SLR April 2017 by 55 North

APRIL 2017 | ISSUE 168

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GAVIN ROTHWELL

IGD head predicts future of food to go

PAUL CHEEMA

Top English retailer gives us 2 minutes

FOOTFALL DRIVERS

HEALTHY INPUT

SLR Forum sees retailers shape the future of the Healthy Living Scotland Programme

Bringing shoppers to your door

TOBACCO EUTPD2 is almost here

LOW SUGAR

The drive to low and zero sugar

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Everyday great value

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The UKâ&#x20AC;&#x2122;s ONLY cigarette brand exclusively for independent retailers STOCK UP AT YOUR LOCAL LANDMARK WHOLESALE MEMBER DEPOT Gilsons Wholesale Cash & Carry JW Gray Hi Line Hyperama Cash & Carry Jones Food Solutions

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For more details contact your local Landmark Wholesale Depot or to find your nearest depot, visit www.landmarkwholesale.co.uk Check your local Landmark Wholesale Members PLOF and in depot signage for details of local member pricing This communication is for tobacco traders only. Not to be left in sight of customers

Smoking kills

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April 2017

Contents

Contents ISSUE 168

NEWS p4 p5 p6 p8 p10 p18 p20 p22

New Lottery ad campaign Camelot unveils new campaign to boost Lottery ticket sales. One Stop joins SGF Symbol group signs up to Scottish Grocers’ Federation membership. JET campaign scores ‘Skint?’ brand awareness campaign a winner. Ferrero digital platform Confectionery giant unveils new ‘Your Perfect Store’ trade website. NEWS EXTRA P&H reﬁnancing New refinancing deal secures P&H business. PRODUCT NEWS AG Barr confirms sugar reformulation, Heinz celebrates landmark anniversary and more. OFF-TRADE NEWS Fosters refreshes brand, Bud Light returns and a digest of other key drinks news. NEWS & MAGAZINES Holding the front page doesn’t mean more sales, says NFRN.

INSIDE BUSINESS p14 COVER STORY Healthy Living Forum Retailers gather to help shape the future of Healthy Living Scotland. p24 Research Digest Some of the latest research to affect the local retailing industry in Scotland. p26 2 Minutes of Your Time Paul Cheema Leading English retailer and SLR Rewards judge gives us 2 minutes. p28 Opinion Gavin Rothwell IGD insight head predicts the top five trends to come in food-to-go. p31 SLR Rewards The highlight of the Scottish local retailing calender is only weeks away... p32 Woodlands Local The latest round-up from what’s been happening at our store in Falkirk. p40 Hotlines A selection of some products worth considering to boost sales in your store. p70 Under The Counter The auld yin gets his false teeth into some of the more unusual retailing stories once more. FEATURES p42 Tobacco With the new EUTPD2 legislation just around the corner, it’s time to ensure everything is compliant in-store. p48 E-cigs New legislation this month means that vaping products are now treated exactly like tobacco products. p50 Footfall drivers It’s never been more important to maximise the number of customers you bring through the door. p54 Biscuits The biscuit category remains as vital as ever in convenience stores across Scotland. p58 Low sugar The knives are out for sugar but the major manufacturers are responding in style. p66 Big night in The big night in mission is as popular as ever, so make sure you don’t miss out. ON THE COVER 14

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Shaping the future of Healthy Living SLR hosts a retailer forum to allow retailers to have input into how Healthy Living Scotland develops in the future.

APRIL 2017 | SLR

News NATIONAL LOTTERY New campaign to highlight real winner stories

Large business rate threshold rises The threshold at which ﬁrms in Scotland start paying the Large Business Rates Supplement (2.6p in the pound in Scotland

New Lottery campaign to boost participation A new National Lottery campaign has launched to demonstrate and celebrate the volume and variety of prizes won on The National Lottery. Initially launching on radio, social media and out-of-home, the campaign uses real winners’ responses to winning life-changing prizes, as well as providing surprising, fun and meaningful facts about winning – using Camelot’s bank of winner data.

compared to 1.3p in the pound in England) has risen from a rateable value of £35,000 to £51,000. SRC’s Director David Lonsdale said: “Scottish Ministers have at least begun to acknowledge our concerns about last year’s doubling of the Large Business Rates Supplement by upping the threshold at which it applies, which is a welcome step forward. However it remains the case that

Arabella Gilchrist, Head of Parent Brand for The National Lottery, said: “The National Lottery plays a vital role in contributing to good causes throughout the UK – raising more than £30m every week – and at the same time awards around eight million prizes weekly. These surprising facts and real-life winner stories will help remind players that real people, like them, are winning on The National Lottery all the time.”

5,077 retail premises in Scotland – including many medium sized ﬁrms – will continue to pay the supplement at a rate twice that which applies in comparable premises down south.”

Economy Energy chooses PayPoint Fast-growing, independent UK energy supplier Economy Energy has implemented PayPoint’s fully integrated payments platform MultiPay to enable payments via app, online, text message, phone, or at over 29,000 local stores. Launched in February 2011, Economy Energy now provides gas and electricity to over 250,000 customers.

FSS targets ‘unhealthy snacking’

FOOD TO GO Falkirk forecourt first with new food to go concept

Certas trials Stone Willy food to go concept Carronvale Service Station in Larbert, Falkirk, is the first Scottish forecourt to launch the Stone Willy food-to-go concept. Following a major refurbishment by site owners Certas Energy, the Stone Willy kitchen opened to the public last month, complete with high speed ovens, dedicated seating area and serving a hot food range that includes pizza, wraps and melts. Stone Willy Pizza is a US business that moved to the UK 10 years ago and the decision to implement the concept in Larbert was taken after a 12 month review of the food-to-go market and the offers of the leading franchise operators. “We were attracted by the company’s business model and its understanding of our market place,” said Colin Levy, Retail Operations Manager at Certas Energy. “Add to that the quality, taste and variety of the food range, the speed of service and the family appeal of the products. If the trial is a success, and initial results suggest it will be, we will look to swiftly roll-out the concept to other sites in our company network.”

Food Standards Scotland (FSS)

TOBACCO Crackdown in illicit traders intensifies

has called on Scots to break

Imperial acts against six more retailers

unhealthy snacking habits, following the ﬁnding that half of all Scots know they treat themselves and their children too often with unhealthy snacks and sugary drinks. FSS’s healthy eating marketing campaign ‘Change our Future’ is calling on people to pledge to give up unhealthy snacks and treats, such as chocolate, sweets, cakes, crisps, biscuits and sugary drinks on #treatfreetuesday. FSS will be running the campaign on TV, online and on social media, with #treatfreetuesday designed to encourage people to make

Imperial Tobacco has confirmed that six more retailers in England have had their sales support terminated and their involvement with its Trade Partner Programme ignite ended following illegal tobacco-related convictions. All retailers with an Imperial Tobacco gantry have had it seized and uplifted. Peter Nelson, Imperial Tobacco Anti-Illicit Trade Manager, commented: “These latest actions are another impactful demonstration of Imperial’s ‘zero tolerance’ policy regarding retailers convicted of transgressions relating to illegal tobacco. Fraudulent retailers who fall

foul of the law will lose their Imperial gantries, their related sales support and any ignite points they may have amassed. Nelson went on to stress that the illicit trade wasn’t a victimless crime, but one that affects honest retailers, damages communities and – in many cases – actually funds organised criminal activity. “If you are suspicious of illegal tobacco where you live, please act by contacting HMRC’s Hotline on 0800 59 5000, or your local Trading Standards or Police. Remember… if you Suspect it? Report it!” he concluded.

ALCOHOL NFRN backs minimum pricing

NFRN calls for minimum pricing rollout In its latest controversial statement, the NFRN has called for minimum unit pricing for alcohol to be rolled out across Britain if an ongoing trial in Scotland is successful. NFRN Chief Executive Paul Baxter said: “We have always believed that minimum pricing would help cut consumption among those at risk from heavy drinking as well as protecting independent news and convenience store owners who are all too often a target for anti-social behaviour fuelled by people who have got irresponsibly drunk on cheap alcohol. “We welcome the calls from the House of Lords Select Committee on the Licensing Act 2003 for minimum unit pricing to be rolled out nationwide if successful in Scotland. “It’s our belief that such a move will reduce alcohol consumption even further as well as going some way towards helping hard pressed independent retailers compete against multiple chains on pricing.”

changes to their diet. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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News SYMBOLS One Stop joins trade body

One Stop becomes member of SGF One Stop is to become a member of the Scottish Grocers’ Federation (SGF). The symbol group says Scotland is a major growth area, having steadily grown its estate since the first company store opened in June 2015. The partnership is also set to benefit One Stop’s Franchise business, as all franchisees will be given access to the support the membership offers, while giving them the opportunity to help shape the future convenience retail landscape in Scotland. The partnership is set to allow the two organisations to work together with members gaining valuable insight and information, while raising the awareness of franchising as an alternative model to moving their business forward, in an ever more challenging market. The move is fully backed by

the SGF National Executive. Chief Executive Pete Cheema said: “This is a major step forward for the independent convenience store sector in Scotland and for SGF. It strengthens our membership and our capacity to advocate on behalf of a united industry, while keeping the Federation dynamic and relevant to the changing convenience store industry. We are delighted that One Stop has agreed to come on board and we look forward to welcoming our new members and

working together.” Andrew King, One Stop Franchise Director added: “Over the past year One Stop has seen significant growth in Scotland. Our franchisees alone have benefited from 10% likefor-like sales growth. In joining the SGF, I believe that One Stop and our franchisees will benefit significantly from being part of a proactive and forward-thinking trade body. We’re all very excited about our future in the Scottish market.”

Diamond Ball raises £235k More than 600 people from across the industry gathered at the Hilton on Park Lane, London for the prestigious GroceryAid Diamond Ball last month, raising more than £235,000. This will enable the charity to look after at least 156 beneﬁciaries in the coming 12 months with both ﬁnancial and practical support.

Renfrewshire PO sold Bargarran Post Ofﬁce in Erskine, Renfrewshire has been sold by Bruce & Co to Christopher Allan, who has previous experience in the Post Ofﬁce trade. The spacious store is located within the Bargarran shopping precinct, a hub of the local community. The vendors, Mr and Mrs Deo, decided to place the business on the market due to other business interests.

Retailer suffers machete attack Two men have admitted a machete attack on Edinburgh retailer Tahir Ahmed during

WHOLESALE Booker issues another upbeat set of results

Booker’s hot streak continues Booker Group, the UK’s leading food wholesaler, has had yet another good quarter, according its latest results. Group non-tobacco sales rose by 4.5% with non-tobacco like-for-likes up 4.7%. Group tobacco sales declined by 7.9% with tobacco like-for-likes down 7.5%, impacted by the tobacco display ban and new plain packaging restrictions coming into force. Total sales were up 0.5% and like-for-likes were up 0.7%. For the 52 weeks to 24th March 2017, total sales were £5.3bn, up by 6.7% compared to last year. Like-for-like non- tobacco sales increased by 2.8%, and like-for-like tobacco sales reduced by 4.6%. The Group had approximately £160m net cash at the end of the financial year. Charles Wilson, Chief Executive, said: “Overall, 2016/17 was a good year. Customer satisfaction was good and sales were the best we have ever achieved. Booker Group remains on track to focus, drive and broaden the business. “On 27th January we announced the planned merger with Tesco. We are excited about the benefits the enlarged Group will bring to consumers, our customers, suppliers, colleagues and shareholders.”

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WHOLESALE New MD for Landmark

an attempted robbery. Liam

Landmark names Mills as new MD

McMeechan and David Allan

Landmark Wholesale has announced the appointment of its new Managing Director, John Mills, who will start next month. Mills has a wealth of commercial experience in UK food and drinks manufacturing, wholesaling and retailing, including leadership roles at Keith Spicer, InterContinental Brands, Gaymer Cider Co, Constellation Wines Europe and Strathmore Mineral Water Co. He has also been Chairman of Hyperama, the Midlands-based cash and carry wholesaler, for the past three years. “The wholesale sector, like many other channels, faces many challenges driven by macro-economic factors, legislative changes and dynamic consumer trends,” said Mills. “However, smart businesses thrive in changing times and I am confident that Landmark is well positioned to continue its success built over the past 45 years. “We have a strong and loyal membership of 38 successful companies and a committed Central Office whose purpose is to best serve its members. Having had a long association with Landmark I am passionate and excited about helping to take the business to the next stage in its development.” Sam Wilcox, Landmark’s Chairman, said: “This is a really exciting time for Landmark and having John in place, with his considerable experience and knowledge of the sector, will help us tackle the challenges currently faced by the industry. We look forward to John taking up the position in May.” Landmark Wholesale is one of the UK’s largest wholesale buying groups, with 38 members across the UK, turning over just under £3bn each year.

newsagents in South Trinity Road

assaulted Tahir at his A&A and tried to steal cash. The court heard Mr Ahmed, 54, fought off machete-wielding McMeechan before the pair ﬂed. Tahir was treated in hospital for a fractured skull and various lacerations to his head, had 14 staples put into wounds to his forehead and temple and was kept in hospital for 48 hours. He was left with permanent scarring following the attack.

Barr’s commits to sugar cuts AG Barr has conﬁrmed that over 90% of its soft drinks portfolio will be lower or no sugar by autumn 2017, including its best known brand, Irn-Bru. Roger White, Chief Executive, said: “Evidence shows that most consumers want to reduce their sugar intake while still enjoying great tasting drinks.”

APRIL 2017 | SLR

News FORECOURTS New ad campaign drives awareness of fuel brand

Aldi takes over BHS store The former BHS store at Cameron Toll Shopping Centre in Edinburgh has being taken over by Aldi. The 20,000 sq ft premises closed last summer after the department store chain collapsed and work by Aldi to turn the current unit into an “operational space” has started and the the new store is expected to open later this year.

Costcutter opens second pilot store Costcutter Supermarkets Group has launched its second Costcutter pilot store as part of the rollout of its brand transformation Shopper First programme to drive retailer sales growth. The store follows an in-depth study of shoppers and brings together new brand and store design, store-level shopper insights and sales driving range initiatives. The new store is in Leeds and is fully owned and operated by

JET’s ‘skint?’ campaign boosts brand awareness Fuel brand JET, marketed by Phillips 66 in the UK, has hailed its recent advertising campaign as a resounding success. The brand promoted its latest ‘Skint?’ nationwide prize draw using a combination of bus, Facebook and online advertising, as well as Waze, the world’s largest traffic and navigation app. Throughout January and February, Post-Christmas cash-strapped consumers throughout the UK were encouraged to enter JET’s online prize draw to win one of 14 £1,000 JetCards. The adverts featured for a period of six weeks on the back of 1,750 single and double decker buses UK-wide. JET worked closely with a leading bus advertising company to select buses that travel on key routes within the local areas around JET forecourts. Corresponding adverts were

promoted via Facebook and through a digital advertising campaign across a number of targeted news, sports, car and lifestyle websites. JET also trialled Waze, the world’s largest community-based traffic and navigation app. Waze adverts work by drawing the user’s attention to a branded location pin which highlights each JET site’s exact location. If the user taps on the pin, more information is presented and they can ask the app to take them directly to the site. Janet Messenger, Brand & Communications Coordinator at JET, commented: “We wanted to reach

out to a wider audience and engage with consumers who perhaps aren’t currently JET customers. “Bus rear advertising is a costeffective way to reach motorists, pedestrians and passengers at a local level close to our forecourts. Research demonstrates that passengers spend on average 48 seconds behind buses so they have a long time to absorb our message, familiarise themselves with the advert message and respond to the call to action. “We’ve also been really pleased with the results from advertising on the Waze app. We had over four million views in just three months and significant numbers of consumers driving onto JET forecourts directly from our adverts on the app. Facebook advertising reached over 200,000 people, so again is a great way of raising JET’s brand profile online.”

Costcutter and will provide the business with direct insights into shopper reaction to the new brand and range initiatives.

PO worker embezzles £134k A man has admitted embezzling more than £134,000 from an Edinburgh post ofﬁce at RS McColl’s shop in Ferry Road to fund his gambling habit. Daryl Louden, 26, from Edinburgh, pleaded guilty to embezzling £134,177 and had worked at the Post Ofﬁce for six years.

Quarter worried about Brexit One quarter of Scottish shoppers worry Brexit could impact on their spending habits while almost two-thirds worry about their lack of disposable income, according a new Total Retail report from PwC. The survey of more than 1,000 UK shoppers reveals that price is still the most important factor for determining customer loyalty – 62% of Scottish respondents say they return to a retailer because

SCOTTISH PRODUCE SFD aims to double industry size to £30bn

Scotland Food & Drink targets ‘doubling of industry’ by 2030 A new, ambitious strategy to drive growth in Scotland’s food and drink industry has been unveiled by industry body Scotland Food & Drink. Food and drink has been Scotland’s best performing sector in recent years, with record export figures released recently and sales at home increasing rapidly too. The sector is worth £14.4bn annually, 119,000 people are working directly in the industry and food manufacturing in Scotland is growing at twice the rate of the UK average for the sector. ‘Ambition 2030’ establishes a vision to cement food and drink as Scotland’s most valuable industry, with the opportunity to more than double turnover in the sector to reach £30bn by 2030. The strategy has been developed by the Scotland Food & Drink Partnership, an industry-led partnership of the main organisations

in the farming, fishing, food and drink sector, alongside The Scottish Government and its key agencies. Scotland’s First Minister Nicola Sturgeon joined the Scotland Food & Drink Partnership in Glasgow to launch the strategy. James Withers, Scotland Food & Drink Chief Executive, said: “Ten years ago, when the Scotland Food & Drink Partnership was formed, our sector was relatively static. It is now one of the country’s best performing industries and it’s our fastest growing export sector. However, today sets out a new vision to build further on that. “As an industry, we have identified an opportunity to more than double the size of our sector to £30 billion by 2030, making it Scotland’s most valuable industry. Food and drink is now a national success story for Scotland, yet there are areas requiring more work.”

SYMBOLS

NISA HERALDS STRONG 4TH QUARTER Nisa Retail has announced what it has called “a positive Q4 trading period for the 13 weeks to 2nd April 2017”. Highlights included total sales of £299m, up 2.2% on a like-for-ike basis with last year and very strong non-tobacco sales of £210m, up 4.9% on a like-for-like basis. Tobacco sales fell 3.1%, better than the wider market. Strong growth in member numbers saw 225 new stores in Q4, against 113 last year. Net of losses this is 160 vs 46. The total number of retail sites served by Nisa was 3,466 in the year and full year EBITDA is expected to be around £8.5m, up from £7.3m the previous year. Nick Read, CEO of Nisa Retail, said: “I am very happy to see sales and recruitment on an upward trajectory”

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

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HI! STREET

digital media

A HI! STREET SCREEN HERE.

MEANS BIG SALES HERE.

Hi! Street Digital Media provide convenience retailers and FMCG brands with a unique opportunity to target shoppers at the vital moment of purchase decision-making. Our high bright digital media screens, placed in premium convenience stores throughout the UK are proven to increase sales of promoted products by an average of

15.3%, whilst also increasing both footfall and basket size. Our screens are supplied completely

FREE of charge to retailers who meet our criteria. To find out how you can be part of our fast-growing network of retailers, please visit: www.histreetdigital.com

News CATEGORY SUPPPORT Ferrero launches trade digital platform

Diageo unveils responsible tool Drinks giant Diageo has launched a new DRINKiQ e-learning tool which gives consumers the information they need to make positive decisions about drinking responsibly and tackle myths around alcohol. The tool is available on DRINKiQ. com and is the ﬁrst of its kind within the alcohol industry, using interactive learning and tests to give people information about alcohol and responsible alcohol consumption.

Wholesaler anti illicit focus As the illicit tobacco trade continues to be a scourge on the UK’s retail sector, Imperial Tobacco and trade industry body the Federation of Wholesale Distributors have collaborated on a new, wholesale-focused installment in the award winning Suspect it? Report it! campaign.

New Ferrero site targets Your Perfect Store

Five years on from the launch of its inaugural trade website, Ferrero has unveiled an updated trade digital platform, Your Perfect Store. Designed with retailers in mind, the confectionery brand’s new website has been built with retailer research and insight at its heart, to ensure the final result will help to drive sales, grow categories and evolve businesses. Research conducted in the planning of Your Perfect Store, identified confectionery as the category that retailers want the most help from suppliers, particularly in terms of category advice and NPD news. The new website – which is mobile-optimised for retailers who are on-the-go – features three key

pillars to help retailers: ‘Grow Your Sales’, ‘Know Your Shopper’ and ‘News and Insights’. Spanning tailored planograms, interactive ideal stock list gap analysis and an informative blog, the website aims to be a hub for convenience retailers, helping them to maximise the potential of their confectionery fixture. “From its first conception, our vision was to bring together our best in class executions and market-leading brands in the form of a digital platform, aiding retailers and setting best practice within the

industry,” said Levi Boorer, Customer Development Director at Ferrero. “The relationship between retail and digital is constantly evolving and it is vital for suppliers and retailers to stay at the forefront to drive the best business results.” To support the launch, Ferrero is also re-branding its trade Twitter presence with a new identity in line with the look and feel of the Your Perfect Store website. The channel also features a new @FerreroYPS handle and it will continue to provide regular updates and advice to help retailers boost sales.

Set to appear in cash and carries across the UK, the poster depicts a depot empty of any tobacco-buying retailers alongside the message: “Have you noticed anything’s missing?” It was inspired after evidence from Imperial’s wholesaler partners suggested sudden drops in tobacco sales in depot might indicate a spike in illegal sales in a locality.

Inﬂation to hit retailers Independent convenience store owners across the country are being faced with a further challenge to keep their shops open for business as consumers could be forced to shop on the cheap, with inﬂation rates rising to the highest level since September 2013, according to convenience store cloud technology software company Epos Now. CEO Jacyn Heavens said: “Convenience stores are already facing an uphill battle to compete with discounting supermarkets and today’s news will be worrying for stores that rely on attracting customers with branded goods at a price of

ALCOHOL Labelling changes to encourage responsibility

FORECOURTS MFG banks on Londis

Scottish retailers take lead in responsible labelling

MFG dumps Morrisons for Londis

Scottish retailers have taken a lead in encouraging more responsible behaviour towards alcohol by unveiling a newly revised label that will appear initially on alcoholic products in supermarkets across the country. The Scottish Retail Consortium (SRC) and its members took the initiative to revise their existing alcohol labelling following updated advice from the UK’s four Chief Medical Officers on the maximum number units that should be consumed in a week as well as

recommended frequency of alcohol consumption. The newly revised label will ensure that shoppers will have access to the same consistent information, ensuring they can make an informed purchase. Ewan MacDonald-Russell, SRC Head of Policy and External Affairs, said: “The SRC and its members developed this revised label to ensure that the information passed onto customers about alcoholic products is based on the latest official medical guidance, and also helps customers to make informed choices. As an industry, retail has long led the way in encouraging responsible drinking and we will continue to work with the public health community in this regard going forward.”

Motor Fuel Group (MFG) has announced that a pilot it has been running with Morrisons since October to trial the multiple’s convenience food offer in ﬁve MFG petrol ﬁlling station shops has been cancelled. The Londis brand, which already features on over 300 of MFG’s forecourts, will now be extended to these stations. MFG has 406 stations operating under the BP, Shell, Texaco and JET fuel brands, making it the second largest independent forecourt operator in the UK.

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

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MCEWANS.CO.UK

scotland’s sold on them. McEwan’s brews not just one, but two of the best-selling ales in Scotland. Champion is the country’s favourite premium bottled ale and Export is the nation’s most popular canned ale.*

so don’t think twice about calling 0131 339 3300 to stock up now.

*Source: IRI, MAT to 31st December 2016, Single unit value sales.

News Extra

Wholesalers | P&H crisis

NewsExtra EUTPD2 IS ALMOST HERE P42 WHOLESALERS Palmer & Harvey deal secures future

Convenience Matters with the SGF Last month saw the world celebrate International Women’s day. This was a useful reminder to us about both the importance of women to our industry and the importance of our industry as a source of female employment. We know from our Scottish Local Shop Report that 61% of staff in convenience stores are women. We were very active on social media highlighting this fact. We also know that many female staff have caring responsibilities and that convenience store owners are happy to build jobs around these responsibilities, creating very flexible job opportunities and working patterns for staff. At SGF we have joined the Scottish government’s ‘Partnership for Change which has the strapline ‘fifty-fifty by 2020’. The initiative aims to encourage and assist companies in increasing female membership at boardroom level. The overall objective is to have Boards of Directors which are comprised of 50 per cent women members by 2020. This is an ambitious target, but we want to recognise the diversity of our industry and the vital contribution that women make to it. We need new voices with a diversity of opinion and experience within the Federation. Last year we attracted three new women members onto the National Executive. Not stellar progress, but a step in the right direction. We will continue to work within the Partnership for Change to look at ensuring our processes for attracting new National Executive members do not put any barriers in the way of attracting a diverse range of applicants. Behind every great industry there are great women. We want to try to bring women to the forefront and recognise the inclusivity and diversity of our industry.

SLR | APRIL 2017

P&H CONCLUDES REFINANCING DEAL WITH JTI AND IMPERIAL TOBACCO P&H turmoil comes to an end for the wholesaler as key lenders agree a refinancing package and Tesco extends tobacco deal.

Palmer & Harvey (P&H) has announced the completion of successful refinancing negotiations with existing lenders Imperial Tobacco and Japan Tobacco International (JTI). The announcement came just days after the wholesaler confirmed that it had agreed a three-year extension to the deal it has with Tesco that sees it supply tobacco products to all Tesco stores, ambient non-tobacco lines to Tesco’s forecourt sites and frozen products to around 1,700 Tesco Express stores. It is estimated that around 40% of P&H’s sales come from supplying Tesco and concern over the future of the company had been expressed in the wake of the news that Tesco was seeking a £3.7bn merger deal with Booker. While analysts predict that the business will eventually shift to Booker, a funding crisis at P&H could prove harmful to Tesco at this time deal as it would undermine its argument that the Booker merger would not stiﬂe competition in the grocery supply industry. P&H serves around 90,000 outlets and is owned by current and former employees. It is the fifth-largest

private company in the UK. The company says the refinancing provides it with a “strong platform to capture opportunities in wholesale and convenience markets”. A statement issued by P&H, which employs around 4,000 people, said: “To ensure the efficient running of the business we have loans from a syndicate of lenders. We have now successfully completed our debt refinancing, including credit facilities with existing lenders Imperial Tobacco and Japan Tobacco International. “The refinancing does not change our commercial relationship with Imperial Tobacco or Japan Tobacco and we look forward to continuing to work with all of our suppliers and retail customers to deliver high levels of service, making the most of our scale and know-how, and to further developing our valued relationships. Tony Reed, CEO of Palmer and Harvey said: “The refinancing provides us with a strong financial position from which to drive forward Palmer & Harvey and to take advantage of the many opportunities we see in the wholesale and convenience markets.” www.slrmag.co.uk

HAIG CLUB CLUBMAN A MODERN, STYLISH AND DYNAMIC ADDITION FROM THE HOUSE OF HAIG

A sweet, light and easy to drink Single Grain Scotch Whisky at an accessible price point Stock up on the highest selling spirit launched in the last two years,* having generated over £5m1 in sales after just 25 weeks in market

Back on TV with a

multi-million pound advertising campaign from April

1 Nielsen Scantrack, data to 28.01.17. *Premium spirits (excluding super premium spirits)

“Since launching last year, HAIG CLUB CLUBMAN has had a really strong rate of sale in our stores. We sell at the RRP of £19.99 to ensure we remain competitive with the grocery channel and will continue to tie the product in with seasonal events, such as Father’s Day in June, to maximise sales opportunities.” Rav Garcha, Retailer, West Midlands

Welcome to Haig Club: Enjoy Responsibly

Comment

DRS: RETAILERS TO CARRY THE CAN ONCE MORE? As a local retailer in Scotland, and I proudly include myself in that number, it’s sometimes not difficult to sympathise with one-time Manchester City football star Mario Balotelli and his infamous ‘why always me?’ t-shirt. How many times in the past few years have retailers asked themselves ‘why always me?’ Why does it always seem to fall to the retailer to be the guy with responsibility for executing every bit of poorly thought-out legislation that Holyrood and Westminster can dream up? To be fair, much of that legislation is well-meaning but invariably it is simply ineffective. Most retailers I speak to have no problem with a drive to reduce smoking or alcohol consumption, for instance – but turning the retail industry on its head so far hasn’t had anything like the impact on smoking or drinking levels that we were lead to believe. It’s not what the government is doing, it’s how they’re doing it that’s causing the problem. The latest example is the Deposit Return Scheme (DRS). I don’t think I’d be going out on a limb to say that most local retailers in Scotland are all for recycling and a more sustainable planet. We’re all up for that. Where do we sign? But the problem once more is not the why but the how? Many retailers – myself included – can’t see what’s wrong with doorstep collections. The infrastructure is already in place: most households have a nice colourful collection of bins just yards from their door where they can recycle food, glass, cardboard, paper and plastics. Simple, elegant and effective. So why do we need to get retailers involved – and why is it retailers yet again who get the thin end of the wedge? At the risk of incurring some wrath, why not manufacturers or wholesalers? They benefit from sales of soft drinks too. And possibly most importantly, what would the cost-benefit analysis of DRS look like? The report conducted by Eunomia Consultants – the one that formed the basis of the original Zero Waste Scotland feasibility exercise on DRS – concluded that deposit return is likely only to raise household recycling rates by between 1.5% and 3.3%. Does that marginal gain merit the grief and cost that DRS would cause to the local retailing industry? Would it not be better to continue investing in the kerbside collection services that are already working so well? After all, local authority recycling rates through kerbside collection increased to over 44% of all waste collected in 2015 (the latest full figures available). DRS is not inevitable and I would urge all local retailers to speak to their local MSP and make their voices heard. Let’s not allow our industry to be battered by another bit of collateral damage from government with a track record of being more interested in style than substance. Yes, let’s keep driving recycling rates up, but let’s be smart about how we do it.

EDITORIAL Publishing Director Antony Begley 0141 222 5380 | abegley@55north.com Editoral Assistant Iain Hoey 0141 222 5385 | ihoey@55north.com Web Editor Findlay Stein 0141 222 5389 | fstein@55north.com

ADVERTISING Advertising Manager Susan Dignon 0141 222 5384 | sdignon@55north.com

DESIGN Design & Digital Manager Richard Chaudhry 0141 222 5300 | rchaudhry@55north.com Designer Lisa Deakin 0141 222 5388 | ldeakin@55north.com

EVENTS Events & Operations Manager Cara Begley 0141 222 5381 | cbegley@55north.com Events & Operations Co-ordinator Chloe Buchanan 0141 222 5383 | cbuchanan@55north.com

CIRCULATION & SUBSCRIPTIONS 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

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Cover Story

Healthy Living Forum

SHAPING THE FUTURE OF HEALTHY LIVING IN SCOTLAND

SLR | APRIL 2017

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Healthy Living Forum

SLR hosted an important retailer forum last month to gather input that will help shape the future of the SGF Healthy Living Programme in Scotland – and some great ideas were generated. BY ANTONY BEGLEY

hen the Healthy Living Programme was initially launched back in 2004, it was received by the local retailing industry with what could possibly best be described as an enthusiastic scepticism. The idea of promoting fresh fruit and vegetables, milk and other healthier products in convenience stores was viewed as worthy and commendable, but most retailers probably thought it unlikely that that it would be much of a success. Don’t forget that back in 2004 it was extremely rare to find fruit and veg in local retailing outlets and at that point very few would have predicted the explosion in the fresh category that was to take place over the following decade or so. So it was with a wry smile and not a little satisfaction that Healthy Living Programme Director Ross Kerr invited a large delegation

Cover Story

of top notch retailers to Cromlix House in Perthshire last month, 13 years later, to a forum hosted by SLR to help shape the future of one of the most successful programmes in Scottish local retailing history. From that small pilot back in 2004, the SGF Healthy Living Programme can now claim more than 2,000 retailers across Scotland as active participants, a figure that represents not far off half of all convenience stores in the country. The Programme also arguably represents the most successful partnership between the Scottish Government and the Scottish local convenience retailing sector in history. The Government has funded the Programme since its national rollout in 2005 and gives every indication that it will continue to do so into the future. Our task last month was to gather retailers

RETAILER ATTENDEES Linda Williams, Premier Broadway Convenience Store, Edinburgh Colin Smith, Nisa Local Pink Farm Convenience Store, Musselburgh Saleem Sadiq, Spar Renfrew Bruce Morgan, Best One @ Brownlies, Biggar Donna Morgan, Best One @ Brownlies, Biggar Abdul Majid, Nisa Bellshill Scott Graham, McLeish, Inverurie Walter Bryson, David Bryson & Sons Londis, Prestwick Kathryn McCusker, Spar Hawick David Mitchell Keystore Broadloan, Renfrew Dan Brown, Giacopazzi’s Kinross Sharon Olding, Best One Dougie Anderson, Eros Retail Keith Fernie, Davids Kitchen Jason Macleod, United Wholesale Scotland John Roberts, Costcutter

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APRIL 2017 | SLR

Cover Story

Healthy Living Forum

“I think it would be good to have a Healthy Living day or week every year to let retailers really get behind it.” DONNA MORGAN, BEST-ONE AT BROWNLIES

from all corners of the industry to collect feedback and ideas for what the Programme should look like for the next two, three, five and 10 years. From that humble pilot, the Programme now employs four Development Managers, all working on a part time basis and covering the whole of Scotland including the Highlands and Islands. Whether the explosion in fresh would have happened anyway, or whether the Healthy Living Programme caused it (or at least accelerated it) is a moot point for Kerr. The fact remains that back in 2004, convenience stores either didn’t stock or fruit and veg or, if they did, it was buried away at the back of the store, unloved and largely unsold. These days fresh is the first thing you see when you enter many convenience stores. It’s the category retailers focus on to make a statement to their customers as soon as they walk through the front door. Perhaps most tellingly of all however is that the vast majority of good stores in Scotland now stock fresh. Despite that initial scepticism about whether customers would buy fruit and veg from convenience stores, most now do – and retailers don’t stock produce that doesn’t sell. It was a minor master stroke to appoint Kerr to head the Programme up as his lengthy experience at a senior level at Walkers meant he understood the real-world problems the Programme would face when trying to encourage local retailers to embrace what seemed like a massive change. This experience has been instrumental as Kerr has liaised between the Scottish Government and retailers to ensure that both parties understood one another, and both got what they they wanted out of the Programme. Kerr instinctively understood that retailers needed stocking fresh to be profitable, not just morally and ethically satisfying. It wasn’t always an easy journey but the Healthy Living stands that began to pop up in 2005 soon became more or less ubiquitous and retailers found that their shoppers were indeed interested in buying fruit and veg from them, if the produce was good quality and it was well presented. The most recent significant development for the Programme was the shift in focus 16

SLR | APRIL 2017

away from exclusively fruit and veg to a wider range of healthier products – and it’s partly this shift in focus that Kerr and his team were keen to hear feedback on from a room full of proactive, high quality independent retailers covering all areas of the country and most of the large symbol groups. Importantly, the forum was also attended by the Scottish Government who were keen to gain first hand feedback on how the Programme is being received and interpreted at the coal face. “Today is all about the future and we’re looking for some thoughts and feedback to help us decide where to take the Programme in future,” said Ross Kerr on opening the meeting, and that’s exactly what the next few hours provided. The conversation ranged across many topics from the improved availability of good quality fresh produce and the dramatic improvement in chilled delivery availability, particularly from the main wholesalers and symbol groups, as well as the dedicated fresh specialists operating in Scotland. Encouragingly, the bulk of the feedback was of a positive nature with all retailers in the room confirming that fresh is a key category for them and that they take the category seriously in-store. Two areas which elicited much interest and enthusiasm were the Big Breakfast concept that has been trialled successfully in recent times by retailers including Dennis and Linda Williams in Edinburgh, Harris Aslam in Fife and Mo Razzaq in Lanarkshire. Linda Williams outlined to the group her experience of running a number of Big Breakfasts in conjunction with local primary schools and described the experience as “hugely gratifying”. The Healthy Living Programme has now introduced a formalised process to help retailers to work with primary schools and hold Big Breakfasts of their own, complete with professional POS material and a wide range of practical support. Judging from the feedback around the room, this is an initiative that will only escalate over the next year or two. The concept is also being broadened out into Healthy Eating Days which take place within stores themselves itself with primary

school children attending the shop. Indeed, a recent Healthy Eating Day saw over 1,200 school pupils visiting convenience stores between the end of November 2016 and midJanuary 2017. Linda Williams commented: “Involving children of this age not only helps us educate children on healthier eating but it really does give the retailer the opportunity to be identified as the true community hub – and I can tell you from experience that it helps drive footfall to the store too.” This thought prompted Donna Morgan of Best One @ Brownlies in Biggar to suggest an annual Healthy Eating Week where retailers across Scotland could be encouraged to get involved and make a lot of noise, as well as generating local press coverage and bringing children and their parents into the store. It’s an idea that ticks all the boxes and one that proved extremely popular with the delegation at Cromlix House. A second key strand of the day was the broadening of the Healthy Living Programme out from fruit and veg into other healthier product categories, although this is a complex area to manage for Ross Kerr and his team. The Programme takes its lead from what is actually ‘healthier’ from Food Standard Scotland but communicating which products qualify is a thorny and complicated challenge. “A great deal of work is required to progress this concept,” says Kerr. “But that was what was said back in 2004 when we were talking about the opportunity of fruit and veg and that didn’t put us off, so watch this space!” It’s almost impossible to comprehend how far the Healthy Living Programme has come since 2004 but with fruit and veg now a mainstay of over 2,000 stores it’s impossible to argue that it hasn’t worked. Consumers across Scotland now have easier, more convenient access to fresh produce than ever before – and for that both Ross Kerr and his team and all 2,000 retailers involved can give themselves a pat on the back. There is indeed a great deal of work still to do, but the desire and the passion to do it is evident in bucket loads. The Scottish convenience sector can once again be proud of the work it has done in communities up and down the country. www.slrmag.co.uk

ProductNews LOW SUGAR RISES UP THE AGENDA P58 SOFT DRINKS Irn-Bru maker to cut the sugar content across its entire range

AG Barr lowers sugar across portfolio

NEW CAN

SLIM

AG Barr will reformulate its soft drinks so that over 90% of its portfolio will contain less or no sugar by autumn 2017. The move includes Barr’s flagship Irn-Bru brand, with the regular variant seeing a cut in sugar content. AG Barr claims the reduction will not affect the drink’s taste. It is unclear whether the changes will result in Barr’s products becoming exempt from the Government’s forthcoming levy on sugary drinks. Irn-Bru currently contains 10.3g of sugar per 100ml. The threshold for the new tax is set at 5g per 100ml, with a higher rate kicking in at 8%. Roger White, AG Barr Chief Executive, commented: “Irn-Bru will remain a sugary drink. We’ve achieved a really good match, with less sugar, that tastes great. Our focus has been, and always will be, on making great tasting products for people today and for future generations.”

BEANS

Fifty years of Beanz Meanz Heinz Heinz is celebrating 50 years of its advertising slogan ‘Beanz Meanz Heinz’. The slogan was penned in 1967 by Maurice Drake, Head of Copy at ad agency Young & Rubicam, following a brief from Heinz to create an advert that helped them to stand out as the original and best beans brand. It has been voted one of the greatest ad taglines of all time. Lucy Clark, Marketing Lead at Kraft Heinz, said: “As the number one beans brand, Beanz truly does mean Heinz. It’s an incredible achievement to have a tagline that continues to strike a chord 50 years after it was ﬁrst penned and we hope its legacy will continue for many years to come.”

To find out more contact us at connect@ccep.com or call our Customer Hub on 0808 1 000 000

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• NEW slim can to help tap into the growth of the £167m adult soft drinks sector* CONDIMENTS Hellmann’s favourite gets a packaging update

Hellmann’s is undergoing a complete brand refresh, supported by a £7m ‘On the side of food’ marketing campaign. The relaunch sees a fresh pack design roll out across the brand’s full mayonnaise portfolio, featuring a more contemporary, deli-inspired colour palette. The blue ribbon – as used by Richard Hellmann in his deli when the brand first began in 1913 – remains.

CEREAL

Weetabix revives slogan Weetabix is bringing back its ‘Have You Had Your Weetabix?’ strapline with a £10m advertising campaign that aims to encourage consumers to think of the brand as the ﬁrst choice for breakfast. On air now and running throughout the year, the campaign reinforces the brand promise that “Weetabix equips you for a positive start to the day”.

KitKat cuts sugar Nestlé has announced plans to reduce the sugar content in its popular confectionery products including KitKat, Aero, Quality Street and Yorkie bars in the UK and Ireland by 10%. The Swiss food giant said the move would be implemented by 2018.

Monster-Hamilton team up Triple F1 World Champion Lewis Hamilton joins forces with Monster Energy, for a partnership which will see the release of a “Lewis Hamilton” branded energy drink. The deal, which complements Monster Energy’s long-term sponsorship of the Mercedes-AMG Petronas Motorsport team, will see Hamilton working in partnership with Monster separately from his racing endeavours.

Oasis Light rebrands CCEP rebrands its range of Oasis ‘Lights’ to ‘Oasis Zero’ this month in a bid to better communicate its zero calorie and low sugar formula. The refreshed new look ‘Zero’ range will also remain free of artificial colours and include only natural flavourings. Alongside the rebrand, CCEP has also introduced a new Citrus Punch Zero flavour to the range.

SLRMAG

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by 4% since last year* • Supported by social, digital and online media campaign and sampling * Nielsen, Total GB, Value, MAT to 17.12.16 © 2017 European refreshments. All rights reserved. APPLETISER is a trademark of European refreshments.

Mayo’s new look

• Appletiser has grown

News

Off-Trade

Off-TradeNews NEW VAPING LEGISLATION IN FORCE THIS MONTH P48 BEER Foster’s gets a subtle makeover

Tennents sets standards Tennents Lager has begun printing the UK Chief Medical Ofﬁcers’ updated weekly alcohol consumption guidelines onto its cans. It is the ﬁrst alcohol brand in the UK to introduce the new weekly unit recommendations onto product packaging. Revised in 2016, the latest guidelines state that adults should not regularly consume more than 14 units of alcohol per week for both men and women, down

Foster’s refreshes its brand Heineken has announced it is launching a new design across its entire Foster’s lager range, including Foster’s Gold and Foster’s Radler. The new-look cans will roll out from this month, with the brand claiming the refresh will ‘showcase the beer’s refreshment and heritage credentials’. Key changes include the repositioning of the silver border

and the adaptation to a medallion shape which aims to emphasise the recognisable Foster’s ‘F’. The new packaging scored highly on both pack appeal and purchase intent in customer testing, and the brand hopes it will help to drive purchase and category value. Ifeoma Dozie, Mainstream Beers Director at Heineken, said: “As the category leader

in classic lager, we are excited to reinvigorate the brand design by re-establishing the Foster’s refreshment credentials through the brand’s distinctive heritage story.”

from the previous ﬁgure for men which was 21 units per week. CIDER

Drinks industry slams budget

Smirnoff strengthens cider offer

The 2017 Spring Budget has

Vodka specialist Smirnoff is extending its Smirnoff Cider range with the introduction of a new ‘Mandarin & Pink Grapefruit’ variant, available to order in the off trade now. The new addition looks to build on the successful launch of the Passionfruit & Lime and Raspberry & Pomegranate SKUs in June 2016, which, according to Nielsen Data, contributed 20% to the total growth in ﬂavoured cider. Smirnoff Cider Mandarin & Pink Grapefruit is available in cases of 8 x 500ml bottles, with an RRP of £2.19 each. Diageo is also launching the existing Passionfruit & Lime and Raspberry & Pomegranate variants in a 330ml can multipack (RRP £10) each containing 10 x 330ml cans.

been called a “major blow” to the UK drinks industry by Scottish Whisky Association acting Chief Exective, Julie Hesketh-Laird, with tax on alcoholic beverages set to increase to the highest levels in Europe. She said: “This year’s increase will be very damaging to an industry which routinely innovates, creates new jobs, and ultimately supports our beer loving nation.”

Bestway Wholesale signs up to AWRS Bestway Wholesale has pledged its support in tackling the illegal trade in alcohol by signing up to the Government’s Alcohol Wholesale Registration Scheme. The scheme, which came into force on April 1, puts the responsibility on customers to prove that they are purchasing their alcohol from vetted wholesalers in a bid to stop the increasing levels of non-duty paid stock entering the country.

Bulmers Orchard range Bulmers has launched two medium bodied sparkling apple ciders: Sarah’s Red Apple Cider

BEER Desperados offers smoother beer

Desperados Dos Desperados Dos, a light beer flavoured with dark tequila, has been launched in a bid to satisfy the late-night drinking occasion. With a higher ABV at 7% and smaller serve size in 250ml bottles, the new variant has reduced its fizz, making it smoother to drink. The brand claims it is ideal for “moving the tempo from early evening into night time”. A multi-million pound campaign will drive mass awareness with OOH, digital and POS marketing. Desperados Dos is available now in a 3 x 250ml pack size.

BEER

New ranges from Heineken Heineken plans to grow the beer category with its newlylaunched Maltsmiths Brewing range. Available now, a Bavarianstyle Pilsner and Americanstyle IPA are the ﬁrst beers to roll out in the new range. Both brews are 4.6% ABV and are available in 330ml can and bottle formats. Recommended retail price is £1.85. Also new from Heineken comes the brewer’s ﬁrst alcohol-free beer. The Heineken 0.0 brand is available in 330ml cans and bottles, including a 6x330ml can multi-pack and 4x330ml bottle multi-pack. A £2.5m marketing package supports the launch, with a £1.5m consumer advertising campaign breaking in July. David Lette, who heads up premium brands at Heineken, said: “We expect to see it [alcoholfree beer category] double in the next three to four years.”

and Kier’s Cloudy Apple Cider. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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Off-Trade

News

BEER American favourite makes its UK comeback

Bud Light returns after 16 years

The US best selling beer, Bud Light, has returned to the UK market after a 16-year gap. The relaunch is being backed by a £10m-plus marketing campaign by brewing giant AB InBev. The light beer, which is being brewed in the UK, is 3.5% ABV. Nick Robinson, Marketing Director at AB InBev UK called the move “the biggest thing we have done in the last 10 years.” The reason behind the move to brew at a lower ABV was,

according to Robinson, because a majority of younger drinkers wanted to moderate their drinking. Bud Light is available in convenience in 4 x 440ml cans, £5.49 price-marked 4 x 500ml cans and 10 x 440ml cans. The brand was promoted before the launch on social media and marketing support includes TV, out-of-home, print and digital advertising and PR and social media activities.

BEER Heineken continues partnership with rugby tournament

SPIRITS New ﬂavour from Absolut

Absolut Lime gives Heineken Rugby World Cup contract vodka a citrus twist Heineken has announced it will be a Worldwide Partner of Rugby World Cup 2019 in Japan. The agreement with the sport’s governing body, World Rugby, will see Heineken, continue as an official partner of the global tournament. Heineken’s relationship with World Rugby dates back to 1995.

Absolut hopes to drive category growth with the launch of its latest innovation, Absolut Lime (RRP £18.75). With over 82% of consumers regularly drinking citrus cocktails, according to a CGA Mixed Drinks Report, Absolut looks to tap into this trend with its lime-flavoured vodka, made with natural ingredients.

RTDS

Baileys Iced Coffee Liqueur brand Baileys has welcomed a new addition to its portfolio – Baileys Iced Coffee. Launching in 200ml cans, the two new ready-to-drink variants, Latte and Mocha, have an ABV of 4%, an RRP of £1.90 and come in cases of 12. According to Nielsen data, nearly half of all Iced Coffee products are purchased in the convenience channel. In March, Baileys Iced Coffee took over as lead sponsor of TV show Made in Chelsea.

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Q: My local LSO has come into my convenience store and told me to take down all my alcohol posters from the windows at the front of my shop. He said I can only put posters beside my drinks display – is this right? Michael replies: In short yes. Promotional material relating to the alcohol you sell can only be displayed in the alcohol display area shown on the approved layout plans that attach to the premises licence. Normally there will be a public area for beer and wine, and an area behind the tills for spirits/ high value alcohol. If the windows are not within the approved area(s) shown on the plan the posters should not be displayed there; indeed, you shouldn’t advertise your alcohol offers within 200 metres of the store. Q: I’m buying a new shop, which already has a premises licence. The seller has been in trouble in the past for underage sales and his premises licence states that a personal licence holder must be working at all times when alcohol is being sold. Will this requirement end when I transfer the licence? Niall answers: The condition will not automatically “fall off” the licence. To amend or remove a local condition imposed at a review hearing you must either write to the board to outline that the change in circumstances means this is no longer necessary or lodge a major variation application. Regardless of the route followed, the request will be determined at a hearing before the licensing board. You therefore need to be in a position to convince the board that you can successfully operate without the need for the condition. This will require you to consider and present to the board, in detail, your practices, policies and procedures. I would recommend you seek advice from a specialist licensing lawyer before embarking on the variation.

APRIL 2017 | SLR

News

Newstrade

News& Magazines News RETAILER TERMS

CMA urged to act as Mirror raises cover price but cuts retailer terms Trinity Mirror’s recent decision to introduce a price rise for the Daily Mirror while simultaneously unveiling a cut in the margin that retailers receive for handling the newspaper has led to yet more calls for intervention from the Competition Markets Authority (CMA). The NFRN has said that it is “accelerating its calls for the CMA to investigate fairness in the news supply chain”. From Monday March 13, weekday editions of the Daily Mirror in Scotland increased to 75p but retail terms were cut by 0.9%. The price of the Saturday edition rose by 10p to £1.10 but the retail margin was reduced by 0.4%. NFRN Chief Executive Paul Baxter commented: “By acting in this way, Trinity Mirror is displaying nothing but total contempt for retailers who it obviously views as little more than cash cows that exist to be repeatedly milked. “Only a few months ago a senior member of Trinity Mirror’s management attended a meeting of the NFRN’s National Executive Committee, when he heard first hand of the intense pressures that news retailers are operating under and how they too face the same challenges posed by the National Minimum Wage. The last cover price change was so paltry the amount offered did not cover the 7.4% increase in the NMW last year yet the same has happened again. “In calling for a new market investigation, we will be leaving the CMA in no doubt that unfair practices continue to exist in the newspaper industry and that retailers have no option but to purchase goods from a fixed supplier in a fixed price market, where only certain sectors have any protection.” Mr Baxter said that the NFRN would be writing to Trinity Mirror Chief Executive Simon Fox and the company’s shareholders to express its disquiet.

THE VITAL IMPORTANCE OF FOOTFALL DRIVERS P50 LATE DELIVERIES Delayed deliveries fail to benefit retailers

NFRN: holding the front page doesn’t mean extra sales Newspaper publishers have been warned that holding the front page for late-breaking news or the sports section for a report from a major sports fixture does not necessarily equate to extra sales and the practice should be ceased, according to a survey by the NFRN. The survey of 300 independent retailers carried out on the NFRN’s website found that nine out of 10 of them wanted the practice “outlawed” when asked if extensions to cut-off times into wholesaler houses should be

allowed. NFRN Head of News Brian Murphy said: “Too many retailers already receive their newspaper deliveries later than required which jeopardises revenues and sales. Extending the cut off time for publishers by as much as 45 minutes when there is an international sports fixture piles even greater pressure on an already stretched supply chain and does little else than hamper the efforts of those who want to grow their Home News Delivery sales. “What’s worse, these agreements

CIRCULATION

Sun and Mail claim to be biggest Sunday newspapers The Mail on Sunday boldly claimed to be “the most popular Sunday newspaper in Britain” last month – on the same day that The Sun on Sunday cited official figures from the Audit Bureau of Circulation (ABC) showing that it was in fact around 118,000 copies ahead of the nearest competition in January. The ABC figures also showed The Sun’s share of the Sunday newspaper market was actually up by more than 1% on a year ago – the 19th consecutive month of share growth. The Mail on Sunday was basing its claims on new readership figures – as opposed to sales figures – from the National Readership Survey which showed that its 3.25 million readership was greater than The Sun on Sunday and more than The Sunday Times and Sunday Telegraph combined. The figures also indicated that The Mail on Sunday’s magazines were even more successful, with more than 2.4 million people reading You each week and 2.1 million reading Event. The NRS figures for June to December 2016 showed You was 640,000 copies ahead of any other Sunday supplement and nearly one million more than the Sunday Times magazine.

are struck between publishers without any consultation with retailers. This NFRN poll sends a very clear message to publishers that extending the cut off time into depots makes it much harder for those at the sharp end to sell newspapers. We want circulation departments to take this on board and warn their editorial colleagues that the evidence shows a requirement for newspapers to be printed earlier, not later, and unless the concerns of NFRN members are heeded that more news retailers than ever will be walking away from the category altogether so there will be fewer outlets available for their products to be stocked, whatever time of the morning that they arrive.”

DISTRIBUTION

Menzies performs welcome u-turn on Linwood Menzies Distribution has made a hasty u-turn and reverted back to its previous distribution footprint for customers served out of Linwood after what has been described as “its disastrous delivery performance” following a change in arrangements. Some deliveries arrived up to six hours later than expected while other retailers did not receive a supply at all. Menzies issued a letter of apology, and promised any future changes would be staged and properly managed to prevent a repetition of proceedings. The NFRN is pushing for automatic restitution and carriage charge refunds for its members affected by exceptionally late deliveries.

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Inside Business

Research Digest

LOCAL RETAILING TRAINING GAPS HIGHLIGHTED

new survey of convenience retailers has identified what has been called “a significant gap in training” in the UK local retailing industry. Carried out by Bolt Learning, the survey of 125 symbol retailers across seven symbol groups identified that: Q 1-in-5 admitted that they do not carry out induction training for new starters Q 1-in-3 convenience retailers consider training to be a significant challenge in their business Q 1-in-3 say keeping records of their teams training is an administrative ‘headache’. The survey also clearly identified that symbol retailers aren’t yet embracing new technology to help with the ‘headache of training’ – but that they do want to. The biggest limiting factors to training were, according to symbol retailers: Q No 1 – manager’s time (77%) Q No 2 – employees’ time (25%) Q No 3 – cost (7%)

SLR | APRIL 2017

However, only just over 1-in-10 retailers currently embrace online learning, with more traditional methods of training clearly preferred. Q No 1 – face-to-face in-store (94%) Q No 2 – shadowing a colleague (33%) Q No 3 – online (11%) Despite the figures above, over half of retailers say they’re open to trying eLearning in their stores, and even more want help from suppliers specifically. Many don’t trust current info/training from suppliers, and much doesn’t get passed on to sales staff. Around 20% of symbol retailers say the information they receive from supplier sales reps is sometimes inaccurate, on important areas like over-riders, rebates, POR and even product knowledge. “The convenience sector needs to look at digital training and communication to help stay in growth, and suppliers have a huge role to play in this, as well as symbol groups”, says Tom Fender, Director at Bolt Learning. “A lack of time shouldn’t need to be an excuse for lack of training and education.”

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Research Digest

TIME TO ENGAGE WITH THE ‘NEED IT NOW’ GENERATION?

n a new report examining post-millennials – those born between 1992 and 1999 – IGD research reveals how this highly influential generation of shoppers will shape the future of the food and grocery industry, overthrowing baby boomers as the generation with the biggest spending power and influence. The report identifies time and convenience as the key issues the industry can address to future-proof their business to align with these changing needs. Today’s post-millennials are prepared to spend money for products that meet these criteria. Indeed, when it comes to saving time, over half (54%) sometimes go to the nearest store even if it is more expensive (compared to 40% of those aged over 25). Furthermore, 52% of 18-25s claim they sometimes spend a bit more for easier to cook or prepare products (compared to 42% of those aged 26+). The top ten areas post-millennials are saving time on with regards to food and grocery are: Q 77% save time by using self-checkouts Q 69% save time by buying prepared food in jars, tins, packets or cartons Q 68% save time by spending less time cooking Q 67% save time by shopping in smaller convenience stores Q 64% save time by buying food-to-go Q 61% save time by buying pre-prepared meals or instant products

Q 57% save time by eating up leftovers from a previous meal Q 56% save time by buying pre-cut products, such as vegetables or fruit Q 55% save time by missing breakfast Q 48% save time by cooking in bulk Michael Freedman, Senior Shopper Insight Manager at IGD, says: “Our research gives us a unique insight into the minds of a group that, while relatively small today, will become even more influential and crucial to understanding the shopping behaviours of generations to come. We’re seeing the priorities of post-millennials differ significantly from older generations, with societal shifts and advancements in technology being key factors in the changing shopping needs of 18-25 year olds. “There are great opportunities for those businesses within the food and grocery industry to gain competitive advantage by meeting the needs of this powerful group of shoppers. However, those businesses that fail to understand the specific requirements of 18-25s will only risk losing out. It will be key to future-proofing businesses to meet the growing demands from post-millennials who expect better products, prices, more product diversity and improved services, along with wanting meaningful experiences and inspiration – while always demanding convenience.”

LUNCH ON THE GO DRIVING CONTACTLESS PAYMENTS

orkers grabbing lunch on the go is one of the key drivers behind a surge in mobile contactless payments, according to the latest spending data from Worldpay, the UK’s largest payments processor. According to Worldpay’s analysis of consumer spending patterns, the total number of contactless transactions where a mobile device was used reached 38 million by the end of 2016, with the total amount spent topping £288m. Lunchtime ‘Meal Deal’ hotspots accounted for 54% of all mobile tap and pay transactions processed by Worldpay last year. The number of mobile transactions as a percentage of all in-store transactions has grown by 247% in the past year, with a notable lift-off in adoption following the launch of Android Pay in September. Contactless spending on mobile devices peaked in December, when the amount spent using NFC enabled smartphones topped £51m and although the volume of in-store payments remains a small fraction of the total (1.18%), adoption rates suggest the technology is quickly gaining a foothold in the ‘tap and pay’ market. Spending on all forms of contactless systems now accounts for 28% of all non-cash transactions in the UK, with total spend exceeding £10bn for the year in 2016. In December alone, Worldpay processed over £1.5bn in contactless payments with shoppers spending an average of £10.39 per transaction. www.slrmag.co.uk

Inside Business

YOUNG FEMALE SHOPPERS BEHIND ‘FREE FROM’ GROWTH

he year of 2016 was notable for the rise of ‘Free From’ products within grocery, with sales of dairy-free milk alternatives ballooning, coconutbased ‘Free From’ NPD emerging and gluten free beer sales soaring in an otherwise relatively slow beer sector, according to a new report from convenience research specialists him! The company also says this is a trend that is already continuing into 2017, which is unsurprising given Nielsen’s prediction that the ‘Free From’ market will be worth £1bn by 2018 if current growth rates continue. With 16% of UK consumers identifying as having a food intolerance, as well as ample resources now being available for more shoppers to self-diagnose themselves, ‘Free From’ products need to be considered as part of a core range in convenience outlets. It will be critical to know which intolerances are most prevalent amongst shoppers. For example, one in 10 shoppers are dairy intolerant, therefore stocking popular dairy-free milk alternatives such as soya and nut milks is a necessity. The number of shoppers who identify as having a food intolerance is much higher within younger audiences, with 30% of 18-34 year olds stating they have a food intolerance. This is reflected in the number of shoppers buying ‘Free From’ products, with younger shoppers much more likely to do so. Females are also significantly more likely to purchase, with one quarter saying they do. Female shoppers tend to spend longer in store and drive up basket value, and hence both suppliers and retailers can benefit from attracting this shopper into store by providing a credible ‘Free From’ range. APRIL 2017 | SLR

Inside Business

2 Minutes | Paul Cheema

Paul Cheema Sent from Coventry to judge the SLR Rewards, the successful retailer and Association of Convenience Stores board member is anything but silent on the topics of the day. Despite facing some trying issues recently, Paul remains a resolute community worker and keen to share his experience. BEING AN SLR REWARDS JUDGE – WHAT DO YOU MOST LOOK FORWARD TO? Firstly, being asked to judge is an honour, whether at the SLR Rewards, or anything. I really feel a responsibility to be fair and honest. I enjoyed seeing innovation coming out, a bit of passion for the industry, and what retailers have done, over and above, to make their businesses stand out. FACTFILE The director of Malcolm’s Stores for over a quarter of a century, Paul Cheema is known as a spokesman for the retail industry. He’s been called to give expert opinion in the broadcast media and frequently quoted in the press. Since 2011, he has been a director of the Independents Board at the Association of Convenience Stores. Along with a host of board and representative roles, he lists property development among his other interests. Paul has a string of awards to his credit, including Convenience Retailer of the Year in 2013. He’s still looking for a nonproﬁt board to join.

SLR | APRIL 2017

YOU’VE BEEN AN AWARD WINNER YOURSELF, SO IS THE BOOT NOW ON THE OTHER FOOT? Not at all. I think this is one industry and we’re all on a journey together. We’re all here to learn, and I’ve just had the privilege of being able to learn from the best by making myself involved. This sector will keep getting better if we all remember that.

YOU’RE ALSO ACTIVE AS A BUSINESS COUNSELLOR? I sit on various panels, such as working with retail researchers him! I sit with the Nisa trade working group, and I’ve been with other retail business groups in the past. It comes back to sharing experiences. The minute we start to shy away from thinking collaboratively, that is the minute the industry is past its peak.

HOW DO YOU FIT THAT IN WITH ACS DUTIES? It’s fortunate for us, because my brother and I can run the business, so we share our time between that and our other work, but networking is always a very important part of building a business, so we see it as part of our plan, we always have done.

DO YOU STILL HAVE TIME TO GET INVOLVED IN THE COMMUNITY? Yes, that is very much our day job. That’s how I see it. We have a business that’s built up in the community, and running that business without the support and

involvement of the community would not be possible. We work with everyone, from the occasional customer, to the regular, through to everyone who has a part to play – local councillor and MP. Get teamed up with the community along with those who represent the community and you’ve pretty much done your advertising.

HOW MUCH TIME DO YOU HAVE FOR BEING IN YOUR BUSINESS? Plenty. It’s all about making sure that the business always comes first. I believe that effectively running your business from one day to the next, and learning from the experiences, becomes the best work you can do on your business. You’ve got to get that right, and understanding that getting the balance right is what really matters.

DO YOU PRACTICE WHAT YOU PREACH? Yes, I try to – you get the odd hiccough now and again, but we’ve got a good network group and we’re never too shy to ask a favour. Everyone knows we’ll return it just as readily.

IS CRIME AN ISSUE YOU’RE KEEN TO ADDRESS? Yes, very much so. There are bad apples in every community, we know that, but I’ve spent a lot of time recently in the media hammering home the point that crime, particularly shoplifting and illegal trade, doesn’t just hurt local shopkeepers, it harms the whole community. Crime is an attack on the community you live with.

HAVE YOU NOTED ANY DIFFERENCES BETWEEN TRADING IN ENGLAND AND SCOTLAND? No matter where you are from, no matter what culture, we all face the same issues when it comes to trading. Except maybe Scotland, where getting enough Tunnocks Tea Cakes and Walkers Shortbread is the big issue. Joking apart, it’s always about serving the needs of your community. www.slrmag.co.uk

Inside Business

Opinion | Gavin Rothwell, IGD

THE TOP FIVE FOOD-TO-GO TRENDS SET TO SHAPE THE SECTOR With food-to-go taking a bigger bite of grocery markets around the world, Gavin Rothwell, Senior Retail Insight Manager at grocery research organisation IGD, identifies the top five trends he believes will shape this sector in the future.

THE RISE AND RISE OF HEALTH AND WELLNESS “Shoppers are increasingly aware of health and wellness, and foodto-go operators are expanding the variety of flavours and products available to meet this demand. Foods that support active lifestyles and tick the box for dietary needs are performing well, while wearable technology and apps are helping shoppers to better understand the nutritional and calorific value of what they consume. “UK food-to-go shoppers are especially interested in products that suit particular diets, with 34% looking for a larger range of vegetarian products, 25% more dairy-free products and 23% seeking more vegan or gluten-free options.”

TARGETING NEW LOCATIONS “Many food-to-go specialists are now expanding to reach new types of shopper. For example, both Tossed and Pret are now present in motorway services, while Subway and Greggs are expanding across petrol forecourts, to target the on-the-go shopper. “Other operators, such as Leon and Tortilla, are also opening stores outside London for the first time, to meet growing appetite for food-togo outside the capital.”

AN INCREASED FOCUS ON ‘ALTERNATIVE MISSIONS’ “By ‘alternative missions’, we mean food-to-go occasions beyond the classic options of coffee or lunch. Although many retailers and specialists are focusing their efforts on breakfast, this is a relatively small market and spend per trip can be quite modest. We’re therefore expecting to see a broader focus on alternative missions at different times of day – some of this might be for evening meals, but there may also be opportunities at other times of day, for example a post-work 28

SLR | APRIL 2017

snack or post-gym energy boost. “Snacking provides a great opportunity for food-to-go operators. Almost half (45%) of UK adults have bought a snack on-the-go in the last month, so the size of the prize is huge.”

FURTHER INTEGRATION OF TECHNOLOGY “Almost all shoppers (92%) think speed and efficiency of service is an important driver of deciding where to shop for food and drink, so we expect technology to play an even bigger role in food-to-go in the future. Outlets such as San Francisco’s Eatsa and London’s Inamo have completely transferred customers’ entire ordering experience to in-store tablets, and last year Starbucks introduced a remote ordering app – a technology we also expect to really grow in popularity. US salad specialist Sweetgreen is going one step further, converting most of its stores to be cashless.

MORE FUSION BETWEEN RETAIL AND FOOD-TO-GO CONCEPTS “Grocery retailers across the world are looking at how they can better cater for the food-to-go opportunity. For the likes of Whole Foods Market and Wegmans in the US, it’s already a core part of their offer. However, other super and hypermarket retailers, such as Carrefour with its Bon App shop-in-shop format, are also focusing more on this area. “For smaller retail formats, Irish retailers are setting a great example in this field. For example, Musgrave’s Centra has been extremely progressive in how it delivers a compelling food-to-go offer, a convenience store and an enticing eat-in area in one single space. We expect more of this to follow in 2017 and beyond, as more retailers look to capture a share of the growing food-to-go opportunity.” www.slrmag.co.uk

AN INVITATION TO JOIN GROCERYAID Friday 23rd June 2017 6:30pm to 1am

FOUR COURSE COCKTAIL BAR Sponsorship packages available

GOODY BAG

Book your table now!

£380 per person • Lounge suits & cocktail dresses The Artillery Garden at the HAC • London EC1

The grocery industry’s summer party of the year! www.groceryaid.org.uk • events@groceryaid.org.uk • 01252 875 925 @GroceryAid • #GASummerBall GroceryAid is the trading name of the National Grocers Benevolent Fund. A Registered Charity Reg. No 1095897 (England & Wales) & SC039255 (Scotland). A company limited by guarantee, registered in England & Wales No 4620683.

SLR REWARDS REWARDS CEREMONY: 11 MAY 2017

SLR

AR R EW D S

2017

GOOD LUCK TO EVERYONE! With only weeks to go until the SLR Rewards 2017, we would like to wish all of the shortlisted entrants in this year’s Rewards the very best of luck - and there’s a mountain of amazing prizes up grabs as usual, including a trip to NACS in Chicago in October for the Scottish Local Retailer of the Year. BEER & CIDER RETAILER OF THE YEAR

FOOD TO GO RETAILER OF THE YEAR

Best-One @ Brownlies Costcutter Kelty Day Today Wallyford Nisa Local Greens of Markinch

David’s Kitchen Glenrothes Day Today 10 O’Clock Shop Giacopazzi’s, Kinross

BISCUITS RETAILER OF THE YEAR Best-One @ Brownlies Scotfresh Cardonald Spar Abronhill

CONFECTIONERY RETAILER OF THE YEAR Ardeer Service Station Clydebank Co-operative Society – Dalmuir KeyStore Spar Abronhill Spar Euro Garages Lomondgate

CRISPS & SNACKS RETAILER OF THE YEAR Giacopazzi’s, Milnathort JET Maybole Service Station Spar Renfrew

ECIGS RETAILER OF THE YEAR Certas Gulf Coatbridge Scotfresh Denny Branch SPAR Euro Garages Lomondgate

FRESH & CHILLED RETAILER OF THE YEAR Giacopazzi’s, Kinross Nisa Local Pinkie Farm Convenience Store Spar Renfrew Spar Tarves

COMMUNITY INVOLVEMENT RETAILER OF THE YEAR Family Shopper Blantyre Nisa Local Leven Nisa Local Pinkie Farm Convenience Store Premier Smeaton Stores

NEW STORE OF THE YEAR Ardeer Service Station Costcutter Kelty Giacopazzi’s, Kinross

MAKING THE MOST OF MILK

BEST REFIT OF THE YEAR

Spar Boswell Park Spar Leven Street, Motherwell Spar Renfrew

Day Today 10 O’Clock Shop Premier Linktown Local Spar Carmondean

NEWSTRADE RETAILER OF THE YEAR

RESPONSIBLE RETAILER OF THE YEAR

Giacopazzi’s, Milnathort Killie Convenience Spar Coatbridge

Certas Gulf Kirkintilloch Day Today Lochside Day Today Maryhill

SOFT DRINKS RETAILER OF THE YEAR

THINKSMART INNOVATION AWARD

Ardeer Service Station Londis Inveraray Spar Renfrew Spar Thornliebank

Ardeer Service Station Nisa Local Greens of Markinch Spar Renfrew

SPIRITS RETAILER OF THE YEAR Best-One @ Brownlies Day Today @ Renfrew Nisa Local Greens of Markinch

TEAM OF THE YEAR Giacopazzi’s, Kinross Nisa Local Leven Sinclair General Stores

WWW.SLRAWARDS.COM

Inside Business

Woodlands Local | Monthly Update

WOODLANDSlocal

ALL CHANGE ONCE MORE AT WOODLANDS!

SLR | APRIL 2017

A tweaked management team, a new EPoS system and a renewed focus on getting the basics right has been the focus for the last month or so in Woodlands as we aim to deliver much-needed growth. BY ANTONY BEGLEY

t’s spring clean time at Woodlands Local as we aim to get back to basics and start getting getting all the simple things back in place to attempt to deliver much needed growth in the store. One of the most significant recent developments was parting company with our store manager Gerry who has been with the store since we first bought it over three years ago. Gerry has been a fantastic member of the team at the store but with no history or experience in retail prior to taking over the management of the store he was finding it increasingly difficult to deliver the results that we were seeking. His commitment, passion and effort were never in doubt – but we have learned to our cost the old adage that retailers are born and not made. It was a sad few weeks when he left but the time had come to make a fundamental change to allow us to increase the focus on the shop floor and the vital need to maximise sales. Joining the management team in the wake of Gerry’s departure is Arlene Nixon, former Assistant Manager at the nearby Scotmid store. We have high hopes for a quick improvement, given Arlene’s formal training in retail and shop floor management and long experience in the trade, including a time at Woodlands Local many years ago with

former owner Stephen Carr. It certainly won’t be a simple task given the volume of flux in the business, not least because of the new RDP Epos system which is now fully live in the store. While we only have a few weeks under our belt with the new system, it seems exceptionally efficient, particularly for the day to day management of simple tasks like pricing, ticketing, delivery note management and stock control. It is also worth mentioning the absolutely superb support offered by RDP with the team always available on the end of the phone. Every time we have called, the phone has been answered in seconds and our query has been resolved in minutes. It makes such a huge difference to our ability to get the most out of the system.

TRAINING We are of course running into all manner of small challenges using a new Epos system but we’re quickly working our way through the key ones and we already have the system sufficiently functional to be able to run the store with a minimum of fuss. Our intention is to formalise the training process for the team so that we use as much of the Epos system’s functionality as possible. www.slrmag.co.uk

Monthly Update | Woodlands Local

On the subject of training, we are also set to embark on a new online training journey with Glasgow-based Bolt Learning. We have only just begun the process but the system looks extremely easy to use and helps us ensure all staff are fully trained in all key areas. Look out for a fuller report in the next issue. On a related matter, we are also recruiting new staff at the store and have had a very encouraging response from a promoted Facebook post with over a dozen people getting touch and supplying CVs. We realistically probably need around three or four more staff to be back at full strength and the interview process is already underway. As for in-store activity, we are currently working with a number of suppliers to develop several categories in the store. Our long-term project with Wrigley is well underway (see p36 for more details) and the till point area now boasts a far stronger gum and confectionery offer. We have a series of plans for the next few months to continue to develop in this area. Our project with Diageo on its range of price-marked premix cans is also in full swing and we’re already seeing huge growth in sales volumes, albeit from a relatively low starting point. The combination of great quality products and great value £1.50 price-marked cans is really working for our customers. The shelf trays and POS also help to enhance the fixture and bring new shoppers into the category, so we’re hoping for more of the same in future. As SLR was going to press we were also expecting the arrival of teams from Hi Street Digital and Walkers. Our new digital www.slrmag.co.uk

advertising screen from Hi Street Digital is due to be fitted any day and should bring some colour and life to the window display, highlighting great deals and products, as well as allowing us to promote our own deals and activity specific to the store. Walkers is also due to hit the store any day now to revamp our crisp and snacks range and the way it is merchandised in the store. Our core range is apparently “very, very good” but our £1 bag range needs a little work. A team from the crisps giant will be arriving under the watchful eye of Alan McCaffer to remerchandise the two main fixtures as well as a number of secondary and tertiary sitings around the store. We look forward to seeing that taking shape. Working on the principle that you can never have too many offerings for customers, we have also installed a Snowshock slush machine in the store as we aim to cash in on any hot weather that might make an appearance in Falkirk. The unit comes with enough free stock to cover the cost of the machine and with margins north of 70%, you don’t have to shift too many to start making it work. We’re off and running with Bubblegum and Raspberry flavours and we’ve already attracted a lot of attention for the machine, particularly among the local school children. It has been another tough couple of months at Woodlands, there’s no getting away from it, but we’re working hard at building systems that work and we’re hoping for a good summer that buys us a little breathing space to develop some of the grander ideas we have. Hard work and attitude seem to be what it’s all about, and we’re giving it our best shot.

Inside Business

“We are also set to embark on a new online training journey with Glasgowbased company Bolt Learning which will ensure our staff are trained in all key areas.”

APRIL 2017 | SLR

Inside Business

Woodlands Local | New Product Trials

GIVING IT A PUNT! We’re increasing our focus on NPD at Woodlands Local so we thought we’d share with you some new lines we’re trying in the store this month.

WOODLANDSlocal

THE ENERGY DRINK FOR GYM MONKEYS

SLR | APRIL 2017

The energy drink market is well and truly mature these days but we decided to have a go with a new brand called Moose Juice that claims some and unique USPs for serious gym and exercise fans. Produced by Corinthian Brands, the company behind Dragon Shop and HCC cider, Moose Juice is big on functionality with some ingredients that will resonate with customers that take their exercise seriously, particularly Branched-Chain Amino Acids (BCAAs), that help build body mass. Apparently gym monkeys understand the significance. The drink also contains B vitamins and has no sugar or aspartame. We have three lines in-store and despite a hefty price tag, we’ve already begun selling around a dozen cans a day from a standing start.

A TWIST ON AN IRISH CLASSIC Premix cans are beginning to sell really well in Woodlands, so we decided to take a punt on a couple of well presented new products from Irish whiskey giants Jameson. The triple-distilled cans come in two flavours – Jameson with Ginger & Lime and Jameson with Classic Cola – and come in 250ml doses with an abv of 5%. We’re selling them a launch discount price of £1.50 a can and hope to see some trial over the next few weeks. Watch this space...

THE GINGER THAT REALLY IS GINGER It’s unlikely that the good folks at PepsiCo understand the admittedly bizarre fact that many west coast Scots generically use them term ‘ginger’ to refer to pretty much any fizzy soft drink, but that shouldn’t prevent new Pepsi Max Ginger from being a hit with cola fans looking for a zero sugar alternative with a bit of a kick. As far as we can recall, we’ve never come across a ginger-flavoured cola before and the initial response from in-store sampling has been overwhelmingly positive. One customer even described it as tasting like “a mix between Pepsi and Irn-Bru” which is hardly a bad thing! We have it in two formats in the store – PET 500ml bottle and 330ml can – and we can’t wait to see who’ll be trying it and buying it.

www.slrmag.co.uk

Diageo Premix PMP Cans Trial | Woodlands Local

Inside Business

PRICE-MARKED PREMIX HITS THE RIGHT SPOT WITH SHOPPERS

Just a month into a trial of a range of £1.50 price-marked premix cans from Diageo, sales are already rocketing as customers buy into the winning combination of quality from a trusted brand and great value. BY ANTONY BEGLEY

Product

Av weekly sales Av sales vol vol for eight during trial weeks before trial

Gordon’s Gin & Slimline Tonic Gordon’s Gin & Tonic Smirnoff & Cola Smirnoff & Diet Cola Captain Morgan’s & Cola Smirnoff & Cranberry

e are now well into the second month of our trial project with Diageo on their new price-marked £1.50 premix spirit cans. Premix spirits have always sold relatively solidly in the store but with prices well over the £2 mark, the products tended to be bought by a small, dedicated band of customers who purchased them regularly. Very few new customers bought into the category. The launch of new price marked cans at £1.50 signalled an opportunity to bring more of our shoppers into the category, delivering great quality products from trusted brands, but at significantly lower selling prices. The products have been on sale for around six weeks now and we’re delighted to report that, almost across the board, the price marked cans have how delivered very significant growth. Perhaps most surprising has been the huge success of the Gordon’s Gin & Slimline Tonic variant. This was a product that sold in very low volumes historically but has suddenly exploded in the new pricemarked format. The average sales volume for the eight weeks running up the trial showed average weekly sales of only around 5 cans. In the first few weeks since the new price-marked packs were introduced, that volume has risen to an average weekly total of over 22 cans, an increase of 340%! The weekly sales averages are now as follows:

www.slrmag.co.uk

5 13 10 4 8 6

22 18 5 9 3 10

Variance

+340% +38.5% +50% +125% +62.5% +66.6%

The sales figures are very encouraging, although they were undoubtedly boosted by the use of high quality merchandising units, shelf talkers and POS. The spring-loaded shelf units serve to keep the fixture permanently faced up as well as ensuring the correct number of facings is reserved for every SKU. We decided upon double facings for every product to both maximise impact on presence on-shelf in the chiller, as well as ensuring great availability and minimising the restocking work required. We will continue to monitor the sales over the next month and provide a full update in the next issue. So far, however, it’s fair to say that the range is a winner with our customers!

APRIL 2017 | SLR

Inside Business

Woodlands Local | Wrigley Project

MAKING GUM SALES STICK WITH WRIGLEY Last month saw the launch of a new long-term project with gum and sugar confectionery giant Wrigley to implement its Perfect Store concept in Woodlands.

WOODLANDSlocal

BY ANTONY BEGLEY

SLR | APRIL 2017

hen it comes to profit generators, chewing gum is right up there with the very best of them – a fact that will already be well known to retailers across Scotland. That’s why Woodlands Local has hooked up with the standout market leader Wrigley to carry out a longterm project to implement best practice in every aspect of gum sales at the store. We have a long and very successful relationship with Wrigley and already achieve significant gum sales at Woodlands – but there’s always room for improvement. The first step was an audit of the store to see how we performing against Wrigley’s Perfect Store criteria. The audit was carried out by Regional Sales Manager Brian Condie and the good news is that our scorecard wasn’t too bad at all – but Brian and his team did have a number of sensible suggestions to help us leverage the category even further. The audit examined every area of the store to identify opportunities to drive core sales and impulse sales.

GUM In the all-important gum category, Wrigley were pleased with our core product range but recommended a few additions and a full remerchandising of the area, including the addition of two new counter-top units for the best selling SKUs. The new units sit right in front of both tills and are unmissable to shoppers, hopefully driving impulse sales of key lines and higher ticket premium bottles. The two units are identical for the sake of consistency and also to ensure shoppers at both tills are exposed to these key lines. Below the counter top, we have completely remerchandised the top two shelves to ensure the gum range is comprehensive and well presented.

prominent sites and grouping the products more logically, including the medicated confectionery lines. The end result is a neater, more logical layout that should be easier for customers to shop and should – hopefully – result in bigger sales and profits.

HANGING BAGS With just four hanging bag hooks slots below the counter, Wrigley recommended ensuring that these hooks were only used for the biggest selling lines. To the left of the counter our extensive dedicated hanging bag display offers a wide range of products but was missing some of Wrigley’s key lines. These have now been added in. Wrigley also recommended blocking the hanging bags by brand, rather than having the products scattered around the fixture. In terms of range, Wrigley absolutely recommends the implementation of its Perfect Store Core Assortment along with its recommended Mint Range, as well as its Full Assortment where space permits. Finally, on our gondola ends, Wrigley advised stocking relevant NPD and extra facings of core lines. All very sensible and no rocket science involved – but the store already looks neater and tidier. Look out next month for how the first set of results, and for the next phase in our project: a large scale customer sampling campaign.

SUGAR SINGLES The shelves below the gum were also remerchandised into a more logical order, bringing the key lines into more www.slrmag.co.uk

Digital Screen Trial | Woodlands Local

WRIGLEY PERFECT STORE – KEY RECOMMENDATIONS GUM Q Add two new Counter Top Units for the best selling and most profitable lines Q Same planogram for both new units for consistency at both tillpoints Q Add new hooked merchandising unit for Extra Bags Q New planogram for the two gum shelves below the checkouts using existing lines plus the addition of a number of new lines Q Range Doublemint with other mint products SUGAR SINGLES Q New planogram and updated range for sugar singles below the checkouts HANGING BAGS Q Re-ranging of hanging bags hooks below checkouts Q Re-ranging of dedicated hanging bag area and gondola ends to ensure all top sellers are listed and sited prominently Q Brand-blocking of Wrigley hanging bags (rather than scattered around the fixture) Q Opportunities for clip strips to be identified

WRIGLEY PERFECT STORE – RECOMMENDED HANGING BAG RANGE & RANKINGS CORE ASSORTMENT Q Skittles Original 174g/PMP Q Starburst Original 192g/PMP Q Skittles Sours 174g/PMP Q Skittles W’berry 174g/PMP Q Skittles Tropical 174g/PMP Q Starburst Favereds 192g/PMP Q Starburst Very Berry 192g/PMP

1 Facing 1 Facing 1 Facing 1 Facing 1 Facing 1 Facing 1 Facing

MINTS RANGE Q Doublemint Bag 115g/PMP Q Doublemint Roll Pack Q Doublemint 70s

1 Facing 1 Facing 1 Facing

FULL ASSORTMENT (WHERE SPACE PERMITS) Q Skittles Fruit 174g/PMP 2nd Facing Q Starburst Original 192g/PMP 2nd Facing Q Skittles Sours 174g/PMP 2nd Facing Q Skittles Tropical 55g/PMP 1 Facin Q Starburst Favereds 45g/PMP 1 Facing

Inside Business

Going digital for sales hikes! As SLR was going to press we were just waiting on the team from Hi Street Digital arriving to install our new digital media screen in the front window of the store. Digital is the future, as we’re always being told, so a brand new digital screen in-store sounds just like the sort of thing we need at Woodlands Local. We’re working with digital media specialists Hi Street Digital to install a new screen in Woodlands. The screen is set to be fitted to the front window of the store imminently and will carry a series of ads for major manufacturers to help drive in-store sales. To make room for the screen, we’re having to remove the original vinyl and replace it with a new customer-made one to fit around the screen. This also gives us the opportunity to produce a vinyl more in line with the current in-store offering and highlight some key areas such as our hot food offering, our expanded alcohol range, the Woodlands Local Rewards Club and more. The new screen will run all day long and will bring an ambience and splash of colour to the exterior of the store, as well as hopefully driving sales. Look out in the next issue for some updated photos and some initial response from our customers.

WRIGELY PERFECT STORE – GONDOLA END RECOMMENDATIONS & RANKINGS CORE ASSORTMENT Q Skittles Fruit 174g Q Starburst Original 192g Q NPD as appropriate Q Skittles Sours 174g Q Starburst Very Berry 192g

3 Facing 3 Facing 3 Facing 2 Facing 2 Facing

FULL ASSORTMENT Q Skittles Tropical 174g Q Starburst Favereds 192g

www.slrmag.co.uk

1 Facing 1 Facing

APRIL 2017 | SLR

Inside Business

Woodlands Local | Snowshock Slush Machine

WOODLANDSlocal

CASHING IN ON SLUSH AT WOODLANDS

With warmer weather on the way we’re planning on cashing in on high margin sales with a new slush machine from Snowshock. Bring on the sunshine! BY ANTONY BEGLEY

SLR | MARCH 2017

t’s always dangerous to rely on warm weather in Scotland but it’s fingers crossed for a decent summer this year. One of the categories which always performs well in hot summer weather is slush – so we’ve got ourselves a new slush machine from specialists Snowshock. Kids love slush when the sun’s out but what really attracted us is the massive 77% average profit margin available. With so many categories delivering very low profit margins these days it’s great to have a category to balance that out. The machine is easy to fill, easy to clean and easy to use. We’ve gone for a two chamber machine that lets allows us to offer two different flavours from the range of 12 available. (For larger stores a three chamber machine is available.) We’ve started off with Strawberry and Bubblegum – and the great news is that we’re already selling them in decent quantities.

The machine has a prominent position behind the till and is highly visible to the may schoolchildren that visit the store. We offer slush in two sizes – small and a large – and the 77% margin from very solid price points delivers more cash profit than the vast majority of products we sell in-store. The machines gets to temperature in a matter of 15 minutes or so and takes care of itself all day long with very little attention. It’s also well-designed and easy to clean at night. What’s more, the machine is even supplied with enough free stock to cover the cost of the machine, which gets us off to a flyer. Syrups, cups and straws are easy to order and the machine comes with a lifetime guarantee. It’s not surprising that the company has over 2,500 active customers. We’ll update you in future issues of SLR on how we’re getting on with our new machine so watch this space.

77% average proﬁt

ﬂavours available

FOR MORE INFO YOU CAN CALL SNOWSHOCK ON

0330 053 6132 www.slrmag.co.uk

Product News & Media Watch

Hotlines

KitKat Bites Peanut Butter Nestlé Confectionery Setting its sights on the popular sharing bags category with its second launch in six months from ﬂagship brand KitKat, Nestlé has introduced New KitKat Bites Peanut Butter, which joins last September’s launch of original KitKat Bites. Bags have an RRP of £1.59 and the launch is supported by a £3m high profile media campaign.

Pepsi Max Ginger Britvic Soft Drinks Pepsi Max is spicing up the soft drinks category with the launch of Pepsi Max Ginger, the UK’s first cola and ginger ﬂavour. Containing natural ginger ﬂavouring and no sugar, the variant is available in 330ml single and multipack can, 500ml, 600ml, 1.5L and 2L bottles in both plain and price marked packs.

Coca-Cola brings a classic ﬂavour to Zero Sugar range with new Vanilla variant Coca-Cola European Partners has launched a new vanilla variant of Coca-Cola Zero Sugar, targeting the increasing demand for sugar-free soft drink options. The new addition taps into the popularity of CocaCola Classic Vanilla, which has performed well for the brand since its launch in 2013, and the success of Coca-Cola Zero Sugar, which has become the fastestgrowing cola brand in Great Britain. The launch is supported with POS, out of home, digital and social media campaigns to drive consumer awareness of the new variant and help retailers increase their sales. Coca-Cola Zero Sugar Vanilla is available from this month in 1.75L, 500ml bottle and 330ml can formats as well as an 8x330ml can multi-pack. The 500ml and 330ml formats are also available in price-marked packs. Simon Harrison, Operational Marketing Director at CCEP, said: “The launch of Coca-Cola Zero Sugar Vanilla and the reformulation of Coke Zero Cherry to the new Coca-Cola Zero Sugar recipe are exciting next steps for a brand that has already enjoyed fantastic success since it launched last summer because of its sugar-free credentials and great taste.”

Capri-Sun No Added Sugar Orange-Lemon Coca-Cola European Partners

Walkers £1 PMPs Pepsico Walkers has extended its £1 pricemarked-pack range to include brand favourites, Squares Salt and Vinegar ﬂavour, French Fries Cheese and Onion ﬂavour and Walkers Max Steak. According to Nielsen Data, in the convenience channel, Walkers PMP crisps sell on average 15% faster than non-PMP variants.

SLR | APRIL 2017

This month sees the launch of Capri-Sun No Added Sugar Orange-Lemon, helping retailers tap into the growing demand for low calorie juice drinks for immediate consumption. The new Orange-Lemon ﬂavour comes in a 330ml pouch, and is being backed by a £500,000 digital campaign. It is available in an 89p price-marked pack.

Drench Sparkling Britvic Drench has launched a new single serve 500ml bottle for sparkling variants of its popular brand. The new format will be rolled out from the end of March across all channels in cases of 12 and 24 bottles, and will be supported by a high impact above the line campaign in May. It is also available in £1 pricemarked packs.

GoGo’s Kerry Foods A new range from Kerry Foods called GoGo’s takes aim at the adult cheese snacking market. The snack packs contain cheese bites alongside a range of nutritionallypacked ingredient combinations. The range is comprised of: Full of Beans, Oat–Tastic and Protein Power. Full of Beans and Oat-Tastic are available in 55g packs (RRP £1.50) and Protein Power is available in a 70g pack (RRP £2).

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Product News & Media Watch Lucozade Energy Lucozade Ribena Suntory

McVitie’s Mini Mouthfulls United Biscuits

Lucozade Energy continues to drive growth in the soft drinks category with the launch of two ﬂavours, Blackcurrant Bliss and Pineapple Punch, exclusive to wholesale. Available now, both ﬂavours come in 380ml £1 pricemarked packs. To support the launch, Lucozade Energy has created a full range of POS materials available to order now.

McVitie’s has launched three new cake bites tubs, featuring Digestives Mini Milk Choc Tiffin and Caramel Crispies, and Hobnobs Mini Milk Choc Teacakes. The new range, which aims to capture the at home sharing market, are available now to convenience stores with an RRP of £2.50.

MEDIAwatch

Hotlines

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Heinz Ketchup shows its weiner Kraft Heinz has brought its ‘Irresistibly Tasty’ Heinz Tomato Ketchup creative to the UK. The campaign starts this month with a 30’ second VOD spot titled ‘Weiner Stampede’, which shows what happens when a stampede of ‘hot dogs’ is unleashed on Heinz Tomato Ketchup. The ad also features a five second tag for Heinz Tomato Ketchup 50% Less Sugar.

Baby Dragon heats up Doritos Mentos Mix on the Beach Mentos

Ritz Crisp and Thins Mondelez International

Mint maker Mentos has launched new Mentos Mix on the Beach, a limited-edition pack that brings favourite fruity cocktail ﬂavours in chewy confectionery form. Available now until stocks last, the new singles contain three ﬂavours: Peach Orange, Strawberry Banana and Passionfruit Mango. RRP for the product is 47p, which comes in outers of 40 rolls.

Ritz Crisp & Thin is aiming to help retailers drive savoury on-the-go snack sales with the launch of a new limited edition 39p promotional PMP. Available until the end of May, the PMPs will run across Cream Cheese & Onion and Sea Salt & Vinegar variants of the on-the-go 30g format.

Doritos is supporting the launch of its new Heatburst range with a two month TV campaign that builds on its ‘For the Bold’ positioning. The ad stars a baby dragon and his new owner, who quickly finds out he never knows when the little fire-breather is going to ignite. The TV launch is supported by out-ofhome and digital campaigns.

Hula-Hoops puts a ring on it Hula Hoops is back on TV screens with a new creative that aims to remind consumers of how fun the snack can be. The 30-second clip uses the strapline ‘Sorry! I’ve got my hands full’ at its heart, playfully reminding adults of the childhood joy that can be recaptured by placing individual hoops on each finger.

Fruit Shoot promotes passions Schweppes Sparkling Juices Coca-Cola European Partners

Topicana Morning Boost Pepsico

Schweppes has launched a new 250ml can format for its Sparkling Juice Drinks to offer more soft drink choices for premium products to consume whilst on-the-go. Available now, the new format replaces the 330ml can and boasts only 50 calories per 250ml portion. It comes in Grapefruit and Blood Orange and Lemon and Elderﬂower ﬂavour variants.

Tropicana has introduced a first for its brand with its Morning Boost smoothie. The product is a combination of fruit juice, fruit purée and cereals and is available in in a 750ml size (RSP £2.99) and 330ml (RSP £1.99) bottles. Flavours include Apple & Pear, Orange, Banana & Mango, and Forest Fruit.

Robinsons Fruit Shoot has launched a new campaign entitled ‘It’s My Thing’, celebrating children chasing their passions about and inspiring parents to support kids in finding their ‘thing’. The campaign includes a 40-second commercial that will broadcast into the summer.

Gillette campaign roars Gillette has launched ‘The Honest Player’; a short film featuring international rugby player, George North in partnership with the British & Irish Lions. The film, which features the Gillette Fusion range, offers consumers the chance to win the ultimate trip to New Zealand to watch the Lions.

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

APRIL 2017 | SLR

Feature

Tobacco

EUTPD2:

IT’S THE FINAL COUNTDOWN As the EUTPD2 legislation comes into full effect on the 20th May, time is now running out to ensure your business is fully compliant come D-Day. BY IAIN HOEY

s SLR readers may recall, the Scottish Government first launched its latest tobacco control strategy, ‘Creating a TobaccoFree Generation’, way back in March 2013. That strategy document had tobacco retailers running for cover with a raft of proposals that would have profound implications for the local retailing industry in Scotland. The strategy set a target to reduce smoking prevalence rates to 5% or less by 2034. The final and most significant step in that strategy kicks off on the 20th May 2017, the deadline beyond which retailers cannot legally supply tobacco stock that does not comply with Tobacco Products Directive (TPD2) regulations. By now, all retailers should be familiar with what that means for the business, but it’s worthwhile taking one last run through the key points. The regulations coming into effect state that retailers cannot sell any branded tobacco products. Packets of cigarettes must contain no fewer than 20 sticks, and rolling tobacco pouches must contain no less that 30g of tobacco. Retailers who fail to comply with the new regulations do so at their own risk. If found guilty of selling non-compliant products after 20th May, they face a fine and/ or a prison sentence in extreme cases. Fortunately for retailers, the big tobacco players in the UK have proven to be extremely helpful over the last few years in helping the trade prepare for this sea-change - and will continue to be so. Andrew Miller, Head 42

SLR | APRIL 2017

of Field Sales at Imperial Tobacco UK, says that tobacco companies are there to help ensure the supply chain runs smoothly during the transitionary period. “We inform all of our wholesalers in advance when lines are likely to disappear so as to ensure they can advise their retailers accordingly,” Miller says. He recommends that retailers keep in regular contact with their cash & carry depots concerning up-to-date information on all SKU lines and their predicted run-out dates. He also advises that they fill any gaps on their gantries with the new standardised stock that has replaced previous lines, as this will ensure they are able to fulfil demand as consumers’ purchasing patterns may potentially shift to meet the new legislative requirements. Miller asserts that Imperial are working work closely with retailers to help them manage the transition, including encouraging them to focus on stockroom management to ensure they can navigate the new standardised format when all brands have transitioned, merchandising their gantries using Imperial’s ‘one brand, one shelf’ solution and prioritising selling through any remaining branded packs before 20 May. In regards to performing range reviews, Miller advises that retailers stock a wide range of their usual bestselling tobacco products when the deadline hits. “After an initial settling-in period of a month,” he says, “it might then be sensible to conduct a range review in conjunction with their designated

Imperial representative to evaluate whether said products are selling through and evaluate/act on any changes in their adult smoker consumers’ purchasing habits.” As the standardised packs come into effect, it is important, says Miller, to make sure all staff are appropriately trained to engage their adult smoker customers in conversations around the legislative changes, including the loss of price marked packs (PMPs) and new minimum pack sizes. Imperial provides retailers with a suite of educational materials in their Partnering for Success Start packs. The changes are likely to have significant impact on tobacco sales considering pricing will become the most obvious differentiator between brands. “Convenience stores will need to manage their own pricing strategies particularly carefully during this period of significant legislative change,” Miller says. “Wholesalers pricing at recommended retail price or below and retailers making customers aware that they also sell tobacco products at these competitive price points, for instance, is a great way to foster loyalty and minimise any potential channel shifts – a scenario which occurred in Australia when they switched over to standardised packs in 2012.”

ROLL YOUR OWN PROFITS Just over 1 in 3 tobacco sales in the UK involve a roll your own (RYO) product (ITUK estimate January 2017). Owing to the current consumer www.slrmag.co.uk

Selling illegal tobacco?

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Tobacco

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£25.6m Value of Scotland’s RYO market

Big brands, low prices “Sovereign and B&H Blue are the go to low price brands for my adult smoker customers – so I always make sure I have plenty of stock across both ranges. Since plain packs have begun appearing, I have noticed that recognisable, trusted brands with lower prices have become an increasingly important part of the purchasing decision for my customers. I stock both these brands to ensure I maximise my sales.” Manny Patel Manny’s News Food & Wine, Surbiton

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SLR | APRIL 2017

trend towards the best possible value for money, Imperial’s Gold Leaf economy brand is performing well, particularly in 25g and 50g weights, according to Andrew Miller. He says that Drum continues to be a popular value proposition, while Golden Virginia classic remains the UK’s number one premium RYO brand, with a sector share of over 92%. RYOs are about more than just the tobacco, and could not exist without suppliers of rolling papers, filters, lighters and matches. Republic Technologies (UK) Ltd is enabling retailers to offer consumers the choice, value and quality they’re looking for in Scotland’s £25.6m roll your own accessories market. “The key to increasing sales of RYO accessories is to offer shoppers the leading brands they’re looking to buy, but also to take account of the new product developments that reflect the way the market is evolving,” says Gavin Anderson, General Sales Manager for Republic Technologies (UK) Ltd. One such development, and

currently exclusive to Scotland, is the recent introduction of the combined Zig-Zag Silver Slim Papers and Tips (RRP £1.19). The combined packs of 32 papers and 32 filter tips are designed to be displayed vertically, taking up less shelf-space vs. competitive packs. “Retailers also need to take account of those RYO accessories which are experiencing the strongest levels of shopper demand,” Anderson adds. He says that Swan Extra Slim Menthol filters and Swan Ultra Slim filters are popular, with both showing strong growth in all channels, but stresses that many retailers are yet to capitalise on the sales opportunity by listing these ‘in-demand’ products, with filters continuing to prove a booming sector in the UK accessories market, valued at over £71.6m (IRI sales data December 2016). Anderson also highlights the role that matches and lighters can play in Scotland to signpost the RYO accessories and tobacco category. “The increasingly regulated environment means that retailers must think carefully www.slrmag.co.uk

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Tobacco

1 IN 8

Retailers are under threat from illicit tobacco trade

about how best to signpost the category which matches and lighters can do effectively” he adds. In addition to its range of Swan and ZigZag RYO accessories, Republic Technologies (UK) Ltd supplies a comprehensive range of lighters and matches under its Cricket, Poppell, Cook’s, Bryant & May, Ship, Scottish Bluebell and Vulcan brands.

HONEST TRADING The illicit trade of tobacco continues to be a scourge on the UK’s retail sector. 1 in 8 independent stores (Tobacco Retailers Survey 2015) are under threat from the damage being done to sales and associated basket spend by illegal tobacco, and illicit tobacco purchases cheat UK shops out of around £3.4 billion in lost revenue each year (Tobacco Manufacturers’ Association 2016). Illicit trade can have a devastating impact on UK wholesalers, from whom the vast majority of honest independent retailers originally buy their tobacco, Peter Nelson, Anti Illicit Trade Manager at Imperial Tobacco, claims. In response to this continued threat, Imperial Tobacco and trade industry body the Federation of Wholesale Distributors (FWD) have collaborated on a new, wholesalefocused instalment in the ‘Suspect it? Report it!’ campaign. The poster, which appears in the trade press and in cash and carries across the UK, 46

SLR | APRIL 2017

depicts a depot empty of any tobacco-buying retailers alongside the message: “Have you noticed anything’s missing?” Nelson says it was inspired after evidence from Imperial’s wholesaler partners suggested sudden drops in tobacco sales in depot might indicate a spike in illegal sales in a locality. “Wholesalers can be a valuable barometer in terms of detecting increased illicit trade and identifying whether organised criminals may potentially be targeting specific regions or communities,” Nelson explains. “For instance, by using information about a drop in cash and carry sales when established retailers either markedly reduce or actually stop purchasing their tobacco products through this legitimate supply chain, tobacco manufacturers like Imperial can commence investigations. “Any reports of suspicious activity provided by wholesalers and independent retailers to Imperial Tobacco’s dedicated AIT team are handled with the upmost sensitivity and passed on to the appropriate authorities.” James Bielby, Chief Executive of FWD, adds: “Wholesalers are often the first to know if there is a rise in illicit trade in their area, because their own sales drop as their retail customers are selling less due to the availability of illegal product. Retailers who visit cash and carries often pass on information about illegal sources near their stores. The sooner criminal activity is detected and reported the

sooner it can be stopped, and this campaign aims to remind wholesalers and retailers that any information passed on to the authorities, including unexpected drops in sales, supports the legitimate, responsible and duty-paying supply chain.” Nelson emphasises the blight of illicit tobacco, calling on action from local businesses at every stage of the supply chain. He urges that “If any wholesalers or independent retailers have suspicions around its sale in their area,” to “please act by contacting either the Customs Hotline on 0800 59 5000, or your local Trading Standards or Police”.

FROM 20 MAY 2017 RETAILERS CANNOT LEGALLY: Q Sell any branded tobacco packs. Instead they can only sell standardised packs. Q Sell cigarette packs containing less than 20 sticks. Q Sell rolling tobacco packs of a lower weight than 30g.

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E-cigs

ARE YOU UP TO SPEED ON NEW VAPING RULES? New legislation comes into effect over the next two months and so SLR gives the low down on how retailers should prepare for the changes ahead

his month sees an the introduction of new legislation under an act of the Scottish Parliament which imposes an age limit of 18 on purchasing e-cigarette devices, bringing vaping under the same rules that govern tobacco products. This new law also includes a ban on adults proxy-purchasing the product for under-18s, a registration system similar to the tobacco retailer’s register and a challenge 25 age verification policy. Next month will mark the arrival of the long-awaited implementation of the final stage EUTPD2 legislation. The latest developments mean there is still a little work to do by retailers on educating themselves (and their customers) on the changes to the vaping category. Retailers should already be keeping a close eye to stock levels to ensure that all non-compliant stock will be sold through ahead of the May 20 deadline. The penalties for any retailers found to be selling non-compliant products include fines and even jail sentences in severe cases.

“EUTPD2 will lead to the closure of up to 55% of vape stores, presenting a real opportunity for local retailers.”

£2

WHAT IS COMPLIANT?

the average vaper’s daily spend

Under the new legislation, a number of rules denoting what counts as compliant stock will be in enforced from May 2017. These include: 1. the requirement for e-cigarettes to have health warnings covering 30% of the pack 2. a 10ml maximum volume for e-liquid bottles 3. a 20mg/ml maximum concentration of nicotine in e-liquids 4. E-liquids in cartridges and single-use devices will be subject to a 2ml maximum volume. It is estimated by the 100k Campaign Survey that the arrival of EUTPD2 will lead to the closure of up to 55% of vape stores, presenting a real opportunity for local retailers to make their store a destination for vapers. Jennifer Roberts, VP Customer Marketing at blu UK, says that it’s crucial to make the most of this opportunity by ensuring 100% product availability at all times to capture and retain 48

SLR | APRIL 2017

SCOTTISH PARLIAMENT’S HEALTH ACT – E-CIGARETTE LEGISLATION Q An age limit of 18 on purchasing the devices (from April 2017) Q A ban on ‘proxy purchasing’ by adults for under-18s (from April 2017) Q Prohibition on selling e-cigarettes from vending machines (from April 2017) Q A registration system for e-cigarette vendors, similar to the tobacco retailer’s register (from April 2017, with enforcement from October 2017) Q A ‘Challenge 25’ age verification policy for e-cigarette purchase (from April 2017) Q Powers to regulate domestic e-cigarette adverting – e.g. billboards, distributing samples and leaﬂets, point of sale (2018)

E-cigs

MAKE THE MOST OF THE OPPORTUNITY

2.8m

Q Stock a strong range 2-3 of the top selling brands. Vapers in the uk Q Stock the three key product types – disposables, rechargeables and tank kits. Q Stock refills in a variety of ﬂavours – tobacco, menthol, blueberry, etc. Q Stock and actively sell accessories – consumers should be replacing their clearomisers every two to four weeks. Q Make your range visible. Q Use counter top displays to enable consumers to see and interact with products. Q Use back wall if counter space limited or for stock. Q Provide consumer product information to help them choose. Q Train staff to be able to guide shoppers to the right products and upsell. Q Promote slow selling lines to clear stock.

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loyal customers. “Scotland’s sales are growing ahead of the market, up 17.5% year on year, with a market value of £16.4m,” says Roberts. “The higher growth has been the result of more sales moving into open system kits, which tend to have a higher retail selling price than other devices.” As the price of conventional cigarettes and other tobacco related products continues to rise, vaping products present a more affordable option for existing smokers. In the UK, the average vaper spends about £2 on vaping related products on a daily basis. “For retailers, tobacco sales may be significant at present but the profit margins are minimal.” Roberts says. “While on the flip side, vaping product sales may be small, but the margins available are high. With the value and size of the category growing in popularity, as more and more smokers look to switch to vaping products, this is an opportunity that shouldn’t be missed.” She advises that retailers make sure they offer customers the right product for their smoking needs, with open systems for heavy smokers, and closed systems for light smokers as well as the range of e-liquids associated with the open system ranges. She also recommends stocking one closed system kit and the associated refill cartridges.

APRIL 2017 | SLR

Footfall Drivers

Feature

BRINGING OPPORTUNITY TO YOUR DOOR For many stores, the key to unlocking a world of opportunity is maximising the number of customers you can bring through the door and there are a number of tried and tested footfall drivers that are guaranteed to do just that.

n today’s ultra competitive retailing environment, the focus for many local retailers has shifted into just one area: profit. As margins get squeezed by everything from relentless promotions to a fascination with the £1 price point, it has become increasingly difficult for retailers to make that cash profit that they need to maintain a healthy business that provides significant employment and a vital service for the local community. The reality remains however retailers can only make profit when customers come through the door and, more often than not, that means making the most of the most important footfall drivers. Bringing customers through the door more often and in bigger numbers has never been more important for retailers – so it’s vital that they make the most of the products and services that drive shoppers to the door on a regular basis. Once those shoppers arrive, it’s the retailer’s task to use his or her skill, experience and creativity to ensure that as well as purchasing the service or product they came for, they also leave with an additional purchase or two. Footfall drivers come in many forms, from the traditional newspapers, tobacco and Lottery that bring customers to your door most days of the week to services like PayPoint and, increasingly, Post Office counters. The deregulation of the Post Office network has opened up a whole world of opportunity for local retailers in Scotland and it is becoming increasingly common to find Post Office facilities in convenience stores these days. Meanwhile, over 28,000 stores in the UK offer PayPoint facilities with customers visiting every day in life to make use of them. Over 10 million people use PayPoint services every week. That’s a lot of footfall.

SLR | APRIL 2017

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Footfall Drivers

THE POWER OF THE POST OFFICE Q The Post Office is the number one provider for letters and parcels in the UK Q It is the biggest provider of travel currency in the UK Q For personal banking, customers can access any bank in the UK through the Post Office Q 104 million banking transactions were conducted through the Post Office last year on behalf of the UK high street banks. Q 99% of UK personal bank account holders can access their bank services in a Post Office branch Q The Post Office may also actually become technically the UK’s largest banking network as Banks continue to close branches Q The Post Office is the preferred supplier for government services. For POCA the Post Office is the only place customers can withdraw money Q The Post Office is the largest provider in the world of money transfer – larger than Western Union

POST OFFICE According to data from the Association of Convenience Stores, the top three things people want on their high street are a food shop, a bank and a Post Office. The beauty of a convenience store with a Post Office local is that it combines all three, offering day-today personal and business banking for all the UK’s major banks. The Post Office is more than a household name or brand in the UK: it’s an institution trusted and relied on by millions, and retailers with a Post Office local can harness the power of that trust to generate huge footfall. Iqbal Sadiq, who owns a Spar store on Maryhill Road in Glasgow, added a Post Office to his busy shop when the nearby postmaster retired. He comments: “This is a very busy Post Office and shop. We do a lot of banking for local businesses. Customers love it because we’re open late until 10pm and on weekends, and they can get everything they need in one place. “The branch has boosted both my retail and Subway too – people come in to use the Post Office and buy other items in the shop, and others pop in to buy a sandwich and decide to pay a bill at the same time.” Most retailers will know that the Post Office is the number one provider for letters and parcels in the UK but fewer may be aware that it is also the biggest provider of travel currency 52

SLR | APRIL 2017

“The branch has boosted both my retail and Subway too – people come in to use the Post Office and buy other items in the shop, and others pop in to buy a sandwich and decide to pay a bill at the same time.” IQBAL SADIQ, SPAR MARYHILL RD, GLASGOW

in the UK and the largest provider in the world of money transfer – larger than Western Union. For personal banking needs, customers can also access any bank in the UK through a Post Office and more than 104 million banking transactions were conducted through the Post Office last year on behalf of the UK high street banks. Some 99% of UK personal bank account holders can also access their bank services in a Post Office branch and the Post Office is the preferred supplier for government services. Research by him! also shows that 82% of customers say the Post Office’s presence influences their decision to make shop purchases at a particular store. For 73% of post office users, it is their main reason for visiting. The Post Office also draws customers from far and wide, and keeps them in the store longer. Around 32% of Post Office users will travel more than half a mile to visit a store compared with 21% of typical c-store shoppers. Typical Post Office users spend 6 minutes 39 seconds in-store, compared with the 4 minutes 48 seconds convenience average. A total of 23% of post office customers also buy something on impulse (vs 16% convenience average) and 78% of those using the Post Office also bought shop items. The average spend on shop items by the Post Office shoppers is £6.77.

PAYPOINT For over 28,200 retailers in the UK, a key footfall driver is PayPoint, and it’s easy to see why with 818 million PayPoint transactions carried out annually. PayPoint Group Marketing Director Steve O’Neill commented: “As more and more choice drives UK customers to shop around, the pressure on convenience retailers to maintain and grow footfall is mounting. Understanding the growing range of customers and their needs is key. “Retailers should be continually assessing the products and services they offer in store to make sure it matches the specific needs of their customers. Technology, like the new PayPoint One retail platform, can provide

insights into customer purchasing habits to help retailers gather this knowledge. Capitalising on this by stocking products that are currently in demand is what will set a store apart from its competitors. Services are key to driving footfall in store. For instance, PayPoint services provide access to over 1,500 utility companies, transport firms and mobile providers, driving footfall into store and giving that store the leading edge over other retailers.” O’Neill also says that convenience retail should reflect its situation and surroundings, presenting an offering in tune with the community around it. F rom the moment customers walk through the door, to the offers and discounts they’re offered while in-store, right up until the moment of payment, the journey must be seamless. He says: “Retailers should take advantage of the technology available in order to serve customers quickly, generate insights and offer the broadest range of payments possible, including contactless via card, phone and wearable devices. “Through focus on the customer and their needs, a wide product and service offering, and an inclusive approach to payment, retailers can maximise the loyalty of their customers and increase sales.” In today’s modern world, retailers must capitalise on every opportunity open to them. Footfall drivers will bring customers to the door – but it’s what they do when they are in the store that can really be the difference between success and failure.

PAYPOINT: IN NUMBERS Q 818 million transactions annually Q 20 million parcels handled in store each year Q Over 28,000 stores in the UK Q 10 million people use PayPoint services each week Q Over 4,200 LINK-branded ATMs Q Over 10,000 retailers accepting debit, credit and contactless payments Q More than 6,000 Collect+ retailers

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A Post Office drives * your retail sales

78% Research* shows

of people using the Post Office bought something else in the shop runapostoffice.co.uk *

Him! Research 2016

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Biscuits

BISCUITS BROADENS ITS BOUNDARIES With the biscuit category regularly offering new innovations, SLR looks at why it is such an important and diverse category. BY IAIN HOEY

SIZE OF THE CATEGORY

SLR | APRIL 2017

Valued at £2.3bn, the UK biscuit market is a key category for convenience stores as the category continues to cater to many different occasions, from on-the-go, to the Big Night In, as well as cracking the savoury and lightindulgencies markets. Sweet biscuits, such as chocolate digestives and custard creams, hold the majority share of the biscuit market, worth £1.4bn. The savoury biscuit category has seen over 20% value growth over the last 2 years and, despite being a relatively recent development, and healthy biscuits continue to hold their own in the market, with a value of £486m. “Biscuits are purchased almost weekly and we consume on average 9kg of biscuits per year,” says Hena Chandarana, Trade Communications Controller at pladis. “That’s the same as 30 packets of McVitie’s Chocolate Digestives.”

remerchandising fixtures in line with BBBS advice, ranging the best-selling SKUs and improving visibility and availability. Last April, pladis carried out trials in three of its Ambassador stores to find the most effective way to merchandise biscuits. Steps taken included: improving segment and brand blocking, moving key selling lines to eye level, increasing facing of best-sellers and reduced duplication between own label and branded products. The study found that by reducing the facing from 90 SKUs to 66 SKUs, there was a 19% sales uplift. Retailer Ambassador, Kay Patel, Owner of Best One Stratford, states: “The trial did make the fixture easier to shop by double facing key lines and reducing some duplication. Double facing lines such as Jaffa Cakes helped increase sales especially during promotions. I’m now looking to roll it out to my other stores.”

MERCHANDISING

THE BISCUIT OCCASION

Merchandising is extremely important, as with any category, when it comes to driving incremental sales. Retailers should stock bestsellers from the sweet, healthy and savoury biscuits sectors, and make sure the most popular brands are represented, as well as a range of own-brand offerings of biscuit staples such as digestives, bourbon creams and rich tea biscuits. To help independent retailers maximise the biscuit category potential, pladis invested in the ‘Better Biscuits, Best Sellers’ (BBBS) scheme. This initiative included

As consumer consciousness surrounding health continues to rise, Borders biscuits have noted a rise in sales of their premium biscuits as those looking to indulge look for a quality offering. Equally important for small indulgences are on-the-go biscuits which have seen a rise in the last year. BelVita Breakfast is now not only the UK’s number one healthy biscuit (Nielsen Data), it is now the UK’s number two biscuit brand and is currently showing 11% growth. Research undertaken by belVita also shows that 46% of Brits state they are more likely to have a good day if they eat breakfast. Retailers have a great chance to drive sales by offering convenient formats which cater to consumers’ busy lives. www.slrmag.co.uk

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Biscuits

MONDELEZ’ TOP TIPS FOR MAKING THE MOST OF BISCUITS IN STORE

Chandarana says there is a big market for more on-the-go biscuit offerings. “Currently only 7% of biscuit products are in on-thego formats which highlights a clear need for manufacturers to bring new products to market that deliver against this mission,” she says. In May 2016, pladis launched McVitie’s ‘To Go’ snack packs. The twin packs – McVitie’s first on-the-go sweet biscuit range – enable shoppers to enjoy their favourite classic McVitie’s biscuits in a modern format, wherever and whenever it suits them. Chandarana also notes that “the rise of coffee culture” will have a positive impact on the biscuit market. “One in four convenience stores owning a coffee machine and there being 54 million hot drink and biscuit occasions in the UK every year presents a big opportunity to increase biscuit sales through hot drink links in store,” she explains. Sharing continues to be an important snacking trend in the UK with biscuits as the number two evening snacking choice (Nielsen data). Providing sharing biscuit products in appropriate pack formats is the key to unlocking this opportunity. In 2016, pladis announced McVitie’s Digestives Nibbles, offering the McVitie’s Digestive biscuit range in a modern bitesize format, which has proven popular among consumers. Also tackling the sharing cookie market is Burton Biscuits, with the launch of Maryland Cookie Bites.

SAVOURY BISCUITS Another massive trend seen in the biscuit industry in recent years has been the rise of the savoury biscuit, rivalling crisps in the snacking market. Portion control, the growth 56

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of food-to-go, and increasing demand for savoury biscuits have all been contributing factors that have had an impact on biscuit sales in convenience over the course of the past year. Burton’s entered the savoury biscuit sector in early 2014 with huge success, generating sales in excess of £25m with Burton’s Fish ‘n’ Chips and Cathedral City Baked Bites, which together have driven growth. In 2015, Jacob’s Cracker Crisps challenged the fried snacks category and has grown category sales by £14m.

A HEALTHIER CHOICE With dietary restriction causing many consumers to move towards Free From products, retailers should consider catering to the trend by offering a selection of Free From products. In biscuits, McVitie’s Gluten-Free Original Hobnobs were recently launched alongside McVitie’s Gluten-Free Milk Chocolate Hobnobs by pladis to capture the market. The most popular recent trend from biscuit makers is the biscuit thin. Mondelez introduced Oreo Thins at the beginning of the year, which are a slimmer Oreo cookie with a layer of Original Vanilla or Chocolate Creme cream. The product offers a new, more sophisticated eating experience that answers consumer desires for a thinner and crispier everyday treat while still delivering on taste. McVitie’s Digestives Thins, a lighter version of the classic biscuits, also hit the shelves earlier this year. The product is available in three variants: Milk Chocolate, Milk Chocolate Cappuccino and Dark Chocolate with the intention of tapping into the desire for little indulgencies.

Stock bestsellers from the sweet, healthy and savoury biscuits sectors, and ensure the most popular brands are represented to appeal to the largest range of customers. Ensure you have a clear offering for both top-up and on-the-go shopper missions. Use manufacturer POS to highlight products, particularly when you introduce new lines. Make the most of manufacturers’ media investment by stocking and displaying products when activity is running. Biscuits can link with a number of other categories, such as hot beverages in winter. Maximise sales for both ranges and help drive impulse purchases by, for example, positioning belVita single serves by your coffee machine.

www.slrmag.co.uk

Low Sugar

LESS SUGAR, MORE SALES

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SLR | APRIL 2017

With the sugar tax looming, drinks and confectionery brands are looking to provide healthier alternatives to keep costs down and push profits up.

ince the unveiling of the forthcoming UK sugar tax, product manufacturers have been faced with a choice: reduce the sugar content or incur additional costs which will have to be absorbed somewhere, be that by the manufacturer, the wholesaler, the consumer or a combination of all three. While the picture isn’t entirely clear yet on how the new tax will play out in reality, the implications for the market are significant, so it’s something that retailers might want to keep a close eye on. On the face of it, this could have been catastrophic for local retailers, as sugar plays a fundamental role at the heart of many core convenience product categories – but the manufacturers have come out swinging, with major brands focusing their efforts on reformulating their products and creating new low- and no-sugar options. Soft drinks manufacturers are being faced with some of the greatest challenges. During his 2017 Budget presentation, Chancellor Philip www.slrmag.co.uk

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Low Sugar

Hammond addressed the sugar levy, which will soft drinks with a sugar content of 5g or more per 100ml subject to an 18p per litre levy, with a higher band of 24p per litre for drinks containing 8g or more of sugar. The new levy, which applies to the producers and importers of the affected drinks, is scheduled for implementation in April 2018. Manufacturers have taken three different routes in addressing the changes to keep costs down without impacting the prices of the products: creating new product variants, reformulating existing products, and reducing product sizes. “The soft drinks market has evolved, with shoppers increasingly looking for greater choice at the fixture,” says Adrian Troy, Marketing Director at AG Barr. “In addition to this choice, they also want low-calorie options that can deliver on taste – featuring the fullon flavour they’re used to but with fewer calories.” In the past year, AG Barr has launched a number of new products across its drinks portfolio. The drinks manufactuer’s first new permanent product for Irn-Bru in 35 years, Irn-Bru Xtra arrived in 2016 with claims that it contains the full taste of the iconic beverage

SLR | APRIL 2017

but without any of the sugar. Also from the parent company, earlier this year, the popular energy drink, Rockstar, launched Rockstar Revolt, a ‘revolutionary’ zero sugar energy drink that it claims doesn’t compromise on look, taste or energy boost, in two 500ml varieties, Killer Citrus and Killer Cooler. Finally, fruit juice drink Rubicon saw the introduction of Rubicon Light & Fruity, a new range of products delivering the Rubicon taste with half the sugar. “When we launched Rubicon Spring in 2016, we undertook our biggest ever research programme to fully understand the key drivers behind changing attitudes to health,” Troy continues. “The research highlighted that many carbonates shoppers in particular are looking to reduce their sugar and calorie intake, so it’s crucial that retailers react accordingly to maximise sales and cater to shopper needs.” AG Barr has pledged to reformulate its soft drinks so that over 90% of its portfolio will contain less or no sugar by autumn 2017. The move includes its flagship Irn-Bru brand, with the regular variant seeing a cut in sugar content but not, the brand insists, on flavour. Last summer, Coca Cola Zero Sugar arrived

57%

low calorie soft drinks growth seen in energy and cola

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Low Sugar

Feature

-0.5% full sugar soft drinks decline in convenience

on the market following extensive research from Coca-Cola European Partners (CCEP), to get the recipe as close to the original Coca-Cola flavour as possible. This month it launches a new Coca-Cola Zero Sugar Vanilla variant to build on the success of the brand’s reformulation. It is available in 1.75L, 500ml PET bottle and 330ml can formats as well as an 8x330ml can multi-pack.

REDUCING SUGAR, NOT ENERGY Nielsen data pins energy drinks as the bestselling soft drinks sector for independent retailers, with seemingly no end to the new flavours and innovations from manufacturers. Recent product developments have, as consequence of public health concerns and the levy, focused on low and zero sugar variants. In January 2016, Monster Energy Ultra, a range of three calorie-free flavours, launched. Monster Energy Ultra White, Ultra Sunrise and Ultra Red were joined in January of this year by Monster Energy Ultra Citron, a sparkling lemonade flavour with the citrus sweetness of the Ultra range. Amy Burgess, Trade Communications Manager at CCEP, explains that the Ultra Citron’s launch comes after sales of low calorie energy drinks grew by 32% over the past year. “Since its launch,” she says, “the Monster Energy Ultra range can claim responsibility for 55% of this low-calorie growth, with Monster Energy Ultra White the biggest generator of growth in the entire sector during 2016.” As to why the products have been so successful, AG Barr’s Adrian Troy attributes the category growth to the consumer desire for lower sugar without the losing that energy boost. “Rockstar Revolt appeals to the growing number of consumers who want zero sugar energy, but don’t want it to look, feel, perform or taste different to full sugar energy,” he says. www.slrmag.co.uk

“The new products also reinforce Rockstar’s reputation as the leader in energy drink innovation and builds on the brand’s proven ability to deliver incremental category sales.” With 21% of adults now choosing not to consume alcohol at all, according to the office of national statistics, some brands have been looking to capitalise on providing healthier options in the adult soft drinks market. Smaller 250ml can formats, meaning less sugar, have arrived from Schweppes Sparkling Juice Drinks and Appletiser, replacing the 330ml can sizes for the health conscious consumers. Low or no sugar variants from juice brand drinks have arrived from Oasis and CapriSun. This month, Oasis Lights is being rebranded by CCEP to become ‘Oasis Zero’, better communicating to consumers the zero calorie and low sugar content to consumers. The new name also sees the introduction of Oasis Citrus Punch Zero to the range. Popular children’s pouch juice drink, CapriSun, is launching Capri-Sun No Added Sugar Orange-Lemon as the brand continues to help retailers tap into the growing demand for low calorie juice drinks for immediate consumption. With the growing prominence of low and no sugar drinks, knowing where and how to position these healthier variants may have an important impact in driving sales. “Retailers should look to group different sectors together, for example, colas, flavoured carbonates, energy drinks, waters, juice and juice drinks, and store best-sellers in the most prominent display

locations,” advises Amy Burgess. “Stocking different variants of the same brand together can help to highlight the choice on offer, while stocking soft drinks like Coca-Cola alongside their calorie-free equivalents can help to better meet demand for lighter options. “It’s important to look to best-sellers that are being backed by marketing investments, as this can encourage consumers to actively seek out products,” she continues. “New releases and variants are an ideal way to achieve incremental growth as consumers look to sample them.” The importance of positioning is echoed by Adrian Troy, who offers an alternative approach to product placement. “Shoppers that are looking for a healthy option tend to look at the water fixture in the chiller, so AG Barr recommends that Rubicon Spring is stocked in the chiller cabinet, positioned between carbonates and water,” he says. It is not just soft drinks which face the impact of the sugar tax, as manufacturers

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Low Sugar

+3.3% low calorie soft drinks growth in convenience

across all sectors are also feeling the effects. Many have risen to the challenge, including confectionery expert Perfetti Van Melle, which kickstarted the year with the launch of Fruittella 30% Reduced Sugar and Fruittella Sugar Free. “Consumers are always going to want to treat themselves with confectionery and, unlike other products, it’s not a surprise to them that it contains a high level of sugar,” says Mark Roberts, Trade Marketing Manager at Perfetti Van Melle. “But that doesn’t mean we should ignore the war on sugar. We’ve reacted in a considered way, responding with fantastic alternatives for those who are looking for sugar-free treats.” Roberts says that Fruittella Fruit Foams and Fruit Gums, that are bursting with flavour but completely sugar free, are the very first products of their kind. “With many customers coming into store actively looking for healthier treat options, Fruittella is providing retailers with the perfect solution; a great tasting sweet that’s a little bit better for them,” he says. “We’re committed to providing a portfolio that truly 64

SLR | APRIL 2017

meets every need. From onthe-go singles, sharing bags, kids treats and adult indulgences.” He asserts that new products are vital in driving category growth as they encourage trading up, and so retailers should keep up-to-date with what’s changing in the category by contacting their suppliers and reading the trade press. Nestlé also recently announced plans to reduce the sugar content in its popular confectionery p r o d u c t s including, KitKat, Aero, Quality Street and Yorkie bars, in the UK and Ireland by 10%. The Swiss food giant said the move, which would see a cut of about 7,500 tonnes of sugar across its products, would be implemented by 2018. In the mints and gum category, sugar free has long been a selling point for brands, and one which they continuing to put their faith in by releasing different pack sizes for their sugar free variants. This includes Nestlé’s mint brand Polo, which is launching a new recyclable format Polo Pot format (RRP £1.49) containing 44 mints and available in

three best-selling varieties: Original, Sugar Free and Sugar Free Extra Strong. Yoghurt is also taking action over sugar content, with the Müller Yogurt & Desserts’ reformulated Müllerlight Greek Style range, which now includes 0% added sugar, reducing the total sugar content by over 20%. Yoplait has said that it plans to reduce the amount of sugar in its Petits Filous range by 17%, as part of a ‘significant’ reformulation that will also see the amount of vitamin D increased to 50% of the reference intake. Porridge brand Moma has seen an 88% rise in sales since the addition of its no added sugar variants to the range. The brand recently launched its Coconut and Chia Porridge Pot, its first product which is gluten free, dairy free and vegan friendly. It also contains no added sugar, tapping into the consumer demand for healthier on-the-go breakfast options. Since its release, the new product has also won a Great Taste 2016 award, demonstrating its popularity. Reformulation is a long but ultimately necessary process, according to Tim Rycroft, Corporate Affairs Director for the Food and Drink Federation. “Reformulation,” he says, “is an important and effective tool which food and drink producers are using to help their customers towards balanced diets. For many years now, food and drink manufacturers have been removing salt, fat and sugar from recipes while ensuring that consumers continue to love the taste of their favourite products. Getting reformulation right is often costly and time-consuming but our industry is committed to doing the right thing.” Time will tell as to whether the sugar levy’s impact on products will have a knock-on effect on sales, but with the growing selection of new and improved offerings, local retailers should be able to confidently consider being the agents of change in the cultural shift towards a reduced-sugar nation. www.slrmag.co.uk

NEW

l m 0 3 3 n u s i r p Ca

d e d d No a R A G U S ! W O N P U K C O T S

Capri-Sun is a registered trademark of Deutsche Sisi-Werke Betriebs GmbH

THE TASTE OF FUN

Big Night In

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ANY EXCUSE FOR A BIG NIGHT IN With the Big Night In being one of the most widely shopped missions, effectively marketing the occasion is a priority for any convenience store owner. BY IAIN HOEY

he Big Night In (BNI) occasion continues to flourish with its annual worth estimated in the UK to be around £8.9bn, according to PepsiCo research, making it one of the most significant missions in the business for local retailers. As nearly half of all consumers are spending less money on out-ofhome entertainment, offering a value for money BNI fixture for cash-conscious shoppers with meal deals and promotions is an easy win. A wide selection of sharing snacks and a variety of both alcoholic and soft drinks offers will make convenience stores the go-to place for the at-home occasion. According to Kantar data, shoppers make their BNI purchases in two ways: in advance as part of their main shop, and as a last minute spontaneous purchase, the latter of which is key in convenience retail. Last-minutepurchase BNIs are on the rise according to him! research, which found that 30% of shoppers do not know what they were having for dinner, with the plan to purchase it on the way home. This gives convenience retailers the power to influence their shoppers with visible signage, key product placements and specific Big Night In fixtures.

STOCKING ESSENTIALS Every shopper will have a slightly different idea for what sorts of products make for a great BNI, so offering a wide selection in the key categories is the safest bet. It is equally important to have the right promotions and displays in place to attract shoppers. Retailers can help encourage cross-category purchases by grouping products such as snack foods, 66

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large format soft drinks, sharing bags of crisps, nuts and confectionery as well as beer and wine, licensing laws permitting. “Designating a space in-store for the ‘Big Night In’ occasion can add a layer of convenience for consumers, whilst also encouraging impulse purchases that can lead to incremental growth,” says Amy Burgess, Trade Communication Manager at CCEP. “These displays could see soft drinks positioned alongside other snacking products that are popular for nights at home with friends and family, as well as nonfood and drink items such as DVDs and games, and it could also be effective to introduce promotions that offer discounts when these products are bought together.” Promotional signage is important in driving consumer awareness of good value products. Stocking price marked packs, such as The Big Yellow Bag’s £onepounders range, with its easily recognisable yellow packaging, is a good way to ensure the value message lands with shoppers, which is particularly significant when it comes to driving impulse purchases.

CRISPS AND SNACKS The BNI is a special occasion with shoppers looking to indulge, so retailers might want to consider offer a range of larger sharing pack formats for products such as crisps and snacks as they are a key component of the event. Popular brands such as Doritos and Walkers are bound to be popular, but retailers could also consider stocking a premium range alongside to appeal to a wider audience and to boost cash margins. While healthier snacking is shaking up the

25%

consumption occasions accounted for by sharing bags

consumer’s agenda, the core crisps and snacks range remains a vital part of the BNI fixture. “Consumer demand for healthier snacking products is high although not the biggest driver of snacking occasions, with crisps being 38% of the snacking category,” says Matt Collins, Sales Director for convenience, wholesale, discounters & foodservice at KP Snacks. “The nuts category also plays well to these dynamics with its high protein content and more natural credentials, and is forecast to be a major growth driver within snacking in 2017.”

CONFECTIONERY Evening snacking is worth over £6.5bn and counting, according to Kantar research, and over half of all confectionery occasions take place with other people present. To capitalise on this huge opportunity, ensure a range of sharing products such as Maltesers and M&M pouches is stocked. Chocolate remains the top choice for those settling down for a night in, followed by sugar confectionery, biscuits and crisps. www.slrmag.co.uk

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Big Night In

£6.5 billion value of the evening snacking market

MERCHANDISING TIPS FROM MARS Focus on getting the main confectionery display merchandised well, with strong availability of core lines. Multi-face key lines – this helps to ensure strong availability and attracts shoppers to make those all-important impulse purchases. When merchandising pouch lines, core favourites should be displayed in a prime location, for example, at eye level on a wall display. Ensure you use all POS available to you, such as dumpbins & counter units – these are guaranteed to raise awareness and generate impulse sales. Site confectionery products alongside savoury snacks and drinks, to promote additional basket spend in store for customers looking to fulfil their big night in shopping mission.

SLR | APRIL 2017

A key focus is on getting the main confectionery display merchandised well, with strong availability of and multi-facing of core lines. Pouch products should be displayed in a prime location, for example, at eye level on a wall display. POS, such as dumpbins and counter units, are guaranteed to raise awareness and generate impulse sales. Siting confectionery products alongside savoury snacks and drinks, will promote additional basket spend in store for customers looking to fulfil their big night in shopping mission.

DRINKS Food may be the key focus for the BNI occasion, but soft and alcoholic drinks also play a significant role. Shoppers are likely to spend more than usual on a Big Night In, and picking up a bottle of wine, a crate of beer or a couple of two litre bottles of soft drinks are integral purchases for a BNI. Adrian Troy, Marketing Director at AG Barr, advises that stores focus on winners by stocking up on the top performing brands. “Retailers should ensure they stock sharing size bottles of trusted, well-loved soft drinks brands to drive purchase and restock regularly as availability is key,” he says. “75% of purchase decisions are made at fixture and sharing sized bottles can be dual-sited with other Big Night In essentials to create a range of eye-catching deals including pricemarked packs and multi-buys.” With 21% of adults now choosing not to consume alcohol at all, according to the office of national statistics,

it is clear that soft drinks provide a major opportunity for independent retailers to increase their sales when catering for those enjoying nights at home. Adult soft drinks is a growing market, and is ideal for at home entertaining. Products such as Appletiser and Schweppes Sparkling Juices drinks are popular and can be served on their own, or as an ingredient for cocktail making. With the increased focus on health leading some consumers to change their usual drink choice to reduce their sugar or calorie intake, retailers should look to display lower or no sugar variants of well-known brands as part of their BNI displays.

FOR EVERY OCCASION The concept of the BNI is often focused around weekend events, but there is no shortage of week-night occasions and opportunities which can initiate a get together. “Entertaining at home or having a Big Night In continues to be enjoyed throughout the year by shoppers of all ages, as friends and family choose to spend time together in the comfort of their own homes,” says Bep Dhaliwal, Trade Communications Manager, Mars Chocolate. “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.” Retailers should be proactive in order to make the most of BNI displays, looking ahead and see which notable sport, TV moments or events are coming up. It may be worth putting together displays themed around these events in order to capitalise on the high level of interest that can be generated ahead of these occasions. www.slrmag.co.uk

UTC

YOUR COKE TASTES SHITE

WHOPPER TOOTHPASTE? JUST NAW! UTC’s a big fan of oral hygiene. He religiously steeps his falsers in a wee cup of Steradent on his bedside table once a month, whether they need it or not. So he was intrigued at the latest bit of innovation from McBurger King or whatever they’re called: Whopper-ﬂavoured toothpaste. The very idea took his breath away, pretty much as he imagined the toothpaste would.

A TOAST TO BEER It takes a certain evil genius to bring together two of UTC’s favourite things into one handy, portable package – but that’s exactly what craft brewer Feedback has done in a cheeky wee collaboration with some big bakeries which sees unsold bread used to make eco-friendly Toast beer. Yup, you read that right. Toast. And beer. Mrs UTC is allegedly delighted that the risk of her house going up in ﬂames at one in the morning every Saturday has diminished as the auld fella will no longer need to stick the grill on half-jaked for a wee late night bit of toast when he comes back from the pub. Now he just has to crack open a bottle of Toast and satisfy two cravings in one.

Being a die-hard Irn-Bru man, UTC’s spirits were ﬂagging a wee bit last month as SLR carried the story of how Irn-Bru are cutting back the sugar content of their much loved beverage. Namby pamby liberals telling him how to live his life is a favourite rant of the auld yin so you can just imagine the furore and gnashing of false teeth that the prospect of reduced sugar Bru sparked at SLR Towers. Anyway, in mid-rant he was distracted for a bit when he learned of what appeared to be a very creative new launch from Coca-Cola: Coke that had apparently been ﬂavoured with what the BBC website euphemistically called ‘human waste’. Turns out it wasn’t actually a new Coca-Cola variant aimed at a very niche market, but was in fact a freak accident at a Coke plant in Northern Ireland. A batch of new cans turned up at the factory that had mysteriously been contaminated prior to their arrival. A spokesman made it clear that no contaminated cans left the factory – but UTC had lost interest by the time he got to that part of the story.

PROSECCO ON TAP It’s not often that UTC feels the need to visit Wales, but he recently added another reason to his ever-growing list of ‘Why I shouldn’t visit Wales’: the Bodelwyddan Castle hotel has just introduced Prosecco on tap in its bedrooms. The very thought of Mrs UTC having 24 hour access to hot and cold running Prosecco was enough to bring the auld yin out in hives. Now if it was, say, Macallan that was on tap – that would be a different story entirely.

GOTTA ADMIRE THE FRENCH

UTC has never seen the reason to abandon his Golden Virginia rollies habit. And he’s always held a certain respect for the French with their unrepentant commitment to the finer things in life like lunchtime drinking, two hour long lunches and smoking fags. But even he was a bit taken aback when one of his muckers at his local brought him some cigarettes back from a trip to France bearing the picture of a Frenchman blowing smoke into the face of his infant son. Oh la la. 70

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STOCK UP NOW!