SLR August 2020 edition. by 55 North

AUGUST 2020 | ISSUE 208

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ENERGY IS GROWING 6 X FASTER THAN SOFT DRINKS & DELIVERS THE HIGHEST PROFIT PER LITRE FOR RETAILERS*

NEARLY 1 IN 2 DRINKS SOLD IS AN ENERGY DRINK*

FLAVOURS NOW ACCOUNT FOR 30% OF MAINSTREAM ENERGY PRODUCTS*

FLAVOURED ENERGY IS GROWING FASTER THAN ORIGINAL ENERGY*

MERCHANDISE CHILLED, NEXT TO OTHER SLIM CAN ENERGY PRODUCTS! *1: IRI MARKETPLACE, VALUE SALES, MAT TO 19/04/2020, TOTAL SCOTLAND. *2: IRI MARKETPLACE, PPL & AVERAGE MARGINS, MAT TO 19/04/2020, SCOTLAND CONVENIENCE *3: IRI MARKETPLACE, VALUE ESALES, DRINK NOW, MAT TO 19/04/2020, SCOTLAND SYMBOLS & INDEPENDENTS. *4: IRI MARKETPLACE, VALUE SALES, MAINSTREAM DRINK NOW ENERGY EXCL. ORIGINAL, MAT TO 19/04/2020, TOTAL COVERAGE

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LIZZIE BARTHOLEMEW

Tomra talks green recovery

JOHN LEE

AUGUST 2020 | ISSUE 208

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The ‘war on cash’ threat

NICOTINE PORTFOLIO

ETHICAL RETAILING

Will the pandemic drive a rise in ethical retailing?

Shoppers broaden their choices

SUN RISES

The Sun increases prices, maintains margins

LOW AND NO

How low and no can you go?

Retailer interview: Scott Graham discusses his newly reﬁtted store SLR August 2020.indd 3

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August 2020

Contents

Contents ISSUE 208

NEWS p6 p7 p8 p10 p20 p22 p24

Crime The proposed Protection of Workers Bill gets the backing of a key Holyrood committee. Illicit Trade JTI unveils a tool that lets retailers ﬁnd out how badly their local area is affected by illicit tobacco. Technology The NFRN’s new scan & go shopping app makes its debut in a store down south. News Extra Crime A cowardly armed robbery sparks fears over the wearing of face masks in stores. Product News Burton’s gets minis moving while KP Snacks rewards retailers and champions GroceryAid. Off-Trade News Diageo reveals a revolutionary paper bottle as WKD squeezes out a new lemon variant. Newstrade The Sun increases its cover price and maintains retailer margins.

INSIDE BUSINESS p25 Research Digest New analysis puts a staggering number on the value of sales lost to Scotland’s retailers during lockdown. p26 Store Profile McLeish’s Inverurie Scott Graham has reﬁtted his store to let him focus more on lines that deliver at least 30% margin – and the results are spectacular. p30 Hotlines The latest new products that suppliers want to see on your shelves. p54 Under The Counter A sideways look at life from SLR’s increasingly bitter and twisted Curmudgeon-in-Chief. FEATURES p32 Crisps & Snacks What’s left of summer offers great opportunities to grow crisps and snack sales, and there’s plenty going on to get consumers excited. p36 Forecourts The latest news from the forecourt sector. p42 Low & No Soft drinks category growth is now driven by low and no sugar products, with the major manufacturers offering lots of NPD to get stuck into. p44 Nicotine The emergence of the ‘nicotine portfolio’.

ON THE COVER 14

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Will the coronavirus help ignite the ethical retailing trend?

AUGUST 2020 | SLR

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News LEGISLATION Workers Bill gets the nod

Cops close Kent c-store A convenience store in Kent has been handed a closure order after repeated incidents of antisocial behaviour were linked to the premises, which was also a hotbed of illicit tobacco trading. Four raids on Chatham Express in two years netted over 8,000 packets of cigarettes and 400 pouches of tobacco. The application for the order by Kent Police is the first time the legislation has been used against a business in the county.

Aldi doubles size of Deliveroo trial Aldi is extending its current trial with Deliveroo into 11 new stores, including five more in London and launching in Greater Manchester and Cambridge for the first time. The extension more than doubles the number of stores currently running the trial. If successful, the Deliveroo

Protection of Workers Bill gets backing of key Holyrood committee The Scottish Parliament’s Economy, Energy and Fair Work Committee has given its unanimous support for the general principles of Daniel Johnson MSP’s proposed ‘Protection of Workers Bill’. The Bill will give shop staff additional legal protection when carrying out their work, particularly in relation to assault or abuse in relation to a mandatory activity such as requesting ID. The announcement came as the committee published its Stage One report on the Bill. MSPs will now vote to decide whether the Bill should move to Stage Two of a three stage process before it passes into law. The vote is expected to be held after the Scottish Parliament’s summer recess. While approving the Bill’s general principles, the Committee invited Johnson to work proactively with

the Scottish Government to help address reservations that it has with regards to the legislation. The Committee’s Convener Michelle Ballantyne MSP said: “This Bill is far from the ﬁnished article. Work needs to be done to ensure that the Bill increases protection for retail workers in a clear enforceable way.” Scottish Grocers Federation welcomed the news. SGF Chief Executive Pete Cheema, who gave evidence to the Committee in March, said: “This is a positive result and it marks a step forward in securing a safer in-store environment for shop staff. Daniel has shown outstanding tenacity and commitment in taking this forward. “However, we cannot allow complacency to derail this once in a generation opportunity: much work needs to be done in securing

the support of MSPs when they vote on the Bill. With the help of our all members we know that this can be achieved.” Shopworkers’ trade union Usdaw called for MSPs to support the Bill. Paddy Lillis – Usdaw General Secretary – commented: “This is very welcome news and we hope it will result in the Scottish Parliament leading the way on protection of shopworkers, as they did with emergency service workers, and pass this Bill. “At a time when we should all be working together to get through this crisis, it is a disgrace that people working to keep food on the shelves are being abused and assaulted. Action is required. Our message is clear, abuse is not part of the job.” In the wake of the news, the UK Government rejected proposals for a similar law south of the border.

service could be rolled out across more stores in other towns and cities across the UK before the end of the year.

Typhoo appoints Sales and Marketing Director Typhoo Tea has appointed Melody Chapman to the newly created role of Sales and Marketing Director. Reporting to CEO Des Kingsley, she will be responsible for the company’s entire hot beverages portfolio, including Typhoo and herbal and infused teas range Heath & Heather. Chapman has wideranging experience of the FMCG sector, including Northern Foods, Robert McBride and Vion.

Shoply boss makes entrepreneur shortlist John Robertson, founder and CEO of home delivery app Shoply, has been shortlisted in the Pivot Entrepreneur of the Year category at the Great British Entrepreneur of the Year Awards 2020 (Scotland and Northern Ireland region). The news follows Shoply’s number 67 listing on the Startups 100, the UK’s longest-running index of

COVID-19 Business support

WHOLESALE

Renfrewshire unveils £1.3m Covid business support package Renfrewshire Council has unveiled a £1.3m package of support to help local businesses get back on their feet after the coronavirus lockdown. The proposals – including crisis loans, grants and advice services – were based on the results of a detailed survey of local ﬁrms run by the council and Renfrewshire Chamber of Commerce. The council and chamber between them spoke to more than 500 companies – around 10% of Renfrewshire’s businesses. Several new funds targeting shortterm support to the local economy include: Q £500,000 for zero-interest business restart loans of up to £5,000 to help small-and-medium-sized business with short-term cashflow Q £400,000 for grants of up to £10,000 to help sustain businesses and plan for growth in the medium term Q £250,000 for grants of up to £2,500 to help businesses adapt their premises to allow for physical

distancing Q £150,000 to help fund expert advice to businesses in crisis and self-employed people over training and access to funding. The money is coming from within existing council budgets for business support and is expected to be the ﬁrst stage of a longer-term economic recovery plan. Local businesses can apply for the support from mid-August. Renfrewshire Council leader Iain Nicolson added: “ We have prioritised this investment as we are determined to do all we can to support the local economy and protect local jobs through what will be a tough period ahead. “We wanted to make sure the support we are offering was based on what businesses need – and the extensive work we and the Chamber did to establish what that was has been hugely valuable to us in terms of understanding the challenges facing our businesses.”

Unitas and Confex go their separate ways Buying groups Unitas Wholesale and Confex have ended their partnership. The agreement was originally between Landmark Wholesale and Confex but carried on when Landmark merged with Today’s to create Unitas. Confex is now looking to expand in foodservice and develop its supplier partnerships, as boss Tom Gittins explained: “Our future strategy includes developing joint business plans with all of our leading suppliers. Therefore the timing of the departure is perfect for Confex and we look forward to a bright future as an independent buying group.” Wishing Confex “success for their future endeavours,” Unitas MD Darren Goldney said: “Moving forward we believe collaborations must add value to all parties and this one no longer does.”

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

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ILLICIT TRADE New retailer tool

JTI unveils new anti-illicit trade tool JTI has launched a new ‘Postcode Calculator’ – a free-to-use online tool that lets retailers find out how their local area is affected by illicit tobacco. By simply entering a postcode area (e.g. ML, PA, KY), retailers can find out how many seizures and/or prosecutions have taken place near that location since 2017, including estimates of the quantity and total value of illegal tobacco reported. The new interactive feature has been added to JTI’s dedicated Don’t Be Complicit in Illicit microsite (www.jtiadvance. co.uk/DontBeComplicit), which has also benefitted from a content update and fresh new look. Ian Howell, UK Anti-Illicit Trade Manager at JTI, commented: “Illicit tobacco remains a serious problem and this new feature is the latest development from JTI to support retailers in the fight against this issue. Our hope is that this new tool will enable retailers to remain vigilant and raise awareness of

the scale of the problem in their local area. “We also want to encourage retailers to report any suspected sellers in their area, through the anonymous reporting function on the microsite.” Commenting on the new tool, Nisa retailer Girish Chavda said: “With the restrictions on overseas travel and pubs closed due to Covid-19, I’ve noticed a considerable uplift in my tobacco sales over the last few months. To me, this really highlights the scale of the illicit tobacco trade in my area and how much revenue retailers are potentially missing out on to criminals. “I think this new tool by JTI is a brilliant idea, and I’d welcome any material that I can display in my shop that helps inform customers about the scale of the illicit tobacco trade in my area. There’s no doubt that more needs to be done to combat the illicit trade but it’s good to see manufacturers like JTI stepping up and doing something about it.”

HOME DELIVERY Nisa veteran joins Scottish ﬁrm

Marketing veteran Philippe Rondepierre joins Snappy Shopper Home delivery app Snappy Shopper has appointed exSpar and Nisa marketing veteran Philippe Rondepierre to the newly created role of Marketing Director, effective from September. Rondepierre joins the Dundee-based business from Nisa, where he has been Head of Marketing since 2017. His wide-ranging experience in the convenience retail and wholesale sector spans nearly 30 years. Rondepierre, who was also Head of Marketing for Spar UK for just under four years, started his career with another Dundee company, the Spar Scotland wholesaler and retailer CJ Lang. Returning to Dundee where he will be responsible for creating, driving and implementing Snappy Shopper’s marketing strategy, Rondepierre will report to Chief Executive Mark Steven. “We’re delighted to have recruited someone of Philippe’s calibre to head up our key marketing function and work with the rest of the team to drive growth of the

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Snappy Shopper brand,” said Steven. “Philippe has a wealth of experience in the convenience retail sector spanning many years so he understands the dynamics of the fast-paced and everevolving marketplace that Snappy Shopper inhabits. He has an impeccable pedigree and outstanding track record when it comes to implementing strategy and tailoring marketing activity to achieve the best possible results – his role will be instrumental as we move into the next phase of our growth which has seen Snappy Shopper grow from a small base last year to national coverage today.” Rondepierre added: “It is an exciting opportunity to be involved with an ambitious tech start-up in the sector I have spent my career in and in the city I call home. Snappy Shopper’s progress in such a short space of time has impressed me and I am very much looking forward to joining Mark and the team on the next stage of the journey.”

Illicit tobacco is damaging your local community, funding organised crime and undermining local businesses.

Use our new tool to find out how illicit tobacco is affecting your local area and your sales. Simply enter the start of your postcode here JTIAdvance.co.uk/ DontBeComplicit

We all have a role to play to combat the issue. Don’t be complicit in the illicit trade.

Girish Chavda, Nisa New Eltham Food & Wine

The new postcode calculator tool from JTI is a brilliant idea and will hopefully raise awareness of the illicit tobacco problem amongst consumers.

Anyone with information about this type of crime should contact HMRC’s Fraud Hotline on 0800 788 887 or visit www.jtiadvance.co.uk/DontBeComplicit

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News TECH All in one app landed

PayPoint ‘solid’ despite Covid challenges PayPoint has delivered what CEO Nick Wiles called “a solid first quarter performance during a very challenging period”. Over the three months ended 30 June 2020, Group net revenue decreased by £1.9m (6.6%) to £26.8m (2019: £28.7m).UK retail services net revenue increased by 10.3% to £10.8m driven by an increase in card payments as well as service fees from the PayPoint One terminal roll-out.

CMA warns retailers against price gouging The Competition and Market Authority has, alongside seven trade associations, warned retailers against raising prices unfairly. Reports have fallen since the early stages of the pandemic and the warning against hiking prices unjustifiably is aimed at a very small minority: the proportion of shops reported

NFRN scan & go shopping app goes live A retailer in Cheshire has become the ﬁrst NFRN member to implement the scan & go functionality of the Jisp all-inone shopping app. Jisp recently partnered with the NFRN to offer retailers an all-in-one solution providing same-day home delivery, click & collect, mobile payments and in-store scan & go services. The app also opens up new opportunities for digital engagement with customers. The deployment – at Hightown Convenience Store in Congleton – saw store owner Steve Archer try out the app’s scan & go capabilities. With the app downloaded, customers start their shop by scanning a QR code located on Jisp’s Payment Pod located at the store entrance. They then simply scan items as they move through the store and scan the displayed QR code at the Payment Pod a ﬁnal time to complete the purchase. The scan & go experience rivals the speed and convenience of contactless, self-service options available at larger retailers. The service is expected to increase footfall and total basket value, and will help convenience store owners serve more customers, more quickly. The app is powered by Swiss software company Scandit’s computer vision technology which turns everyday smartphones into powerful barcode scanners. A number of NFRN members have signed up for the Jisp app and the roll-out is expected to reach 500

stores by Christmas. The deployment is intended to boost service standards for customers and increase the success of the membership. NFRN National President Stuart Reddish commented: “What we appreciate about the app is that it gives our members immediate digital access to their customers. Commerce has been moving increasingly online for many years, and the impact of Covid-19 will only accelerate this. The larger players have usually had the advantage when it comes to resources, but the Jisp app will empower us to digitise and provide a more modern customer experience. Shoppers can pay quickly and easily and, in the post Covid-19 environment, this will satisfy their preferences for not handling cash.”

for price increases is two in every thousand in Scotland.

Lidl to recruit 220 more staff for Scottish expansion Lidl plans to hire up to 220 new members of staff in Scotland over the next 12 months, to cover four new store openings and investment in its existing portfolio. New stores in Rosyth, Glasgow Finnieston, Glasgow Robroyston and an as yet undisclosed location will add to the current estate of 103 Scottish sites. Upgrades are also planned for several existing stores including Kelso and Kilsyth.

Touchless sanitisers make Inverurie safe for shoppers Over 80 businesses in the Aberdeenshire town of Inverurie have installed touchless hand sanitiser dispensers with the support of We Are Inverurie BID and Inverurie Business Association. The sanitisers were supplied by LocoSoco Group, a business that seeks to introduce sustainable products and services into communities in a way that shares revenue and

TRADE BODIES New and updated SGF site

SGF launches new website amid corporate member surge Scottish Grocers Federation has announced the launch of a refreshed website. Live now at sgfscot.co.uk, the new site features easily accessible advice and guidance for members, full details of staff and National Executive members and information on SGF’s calendar of events. The site is fully mobile enabled and automatically detects what environment each individual user is using to browse the site, to display it in the format that’s best for that user. The Federation has also seen a surge in corporate membership, reflecting the growth in popularity of the convenience sector during lockdown. New members have come from across the service and manufacturing sectors of the supply chain and include Calbee, Shoply, Highland Food and Drink Club, Lincoln Commercial Funding, Ian McLeod Distillers, William Grant and sons, StaffSafe, Cakes by Rebecca, GC Thermal Solutions, Too Good to Go and Motor Fuel Group. SGF boss Pete Cheema commented: “We are delighted at this signiﬁcant and rapid increase in membership. It is clear evidence that key companies in Scotland and across the UK fully realise the importance of having a strong connection with the convenience sector. The time is right – shoppers have embraced convenience and by joining forces and working together we can ensure that they stay there. Our message is clear: come on board with us now!”

CHARITY

Spar raises £1.5m for Marie Curie Marie Curie has announced that Spar UK has now raised £1.5m for families living with terminal illness. Spar chose Marie Curie as its national charity partner in 2017. Thanks to fundraising efforts from independently owned Spar stores around the UK, 80,000 hours of nursing care or almost 9,000 nursing shifts where patients and families have been given expert care and support have been granted. Tom Heron, Senior Partnership Manager at Marie Curie, said: “Marie Curie would like to thank each and every one of Spar’s staff for their dedication and support to help make a real difference to families living with terminal illness. Now more than ever, people need Marie Curie.

equity with community partners. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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News Extra

Crime | The Problem With Face Coverings

NewsExtra GROW YOUR CRISPS & SNACKS SALES – P32 CRIME Cowardly thug takes full advantage of anonymity offered by coronavirus rule

Convenience Matters with the SGF According to data supplied by The Sunday Times, 7,200 cash machines were shut down in April and May. Of these, 5,400 remain closed, raising fears that many will never reopen. This has resulted in a severe cash shortage in the UK, as some ATMs ran out of money or were switched off. According to The Sunday Times, dozens of communities were left with the nearest working cash machine over three miles away. Some of the ATMs were closed because operators were unable to get access to the safe behind machines that were located on the walls of business premises that were forced to close because of coronavirus. This clearly exacerbated the problem, along with the switch to contactless payments and credit/debit payments. SGF has been working directly with LINK on this. In their view access to cash remains vital to millions of consumers but the decline in volumes is putting many ATMs under pressure. Convenience stores are an especially important location for ATMs and LINK is working hard to maintain that network and to reopen any ATM that has closed because of the Covid crisis. The loss of free ATMs – and the closure of bank and building society branches – will continue to hurt the most rural and poorest communities in the UK. The most deprived communities in the UK saw the smallest declines in cash withdrawals, with the biggest drops occurring in city centres like Glasgow, that fell 80%. Quite simply, digital payments do not work for everyone and we must maintain a cash infrastructure to stop millions from being left behind.

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Knife stickup throws mask debate into sharp focus The armed robbery of a newsagents on the day face masks became mandatory has reignited fears that the compulsory wearing of face coverings in stores is giving criminals a golden opportunity to steal with impunity. Rikki Patel, of RNP News in Hatfield, Hertfordshire, was held up at knifepoint at 06.30 on 24 July – the very first morning that face coverings became compulsory in stores south of the border. A masked and hooded thug threatened Rikki with a large knife before ransacking the till and fleeing with £100. He also wore latex gloves, something that passes without comment during lockdown. A passer-by saw the bandit hurrying out of the store and rushed to help Rikki, who had already pushed a panic button. Police officers were on the scene 15 minutes later, however the robber is still at large. Enquiries into the incident are ongoing. The terrifying incident was captured by the store’s CCTV camera. Rikki’s husband Nilesh was at home while she opened the store. He said: “The hooded attacker entered the store with a mask on and dawdled around the shop for a moment, before approaching the till and attacking Rikki. “Rikki immediately held her hands up and opened the till.” Understandably, Rikki is now too afraid to be in the store alone. Voicing concerns that many retailers share about the face covering rules, Nilesh said: “Usually, you are able to notice someone that is intentionally covering their face and ask them to remove their mask or show their face. “Because of the new regulations you can’t tell who is genuine and who is not, so it’s far easier for criminals to go unnoticed. “I understand that the government has made face masks compulsorily to protect everyone against Covid-19, but why now instead of when the virus was at its peak?” NFRN National President Stuart Reddish said: “It is unfortunate that the steps being taken to protect the local community during the coronavirus pandemic have also helped this criminal protect their identity when committing this appalling attack. “The new face mask regulations in England and Scotland undoubtedly make it easier for attackers to commit crimes against retailers.”

Despite praising their response to the incident, Reddish called on the police for more support. “Criminals need to know that they will be stopped – regardless of the new face mask laws,” he said. The rules were condemned by retailers as soon as they were announced. Scottish Grocers Federation strongly criticised the move, with Chief Executive Pete Cheema stating on 2 July: “Staff are already under tremendous pressure and this will only add to this in in terms of enforcing these measures instore and with age verification. Face coverings will further exacerbate retail crime. “There is no evidence to show that stores are hotspots for Covid transmission. The Scottish government should have continued with a voluntary approach to face covering.” Despite its concerns, SGF subsequently worked with the Scottish government to develop clear and comprehensive guidance on the new measures. Cheema said the mandatory use of face coverings had been “implemented smoothly” in Scottish c-stores and in the main “without incident”. However, he remains cautious about the “massive risk” face coverings present, especially after the Hatfield incident: “Unfortunately, we have already seen a recent case where a retailer in England was robbed and subjected to a knife attack in-store by an individual who was also wearing a face covering. “We will continue to monitor developments but there remains a real concern that face coverings will exacerbate retail crime.” www.slrmag.co.uk

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Comment

WALK THE WALK AND TALK THE TALK How ‘ethical’ would you rate your business on, say, a scale of one to 10? OK, you would be forgiven if you’ve never really thought about it before. You’ll have an idea instantly about where you sit on the ethical spectrum - no doubt towards the ‘good’ end - but being ethical is maybe not something that crops up on a daily basis. But here’s the thing: for around half of shoppers in a study by KAM Media, a brand or retailer’s impact on health, the environment and their ethical stance are viewed as major factors in influencing their buying decisions. Yes, they want value and quality and quick service and all the usual stuff, but once those needs have been met (as they will be in most convenience stores), they then move up to the next level of concerns and are looking to buy from retailers who share their values in a much wider sense. Younger customers are particularly ‘woke’ when it comes to issues like this. Coronavirus will undoubtedly help accelerate this trend to more ethical, ‘mindful’ shopping and there’s plenty of evidence that this is already happening. But what does ‘ethical’ mean in this context? It probably means a hundred different things but it comes down in the end to a greater interest in people and the planet than in pound notes. The pandemic has exposed the weak underbelly of the globalisation model that has prevailed for the last few decades. The ‘greed is good’ ethos is no longer as palatable as it once was and many customers now want to feel that they’re doing something valuable and good when they spend their hard-earned money. That might be a simple as using a local convenience store instead of an international supermarket chain or buying a few beers produced at a local brewery rather than something that’s been flown half way around the world. It’s an important issue because local retailers are already at a distinct advantage over their larger competitors, most of whom are owned by faceless investors across the globe, ruthlessly pursuing growth and dividends. It’s in our sector’s interests to push this ethical agenda - and it’s relatively easy to do, as you will discover in this issue’s cover story. Start the journey today and keep communicating with your shoppers to bring them along with you for the ride. Small steps in the right direction are all you need to make.

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

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

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

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

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

ANTONY BEGLEY, PUBLISHING DIRECTOR

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Make your order from your

Rep!

Bagged Sweets, Shaker Cups & more! To order or open an account, Contact Shaun Spendlow: 01506 420007 shaun.spendlow@bobbysfoods.co.uk www.bobbysfoods.co.uk SLR August 2020.indd 13

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Cover Story

Ethical Retailing

THE RISE OFF ETHICAL RETAILING One of the possible long term legacies of coronavirus looks set to be an increase in consumer interest in ‘ethical shopping’, a phrase that means different things to different people, but the implications for the local retailing sector could be enormous. BY ANTONY BEGLEY

oronavirus will have many lasting impacts upon the local retailing sector, both negative and positive - but one of the more likely outcomes is that the pandemic will change forever the way that consumers shop. Their experiences during the last few months have helped shoppers understand that the communities they live in are more fragile than they had imagined and the local economies they rely on are similarly less robust than they might have hoped. A rise in more ethical consumption is a distinct possibility, but what exactly does ‘ethical’ mean to shoppers? In reality, it probably means 100 different things to 100 different consumers, but it’s likely to encompass issues such as sustainability, local sourcing, authenticity, veganism, community spirit, transparency and a greater interest in people and the planet than purely on pound notes. KAM Media Strategy & Insight Director Blake Gladman puts it this way: “If you consider all the factors at play when shoppers decide upon which brand to buy or what retailer to shop at, the usual suspects spring to mind: price, range, availability, speed of service and so on. Yet, from our research, around half of consumers consider the brand’s 14

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impact on health, the environment and their ethical stance as major factors in influencing their decision.” I suspect that if KAM had to re-run that study now, after the experiences of the last few months, that number might now be significantly above 50%. So, for retailers, is it as basic as just becoming ‘more ethical’? And how exactly do they become more ethical? “It’s not that simple,” says Gladman. “It’s not as easy as just saying you

care about the environment and your community, you need to ‘live’ your ideals if you want to resonate with consumers of today. Everything a brand or retailer does from how it treats its staff to how it disposes of its waste and how it interacts with the local communities in which it operates – is all, somehow or another, in the public domain, and it’s by these actions that consumers measure a company, not by what it says in its adverts.” www.slrmag.co.uk

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Ethical Retailing

Transparency and authenticity, then, sit at the core of a truly ethical retailing business. The good news, however, is that what’s good for the environment and good for the community is invariably also good for business. “We all like to spend more time with people we like, respect and who share the same values as us,” says Gladman. “And it’s no different when it comes to the brands or retailers we choose to spend our time and money with. Show your customers that you are a business that they should want to do business with. The key, however, is that it has to be authentic. Nurturing authenticity is a sure-fire way to gain credibility and loyalty but a lack of authenticity or worse – trying to fake it – is a one-way ticket to the bottom of the pile.” In today’s ‘always on’, connected world, it is easier than ever to bring your customers into your world and share your journey with them. Around two thirds of the UK population actively use social media and spend an average of almost two hours a day on sites like Facebook and Twitter. That means news travels fast, and that means good news and bad news. “It’s all about having a set of principles that you truly believe in and sticking to them,” says Craig McCormack, a director of ethical Glasgow wholesaler Greencity Wholefoods. “Since we were formed in 1978, we have believed there is more to business than just profit. We

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started out in business simply packing bulk wholefoods into smaller packs to help retailers and the catering industry which helped create a healthy, ethical ethos for the business. Since then we have tried to lead the way by ensuring that everything we sell is free of GMO and other harmful ingredients and we actively maintain a list of brands that we don’t feature due to their unethical stance.” The company’s principles are wide-

Cover Story

ranging and strict. It does not sell any products tested on animals, only sells goods that are suitable for vegetarians, offers a huge range of dietary specific products such as dairy-free and glutenfree foods and has zero tolerance policies in place for a range of important sustainability issues including plastics, packaging and unethical ingredients. As authenticity goes, in terms of ‘living their ideals’, it doesn’t get much more authentic than this. As the original ethical wholesaler, does Greencity believe that the coronavirus pandemic will see a rise in interest in ethical consumption? McCormack believes so: “There are choices that can be made. I think consumers realise that a lot of the problems of food supply during the pandemic were down to poor supply chains involving larger producers and retailers. There is a growing movement towards more local and ethical suppliers as people are starting to see that many larger producers only care about profit. The damage many of the larger corporations inflict on the environment and health is becoming more evident every day.” He believes that the massive shift towards using local retailers during the crisis will be sustained to some extent in the longer term, and this will translate into higher demand for ethical products as retailers see more and more shoppers seeking out ethically better products. Crucially, McCormack is also seeing AUGUST 2020 | SLR

06/08/2020 13:08:57

Cover Story

Ethical Retailing

evidence that shoppers are increasingly happy to pay more for better food. “Previously retailers assumed that ethical and local products had a high price tag which the public would be reluctant to pay, but now there is a realisation that consumers will pay a fair price for the right product,” he explains. “Coronavirus has also allowed retailers to find a whole new demographic of customers, people who previously would head to a specific type of shop now know they can get what they want more locally.” If the market is primed, then, for a shift to more mindful consumption, how do retailers go about improving their ethical credentials? “It’s actually pretty easy with some thought and creativity,” volunteers McCormack. “For example, there are everyday products like tea and coffee which are Fairtrade and would work for any retailer. The days of instant coffee are fading and the demand for better coffee and tea sourced ethically and sustainably has massive potential. “The same can be said for more local products and research has shown that Scottish products are often regarded as much better quality than similar products from elsewhere. It’s a 16

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powerful strategy for local retailers to be able to offer so many local, regional and Scottish products that customers won’t see in a supermarket.” Gladman also suggests that it’s best to start simple and work your way up when it comes to building your ethical credentials. “It’s very hard for retailers to engage with calls to ‘help stop climate change’ or ‘improve the health eating habits of the nation’,” he says. “So keep it simple and keep it actionable. Reducing unnecessary use of plastic packaging in store, banning plastic carrier bags, encouraging use of reusable cups and engaging positively with the Deposit Return Scheme are all actions that can be implemented easily and quickly.” But it’s not enough to simply work on your ethical stance, agree McCormack and Gladman, you have to communicate efficiently and regularly with your customers and potential customers. “Communication is key,” advises McCormack. “It’s not difficult to improve your credentials and it’s not difficult to make an impact in-store. I’ve seen retailers do this successfully by creating a Scottish products fixture which drove increases in sales because

people are interested in local products. And social media is a very powerful tool which allows you to tell customers your story and the story of products you sell.” He cites an example of one Greencity customer who recognised the growth of Airbnb in his local area and identified an opportunity to introduce wine tasting events via social media, using video and customer reviews to promote a new, improved range of alcohol products. This led to an increase in revenue, especially from tourists who don’t want to travel far from their accommodation. “If it’s shareable, then share it,” advises Gladman. “Social media allows you to share your values and your ethics quickly and easily and helps you develop a much deeper relationship with your customers. If you’re not there yet on your journey towards more ethical retailing or you haven’t even started, don’t worry. Just start the journey now and share it with your customers. They want the real you, warts and all. Customers know we live in a world that’s not perfect so the way to truly connect with today’s consumer is to embrace the challenges you face, embrace the mistakes you make and celebrate your successes as you take them on that journey with you.” www.slrmag.co.uk

06/08/2020 13:09:01

REENCIT GWHOLEFOODSY

Suppliers to the trade in vegan, vegetarian, Organic and Fairtrade food & drink. Specialists in zero waste, local artisan products, healthy snacks, and chilled food, with over 5000 retail and catering lines. Greencity is Scotlandâ&#x20AC;&#x2122;s premier ethical wholesaler, our success built on developing local and ethical supply chains for a loyal customer base.

NOURISHING CHANGE SINCE 1978 visit us at www.greencity.coop

Social Media Icons Social Media Icons tel: 0141 554 7633 2017 Updated Social Media Icons 2017 Updated email: sales@greencity.coop 2017 Updated

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/greencitywholefoods @greencitycoop @greencitywholefoods

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Ethical Retailing | Sustainability

GREEN SHOOTS: CONSUMERS AND SUSTAINABILITY IN A COVID-19 WORLD Many industry observers are predicting a resurgence in interest in sustainability as the coronavirus pandemic begins to recede, but what will that mean for Scotland’s local retailers? BY LIZZIE BARTHOLOMEW, COMMUNICATIONS MANAGER, TOMRA COLLECTION SOLUTIONS UK AND IRELAND.

uch has been said of a ‘green recovery’ for the economy after the Covid-19 pandemic, but what does this mean for retailers? Rightly, the focus for retailers at the beginning of the pandemic was on keeping shelves stocked, colleagues and customers safe and business running. Now, as we begin the slow exit from lockdown measures, it is becoming clearer that sustainability remains high on the agenda for consumers. In July, Zero Waste Scotland outlined its fivepoint plan for a green recovery from Covid-19. These measures focus on ‘building back better’ to create a robust and green economy in Scotland. The message here is clear: any sustainability initiatives must work hand in hand with getting business moving again. Here, we identify three areas where consumers are showing an increased interest in sustainability following the impact of Covid-19, and how this could translate to business benefits.

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MINDFUL SHOPPING One trend emerging from the pandemic is consumers becoming more conscious of where they spend their money, not just what they spend it on. While value, convenience and availability are key drivers for buying certain products, research by McKinsey highlighted that 44% of shoppers are now more mindful of where they spend their money compared to before the pandemic. This naturally represents a huge opportunity for local retailers who can highlight their strong connection to the community. The same research also showed that consumers are likely to spend more with a company who take care of their employees’ safety. This is a good reminder that sustainability is about people and community, as well as the planet. When it comes to making environmentally conscious choices, research by Accenture has highlighted that 45% of consumers say they are now making more sustainable choices when shopping and will likely continue to do

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Sustainability | Ethical Retailing

so. Therefore, retailers who can offer a range of sustainable food choices are likely to be preferred by many shoppers.

EMBRACING LOCAL A shift to local shopping has been clear throughout Covid-19, necessitated by travel restrictions, long queues at larger supermarkets and a general preference for staying close to home. Supporting local businesses has also become increasingly important for consumers, something which will continue to benefit convenience stores in the coming months. Many stores have also seen success by offering home delivery and click & collect services. The rise in these offerings has been huge, with the Association of Local Convenience Stores estimating that around 65% of convenience stores are now offering them in some form. This has further fostered a sense of community support, with the services largely aimed at those isolating or vulnerable. The popularity of this offering means it looks set to stay, with research by HIM & MCA Insight UK showing that around 70% of consumers are planning on using convenience store delivery services more in future. There is now an opportunity for local stores to become even more central to their community, by supporting wider sustainability initiatives which will further benefit the local area. According to YouGov, 70% of consumers who shopped locally during the pandemic say that they will continue to do so, making it a chance to reap the business rewards too.

A RENEWED FOCUS ON RECYCLING While the perceived hygiene of packaged goods is appealing to many consumers, a new poll by Populus found that two in three Scots are concerned about an increase in plastic waste following lockdown. Litter has become a huge issue, with people now spending more time in parks and outside spaces, as well as consuming more on-the-go food and drink. This has prompted a new joint anti-

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Cover Story

littering campaign by Zero Waste Scotland, Keep Scotland Beautiful and the Scottish Government. One of the interventions to reduce littering and improve recycling rates in Scotland is the introduction of a deposit return scheme (DRS) for drinks containers in 2022. The scheme has now been voted through as law, with a delay to the launch date from April 2021 to July 2022 to give retailers more time to prepare. Consumer support for a DRS remains higher than ever. In June, a survey by Nature 2030, showed that 84% of respondents supported an ‘all in’ deposit return scheme covering drinks containers of all sizes. This was up from 69% in 2019, highlighting that public appetite for sustainability continues to increase following Covid-19. Across Europe, deposit return schemes have continued to operate safely throughout the outbreak with adjustments to maintain social distancing and provide ‘touch free’ operation. In some markets, the volume of containers returned is now higher than pre-Covid-19 levels, highlighting that if consumers feel safe, they are happy to recycle.

IN SUMMARY Covid-19 has been an unexpected crisis for retailers, but they have demonstrated just how resilient they are over the past few months. As we begin to slowly exit from the toughest lockdown measures, for many it will be a time to think about what ‘building back better’ looks like for their own businesses. For some, this will mean fostering a stronger connection than ever to their local community. For others it may mean stocking more local foods. Looking further ahead, some retailers will be looking at plans to create a great recycling experience, as the deposit return scheme approaches. One thing we know for certain is that the challenges facing the environment have not gone away, and the appetite from both retailers and consumers to make a difference, has only been strengthened.

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News

Products

Fruit Shoot for the Moon returns Britvic has brought back its

ProductNews

Robinsons ‘Fruit Shoot for the Moon’ on-pack promotion. The campaign aims to carry on attracting new shoppers to the brand by giving parents the chance to win their child’s dream ‘thing’ when purchasing multipacks this summer. The promo runs until 30 September across 200ml four- and eightpacks.

Refreshed Jammie Dodgers now vegan-friendly Burton’s Biscuit Company has unveiled a fun new look for Jammie Dodgers that also brings key product credentials like ‘No Nasty Stuff! We’re Jammie Enough!’ to the front of the pack. Coinciding with the redesign, Jammie Dodgers have also become vegan-friendly. This new status is clearly flashed on the

WHAT’S NEW ON THE FORECOURT? P36 SNACKS £1,000 prizes up for grabs in campaign that also raises awareness of industry charity

KP Snacks rewards retailers and champions GroceryAid KP Snacks has launched a nationwide campaign to reward convenience retailers for their resilience shown during the pandemic and help them retain the shoppers and bigger baskets that they have won. The ‘Local Legends’ retailer incentive programme offers 40 separate prizes worth £1,000 each. Winners will each receive £250 worth of KP Snacks product, £250 Love2Shop vouchers for staff, and a £500 donation on their behalf to a registered charity of their choice.

To enter, retailers need to purchase KP’s ‘Super Seven’ singles range of McCoy’s, Hula Hoops, Butterkist, KP Nuts, Skips, Space Raiders and Nik Naks via select wholesalers and distributors to be entered into a free prize draw. The prize draw will run throughout August to October with specific dates for participating customers. As part of the campaign, KP is raising awareness of GroceryAid and the support available to wholesale and convenience retailers. A trade advertising and

customer communications plan sponsored by KP seeks to link retailers and their staff with the emotional and financial support available to them via the industry charity. GroceryAid President Charles Wilson said: “We at GroceryAid are delighted to partner with KP Snacks to support our key workers who in turn are so wonderfully supporting their communities.”

back of packs, along with a panel drawing consumers’ attention to the lack of “nasties” in the new-

MINTS & GUMS

look product.

Find your other half with Wrigley

Border Biscuits unwraps Morrisons deal

Mars Wrigley has launched a new on-pack campaign for Extra chewing gum. ‘Find Your Other Half’ sees core flavour singles, bottles and multipacks of Extra prominently featuring a capital letters. Consumers are encouraged to first find their own initial, then pair a pack with partners, friends or family. The campaign runs across Extra Peppermint, Spearmint, and Bubblemint in singles, bottles and multipacks with a representative split of initials across outer stock. It is supported with outdoor media and digital activity. Specially designed instore point of sale has been developed to ensure that retailers can quickly and simply decant single packs out of boxed outers to allow shoppers to easily find their own initial – or someone else’s. The campaign is based on research that suggests personalisation and the opportunity to share something with someone special drive purchase intent. Sasha Storey, Senior Brand Manager for Extra Gum, said: “With this campaign Mars Wrigley aims to deliver both surprise and excitement in-store for shoppers.”

Border Biscuits has secured a retail listing with Morrisons which will see the company’s Dark Chocolate Ginger Bar roll out across 182 supermarkets in the UK. The deal follows £1m of private investment in the firm’s Lanark manufacturing plant. The bar is an evolution of Border’s best-selling Dark Chocolate Ginger and its first foray into the ‘snack bar’ category.

New Mondelez competition is a win-win Mondelez has launched a new convenience-only promotion offering retailers the chance to win up to £25,000 for their store and up to £25,000 for their chosen charity. There are 100 prizes in total up, including 10 prizes of £2,500 with a £2,500 donation and 89 prizes of Now TV passes with a £500 donation. Retailers need to buy any participating case for a chance of

COMPETITION

Win a van, courtesy of Bestway and Walkers Retailers can bag a Ford Transit Courier Leader 1.5L van in a competition from Walkers and Bestway. To be automatically entered into the prize draw, retailers need to purchase – from Bestway – one case from the Walkers Hero 20 range. A host of other prizes are also up for grabs, as part of a prize pool worth £20,000. The competition closes on Monday 31 August.

finding a winning ticket inside. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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Products

News

BISCUITS New promo hopes to get kids off the couch

Burton’s gets minis moving Burton’s Biscuit Company has revealed ‘Minis Get Moving’, a new onpack promotion that encourages children to get active and have fun. The promo has been timed to coincide with schools reopening after the summer break. It will feature on approximately three million Minis packs of Maryland Choc Chip and Maryland Double Chip Mini Cookies. An instant win mechanic will give families the opportunity to win prizes including FitBit Ace 2s, bikes, scooters, skateboards and family prizes such as trampolines, garden play equipment and games. Everyone who purchases a promotional pack

will be eligible to claim a free ‘Kids Go Free’ voucher, valid against hundreds of sports and leisure activities around the country and redeemable for a year after the promotion ends. Activities include canoeing, horse riding, tennis and mountain biking. Minis Get Moving runs from mid-August to 7 November. Kate Needham, Burton’s Biscuit Co’s Marketing Director expects the promotion to “really drive” purchase: “Not only will it enable children to have fun whilst being active, we know that 33% of shoppers are more likely to buy a product featuring an on-pack promotion.”

CONFECTIONERY Mondelez brand tackles obesity crisis

Cadbury cuts 10 billion calories Mondelez has said it will bring all its Cadbury chocolate bars sold as part of a multipack under 200 calories by the end of 2021. Assuming sales remain static, the move will see 10 billion calories removed from the UK market every year. It builds upon the company’s pledge to bring all its Cadbury chocolate and wider biscuit products typically bought by parents for children under 100 calories by the end of 2020; Cadbury Fudge, Curly Wurly and Chomp, as well as Barny sponge bears and Cadbury Mini Fingers and Cadbury Animals are now all under 100 calories. Louise Stigant, UK Managing Director at Mondelez, commented: “Our products have been delighting consumers for hundreds of years and we feel a strong sense of duty to preserve what makes them so special. We also recognise we must play our part in tackling obesity and are committed to doing so without compromising on consumer choice. That is why we have been focusing on the areas we know will make the greatest impact.”

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Buxton unveils new box and TV ad Buxton Natural Mineral Water has launched ’Don’t Give Up, Rise Up,’ a £1.8m media campaign spanning TV, out-of-home, social and digital channels. It coincides with a packaging refresh promoting the brand’s sustainability credentials. A

IRN-BRU ENERGISING SCOTLAND’S SOFT DRINKS MARKET IRN-BRU Energy, the high caffeine energy drink with the indescribable taste of IRN-BRU, has performed really well since launch, outselling all other leading slim can ﬂavoured energy products*1 and selling over 5 million cans.*2

new and updated 15 x 1-ltr Buxton box has also rolled out. The box is easy to merchandise outside of chillers, stackable and 100% recyclable.

Win £5k with Carabao Retailers have the chance of winning £5,000 in a new prize draw from energy drink brand Carabao. To enter, retailers must purchase one case of either plain Carabao cans or one from the new price-marked range. One case equals one entry, with no limit on entries. Thirteen prizes of £500 are also up for grabs,

Consumers are increasingly opting for ﬂavoured variants when choosing an energy drink and IRNBRU Energy, from the No.1 Scottish Grocery Brand*3, offers an exciting additional choice.

with one guaranteed £500 winner from every participating wholesaler.

STG adds Mac Baren Scandinavian Tobacco Group will distribute the Mac Baren Tobacco Company’s leading pipe tobacco brands in the UK from 1

Available in sugar and no sugar options, retailers should merchandise both variants of IRNBRU Energy in the chiller next to other slim can energy products to offer shopper choice and drive incremental sales.

September 2020. Mac Baren is the second largest producer of pipe tobacco in the world. Its products are sold in over 80 different countries. The UK range consists of Three Nuns, St. Bruno Ready Rubbed, St. Bruno Flake and Gold Block.

Sources: *1: IRI Marketplace, Value Sales, Total Standard Energy Slim Can Formats, Qtr to 19/04/20, Total Scotland *2: AG Barr Sales Data *3: Kantar World Panel, Value Sales, Take Home Non-Alcohol Brands, MAT to 18/09/19, Total Scotland

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News

Off-Trade

Pernod Ricard gets the eye of the tiger Pernod Ricard has announced

Off-TradeNews

a collaboration with super premium mezcal brand Ojo de Tigre. The partnership strengthens Pernod’s presence in mezcal, following the spirits giant’s entry into the category in 2017 with a majority stake in Del Maguey Single Village Mezcal. Ojo de Tigre is a small-batch, artisanal mezcal produced using sustainable agave from the Tobala and Espadín plants.

Barclays backs Glasgow’s global ambitions The Glasgow Distillery Company has secured a £5.5m loan from Barclays to help support its international growth and expansion plans. The funding will also provide working capital to invest in production and further increase whisky stocks. Despite the upheaval caused by

THE ‘NICOTINE PORTFOLIO’ EMERGES. P44 RTDs SHS Drinks keeps the NPD coming

WKD Lemon launches WKD has kept its recent run of NPD launches going with the introduction of a Lemon variant. New WKD Lemon (ABV 4%) is available now from Bestway Wholesale depots in 700ml glass bottles, in both standard and £2.99 price-marked pack formats. It launches with a selection of trade deals to incentivise distribution, prominent off-shelf display, POS kits, and a “huge” social media campaign. It also benefits from WKD’s brand-wide 2020 support activity.

WKD Lemon hits the market just after the brand’s take home volumes in Scotland increased 109% in the quarter to midJune, with WKD generating an

incremental £2.2m for the RTD category in Scotland over the last year. “WKD Lemon will bring an exciting citrus dimension to the range,” said Nick White, Head of Marketing at SHS Drinks. “Lemon is a classic, ever-popular drink flavour and expanding our offering will further increase WKD’s appeal to its core 18 to 24-year-old target market.” For more information visit shsdrinks.co.uk. For sales enquiries call SHS Drinks on 01452 378555 or email info@shs-sales.co.uk.

the coronavirus outbreak, the distiller has still managed to lay down some 250,000 bottles of

BEER

single malt.

Take a walk with Peroni

Mangrove unveils new aperitif

Peroni Nastro Azzurro has launched ‘Walk With Us’, a new global advertising campaign that reflects the heart of Italian culture as lockdown measures in the UK start to lift. The campaign runs across TV, radio, video-on-demand, outof-home, print and social media. It coincides with an on-pack promotion ‘Win the Ultimate Passeggiata – an Italian Journey’.

Premium drinks importer and distributor Mangrove UK has launched El Bandarra Al Fresco (1 litre, ABV 14.5%, RSP £19.99), an aperitif from Barcelona. Described as “a refreshing, bittersweet aperitif drink that prides itself on its natural wine base,” it combines Garnacha wines with natural Mediterranean botanicals and is available to the trade from mangroveuk.com.

New branding for Broughton Borders-based Broughton Brewery has refreshed its packaged beer range, extending into 33cl cans and – by customer request – launching Hopo Blonde gluten-free lager. The Hopo brand has been redesigned, with the addition of 33cl cans for Hopo Session IPA and gluten-free Hopo Blonde Lager cans. The award-winning brewer’s flagship 6.2 IPA is now

HARD SELTZERS Latest drinks trend keeps growing

Keepr’s creates buzz with Hard Seltzers launch The British Honey Company, owner of the Keepr’s spirits brand, has launched a new premium ready-to-drink Hard Seltzer range. Keepr’s Hard Seltzers (ABV 4.2%) is available in 250ml cans (RSP £2.75/launch promo price £2.25) in three flavours: Pear & Ginger (90 cals), Pomegranate & Rose (88 cals) and Passionfruit & Elderflower (90 cals). In keeping with the brand’s spirits, the Hard Seltzers each have a hint of the company’s signature 100% British honey. For trade enquiries please contact info@britishhoney.com.

RTDs

Cockspur packs a punch Cockspur Rum is shaking its tail-feathers in the UK RTD scene with the launch of a new rum punch. Made to a traditional Bajan recipe, Cockspur Rum Punch (ABV 4%) is available in both 275ml and 1 litre bottle formats. Cockspur spokesman Steve Wilson said: “Post-Covid, we believe the popularity of the RTD bottle, due to its hygienic and ‘no fuss’ format is set to increase still further. At the same time, the consumers desire for high quality, authentic products will remain a key driver of sales. We believe our punch delivers a true taste of Barbados here in the UK, bringing fun, sun and natural refreshment.” The Cockspur range is distributed in the UK through Craftwork. For stock enquiries call 02382 145596 or email sales@craftwork. uk.com.

called Hopo 6.2 IPA. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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Off-Trade

News

Never skim an Erdinger, says Klopp Erdinger Weissbräu has unveiled a new TV commercial starring brand ambassador Jürgen Klopp. The ad sees the

SUSTAINABILTIY Revolutionary world ﬁrst for spirits giant

Diageo unwraps paper bottle

Liverpool boss bring a crowded

Diageo has announced the creation the world’s first ever 100% plastic-free paper-based spirits bottle, made entirely from sustainably sourced wood. The bottle will debut with Johnnie Walker in early 2021. It was developed by Pulpex, a new sustainable packaging company launched by Diageo in partnership with venture management company Pilot Lite. Pulpex has established a partner consortium of FMCG companies in non-competing categories – including Unilever and PepsiCo – with further partners expected to be announced later in the year. The consortium partners each expect to launch their own branded paper bottles next year. Ewan Andrew, Diageo’s Chief Sustainability Officer, said: “We’re proud to have created this

Erdinger!” It is airing all major

world first. We are constantly striving to push the boundaries within sustainable packaging and this bottle has the potential to be truly ground-breaking. It feels fitting that we should launch it with Johnnie Walker, a brand that has often led the way in innovation throughout its 200 years existence.” Richard Slater, Chief R&D Officer, Unilever, said the company planned to reduce its use of plastic packaging by more than 100,000 tonnes in the next five years: “Joining forces to develop and test paper bottles is an incredibly exciting step forward, and we’re delighted to be working together to tackle one of the biggest environmental challenges of our time.”

pub to a standstill by urging the bartender to throw away his beer blade and “never skim an commercial channels and marks the start of an Erdinger campaign specifically tailored to UK audiences. For stocking information please contact Marston’s on 01902 329 141.

Spar continues blush trend with new Malbec Rosé This summer’s rosé wine trend has received a boost with Spar’s launch of a sophisticated new wine from Mendoza, Argentina. Spar Rios de Los Andes Malbec Rosé is available in participating Spar stores from 23 July at a launch price of £6 until 2 September 2020. Normal RSP is

RUM Grime artist teams up with Pernod Ricard brand

C-stores get ﬁrst taste of Havana Club’s Skepta edition

Havana Club is partnering with Skepta for a creative collaboration to “solidify Havana Club 7-year-old as the cult spirit brand for Generation Z”. Havana Club 7 x Skepta (ABV 40%) is available in 70cl bottles with an RSP of £24.99. To support local retailers, the new limited-edition bottle will first launch exclusively in convenience stores across major UK cities for one month, before rolling out nationwide. The limited-edition Havana Club 7 bottle has been designed in collaboration with Skepta and celebrates both the brand’s Cuban roots and the grime artist’s Nigerian Yoruba heritage. It has a clear ‘Skepta’ call out and disruptive colour scheme, as well as silver foiling to increase visibility across the off-trade. Raja Banerji, Marketing Director at Pernod Ricard UK, commented: “We are excited to be driving relevance and credibility at a grass roots level with our key consumers and, with 3.7 million monthly listeners on Spotify, are delighted to be working with Skepta.”

RUM

Four new Dead Man’s Fingers Spiced rum brand Dead Man’s Fingers has almost doubled its range with the launch of four new flavours: Lime, Raspberry, Passionfruit and Hazelnut. Available from this month, the new variants will retail at RSP £22 for a 70cl bottle, with a 37.5% ABV. They join the brand’s five current flavours: Pineapple, Coconut, Coffee, Hemp, as well as the original Spiced Rum. The spiced and flavoured rum category is currently worth £470m and experiencing double-digit growth. Sam Caulfield, Brand Manager for Dark Spirits at brand owner Halewood Wines & Spirits said: “Our new offerings have been carefully developed to reflect the latest flavour trends, whilst also tapping into the popularity of the UK’s most-loved cocktails and turning them on their heads.”

£6.50.

TWE introduces Samuel Wynn to UK Treasury Wine Estates has added Australian wine brand Samuel Wynn & Co to its UK portfolio. The brand has been created to capture the attention of millennial consumers with “bold creative”, an angular, whisky-like bottle to drive shelf presence and approachable styles of leading wine varieties. These include Dice With Destiny Cabernet Sauvignon and The Man From Nowhere Shiraz.

Nikka marks founder’s Glasgow nuptials Japanese whisky brand Nikka is celebrating the centenary of the wedding of founder Masataka Takesturu to Jessie Cowan in Glasgow with the release of two single malts. Miyagikyo Apple Brandy Finish Single Malt and Yoichi Apple Brandy Finish Single Malt are both 47% ABV, 70 cl and RSP £195. Both have spent six months in apple brandy casks. Nikka is distributed in the UK by Speciality Brands.

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News

Newstrade

NEWSPAPERS

Mail owner returns to proﬁt in June DGMT, the owner of the Mail titles as well as the Metro and the i, has reported a return to profit in June following a coronavirus-fuelled slump. This is despite a 45% drop in print and digital ad revenues from March to June. Revenue for the three months to June fell 23% to £241m, with circulation revenue falling by 12% in the third quarter as a result of lockdown. Online traffic, however, saw a spike with the MailOnline recording a growth in average daily unique browser traffic to 17.4m in the past nine months – up by 37% year-on-year. The Mail was one of the few major newspaper groups not to implement a furlough scheme, choosing instead to offer staff shares in exchange for a pay cut.

News& Magazines HOW LOW AND NO CAN YOU GO? P42 COVER PRICES Margins maintaining

The Sun increases cover price and maintains retailer margins The cover prices on all editions of The Sun and The Sun on Sunday have risen but retailer margins have been maintained. The cover prices on all editions of The Sun and The Sun on Sunday were increased from Saturday 1 August with Monday to Friday editions up by 5p while weekend editions increased by 10p. In some welcome news for retailers, all percentage margins are being maintained. The changes are forecast to deliver an extra £25m in revenue through retailers’ tills and an additional £5.5m in margin over the next 12 months. The Sun continues to be both Scotland and Britain’s most read newspaper. A letter to retailers announcing the changes stated: “As a business we recognise the important role our titles play in driving customers into your store, as such we will continue to invest in salesdriving initiatives that will help you to get our newspapers in more baskets, more frequently.” The letter highlighted the recent launch of the newspaper’s national Bounce Back Britain

campaign designed to support readers, retailers and the economy as the UK emerges from lockdown. The Sun’s campaign focuses on several areas to help retailers grow sales of the paper including promotions such as the market-leading £9.50 Holidays and Scottish Sun Superdays. Retailers were also reminded that The Scottish Sun continues to offer value for money over its competition, being 30% cheaper than The Daily Record and 20% cheaper than The Daily Mail over seven days. NFRN’s National President Stuart Reddish commented: “We are pleased that, unlike other publishers of late, News UK is accompanying its price rises with pro rata terms. Members will be relieved it recognises the extremely demanding trading environment that independent retailers are currently operating in, along with an understanding that margins must be maintained when cover prices rise.”

NEWSPAPERS

Guardian to cull supplements The Guardian has informed staff that it plans to close the Weekend, Review, The Guide, and Travel sections as part of a Covid-19 cost-cutting exercise that the company is undertaking in response to a £25m hit it has taken as a result of the pandemic. Around 180 jobs are to go, with the culling of supplements a major plank of the strategy. There are plans underway to launch a new Saturday package instead. Staff have reportedly called for the Guardian to use its £945m Scott Trust Endowment Fund ‘rainy day’ cash to be used instead of large-scale redundancies. They said the publisher was damaging the main driver for people to buy the print paper, with Saturday being the biggest sales day of the week for the newspaper, typically hitting a circulation 130% higher than on weekdays.

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www.slrmag.co.uk

06/08/2020 13:09:18

Research Digest

£1.9BN OF ‘LOST SALES‘ IN SCOTLAND

HALF OF SHOPPERS THINK IT’S ‘TOO SOON’

New analysis by SRC shows that retailers in Scotland have lost almost £2bn in sales during the ﬁrst four months of lockdown.

new analysis undertaken by the Scottish Retail Consortium (SRC) and published a month after non-essential shops were permitted to re-open has found that retailers in Scotland lost £1.9bn of retail sales during the first four months of the coronavirus pandemic. Scottish retail sales recorded four successive months of

double-digit decline between March and June. The analysis, based on Scottish Government and SRC data, shows the sheer scale of the retail sales that were lost during this period compared to the same period last year. The performance of Scottish retail sales improved in June compared to recent months but was still down almost a fifth on the same period last year and lagged behind that of the UK as

Inside Business

a whole. Non-essential shops in Scotland were permitted to reopen from 29 June, with stores in shopping centres allowed to re-open from 13 July. David Lonsdale, Director of the Scottish Retail Consortium, said: “These figures are stark and show that retail sales crumbled over the first four months of the pandemic. Shops and retail jobs depend on the ongoing patronage of the public and whilst the situation is gradually improving, it remains particularly acute in our city centres where stores are suffering huge drops in footfall. Any prolonged absence of office workers, students and tourists from Scotland’s city centres will be hugely challenging for retail businesses who rely on their custom, and who often already face high property costs. This will have consequences for jobs, vacant premises, and tax revenues.”time will tell if they have gone far enough.”

A YouGov nationwide poll of more than 2,000 GB adults has revealed that more than half of British people believe that the re-opening of pubs, bars and non-essential businesses came too soon. Only 37% of respondents felt safe to go back to these businesses, with concerns around social distancing, readily available masks, gloves, hand sanitiser and temperature checks being paramount. Almost twothirds (62%) of respondents said effective social distancing was the key issue in their reluctance to return to pubs, bars and other non-essential businesses. The report highlighted an urgent need for businesses to be transparent and visible about how they are managing customer and employee safety. There was also a desire to see businesses having the right technology in place to manage safety and ensure compliance with the latest regulations and advice. More than a quarter said being able to access a list of daily safety procedures conducted before visiting would make them feel safer. Some 31% would feel safer if they are able to see a list of recent cleaning activities.

87% of Scots ‘plan to keep shopping online’

ew research from packaging business DS Smith among 2,000 adults appears to show that lockdown has led to Scotland becoming a nation of online shoppers – with millions in Scotland and across the UK planning to continue their digital spending spree despite restrictions being lifted. Some 87% of Scots say they are planning to shop online at the same level, if not more, as restrictions ease, suggesting that Scots are committed to online shopping for the long haul. The drastic shift suggests a permanent

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structural change to the e-commerce landscape. Key insights for Scotland include: Q 53% of Scots have shopped more online since Covid-19 Q 35% of Scots have been buying groceries online more since Covid-19 Q 25% of Scots have bought more alcohol online since Covid-19 Q 87% Scots will keep buying items online at the same level as during lockdown, if not more, as restrictions ease Q 62% of Scots will keep buying groceries online at the same level and more as

restrictions ease Q 48% of Scots will buy alcohol online at the same level as lockdown and more as restrictions ease. The changes aren’t just about volume. Not only are customers buying more online, they’re also buying in new ways. Nearly a third of Brits said they have signed up to a new shopping website that they hadn’t used before lockdown. Spending on meal kits and grocery delivery boxes soared by 114% after people were told to stay indoors. AUGUST 2020 | SLR

06/08/2020 13:09:19

Inside Business

Store Profile | McLeish’s Inverurie

PUTTING ‘30 IS THE NEW 20’ INTO PRACTICE Inspired by an article in SLR, Inverurie retailer Scott Graham has reﬁtted his entire store to allow him to shift much more focus onto lines that deliver at least 30% margin – and the results are spectacular. ANTONY BEGLEY

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t has unquestionably been a tough year or two for Scott Graham, one of Scotland’s most progressive and proactive retailers. Tough trading conditions were making life hard enough, but Scott was also drawing to the end of his 10 year lease and was having a difficult time working out what to do next. Although he won’t reveal the details, it was clearly a difficult negotiation but in the end he managed to hammer out a deal he was happy with and finally signed on the dotted line, committing him to another 10 years in the store. Scott explains: “The 10 year lease I had on the shop ran out last year and I took a while to decide whether I wanted to renew it. Because of that, we had stopped properly investing in the store for the last 18 months or so, but we finally got a deal sorted to renew the lease and we knew that we had some catching up to do.” As part of signing the new lease, Scott also had a few important decisions to make. He had to decide whether it was the right time to look for a new wholesale partner and he also mulled over the possibility of going with a symbol group for the first time. “In the end we decided to stick with the McLeish’s name, rather than go with a fascia,” he says. “And we also decided to renew our deal with JW Filshill as they were the most proactive in supporting us.”

With the new lease in place and a new supplier deal agreed, Scott decided it was the right time to look at a full refit to incorporate a lot of the ideas and concepts he’d been picking up over the last few years during visits to other stores. So what was the ethos behind the refit? Flatteringly enough for us, it was an interview with SLR that originally got Scott to thinking about a new strategy for his store, one that he believed would drive him well over the next decade. “This idea for the refit actually started over a year ago when I did an interview with SLR for a cover story on ’30 being the new 20’. The idea was that – with costs rising left, right and centre – retailers now had to be looking to make 30% margins and not the 20% that was industry standard at the time. I’d been thinking about that for months and months, and I’d basically been collecting ideas that would let me grow margins in the store while also improving my offer to my customers.” When coronavirus came along, the consummate entrepreneur in Scott saw an opportunity. “When we learned that we were able to access a £25k non-repayable coronavirus business grant and that we were also going to get a year rates-free, we realised that – combined – it would basically let us pay for the bulk of the refit,” he says. www.slrmag.co.uk

06/08/2020 13:09:19

McLeish’s Inverurie | Store Profile

Having said all that, it could have been so very different, as Scott recalls: “When lockdown first kicked in I initially convinced myself that we should just shut. No school kids, no workies, no office staff, no passing trade. Thankfully, I couldn’t have been more wrong!” As it turned out, the store has been performing exceptionally, averaging about 40% above pre-Covid sales levels. With the store having dodged that particular bullet, Scott set about planning a full-scale refit, pretty much gutting the inside and exterior and starting over. “We had originally planned to do the refit over the Easter weekend, but the way lockdown was going killed that plan stone dead,” he says. So he bided his time until, towards the end of last month, he was finally able to pull everyone together and get the team together he needed to do the refit as quickly as possible. He says: “We spent a long time planning it but we finally swung into action in July. We closed the store on the Sunday and reopened on the Thursday. The retailer in me was desperate to keep it open if possible, just to keep the money coming in, but we just couldn’t do it. The whole shop frontage was replaced and we needed to close the store for that, so we decided to just bite the bullet and www.slrmag.co.uk

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do it right.“ As part of his long-standing commitment to the local community and local economy, Scott used local tradespeople for everything he could, as he comments: “We’ve always been committed to supporting the local community as much as we can, so we used local joiners and electricians and so on. The new frontage was done by a local company too. We did have to use Vertex for some specialist bits and pieces but a lot of it was done by local businesses and tradespeople.” So, what’s new? “Just about everything,” laughs Scott. “The whole frontage was redone, as I say. The old signage looked ok, but it was tired and a bit worn. We added much bigger entrance doors and a new entrance area. The whole idea was to make the store ‘pop’ when you passed it. One of the things that so many people have said to me is that the store already looked great, so why refit it? But for me, on a high street setting like this, the store must really pop and stand out, and I think we’ve achieved that. I’m really pleased with how it’s turned out. I think it looks fantastic.” Inside, he also concentrated on making the new store ‘pop’ and he’s certainly achieved that. “We were trying to make a store that really popped, and I was also keen to make sure that it was unique and didn’t look like any other store,” he says. “We’ve used a lot of

Inside Business

“Lower margin lines and categories were either de-prioritised or removed altogether to make room for better margin lines.” AUGUST 2020 | SLR

06/08/2020 13:09:20

Inside Business

Store Profile | McLeish’s Inverurie

old red brick and timber and I think it works really well. There were times during the fitout when I thought to myself that it wasn’t coming together the way I had envisaged it, but once the signage guys came in and wrapped everything and put all the signage up it just pulled it all together and ended up just how I wanted it. I was as relieved as I was pleased!” The whole concept, however, was driven by a focus on prioritising higher margin lines, whether that meant making more of them in-store or by simply giving them more shelf space. “One of the more contentious discussions before the refit was around changing the shelving in the store from 500mm base to 300mm,” he suggests. “But we decided to go for it and it’s freed up a lot of space and allowed us to add a fifth gondola. I was nervous about that too but it has really worked well and we get comments every day about how the store looks bigger, even though it’s actually the same four walls. We also moved the till point which helps make the store feel more spacious.” The ‘30 is the new 20’ strategy manifests itself in many ways throughout the store, as Scott discusses: “We did a lot of work analysing margins from every category in the store and that informed a lot of what we chose to do. Lower margin lines and categories were either de-prioritised or removed altogether to make room for better margin lines, but obviously lines that we still believed could deliver volumes. We added a lot of new higher margin products like F’Real and Skwishee, we’ve expanded the food-to-go section from 4m to 6m, we’ve upgraded our coffee machine and we’ve added a lot of new dessert options like waffles and scooping ice cream and so on. We’ve also added a frozen range for the first time ever.“ He has also added a lot more fresh and bakery, a lot of it from local producers. “We’ve also grown our soft drinks space from 2.5m to 4m, because we were always a bit cramped in that category, and we’ve grown our wine range significantly,” he adds. “We’re just reflecting the trends we’re seeing in sales and, obviously, focusing on higher margin lines everywhere we can.” And what about that enigma of coronavirus, the grocery category? He comments: “Yes, that’s a bit of a weird one. We’ve spent years backing out of packaged grocery then coronavirus came along.” This led to a dramatic change in shopping habits, as Scott explains: “Impulse lines fell off a cliff but grocery went through the roof. I sold three tonnes of flour in six weeks at one point! I don’t think I’d sold more than about half a dozen bags of flour a week in the previous 10 years!” 28

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“On the first Sunday after the refit we were up 100% on a pre-Covid Sunday.”

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06/08/2020 13:09:21

McLeish’s Inverurie | Store Profile

Inside Business

As a result, the refit sees space allocated to grocery but in a way that can easily be changed or switched to something else as required. However, for the time being his customers want it. When we spoke to Scott, the store had only been trading again for a few days after the refit, but the immediate results certainly put a smile on his face. “We re-opened on the Thursday and the first weekend was banging! We were probably about 40% above ‘normal’ sales levels during coronavirus anyway, but the weekend we re-opened we were absolutely flying. I don’t know whether it was just customers coming by for a look at the new store but on Sunday we were up 100% on a pre-Covid Sunday.“ Most satisfying of all, it was the new lines that Scott added that were driving the growth. “The scooping ice cream was just crazy. We went with a company called Stew and Drew from Lossiemouth, again just to keep it local and to have a product that no one else in Inverurie was selling and they were brilliant. I had never done ice cream before, so I had no idea what to do but they guided me through the process and at the weekend it was a massive hit. It takes a little more time and effort to serve and I’ve added another member of staff to dedicate to it, but it more than pays its way. Skwishee is also doing really well. The rest of the store has been well shopped too, so it’s definitely so far so good.“ Scott is also quick to recognise that while coronavirus has been a frankly horrible period for most people, it has definitely helped his business in various ways. “We’ve obviously done well in terms of sales, but I see lots of evidence that the local community appreciates the fact that we’ve been there for them all the way through. It’s feels more like a true community store now than at any point in the last decade.“ Best of all, Scott has rediscovered his retailing mojo. “I’ve got the buzz back again,” he exclaims. “The last couple of years were tough but it feels like it did back when I first got the store in 2009. It’s exciting and I’m enjoying it. It’s great to see all my ideas and plans brought to life in the store and it’s fulfilling to be able to provide a really valuable service to the local community – and to see that they appreciate it. It’s an inspirational tale from an inspiring retailer. The only thing he needs to work on now is his timing, as he concludes: “Timing doesn’t appear to be my strong suit! When I first got this store about 11 years ago it was 2009 and the global banking system had just collapsed. And now I decided to do a major refit during the worst pandemic in living memory. Apparently I like a challenge.” www.slrmag.co.uk

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AUGUST 2020 | SLR

06/08/2020 13:09:23

Hotlines

Product News & Media Watch

Raspberry & Rhubarb Ribena squash Lucozade Ribena Suntory New Ribena Raspberry & Rhubarb squash is available now in cases of 6 x 600ml bottles, price-marked at £1.50. The launch comes at a time when squash sales in the independent and symbol channel are nearly double what they were this time last year. For more information, retailers should call Lucozade Ribena Suntory on 08702 408601 or visit www. lrsuntory.com.

Rich Tobacco JUULpods Juul Labs Rich Tobacco JUULpods replicate the taste proﬁle of Virginia tobacco, the blend found in 93% of factorymade cigarettes sold in the UK. Packs of four pods are available now in 18mg/ml nicotine strength at an RSP of £10.99. The new flavour is the ﬁrst launched in newly updated branding, featuring redesigned packaging and graphics. Retailers interested in stocking the JUUL range should call 0808 164 1301 or email uksales@ juul.com.

Doggy ice cream Cool Dog Cool Dog – a new artisan, vegan, lactose-free ice cream just for dogs – is 100% natural, with no artiﬁcial colours or flavours and is a good source of protein, potassium, zinc and calcium. It is available in a 120 ml lidded pot (RSP £2.85) or a 5-litre tub to sell in scoops, with a choice of Vanilla or Banana & Blueberry flavours. Direct sales enquiries are welcomed on 07973 954015 or info@cooldogicecream.co.uk.

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Cadbury puts new Dairy Milk bars to public vote

Cadbury has unveiled three new limited-edition Dairy Milk bars, created by this year’s Cadbury Inventor ﬁnalists. The new variants are Gillian’s Cadbury Dairy Milk Coconutty, Shannon’s Cadbury Dairy Milk Crunchy Honeycomb, and Taylor’s Cadbury Dairy Milk Out of the Blueberry. Coconutty includes milk chocolate with coconut crumble, studded with smooth white crisp pearls; Honeycomb combines milk chocolate, golden crunchy honeycomb pieces with caramel-flavoured fudge and chopped hazelnuts; Blueberry consists of milk chocolate with blueberry-flavoured nuggets with white crisp pearls. All three RSP at £1.49 for a 105g bar and are available now. The three bars are being put to the public vote, going head to head to be crowned the nation’s favourite and added to the Cadbury

Mentos Pure Fresh Gum Perfetti Van Melle Mentos has unveiled a brand-new gum format it says will “invigorate and bring excitement to the gum singles market”. Mentos Pure Fresh Gum (RSP 55p) offers a larger 2g sized chew that is 30% bigger per piece than its competitors. With a crisp outer shell and liquid ﬁlled centre, the new sugar-free gum rolls are available in four flavours: Tropical, Bubble Fresh, Fresh Mint and Spearmint. For further information call 01753 442100 or visit perfettivanmelle.com.

Dairy Milk range. Shoppers can vote online or via social media until 6 September. The winner will be announced shortly thereafter. The Inventor competition attracted 120,000 entries and the three ﬁnalists travelled to the Cadbury Innovation Kitchen in Bournville, where they worked with chocolate experts to experiment with their ingredients and make their creations a reality. Beatrice Berutti, Cadbury Tablets Brand Manager, commented: “We couldn’t be more excited for retailers to share these delicious new Cadbury Dairy Milk flavours with the nation! The new range is set to be a real driver of footfall and excitement in store for retailers across the nation, and we can’t wait to see which bar wins.” For further enquiries, retailers can telephone Mondelez on 0870 600 0699, email retailer. services@mdlz.com or visit deliciousdisplay.co.uk.

Simit JJ Foodservice JJ Foodservice has added Simit – a circular bread with sesame – to its own-label bakery range, aimed at adding interest to traditional sandwich menus. Simit is a traditional Istanbul food that dates back to the 16th century. Today, the breads are enjoyed globally, with a variety of ﬁllings. The Simits are available at RSP 99p per pack of four. Call 01992 70 17 01 or visit jjfoodservice. com to ﬁnd out more.

Sanpellegrino Classic Italian Taste Nestlé Waters Sanpellegrino has relaunched its ‘Classic Italian Taste’ range in the UK, with a premium look and feel that celebrates the brand’s flavours and Italian heritage. Two flavours – Aranciata (Orange) and Limonata (Lemon) – are available now from Booker and Bestway in cases of 24 x 330ml sleek cans. Take-home packs of 4 x 330ml sleek cans are also available. The relaunch is supported by a new shopper marketing campaign.

www.slrmag.co.uk

06/08/2020 13:09:24

Product News & Media Watch M&M’s Hi Protein bars Mars Consumer Drinks & Treats

Red Bull Summer Edition Red Bull

The UK’s ﬁrst ever M&M’s branded range of protein products consists of Hi Protein Chocolate and Hi Protein Chocolate Peanut bars. Both are available in cases of 12 x 51g bars with an RSP of £2 each. Each bar contains 15g of protein and 192 calories.The launch is Mars’ latest foray in the sports nutrition market and follows the introduction of Twix-branded protein powder earlier this year.

Decorating Icing Tubes Dr. Oetker

Watermelon flavoured limitededition Red Bull Summer Edition is available now in 250ml cans pricemarked at £1.35. With the average soft drink buyer purchasing more than ﬁve flavour variants across the last 12 months, and 41% of Energy Drink users saying they would try an exotic/tropical fruit flavour, Red Bull said the Summer Edition was a “must-stock” for retailers. For more information, retailers should email customerservice.uk@ redbull.com.

Batchelors Big Super Noodles Pots Premier Foods

Home baking brand Dr. Oetker has launched two new decorating products to add to its extensive range of home baking supplies. Dr. Oetker Decorating Icing White (50g, RSP £1.50) and Dr. Oetker Decorating Icing Gold (50g, RSP £1.50) are both available now. The White and Gold Decorating Icing Tubes have been designed to make it much easier for home bakers to add writing and intricate detail to bakes. For more information, call 0113 823 1400 or visit oetker.co.uk.

Big Super Noodles Pots is available now with a promotional price of £1 (RSP £1.39) in three flavours: Chicken, BBQ Beef and Curry. The range falls within Department of Health salt guidelines and packaging is fully recyclable. The launch follows the successful introduction of the Big Pasta ‘n’ Sauce Pots range, which has seen over 140,000 units sold since last October.

MEDIAwatch

Hotlines



#RustlersRetailHero Rustlers has launched a campaign to highlight and reward the hard work that goes on behind the scenes in the convenience retail industry. The Kepak brand will donate £10 to GroceryAid for every story of a colleague going above and beyond that is shared using the #RustlersRetailHero hashtag on its @KepakTrade Twitter feed before 14 August.

Mr Swizzels makes TV debut Swizzels has supported the launch of latest creation Great British Puds with a national TV campaign starring Mr Swizzels, the never before seen eccentric inventor of the brand’s products. The ad spearheads extensive multichannel activity including PR, social media, digital advertising, sampling and influencer outreach.

Give Yourself a Diet Coke Break Coca-Cola European Partners has unveiled ‘Give Yourself a Diet Coke Break’– a new campaign inviting people to take a moment to refresh and be kind to themselves. The ﬁrst phase of the campaign will run for ﬁve weeks and feature on TV, radio and social media with out-of-home advertising and on-pack activity set to follow later in the year.

Up for the cup Cathedral City Minis fives Saputo Dairies

Cornitos Blaze XK

Cathedral City has expanded its Cheddar Minis range with a new ﬁve-pack format, available exclusively in the convenience and discount channels now. The new, netted ﬁve-pack snacking cheese has an RSP of £1. The Cheese Snack sector has seen volume growth of 4% in the latest year. For stock enquiries, retailers should email nuneaton.customerservices@ saputo.com.

Cornitos, a natural nacho chips brand, has been designed speciﬁcally for the convenience retail sector. It is available in 70g sharing packs, price-marked at £1, from this month from United Wholesale Grocers. Four flavours, from “mild to wild” are available: Lime and Mint; Barbeque; Thai Sweet Chilli; and Peri Peri. Each is gluten-free, vegan-friendly, non-GMO and cholesterol free, with no artiﬁcial colours, flavours, or preservatives.

To make up for the cancellation or postponement of almost all of this year’s big sporting events, Del Monte Europe has launched its own ‘Fruitball Cup 2020’ campaign. Hosted on social media, the competition will see prizes awarded to the most enthusiastic and creative fans, including sponsorship for an amateur football club.

Häagen-Dazs doesn’t hold back ‘Don’t Hold Back’ is Häagen-Dazs’ new, multimillion-pound global marketing campaign designed to inspire people to live life to the full. The campaign sees the General Millsowned brand back on TV screens this summer with a new ad, which centres around hero products from Häagen-Dazs’ fruit range across multiple packaging formats.

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

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AUGUST 2020 | SLR

06/08/2020 13:09:24

Feature

Crisps & Snacks

BIG BRANDS GET BUSY TO DRIVE SNACKING GROWTH With sales already heavily inflated during lockdown, the remainder of the summer offers great opportunities to grow crisps and snack sales, and there’s plenty going on to get consumers excited about.

KEY SNACKING FACTS FROM KP SNACKS: Q 51% of shoppers say ‘flavour’ is the no.1 purchase driver when buying crisps or snacks Q 37% of shoppers cite ‘brand recognition’ as an important factor Q 22% cite ‘health’ as the most important factor when buying crisps or snacks Q 52% of consumers intend to make healthier snacking choices in the morning Q However, indulgence (26%) and taste (36%) are key drivers for snack choice by the evening Q 52% say healthy aspects of snacks such as ﬁbre, make an indulgent snack more acceptable Q 54% say smaller sized packs e.g. single portion help them control their calorie intake Q 34% of shoppers actively look for a healthy product Q 49% said that they would choose crisps or savoury snacks over a sugary option.

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ith convenience retailing enjoying arguably the longest purple patch in living memory, albeit driven by a national crisis, the remainder of this summer offers huge opportunities for retailers to further grow their sales and profits in the vital crisps and snacks category. The major manufacturers have all been busy ensuring retailers have plenty of news to share with their shoppers so everything is in place for a bumper couple of months. Bagged snacks remain a big driver of growth within convenience, playing a key role

in driving footfall. The CSN (crisps, snacks and nuts) category is worth an enormous £3.3bn [Nielsen, Jun 2020]. One of the key players in the category is KP Snacks, which has delivered £142m of growth to the category in the last five years: almost one-third of overall category growth and the biggest growth contribution of any single supplier [Nielsen 2014-2019]. In 2019 the company delivered £50m of the category’s £96m growth. The KP Snacks portfolio is currently growing in value at +5.9%, ahead of the overall category at +3% [Nielsen, Jun 2020]. www.slrmag.co.uk

06/08/2020 13:09:38

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06/08/2020 13:09:45 24/07/2020 09:44

Feature

Crisps & Snacks

PEPSICO MERCHANDISING TIPS Q Must stock ranging: stock a strong core range that covers the top selling lines which will deliver category growth – 60% of sales go through the top 50 best sellers. Q Make your ﬁxture easy to shop: blocking similar type products together, such as ridged crisps, will make it easier for your shoppers to ﬁnd what they need – 45% of purchases are made in under 60 seconds. In addition, 79% of shoppers like commonly purchased products merchandised next to each other – so in order to maximise basket spend place crisps, snacks and nuts next to categories that shoppers buy together most frequently – for example, 44% of snacks shoppers will also buy soft drinks. Q Drive impulsive purchases in store: 38% of shoppers buy something from a secondary siting. Make use of impactful branded display and POS such as stackers and dump bins to drive basket spend. Use PMPs and promotional offers to create value and customer trust, utilising brand strength to heighten appeal – 33% of shoppers see PMPs as a promotion, making them more likely to buy.

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Matt Collins, Trading Director at KP Snacks, says: “In recent months there has been a marked increase in savoury snacking occasions, with CSN being the fastest growing snack and showing up in 70% more convenience baskets during lockdown [Kantar, 2020]. Using the strength of our brand portfolio, and our ‘Local Legends’ campaign, we hope to help our retail partners adjust to new norms, reward them for their resilience and help them retain the new shoppers that they have won and bigger baskets that have been gained. “We are really proud of how our industry has responded to this crisis and in this era of uncertainty, our partnership approach is more important than ever.” The Local Legends campaign Collins refers to is a fantastic initiative that is set to both reward retail heroes of the pandemic as well as help grow the category further. It sees KP snacks offer a significant retailer incentive programme to recognise partners as ‘Local Legends’ themselves, by providing 40 separate prizes worth £1,000 each. Winners will each receive £250 worth of KP Snacks product, £250 of Love2Shop vouchers for staff and a £500 donation on their behalf to a registered charity of their choice. To enter, retailers simply need to purchase KP Snacks’ ‘Super Seven’ singles range of McCoy’s, Hula Hoops, Butterkist, KP Nuts, Skips, Space Raiders and Nik Naks via select wholesalers and distributors to be entered into a free prize draw. The prize draw will run throughout August to October with specific dates for participating customers. As part of the campaign, KP Snacks is raising awareness of GroceryAid and the support available to wholesale and

convenience retailers at a time when they need it most. The KP-sponsored trade advertising and customer communications plan looks to help link retailers and their staff with the emotional and financial support available to them via the retail industry charity. Commenting on the partnership, GroceryAid President Charles Wilson said: “We at GroceryAid are delighted to partner with KP Snacks to support our key workers who in turn are so wonderfully supporting their communities.” Collins adds: “At KP Snacks we stand firmly together with our trade partners in what has been an extremely challenging time. We want to do our bit to support this vital community both commercially and emotionally. Our job now is to help our customers to continue to thrive and prosper in the category through these ever-changing times.” As part of the campaign, KP also intends to help the beleaguered hospitality sector through a new on-pack promo that will see 5p donated to charity for every promo pack of Tyrrells crisps sold. One million limited edition packs have been produced and KP has committed to donating £50,000 to the Licensed Trade Charity to help pubs, bar and brewery staff at a very difficult time for the hospitality industry. The nationwide initiative will run from 31 August to the end of November, while stocks last, across three of the most popular Tyrrells 40g singles format flavours: Lightly Sea Salted, Mature Cheddar & Chive and Sea Salt & Cider Vinegar. Meanwhile, fellow snacking giant PepsiCo has unveiled its biggest ever summer campaign to encourage shoppers to upgrade www.slrmag.co.uk

06/08/2020 13:09:46

Feature

Crisps & Snacks

HERO 20 LINE UP

their staycations to YAYcations. For the first time in a lifetime, families across the nation may be deprived of a summer holiday, so PepsiCo has decided to do something about that with the new campaign. It will run until the end of August and aims to inspire people to find creative ways to make every moment of enjoyment count. The campaign is featured on PepsiCo £1 price-marked packs and the company is partnering with Bestway

www.slrmag.co.uk

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to run a national promotion across 60 depots giving retailers the chance to win a Ford Transit Courier Leader 1.5L van, plus some great runner-up items, all part of a prize pool worth £20,000. Retailers simply need to purchase one case from the company’s Hero20 line-up [see panel] to be automatically entered into the prize draw. With so much great activity going on, there’s plenty for retailers and customers to get excited about over the next few months.

PepsiCo’s YAYcation campaign offers retailers the chance to win a Ford Transit Courier Leader 1.5L van as well as some great runner-up items from a prize pool worth £20,000. Retailers simply need to purchase one case from the Hero 20 range at Bestway to be automatically entered into the prize draw. 1. Walkers Cheese & Onion 65p PMP 2. Walkers Salt & Vinegar 65p PMP 3. Walkers Ready Salted 65p PMP 4. Walkers Prawn Cocktail 65p PMP 5. Quavers 59p PMP 6. Squares Salt & Vinegar 59p PMP 7. Walkers Baked Cheese & Onion 8. Smiths Frazzles Crispy Bacon Snacks 39p PMP 9. Cheetos Twisted Flamin Hot £1 PMP 10. Quavers £1 PMP 11. Wotsits £1 PMP 12. Monster Munch Pickled Onion £1 PMP 13. Doritos Chilli Heatwave £1 PMP 14. Doritos Cool Original £1 PMP 15. Doritos Tangy Cheese £1 PMP 16. Walkers Cheese & Onion £1 PMP 17. Walkers Ready Salted £1 PMP 18. Sensations Thai Sweet Chilli £1 PMP 19. Walkers Max Paprika £1 PMP 20. Walkers Max Strong Chicken Wings £1 PMP

AUGUST 2020 | SLR

06/08/2020 13:09:50

Feature

Forecourts

WHAT’S NEW ON THE FORECOURT?

It’s been a challenging time for forecourts over the last few months but those with strong retail offerings have fared best. We take a look at what’s new in the sector in Scotland as it wrestles with the pandemic.

he coronavirus pandemic has been something of a mixed bag for retailers, depending upon their location and store format, and even more so for forecourt retailers. While traditional convenience stores outside of city and town centres have seen huge sales increases averaging 70%, according to Kantar, the forecourt sector has fared very differently, depending upon the strength of the retail offering at each particular outlet. Broadly speaking, forecourts relying predominantly on fuel sales have seen sales plummet by as much as 70%, while those with a strong retail offering alongside have done much better, often seeng increases in sales of 30% or more. While the pandemic has been traumatic for most, there are also clear signs that it is bringing out the best in many operators as they are effectively forced to innovate and become more adventurous.

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A recent Association of Convenience Stores conference heard that many forecourt retailers have thrived under lockdown with big increases in food and alcohol sales, even if fuel sales have gone through the floor. MFG Managing Director Steve Fox, Managing Director of MFG, said: “This is nearly a ‘plan day-byday’ situation. Things have settled in the last three to four weeks, but business is booming and we’ve still only got 60% of our customers buying fuel at the moment. As the country unlocks, the shop business could grow further. So we’ve got to look at freezer space, supply chain, and all those challenges we’ve got to face. We’ve got high-class problems at the moment.” Fox also highlighted the opportunity presented over the next year or so by the likely surge in staycations as fewer people are going to go abroad. He also believes that alcohol sales in forecourts are set for a long and sustained period of big sales, www.slrmag.co.uk

06/08/2020 13:09:53

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06/08/2020 13:09:54

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06/08/2020 11:40:11

Feature

Forecourts

arguing that even when hospitality does open it will only be at 30% to 50% capacity for a while - which leaves plenty of scope for retailers to grab a bigger slice of the pie for a long time to come.

HENDERSON GROWS Northern Irish EPOS specialist Henderson Technology is continuing to make major inroads in Scotland with a new partnership with Unitas Wholesale unveiled and a new deal with Park’s Motor Group in Lanarkshire. The Unitas partnership sees Henderson appointed as an approved EPOS supplier for the wholesale group’s customers. The partnership enables Henderson Technology to supply EDGEPoS, its award-winning global EPOS software system, to retailer stores supplied by Unitas members. Darren Nickels, Retail Technology Operations Director, said: “We are delighted to have been installing our award winning EDGEPoS system with Unitas Wholesale member sites since 2019. It has been a successful couple of years, and we look forward to building our network.” Steve Hodson, Trading Controller of Unitas Wholesale, said: “Henderson Technology can provide our members with reliable and futureproof EPOS solutions, and meet the demands of 24/7 customer service required by busy forecourts we supply. We are delighted to have formed this partnership with Henderson Technology and look forward to working with them in the future.” Last month also saw Park’s Motor Group in Lanarkshire, which operates four Keystore Express and JET branded forecourts, become the latest retailer to install the EDGEPoS

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MFG JOINS SGF Scottish Grocers’ Federation (SGF) has announced that Motor Fuel Group, the UKs largest independent forecourt retailer, has become its latest member. MGF has around 900 stations operating under the BP, Shell, Esso, Texaco, JET and Murco fuel brands. Given the growing importance of forecourt retailing, MFG will also take a place on the Federation’s National Executive. MFG’s Retail Managing Director Steve Fox said: “We are delighted to becoming a member of the SGF and we are looking forward to taking a seat on the board. It’s a real privilege to be invited to join an organisation which does such valuable work in supporting local retailers and communities.” SGF Chief Executive Dr Pete Cheema OBE commented: “This is a new and exciting partnership for both SGF and MFG which will enable us to more fully represent the forecourt retailing sector in Scotland. Having MFG on board will undoubtedly strengthen and add to the work of the National Executive and increase the influence it has across the industry.” MFG has recently been placed 8th in the league table of Britain’s 100 private companies with the larrest sales, the 19th annual Sunday Times HSBC Top Track 100.

system. Ian Mackay, Director of the Group, said: “EDGEPoS was recommended to us by a local JET retailer who had it installed in 2019 and we decided to look at the system for all four of our locations. We quickly made the decision to install EDGEPoS and it has gone live this week across the group, including the Head Office system which now gives us full control of all four sites remotely. The system meets our needs for the fuel side of our business, while providing an easily operated and efficient front-end till. The installs all ran smoothly with minimum disruption and full onsite training was provided at each site.” Darren Nickels added: “We are delighted that Park’s Motor Group made the decision to install EDGEPoS across their four sites. We are growing our EDGEPoS network across Scotland, and having Park’s Motor Group onboard is agreat additional to our network. We look forward to a long and productive business relationship with the entire team.” EDGEPoS is now live in more than 600 sites globally, and provides an all-in-one retail platform that delivers EPOS, self-checkout, home delivery and click and collect app, ESELs, and more to retailers.

CERTAS DEALER REWARDS Fuel supplier Certas Energy has continuing to grow its Certas Energy Dealer Rewards programme with the launch of a more online resources that offer free access to personal wellbeing tools, learning courses and discounts from leading brands. Certas Energy Dealer Rewards provides tailored wellbeing programmes that can help forecourt retailers and their employees to improve their personal wellbeing and navigate these challenging times. The platform’s online learning resources offer hundreds of courses to support professional growth, with categories including Business & Management, Health & Psychology, Technology and many more. The programme is available to all Gulf and Pace dealer employees at no additional cost. Richard Billington, Retail Director at Certas Energy, commented: “Our team is working non-stop to find creative solutions to support our dealers and their workforce throughout and beyond this national emergency. What’s been difficult for many people is finding new ways to spend the additional hours we’re all at home - whether it’s business as usual or not. “That’s why I’m delighted to launch Certas www.slrmag.co.uk

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Feature

Forecourts

Energy Dealer Rewards to help our retail network and their teams get the best from this extra time at home. “With its wide range of learning and wellbeing tools, we hope our colleagues will find the platform to be a useful resource for personal and professional development as we prepare for the time when we can all return to normality.”

MFG RENEWS PAYPOINT PayPoint and Motor Fuel Group (MFG) have renewed their partnership that will see the deployment of an EPoS-integrated PayPoint solution into 900 locations, and the continuation of Collect+ parcel services in almost 500 stores. In renewing and reshaping its partnership with PayPoint, MFG expects to benefit from an improved customer and operational experience. Tony Walker, Trading Director at MFG, said: “It’s great to be able to offer our stores and their consumers the quality services that PayPoint provide and this reflects our commitment to improving customer satisfaction. This is a partnership that continues to make a lot of sense.” Danny Vant, Client Services Director at PayPoint, said: “This is great news for PayPoint and Collect+. MFG is a really important part of the PayPoint and Collect+ networks, and the move to an EPoS integrated solution will mean a better experience for the stores and consumers alike.”

GULF PARTNERS WITH MCLAREN McLaren and Gulf Oil International have announced a multi-year strategic partnership which will see Gulf partner with worldfamous Formula 1 race team McLaren Racing and luxury supercar company McLaren Automotive. The partnership reunites two renowned brands that have a long-standing and successful history together and, say the companies, symbolises a united ambition to use both brands’ innovation and class-leading capabilities to refine a winning formula, both on the track and on the road. From 2021, Gulf will become the preferred lubricant supplier to McLaren Automotive. The partnership was launched at the recent British Grand Prix where the Gulf brand was integrated into the McLaren Formula 1 team. The logo will be worn by McLaren F1 personnel throughout the 2020 F1 season, including via race drivers Lando Norris and Carlos Sainz and the McLaren pit crew. Gulf branding will also appear on the engine covers and wing mirrors of the McLaren MCL35 race cars. www.slrmag.co.uk

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Feature

Low & No Sugar Soft Drinks

HOW LOW AND NO CAN YOU GO? Soft drinks category growth is now dominated by low and no sugar products, with the major manufacturers offering plenty for retailers and customers to get stuck into.

MERCHANDISING TIPS FROM BRITVIC Q SHOWCASE PERMISSIBLE OPTIONS – Ensure customers are aware of your low and no ranges with POS to call out health credentials. Stock alongside full sugar counterparts to encourage shoppers to make the switch. Q HIGHLIGHT TOP PRODUCTS – Give best sellers additional space and prime positions. Double face if you can. Q PAIR WITH FOOD – Link your low and no soft drinks range with a healthy foodto-go offering to encourage cross-category sales.

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ince long before the ‘sugar tax’, the trends in the soft drinks category have all been heavily towards low and no sugar products, with more than half of new propositions launched in 2019 low or no sugar. Indeed, of the 11 NPD lines that achieved sales of more than £1m, eight were under the sugar tax threshold. It’s no surprise then that zero sugar variants are growing at almost 21% [IRI, Sep 2019]. That trend only looks to be accelerating with Red Bull’s latest launch being completely free of sugars. As the UK’s number one energy drink, the company is continuing to help grow the category with the launch of Red Bull Zero. Red Bull Zero delivers a similar taste to the classic Red Bull Energy Drink but with no sugars, offering a fresh alternative to Red Bull Sugarfree. Demonstrating its understanding of consumer needs and attitudes, the reformulated Red Bull Zero offers shoppers more choice for those moments where they’d rather have less sugar. With 65% of people now proactively trying to lead a healthy lifestyle, Phil Sanders, Out of Home Commercial Director at Britvic, sees a big role for soft drinks in helping them achieve that aim: “The categories that have significantly outperformed the market are those that have switched shoppers from

standard to sugar free alternatives, and also gained shoppers from other categories.” Sanders highlights Robinsons Refresh’d as a great example of the company’s commitment to this trend. He says: “Containing 100% naturally sourced ingredients and no added sugar the Refresh’d range has recently undergone a pack update to create strong stand out on shelf and showcase it being low in sugar. With 42% of UK households buying the Robinsons brand and, as the number one squash brand, this refresh will only leverage it further.” Matt Gouldsmith, Channel Director, Wholesale at Lucozade Ribena Suntory also advises retailers to think carefully about their low and no offer, suggesting Ribena Light and Lucozade Zero, worth £48m, as great ways to capitalise on the ongoing trend towards lower sugar choices. Another brand well worth backing is Irn-Bru XTRA, which has delivered £13m of sales for Scottish retailers this year and offers choice within the fast growing low calorie carbonates sector. Adrian Troy, Marketing Director at Barr Soft Drinks, says: “We know the way people live is changing – health is becoming more important and, especially with younger shoppers, we’re seeing an increase in demand for lower calorie products.” www.slrmag.co.uk

06/08/2020 13:10:13

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RED BULL ZERO 250ML. NEW TASTE. NEW OPPORTUNITY. Zero is the fastest growing sub-category in Soft Drinks. Add your new must stock from the No.1 Energy Drink brand and see sales fly. Source: IRI Infoscan, Total Coverage, Value Sales & Fastest Growing Sub-Category 52 w/e 28.03.20.

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06/08/2020 13:10:19 23/07/2020 17:24

Feature

Nicotine

THE GROWTH OF THE ‘NICOTINE PORTFOLIO’

There is increasing evidence that more and more shoppers are choosing different nicotine products to suit different situations and need states, a trend with big implications for retailers.

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perfect storm of coronavirus, the menthol ban in May and the continued decline of the cigarette category has led to significant changes in the ways shoppers choose to consume nicotine, a major shift that has serious implications for local retailers in Scotland. Duncan Cunningham, UK Corporate Affairs Director at Imperial Tobacco & blu, comments: “As adult smokers increasingly

shift their purchasing habits between segments, they are expanding the range of nicotine products they buy to cater for different occasions. This has led to a rise in the number of dual users buying both factory made cigarettes (FMC) and roll your own (RYO) products, as well as moving into vaping and new, emerging segments such as nicotine pouches. “It’s really too early to say what impact the menthol ban has had on sales. Now the www.slrmag.co.uk

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Feature

Nicotine

ZYN ADDS FLAVOURS Smoke and tobacco-free nicotine punch brand ZYN has added two new flavours to its portfolio in two strengths. Discreet and convenient, the pouches are easy to use anytime and anywhere. The two newest additions are Espressino and Spearmint. As the name suggests, Espressino delivers a taste of freshly roasted coffee in combination with chocolate, nougat and vanilla. Spearmint has a mellow and spicy character with distinct notes of spearmint. Its pouches contain only 1.5 mg nicotine, making it the lowest strength option available.

GREEN FILTER INNOVATION One of the more creative solutions to the challenges posed by the menthol ban has been Imperial Tobacco’s Green Filter range which has been helping retailers maintain menthol customers and grow their sales. Launched across five of Imperial’s leading brands, the Green Filter range includes the same tobacco blend but also features a white-tipped firm filter that retains its shape and structure until the end of the smoke and delivers a smoother, more consistent smoking experience. The new lines also featurethe addition of special Reduced Smoke Smell paper which is designed to reduce the linger of smoke smell on clothes or fingers. The Green Filter variants were launched across JPS Players, Carlton, Windsor Blue, Richmond and Lambert & Butler ranges.

menthol ban is in effect, it will take time for shoppers to settle on the nicotine products most suited them. In the meantime, it’s likely they’ll be looking to trial products from different segments so it’s important to stock a broad range of products across all the segments to ensure they have ample choice available.”

PORTFOLIO APPROACH As consumers move towards more of a ‘nicotine portfolio’ approach, one thing that Cunningham sees as remaining consistent is the demand for value. “Shopper purchasing decisions remain heavily influenced by this constant drive for value,” he says. “We expect the menthol ban to accelerate this trend further, with smokers seeking out different nicotine solutions that suit their lifestyle.” Another possible consequence of coronavirus is an increased interest in health and wellness among shoppers. Switching out of tobacco products into tobacco-free nicotine products is one of the most obvious ways that shoppers can make a positive impact on their health. John Patterson, Juul Labs UK Sales Director, comments: “Smoking related diseases are responsible for almost 96,000 deaths in the UK annually [ONS, 2020] and smokers should first and foremost try and give up combustible cigarettes entirely – those who have not successfully quit should completely switch to potentially less harmful alternative nicotine products.” There are still almost seven million smokers in the UK, a huge market for retailers to target with a less harmful solution. “We welcome the continued decline of UK smoking rates,” says Patterson. Juul Labs and the vaping category exist to help end the era of combustible cigarettes. Vaping products can play a pivotal role in achieving it.” With market primed for the next stage of its evolution, stocking a full range of products from the different nicotine segments is of key importance for retailers. However, it’s probably even more crucial that retailers and their staff really understand the products they are selling so they can offer informed advice to their customers and help them find the right product for their needs. While it’s still a little early to get a handle on the impact of the recent menthol ban, it seems reasonably clear that the predicted huge spike in demand for vaping products hasn’t quite materialised. The early indications suggest that many smokers simply shifted into plain versions of the tobacco brand they already smoked.

POD MOD GROWTH That trend may evolve and change over time 46

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06/08/2020 13:10:40

Feature

Nicotine

CATEGORY TIPS Imperial Tobacco and blu offer retailers the following practical tips for their vaping and nicotine category: ONE SIZE DOESN’T FIT ALL: every store and its customer base is completely unique so there’s no one-size-fits-all approach to follow. It’s important to consider various factors when deciding your range to ensure it meets the needs of your specific customers. This includes everything from the gantry and countertop space available to what products are proving popular with customers (based on EPOS data where possible), alongside the latest market trends. BROAD RANGE: stock as broad a range as space allows and then fine tune according to customer feedback and sales. Retailers who can remain agile will be in the best position to cater for their customers and grow their nicotine sales as a result. OPEN AND CLOSED: stock at least one open and one closed system from a big brand. Pod-mod systems should be a focus as they have become increasingly popular thanks to their ease of use and flexibility. LIQUID SUPPORT: the range of devices on offer should always be supported with a strong portfolio of e-liquids, especially fruit and menthol flavours, in a variety of nicotine strengths, including nicsalts, to cater for all tastes. The best-selling flavour in Scotland is menthol so this as a muststock for all retailers. ENGAGE WITH CUSTOMERS: proactively engage with shoppers at the till point to help to provide excellent customer service and to advise customers on the different products and any supporting promotions available.

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but one trend that has remained constant in convenience retailing in the last couple of years is the rise of the ‘pod mod’ device. Cunningham comments: “Overall, vaping is on the rise. This is driven by a range of factors, from the availability of easier to use products such as myblu’s pod-mod device to increasing numbers of consumers who are looking to switch to better alternatives like vaping.” As the vape market continues to grow, pod-mod systems have become increasingly popular thanks to their ease of use and flexibility. Quick to charge and hassle-free to use, the various ‘click and go’ systems on the market make it simple and clean for consumers. JTI capitalised on this growth in pod mods in May by expanding its Logic Compact Intense range with new menthol flavours: Berry Mint and Polar Menthol. Nick Geens, Head of Reduced Risk Products at JTI UK, comments: “With both existing adult vapers and smokers looking for more choice when it comes to menthol flavours, we’re pleased to be extending our Logic Compact Intense range to help with this demand. Retailers should look to offer a wide range of post-ban menthol alternatives to cater for their customers’ needs – and vaping is just one part of this.” Available in 18mg formats, the new flavours pods have an RSP of £5.99. While pod mods are in growth, it is still recommended that retailers stock at least one ‘open’ system (devises that require users to refill them with e-liquids) and one ‘closed system’ (pod mods and their variants), all from big brands that shoppers know and trust. A broad range of e-liquids and pods in a variety of flavours and strengths is also a necessity to ensure repeat purchases. With the basics in place, Cunningham reckons retailers could do a lot worse than emulating the merchandising tricks of their specialist vapeshop cousins. He explains: “Many specialist vape stores have invested significantly in their store interiors to ensure they offer maximum consumer appeal. While they stock an extensive range of products, they are often carefully displayed to promote a minimalist look, featuring sleek arrangements of products to draw consumers in from the www.slrmag.co.uk

06/08/2020 13:10:45

For tobacco traders only. Does not contain menthol.

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06/08/2020 13:10:52

Feature

Nicotine

GET MINTED WITH VYPE BAT UK vaping brand Vype now offers a wide range of mint flavour ePods to help retailers target menthol and capsule smokers after the introduction of the menthol tobacco ban in May. The latest flavours include Peppermint Tobacco, Just Mint and Creamy Mint, which have an RSP of £29.95 for Vype ePod Cartridges and £35.94 for Vype ePen 3 Pods. BAT UK has also brought to market limited edition starter kits for Vype ePen 3 and Vype ePod for smokers who want to use the menthol ban as an opportunity to switch. Fredrik Svensson, BAT UK & Ireland General Manager, said: “The ban on menthol cigarettes has left many adult smokers without their preferred product. That’s why it’s crucial that we are able to accommodate those looking for alternatives, particularly consumers who see the ban as an opportunity to make the switch to vaping. “Our expanded portfolio means we can offer UK nicotine users a variety of alternatives developed and tested to suit their tastes and preferences, and we want menthol smokers to know that our awardwinning alternatives are out there now. This evolution offers a signiﬁcant sales opportunity for retailers who are prepared and react ahead of the ban. BAT UK hopes all these new innovations will continue to help our retailers to thrive.”

“We expect the menthol ban to accelerate the value trend further with smokers seeking out different nicotine solutions that suit their lifestyle.” DUNCAN CUNNINGHAM, IMPERIAL TOBACCO & BLU

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high street and drive footfall into the stores. Therefore, any independent retailers looking to compete and truly position themselves as a destination store for vapers should consider investing in their displays and range to offer a similar shopping experience for their customers.” Many of the leading vaping companies offer a range of merchandising solutions to help achieve this look and it’s worth talking to reps to find out what’s available.

NICOTINE POUCHES One of the potentially most interesting new nicotine delivery products for both customers and retailers are nicotine pouches. Smoke and tobacco-free, the products are unique in that, unlike vaping products, they can be used by customers any time and anywhere. The UK’s leading nicotine pouch brand is JTI’s Nordic Spirit which was launched into the convenience channel last year. In that time the brand has taken over 90% market share [IRI, May 2020] and continues to develop the nascent category with a recent brand refresh, a new flavour and the launch of price marked packs (PMPs). Already available in Mint and Bergamot Wildberry, Nordic Spirit has extended its range with an Elderflower variant in 6mg and 9mg strengths, offering more choice to existing adult smokers and vapers. The addition of PMPs is geared to make purchasing decisions easer for shoppers, and to help drive sales. As well as the new flavour, key changes to the design include enlarging the brand name, in particular ‘Nordic’, to emphasise the product’s deep connection to its Swedish heritage. Additionally, the varying strengths are now represented with four hexagons in line with other products in the category for consistency and ease for the customer. The white grain background has been removed, for clearer branding and a fresh new look. Whilst the colouring for the Mint flavour remains blue, the Bergamot Wildberry has had a colour change from green and blue to pink and yellow. Stephane Berset, JTI UK Head of Marketing, comments: “Since its launch in 2019, we have seen Nordic Spirit go from strength to strength as more adult smokers and vapers look for alternative nicotine products. This rapidly evolving category, already worth over £380k a month [IRI, May 2020], presents retailers with a huge profit opportunity, and we would urge retailers nationwide to incorporate Nordic Spirit into their offering as the category continues to flourish.” All three lines carry RSPs of £6.50 for a tub of 20 pouches. In the vaping and nicotine categories, one www.slrmag.co.uk

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Nicotine

of the simplest and most effective things retailers can do simple things to drive sales is to simply enquire they promote vaping and nicotine products or offers in and around their stores, for example using PoS and countertop units to drive visibility.

TRAINING

JUUL LAUNCHES RICH TOBACCO FLAVOUR Juul Labs is adding a new tobacco flavour to its JUULpods range this month to offer adult UK smokers a wider range of alternatives to combustible cigarettes. Rich Tobacco JUULpods, which replicate the taste profile of Virginia tobacco, will be available in 18mg/ml nicotine strength. JUUL is the UK’s best-selling vape brand [IRI, May 2020] and Rich Tobacco is the latest addition to its UK portfolio of flavours which includes Glacier Mint, Menthol, Mango Nectar, Golden Tobacco and Alpine Berry. John Patterson, Juul Labs UK Sales Director, said: “Juul Labs’ focus is to provide adult smokers with an alternative to combustible cigarettes, and combating underage use of our products.” In the UK, Virginia tobacco blends account for over 90% of factory-made cigarettes sold [IRI, May 2020]. Although annual UK smoking prevalence rates continue to decline, dropping from 14.7% to 14.1% of the adult population, Patterson noted there are still 6.9 million smokers nationally [ONS, 2020] and said the introduction of further alternatives may offer adult smokers more options to transition away from combustible cigarettes. Patterson continued: “We welcome the continued decline of UK smoking rates. Juul Labs and the vaping category exist to help end the era of combustible cigarettes. As smoking remains the leading cause of preventable death around the world [WHO, May 2020] and responsible for one death every six minutes in the UK [ONS 2020] this goal is critical, and vaping products can play a pivotal role in achieving it.“ Rich Tobacco will complement both Golden Tobacco flavour JUULpods, the UK’s number one selling tobacco closed pod refill by value [IRI, Mar 2020], and Menthol flavour JUULpods, which launched in May, and is the best- selling closed pod refill pack in many key accounts [IRI, May 2020]. The new flavour will be the first launched in newly updated JUULpods branding, featuring redesigned packaging and graphics, which will be rolled out across the JUULpods range over the coming months. Rich Tobacco JUULpods are available across all retail channels and the juul.co.uk website with a 4-pack on sale at a RSP of £10.99.

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“Probably the most important thing of all is education,” says Cunningham. “If retailers and their staff know the products well so they can talk comfortably to adult smokers about them in answering any questions they may have, this will pay off massively in terms of sales and repeat visits.” There are various ways to train staff. First and foremost, it’s essential they know what products are stocked in store and where they are positioned on the gantry, so they easily find them. This is especially key for bestselling lines so they can always keep an eye on stock levels to avoid running out. “One particularly effective way of training staff on vaping products and nicotine products is through running product demonstrations using samples of the devices and products being sold in store,” concludes Cunningham. “Allowing staff to handle the products themselves and get to know the different components using demonstration models, or sample liquids and products, will really help them understand more about how they work, so they can pass this information onto customers.” Of course, similar demonstrations can also be a great way to educate customers before they buy so they leave the store fully informed on how to use a product. Encouraging staff to read up on the latest category developments and news in features such as this in the trade press is a really great way to increase their understanding of the key trends and new products.

www.slrmag.co.uk

06/08/2020 13:11:00

New Rich Tobacco JUULpods are now available. Rich Tobacco JUULpods deliver the rich flavour of Virginia tobacco with earthy notes and a smooth finish. • Virginia blend cigarettes account for over 90% of market sales.* • JUUL already offers the No. 1 Closed System Tobacco flavour pod on the market.** • JUUL is the No. 1 vaping brand in the UK.***

Scan here to add Rich Tobacco JUULpods to your basket.

10840048214819

To become a JUUL stockist, contact uksales@juul.com.

Designed for adult smokers.

Not for sale to minors. JUUL is an e-cigarette. This is an age-restricted product and age verification is required at sale. TM and © 2020 JUUL Labs, Inc. All rights reserved. *IRi Virginia Blends Volume Share of Total Cigarettes – MAT to 24th May 2020. **IRi Value sales by Month across Pods, Capsules and E-Liquid Pods – March 2020 vs March 2019. ***IRi Value sales in tracked channels, 7 weeks to 24th May 2020.

WARNING: This product contains nicotine which is a highly addictive substance. SLR August 2020.indd 53

06/08/2020 13:11:02

UTC

ANGELS AT HAMPDEN?

An avid, if perennially disappointed Scotland fan, UTC was befuddled to receive a press release into his inbox this month announcing the launch of a new drink called Hampden Angels. Of all the things that the auld boy has called the Scotland team over the years on his many visits to Hampden, ‘angels’ certainly hasn’t been one of them. Turns out though that a new Hampden Angels Calvados takes its name not from the home of so many heartaches and hangovers on the south side of Glasgow but from the Hampden Distillery in Jamaica. Apparently the new Calvados from a mob called Christian Drouin was aged in American oak barrels which had previously contained rum at a distillery on the sun-kissed Caribbean island that shares its name with the rain-washed football stadium in Scotland. The new beverage is known as Experimental, a word that could equally be applied to most Scotland managers’ approaches to team selection over the decades. Didn’t stop the auld boy asking for a free sample at any rate, even though he has no idea what Calvados is. As he adroitly pointed out, it’s 40% abv and it’s £90 a bottle. How bad can it be?

BARLINNIE BURGER, ANYONE?

As we all know, home delivery has rocketed over the last few months - but UTC’s gob was smacked by the news that a prison in London has now started offering a take-away meal delivery service. Brixton prison is allegedly cooking, selling and delivering meals to adventurous residents of the local area, all prepared by inmates. Apparently the amusingly named Clink service is designed to help reduce re-offending rates, which is nice. Being in London, the menu features delicacies like “sun-dried tomato and parmesan arancini with rocket pesto” as a starter - a snip at just £3.95 - and “sea bream en papillote with Mediterranean vegetables and salsa verde” as a main course for a very reasonable £9. If the service makes its way to Scottish prisons, UTC suggested that a “more traditional” menu might be a safer bet. Anybody up for a Barlinnie Burger? Or some Polmont Pakora, maybe?

A WEEK IN MOTHERWELL? As every long-in-the-tooth hack knows, it’s all in the timing. So when the old boy was at a loose end the other day and decided to have a nose through his inbox, his attention was drawn to some YouGov research that had just been published on the safest places in the UK for staycations. With most folk ditching the annual pilgrimage to Alicante this year, staycations are now the done thing. What caught the old boy’s eye, bearing in mind that he’s an avid Hamilton Accies fan, was a frankly bewildering (to him) recommendation that Motherwell, of all places, was a ‘top destination’ for a staycation. I know, bear with us. According to YouGov, Scotland is the UK’s safest country for a staycation thanks to the lowest crime rates. Eyebrow-raisingly, Motherwell and Paisley apparently recorded no crimes in April 2020. And Motherwell has Strathclyde Park, although UTC insists that half of Strathclyde Park is actually in Hamilton. This is where the timing thing comes in, unfortunately. A matter of days after YouGov issued its data, Motherwell was then also revealed as being a great place to catch coronavirus after an outbreak at a call centre in the town. Millport it is, then.

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www.slrmag.co.uk

06/08/2020 13:11:09

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06/08/2020 13:11:10

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