareness of the technology by consumers pushed spending up by 233% over the year, to £7.75 billion.

SLR | APRIL 2016

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Spar Thornliebank hits the big time with SLR Spar Thornliebank on the southside of Glasgow hit the big time recently when a massive billboard was posted advertising the store on the main approach road, thanks to SLR and PayPoint. The CJ Lang owned store is managed by Gerry Haughey who was the lucky winner of a prize bingo competition held on the afternoon of the SLR Rewards last year. PayPoint had kindly offered to pay for the nearest billboard to the winning store. Gerry, always handy with a bingo dabber, said the response he has had from customers has been amazing - and you can see why. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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Increase In Rates | Business

News Extra

NewsExtra CASH IN ON THE LOW SUGAR TREND, P68 BUSINESS Rates increase this month

Convenience Matters with the SGF Some time ago – and with the help of SLR – SGF began to do some work on what we called the Local Multiplier Effect. This is essentially the economic contribution a convenience store makes to the local economy simply by using local tradespeople, local suppliers and, of course by providing jobs for local people. We started to gather some preliminary data from our members and we found that the amounts of money involved were staggering: a typical convenience store can re-invest anywhere between £250,000 and £440,000 back into the local economy. As we announced at our recent Success in Scotland Summit, we’ve managed to take this initially small-scale project to a new level. By working in partnership with the University of Stirling’s Retail Studies institute, led by academic heavyweight Professor Leigh Sparks, we have managed to secure a PhD research programme to undertake and publish research on the local multiplier effect. This will provide us with academically robust data to demonstrate how important convenience stores are to the local economy. This will be a significant benefit to us in our lobbying and political engagement work, when we are trying to influence key policy and decision makers to support our industry. The research programme will also be broadened in scope to look at the cost pressures impacting on retailers such as the living wage and the cost of legislative compliance and pension’s changes. We will look to see some research reports produced within the first 6 months of the programme. We will need help from our members to do this so please watch this space.

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Rates hikes ‘holding back’ retail industry Business rates in Scotland increased from 1st April, as the main poundage rate rose once again and the extra rates supplement paid by firms occupying medium and larger sized commercial premises doubled. It comes as shop vacancies are mounting with one in every 11 retail premises in our town centres now lying empty, and with retail employment in Scotland having fallen by 3,500 last year. Research published last month by SPICe found that businesses are contributing a far greater share towards local authority funding than before. The research revealed that the tax revenue from business rates has risen by 42.5% over the past seven years, in contrast to council tax revenues which have grown by only 7%. In 2007-08 both business rates and council tax generated similar amounts, £1.860bn and £1.890bn respectively, with council tax then raising £30m more in revenues than Business Rates. By 2014-15 however there had been a dramatic turnaround with business rates contributing £2.650bn, some £628m more than council tax. From 1st April the main poundage rate increased to 48.4p in the pound, and the extra supplement levied on larger firms doubled to 2.6p. This doubling of the supplement is expected to add an extra £60m each year to firms’ rates bills, and affect one in every eight commercial premises in Scotland. David Lonsdale, Director of the Scottish Retail Consortium, said: “A thriving retail industry is a great route to better paid jobs, more commercial investment, a stronger indigenous supply chain and additional tax revenues. “The industry is undergoing significant transition and retailers are seeking to respond positively with substantial investment in new technology, a more skilled workforce and better logistics. However, this is made all the harder by the rising cumulative burden of government-imposed costs which is an acute problem and is holding back investment. “Increases in business rates have been wholly out of step with the other main local property tax, with rates tied to an escalator

whilst council tax has been frozen. Retailers stump up a quarter of all rates paid and this is ratcheted up year after year with little or no regard to trading or economic conditions. “The retail industry is facing profound change and other routes to market – notably online – are increasingly more attractive and far less costly than maintaining a ‘bricks and mortar’ presence of shops. This places a question mark over likely future tax revenues from business rates. “We want to see all of Scotland’s political parties commit in their election manifestos to delivering a reformed and competitive business rates system which flexes with economic conditions.” On the larger firms’ supplement Lonsdale added: “Given existing concerns about Scotland’s relative economic underperformance compared to the UK as a whole and the pressing need to lift private sector investment, this hike in the supplementary tax is both odd and troubling. “We’ve yet to hear a convincing explanation as to why firms operating from medium and larger sized premises in Scotland are better placed to be forking out more in rates than firms in comparable premises elsewhere in the UK. “Our fear is that this Scotland-only surcharge could open the door to even higher business taxes in future if there is a shortfall in devolved tax revenues.”

APRIL 2016 | SLR

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Comment

WHAT ROLE DO RETAILERS HAVE TO PLAY IN PUBLIC HEALTH? The recent Budget and George Osborne’s already infamous sugar tax has relit the debate on exactly what role retailers have to play in the public health agenda. This is a debate that has been going on for a decade. It started with tobacco, and we can’t say we weren’t warned. I clearly recall the tobacco industry warning that while it was them in the firing line for Westminster and Holyrood, it wouldn’t be long before alcohol, confectionery and soft drinks would be dragged into the battle too. And they were absolutely spot on. I doubt back then that many people would have predicted the state of affairs we have going on today where the governments have taken it upon themselves to dictate what shoppers – who are also voters – can and cannot eat, drink or consume. The ‘we know better’ approach always grated and nowhere more so than in retail because, at the end of the day, it’s always retailers who bear the brunt. It’s retailers who end up policing these schemes; it’s retailers who have to deal with disgruntled and confused shoppers; and more often than not it’s retailers who have to foot a big chunk of the bill for actioning often ill-considered legislation. Which begs the question, how much responsibility should retailers have in driving the public health agenda? I would hazard a guess that most retailers are responsible enough to want to ensure that their customers have the choice to buy healthier products. But the key word here is ‘choice’. It was easier when it was just about tobacco. It’s clearly a dangerous product and most right-minded retailers reluctantly agree that it’s not doing their customers any good. But when the debate moved onto alcohol, and now soft drinks the arguments get a little more muddied. And confectionery will be next. Should retailers be forced to be the agents of change for partisan government policy? Is it not enough that we offer a good range of products right across the ‘healthy’ spectrum and allow shoppers to decide for themselves? What happened to personal responsibility? The tide is very much moving in one direction and I for one don’t think the retail industry has put its case strongly enough with a united front. We left the tobacco industry to fight its case on its own. Then we did the same with the alcohol industry. And we’re likely to do it with soft drinks. I don’t have the answer but we’re being carried in one direction with barely a whimper – and the impact on the average convenience store owner is highly unlikely to be a positive one.

EDITORIAL Publishing Director Antony Begley 0141 222 5380 | abegley@55north.com Web Editor Findlay Stein 0141 222 5389 | fstein@55north.com Editoral Assistant Émer O’Toole 0141 222 5387 | eotoole@55north.com

ADVERTISING Advertising Manager Susan Dignon 0141 222 5384 | sdignon@55north.com Special Project Sales Manager Donald Stephenson 0141 222 5387 | dstephenson@55north.com

DESIGN Senior Designer Richard Chaudhry 0141 222 5300 | rchaudhry@55north.com Designer Lisa Deakin 0141 222 5388 | ldeakin@55north.com

CIRCULATION & SUBSCRIPTIONS Events & Operations Manager Cara Begley 0141 222 5381 | cbegley@55north.com Events & Operations Assistant Chloe Buchanan 0141 222 5383 | cbuchanan@55north.com Scottish Local Retailer is distributed free to qualifying readers. For a registration card, call 0141 222 5381. Other readers may obtain copies by annual subscription at £50 (UK), £62 (Europe airmail), £99 (Worldwide airmail). 55 North Ltd, Waterloo Chambers, 19 Waterloo Street, Glasgow, G2 6AY Tel: 0141 22 22 100 Fax: 0141 22 22 177 Website: www.55north.com Twitter: www.twitter.com/slrmag DISCLAIMER The publisher cannot accept responsibility for any unsolicited material lost or damaged in the post. All text and layout is the copyright of 55 North Ltd. Nothing in this magazine may be reproduced in whole or part without the written permission of the publisher. All copyrights are recognised and used specifically for the purpose of criticism and review. Although the magazine has endevoured to ensure all information is correct at time of print, prices and availability may change. This magazine is fully independent and not affiliated in any way with the companies mentioned herein. Scottish Local Retailer is produced monthly by 55 North Ltd.

ANTONY BEGLEY, PUBLISHING DIRECTOR 12

SLR | APRIL 2016

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14/04/2016 15:39:43

Cover Story

Dennis & Linda’s Big Breakfast

BIG BREAKFAST FEEDS THE IMAGINATION IN EDINBURGH Edinburgh retailers Dennis and Linda Williams took community involvement to a new level last month by providing a free healthy breakfast for over 400 local schoolchildren. BY ANTONY BEGLEY

ctive community involvement sits at the very heart of what it means to be a local retailer in Scotland, of that there is no doubt. The Scottish Local Shop Report, published by the Scottish Grocers Federation, shows that in 2015, some 87% of convenience store retailers in Scotland were involved in community engagement activities. That’s a hugely impressive stat and something the entire industry can be proud of. But while most retailers are serious about their community involvement, very few can claim to bring as much passion and commitment to working with the local community as Edinburgh Premier retailers Dennis and Linda Williams. With three decades of serving the same community under their belt, it’s no surprise that the high profile couple are well established as pillars of the local area, involved in everything that’s happening. They are also multiple winners of SLR’s Community Involvement Retailer of the Year award.

SLR | APRIL 2016

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Dennis & Linda’s Big Breakfast

Cover Story

JOIN THE FRUIT CLUB!

But what is surprising is the energy and creativity that they still bring to the task year in, year out, always dreaming up new ideas and bringing ambitious projects to life – all while simultaneously running a successful convenience store in Oxgangs on the south side of Edinburgh, between the city centre and the bypass. That commitment to engaging with the local community was ratcheted up another notch or two last month when the dynamic duo organised and co-ordinated a free healthy breakfast for over 400 pupils at the local Oxgangs Primary School. “The truth is that there are too many kids in our area who either don’t get a decent breakfast in the morning, or don’t get one at all,” Linda told SLR. “So we decided we wanted to do something about it. We wanted to give them the chance to try some healthier options that they maybe don’t have regularly or perhaps have never had at all.” The result was the Big Breakfast, hosted at the www.slrmag.co.uk

Cover Story.indd 15

local primary school and supported by Healthy Living Scotland and a number of suppliers and wholesalers including Muller-Wiseman, Allied Bakeries, PepsiCo, Warburtons and Booker. It was of course Dennis and Linda who got everyone on board and pulled them together to deliver what was a truly inspirational morning that went down a storm with the children. With breakfast club funding for schools at risk in Scotland, the event also reinforced how important these are to communities across the country. “It’s pretty appalling that something as important as feeding our kids well and giving them a decent start to their day and even their lives is subject to funding cuts,” said Linda. “But that’s exactly where we are and it’s simply not good enough.” Breakfast clubs are a hugely valuable service to many local communities, allowing parents who work to drop their children off at school early, letting them get to work on time or allowing them to participate in further education or training. They are also

Dennis and Linda have also launched an innovative ‘Fruit Club’ initiative which will encourage children to buy fruit. Operating similar to a loyalty club, kids earn a stamp on their card every time they buy a piece of fresh fruit. For every four pieces of fruit they buy, they get a free piece – so they can have ‘Free Fruit Friday’ every day of the week in the store.

APRIL 2016 | SLR

14/04/2016 15:04:18

Cover Story

400

Children received a free healthy breakfast

Years running Broadway Convenience store

87% of local retailers actively engage with their local community

SLR | APRIL 2016

Cover Story.indd 16

Dennis & Linda’s Big Breakfast

an important way of ensuring that children living in low income households get a proper breakfast, which research has shown, isn’t always the case. Indeed, during the breakfast morning it was interesting to spend time with the children as they tried things like porridge, wholemeal wraps with honey, cereal and fresh fruit. Revealingly, several children said they had never seen a kiwi fruit before, or had never had banana on toast before. John Lee, Head of Policy and Public Affairs at SGF, said: “Initiatives like these are especially important in the era of welfare reform, stagnating incomes and the increasing reliance of families on foodbanks. It is well known that children who do not eat a proper breakfast perform more poorly in school as hunger often leaves them unable to concentrate on their schoolwork and they suffer from low energy.” Dennis commented: “We have always believed that there are two things at the heart

of every community: the local shop and the local primary school. We are passionate about supporting our schools, our children and parents. Giving children a healthy breakfast is the best way to make sure they get the right start to the school day. Breakfast clubs are the ideal way to do this and we will continue to do everything we can to support breakfast clubs at Oxgangs primary and all the schools in our area”. Maureen Watt MSP, Scottish Government Minister for Public Health, was also vocal in her support of the event: “As they launch the big breakfast event and will shortly launch their fruit club, I would like to pass on my sincere thanks and admiration to Dennis and Linda for the work they are doing to further encourage children and young people to make good food choices. I am sure the work they are doing on both initiatives will be a great success and I have no doubt that the work they are doing will have a positive effect on the children in their local area.” www.slrmag.co.uk

14/04/2016 15:04:23

Inside Business

WIN COLOUR RUN TICKETS PLUS £150 IN SKITTLES To celebrate Skittles’ partnership with The Colour Run UK, SLR is giving this month’s competition winner the chance to not just Taste the Rainbow, but to Run the Rainbow as well! Along with two tickets to take part at The Color Run UK event in Glasgow on 17th July, our lucky winner will receive £150 worth of Skittles Original to sell in-store. The Color Run Presented by Skittles is held annually across five cities in the UK, and is billed as the ‘happiest 5k on the planet’. You don’t have to be Mo Farah to take part, in fact you don’t even have to run if you don’t want to. The focus is firmly on fun, with numerous Colour Zones strategically placed along the route where participants are covered with multi-coloured powder as they pass through. It looks like being a great day out, and one your clothes will certainly remember. To enter, please complete your details below and send to Colour Run Competition, SLR, Waterloo Chambers, 19 Waterloo St Glasgow, G2 6AY, or email eotoole@55north.com. Good luck!

THE CLOSING DATE FOR ENTRIES IS MAY 13 2016 Ts&Cs: This competition is only open to readers of SLR. Only one entry per store is permitted. Entries received after the closing date will not be considered. The prize is not transferable and the judges’ decision is final.

www.slrmag.co.uk

Cover Story.indd 17

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APRIL 2016 | SLR

14/04/2016 15:04:24

News

Products

DAIRY

Müller’s cool school promo Müller Milk & Ingredients has teamed up with Walker Books to give nurseries and primary schools the chance to win £100 worth of Walker books by award-winning authors and illustrators. The newly-designed promotional 200ml cartons of whole, semi skimmed, chocolate and strawberry flavoured milk for schools feature a family of owl characters in a vibrant new design, and promote the Tetra Pak website to encourage schools and youngsters to recycle their Tetra Pak cartons. On the website entrants can input the promotional code from the side of their promotional carton to be entered into a fortnightly prize draw for a chance to win £100 worth of Walker books for their school. Rebecca Oliver-Mooney, Head of Category & Operational Marketing at Müller Milk & Ingredients, said: “We’re thrilled to link up with Walker Books to offer schools the chance to win free Walker books. We are passionate about environmental sustainability and recycling, so the link with www.smartoncartonrecycling. co.uk makes perfect sense for us too. “There are two prize packs for winning schools to choose from. One suitable for nurseries and one for primary schools, each bursting with a fantastic selection of picture books, fiction and non-fiction to entertain and delight. “Teachers and parents can nominate their local school for a chance to win and prizes will be drawn fortnightly until the end of July.” The promotion runs from 14th March until 31st July 2016 across 200ml cartons of whole, semi-skimmed, chocolate and strawberry flavour school milk.

SLR | APRIL 2016

Product News.indd 18

ProductNews SPLASH OUT ON BOTTLED WATER – P64 SOFT DRINKS Spar has tapped into the reduced sugar drinks trend.

Spar cuts soft drinks sugar content across own label range Spar has refreshed its own-label soft drinks in time for summer, and has also removed 51.6 tonnes of sugar – or 206 million calories – from across the range. American Cola has been rebranded as Classic Cola, and sees a 10% reduction in content. Spar says the change “will help make sure Spar Brand Cola has a clear place in the market alongside the big brands.” The Blue Bear energy drink range has also been revamped, with a new look and feel to the drink, as well as a 10% reduction in sugar. The range – worth over £1.6m – has also received two new flavour additions – Apple Sourz and Cherry Sourz. Finally, Spar’s Sparkling Water range is getting new labels and a new addition: Lemon and Lime one-

litre. Lemon and Lime is the number one flavour in the waters marketplace, outperforming other flavours by twice as many sales, making this a key addition to the Spar Brand range. Susan Darbyshire, Spar UK Brand Director, said: “We are making these improvements to make sure our own label offering is competitive, modern and adapts to the changing market and consumer shopping habits. “All these changes, along with keeping our pricing clear and competitive, will help entice even more shoppers into our own label range, boosting sales and profit for our retailers.” More refreshes on products such as Carbonates, Glucose & Isotonic Energy Drinks, and Mixers will be announced soon.

AG BARR’S DEAL WITH GLASGOW’S HYDRO

Barr’s Hydro deal turns air blue (and orange) A.G. Barr has been announced as the Official Soft Drink Partner of the SSE Hydro, celebrating the deal with a late night projection onto the Clyde skyline. The skyline was turned orange and blue, with a can of Irn-Bru projected onto the Glasgow Armadillo. The five-year deal will see the A.G. Barr brands – including Irn-Bru, Strathmore Water, Rockstar, Rubicon and Barr Flavours – support the entertainment venue. A.G. Barr Head of Marketing Adrian Troy, said: “We’re extremely proud to be announced as the official soft drink partner of the SSE Hydro. This is a partnership between two great Scottish brands so it felt right to mark it in a bold, very Irn-Bru style with this unique projection.” Putting the spotlight – as it were – on Irn-Bru, Fiona Crichton, Head of Partnerships, SECC and The SSE Hydro, added: “This brand has a well-loved heritage across Scotland and beyond and aligns perfectly with the variety of live entertainment events that take place at The SSE Hydro and across the wider SECC Campus.”

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14/04/2016 17:26:57

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onepounders

News

Off-Trade

Off-TradeNews FIND OUT THE BENEFITS CATERING TO YOUNG ADULTS CAN HAVE ON ALCOHOL SALES – P68 BEER YouGov survey finds the public believes Britain’s high rates of beer duty should be tackled

Charles Wells extends contract with Estrella Damm Charles Wells and Damm have signed an extension to their contract which sees the Bedford brewer retain sales and distribution rights for the flagship Spanish beer, Estrella Damm. The partnership was first formed in 2009 and sales of Estrella Damm, titled the Beer of Barcelona, have rocketed 1100% in the UK under Charles Wells’ management. The contract sees Charles Wells, which owns and brews McEwan’s and Younger’s beers, retain marketing and sales responsibility for Estrella Damm

Beer too dear, finds tax survey Calls for more action to tackle Britain’s high rates of beer duty are popular with the general public, according to a poll from YouGov for the British Beer and Pub Association (BBPA). The survey found that 72% support either a cut or freeze in beer duty, with just 18% supporting a tax rise to raise extra money for the Government. The poll findings also show that one-in-three people surveyed (37%) believe the amount of beer tax we pay in Britain is unfair, compared with just one in five

(20%) who think it is fair. The remainder did not know or felt it was neither fair nor unfair. Those who believe beer tax is unfair compared to fair, rises among older age groups and those living in the Midlands, Wales and North of England -– over 40% among these groups believe beer tax in Britain is unfair compared to under 20% who think it is fair. There is also a lack of knowledge regarding UK beer tax rates compared to elsewhere in Europe. UK beer duty rates are on average

three times higher than EU rates, and 13 times higher than in the largest beer market, Germany. Whilst 57% correctly believe UK beer tax is higher than in most countries in Europe, 18% believed it was the same or less, and onequarter stated they did not know. Brigid Simmonds, BBPA Chief Executive, said the Chancellor’s three beer tax cuts had saved drinkers millions. “He can keep up the good work, with another penny off a pint in the Budget.” The poll used a sample size of 1,736 adults.

in the UK on an exclusive basis, remaining custodians of the brand and continuing to cement its premium positioning for a further five years.

Catalyst to accelerate Beam Suntory brand growth Catalyst Brands has secured exclusive distribution rights for some Beam Suntory brands across the UK and Northern Ireland. The portfolio includes the Sauza family of tequilas; Kilbeggan and Tyrconnell Irish whiskeys; DYC whiskey and Larios gin.

Stag Lager roars into UK Wanis International Foods has joined forces with Carib Brewery Limited to bring Stag Lager to the UK. Launched in Trinidad over 30 years ago, Stag is available in a 275ml, dark green bottle with 5.5% abv. The beer is one of Carib Brewery’s fastest growing products and has a loyal following across the Caribbean.

SLR | APRIL 2016

OT News.indd 20

WINE Nisa launches wine festival

Nisa uncorks new wine festival Nisa has launched its new wine festival event to help drive sales while also encouraging cross-category purchasing in members’ stores. The festival launched in the last week of March throughout Nisa member stores, with retailers receiving assistance from the company’s field-based team to execute the activity successfully and ensure the specially-designed gondola end displays were properly merchandised for maximum impact. The wine festival – which is supported instore,

through POS and in the company’s consumer leaflets; and online, through its website and its social media channels – features a range of specially selected wines, benefitting from tasting notes, food matching recommendations – which complement Nisa’s Heritage own label range – and awardwinning highlights. In addition, the activity will also match up wines for big night in events, such as the perfect wine to watch a movie with and the ideal wine for a romantic evening. Wines selected for the festival include Oyster Bay Sauvignon Blanc at £6.99, the ‘I heart…’ range at £4.99, the Casillero del Diablo range at £5.99 and Blossom Hill Blends at £3.99. Emma Breslin, Trading Controller covering wine at Nisa, commented, “We are confident that our Wine Festival will deliver great sales uplift for our members, not only in the wine category, but in those areas we are cross-merchandising. “The wines and prices we’ve secured provide a great competitive offer for our members and their customers, while the tasting and food matching advice is hoped to drive further engagement with product and store.” The festival launched just days after Nisa announced it would not be increasing the base pricing on wines following the Chancellor’s budget announcement. The decision by Nisa is intended to safe guard retailers from the burden of additional costs, and protect its members’ margin. www.slrmag.co.uk

14/04/2016 17:27:47

Off-Trade

News

BUSINESS Pernod Ricard to be given the rights to Lamb’s rum in the UK

Pernod Ricard to represent Lamb’s rum in UK Corby Spirit and Wine and Pernod Ricard have entered into an agreement providing Pernod Ricard the exclusive rights to represent Lamb’s rum in the UK. The move will happen by July 1st this year, following termination of the existing third-party representation agreement for a five year period to June 30th 2021. Patrick O’Driscoll, President and Chief Executive Officer of Corby, said: “I’m very pleased that Corby is entering into this new relationship with PRUK and am excited to work with the PRUK management team to build upon the long history of Lamb’s in this core market. Partnering with PRUK will allow Lamb’s to benefit from PRUK’s well-established distribution network and strong relationships with both off- and on-trade customers, thereby positioning the brand to

drive profitability and increase market share.” “We appreciate Halewood International’s efforts in representing Lamb’s for the last eight years and now look forward to the future with PRUK.” Denis O’Flynn, Managing Director, Pernod Ricard UK, added: “We are delighted to expand our offering by distributing Lamb’s in Great Britain. Lamb’s is a great portfolio fit for our business and represents a strong opportunity for us and our customers. The rum category is ripe for continued innovation. We look forward to announcing our plans for the brand later this year.”

Jim Beam goes global with pack redesign Jim Beam has undergone a transformation with all-new global packaging, the first time significant changes have been made to the brand in decades. This year, the Jim Beam portfolio will have a unified look in more than 100 markets around the world. Available now, the new packs will begin with Jim Beam Bourbon followed by the Jim Beam flavours.

On-pack promotions just got cooler Brancott Estate celebrates its 40th anniversary with the launch of a new on-pack promotion. Exclusive bottle neck tags and labels will offer shoppers

RUM New collectable bottles from Sailor Jerry’s ILLICIT ALCOHOL

Retailers back illicit alcohol controls Independent retailers have welcomed a new initiative to clampdown on illicit alcohol. HMRC’s new strategy aims to reduce the strains on alcohol businesses. Working with enforcement agencies, HMRC promotes good compliance, making it easier for businesses to pay the right duties and prevent tax loss by making it harder for people to deal in illicit alcohol. NFRN National President, Ralph Patel, said: “The NFRN shares HMRC’s concerns about the extent of alcohol fraud and agrees that more needs to be done to tackle this.” “Illicit alcohol threatens the pockets of both the Treasury and legitimate, law abiding retailers, while dangerous counterfeits threaten the health of consumers.”

www.slrmag.co.uk

OT News.indd 21

the chance to win one of 40

Sailor Jerry’s launches collectable bottles

wine cabinets from Liebherr,

A new range of bottle wraps will be released throughout 2016 by Sailor Jerry. Released exclusively in the UK and Australia, the first two designs from this limited edition release are available now, with the second two designs to follow later in the year. On a slick black bottle, each of the four new collectable designs — the homeward bound ship, an American eagle, a pin-up girl and a Gypsy — are based on designs by Norman ‘Sailor Jerry’ Collins who helped revolutionise the tattoo industry with his blend of traditional bold line Americana and Japanese technique. Dave Hort, Senior Brand Manager of Sailor Jerry said: “We wanted to provide our consumers with a collectable run of new bottle wraps based on the great, iconic works of our founding father Norman Collins. These new wraps showcase some of the highest quality flash art that has spanned generations, and we’re proud to continue spreading the word of Norman Collins through this limited edition packaging.”

BrewDog has published all of its

worth £849, as well as a case of Brancott Estate.

Brew it yourself recipes online as an “inspiration to the rapidly growing and inclusive craft beer community.” The DIY Dog collection contains detailed recipes of over 200 beers, from the original Punk IPA through to BrewDog’s newest headliner, Jet Black Heart. The recipes have all been scaled down to home brew volumes of five gallons or 20 litres.

APRIL 2016 | SLR

14/04/2016 17:27:48

Inside Business

Market Research | Sporting Events 2016

WINNING WITH SPORTING EVENTS IN 2016

The hugely positive effect that major sporting events can have on turnover and profits is well documented with new research from him! drilling down into exactly what shoppers are looking for and what retailers, wholesalers and suppliers must do to deliver on this huge opportunity. BY ANTONY BEGLEY

NOT ONE-SIZE-FITS-ALL… Interestingly, him!’s research reveals that category purchases differ significantly by event: Euro Football

Rugby World Cup

Olympics

Hot drinks – tea/coffee

27%

25%

40%

Beer

46%

40%

37%

Crisps

42%

35%

50%

SLR | APRIL 2016

MKT Research.indd 22

hen leveraged well, major sporting events can have an enormously positive impact on sales and profits in Scotland’s convenience stores; that much will be obvious to most retailers from the experiences they have had of everything from the Olympic Games and Commonwealth Games to the the football World Cup and the Six Nations. If retailers are prepared to put a little time and effort into a well merchandised display, a bit of in-store theatre and a little support from the staff, the results can usually be seen in the till. Sales rise in many key categories – beers, confectionery, crisps – and shoppers can be persuaded to visit the store more often than is their habit. With another packed sporting calendar ahead this is clearly another huge opportunity and this has been reflected in new research from convenience insight specialists him! entitled Preparing for Sporting Events 2016. Critically, the in-depth report found a significant demand from retailers for more support from suppliers for national events as 18% don’t feel brands offer enough support with national events. www.slrmag.co.uk

14/04/2016 15:44:54

Sporting Events 2016 | Market Research

Unsurprisingly, the online study of 1,000 UK adults from a representative sample found that 70% of retailers use national events to increase footfall. But the key challenge here lies in the finding that six in 10 shoppers plan to buy food and drink for national events like these from supermarkets, rather than c-stores, because of the wider range available. Overcoming this challenge is no simple task, but at least part of the solution lies in well conceived and well executed targeted promotions. When asked, ‘What would influence you to buy certain food and drink products over others when it comes when attending an event?’ 46% of consumers answered ‘promotions’.

THE OPPORTUNITY So, what scale of opportunity exists around sporting events in this calendar year? Well, the Olympics clearly represent another major chance to grab some extra spend, as do the Euros, even if Scotland won’t be there. Some 44% of UK shoppers plan to watch the Euros this year, with 47% of those planning to do so with their partner. Even more significantly, 60% of shoppers plan to watch the Olympic Games and a staggering 93% of those intend to www.slrmag.co.uk

MKT Research.indd 23

do so at home. That will equate to a lot of beer, wine, cider, confectionery, soft drinks, crisps and more. Elyse Charvin, Insight Account Analyst at him!, offers some practical suggestions for how Scotland’s local retailers might capitalise on these major opportunities: “With the majority of shoppers attending events in groups: multibuys and cross category merchandising are highly recommended. Six in 10 shoppers plan on watching the Olympics with their partner. Offering evening meal solutions for couples and supporting ‘Sporting parties’ recipes could also drive sales.” “Staff could also play a key role in helping consumers deciding which items to purchase for big nights in. Sampling would be a great way to create theatre in-store and promote event associated products.” Val Kirillovs, Senior Client Manager from him!, added, “In order to attract the ‘Big Night In’ shopper, there needs to be a dedicated area in the store, clearly labelled with communication outside to attract passers-by. Linking directly to the main occasion in question such as sports viewing or movie nights for example is a great way to inspire shoppers.”

Inside Business

18%

of retailers want more support from suppliers for national events

60% of shoppers plan to watch the Olympic Games

93% of shoppers planning to watch will do so at home

APRIL 2016 | SLR

14/04/2016 15:44:54

Inside Business

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visit www.bestway.co.uk/dr aw

Remember to check your rebate balance online - www.bestw ay.co.uk/greatrebate & www.batley s.co.uk/greatrebate POR includes 3% Rebate. See your branch managers for more Excludes Tobacco products. T&C are available at www.bestway details. Minimum spend, terms & conditions apply. .co.uk/greatrebate & www.batleys.c o.uk/greatrebate

YN

VISIT YOUR LOCAL DEPOT AND START SAVING MONEY TODAY Signature: Date:

Big rebates from us = Bigger proﬁts for you!

Full terms & conditions are available at www.slrmag.co.uk. All entrants must be on the Scottish Tobacco Retailer’s Register. If winner is unlicensed alcohol products will not be offered. Editor’s decision is final.

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APRIL 2016 | SLR

14/04/2016 16:49:19 14/03/2016 15:58

Inside Business

SLR Bg Giveaway

Every year SLR likes to give our readership the opportunity to fill their stockroom with thousands of pounds worth of free stock. In its fourth year running, SLRâ&#x20AC;&#x2122;s Big Giveaway remains an exciting chance for retailers. The rules are the same: we have teamed up with some of the best-selling brands in convenience to provide a range of products that any retailer would want to get their hands on. All you have to do to enter is complete the form on this page and send it back to us freepost. Weâ&#x20AC;&#x2122;ll pick one entry from our SLR hat and that retailer will scoop every product on the huge list above. Not only that, the team at SLR will personally deliver it to your store. Good luck!

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14/04/2016 17:35:44

SLR Bg Giveaway

Barr’s Cherryade 330ml x 1 Case Irn Bru 330ml x 1 Case Irn Bru Sugar Free 330ml x 1 Case Strathmore 500ml x 1 Case Rockstar Blueberry & pomegranate 500ml x 1 Case Simply Fruity 250ml x 1 Case Rubicon Mango 330ml x 1 Case Swizzles & Matlow Drumstick Bon Bons x 1 Case Swizzles & Matlow Refreshers Bon Bons x 1 Case Jim Beam 35cl x 1 Case Highland Park 12YO 35cl x 1 Case McEwans Export 440ml 4 pack x 1 Case McEwans IPA 500ml x 1 Case McEwans Signature 500ml x 1 Case McEwans Champion 500ml x 1 Case

Inside Business

Calvé Peanut Butter Smooth x 1 Case Calvé Peanut Butter x 1 Case Calvé Peanut Butter Light x 1 Case Hellmann’s Burger Sauce 250ml x 1 Case Hellmann’s Hot Garlic Chilli Sauce 250ml x 1 Case Hellmann’s Garlic & Herb Sauce 250ml x 1 Case Hellmann’s American BBQ Sauce 200ml x 1 Case Hellmann’s Brazilian BBQ Sauce 200ml x 1 Case Hellmann’s Japanese BBQ Sauce 200ml x 1 Case Hellmann’s Australian BBQ Sauce 200ml x 1 Case Hellmann’s Mexican Chipotle Sauce 210ml x 1 Case Hellmann’s Jamaican Habanero Sauce 210ml x 1 Case Hellmann’s Moroccan Harissa Sauce 210ml x 1 Case Natural American Spirit Original Yellow x1 Outer Natural American Spirit Original Blend x1 Outer

Name: Job Title: Company/store name:

Address:

Phone number: Email Address: Twitter: Is your shop licensed? Are you on the Scottish Tobacco Retailers Register?

Would you like to continue to receive a copy of SLR?

YN

Signature: Date: Full terms & conditions are available at www.slrmag.co.uk. All entrants must be on the Scottish Tobacco Retailer’s Register. If winner is unlicensed alcohol products will not be offered. Editor’s decision is final.

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14/04/2016 17:35:45

SLR REWARDS 2ND JUNE GRAND CENTRAL, GLASGOW

SLR REWARDS2016

THE SHORTLIST

As the only awards programme in the UK local retailing industry to offer every single winner an amazing prize to celebrate their victory, the SLR Rewards continues to grow in stature and size. This year is no different with the winner of the overall Scottish Local Retailer of the Year category winning an amazing trip to the NACS Conference in Atlanta, Georgia in October! The awards exist to highlight and reward best practice, great ideas, creativity and drive in the Scottish local retailing sector – and then share it with the wider audience so that the entire industry benefits and can continue to improve and grow in the future. There is nothing else like it in our industry, and everyone who appears on the shortlist on these pages can be very, very proud of having made it there against some amazing competition.

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WHO’S HEADING TO ATLANTA, GEORGIA?

This year’s Scottish Local Retailer of the Year will win a trip to the NACS Conference in Atlanta, Georgia in October.

www.slrmag.co.uk

14/04/2016 15:45:42

SLR REWARDS

2ND JUNE GRAND CENTRAL, GLASGOW

CATEGORY REWARDS

SPECIAL REWARDS

BEER & CIDER RETAILER OF THE YEAR

COMMUNITY INVOLVEMENT RETAILER OF THE YEAR

BISCUITS RETAILER OF THE YEAR

Q Q Q Q

Q Costcutter Eskbank Q Day Today @ Jamils, Renfrew Q Spar Clydebank (West Highway Service Station)

Q Keystore Broadloan Q Nisa Extra Dundee Q Spar Abronhill

CONFECTIONERY RETAILER OF THE YEAR Q Nisa Greens of Markinch Q Polbeth Spar and Service Station Q Spar JET Maybole

CRISPS & SNACKS RETAILER OF THE YEAR Q Clydebank Co-Op, Dalmuir Q Spar Condorrat Q Spar Renfrew

E-CIGARETTES RETAILER OF THE YEAR Q G101 Inveresk Street, Glasgow Q Nisa Greens of Markinch Q Spar Claggan

MAKING THE MOST OF MILK Q Spar Charlotte Dundas, Grangemouth Q Spar Leven Street, Motherwell Q Spar St Machar Drive, Aberdeen

NEWSTRADE RETAILER OF THE YEAR Q Goldenacre Minimarket, Edinburgh Q James Borthwicks, Edinburgh Q St Enoch News, Kilmarnock

SOFT DRINKS RETAILER OF THE YEAR Q Q Q Q

Londis Inveraray One Stop, Blackburn Stores Polbeth Spar and Service Station Spar JET Maybole

SPIRITS RETAILER OF THE YEAR Q Costcutter Ellon Q G101 Cambridge Street Q SPAR Newport

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Best-One @ Brownlies, Biggar Locavore, Glasgow Sinclair General Stores, Sanday, Orkney Premier Broadway Convenience Store, Edinburgh

FOOD TO GO RETAILER OF THE YEAR Q David’s Kitchen, Glenrothes Q Nisa Local, Pinkie Farm Convenience Store Q One Stop George Street, Glasgow

FRESH & CHILLED RETAILER OF THE YEAR Q Q Q Q

Londis Inveraray MacLennans, Benbecula Mitchells, Inverurie Nisa Local, Pinkie Farm Convenience Store

BEST NEW STORE OF THE YEAR Q Q Q Q

Costcutter Kelty David’s Kitchen Falkirk Day Today @ Jamils, Renfrew Euro Garages Spar Lomondgate

BEST REFIT OF THE YEAR Q Nisa Greens of Markinch Q One Stop, Blackburn Lothian Stores Q Spar JET Maybole

RESPONSIBLE RETAILER OF THE YEAR Q Day Today Maryhill Q Family Shopper Blantyre Q Premier Mo’s Convenience Store, Blantyre

THINKSMART INNOVATION AWARD Q Best-One @ Brownlies, Biggar Q One Stop George Street, Glasgow Q Spar Leven Street, Motherwell

TEAM OF THE YEAR AWARD Q Best-One at Brownlies, Biggar Q Clydebank Co-Op, Parkhall Q Polbeth Spar & Service Station

WWW.SLRAWARDS.COM APRIL 2016 | SLR

14/04/2016 15:45:51

Inside Business

Profile| Kirkcaldy

BREATHING NEW LIFE INTO AN OLD TOWN In Kirkcaldy, the town centre has benefitted over the last five years from a BID (Business Improvement District) levy paid for by local businesses. In an age where Scotland’s towns, and small businesses are struggling, Kirkcaldy’s success illustrates the power of collaboration.

he decline of the high street is a recurring theme in the narrative of 21st century retail. Whether it’s online powerhouses like Amazon, or out of town developments, the net result has been scores of high streets across Scotland emptied. Vacant sites have dusty ‘closing down’ posters in the windows, pedestrianised spaces are empty: it’s a grim picture, but Kirkcaldy is proving that it doesn’t have to be. The Fife town has a familiar background – pits, heavy industry, a prosperous economy until the 80s and Thatcherism and the inevitable decline into the doldrums. “There was no investment for decades, there were no jobs being created and it became one of the most depressed towns in the UK,” says Bill Harvie, BID Manager for Kirkcaldy 4 All – and the man who has helped bring life back to the high street. A former Navy man, Bill took on the role in 2010 after the town centre’s businesses established what’s known as a Business Improvement District.

BIDS HISTORY BIDs first emerged in Toronto, Canada almost 40 years ago, when local businesses in the Bloor West Village took collective action against the growth of shopping malls. The group lobbied for legislation that made all businesses liable for a levy, then used that money to improve the appearance of the town and encourage new shops to open. It was a resounding success and BID legislation was introduced in Scotland in 2006, with six pilot schemes. Today there are 28 schemes in the country, and over 20 in development. For local retailers in areas that have been decimated by out of town developments, the transformation of Kirkcaldy is a beacon of hope. That’s not to say the town has become a utopia of thriving independent family businesses – there are as many high street names as there are small stores, but the fact that Marks & Spencer, Next, Waterstones and the 30

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www.slrmag.co.uk

14/04/2016 15:42:31

Kirkcaldy | Profile

Inside Business

“Too many businesses say ‘this is what I sell’ when they should be asking ‘what do you want to buy?” likes are still trading provides hope. And next to them are those family businesses. There are four main spokes to the Kirkcaldy 4 All action plan, which has nine local shops represented on its committee. These aims are: Q Promoting the town centre and its businesses Q Helping each business in the BID area to grow Q Helping existing voluntary and strategic groups to achieve more Q Acting as a facilitator and ambassador to all things town centre. Harvie describes that action plan using an analogy from his days in the Navy. “In the submarine world, we had a tactic called ‘Granny’s Footsteps’. If you were being followed you would maintain your course, altering it in tiny increments. Your course would then alter and you could become the aggressor before the enemy even noticed.” There have been lots of little changes in Kirkcaldy, none of which have been transformative, but collectively they have breathed new life into the town and made it a viable site for independent businesses to flourish. “There are lots of benefits for members, from getting Christmas lights, to getting bird mess cleared up to hanging baskets along the high street,” sales Harvie.

LEVY RULES The levy is based on the rateable value of www.slrmag.co.uk

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the property, with shops at £10,000 or less paying a flat rate of £100, up to shops with a £100,000-£200,000 rateable value, which pay between £1,000-£2,000. Over the last five years the BID has invested £1.3 million in the town centre. In 2015 businesses voted for a second five-year term, which will push the recovery of the centre even further. In those first five years a huge number of events were held to drive visitors to the town. Thanks to a Beach Motorcycle race, the Scottish Beach Highland Games, the Fife International Carnival, the Adam Smith food festival, the televised Halfords Tour Series cycling event, and a huge array of smaller events, thousands upon thousands of people visited the town. “The events have been a huge success,” says local MSP David Torrance. “They bring people into the town who maybe haven’t been for a long while. They might only be coming for the day but they see the shops, what’s available, and it might make them visit again, so they’re a great advert for what Kirkcaldy can offer.” The list of work being carried out by the BID seems endless. One current scheme is a pilot that sees car parking in the town centre halved in price for six months. Running until 31st March, Harvie is confident that positive results force the council into making the move permanent.

GETTING SOCIAL A social media service has been up and running since summer 2014, which sees a ‘brand maker’ visit every store in the BID area

every week and capturing information on what each store is up to. This is passed onto a PR team which puts relevant and engaging copy out on social media. Harvie says the success of the scheme is in part down to the attitude of business owners and locals who simply refused to let their town centre wither. “It’s quite a parochial place, there’s a siege mentality almost,” he says. “Which I suppose has actually been a positive thing!” Harvie says one of the priorities for the town is to lobby for a chance in business rates. “They’ve not changed since 2010 in there’s been a recession since then; belts are still tight. Shops are seeing turnover go down but rates go up. The legislation is not fit for purpose.” He highlights how towns are up against it when town centre sites pay a higher percentage of rates than out of town stores – rightly questioning what good that can possibly do town centres. “It’s easy enough to fix. Parties change their minds on policy constantly when it suits them, so why not change business rates – increase out of town rates, reduce town centre rates so there’s a balance that is fair for all.” Harvie says that while the Government needs to help small business, they also need to help themselves – this is demonstrated in Kirkcaldy. “There are always businesses who don’t invest in their business and always have someone else to blame. The businesses who adapt are the ones that succeed. Too many businesses say ‘this is what I sell’ when they should be asking ‘what do you want to buy?’” APRIL 2016 | SLR

14/04/2016 15:42:34

Inside Business

2015 Rewards | Best Use of Technology

CALUM CHANNELS HIS INNER GEEK TO REWARDS SUCCESS!

Kincraig retailer Calum Duncan came up trumps in last year’s SLR Rewards in the technology category and won an all-expenses paid trip to the Retail Business Technology Expo in London.

alum Duncan’s boyish looks belie his long experience in retail ,with many years under his belt running the family store in Kincraig on Speyside. Remarkably for a small rural community store in a very small village, Calum’s business boasts some of the most advanced tech and social media activity of any store in Scotland. “I’ve always had an interest in technology and how it can work in retail,” Calum tells SLR. “It might seem odd that a wee store in the middle of nowhere is so big into tech but actually it makes perfect sense. It’s a great way of staying in touch with the local community – and indeed the wider community and industry.” And it was that attitude that saw Calum pick up the Best Use of Technology Award at last year’s SLR Rewards. For his efforts

“It’s clear from the trip that so many things are going to change in the years to come.” 32

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Calum picked up an all-expenses-paid trip to the Retail Business Technology Expo in London earlier this year. He was accompanied by category sponsors Retail Data Partnership, a very nice gesture. It’s one of the most important retail tech events in the world and was guaranteed to blow Calum’s mind. Held at London’s Olympia, it attracts well over 15,000 visitors every year. “It was a very good trip away!” says Calum. “It’s clear from the trip that so many things are going to change in the years to come.” Among the highlights of the trip for Calum were: Q Digital signs They seemed to be everywhere at the show and they look like the next really big thing. There were so many different kinds there from large screens to projectors. Q Voucher systems I saw some really cool systems that connected seamlessly with your EPOS to verify whether or not they are genuine. Q Automatic till This was a really cool piece of

kit that you put your shopping in at one end and the belt moves through a 360° scanner and scans all your items ready at the other end. This will be next in supermarkets, I can tell! Q Smart smartphone cases Amazing smartphone cases that turn your phone into a scanning handheld PDA – for stock ordering, stock taking etc depending on your EPOS capability. Q Illuminated shelf labels They literally light up! Can you imagine illuminated shelf edge labels? These were a fantastic idea for convenience store. Attach it to a meal deal or another link save offer and when you pick up something in that offer the other items would light up. A fantastic way to boost sales and I could really see it taking off in the convenience market. It’s clear that Calum enjoyed his prize and his trip to London – and his eye for a techie innovation will no doubt keep him ahead of the pack in years to come. www.slrmag.co.uk

14/04/2016 15:45:18

Bread & Bakery Retailer of the Year | 2015 Rewards

Inside Business

BREAD FOR THE FINER THINGS IN LIFE It was a great SLR Rewards for Joanna and Franck Giacopazzi who won a trip to Las Vegas and a luxury trip to the famous Peat Inn in Fife.

ot content with picking up the overall Scottish Local Retailer of the Year Award and the trip to Las Vegas that went with it, Joanna and Franck Giacopazzi also picked up the Bread & Bakery Retailer of the Year award too. The husband and wife team had a hugely successful year last year but it was, as Joanna readily admits, “a long year where we both worked exceptionally hard”. So it’s fair to say that the trip to Las Vegas was more than welcome, as was the luxury trip to the famed Peat Inn in Fife that came with being named top of the bread and bakery pile. The privately owned restaurant with rooms is one of the very few Michelin-starred restaurants in Scotland. Famously created by renowned Scottish chef David Wilson in the 1980s, the restaurant is now owned and run by husband and wife team Geoffrey and Katherine Smeddle. “It’s a truly beautiful place and the food was absolutely outstanding,” says Joanna. “Being French, Franck loves his food too and we thoroughly enjoyed the whole experience. It was really, really special.” Most of all, however, it was probably most welcome as a break from working relentlessly in their outstanding Nisa store in Milnathort. The store was fully refitted last year and

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is a true gem of the Scottish local retailing industry – but keeping a store looking that good all year round takes a lot of effort, so a little break was just what the doctor ordered. “Just having a break to ourselves was brilliant,” says Joanna. “Nothing to worry about but enjoying ourselves and indulging

ourselves! The room was amazing, the food was outstanding, the service was exceptional – I can thoroughly recommend it to anybody who fancies a wee break.” It’s great to see hard working retailers like Joanna and Franck get some of the rewards they richly deserve.

“Being French, Franck loves his food too and we thoroughly enjoyed the whole experience.” APRIL 2016 | SLR

14/04/2016 15:45:20

Woodlands Local | Monthly Update

REFIT PLANS NEAR COMPLETION

The final major refit of Woodlands Local looks set to happen in the next few weeks as the store embarks on what will hopefully be a successful and profitable new era. BY ANTONY BEGLEY

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A3 / 1 : 50 SCALE : REFERENCE : SLR DATE DRAWN :10/02/16 DATE REVISED : DRAWING BY :WHOMEVER

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No 1 Lochty Road Kinglassie KY50YB Tel-01592-722342

fter over two years of running Woodlands Local, we are finally about to embark on the final stage of our overhaul of the physical look of the store. Over the last two years Store Area we have rebuilt much of the infrastructure within the store at very significant cost, but many of those changes – new electricity supply, epos system, back office, rewiring – were invisible to the customer. Only in the lastArea year have we been able to Store WC Hot Food Counter Servery Store Area afford to attach the& parts of the store that the customer sees. The first step in that process was the introduction of 8m of new open dairy deck chillers, followed by a major refit of the tillpoint and hot food section of the store. WC The final piece of the jigsaw is now almost WC Option 2 in place as we set out to lay a completely new floor and add all new shelving. When that’s complete, the store will to all intents and purposes be unrecognisable from the premises we took over around two years ago.

Ramp

DSS

Direct Shelving Service Ltd

WOODLANDSlocal

Inside Business

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No 1 Lochty Road Kinglassie KY50YB Tel-01592-722342

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Store Area

Woodlands Store Falkirk

ALL PLANS AND QUOTATIONS REMAIN THE PROPERTY OF THE DESIGNER, WHO RETAINS ALL COPYRIGHTS NO SHOP PLAN OR SHELVING ELAVATION EXAMPLE MAY ALL PLANS AND QUOTATIONS REMAIN THE PROPERTY MAY BE COPIED OR USED AS A BASIS FOR OF THE DESIGNER, WHO RETAINS ALL COPYRIGHTS QUOTATION BY OTHER PERSONS OR COMPANIES, NO SHOP PLAN OR SHELVING ELAVATION MAY WITHOUT THEEXAMPLE WRITTEN PERMISSION OF THE MAY BE COPIED OR USED ASDESIGNER A BASIS FOR OR COMPANY PROPRIETER. QUOTATION BY OTHER PERSONS OR COMPANIES, WITHOUT THE WRITTEN PERMISSION OF THE DESIGNER OR COMPANY PROPRIETER.

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This is clearly a significant undertaking and will involve us applying for a minor variation to our alcohol licence, which is being managed

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CLIENT:-

ALL PLANS AND QUOTATIONS REMAIN THE PROPERTY OF THE DESIGNER, WHO RETAINS ALL COPYRIGHTS NO SHOP PLAN OR SHELVING ELAVATION EXAMPLE MAY MAY BE COPIED OR USED AS A BASIS FOR QUOTATION BY OTHER PERSONS OR COMPANIES, WITHOUT THE WRITTEN PERMISSION OF THE DESIGNER OR COMPANY PROPRIETER.

CLIENT:-

We will be working on this project with FifebasedSCALE Direct run by Graham A3 / 1 :Service, 50 : Shelving REFERENCE : SLR Option 2 DSS Mason. a big old project and involves a DATEIt’s DRAWN :10/02/16 DATE REVISED : Direct Shelving Service Ltd major reworkBYof:WHOMEVER the entire store, with four key DRAWING CLIENT:challenges: A3 / 1 : 50 Woodlands Store SCALE : No 1 REFERENCE : SLR Falkirk Lochty Road 1. Moving the entire fresh & chilled section DSS DATE DRAWN :10/02/16 Kinglassie DATE REVISED : KY50YB Direct Shelving Service Ltd from the back to the front of the store WHOMEVER DRAWING BY : Tel-01592-722342 2. Moving the licensed section to the back of the store 3. Introducing an entirely new shelving CLIENT:A3 / Area 1 : 50 Woodlands Store Store SCALE : No 1 SLR REFERENCE : CLIENT:solution to the front half of the store Falkirk Lochty Road A3 / 1 : 50 Woodlands Store SCALE : No 1 DSS DATE DRAWN :10/02/16 Kinglassie REFERENCE : SLR Falkirk Road DATE REVISED : DSS Direct Shelving Service LtdLochty 4. Adding in an extensive range of KY50YB DATE DRAWN :10/02/16 Kinglassie WHOMEVER Tel-01592-722342 DATE REVISED :DRAWING BY : KY50YB Direct Shelving Service Ltd ‘Independent’ own label products from DRAWING BY :WHOMEVER Tel-01592-722342 Costcutter Option 2

14/04/2016 16:30:43

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Monthly Update | Woodlands Local

Inside Business

A WORD FROM THE BOSS

for us by Niall Hassard at Glasgow-based licensing specialists TLT. We have worked with Niall before at the store so he is familiar with the business and what we are trying to achieve. The licence applications is, we are assured, “a formality” as we will be both moving the alcohol section to the back of the shop and reducing the amount of space we dedicate to alcohol.

FRESH FOCUS The logic is simple for us: we sell decent quantities of alcohol but nothing truly significant as we are surrounded by supermarkets and discounters. It’s also not a massive footfall driver for us. Fresh and chilled however is in big growth for us – up 13% in the last few months alone – despite the fact it’s buried at the back of the store. Alongside this we intend to bring in an extensive range of Costcutter’s Independent own label lines, the first time we have stocked www.slrmag.co.uk

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own label products at the store. The hope is that the range appeals to shoppers looking for value for money lines although we do intend to adopt a strategy of having one own label and one premium option for as many products as possible. That way shoppers can choose the premium product at extra cost or the value line.

REWARDS CLUB We are also ploughing on with the Woodlands Local Rewards Club, running more and more promos every week and incorporating the Club into more and more activity in the store. We will soon be offering extra discounts on all promotions to Members, over and above the standard deal itself. A semi-permanent ‘5% off everything for Members always’ deal has also been introduced, although it doesn’t apply to tobacco, lottery or PayPoint.

March was another challenging month in our little corner of Falkirk with a number of staffing issues making an otherwise straightforward month into a bit of a nightmare at times. One of our long term members of staff has now left the team which leaves us recruiting new team members – which obviously comes with all sorts of training and support challenges. We’re also a little in limbo as we’re preparing for the final phase of the refit so we’re wary of making too many major changes as we’re basically going to gut the shop and start again in a few weeks. We’re doing a lot of work on planning the new ranges and planograms for every section of the store which is complicated as we’re not 100% sure of exactly how much space we’ll have for each category until the final plans have been drawn up. But it’s an exciting time and I’m looking forward to seeing what Woodlands Local likes with its new floor and shelving. We’ve also got a few tricks up our sleeve too when the refit is down in order to broaden the product range and add more reasons why customers should come to Woodlands Local rather than anywhere else in Falkirk. The Rewards Club continues to give us a few headaches here and there as we work out the best way of running it and recruiting new members but we’re learning all the time and I’m convinced it will be a simply amazing resource when it’s all fully bedded down and functioning. It’s quite an achievement for a wee store like ours to lead the way on a project like this. A world first, here in little old Falkirk!

Gerry APRIL 2016 | SLR

14/04/2016 16:30:45

Inside Business

Woodlands Local | Rewards Club

WOODLANDSlocal

DATA, DATA EVERYWHERE…

The Woodlands Local Rewards Club is really starting to take shape now and is generating some truly fascinating data. It also seems to be driving up basket spends, which is even better! BY ANTONY BEGLEY

hey say that every day is a school day – and when you’re doing a ‘world first’ project the way we are in Falkirk with our shopper engagement system, every day truly is a learning experience. The Woodlands Local Rewards Club is the first time that we know of on the planet that a convenience store has implemented a firstgrade shopper engagement solution to capture customer data in granular detail and send personalised, tailored communications to shoppers. So it’s no surprise we’re making lots of mistakes and learning lots and lots of things. But after several months of really hard work, particularly on the part of Velocity Worldwide, our software partners on this project, we are really starting to see some astonishing results. Velocity’s Darius software is the engine that drives the Woodlands Local Rewards Club and the software is genuinely impressive. The detail that it can provide on our Rewards Club members is eye-opening and is already being used to inform lots of the decisions we now make. There’s no question that the data we’re now receiving allows us to make far better informed decisions on all manner of things.

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HOW DOES IT WORK? In essence Darius works by allocating basket spends to Members’ individual customer profiles, as shown on the photo here. That way we can learn so much about our Members: what they buy, what times of day they visit the store, how often the visit the store, whether they buy into promotions and so on. Darius does this by taking a real-time live feed from the epos system and capturing all data literally as it happens. The system even captures non-members data on anonymous transactional reports. Despite the fact we clearly don’t know who the customer is in these anonymous reports, the information is nonetheless hugely useful in working out, for example, which day parts that specific products sell best in, or whether we should merchandise different parts of the store differently at specific times of day.

www.slrmag.co.uk

14/04/2016 16:30:46

Rewards Club | Woodlands Local

Inside Business

WIFI AND BEACONS With the system up and running for a few months we now have a big body of data and we are almost ready to move onto phase II where we start using Darius’ ‘React’ capabilities. The React functionality allows us to start sending out triggered or planned communications to customers when a pre-determined trigger action happens. This will be aided by the addition of new iBeacons into the store alongside free customer wifi. Once customers have registered once to use the new free wifi service the beacons will recognise them every time they enter the store from then on. (The beacons do this by picking up the ‘ping’ that smartphones repeatedly produce when looking for a wifi network.) So, for instance, we could tell the system to send a text to every customer that crosses the store saying ‘Welcome back to Woodlands Local! Good to see you again! Did you know we’re doing a special deal on hot food today?’ Or we could tell the system to send an email to, say, 100 customers who have ever bought a can of Coke to tell them that Coke is launching a new product and we’d like to give them a trial can free of charge as a thanks for being such a great customer. Even better, the system is then capable of tracking how many of those 100 came in for the free can and, better still, it can subsequently tell us whether those customers then went on to the buy the new product with their own cash. The system’s capabilities are limited only by our own imaginations.

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14/04/2016 16:30:48

Hotlines

Product News & Media Watch

Twix spread Mars The Mars spreads range has been further extended, with the introduction of Twix spread. The new spread brings more choice and brand strength to the category. Twix spread has metallic, eyecatching packaging, and the taste of chocolate and caramel with crunchy biscuit pieces. Twix spread, in a 200g glass jar, is available now at an rrp of £2.

Special occasion as Burton’s rolls out new pack format To tap into the on the go biscuit category, Burton’s Biscuit Company has relaunched Cadbury Special Occasions range in a new, contemporary portion pack format. The new range will see Dairy Milk, Crunchie and Wispa biscuits move to four snack packs of two biscuits per portion. The company has invested in new technology to flow wrap and carton the new pack format. David Costello, Burton’s Biscuit Company’s Head of Category & Shopper Management, said: “Introducing Cadbury Special Occasions in an on-the-go portion pack format will enable people to enjoy some of Britain’s best-loved biscuit brands in a highly convenient format.” The portion packs performed well in consumer research, with shoppers identifying the benefits of improved portion control and the opportunity to enjoy these household favourites when and where they choose. Cadbury Special Occasions was first introduced into the UK sweet biscuit market in 2010, driving over £18m of sales for the category. The most recent introduction of Cadbury Wispa Biscuits brought an incremental 900,000 shoppers to the Special Occasions range within the first year of launch.

Comfort Creations Tuberose & Vanilla Unilever A new Tuberose & Vanilla fragrance has been added to the Comfort Creations range. The new variant has a floral scent, blending warm notes of vanilla flower with the sweetness of tuberose. The new fragrance will be available in a 1.16l bottle, providing consumers with up to 33 washes.

Special Edition Sunflower & Pumpkin Seed Loaf Hovis

A new Special Edition Sunflower & Pumkin Seed loaf (rrp 95p) has been launched by Hovis, providing a brand new flavour for the Hovis portfolio. The new bread is rich in protein and fibre, and follows the brand’s new Hovis Seed Sensations Chia Bread.

SLR | APRIL 2016

Hotlines.indd 38

Aero mousse Caramel Nestlé A new limited edition caramel

mousse bar (rrp 62p) has been launched by Aero. The launch will be supported by a £5m media investment. Aero Mousse Milk was voted Product of the Year for Confectionery by a panel of 10,000 consumers. With sales of caramel flavoured chocolate increasing by 33% in the past five years, the flavour offers a broad appeal.

Cuisine de France pink lemonade muffin Aryzta Food Solutions A touch of spring will be added to Aryzta’s Cuisine de France range with a limited edition Pink Lemonade Muffin (rrp £1.09). The muffin is vanilla lemon flavour, filled with a smooth pink lemonade curd and topped with pink sugar crystals. The product will be supplied as thaw and serve, in cases of 30. The launch will also be supported by eye-catching POS.

Rubicon, KA and Sun Exotic prisma packs AG Barr Retailers can capitalise on rising demand for ‘on the go’ soft drinks with the launch of AG Barr’s new 330ml resealable cartons, or ‘prisma packs’, across three of its leading juice drink brands – Rubicon, KA and Sun Exotic. The move comes as ‘onthe-go’ shopper missions are shown to be driving the growth of the juice drinks category with 68% of sales now coming from single serve formats.

www.slrmag.co.uk

14/04/2016 15:16:48

Product News & Media Watch Extra Bottle Wrigley A new £2 PMP 46 pellet bottle has been launched across Wrigley’s best-selling core flavours, Peppermint and Spearmint. The launch of the new PMP will help to improve rate of sale, as purchase intent in the gum category has been shown to significantly decline when priced above £2. The launch will be supported with POS material and secondary displays, as well as a TV campaign.

PG Tips green and fruit teas expansion Unilever Seven new flavours have been launched in the PG Tips green and fruit and herbal ranges, tapping into the increased consumer demand for new flavours. The green tea flavours include Strawberry Cupcake, Lemon Pie and Orange, while the new fruit and herbal flavours are Apple & Cinnamon, Honey & Lemon Balm, Pear & Caramel and Cool Citrus. Each new PG Tips flavour has an rrp of £1.39, with four products per case.

Seriously Good Mayonnaise Heinz A new Seriously Good Mayonnaise has been launched by Heinz, encouraging customers to ‘upgrade their mayonnaise.’ The launch is backed by a £7m marketing investment, revealing how everyday foods can be made ‘seriously good’ with the new Heinz mayonnaise range. Consumers can choose from two varieties, Standard or Light, available in both jar and squeezy bottle formats.

Sunbites Wholegrain Popcorn Walkers The launch of Sunbites Wholegrain Popcorn (rrp 89p) aims to tap into the fastest growing segment within savoury snacks to help retailers take advantage of this emerging popcorn trend. The range is available in Sweet & Salty, Lightly Sea Salted, and Sweet Caramel flavours.

MEDIAwatch

Hotlines



P&G relaunches ShelfHelp website ShelfHelp, P&G’s category management advice website, has been relaunched to ensure it remains an essential business tool for convenience retailers who want to grow their Laundry, Health & Beauty, Homecare and Baby category sales. The website has received a technology upgrade means it can be accessed by any device.

Football legends team up for new Walkers Tear ‘n’ Share advert Toffee & Popcorn Galaxy Duet Mars

Building on the success of Cookies & Cream, and Caramel & Shortcake, a new Toffee & Popcorn variant has been added to the Galaxy Duet range. It consists of two fingers of Galaxy chocolate — one filled with toffee sauce, the other containing crumbly, salted toffee and popcorn pieces. The launch will be supported with a TV advert.

Tic Tac special edition Ferrero Tic Tac Popcorn has been added to the Tic Tac range. The launch comes as part of a wider flavour innovation drive to be implemented throughout the year. Retailers will be able to download free POS by visiting the Ferrero trade website. Ferrero says the product will have huge appeal with the brand’s core audience. Tic Tac Popcorn will be available in both 18g (rrp 58p) and 49g (rrp £1.31) pack formats.

Gary Lineker is joined by old friends Alan Hansen and Jamie Redknapp for the launch of Walkers Tear ‘n’ Share. Revealing a new pack innovation that sees the bag turn into a bowl, the new advert features Gary as he hosts a lads’ night in with the familiar faces. The crisps have an rrp of £1.99.

Jacob’s Crackin’ £15m re-launch A new £15m campaign has been launched by Jacob’s. Three TV adverts will be aired throughout the year, launching with Jacob’s Cream Crackers and Jacob’s Mini Cheddars. Nine out of 10 British households purchased savoury biscuits in 2015, and seven out of ten purchased Jacob’s products. The campaign will be accompanied with online activity.

Mondelez wants you to Open Up with Oreo A new TV commercial, ‘Open Up with Oreo’, is the latest instalment of Oreo’s ongoing ‘Wonderfilled’ campaign. The ad forms part of a £3.1m marketing investment and video-ondemand and social media is also planned. The campaign will feature on promotional packs of Oreo Original 154g packs.

McVitie’s sweeet campaign and mobile app McVitie’s has launched an iKitten app and a new advert that sees the return of the British Blue Kittens. The advert has been created to support McVitie’s Chocolate Digestives. The app allows customers to create, personalise, and share their own McVitie’s sweeet British Blue Kitten via their mobile phone.

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

Hotlines.indd 39

APRIL 2016 | SLR

14/04/2016 15:16:53

Tobacco

Feature

THE COUNTDOWN BEGINS… As the countdown to the implementation of May 2017’s EUTPD2 deadline begins in earnest, there’s a lot going on in the tobacco category as retailers prepare for the new rules while manufacturers jostle for position – and everyone unites against the anti-illicit trade. BY ANTONY BEGLEY

WHAT WILL BE BANNED IN MAY 2017? Q All 10 packs – the new minimum will be 20s Q All 17/18/19 packs – the new minimum will be 20s Q All 8g / 9g / 12.5g / 20g / 25g packs of RYO tobacco – the new minimum will be 30g Q All price-marked packs Q All branded packs

SLR | APRIL 2016

Tobacco.indd 40

ext month the countdown to the implementation of the most important chunk of the EUTPD2 legislation (from a retailer’s point of view) kicks off in earnest. May 20th 2017 sees The European Union Tobacco Products Directive (EUTPD II) and Standardised Packaging legislation come into full force in convenience retailing and marks possibly the most significant set of changes to hit the category yet. Unsurprisingly, that countdown has seen a flurry of activity from the major manufacturers as they jostle for position before the draconian changes place and it becomes considerably more difficult for them to market their perfectly legal products and differentiate themselves from their competitors.

EUTPD II / STANDARDISED PACKAGING With confusion reigning around what EUTPD2 does and doesn’t mean for retailers, the main suppliers have worked hard to clarify the picture for retailers. Imperial Tobacco has launched its ‘Partnering for Success’ initiative which has been designed to offer retailers guidance around the legislation. As part of that initiative, the company has released a video offering easy-to-follow guidance on the legislation. Retailers are able to view the video at the trade website www.imperial-trade.co.uk or on SLR’s www.shopflix.tv site.

The video explains to the trade how the impending legislation is likely to affect the tobacco category – from the key differences between current and standardised packs to significant dates. It also addresses issues around potential retailer and customer confusion in the run up to May 2017. Melvin Ruigrok, General Manager of Imperial Tobacco UK and Ireland, comments: “Partnering for Success reflects our continuing commitment to working together with the trade to secure the ongoing success of the category in a highly regulated environment. It will also ensure our sales force becomes the go-to source of expertise, authority and reassurance around the EUTPD II and Standardised Packaging legislation. “Down the years the tobacco industry and the trade have a long history of working together through changing tobacco legislation, ensuring the category remains both a key footfall driver and profit generator.” Imperial Tobacco has not yet given up hope of over-turning the legislation however, or at least having it softened. Duncan Cunningham, Imperial Tobacco UK&I’s Head of Corporate and Legal Affairs, adds: “We have recently put our case forward in the courts on behalf of our employees, our retailers and our investors. We now await the results of these challenges, which are due soon. In the meantime, as a responsible business we also recognise the need to help prepare our partners for compliance.” In a similar vein, BAT UK has launched MOR£, its Trade Engagement programme. Covering 20,000 Independents & Symbol www.slrmag.co.uk

14/04/2016 15:54:15

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18/03/2016 14:17

Tobacco

Feature

DATES YOU NEED TO KNOW… Q May 2016: Start of manufacturing ban Q Jul 2016: PMPs start to run out Q Jan 2017: 10s, 18s, 19s start to run out Q May 2017: Start of retail ban Q 2020: Menthols banned

outlets, the programme is the largest of its kind for any tobacco company in the UK. # The positive news is that 20th May 2017 is still some way off, so there is still plenty of time for retailers to familiarise themselves with what the changes will mean for them and their customers. One thing all of the major manufacturers have in common is a desire to reassure retailers that the massive tobacco category – now worth around £15bn – remains a hugely resilient and important category. Andrew Miller, Head of Field Sales at Imperial Tobacco UK, outlines just how important the category is: “Tobacco continues to be a key offering in convenience stores, with 82% of retailers recognising its importance to the overall success of their businesses. Some 39% of adult smokers say tobacco is their main driver to visit, with tobacco shoppers making an average of 4.5 store visits per week. Meanwhile, the average spend by a tobacco shopper is £10.57, almost double that of a non-tobacco shopper (£5.45).”

NEW NUMBER ONE As that competition heats up, JTI has just laid claim to taking over the number one UK manufacturer spot, according to the latest statistics from Nielsen to December 2015. The company says that sales momentum and effective partnerships have been responsible for it securing a 42.4% share of the £15bn UK tobacco market. JTI’s portfolio of best-selling brands now represents an ever increasing contribution to retailer tobacco sales. The Nielsen stats reveal JTI as having the No. 1 cigarette brand in Sterling and the No. 1 RYO brand in Amber Leaf.

BIG TRENDS The over-riding trend in tobacco 42

SLR | APRIL 2016

Tobacco.indd 42

remains the drive to value with lower priced cigarettes continuing to rule the roost. Imperial Tobacco’s Miller comments: “The value for money increasingly demanded by price-conscious adult smokers means over 30% of all cigarette packs sold in the UK now stem from the sub economy price sector. That’s up 23% year-over-year (YOY).” At the same time, the importance of capsule variants continues to grow with Miller stating that one in 10 cigarettes purchased in the UK is now a capsule variant, up 23% YOY. There has been no shortage of product launches from the main UK manufacturers in recent times, despite the difficulties in bringing products to consumers in a dark market, and that trend shows no sign of waning. In fact, it looks likely that 2016 will see many more launches as the manufacturers attempt to recruit new adult smokers into their brands before the arrival of plain packaging in May 2017. All manufacturers have continued to react to developments in the market with a raft of new launches and range refreshes across factory made cigarettes and RYO tobacco. Among the most recent launches was JPS Triple Flow in December, featuring unique ‘easy draw’ channels, with the new, high quality smooth blend enhanced by an innovative filter. Each cigarette is also wrapped in a special paper, designed to actively reduce the amount of smoke emitted – which may result in less smell. JPS Triple Flow is available in King Size 19s with an RRP of £7.49. PMPs are also available at £7.35. Despite increasing excise duty rates coupled with adult smokers seeking greater value from their tobacco purchases, around 1 in 4 packs of cigarettes sold today still come from the premium and sub-premium price sectors. The enhanced margins provided by these brands means they continue to be ‘mustwww.slrmag.co.uk

14/04/2016 15:54:17

Tobacco

Feature

stocks’ for retailers in 2016 and beyond. Alan Graham, General Manager at Santa Fe Natural Tobacco Company UK says: “The largest brands in each sub-category, the cheapest and truly niche products stand out. Natural American Spirit is indeed truly niche as the UK’s largest additive free tobacco brand and will continue to be asked for by consumers.” Graham believes that “stores need to organise themselves and their staff so they can continue to offer best service” and that product knowledge, 100% availability and stocking the right range should see retailers manage the new restrictions effectively.

RYO In the RYO category, trends over the past few years have seen a marked increase in the number of adult smokers who are shopping ‘little and often’, and who are also seeking a quality product with a lower out of pocket spend. For instance, currently more than 44% of RYO retail sales in the UK are 12.5g or below – a rise of around 15% YOY. It is expected this trend to continue. Imperial Tobacco’s GV Smooth family continues to be the UK’s fastest growing RYO brand and was enhanced in January with the launch of GV Midnight and GV Sunrise in 10g formats. Since March they have also been available in 30g packs, including papers at at RRPs of £3.75 and £10.75 respectively. PMPs are also available at the same price. BAT have

IMPERIAL TOBACCO UNVEILS JPS CRUSHBALL Imperial Tobacco launches JPS Crushball this month in King Size 19s, replacing JPS Duo. This economy cigarette combines the taste of a smooth Virginia tobacco with a crushball in the filter that – when activated – releases a burst of fresh flavour. Imperial Tobacco Brand Manager Emma Stew says: “The crushball sector continues to grow, with 1 in 10 cigarettes purchased in the UK now a crushball variant. With Player’s Crushball enjoying huge success in the Sub Economy sector, we wanted to complement JPS’s range in the Economy sector with a smooth crushball offering in line with consumers’ preferences. The RRP is £7.69 and the product is available in plain and price marked packs at an introductory price of £7.20.

SLR | APRIL 2016

Tobacco.indd 44

added an additional product upgrade to the Cutters Choice range: making the pack resealable and adding papers. Harry Barnes, Brand Executive for OTP said the change will give smokers “more value.” “We’re responding to the adult smoker’s expectation that manufacturers will help them keep their tobacco fresher for longer with the re-seal packs,” he adds. Barnes advises retailers to stock the full Cutters Choice range. He says: “It comes in a number of tastes and sizes that will allow a retailer to serve any adult RYO customer. If the adult smoker is looking for a richer taste then the Exquisite Blend will work for them; if their priority is out of pocket price – then the 10g offers great value; or, if they are part of the fastest growing group of adult tobacco consumers then they are likely looking for a 20g pack.” While smaller packs tend to be more prevalent in independent stores it’s important for retailers not to discount stocking larger sizes either. With more than one in five packs of RYO tobacco sold being the 50g variant, larger offerings are becoming increasingly relevant as they offer adult smokers excellent value for money. Another trend among adult smokers remains ‘dualing’; smoking RYO during the week but switching to cigarettes at the weekend – and this also looks set to continue.

ANTI-ILLICIT TRADE An area where all retailers, manufacturers and wholesalers can work together is in helping to stamp out the anti illicit trade. This task looks set to be made infinitely harder come May 2017 thanks to the introduction of plain packaging, the so called forger’s dream. Peter Nelson, Imperial Tobacco Anti-Illicit Trade (AIT) Manager, comments: “Organised criminal groups will have identified this legislation as a huge opportunity to increase their ‘market share’. Australia has – according to a KPMG report – witnessed a 3% rise in the illicit tobacco trade since the introduction of Standardised Packaging in December 2012.” BAT’s Anti-Illicit Trade Team offers the public tips on how to spot a fake: Q Print Type: Counterfeits are commonly printed in litho print. Use a magnifying lens to look at the print pattern under magnification. Q Glue Pattern: Machine-made packs have consistent glue patterns, hand packed packs www.slrmag.co.uk

14/04/2016 15:54:19

JTIUK-16-3266_RYO_A4_Scottish Local Retailer_297x210_HR.pdf

22/03/2016

10:24

CHOOSE VALUE •Value RYO is the fastest growing* RYO sector •Worth over £380 million in retail sales** * Nielsen Market Track YTD Jan 16 vs. YTD Jan 15 ** Nielsen Market Track MAT Jan 2016 Price Marked Packs may vary

www.jtiadvance.co.uk – developed with you, for you.

Inside Business

SLR Bg Giveaway

PART

G N I R E PARTN C C E SS… U S R O F

WHAT IS HAPPENING? In 2014 the European Union adopted the revised Tobacco Products Directive – or ‘EUTPD II’. It’s a series of new rules regarding the way tobacco products are manufactured, packaged and sold within the EU. The UK Government has also chosen to add extra legislation in the form of Standardised – or ‘plain’ – Packaging. This new legislation will affect everybody involved in the tobacco category, including you. As a responsible business we recognise the need to prepare for compliance. The result is Partnering for Success, a programme to advise and support retailers through EUTPD II and Standardised Packaging.

WHEN IS IT HAPPENING? Every year SLR likes to give our readership

Examples of current Examples of standardised pack designs. the opportunity to fill their stockroom with pack designs. TRANSITION For illustrative purposes only, and subject to change. thousands of pounds worth of free stock. PERIOD In its fourth year running, SLR’s Big Giveaway remains an exciting chance for retailers. The rules are the same: we have MAY 2016 MAY 2017 teamed up with some of the best-selling 20 20 brands in convenience to provide a range From now until 20 May From 20 May 2016 standardised From 20 May 2017 retailers are only of products that any retailer would want to 2017 retailers are allowed packs will begin to appear in the market. allowed to sell standardised packs getcurrent their hands to dothis to time and 20 May 2017, retailers • Cigarette packs must be 20 sticks or more to sell packs on. All you have Between • Roll-your-own tobacco pouches must be 30g or more enter is complete the form on this andto sell both current packs and arepage allowed • Price Marked Packs no longer allowed send it back to us freepost. standardised packs We’ll pick one entry from our SLR hat E START and that retailer will scoop every product WELCOM ART ST on the huge list above. Not only that, the TY AVAILABILI Our START* pack updates ensure retailers have all the latest legislative team at SLR will personally deliver it to informationyour andstore. category advice at their fingertips. Good include luck! a case study focusing on the impact of Standardised The latest updates PFS_START Welcome Letter_aw_Litho.pdf

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is our commitment to you which will enable us to support you and your business through future legislative changes within the tobacco category.

PA R T N E R I N G F O R S U C C E S S

As a valued trade partner of Imperial Tobacco we would like to provide you with this START pack which will enable us to communicate with you and provide you with up to date information over the coming months and years. What is your START pack? The START pack is a new guide from Imperial Tobacco designed to keep you updated with all the latest legislative and category information. This pack is our tool for you, based on the information you’ve told us you need and together we will ensure that your business is a success. Over the coming months your rep will provide you with all the information you need to navigate the tobacco category.

What’s in it for my shop? We will provide you and your staff with regular updates for your packs to ensure that you are prepared ahead of any legislative changes. It is important that you keep this pack safe so that we can add updates as and when we have them. Forthcoming legislation On 20th May 2014 draft EUTPD text was adopted by the European Union restricting pack size and formats. In addition, earlier this year MPs voted in favour of the introduction of standardised packaging for tobacco products. The new legislation is scheduled to take effect from May 2016*. We will be communicating with you regularly through the START packs to help steer you through these changes and future legislation.

Packaging legislation on an Australian retailer, plus recent Imperial Tobacco Anti-Illicit Trade initiatives. Many retailers have been provided with START packs by their designated Imperial Tobacco rep; digital versions can be downloaded from www.imperial-trade.co.uk or via the ignite website.

*For the avoidance of doubt, the content of this pack is without prejudice to Imperial Tobacco’s position that Standardised Packaging Regulations are unlawful and therefore subject to the outcome of Imperial Tobacco’s ongoing legal challenges

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SLR | APRIL 2016

Big Giveaway.indd 28 AD A4 DPS (Part 2)_AW.indd All Pages 41394 PFS_ TRADE

www.slrmag.co.uk 14/04/2016 16:55:00

SLR Bg Giveaway

Inside Business

THE IMPORTANCE OF TOBACCO TO YOUR BUSINESS xxxxxxxxx

Tobacco’s role in independent retail will remain in a standardised packaging environment. Tobacco attracts shoppers to your stores: Tobacco will remain a footfall driver. A wide range and high availability are drivers for success – more than 1 in 10 potential shoppers will walk out if their brand of choice isn’t in stock1.

Tobacco shoppers outspend other shoppers: Adult smokers don’t just buy tobacco products. Their basket spend is more than twice as much as the average convenience shopper per year1.

PLANNING AND PREPARING FOR CHANGE Imperial Tobacco’s experiences in Australia, which introduced standardised packs in 2012, suggest that retailers who plan and prepare for the legislation will be putting themselves in a strong position for a successful transition. Improve your tobacco offering by focusing on the following: Aim for maximum availability: By focusing on high availability, you’ll build a loyal shopper base who’ll return to your store time and again. Stock a wide range: As well as premium brands, our range also contains value-orientated alternatives. A wide range will meet all of your customers’ needs. Let’s work together: By combining your retail experience with the category knowledge of your Imperial Tobacco sales representative, you’ll optimise your tobacco range, protect availability and improve gantry navigation. Name: Job Title:

Imperial Tobacco continues to work with the trade to prepare and plan for a Company/store name: smooth and successful transition between 20 May 2016 and 20 May 2017. To find out more, retailers should talk to their Imperial Tobacco sales Address: representative, while taking advantage of free resources including our START packs and MyTobaccoPriceList.co.uk.

D N A I I D P T U E H G U O R G H N I T G A … K C A P D E S I D R A D N STA Phone number: Email Address: Twitter:

Is your shop licensed?

Are you on the Scottish Tobacco Retailers Register?

Would you like to continue to receive a copy of SLR?

YN

Sources: 1 ITUK estimates based on McKinsey Shopper Research 2013. * For the avoidance of doubt, the contents of this document and the START packs are without prejudice to Imperial Tobacco’s position that the Standardised Packaging of Tobacco Products Regulations 2015 are unlawful and therefore subject to the outcome of Imperial Tobacco’s ongoing legal challenges.

www.imperial-trade.co.uk

www.slrmag.co.uk Big Giveaway.indd 29

APRIL 2016 | SLR

14/04/2016 16:55:02 24/02/2016 15:32

Feature

Tobacco

have glue patterns that are messy and less uniform. Open the side of the pack to look at the glue pattern. Q Production Code: A code should always be present on the base or side of the pack. Q Check the Spelling: Counterfeits often display spelling errors. Carefully read the printed information on the pack. Q LIP Bands: All cigarettes in Europe should have bands in the cigarette paper. Running a highlighter inside the paper will make the bands visible if they are present.

£15BN Value of the tobacco market

39%

Smokers who say tobacco is their reason for visiting

£10.57

Average spend of a tobacco shopper

SLR | APRIL 2016

Tobacco.indd 48

To raise awareness among shoppers of the damage caused by the illicit trade, Imperial Tobacco’s AIT campaign ‘Suspect it? Report it!’ has launched a dedicated new website and Twitter feed. The website – www.suspect-it-report-it. co.uk – and Twitter feed – @suspect_report – encourage consumers to consider why they should care about illegal tobacco, often wrongly portrayed as a victimless crime. Peter Nelson, Imperial Tobacco AntiIllicit Trade Manager, comments: “The manufacture and sale of illegal tobacco is a series of substantial illegal businesses that drain over £40m per week from the Treasury, according to HMRC figures. That puts retail businesses at risk and brings crime into our communities.” If you have any suspicions around the sale of illegal tobacco in your area, please call either the Customs Hotline on 0800 59 5000, or contact your local Trading Standards or Police.

Imperial Tobacco offers the following advice for retailers looking to optimise their returns from the category: Q RANGE: Consumers are becoming ever savvier, demanding premium quality at a bargain price. In addition to more traditionally ‘marquee’ brands, retailers should stock a good range of best selling value-orientated alternatives. Q AVAILABILITY: Research suggests the average independent store runs at around 80% availability. Last year’s Display Ban demonstrated that if retailers stock the right range and ensure availability remains consistently high, they’re likely to gain an advantage over less prepared traders and actually grow their tobacco sales. Retailers should use official planograms to improve their tobacco offerings; they’re designed based on the latest product and category performance, and aid customers with the navigation of gantries while also optimising ranging and protecting the availability of retailers’ top-selling SKUs. Q PRICING: Competitive pricing remains one of the most important tools in retailers’ armouries, with 63% of shoppers considering price when making a purchase. To ensure pricing is competitive, retailers should take advantage of free Imperial Tobacco resources like MyTobaccoPriceList.co.uk. The site allows retailers to swiftly search through all of the tobacco products available in the market, regardless of manufacturer, before creating their own personalised price lists for instant in-store use. Q TOBACCO AS A FOOTFALL DRIVER: Despite ongoing legislative challenges, the tobacco category remains a crucial footfall driver in independent retail; more than 1 in 10 potential customers will leave a shop if their brand of choice is not in stock. If retailers ensure they stock a range of products from each sector – from premium through to sub economy, they’re more likely to build the foundations of a loyal customer base. Q THE IMPORTANCE OF BRAND: Having fostered years of trust among customers, the most familiar, well-known brands also consistently rank often among the top selling SKUs. Therefore – while it might seem obvious – retailers should make sure they’re well stocked on this front, too. Retailers should also pay attention to their EPoS system to keep track of what’s selling well, and what isn’t. Q USE YOUR REP: they are an invaluable source of knowledge. Retailers should take advantage of their sector expertise by asking them about the latest industry news, including any recent product innovations plus what brands and formats are proving popular in their particular region. Retailers can also visit trade websites like www.imperial-trade. co.uk and retailer reward programmes like www. imperial-ignite.co.uk which also provide excellent industry resources.

www.slrmag.co.uk

14/04/2016 15:54:19

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For further information please contact: enquiries@sfrti.com For the information of tobacco buyers only

Smoking seriously harms you and others around you

Feature

E-Cigarettes

EUTPD2:

AN OPPORTUNITY, NOT A THREAT? With a year till the new EUTPD2 legislation begins to truly affect retailers, there’s still plenty of time to prepare – and in the e-cigarettes category there’s plenty of reasons to see the changes as an opportunity rather than a problem.

NEW E -L I T ES CURV BY ANTONY BEGLEY

E L E C TRO N I C C I G A R E T T E WHAT AND WHEN… Under the new legislation the following rules will be in place from May 2017: Q E-cigarettes will be required to have health warnings covering 30% of the pack Q There will be a 10ml maximum volume for e-liquid bottles, and a 20mg/ml maximum concentration of nicotine in e-liquids Q E-liquids in cartridges and single-use devices will be subject to a 2ml maximum volume Q E-cigarettes that are granted a medical license will be subject to different regulations.

most of the changes – and we think retailers should too. We believe the legislation will improve the quality of products available in the market, leading to increased consumer trust and confidence in buying e-cigs. “E-cigarettes offer retailers excellent profit margins so our message is simple: know how to recognise EUTPD compliant products, get your range right, understand the category so you can talk to your customers about it, and make the most of the sales opportunity on offer.”

PRODUCT INNOVATION Despite the new legislation however, retailers will still be able to: Q Continue to sell e-cigarettes and accessories Q Actively display e-cigarettes and accessories – and these don’t need to be behind the counter Q Promote e-cigarettes and accessories Q Advertise in consumer and retail brochures Q Put up posters in and around their stores Q Have display units for products Q Advertise and sell on retailer websites

21M

E-LITES RETAIL he VALUE implementation next month SALES IN 2014* of the first phase of the European

Union’s Tobacco Product Directive 2 has sparked a flurry of activity and discussion in the trade and mainstream press, much of it negative and panic-ridden. This is despite the fact that to all intents and purposes nothing will change for W.E-LITES.CO.UK retailers (or consumers) until May 2017, over 12 NIELSEN MARKET TRACK 2014 YTD months from now. Much of the panic is down to the simple fact that the changes are not yet well understood, dvance.co.uk - developed with you, for you. but many e-cigarette manufacturers already believe that the new legislation could represent an opportunity for retailers rather 297x210mm Ad s3.indd 1 than a challenge. The regulation affects the marketing, production and sale of e-cigarettes and will clearly impact the UK retail landscape within which they are sold – but leading brands like blu are already publicly encouraging retailers

STOCK UP NOW

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to welcome the changes.

KEEP CALM The legislation comes in three stages with the first two stages really only affecting suppliers. Only when May 2017 arrives will retailers have to cease sales of non-compliant stock. Marc Michelsen, SVP Communications and Public Affairs at blu, says: “Traditional tobacco is already a highly regulated industry, so many retailers may have heard the news of legislation reaching the e-cigarette category with dismay. However, at blu we welcome

In a category as new and fast growing as e-cigarettes, change will be the one constant for the foreseeable future. JTI’s Head of Communication Jeremy Blackburn says: “The e-cigarette category offers an emerging profit opportunity for retailers and as consumer knowledge and understanding of the market increases, it will become more important for retailers to make sure they are up to speed with it “The technology of e-cigarettes is constantly evolving so retailers should expect to see a great deal of new product development in the category.” JTI is encouraging retailers to stock a good range of well-known brands and offer a consistent, focused range of disposables, rechargeables and tanks. And the size of the prize available is huge for retailers that get it right is huge. Blackburn explains: “In the last two years the e-cigarette market has increased by 22% according to Nielsen figures, with TNS Tracker figures from 2015 showing that 2 million existing adult smokers now use them. The retail sales

23/07/2015 15:08

“We believe the EUTPD2 legislation will improve the quality of products available, leading to increased consumer trust.” MARC MICHELSEN, SVP COMMUNICATIONS AND PUBLIC AFFAIRS, BLU

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Feature

E-Cigarettes

value of e-cigarettes in the UK last year was almost £158m, according to Nielsen.”

SAVOUR THE FLAVOR Another area of growth highlighted by Louise Stamper, Commercial Director at VIP, is the rise of new flavours. She says: “There’s an increasing demand for new flavours, which has had a really big impact on the market. We’re seeing new flavours coming to market on a regular basis, as customers look at ways to keep their vaping experience fresh. There are also seasonal trends that retailers should be aware of, such as fruit flavours being more popular over the summer. While in the winter, people tend to choose warmer, spicier flavours, such as coffee and cola, while summer sales have shown lighter, fruitier

flavours, such as strawberry and watermelon, to be more popular.” Jennifer Roberts, VP Customer Marketing blu UK, adds that 70% of blu sales are now through the open system and liquids, which is a big shift from a year ago. “We’ve listened to consumer feedback on our closed systems and upgraded the range – in kits, cartridge refills and disposable formats – to provide the vaping experience of an open system but with the convenience of a cartridge format.” VIP recently undertook a review of market trend, which suggests that over the next three years, the number of vapers and smokers is set to equalise, making them key for retailers, particularly if the margins available remain anywhere near their current level.

MERCHANDISING ADVICE JTI offers the following merchandising advice to retailers. Q Visibility is key – ensure e-cigarettes are located prominently in store, preferably on the countertop in a bespoke countertop unit, e.g. Curv MDU – keep your unit stocked up with consumer information leaflets to keep your vapers fully informed about products. Q It’s vital that the e-cigarette merchandising unit remains well stocked to help guarantee repeat visits from local customers and maximise the profit potential of the category. 100% availability 24/7 is key so remember to re-stock each morning and prior to peak traffic times. Q To ensure shoppers are aware of the choice and range on offer, it is important to keep a clear and tidy e-cigarette display. Q Ensure staff are well trained on how to educate customers about the e-cigarette category and range stocked in store. Visit www.jtiadvance.co.uk for further information on the product range. Q Take time to understand what’s happening in the e-cigarette category and speak to your JTI sales rep to further boost your knowledge. Q The growing e-cigarette category continues to evolve, so support new product launches, and SKUs in store as these have been developed in line with trends in the market place to help maximise profit opportunities.

FORMAT BREAKDOWN JTI offers the following guide to how the most popular formats and outlines how the category is moving from disposable formats to liquid-based formats. Q There are currently three key device types available within the e-cigarette category: disposables, rechargeables and tanks. Q Rechargeables are still leading the category with 40.5% Share of Value [Nielsen]. Over half of users buying a refill at least once a week [TNS Omnibus]. Q Tanks are growing massively in popularity, now accounting for over 38.4% Share of Value [Nielsen]. They have grown by 223% over the last year [Nielsen]. Q 85% of vapers claim they use tank products [TNS Omnibus] so this is an important area of growth for the category. Q Vapers tend to switch between a variety of e-cigarette flavours rather than sticking to only one. Maintaining availability and range of flavours in store will continue to be of critical importance for retailers looking to maximise profits from the category.

EUTPD2 E-CIGS TIMELINE

Q 20th May 2016 – The introduction of advertising and promotion restrictions Q 20th Nov 2016 – The production of all non-compliant stock must cease (affecting size, ingredients, consistency of dose and packaging with health warnings) Q 20th May 2017 – The sale of non-compliant stock is no longer allowed

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BLU LAUNCHES NEW AD AND NEW PRODUCT FORMAT Blu has launched a new multi-million pound marketing campaign at the same time as it announced a major upgrade of its closed system product and packaging. Under the tagline “Just You & blu” the campaign will span TV, print ads, bus stops and billboards, as well as digital content and aims to have a broad reach of the target audience. The main part of the campaign will run in the UK for six weeks up until the new UK advertising restrictions come into effect. The packaging upgrade begins rolling out this month and features enhanced technology and a sleek new design to deliver an improved vaping experience. for consumers and greater stand out on shelf. The new blu closed system products – blu GO and blu PLUS+ – provide consumers with significant technology upgrades, including enhanced vapour delivery and extended battery life.

EUTPD2 AND YOU SLR is hosting a comprehensive hands-on seminar on the new legislation and how it will affect your business later this month. The event is supported by blu and features a great line up of speakers to discuss all aspects of the legislation as well as highlighting the many opportunities that exist in the e-cigarettes category, and how retailers can exploit them. Q DATE: THURS 21 APRIL Q VENUE: 200 SVS; 200 ST VINCENT STREET, GLASGOW, G2 5SG Q TIME: 10.30AM – 3PM Q LUNCH & NETWORKING DRINKS INCLUDED To book your FREE place, email Cara at cbegley@55north.com

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E - L I T E S CURV E L E CTR O N IC CIG A R E T T E

STOCK UP NOW

e-lites.co.uk

For more information on E-Lites Curv, retailers should speak to their local JTI representative or call the helpdesk on 0800 112 3401. Retailers can also visit www.jtiadvance.co.uk for further information, support and guidance on tobacco and e-cigarette retailing.

Feature

Big Night In

sales win with

BIG night in More retailers are beginning to accept the concept of ‘mission’ rather than ‘category’ shopping, and with Big Night In being one of the most widely shopped missions, having a dedicated BNI fixture is very much a part of any good convenience store.

BY ÉMER O’TOOLE

ith 47% of consumers spending less money on out-of-home entertainment and 50% eating out less, the Big Night In (BNI) mission remains a key sales opportunity, as consumers are even more conscious of their spending. The BNI mission is growing as a trend, with particular focus on sharing bags, which are great for families or groups of friends looking to enjoy and share a sweet treat during a night in. Both Skittles and Starburst are available in sharing bag formats, ideal for this popular occasion. Value for money is a key factor for shoppers looking for BNI products. PMPs not only reassure shoppers they are getting the best value for money — larger formats also provide the perfect chocolate treat for a night in with

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rustlers fp trade advert 210x297mm SLR Feb16.pdf

02/03/2016

09:00

Feature

Big Night In

£944M total value of the confectionery sector.

WRIGLEY’S GUIDE TO BIG NIGHT IN SALES 1. Visibility is key and popular confectionery items should be located at eye level to take advantage of incremental sales. 2. Availability is crucial. Remember to restock each morning and prior to peak traffic times. A fully stocked display will help maximise your profit potential and guarantee repeat visits from customers. 3. In order to ensure shoppers are aware of the choice and range on offer, it is important to keep a clear and tidy confectionery display – this will also make restocking easier and quicker. 4. Encourage additional purchases using cross category promotions, such as ‘buy a sandwich, drink and confectionery for £3.’ Single price point ‘Big Night In’ promotions are growing in popularity, allowing shoppers to satisfy all of their needs in one go. This includes ‘dine in for two’ meal offers and in store deals which include a DVD, Confectionery Pouch, e.g. Skittles or Starburst, and drink for a reduced cost 5. Rotate stock regularly so that older stock is sold through first. 6. In order to raise sales and capitalise on early consumer demand it’s vital that independent retailers champion new products in store. 7. Make the most of your confectionery display by using eye-catching POS materials to encourage customers to buy on impulse.

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friends and family. Mars’ range of popular PMPs includes its £1 Treat Bags, with Maltesers, Galaxy Minstrels and M&M’s all available at a set price, as well as the large Galaxy £1 block lines. Mars has added a new combination to its Galaxy Duet portfolio — Toffee & Popcorn. Chocolate is the biggest category by value in the evening, followed by biscuits — crisps and mints also feature in the top 10. Following in the footsteps of the Galaxy Duet launch last year, the latest Galaxy variant brings together two indulgent flavours that consumers can enjoy separately, or combine to create the perfect harmony. In the impulse channel, PMPs are growing across all soft drinks categories, and both the Vimto and Levi Roots ranges include great value PMPs for a night in. The larger Vimto 2l Fizzy and Vimto 725ml diluted formats are also available as PMPs, at £1.59 and £1 PMP respectively, to provide great value for retailers. The rise of the health-conscious consumer means that light soft drinks appeal to those planning a night in. Independents can make the most of this growing demand for healthier choices by focusing on zero calorie products such as Diet Coke, Coca-Cola Zero, or reduced calorie CocaCola Life, whilst also looking to stock as wide a range of lighter variants as they can. One in five (21%) of shoppers purchasing for the BNI occasion buy soft drinks —

that’s only 4% fewer than those purchasing beer and lager. Adult soft drink sales are growing by 10% and Shloer is particularly popular for this occasion. Shloer Red Grape and White Grape PMPs are currently available in £1.69 PMPs. Sugar Confectionery is a category that shouldn’t be overlooked for Big Night In, as it’s hugely popular with consumers looking for a sweet treat to share at home with friends or family whether as a snack between meals or after meals. The total Sugar Confectionery sector is worth £944m with a steady 1.5% value growth. It is worth creating a dedicated Big Night In display-area in store but if space is limited, retailers should consider featuring a temporary display such as free-standing dump bins or a counter display unit to maximise any opportunities. Stores should be creative with their displays, using good visual merchandising to make a strong impact with customers. Cross merchandising contributes to convenience. Display a range of ‘night in’ products together to increase sales opportunities.

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£4m

® Registered Trade Mark of United Biscuits (UK) Limited. Subject to VAT at standard rate. Available in 120gg packs from February 2016

NEW

MEDIA SPEND

APRIL

2016

the UK's #1

chocolate biscuit now in a nibbly nibble

Available in 120g packs with 80g Price Marked Packs to follow

Stock up in time for the TV campaign!

www.betterbiscuits.com Tips, tools and advice from UB betterbiscuits@unitedbiscuits.com 020 8234 5010

Scottish Local Retailer - UB Nibbles PMP Ad - 3441 AW.indd 1

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Big Night In

Feature

ts c u d o r p “Placing e the besid e v i r d l l i w counter s.” sale OETTA ER OF CL

ANAG CIAL M

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94%

of consumers would buy a PMP confectionery multipack from a c-store.

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Ensure a chilled offering of soft drinks to attract customers heading to any impromptu gatherings. Savoury snacks are on the up as sales of traditional fried potato crisps decline, with evidence suggesting that shoppers are switching to formats they perceive to be healthier. Savoury snacks can deliver on taste while offering a less guilty way to snack. Ritz Crisp and Thin taps into this growing trend. Available in Cream Cheese & Onion, Sea Salt & Vinegar, Sweet Red Chilli and Sea Salt & Black Pepper, Ritz sharing bags will help retailers make the most of the BNI occasion. In terms of hot food, growing numbers of retailers are now using Rustlers as an integral part of a BNI meal deal, particularly around major sporting events that are guaranteed to attract large, in-home TV audiences. There are a number of different occasions that can be classified as a night in – from a more formal planned night together, to a fun night in with a group of friends in front of the TV. With sporting events like the Rio Olympics and Euro 2016 packing the summer television schedule, friends and families will be seizing the opportunity to enjoy their favourite sharing treats at home more than ever. It’s easy to boost the Big Night in spend by offering customers complementary hot or cold snacks and drinks as part of a meal deal. They’re easy to manage, guaranteed to increase sales and offer shoppers the value they’re seeking in the convenience channel. The evening snacking category is worth £5.2bn, with a growth rate of +2.8% so it is an area worth tapping into. The key to those all-important sales is stocking the right size formats of bestselling brands and providing flavours that are in demand.

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FASTEST GROWING BRAND IN THE TOP 20, AT +26% CSV*** £8.5 MILLION TOTAL MEDIA INVESTMENT IN 2016! 1 BAG, 3 FLAVOURS...3X MORE IRRESISTIBLE!

**Eurominitor International, 52w/e 20.10.2014. ***Neilsen Scantrack, Total Market, MAT WE 11.07.15. ©M&M’S and the M&M’S characters are registered trademarks. ©Mars 2016.

ALSO AVAILABLE IN PRICE MARKED PACK

Feature

Low Sugar

Shoppers are making healthier lifestyle choices and seeking low and no added alternatives to their favourite full sugar or alcoholic drinks. As a result, retailers must cater to customers’ growing health concerns by stocking up on a wide range of soft drinks to keep their sales soaring. BY ÉMER O’TOOLE

LOW SUGAR, HIGH SALES

ffering a choice of products that are lower in sugar and calories, but with no compromise on flavour will draw consumers to your store. Following the war on sugar, lower and zero calorie ranges have been a key focus for soft drinks brands and this trend is set to continue. Retailers should look at their best-selling drinks, and stock a low or zero sugar equivalent. It is also worth keeping an eye out for new products, or those being backed by marketing campaigns in order to make the most of consumer interest. Coca-Cola has invested £15m on reformation since 2012, helping to reduce the average calorie content in its sparkling drinks by 5.3%. Coca-Cola Life contains 45% fewer calories and sugar than regular colas, appealing to consumers who are looking to reduce their sugar and calorie intake but do not want to switch to a sugar-free Cola. Coca-Cola Zero Cherry is now available in single packs of 330ml and 500ml PET formats and is designed to attract young adults and on-the-go shoppers looking for low sugar options. Vimto’s popular two litre Carbonate Zero variant is one of the brand’s bestsellers, offering a convenient sharing format that is ideal for family gatherings since the biggest share of the brand’s fans are between the ages of 15 and 34, with sharing formats like the two litre Caribbean Crush Zero or Tropical Punch Zero being the most popular. With consumers continuing to seek out healthier products, stocking a strong brand of juice drinks can help to

TANGO ORANGE SUGAR FREE A Tango Orange sugar free variant was launched by Britvic Soft Drinks last year to tap into consumer trends for lower sugar alternatives, without compromising on taste. Lower sugar options grew by 6.2% last year. To maximise sales, retailers should create a ‘sugar free zone’ at the fixture, merchandising by format.

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14/04/2016 15:19:18

SAVOUR THE CHERRY TASTE

Coca-Cola cherry with zero sugar Available in 330ml and 500ml packs, Coca-Cola cherry with zero sugar will be supported by a multi-channel marketing campaign in 2016. Cherry flavours are on the rise with 22% growth.

*Kantar World Panel – Total Colas – Total Market– 52 W/E – Period MAT to Aug 15. © 2016 The Coca-Cola Company. Coca-Cola, Coca-Cola Zero and the Coca-Cola Contour Bottle are registered trademarks of The Coca-Cola Company. All rights reserved.

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Feature

Low Sugar

“Low sugar options grew by 6.2% in value last year.” KEVIN MCNAIR, BRITVIC

drive sales. Sparkling juice drinks have grown in popularity recently. One brand that has seen increased sales is Feel Good. Its range of 750ml Sparking Juice Drinks meet the current trend for healthier and low sugar drinking. The 100% natural range includes Cloudy Lemonade, Cranberry & Lime, Orange & Passion Fruit, Raspberry & Passion Fruit and Apple & Peach. Schweppes Sparkling Juice Drinks have been introduced to help retailers benefit from the increased popularity of adult soft drinks. With flavours including Grapefruit & Blood Orange, Orange & Cranberry and Lemon & Elderflower, the range will meet demand for lighter drinks with just 20 calories per 100ml. There is also increased demand for still low sugar drinks. Grace Foods Aloe Vera Drinks contain 100% of the daily vitamin C recommendation and the brand says this helps reduce tiredness and fatigue, appealing to shoppers with busy lifestyles. Giuseppe Vullo, Grace Foods Brand Manager, says: “The health and sugar debate is continuing and Grace Aloe Zero and Grace Aloe Refresh allow retailers to offer shoppers’ delicious and exciting choices when they’re looking for reduced or zero sugar alternatives

to carbonated drinks, fruit smoothies and flavoured waters.” There has been a recent surge in popularity for coconut water. Adrian Troy, Head of Marketing for AG Barr, says Rubicon’s Coconut Water “outperforms the brand leader in consumer taste tests” and is “opening up the coconut water market to all shoppers.” Available in one litre take home packs and 330ml ‘drink now’ impulse packs in both plain and pricemarked variants, Rubicon Coconut Water contains only 17 calories per 100ml, which is 50% less than a standard fruit juice, so it is an ideal low calorie alternative to stock in the drinks fixture. AG Barr advises retailers to stock up on a wide range of great-tasting low sugar and low calorie options alongside regular soft drinks to see sales increase. A good way to increase low sugar drinks sales is to develop a meal deal offering with a sandwich, drink and snack at a reduced price. For health conscious consumers, it is worth using a range of freshly made rolls and sandwiches, if possible. Include a healthy option, such as fruit, as a snack. Ensure the meal deal is easy to find in store and make sure it is well promoted both inside and outside the store. The impact of the healthy living trend on the Soft Drinks market can be seen in the types of segments being purchased, with Water-based categories thriving, while other categories that considered unhealtrhyare struggling for growth.

Retailers should create a ‘sugar free zone’ at the fixture, merchandising by format and leading with popular sugar-free brands such as Tango Orange Sugar Free and 7UP Free. The low sugar category is being driven by diversity and perceived health benefits, meaning local retailers should offer a wide range of drinks that reflect current health trends. This will increase shopper satisfaction — the key to any successful c-store.

ENERGY DRINKS The low calorie energy market is currently worth £47m and at a growth of +14%, it is expected to be worth £200m in the next five years. A new Punched Guava flavour has been added to Rockstar’s Pure Zero range. Rockstar hopes the range will give retailers an opportunity to profit from this fast-growing sector. Adrian Troy, Head of Marketing for AG Barr, says: “Retailers should use the impactful POS available to create in-store visibility around Rockstar Pure Zero Punched Guava to maximise this exciting sales opportunity.” Rockstar Pure Zero is also available in a Fruit Punch flavour. Another new launch is CCE’s new range of three zero calorie Monster Energy variants: Ultra White, Ultra Sunrise, and Ultra Red. To further support retailers, Monster Energy Ultra White has also been made available in a new £1.19 PMP 500ml can.

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Feature

Water

SPLASH

OUT ON

BOTTLED WATER

Water is one of those sectors that benefits from additional category management. Both plain water and flavoured water are in growth, and with more brands coming to market, the issue for retailers is maintaining the strongest possible range and knowing what products will sell. BY ÉMER O’TOOLE

s consumers increasingly make health conscious choices in convenience stores, the bottled water sector has seen significant growth, and is now worth £634.5m. Plain water sales continue to increase, but flavoured water is also performing strongly, so offering shoppers’ choice is key to sales. The bottled water category is now bigger than canned soup, toothpaste, baked beans and chocolate biscuit bars, according to IRI market research. It has been revealed by Kantar

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Worldpanel Usage that bottled water contributed £62.47m additional sales to the UK grocery trade last year, as well attracting an additional 900,000 new consumers to the category. Health remains high on the consumer agenda. A 2015 survey from Kantar Worldpanel reveals that 26% of consumers are “very concerned” about sugar and 92% are trying to manage or reduce the amount of sugar in the foods they buy. CCE says the total soft drinks market is in decline, while plain bottled water (compromising of still and sparkling) is demonstrating

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Feature

Water

VOLVIC CAMPAIGN ERUPTS ONTO CHANNEL 4 Volvic has kicked-off its first ever ‘megabrand’ campaign, which aims to inspire consumers to Awaken Their Volcano. For the first time, the bottled water brand is sponsoring TV programming, partnering with Channel 4 to sponsor ‘Unstoppable moments on 4’. The programming strand runs across the Channel 4 network, with shows carefully selected to embody Volvic’s brand personality and values.

COCA-COLA’S TIPS FOR SELLING BOTTLED WATER 1. Retailers should stock immediate consumption formats in a prominent part of the chiller for those looking to drink their water immediately after purchase, whilst also making some shelf space for larger formats and multipacks, which can be consumed at home later. 2. The popularity of the sector means that there’s some potential for second sitings of bottled waters, with displays at the front of the store or close to the tills offering good opportunities for incremental sales. 3. With the health conscious consumer trend showing no sign of slowing down and more demand for choice evident in shoppers, bottled waters can play an important role in meal deals. Offers that see discounts applied when a bottle is purchased alongside a sandwich and a snack are popular among consumers as they offer a strong perception of value, and are a great way for retailers to increase their bottled water sales.

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significant growth as consumers choose water as an alternative to sugary soft drinks. However, CCE added that plain bottled water has plenty of room for further growth, as only half of British consumers buy from the category. CCE reports that both instant consumption and future consumption formats are doing well, showing that whilst bottled water remains popular with on-the-go consumers, people are increasingly aware of the benefits of water and are choosing to take it home. CCE’s Glacéau Smartwater is backed by a #RugbyDistilled campaign, which continues the brand’s reputation for sponsoring the biggest sporting events, and promoting an active lifestyle. Flavours and innovation continue to contribute to the category, so it is worth keeping this in mind. Highland Spring has launched Go Coco Coconut Water, capitalising on the recent popularity of coconut products. Naturally sourced plain bottled water remains the only product on shelf that contains no sugar or artificial flavours. C-stores should tap into this demand by stocking popular packs in convenient sizes to fit consumers’ needs. As consumers become increasingly health conscious, selling water has become even easier. It is crucial that retailers stock a wide range of still, sparkling and flavoured water to appeal to all types of shoppers. www.slrmag.co.uk

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Feature

Young Adult Brands

THE YOUNG ONES

With high levels of disposable income, the 18-30 demographic is key to the sales of a huge number of brands, and convenience stores are well-placed to deliver those sales. BY ÉMER O’TOOLE

RED BULL ORANGE EDITION It is worth marketing mixers beside the alcohol fixture to promote cross-category sales. A new Orange Edition has been launched by Red Bull, following the successful introduction of Red Bull Tropical Edition in 2015. Orange is the most popular soft drink flavour, and crucial within the Sports & Energy sector where it accounts for over 40% of flavoured drinks sold. Available in both 250ml plain and price-marked cans (rrp £1.19), the launch is being supported by a marketing campaign. Available in both 250ml plain and £1.19 PMP cans, Red Bull Orange Edition will sit alongside the existing Editions in the chiller, helping to increase visibility and drive sales.

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he number of products in the off-trade section aimed at the 18-30 age bracket is steadily increasing. Offering a variety of products is key if you want to appeal to the young adult market. Retailers should consider themed displays that tie in with any notable sporting occasions, TV moments or events, which will appeal to customers choosing to enjoy these at home. Heineken’s Desperados and Old Mout brands have been launched in new can formats, which will appeal to the young adult market. Set to drive category value by helping retailers target the growing shopper occasions of early evening meet-ups, on-the-go and outdoor, the new SKUs tap into the consumer trend towards smaller cans. In fact, small cans were bought by 1.6 million beer and cider shoppers in 2015 — 270,000 more than in 2014 — and this trend is expected to continue in 2016. It is recommended that retailers offer a balanced range, taking in a broad mix of premium and value brands, different pack formats, original, and a variety of different flavours, subbrands and variants. Friday is the most popular evening for drinking so retailers should have plenty of stock available and offer a variety of pack

formats to suit different occasions. Debs Carter, Marketing Director for Alcohol at SHS Drinks, says: “Our research shows almost half of WKD consumers meet up at least once a week with friends for a night in. The most popular format for larger parties is 8-packs; 700ml bottles are ideal for making RTD cocktails and, along with freeze pouches, tend to be favoured by consumers getting together and having a drink before they go out for the evening; 4-packs are ideal for one or two mates having a night in.” The key to capturing the young adult market is convenience, and it is important that retailers stock the right range of impulse formats to target these consumers effectively.

HEINEKEN STAR RETAILER SCHEME CONTRIBUTES NEARLY £50M TO THE BEER AND CIDER CATEGORY Heineken’s Star Retailer scheme has now helped retailers to contribute £49m to the Beer and Cider category in the convenience channel since it launched in 2012. The aim of the scheme is to help retailers stock the right range of products, ensure their beer and cider category is laid out in the chiller, and make sure that key brands have enough space. By following this advice, retailers find that their cider and beer sales increase by around 12% on average.

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14/04/2016 15:14:28

NEW. RED BULL WITH THE TASTE OF ORANGE.

UTC

AYE, WHATEVER… Now, as his regular readers will be aware, UTC isn’t a narrow minded, parochial type of man. He’s a man of the world, experienced in many walks of life. He’s been around the block once or twice. [Eh, once or twice? Ed] But there is the odd occasion when he sits at his desk at SLR Towers and wonders if the many PR geniuses out there know what they’re doing as they sit with their beards and tattoos and fixie bikes in Shoreditch in London sending out their press releases. One such occasion happened recently when he received a lovely email encouraging Scotland’s fine upstanding local retailing community to get behind…..St George’s Day. Much as he loves Bob Mortimer, he just can’t bring himself to raise a cheer for a day of what presumably involves warm beer, Morris dancing and celebrations of Jamie Vardy.

CUPPANUT? NUFF SAID Now UTC has never claimed to have his finger on the pulse of popular culture. He’s more of a Matt Monro man than a Kanye Puff Jayzee man. So it’s no surprise that he had to ask some of his younger colleagues who Gareth Gates was and why the press release referred to him as a pop star when he’d never heard of him. Turns out not many people in the office had heard of him either but apparently he won some reality TV competition, which is always something UTC has deepest respect for, as you can imagine. But even more baffling to the auld yin was Gareth’s new venture: Coconut Tea. Two words which UTC enthusiastically insists should never appear in the same sentence. It reminded him of Peter Kay’s famous ‘garlic bread’ rant. Obviously he has asked for some samples, so watch this space. 70

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SLR | APRIL 2016

AW, REFEREE!

UTC got himself into a right kerfuffle last week and was heard to be gnashing his (false) teeth, gesticulating wildly and using some colourful language [So, just like every other day then? Ed] when he received this pic through the interweb from former SLR Editor Kevin Scott. UTC is now at the European Court of Arbitration in Brussels, or wherever it is, calling on legislators to clamp down on this fraudulent, misleading and frankly immoral practice of selling things in Poundland for £4.

BAILEY’S GIVES YOU INFLATION

Nothing confuses UTC quite like economics and finance. Well, maybe trying to pick the winner at the Grand National, but nothing apart from that. Which is how he found himself puzzling over a press release that said that Bailey’s is now used to measure inflation. How does that work, he wondered? After much befuddlement and a wee hauf to calm his nerves, he worked out that the Office for National Statistics picks a bundle of everyday products to monitor the price of and work out whether inflation is happening. And now they’ve dumped some product that’s no longer relevant – it didn’t say what – and replaced it with Bailey’s. Frankly, he was still none the wiser, but definitely had a recollection that back in the day Bailey’s used to give Mrs UTC inflation if she drank too much of it.

CAMRA LOSES FOCUS

He loves a real ale, does UTC, but not to the extent that he wears a cardigan and sandals. Well, he does wear a cardigan and sandals, but that’s mere coincidence. So he was dismayed recently to see CAMRA losing the plot entirely and handing out awards to MPs. While old bacon-loving Cameron and his tax-dodging cohorts are busy getting roasted for their antics, CAMRA is handing them awards for supporting the beer industry. UTC was last seen forcing down a pint of fizzy, mass produced lager in protest. www.slrmag.co.uk

14/04/2016 15:08:34

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26/02/2016 16:02:57