SLR December 2018 by 55 North

DECEMBER 2018 | ISSUE 188

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It’s all change at new-look CJ Lang

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DECEMBER 2018 | ISSUE 188

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The top 5 retail trends set to shape 2019 p12

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December 2018

Contents

Contents ISSUE 188

NEWS p6 p7 p8 p10 p12 p22 p24 p26

Alcohol Marketing Advertising ban proposed as Scottish government gets tough with problem drinking. Health Food Standards Scotland wants businesses to ‘lead the way’ on cutting back junk food. Trading McColl’s boss admits 2018 was a “difficult” year for the business, as it posts a lacklustre set of figures. Vaping The category receives a further boost as MPs call for Parliament to turn vape friendly. News Extra Retail Trends The IGD reveals the five biggest retail trends that it predicts will shape 2019. Product News Another month, another complete food-togo solution – this time from Kepak. Off-Trade News Heineken has some Christmas tips for retailers, while Kahlúa takes to the streets of Edinburgh. Newstrade Troubled Johnston Press finds a buyer and DC Thomson has an editorial shake-up.

INSIDE BUSINESS p27 Research Digest A new survey reveals the majority of shoppers have genuine concerns about the long-term future of independent retailers. p30 Getting More Out Of Epos The first of a new six-month series of ‘hands-on’ articles that offer a comprehensive, easy-to-follow guide to your Epos system. p34 Healthy Living The SGF Healthy Living Programme is set to launch into 2019 with renewed energy and vigour. p36 The Big Interview New CJ Lang CEO Colin McLean shoots the breeze with SLR about the winds of change blowing through the Spar Scotland wholesaler. p39 Hotlines The winner of Swizzels’ Sweetest Invention competition is revealed, plus a host of other NPD. p54 Under The Counter Christmas comes but once a year, and when it does UTC is still a miserable old git. FEATURES p40 What’s In Store As the year draws to a close, a panel of industry experts make their predictions for 2019.

ON THE COVER p16 Cloud Chasing A packed audience gathered last month to hear industry experts explain how the local retailing sector could breathe new life into the vaping category.

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DECEMBER 2018 | SLR

News MARKETING Advertising ban proposed as Scottish government gets tough with problem drinking

Filshill boosts England development team JW Filshill has bolstered its presence in the north of England with the appointment of Graham Cairns as Regional Development Manager. Cairns, based in Darlington and covering north-east England, joins the delivered wholesaler after a spell with Beanies Flavoured Coffee, immediately prior to which he had been with Palmer & Harvey for six years. Filshill sees the north of England as a key strand of its long-term strategy to grow its KeyStore fascia.

Business unites against proposed rates levy

Pre-watershed booze ads ban in pipeline for Scotland The Scottish government has unveiled plans to ban alcohol advertising on TV before 9pm. The proposal is part of a 20-point action plan to cut down the nation’s drinking, especially among children and young people. The Scottish government will ask its UK counterpart to amend legislation, or else devolve the necessary powers to Holyrood. The Alcohol Framework 2018: Preventing Harm plan also calls on alcohol producers to place healthrelated information on packaging.

The Scottish government will consider a “mandatory approach” if manufacturers fail to meet a voluntary September 2019 deadline agreed between the UK government and the Portman Group on labelling. Speaking at the launch of the plan, Public Health Minister Joe FitzPatrick also hinted at raising the 50p minimum price per unit for alcohol. He said: “We’ve got 14 per cent higher consumption of alcohol than the rest of the UK – and the UK is about the worst in western Europe, so we have our issues that we need

to resolve. I don’t think there’s any clear evidence as to why Scotland’s relationship with alcohol is so challenging but it is, so we have to do something.” According to the NHS 23,494 people were admitted to hospital in Scotland a total of 35,499 times in the last year because of alcohol. The figure is a slight improvement on the 24,060 people admitted 36,235 times in 2016/17. People from deprived areas were seven times more likely to be harmed by booze than those in the wealthiest areas.

Twenty-one of the country’s leading business organisations have written a joint letter to Scottish Finance Secretary, Derek Mackay MSP, urging him to scrap the proposed new business rates levy on out of town premises. The 21 organisations represent a wide crosssection of Scottish industry including retail, manufacturing, energy, commercial property, construction, transport, leisure and tourism. Signatories included SGF Chief Executive Pete Cheema, SRC Director David Lonsdale and SWA boss Colin Smith.

JTI has community outreach down to a T To celebrate its 10-year relationship with charitable partner Contact the Elderly, JTI recently teamed-up with wholesalers and retailers nationwide to host ‘The Big Tea Party’ – a series of events for over 380 isolated, elderly people. Working alongside Contact the Elderly, a total of 22 tea parties were organised. JTI volunteers planned the events, while its wholesale trade partners and independent retailers donated goods, such as tea, coffee and biscuits, to help make the tea parties happen, as well as gifts of boxes of chocolates for guests to

PARCEL COLLECTION Moblle app frees retailers from their PayPoint terminal

MEAT ALTERNATIVES

PayPoint introduces new Collect+ app

Quorn doubles production capacity

PayPoint has launched Collect+ StoreScan, a brand new, free-to-use app that enables retailers to process parcels directly from their mobile device. Available now on iOS and Android, Collect+ StoreScan means that retailers no longer have to process parcel transactions solely via their PayPoint terminal. Parcel delivery and customer collections can be processed from anywhere in the store, helping to free valuable counter space and reduce customer waiting times. Up to 10 mobile devices in one Collect+ location can use the app concurrently and it also works when the PayPoint terminal is being operated by another user. The new app launched as PayPoint announced that over 11,000 stores are now using its PayPoint One allin-one retail services solution. This means well over half of PayPoint’s independent retailers have now converted to the new platform. PayPoint’s legacy yellow terminal will be retired next year. The company also revealed in an Interim Results announcement that it made a pre-tax profit of £25.3m

for the six months to September 30, 2018, a rise of 4%. Service fee revenue from PayPoint One grew by 39.8% in the period, contributing to a 3.2% increase in underlying net revenue. The period also saw 11 new UK bill payment and top-up clients go live, with a further six new clients secured including challenger bank Monzo, which has over one million customers. In parcels, PayPoint’s new carrier partnership with ebay is now live in 2,500 sites and it remains focused on delivering at least two additional carriers in 2019. The company has also extended its ‘refer a retailer’ promotion until January 31. The promo gives retailers up to £50 credit for every friend who installs a PayPoint terminal.

Quorn has officially opened the world’s biggest meat alternative production facility at its site in County Durham. The factory expansion of 9,500sq m doubles production capacity of Quorn’s core products, adding approximately 20,000 tonnes per annum. It is part of a £150m investment, reflecting an increase in flexitarian and vegan diets, and the fact that the UK is the most advanced meat-free market in the world. The production facility will produce 1.33 million packs of Quorn products per week, equivalent to the meat produced by 1,600 cows. The efficiency improvements the expansion will deliver will help Quorn continue to reduce its carbon emissions, already down by 35% since 2012. The move follows Quorn’s elimination of 297 tonnes of non-recyclable plastic from its supply chain and the pledge to achieve 100% recyclable, reusable or compostable packaging by 2025.

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News HEALTH Food Standards Scotland wants businesses to ‘lead the way’ on junk food

Watchdog wants your ideas for healthier food-to-go Food Standards Scotland (FSS) has launched a consultation on proposals to improve food eaten outside of the home. It says such foods are “skewed towards less healthy options, which are often high in calories”. The public sector body seeks views from the public, the out-ofhome food sector and all interested organisations on proposals to give the people of Scotland healthier options when they’re eating out. The consultation is open for responses until February 28, 2019. Ross Finnie, Chair of FSS, said: “We recognise the out-ofhome sector makes an important contribution to the Scottish economy, but it doesn’t always support a healthy diet.

Two in three Bolton retailers found selling illegal tobacco A mystery shopping operation carried out by Japan Tobacco International (JTI) in Bolton has revealed the extent of the illicit tobacco trade in the area, with almost two out of three stores visited found to be selling illegal tobacco. The operation found 23 out of the 37 stores (62%) visited were found to be selling illegal tobacco and that counterfeit 50g packs of hand rolling tobacco were on sale from £4 (versus around £22 for genuine products).

“Our proposals aim to shift the food choices available when we’re eating out towards those that are healthier and have lower calories. We welcome suggestions on how businesses could lead the way to make the necessary changes.”

Public Health Minister for the Scottish government, Joe Fitzpatrick – who also recently launched an action plan to reduce Scotland’s drinking – said any measures introduced would be reasonable and proportionate.

New website tries to revive the high street A new website has launched with the aim of getting shoppers back on to the high street to their boost local economies. The Town and City site lets people purchase gift cards

CRIME Shopworkers union demands action in wake of damning survey results

Usdaw calls for greater police funding to ﬁght retail crime Retail trade union Usdaw has called on the Government to increase funding and resources for the police to help them tackle a rising tide of attacks on shopworkers and theft from shops. Interim results of Usdaw’s Freedom From Fear Survey show that during 2018 over 230 shopworkers were assaulted every day, which is an increase of more than 40% on 2016. In October the Office for National Statistics reported a further increase in police recorded incidents of shoplifting continuing the trend of a 32% increase over the last decade. Additionally, the BRC reported a doubling of violence against shop staff in its annual Retail Crime Survey. The ACS reported a 65% increase in thefts from c-stores, also finding that challenging shop thieves is the most common trigger for violence and verbal abuse. The Suzy Lamplugh Trust found that two-

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thirds of UK retail workers have been exposed to violence or aggression in the workplace. Paddy Lillis, Usdaw General Secretary, said: “The statistics from all sources are shocking and show that the need for urgent action is undeniable. While there are many factors behind retail crime, the effects of the severe cuts in police funding and the loss of over 20,000 police officers cannot be ignored. The clear message to Government is they need to do more. A properly funded police service is essential to halt the dramatic rise in retail crime and the impact it has on our members. “Police resources are now so stretched we have some chief constables reporting that their officers can no longer attend theft from shops incidents and they are asking shopworkers to detain shoplifters.”

WHOLESALERS

specific to one of 18 town

‘Cracking deals’ from Bestway

centres across the UK including

Bestway Wholesale has launched a cracking deals campaign with special prices on leading brands, in its biggest Christmas campaign ever. The campaign runs to the end of December and is supplemented by a trade event this week, with ‘Super-Deals’ in its Bestway and Batleys depots, and online, for the company’s trade customers on these dates. Tony Holmes, Sales Director of Bestway Wholesale, said: “Christmas is a time of giving and for us this means giving extra support to our customers during what is a busy and competitive trading period. “We wanted our retail customers to have access to special deals from October, so they could spread the cost of the festive season and to stock products early, ahead of other retailers.”

Mastercard network, the gift

Edinburgh, Elgin, Glasgow and Perth. Making use of the existing cards can be spent at a wide range of participating businesses including convenience stores. Crucially, the cards can’t be used online, so recipients must physically head into town to make a purchase.

AG Barr’s Barratt is new IGD boss Grocery industry research and training charity IGD has named Susan Barratt as new CEO, effective from January 1, 2019. She succeeds Joanne DenneyFinch who stepped down in September 2018. Currently a Non-Executive Director of Barr Soft Drinks and Higgidy, Barratt has been an IGD Trustee since 2016. She has a breadth of both national and international experience across FMCG, most recently as CEO of Natures Way Foods.

DECEMBER 2018| SLR

News TRADING Convenience chain still struggling after P&H demise

Sporting Lunch raises half a million for GroceryAid Over 1,200 industry colleagues attended the sold out GroceryAid Sporting Lunch on November 2, raising a record £515,000 for the charity. This money will help fund the December financial grant payments that the charity makes to over 2,200 colleagues in need. Hosted by John Inverdale and Katharine Merry, guests were entertained by a speech from IAAF President Lord Sebastian Coe. Following this they enjoyed sporting tales and banter from English sport double act Mike Tindall and Alan Shearer.

Britvic joins ﬁght against diabetes Britvic and Diabetes UK have forged a new three-year partnership to actively support those living with and at risk of diabetes. Britvic aims to raise £500,000 to directly improve the lives of

A ‘difficult’ year ends with flat sales for McColl’s McColl’s boss Jonathan Miller admitted “2018 has been a very difficult year for the business”, as the convenience chain posted a set of uninspiring results in its latest trading update. The Q4 and full year numbers cover the 13 and 52 weeks ending November 25 and show a 0.5% drop in total revenue for the fourth quarter of 2018 but a rise of 8.3% for the full year. The latter reflected the annualisation of the acquisition of round 300 c-stores from the Co-op in 2017. Total like-for-like (LFL) sales remained flat at 0.0% in Q4, an improvement on Q3 supported by a strong performance in tobacco. Full year LFL sales down were down 1.4% however. The group completed 59 convenience store refreshes this

year – delivering average sales uplifts above 5% – and acquired a further 11 new stores over the same period, while at the same time getting rid of 66 under-performing newsagents and smaller c-stores. McColl’s said it had to speed up the rollout of Morrisons supply to 1,300 stores following the chaos caused by the collapse of Palmer & Harvey in November 2017. It said this

created “significant challenges” and had severely disrupted plans for the launch of the Safeway brand. Considering these challenges and continued difficult trading conditions, adjusted EBITDA for FY18 is now expected to be around £35m. Citing cost pressures like the National Living Wage rise and ongoing market uncertainty, McColl’s expects adjusted EBITDA for FY19 to be no more than a “modest improvement” on this year’s number. Looking ahead, Jonathan Miller said: “We expect competition in the grocery retail sector to remain intense and we face into significant cost pressures. Important to our future success will be continuing to develop our partnership with Morrisons, alongside our plans to enhance our neighbourhood convenience offer.”

children and families affected by diabetes, helping to ensure

LOTTERY Turnaround in fortune for Camelot

FASCIAS

children with Type 1 diabetes can

Lottery sales rise in wake of strategic review

Costcutter guides retailers through Christmas

get the most out of every part of school life. The funding will be invested in Diabetes UK’s Make the Grade school packs and in increasing the number of schools achieving Diabetes UK’s Good Diabetes Care in Schools award. Britvic will be the sole corporate funder for these activities.

Frozen food industry celebrates bumper year Nigel Broadhurst, Chairman of the British Frozen Food Federation board, celebrated the success of the frozen food industry during his speech at the Federation’s Annual Luncheon. Speaking to over 900 business leaders at London’s Hilton Park Lane, Broadhurst said a number of factors had contributed to frozen food becoming an £8.5bn industry. “We put these successes down to our innovation, a move into premium quality products and the convenience of our everyday products,” he

Camelot has reported increased ticket sales for the first six months of its 2018/19 financial year (April 1 to September 29, 2018). Total sales were up 5.3% on the first half of 2017/18 to £3,456.3m. This compares favourably to the same period a year ago, when sales had dropped 3.2%. The turnaround follows a wideranging strategic review launched by the lottery operator in June 2017 to address falling sales. This led to a number of game changes and a £20m three-year initiative to boost retailer engagement. Accounting for 75% of sales, retail remains the largest National Lottery sales channel. Retail sales over the last half-year grew by £98.5m to £2,624.9m. Retailers earned £147.2m in commission, £7.4m more than in the first half of 2017/18. Over the same period, sales across The National Lottery’s digital

channels grew to a record £831.4m, an increase of £77.4m. Mobile sales increased by £99.8m to an all-time high of £431.6m, with smartphones and tablets now accounting for over 50% of all digital sales. Sales of draw-based games increased by £39.9m to £1,960.7m, while sales of Scratchcards and online Instant Win Games increased by £136.0m to £1,495.6m. Camelot recently added several new features to its Lotto draw. These include bigger, fixed cash prizes (including £1m for matching five main numbers and the Bonus Ball), jackpots that will be won more often, and a brand new ‘rolldown’ mechanic. Additionally, sales commission will now be paid out when a player claims a Match 2 free Lotto Lucky Dip prize in store – resulting in an average annual commission boost of around £5m.

Costcutter has launched a series of 30-second guides to help its retailers cash in on growing sales throughout the coming festive season. Hosted on the Group’s ActivHUB portal, the videos are designed to provide bite-sized advice on maximising key categories including Christmas confectionery, party food and promotional products and complements an in-depth Christmas Made Easy Guide. The guide encapsulates insights, along with range and merchandising information and recommendations, to help retailers maximise Christmas sales. Costcutter said the videos would help make Christmas 2018 “the biggest yet”.

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News VAPING Category receives a welcome boost from Westminster

Government opens dialogue on retail violence The Home Office will host retailers and representatives from the shopworkers union Usdaw for a discussion about new legislation to solve the growing problems of in-store violence and abuse. Speaking during the report stage of the Offensive Weapons Bill Home Office Minister Victoria Atkins told the House of Commons: “I’d like to invite (MPs David Hanson and Richard Graham) and organisations involved in the retail arena including the trade union into the Home Office for a round table so that we can discuss the concerns that have been raised this afternoon further.”

Vaporized is Scotland’s fastest-growing business Vaporized, the UK’s largest vaping retailer, has ranked as Scotland’s fastest-growing

MPs call for Parliament to embrace vaping A group of cross-party MPs has called for Parliament to lead the way and act as an example to other workplaces and public places by becoming vape friendly. The group said that current arrangements in Westminster do not adequately cater for the needs of vapers, with designated vaping areas being outside and unknown to most members of staff. The call is part of the ‘Vaping in workplaces and public places’ report, which was presented at the launch of the re-named All Party Parliamentary Group for Vaping. It comes following increasing evidence that vaping is a key process to smoking cessation, with Public Health England saying that vaping is 95% less harmful than smoking and vaping having already

helped three million smokers to quit or reduce their habit. However, messaging around vaping is still very confused, with some employers banning vaping in workplaces or even during working hours. Most recently, Dundee Council bosses threatened employees with disciplinary action if they vaped at all during working hours. Mark Pawsey MP, chair of the All Party Parliamentary Group for Vaping said: “It makes no sense for politicians to ask UK businesses to become more vape friendly, whilst our own workplace does not practise what we preach.” Dan Marchant, board member of the UK Vaping Industry Association (UKVIA), said: “Vaping is not smoking, yet time and again vaping is treated in the same way as

smoking in workplaces, stations, pubs and sporting arenas across the UK. “This is usually because of a misconception that inhaling secondhand vapour is the same as passive smoking, or because vaping is viewed as an anti-social behaviour. In fact, there is no scientific evidence of harm from second-hand vapour, and most responsible vaping happens without bystanders even noticing.” The news came as UKVIA announced expansion, with five major companies joining its ranks. Now in its third year, the UKVIA welcomed ECig-Direct and Oxford Vapours as UK based e-cigarette brands and retailers, along with first international members, Chinese firms SMOK and Innokin, along with German manufacturer FlavorIQ.

private business in the ‘Sunday Times Virgin Atlantic Top 100’ in

RECYCLING Empty crisp bags to be turned into garden furniture

2018.

Walkers reveals crisp packet recycling scheme

Coming in at 24th, Vaporized has experienced 97% growth over the last three years, placing it in the top 25 fastest-growing companies in the UK. Vaporized was established in 2012 with a single store in Leith and now has over 110 stores throughout the country. It also operates within convenience stores under the Vaporized Express banner.

London retailer wins £10k in Camelot prize draw Kulwant Bhatia, who runs Hillingdon News in Greater London, is the second National Lottery retailer to scoop £10,000 in Camelot’s Site, Stock, Sell quarterly prize draw. The 10-point Site, Stock, Sell is part of Camelot’s AllStars rewards programme. It helps retailers improve their in-store standards and increase sales by asking them simple questions about their Lottery offer. Kulwant plans to spend the prize money on a Christmas

Walkers has launched the first nationwide recycling scheme for crisp packets. The move comes in the wake of a campaign against plastic waste which saw consumers post empty packs back to Walkers, as they have not been – up to now – easy to recycle. The #PacketInWalkers campaign proved so popular the Royal Mail was forced to ask people not to post individual empty bags as it was costing too much to sort and deliver them. Under the new scheme, managed by recycling firm TerraCycle, packets will now be cleaned, shredded and formed into small plastic pellets. These can be used to make items like garden furniture, trays and ﬂooring. TerraCycle will accept any brand of crisp packet. People can collect empty packs and take them to their nearest recycling drop-off point,

which can be found online. It is also possible to download a label from the TerraCycle website and arrange to have packets collected by a courier, free of charge. To boost return rates, the scheme offers charity points based on the number of bags collected. People are encouraged to collect as many packs as they can in one go and then send in larger batches. Walkers brand ambassador Gary Lineker is supporting the scheme, which will also be promoted on Walkers packs from January.

FASCIAS

Londis hopes for some ‘elﬁe’ footfall Londis has launched its firstever Christmas social media campaign which sees ‘Elfie,’ the somewhat predictablynamed Londis elf, tour the UK giving shoppers a chance to win £500. Teasers issued on social media will encourage shoppers to discover the elf’s location and take a ‘Selfie with Elfie’ before uploading the picture for a chance to win. Additional posts will be geo-targeted to specifically highlight the campaign to local people nearer to the selected store’s location. The campaign will be supported by in-store POS to drive awareness. “This is the first campaign of its kind in Londis and I’m confident it will prove popular with both retailers and shoppers,” said Martin Swadling, Brand Director for Londis.

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News Extra

Retail Trends

NewsExtra CJ LANG BOSS COLIN McLEAN TALKS TO SLR – P36 RETAIL TRENDS Technology at the forefront of change next year

Convenience Matters with the SGF As we never tire of telling everyone SGF heads up a cross-party group on independent convenience stores in the Scottish Parliament. Meetings are topic-based and have proved to be a very effective platform for bringing the issues affecting our industry directly into parliament. Our final meeting of this year looked at Women in Retail. We know from our Scottish Local Shop Report that 75% of staff in the sector are female. However, as we all know, the stats often hide both the true picture and some underlying complexities. At the meeting we heard from several women store-owners (all awardwinning retailers in their own right) about their experiences and how they have become not just successful retailers but successful business people. There were real positives. There was a strong feeling that women have the capacity to multi task and the high level of communication skills which are vital to succeed in what is essentially a service driven industry. We heard about the negatives too. The struggles with worklife balance, the difficulty in devoting time to the business when you have caring responsibilities, the near impossibility of taking full maternity leave when you are running your own business. A key issue emerged that more women should be encouraged to become retailers or to look for senior positions across the wider supply-chain. To help to address this SGF will begin to look at some kind of mentoring programme for women in retail in 2019, hopefully this will become part of a wider discussion about how genuinely diverse and inclusive our industry is.

SLR | DECEMBER 2018

TOP FIVE TRENDS SET TO SHAPE RETAIL IN 2019 The IGD has highlighted the five biggest retail trends that it predicts will shape 2019 for consumers and retailers.

It has been another transformative year in retail but industry research and training body IGD predicts that next year is likely to bring more of the same. “2019’s biggest trend of all is likely to be the continuation of rapid and radical change in the food and grocery industry,” said Toby Pickard, Head of Insight, Innovation and Futures at IGD. “We have already seen a significant pivot towards innovative new technology, and there is no sign of this letting up next year. Shoppers’ expectations have changed, and the retail and grocery sectors are working to meet those expectations in every area of business.” In response, IGD has highlighted the five key retail trends that it believes will shape 2019:

1. DATA DICTATES THE WAY 2018 has seen data become more valuable to the retail sector than ever. As well as helping to boost sales, accurate data will be vital for tools that allow retailers to understand customer behaviour – and reward their loyalty. Through customer datasets, artificial intelligence and machine learning in-store, retailers can target products and offers more effectively whilst maintaining appropriate stock levels and improving customer service. Insights gained through closer customer engagement will provide invaluable guidance to retailers looking to grow their businesses: making stronger connections beneficial to both groups.

2. DOING GOOD IS GOOD BUSINESS Issues such as food waste and plastic pollution are headline news, and this has translated to changing attitudes across the generations. Nearly three quarters (74%) of UK shoppers say that they have become more aware of the environmental impact of plastic packaging over the past year. Retailers are no longer thinking about just reducing waste, but want to make a positive, tangible contribution. The next wave of innovative and leading retailers and brands will move beyond reducing their impact.

3. SEAMLESS STORES Physical stores will offer a much more digital experience in 2019, by using technology to make it easier for customers to find items and gain more product information. Eighty-five per cent of UK

shoppers would like to see the roll out of more instore technologies. This should lead to a faster shop for many, where searching aisles and shelves for the right item is replaced by an app that guides shoppers to where they want to be.

4. HELP ME BE HEALTHY Most shoppers aspire to eat and live well with 85% saying they are actively trying to improve their diet, but aspirations don’t always translate into action. Shoppers will be more health conscious going forward, so supporting them to both look and feel good will be a major priority for retailers and their suppliers. This means that both consumers and businesses will be thinking more about wellness and the role of retail in promoting cleaner living going forward.

5. ANYWHERE, ANYTIME New innovative social commerce solutions will emerge throughout 2019. Retailers and suppliers will deliver targeted marketing, and new ways to make online shopping more social, instantaneous, and convenient. Packard concluded: “In 2019 we’ll see retailers think increasingly about making every moment shoppable. Whether through targeted marketing or simple ways to make purchasing more seamless, shopping is becoming not just more convenient but more instant as well. Shopping will become seamless and omnipresent. People will no longer need to visit a retailer’s online store. As they look at pictures, watch videos or TV they’ll be able to just add products to a shopping cart. This has the potential to change the way that retailers think about selling in the future.” Five biggest trends for 2019 Q Data, and particularly customer data, will offer more personalised shopping Q Sustainability concerns will change the way retailers do business Q Stores will offer more seamless shopping experiences Q Healthy eating and wellness will grow in popularity Q Shopping opportunities will increasingly be available anywhere, anytime

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Comment

‘VAPING WILL REPLACE TOBACCO’, BUT WHEN? There were many bold statements made at our Cloud Chasing vaping event in Glasgow last month but possibly the boldest came from Richard Cook of US vaping sensation Juul. As the final speaker on a day of fine speakers, Cook closed the conference with the confident prediction that “vaping will replace tobacco” – and the clear implication was that this would happen sooner rather than later. What was most interesting, however, was the reaction to that comment from the assembled room full of retailers. A sea of raised eyebrows more or less covers it. And that, for me, summed up why the convenience retailing channel has performed so badly in this category and why this conference was so timely. Why do we have such a hard time believing that vaping is the future? There are lots of possible reasons but every scrap of evidence suggests vaping will replace tobacco and an increasing amount of evidence suggests it will happen quicker than many of us expect. We had already heard from Philip Morris International at the event who highlighted once more that it is committed to a combustible cigarette-free future and that it had spent a gargantuan £4.5bn developing the IQOS technology that will help it achieve that aim. We had heard how tobacco sales continue to fall as every year passes. We had heard how the Scottish Government is hell-bent on a tobacco-free Scotland. In fact, no matter where you look, it’s not looking great for the tobacco category. So the big question is not if vaping will replace tobacco, it’s when it will do so. What’s not in doubt is the fact that the local retailing sector has a mountain to climb in order to give itself a half decent chance of cashing in on that inevitable shift to vaping. There are a lot of factors to consider here with some of them potentially working in our favour – and some not. If, as the major tobacco-funded vaping companies and indeed Juul seem to believe, the future is in pod-based vaping systems, then we could be back in the game. Buying pods is fundamentally a non-complex shopping experience similar to buying cigarettes. Little or no knowledge or advice needed from retailers and no fancy bits of kit. Customers simply choose their vaping starter kit of choice then buy pods as they require them. Simples. If the market doesn’t evolve that way however, then we may be in trouble. The biggest message that came out of the Cloud Chasing event was that education and training is what separates vapeshops from c-stores. Vapeshop staff know the category inside out, c-stores don’t. Even if pods are the future, we will however still require at least basic training for all store staff and the time for that training is probably right about now. Vaping is not here to take part, it’s here to take over.

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 Cara Begley 0141 222 5381 | cbegley@55north.com

CIRCULATION & SUBSCRIPTIONS Scottish Local Retailer is distributed free to qualifying readers. For a registration card, call 0141 222 5381. Other readers JUNE 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 JUNE 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 JUNE 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

SLR | DECEMBER 2018

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Cover Story

Cloud Chasing Conference

EDUCATION KEY TO UNLOCKING VAPING GROWTH

A packed audience gathered last month for SLR’s Cloud Chasing conference to hear a collection of industry experts explain how the local retailing sector could breathe new life into the vaping category and how the key was education. BY FINDLAY STEIN

BAT’s Will Hill discussed the importance of responsible retailing.

“Tobacco is one of the biggest footfall drivers into your store. But this category will replace tobacco.” RICHARD COOK, JUUL

SLR | DECEMBER 2018

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Cloud Chasing Conference

ormer Prime Minister Tony Blair once said his three priorities for government were ‘education, education, education’. After a day listening to a dozen industry experts at SLR’s Cloud Chasing conference on kick-starting growth back into vaping in convenience, the packed audience was left in no doubt that education should also be the top three items on the to-do list of any local retailer keen to make a fresh start in this vital category. With traditional retail only accounting for around £169m of this £1bn industry in the UK, the event brought retailers, suppliers and experts together to discuss how to get the category back on track in local retailing. The first lesson of the day was given by Craig Johnston – co-founder of Hamiltonbased Hope CBD. CBD has been touted as the next big category for the convenience channel, and Johnston gave the audience the lowdown on what the cannabis derivative actually is, how it works and why people take it. He was quick to reassure retailers that the average CBD customer was a female over 35, and that their store wouldn’t become a haven for stoners if they chose to stock CBD e-liquids or other products containing it. Johnston then highlighted the opportunity that increased public awareness of CBD presents, comparing it to where the market for vaping was six or seven years ago just as the category was taking off. By that point in time Matthew Moden’s company Liberty Flights had been producing e-liquid and vape kits for around four years. Sharing his extensive experience, he too said vaping presented a massive opportunity for c-stores and predicted the demise of the vast majority of specialist vape shops. “Only the strong will survive,” he said, urging the audience to capitalise and look at vaping – with its 50%+ margins – as a key category that should be approached seriously and treated with respect. The biggest challenge was “unlocking knowledge for the retailer”, with training a vital element of this process. Building a strong range is the other task that all retailers must embrace, said Moden, because it is “super-importan that you address every customer’s needs”. He stressed the www.slrmag.co.uk

Richard Cook of Juul predicted vaping will replace tobacco.

KAM Media’s Blake Gladman talks America.

Ed Simkiss of IQOS offers a vision of the future.

JAC Vapour’s Neil McCallum talks Scottish prisons.

Cover Story

importance of conducting regular range reviews and advised retailers to develop an understanding of the different flavours, which vary in popularity depending on where in the country you are. He also flagged up the need for strong POS materials, showcasing a variety of different solutions that Liberty Flights provides. Moden also suggested that the market was moving towards ‘closed’ cartridge systems, described by vapers as pods or podmods. This point was reiterated by Imperial Tobacco’s Head of Next-Generation Product Sales Andrew Miller. He said convenience retail was presently focused on e-liquids and starter kits, but that the focus would shift to podmods within the next two or three years. Miller reiterated the importance of “education, education and education”, suggesting retailers should become vaping experts and work with suppliers who can provide training. As potential first-time vapers can easily spend 20 minutes or more discussing their needs and options, Miller advised retailers to provide information leaflets that would allow such customers to go away and make an informed choice instead of blocking the till. He also managed to cast a rare ray of sunshine over Brexit. He suggested it gave “significant opportunities” to separate vaping from the restrictive EU tobacco products legislation concerning marketing. Shopper research consultants HIM interviewed 250 convenience retailers to get their thoughts on the vaping category especially for the conference. The results, as relayed by the firm’s Commercial Innovation Manager Josh Clifton, made for some grim listening and exposed why convenience is failing with vaping. Unsurprisingly, education and poor ranging lies at the root of the problem. Some of the findings of the survey seemed to indicate that some retailers had all but given up on the category with a staggering degree of apathy and lack of knowledge. Astonishingly, Clifton revealed that 76% of retailers weren’t interested in having a trained category expert, while almost the same number (73%) wouldn’t consider an in-store concession. Nearly twothirds (66%) don’t want category support from their suppliers. DECEMBER 2018 | SLR

Cloud Chasing Conference

Cover Story

Couple these numbers with Clifton’s revelation that despite almost every retailer polled (91%) had been asked for advice on vaping by a customer, over 40% were reluctant to do this due to a lack of category knowledge, it becomes clear where the problem lies. Despite this, more than three-quarters of retailers surveyed expect to grow or at least maintain their current range, HIM’s survey revealed. With smoking in Scottish prisons banned at the end of last month, Neil McCallum, CEO of JAC Vapour, educated and entertained delegates in equal measure with a timely discourse on the trials and tribulations of being the company chosen to produce a vaping device suitable for guests of Her Majesty. The resulting product had to meet a number of design requirements, and uses closed pods so prisoners can’t tamper with the e-liquid and “get aff their nut”, as McCallum humorously put it. He also recalled presenting a tamper-proof prototype device that couldn’t be dismantled, only to be told by the governor of Barlinnie that some of his prisoners “had 20 years to get into it” and to “just make sure they can put it back together”. McCallum also ﬂagged up the “huge opportunity” presented by the forthcoming ban on menthol cigarettes in 2020, saying a menthol vape was the closest thing you could get to a menthol smoke. Tobacco giant Philip Morris International (PMI) has publicly committed to replacing cigarettes with smoke-free alternatives and has sunk over $4.5bn into research and development for its IQOS device which heats rather than burns tobacco. IQOS was the first heated tobacco product to reach the UK market and Ed Simkiss, PMI’s Regional Sales Manager for Scotland, told the audience it gave the company the opportunity of opening up a new category and making the trade aware that it existed as an alternative to vaping. Vaporized Compliance Director Doug Mutter, who sits on the board of the UK Vaping Industry Association (UKVIA), then predicted that the vaping market could quadruple in size to £4bn by 2021. He also revealed the scale of the challenge retailers face to become vaping experts. Every single Vaporized employee undergoes a full 18

SLR | DECEMBER 2018

Imperial Tobacco’s Andrew Miller offered blu’s take on the market.

Matt Moden of Liberty Flights entertained and educated.

www.slrmag.co.uk

Cloud Chasing Conference

HIM’s Josh Clifton revealed some worrying statistics.

Hope CBD’s Craig Johnston kicked the event off.

www.slrmag.co.uk

fortnight of classroom-based training before moving on to in-store scenarios. If you’re keen to learn, Mutter offered this training to any retailer who wants to work as a Vaporized partner. One such retailer is former SLR Rewards e-cig retailer of the year and Managing Director of Eros Retail Harris Aslam which operates a chain of nine stores in Central Scotland. He has been working closely with Vaporized and his Little Greens store in Alloa now boasts a Vaporized Express counter alongside its Post Office and in-store bakery. Harris told the audience that the store has three vaping champions who have all been through Vaporized’s rigorous training programme. He acknowledged the effect this had on the staff rota but said: “If you’re serious about vaping you need to make sure your team are fully up to speed.” Product knowledge was the key to success, he added, and a “massive, massive challenge”. And why should retailers should make the effort? It was a “no-brainer”, Harris said, to switch a customer from smoking to vaping and shift from an 8% margin on tobacco to a 50%+ margin and a marked increase in basket spend. He advised the audience to work hard at marketing the category and said that Vaporized Express loyalty cards worked well in the Alloa store, which also features regular promotions

Cover Story

and plenty of marketing material throughout – not just at the vaping counter. Will Hill, British American Tobacco’s UK&I Head of Legal & External Affairs, was not the first speaker to say that the vaping opportunity is there for the taking but – as his job title suggests – also stressed the importance of responsible retailing of what are agerestricted products. In a thought-provoking presentation, Hill described the work BAT was doing to foster an environment of youth access prevention. A lot of discussion at Cloud Chasing centred on the opportunities and problems presented by smokers considering vaping for the first time, but Khosrou Kheradmand, Director of vap-r, took a different approach. He suggested convenience retailers need to target more experienced vapers and poach market share from specialist shops. The best way of doing this, he said, was by stocking products such as ‘sub-ohm devices’ – the ones that customers with big beards and tattoos use to generate vast plumes of vapour. The good news here was that, compared to over 20,000 varieties of e-liquid that Kheradmand said were available in the UK, there were only really two or three brands of device popular with cloud chasers. Blake Gladman, Strategy and Insight Director for insight agency KAM Media, then looked to the USA to predict what the future of vaping may hold for local retailers, sharing the results of some exclusive research the company conducted for the conference. The US vaping market was chosen because it is “ahead of the curve”, as Gladman put it. Some 500 vapers on both sides of the Atlantic were surveyed to understand the differences between the two markets. There is a clear contrast: American c-stores and traditional retail channels have captured a 45% share of the vaping market compared to just 16% in the UK. Gladman said this disparity showed a real opportunity for UK convenience. Once more, range and knowledge were the main barriers the currently channel faced, said Gladman, with a third (33%) of UK vapers polled stating they wouldn’t choose a c-store as it wouldn’t have the brands/products they wanted. A similar number (37%) avoided convenience because the staff didn’t have any knowledge of the category. DECEMBER 2018 | SLR

Cover Story

Cloud Chasing Conference

Vaporized’s Doug Mutter offered the industry view.

Khosrou Kheradmand of Vap-r highlighted the importance of value. 20

SLR | DECEMBER 2018

The survey also revealed a considerable level of dissatisfaction among vapers with specialist shops and the online channel, suggesting that if the local retailing sector can address the three key focus areas raised by Gladman – getting the right range of products, getting the right range of brands and getting staff properly trained – then the market is there for the taking. The final speaker of the day, Richard Cook, must have been delighted when Gladman suggested that Britain was playing catch-up with the US; he is Head of National Accounts for Juul, the company that went from a star-up company in 2015 to dominating the American vaping market with 75% of value sales in US convenience. The company now has annual sales of around $1bn in the US and is now tackling the UK, although it has existed on this side of the pond for only five months. The reason for this American success may be down to the Juul device’s simplicity and it’s pared down design, often leading to it being described as “the Apple of the vaping world”. Assuming it’s charged, all users need to do is insert a pod and draw on it; it is breathactuated and has no buttons to press. Cook was keen to point out that Juul had no connection with, nor investment from, tobacco companies and had the aim of making a “positive impact” on 20 million smokers by 2020. Juul also insists sales are made under a ‘Challenge 25’ policy and will refuse to supply any retailers who are found to be in breach of this. Citing an example of a retailer with over £2,000 tied up in a wide range of vape supplies – the majority of which didn’t move – Cook stressed the importance of stocking the right range. “A 50% to 60% margin on something that doesn’t sell adds no value to your business,” he said, adding that retailers shouldn’t be afraid to simply go into their local specialist vape shop and ask what sells. Again repeating the “education, education, education” mantra, Cook urged retailers to invest in staff training. If what he then predicted comes true, it would be a brave retailer who didn’t. “Tobacco is one of the biggest footfall drivers into your store,” he said. “This category will replace tobacco.” www.slrmag.co.uk

APOUR V

IE N T

Editable (DO NOT USE)

NEW VYPE ePEN 3

“IT’S SO EASY”

THE VAPE EVERYONE IS TALKING ABOUT

Vype e-cigarettes contain nicotine. 18+ only. Read leaflet in pack. Testimonial based on individual user feedback experience. This view may not represent the views of all potential users and your own user experience may differ.

News

Products

Dexters drops into Bestway Kervan Gida’s confectionery brand Dexters has secured

ProductNews

new product listings in Bestway Wholesale for Micro Chews, Sour Splodgers, Candy Necklaces, Candy Watches and Individuallywrapped Tiger Tongues. “We’re delighted with Dexters’ strong performance in the UK and these new listings will further enhance its appeal to wholesalers looking for a reliable, attractive product with real shelf appeal,” commented Stuart Johnston, Managing Director of Kervan Gida.

Walkers Sensations product recall Walkers has issued a product recall for its Thai Sweet Chilli Crisps. The products in question contain wheat (gluten) which is not emphasised correctly on the packaging. The affected SKUs are Walkers Sensations Thai Sweet Chilli Flavour Crisps 40g and Walkers Sensations Thai Sweet Chilli Flavour Crisps 73g (£1 PMP) All packs with best before dates up to and including January 29, 2019 are affected. If you have any of the affected

ALL THE LATEST HOTLINES FOR YOU TO STOCK – P39 FOOD-TO-GO Second complete solution launches in as many months

Kepak unveils all-in-one food-to-go concept Kepak has responded to the growing demand for hot foodto-go solutions with the launch of Goode & Tucker, a new product range with its own hot convenience unit. Available to c-stores and forecourts, the Goode & Tucker range caters for the breakfast, lunch and snacking occasions. Products include a Bacon & Egg Breakfast Muffin, Cheeseburger, Chicken & Pesto Panini and Sweet Potato & Mozzarella Wrap. The all-in-one solution also includes equipment and marketing material for retailers to help them drive footfall, maximise space and reduce labour costs. Units will be available to order in 2019.

The news comes hot on the heels of Lomond’s launch of

its out-of-the-box food-to-go solution, Nom Stop. Kepak’s Foodservice Marketing Director Bláthnaid Ní Fhátharta, said: “With the sector expected to be worth £22.8bn by 2022, operators who are currently working without a grab and go offering could be missing a significant revenue stream. “It’s a highly competitive market and the Kepak foodto-go team looks forward to working with retailers to help them compete with high-street foodservice operators, generate additional footfall and increase food spend in their store.” Retailers who are interested in Kepak’s solution should register their interest at hello@ goodeandtucker.com.

stock, please remove it from sale immediately and return to the point of purchase. If you require any further information please call the Walkers Consumer Care Line on 0800 274777.

Vimto celebrates birthday with increased sales Vimto has celebrated its 110th birthday with sales growth of 12.5% and a £10m jump in brand value since the start of 2018. The brand attributes a lot of this success to its recent ‘I See Vimto in You’ campaign. Engagement levels for this were more than double the industry

SOFT DRINKS

Turn the colour of Irn-Bru? Neigh bother! Irn-Bru unleased a barrage of promotional activities in the run-up to the launch of the sequel to its original Snowman TV advert, which airs throughout December. Alongside a social media and radio advertising blitz, the SSE Hydro and Kelpies mysteriously glowed orange as the Barr Soft Drinks brand whipped up anticipation ahead of the new ad.

standard. Over a quarter (27%) of teens said they would be more likely to buy Vimto products after seeing the advert. This has been reflected at the tills, with Vimto sales at their highest ever. One in four households now buy Vimto and the brand is worth almost £86m. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | DECEMBER 2018

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Products

News

CONFECTIONERY Nestlé rolls out the big guns for Easter

Nestlé puts innovation at forefront of spring range Nestlé Confectionery’s spring range for 2019 focuses on offering consumers its big brands in the season’s best-selling formats, and features new products in mini eggs, large eggs and giant eggs. Also new is Incredibles, a range of shell eggs with inclusions. In addition, Nestlé has given its

full spring range a redesign, that gives each pack a recognisable and consistent seasonal look. A new nest design features centrally on the front of every pack, alongside clearer descriptions of what each contains, all aimed at communicating more clearly with shoppers. Brand new for 2019 are two new ‘more to share’ bags of mini eggs. Both the Smarties and Milkybar mini eggs bag are 300g with an RSP of £3. These are joined by four new large eggs, adding Smarties, Rolo, Toffee Crisp and Yorkie to the range – all with a £5.41 RSP. The new Incredible eggs each contain a chocolate egg with inclusions in the shell. From ﬂagship brand KitKat is the KitKat

Chunky Salted Caramel Fudge Incredible egg which contains a caramel ﬂavour chocolate egg with salted caramel fudge pieces in the shell, as well as three full-size bars of KitKat Chunky Salted Caramel Fudge. The Yorkie Raisin and Biscuit Incredible egg is a milk chocolate egg with biscuit and raisin pieces in the shell, plus three full-size bars of Yorkie Raisin and Biscuit. The Smarties Mini Eggs Incredible egg is a milk chocolate egg with mini Smarties in the shell plus a Smarties mini eggs sharing bag. All three eggs have an RSP of £12. Nestle’s other big hitters Smarties and Quality Street are rolling out in the giant egg format

DESSERTS

FOOD-TO-GO

Aryzta launches vegan savouries range Aryzta is tapping into the growing demand for free-from alternatives with a new range of vegan savouries. Available from this month, the range comprises four products: Q Vegan Sausage Roll (RSP £1.50 / 150g) – a meatfree sausage with onion, flavoured with garden herbs, wrapped in a golden flaky puff pastry and finished with a light parsley topping. Q Vegan Spicy Chickpea & Kale Pithivier (RSP £2 / 185g) – a French-inspired savoury pie recipe with a Moroccan twist, with a chickpea, sweet potato and apricot filling and a fragrant blend of herbs and spices; finished off with a parsley topping.

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in time for Easter. Following on from the debut of Orange Smarties in 2018 is the launch of an Orange Smarties mini eggs giant egg. This features an orange ﬂavour chocolate egg shell as well as a bag of Orange Smarties mini eggs. This joins the Quality Street giant egg. Both RSP at £7.49. The last of Nestle’s Easter NPD is the KitKat Senses premium egg (RSP £10) which comes complete with a mixed box of the KitKat Senses chocolates to share.

Q Vegan Spicy Chickpea Roll (RSP £1.50 / 180g) – a spicy blend of chickpeas, sweet potato, red peppers and tomato wrapped in a light puff pastry roll and sprinkled with paprika. Q Vegan Saag Aloo Lattice Slice (usually £1.75 – Christmas promo RSP £1.50 / 170g) – potato and spinach, blended with aromatic herbs and spices to invoke the flavours of India, and enveloped in a light and crisp puff pastry case. “With Veganuary just around the corner, retailers can look forward to driving in-store bakery sales with a product offering that’s right on trend,” said Mary Byrne, Trade Marketing Manager for Aryzta.

Spar reveals triple pudding treat Spar Brand has unveiled three new on-trend dessert lines in an attempt to drive growth back into the continental desserts sector. Spar Brand twin-pack Profiteroles, Panna Cotta and Limoncello are available to Spar retailers now, with an RSP of £1.65 and a promotional price of two for £3. The new lines will sit alongside Spar’s existing Tiramisu. Spar Brand has also relaunched two of its other dessert lines in time for Christmas – twin-packs of Apple Crumble and Syrup Sponge, with an improved recipe and introductory RSP of £1.50.

DECEMBER 2018 | SLR

News

Off-Trade

VK launches ‘Find the Watermelon’ mixed packs The latest addition to the VK

Off-TradeNews

range of RTDs, VK Watermelon, has joined the other six VK flavours in mixed packs – but only for the lucky consumers who find it. The few who find one of the hidden VK Watermelon bottles will not only be one of the first to try the new flavour, but will also have the opportunity to get their hands on a VK Christmas jumper. Consumers can win by sharing a picture of their bottle on VK’s social media channels. A targeted celebrity influencer campaign expected to reach nearly three million consumers also promotes the mixed packs and offers more chances to win festive freebies. This year’s Christmas jumpers are embellished with the VK logo, VK bottles, snowflakes, stars and built-in LED lights.

Fentimans’ spirit guide

WHAT DOES 2019 HAVE IN STORE FOR RETAILERS? – P40 BEER Heineken predicts a bumper sales season

Cash in this Christmas with Heineken’s festive tips Heineken has predicted a bumper festive sales season for the off-trade and offered up some suggestions to help retailers make the most of the opportunity: Perfectly Premium – Last Christmas Heineken saw an increase in share for the more premium sectors across Lager & Cider and it expects that trend to continue. Categories like Premium Beer, Craft, and No & Low, as well as Cider all showed substantial growth. Thus, it suggests retailers ensure their range mix is right by offering a breadth of favourites that help facilitate a trade up for shoppers who want to spoil themselves. Made to suit – Despite increased demand for mid packs

within the impulse channel at Christmas, single and small packs still lead the charge, comprising 77% of Beer sales and 85% of Cider sales. Heineken advises

retailers to limit mid packs to core brands only, ensuring the right promotions are on the more profitable single bottle and small pack segments.

Alcohol Free – A variety of low and no alcohol options might harness additional sales from health-conscious shoppers who are keen to ‘Live Better’. Unsurprisingly, the beer producer suggests its own Heineken 0.0 as a “great option” here. Timing is key – the ‘Alcohol Specific Mission’ almost doubles in importance at Christmas so it’s advisable that range and merchandising are clear, maximising offshelf visibility. Heineken expects the final weekend of sales to be even higher this year compared to 2017 and therefore advises retailers to ensure stock levels are maintained for the final week.

Soft drinks producer Fentimans has launched a new Spirit Pairing Guide that covers light and dark spirits including gin, vodka, agave, rum, whisky and fruit brandy. Each category guides the user towards the ideal Fentimans mixer for a particular spirit. There is also a section devoted to wine. The guide has been launched as a tool to educate and support Fentimans’ on- and off-trade industry stakeholders as well as end consumers. Claire Tyson, Fentimans Senior Customer Marketing Manager, explained: “When users are mixing our drinks, we need to ensure they’re having the ultimate flavour experience. Our Spirits Pairing Guide can be used as an inspiration to try new and exciting flavour

GIN It’s a matter of taste for Diageo brand

Tanqueray puts taste at forefront of new campaign Diageo has launched a new multi-millionpound campaign for its Tanqueray Gin brand. ‘Unmistakably Tanqueray’ features blindfolded models with a Tanqueray and tonic in hand and includes worldwide out-ofhome, print and digital activity. The campaign aims to communicate that Tanqueray’s ﬂavour is “so distinctive and perfectly crafted” that you don’t even need to see its bottle to know that you are drinking it. D-J Hageman, Diageo’s Global Head of Tanqueray, commented: “As the world of gin continues to grow, it is getting ever more confusing about which one to choose. We want to bring the conversation back to what really matters – taste.”

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

SLR | DECEMBER 2018

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Off-Trade

News

Diageo ditches American beverage brands Drinks giant Diageo has offloaded 19 of its brands to Kentucky-based beverage company Sazerac for $550m.

LIQUEURS Pernod Ricard hopes taxi campaign will drive footfall

Kahlúa drives the Espresso Martini round Edinburgh Kahlúa has rebranded 150 taxis in a £400,000 bid to increase athome consumption of Espresso Martinis. The ﬂeet of cabs will transport festive revellers around the streets of Edinburgh and London from now until New Year’s Eve and will run in conjunction with an outof-home advertising campaign. The campaign champions the Espresso Martini and Kahlúa’s inclusion as its essential ingredient. Toni Ingram, Head of Marketing for brand owner Pernod Ricard, commented:

The brands in question are largely unknown outside of the US, with the exception of Seagram’s. Family-owned Sazerac will take over Seagram’s VO, Seagram’s 83, Seagram’s Five Star, Myers’s, Romana Sambuca, Yukon Jack, Booth’s, Goldschlager, Popov, Relska, The Club, Black Haus, Peligroso, Grind, Piehole, Parrot Bay, Stirrings, Scoresby and John Begg. Diageo’s shareholders are expected to receive £340m in the form of a share buyback, after tax and transaction fees have been deducted. Ivan Menezes, Diageo’s Chief

“Google Trends shows an increase in searches for Espresso Martinis during the festive period, with consumers keen to replicate at home.

“The campaign demonstrates how Espresso Martinis are made, pushing footfall into store throughout this key trading period.”

Executive, said the sale would allow the company to focus more on its faster-growing “premium and above” brands in the US.

Illegal tobacco is damaging your local community, funding organised crime and undermining local businesses We all have a role to play to combat the issue. Don’t be complicit in the illicit trade

Anyone with information about this type of crime should contact Trading Standards on 03454 04 05 06 or visit www.jtiadvance.co.uk/DontBeComplicit

www.slrmag.co.uk

DECEMBER 2018 | SLR

News

Newstrade

COMICS

Publisher ‘treating independents with contempt’ Comic publisher Egmont has been accused by the NFRN of treating independent retailers with huge contempt after advising that it is to substitute another title from its portfolio into a controversial trial that sees

News& Magazines WHAT HAS THE CURMUDGEON-IN-CHIEF BEEN UP TO THIS MONTH? – P54 NEWSPAPERS Johnston Press bought out of administration

SCOTSMAN AND i PUBLISHER SOLD

multiple retailers receiving their copies first with smaller stockists supplied with returns some four to six weeks later. The news came just under a week after toy manufacturer Lego stepped into the row between the publisher and the NFRN, securing a promise from Egmont and its distributor Seymour that independent retailers would receive their supplies of Lego Star Wars magazine at the same time as the multiples. However, NFRN has learned that Egmont is to include another of its titles into the trial from January next year. NFRN National President Mike Mitchelson commented: “I cannot believe that Egmont is going down this route again. The publisher’s sheer arrogance astounds me. “This latest move is nothing

Johnston Press, publisher of the i, The Scotsman and almost 200 regional titles, has been bought in a pre-pack administration deal by JPI Media, a newlyformed holding company created by the troubled firm’s creditors. The newspaper group, which was crippled by debts of £220m that were due to be repaid next year, had put itself up for sale in October. As part of the deal, which secures the jobs of over 2,000 staff, the debt burden will be slashed to £85m. The repayment date for this substantially reduced amount has also been pushed back to December 2023. Additionally, JPI Media will pump £35m into the business. Current Johnston Press boss David King stays in charge as the new Chief Executive of JPI Media. He said the sale was “an important one for the Johnston Press businesses as it ensures that operations can continue as normal, with employees’ rights maintained, suppliers paid, and newspapers printed. “We will focus on ensuring the group’s titles continue to publish the high-quality journalism we are known for and which has never been more important.” John Ensall, Director of JPI Media, added: “In the

absence of another financial solution being available for the business, we are pleased to have reached this agreement to acquire Johnston Press, to protect the value of the business, preserve jobs and allow for the uninterrupted publication of its websites and newspapers.”

short of despicable. Egmont is treating independent retailers whose customers are loyal

NEWSPAPERS

purchasers of its titles with huge

DC Thomson shakes up team

contempt. “Justifying its actions, Egmont says it has the full support of its partners but that certainly wasn’t the case with Lego who thanked the NFRN for bringing the issue to their attention and took steps to ensure that all retailers, regardless of size, could order and receive their titles at the same time.” NFRN is seeking a meeting with Egmont to discuss the matter further and is also due to meet with executives from

DC Thomson Media has unveiled a new role of head of newspapers role as part of a shake-up of the company’s operations. The post will be taken up next month by Richard Neville, the editor-in-chief of the group’s morning newspapers. He will take on ‘editorial leadership’ for all newspaper titles in the group, although editors will retain responsibility for their own titles. Mr Neville will manage the group’s newspaper functions, including production and picture desk. DC Thomson owns The Press and Journal and Evening Express based in Aberdeen, the Dundee-based Courier and Evening Telegraph and The Sunday Post. Other changes include the appointment of Catriona MacInnes as editor of The Courier, making her the only female editor of a daily newspaper in Scotland. Alan McCabe will head up the newspaper editorial teams across The Press and Journal and Evening Express, and will take on the role of editor of The Press and Journal while Craig Walker will remain as Evening Express editor and Richard Prest will continue as editor of the Sunday Post. David Lord, the current deputy editor of The Courier, will take up the position of editor of The Evening Telegraph.

Seymour Distribution, which distributes Egmont titles. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | DECEMBER 2018

www.slrmag.co.uk

Research Digest

61% WORRY ‘HIGH STREET WILL DISAPPEAR IN 10 YEARS’

C-STORES ‘FALLING BEHIND’ ON FOOD-TO-GO

A new survey has revealed that the majority of shoppers have genuine concerns about the long-term future of the high street in general and independent retailers in particular.

ew research among 1,000 UK shoppers has discovered that 61% of consumers are increasingly concerned that the high street could be lost completely as yet more retail store closures hit the news pages. Carried out on behalf of KIS Finance, the survey found that how shoppers view the high street is changing rapidly, with more and more of them choosing not to visit it for a variety of reasons. Half of all those surveyed said they won’t visit high street stores around Christmas because shops are too busy, while 37% said they wouldn’t visit because there is less choice in-store than there is online. When asked about what would help get them back onto the high street and into local retailing outlets, the most common responses were “more staff to

ensure that the experience is quicker” (41%), “24hour service so that you can shop at any time” (27%) and “self-checkout service to avoid queues” (26%). Consumers were also asked what they think the high street will look like in 10 years. Independent retailers were listed as “the least likely” of 11 options to still exist, falling behind outlets such as restaurants, bars, clubs, travel agents and even second-hand shops. Holly Andrews, Managing Director at KIS Finance, said: “The reason why so many retailers are struggling with their stores is because consumer shopping habits are changing and the high street needs to change with it, creating a more communityled atmosphere with more accessibility and variety for everyone.”

SHOPPERS TO SPEND £21.6BN THIS CHRISTMAS ON FOOD

hoppers are predicted to spend £21.6bn over the festive period, according to the latest forecast from research organisation IGD. With nearly half (48%) of shoppers agreeing that food and drink is the most important part of Christmas Day, local retail has a key role to play on the 25th December, creating opportunities for people to honour annual traditions or create new ones. While 65% are planning to have turkey this year, nearly one in 10 (9%) will opt for a vegetarian or meat alternative.

www.slrmag.co.uk

Inside Business

Around 35% of shoppers admit to being tempted to buy certain food and groceries from adverts they’ve seen at Christmas (up from 29% in 2016) and they anticipate spending an average of £90 on their household’s main Christmas meal this year, with 33% estimating they will spend over £100. Vanessa Henry, Shopper Insight Manager at IGD, said: “Although Christmas is very much wrapped up in tradition, we’re starting to see some new and interesting trends emerging in the run-up to the festive period. In particular, and similar

to a trend we’ve seen emerging over the past year or so, there is a greater focus on vegan or vegetarian options for the main Christmas meal centrepiece. “Growing media and social media coverage, coupled with greater investment by both retailers and suppliers in these products, means more shoppers are considering these meat-free alternatives this year. “Although some families have unique food traditions that they stick to every year with certain foods, Christmas can also be a time to experiment with new and different products.”

The latest research from shopper insights agency HIM has revealed that independent convenience stores are missing out on the food-to-go category. The insight, from HIM’s exclusive Convenience Tracking Programme (CTP), was conducted through 20,000 face-to-face shopper interviews at 1,400 different convenience stores and found that average spend on food-to-go within independent convenience stores is just £1.40. This is more than 50p lower than the market average and more than £1.20 behind forecourts, the channel with the highest food-to-go spend across convenience. Across all food-to-go categories, forecourts perform better than independent c-stores, however there is clear disparity in hot drinks to go and sandwiches. Some 10% of shopper baskets within forecourts contain hot drinks to go versus less than 1% for independents and 7% of forecourt baskets include sandwiches versus 2% for indies. Blonnie Walsh, Senior Insights Manager at HIM said: “Food-togo has long been cited as a huge opportunity for convenience retailers to differentiate from competitors. However, our data shows that many independent retailers are failing to maximise this opportunity and are far behind their competitors. “Food-to-go shoppers choose stores based on different criteria and retailers need to capitalise on these opportunities. For example, proximity to work, range of products and friendliness of staff are more important to the FTG shopper than the average shopper. Retailers need to place extra focus on these areas in order to compete better, and suppliers and wholesalers must support retailers with the latest shopper trends to ensure that their offering remains relevant.” DECEMBER 2018 | SLR

Walkers sells over double its nearest competitor 1

Walkers is the nation’s favourite crisp brand2 and this year, celebrates its 70th anniversary. It continues to supply retailers with its trusted, and much loved core range, and sells more than double its nearest competitor1. Almost 90% of UK households buy PepsiCo snacking brands3, meaning that you can continuously count on Walkers to drive your snacking sales4. With the top 25 single SKUs accounting for 50% of all single sales5, stocking the right core range is essential to driving your sales and meeting consumer demand, along with staying well-informed of emerging trends. Shoppers want to see products they are familiar with, alongside innovation, giving them a wide variety of choice. Walkers also offers an unrivalled ‘better for you’ portfolio, a segment which is growing +38%⁶.

Merchandising Top Tips Shoppers are more likely to engage with gondola ends at the front of store, versus the rear, so retailers should refresh this space regularly with the latest new products in-store taking priority.

• Don’t forget about the core range and stock flrm favourites to drive sales – Walkers Cheese & Onion and Walkers Ready Salted are the best-selling single serve flavours in the crisps and snacks category7. Topping the charts in sharing formats, are Doritos and Sensations.

Make sure your ‘Better For You’ snacks offering isn’t left as an after-thought and is clearly signposted as healthier snacking options continue to grow – Walkers Oven Baked and Sunbites are brands consumers know and trust, so stock these along with Nut Mixes at the till point to increase impulse buys.

You can count on Walkers to drive your snacking sales

Matt Goddard

Wholesale Trading Director

What you need to know Almost 90% of UK households buy our snacking brands3

We own the top 4 SKUs in the impulse market7 Walkers owns 3 of the top 4 sharing brands in the impulse market8 Walkers offers an unrivalled ‘Better For You’ portfolio, a segment which is growing +38%6 ®

For information on how to make the most of your snacking sales visit www.countsformore.co.uk Source: 1. The total RSV for Walkers Crisps vs nearest competitor (Nielsen Scantrack, value sales MAT WE 09.09.18). 2. Based on total UK sales data, Walkers crsips were the best-selling crisps brand as recorded by Nielsen (52 week data to 18.11.17). 3. Kantar 2018 4. Siop y Pentref Dodmaels Walkers Savoury Snacks Products EPOS Data 76.2% LFL 2016 – 2017. 5. Nielsen Scantrack, value sales WE 04.08.18. 6. Nielsen, Total Impulse MAT WE 01.09.18. 7. Nielsen YTD, Total Impulse WE 15.09.18. 8. Nielsen YTD, Total Impulse WE 15.09.18.

BUSINESS BUILDING GETTING MORE OUT OF EPOS

MAXIMISE YOUR PROFITS WITH EPOS: WHAT’S STOPPING YOU? IN A NEW SIX-MONTH SERIES OF ‘HANDS-ON’ ARTICLES IN ASSOCIATION WITH PAYPOINT, SLR WILL OFFER A COMPREHENSIVE, EASY-TO-FOLLOW GUIDE TO MAKING MORE PROFIT BY LEVERAGING THE POWER OF YOUR EPOS SYSTEM MORE REGULARLY AND MORE EFFICIENTLY.

PAYPOINT ONE: OVERVIEW Built from the ground up after extensive consultation from local retailers and launched in 2016, PayPoint One has gone on to become the fastest growing EPoS platform in the UK convenience sector with more than 11,000 retailers now using the solution. enormously in the last 20 years from being viewed initially as expensive luxuries to being seen today as indispensible tools in running a modern store in today’s complex convenience retailing environment. While many stores operate to this day without any form of EPoS, that number is falling regularly as more and more retailers realise the benefits of having a system that can control and automate so many of the myriad tasks that must be carried out routinely every day if profits are to be maximised.

Created around an intuitive tablet-based platform that will be instantly familiar to all smartphone and tablet users, PayPoint One is available with no upfront costs and comes complete with integrated bill payment, card and parcel services.

PAYPOINT ONE

ew technology has begun to truly revolutionise the convenience retailing industry in the last five years and that revolution is only likely to gather pace over the coming half decade. New technologies promise to allow retailers to achieve all sorts of exciting ways of growing footfall, sales and profits – yet one of the most powerful pieces of technology available today is already found in most stores: the EPoS system. EPoS systems have evolved

A free mobile app connects retailers to their store in real time, giving them the freedom to run their business from anywhere. The solution comes with a free payment card PIN pad and an industry-leading 4-hour swap guarantee. Entirely cloud-based, all PayPoint One software updates to add new features and functions are carried out automatically and free of charge.

CONT.

IF YOU ARE INTERESTED IN FINDING OUT MORE

MANAGE PRICING AND TICKETING EASILY AND QUICKLY.

THE PAYPOINT ONE APP HELPS YOU CONTROL ALL BACK OFFICE FUNCTIONS FROM THE PALM OF YOUR HAND.

ACCESS ALL KEY DATA AND INSIGHTS INSTANTLY. Indisputably, however, a significant number of those retailers who do have EPoS systems make regular use of only a very small proportion of their system’s functionality and capabilities. There are many valid and understandable reasons why this is the case but in today’s ultra-competitive environment it pays to make use of every weapon in the armoury to build a stronger, more robust and more profitable business. That’s why we have partnered with PayPoint to build a six-month series of articles offering practical, hands-on advice for retailers on how to make more of their EPoS system. Launched in 2016, PayPoint One is now the fastest growing EPoS platform in the UK convenience sector with more than 11,000 retailers now using it to help them save time, get valuable business insights and grow profitability. Lewis Alcraft, Commercial Director for PayPoint, commented: “We’re delighted to have reached this significant 11,000 users milestone so quickly and that our retail partners continue to show a big appetite for

adopting cutting-edge technology in their store.” According to research by PayPoint and JWT (a division of Retail Connect), 46% of independent and symbol retailers view multiples as their biggest competition with 36% responding that having enhanced technology and a better understanding of their customers is their biggest opportunity for future growth. Using a modern EPoS system and making use of all of its capabilities is a great step towards achieving that goal of future growth and we intend to help you do just that over the next six months. We will demonstrate how you can make simple changes that benefit your business instantly and we will also tackle some more sophisticated challenges that will help you reduce costs, minimise administration, increase sales and, of course, improve your profits. PayPoint Group Marketing Director Steve O’Neill commented: “Our goal is to help our retail partners reduce costs, save time and increase

E ABOUT PAYPOINT ONE, CALL 01707 537 014.

CONT.

“PAYPOINT ONE CAN HELP DELIVER INVALUABLE BUSINESS INSIGHTS THAT WILL HELP RETAILERS MAKE BETTER-INFORMED DECISIONS IN KEY AREAS LIKE RANGING, PRICING, STOCK MANAGEMENT AND PROMOTIONS MANAGEMENT.” – STEVE O’NEILL, GROUP MARKETING DIRECTOR

BUSINESS BUILDING GETTING MORE OUT OF EPOS

STEERING GROUP PAYPOINT ONE: THE OPTIONS PayPoint One is available in three different packages catering for all users from the novice trying EPoS for the first time to the experienced user looking for one of the most sophisticated solutions on the market. PRO PACKAGE – £30 PER WEEK The Pro package allows users to take their business to the next level with PayPoint’s most comprehensive package. A high quality, feature-rich EPoS including bill payments and integrated contactless card payments as well as symbol supplier links to Nisa and Booker, with more in the pipeline. Real time business management, anywhere, with cloud back office access on any device to help you stay in control. KEY BENEFITSQ Manage your newspapers and magazines with PaperRound integration. Q Flexible product pricing – maintain pricing, promotions and price marking across a range or category using the app. Q Advanced reporting and analytics – your data your way, with a unique approach to reporting simply tag, group and filter sales to provide you with the most relevant data. Q Real time stock / Inventory management – reduce admin to track sales, orders and deliveries on the app allowing you to see and act on your stock holding in real time. Q Supplier integrations – set up and connect to multiple suppliers to receive price files and promotions unique to each wholesaler, simplify your ordering with one click submission and goods in. BASE PACKAGE – £10 PER WEEK Available exclusively to all existing retailers upgrading from the original PayPoint yellow terminal, this entrylevel package is the easiest way to trial PayPoint One. It makes the perfect cash register replacement and allows retailers to gain many of the benefits of the fastest growing EPoS system in the UK, including use of the app to track real-time sales.

“WE’RE DELIGHTED TO HAVE REACHED THIS SIGNIFICANT 11,000 USERS MILESTONE AND THAT OUR RETAIL PARTNERS CONTINUE TO SHOW A BIG APPETITE FOR ADOPTING CUTTING-EDGE TECHNOLOGY IN THEIR STORES” – LEWIS ALCRAFT, COMMERCIAL DIRECTOR

profits. Implementing a cutting-edge EPoS solution like PayPoint One can deliver instant benefits for retailers that they will see in the till and on their bottom line immediately and all with no upfront outlay. “Over the course of this series of articles we will tackle a whole range of topics where PayPoint One can help deliver invaluable business insights

As part of this project we will be creating a dedicated PayPoint One Steering Group who will offer their in-store experiences of how they have used PayPoint One to increase business insight, reduce costs, drive efficiencies, automate regular tasks and, ultimately, make more profit. The Steering Group’s aim will be to identify and share best practice that will benefit all PayPoint One users, as well as offering helpful advice and tips for users of other Epos systems. If you are a PayPoint One user and would be interested in joining and contributing to the group, please get in touch by emailing Antony at abegley@55north.com or by calling 0141 222 5380.

that will help retailers make betterinformed decisions in key areas like ranging, pricing, stock management and promotions management. “We will also be working with some of the 11,000 retailers who use PayPoint One to find out how they have used the system to reduce costs, save time and increase profits.”

CORE PACKAGE – £15 PER WEEK FOR RETAILERS UPGRADING AN EXISTING SITE, £20 PER WEEK FOR NEW CUSTOMERS KEY BENEFITS-

AT THE CORE

The Core package is the most popular option for PayPoint One customers and provides a cost-effective EPoS solution suitable for every convenience store. The package includes everything you need to run your business more efficiently and more profitably. The package includes news management functionality, a free mobile app, flexible product pricing and much more.

Q Manage your newspapers and magazines with PaperRound integration. Q Simple EPoS – scan products and take integrated card payments to provide a fast and efficient service at your counter. Q Easy setup – access to an online product file of over 100,000 SKUs, simply price your products as you scan, set up promotions with a step by step wizard and print shelf edge labels direct from your terminal in store or from the app. Q Real time reporting – see sales and profit as they happen with the PayPoint One mobile app and website dashboards. Q Fully integrated services – bill payments and card services on board. One basket, one payment.

FOR MORE INFO ABOUT PAYPOINT ONE, CALL 01707 537 014.

Healthy Living Programme

Inside Business

NEW YEAR, NEW DIRECTION FOR HEALTHY LIVING

The SGF Healthy Living Programme is set to launch into 2019 with renewed energy and vigour, as well as a range of all-new in-store materials including POS and stands. BY ANTONY BEGLEY

new year is set to bring a vibrant new look and direction for the SGF Healthy Living Programme (HLP) as it aims to encourage more local retailers in to use healthy eating events as a way of engaging with the local community. The HLP has been given a new lease of life since Kathryn Neil was named as Director in the wake of Ross Kerr’s retirement and with 2018 almost at a close, she is brimming with excitement about the challenges and opportunities that lie ahead for both the HLP and for Scotland’s local retailers. She told SLR: “There’s no question that 2018 was a year of change for the Programme and that meant a lot of work in the background but our sights are now firmly fixed on 2019 and there’s a lot to look forward to. “We will be unveiling some new activities and initiatives next year as we continue our drive to help and encourage local retailers to make sure they are offering their customers healthier options in-store.” As revealed at the recent Scottish Grocers’ Federation Centenary Conference, a major thrust of the HLP’s activity next year will be the roll out of a brand-new range of instore POS and equipment.

SLR | DECEMBER 2018

“We’ve been working on this for a while because we really wanted to get it right and ensure that the materials we’re providing to retailers really do help them grow sales and footfall,” says Neil. “We’ve learned a lot over the years about what works well in-store and also where there’s room for improvement. We’re confident that the new materials will deliver an even better performance in-store for retailers and will help grow sales of healthier products.” The new package includes a new ‘hero’ image, new POS and new HLP stands. “We believe they are really vibrant and impactful, and we hope that retailers will agree and will be keen to upgrade,” says Neil. Neil also says that 2019 will see fresh new initiatives from HLP but won’t be drawn quite yet on what exactly they are. “All will be revealed in 2019,” she says. “I can tell you, however, that we will be engaging more actively than ever with suppliers and retailers to capitalise on the increasing interest in healthier lifestyles and diets among Scottish consumers. I would encourage retailers to join us on that journey.” www.slrmag.co.uk

Join our first class team across Scotland… Join SPAR! • • • • • • •

SPAR, a trusted, award-winning brand Great product availability Best in class chill offer Margin enhancing, exclusive own brand offer Dedicated account management Regular store callage Business development, To join the best, not box pushers award-winning business in Scotland. • A business partner, Call us now on not a supplier 01382 512000

CJ Lang & Son Ltd, Longtown Distribution Centre, 78 Longtown Road, Dundee, DD4 8JU

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Inside Business

CJ Lang | The Big Interview

THE WINDS OF CHANGE BLOW THROUGH DUNDEE Dundee-based Spar Scotland wholesaler CJ Lang is reinventing itself under new CEO Colin McLean and a rebuilt senior management team. BY ANTONY BEGLEY

par Scotland wholesaler CJ Lang has always been something of a riddle, wrapped in a mystery, inside an enigma. One of Scotland’s oldest retail firms, it has for the entirety of that time been notoriously secretive about its business, largely doing its level best to avoid talking to the trade press or sharing anything more than it absolutely had to with those outside its four walls. So something was clearly afoot when the phone rang and it was new CJ Lang CEO Colin McLean on the other end of the line asking if SLR would be interested in coming up to the Dundee for a chat. To put that in some sort of context, previous CEO Scott Malcolm had never granted SLR a single interview during his entire tenure and was, moreover, very noticeable by his absence at the vast majority of industry events. He was less the quiet man than the invisible man. As CJ Lang approaches its centenary next year, however, a wind of change is gusting through the business under McLean, the former Chief Operating officer of Scotmid who joined the wholesaler in March this year. The main purpose of the invite to Dundee was to be talked through CJ Lang’s recently-published accounts. This is another remarkable first, given

SLR | DECEMBER 2018

that the company has historically declined to reveal its finances, forcing anyone interested to see how the business was performing to go trawling through Companies House data. “I know that historically we haven’t published our accounts,” says McLean, “but we’re in a new era now and we are keen to be more open and transparent about the business and about what our aims and goals are.” That was an encouraging opening gambit, as was the fact that McLean was joined in the meeting by Chairman Jim Hepburn and Finance Director Craig Tedford. Not only are CJ Lang talking to the press, they’re taking it seriously. So how had the year been, then? “Mostly in line with expectations,” said Hepburn with a broad smile, the clear implication being that expectations weren’t particularly high. The numbers to the end of April showed that while turnover had dropped slightly by 1.3% to £183.1m, margins had increased from 23.3% to 23.9%. Pre-tax profits were around £490,000, a fall from £925,000 in 2017. McLean described the financial year as “a tough period for retail and wholesale” and accepted that the business will need to develop and evolve in the near future, an approach that “will continue to require the

taking of difficult decisions that will protect the business in the future.” Core to that future is a revamped senior management team and the business hasn’t been afraid to take the difficult decisions that McLean refers to, luring Mike Leonard back from United Wholesale Scotland to take up the role of Sales Director and bringing Tedford in from Heineken. With the new management team in place, the business was in a good place to capitalise on this summer’s fantastic weather. “Yes, we benefitted from the great weather just as most retail and wholesale businesses did”, said McLean, “but I believe that having the new management team in place allowed us to really exploit the great summer to the maximum.

www.slrmag.co.uk

The Big Interview | CJ Lang

The proof of that is that for the months since the warm weather ended we’ve managed to sustain that growth.” As for the future, it’s all about getting back to doing the simple things well, believes Tedford. “In the initial phase we will very much be taking a back to basics approach, really trying to get store standards, customer focus and availability right across the business. As well as maintaining tight control on costs, our focus is on delivering long term profitable growth, both at retail and wholesale, by working closely with our retailers and suppliers.” There are, of course, a number of new initiatives planned that McLean “can’t talk about yet”, but insists that he will be more than happy to discuss them when the time is right. “We have some really great stuff coming down the line and we will be shouting about them and talking to the press about them when they happen,” he insisted. “The days of radio silence are over.” The addition of new company-owned stores is also planned for the next 12 months – “quality, not quantity” – and McLean says the business is more committed than ever to its independent Spar retailers. “We are supporting our retailers with market-leading

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Inside Business

deals while pushing record volumes through our distribution centre,” he commented. As CJ Lang approaches its 100th year in business next year, McLean and his team give the clear impression that things are changing in Dundee and they are prepared to make the tough decisions that are required to get this venerable business back on track and back in solid growth.

DECEMBER 2018 | SLR

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Product News & Media Watch Jumbo Choc Chips Dr. Oetker

Mini Babybel Spirolls Bel UK

With ‘supersized’ the current trend in Home Baking, Dr. Oetker’s latest foray into the category is twice as big as standard chocolate chips and is available in Milk Chocolate or Dark Chocolate variants. Both are available to retailers now in 125g packs at an RSP of £1.49. The launch is supported by a social media collaboration with Proper Tasty showcasing Jumbo Choc Chips recipes.

Chocolate & Granola Bars Gnaw

Rolling out exclusively in Asda from January, Mini Babybel Spirolls will be available to the convenience channel at the beginning of March. Available in cases of 12, each 85g pack has an RSP of £1.99 and contains five individually-wrapped 17g coils of cheese. These have no added colours, ﬂavours or preservatives The launch will be backed with TV advertising, a ‘try me free’ offer and shopper marketing.

Yazoo Kids FrieslandCampina

Gnaw says it’s combined health and taste with its three-strong range of Chocolate and Granola bars, comprising Milk Chocolate with Peanuts, British Granola & Seeds; Milk Chocolate with Cranberries, Raisins, British Granola & Seeds and Dark Chocolate with Orange, British Granola & Seeds (all 35g, RSP 99p, shelf-ready outers of 40). Contact 01603 501518 or wholesale@gnawchocolate.co.uk.

Flavoured milk drink brand Yazoo has relaunched its No Added Sugar range as Yazoo Kids. The drink features an unchanged recipe with new packaging that highlights the drink as a source of calcium, protein and vitamin B2. It is available in a 200ml single serve format, with RSPs of £1.60 (4-pack) and £2.40 (6-pack). Yazoo hopes the redesign will give shoppers “peace of mind” and also introduce new consumers to the category.

MEDIAwatch

Hotlines



Cadbury’s Secret Santa Cadbury’s 2018 festive campaign celebrates anonymous gifting, with a TV ad urging families across the UK to become a Secret Santa this Christmas. It features a variety of people donning a Santa mask to conceal their identity as they deliver Christmas gifts. It’s no secret that the gifts are all Cadbury products. The campaign runs to the end of December.

The great Christmas sprout debate Walkers is supporting its recent launch of Christmas dinner-ﬂavoured crisps – including a Brussels Sprout variant – with a new TV ad that asks people if they are either #SproutLovers or #SproutHaters. The ad is narrated by Gary Lineker and runs throughout the festive season, supported by digital and in-store activity.

Bru back with Snowman sequel Irn-Bru is back on screens with a follow-up to its Irn-Bru Snowman Christmas TV advert, which picks up the story where the original ended 12 years ago. The ad is on air for the whole of December and is supported by a high-impact media campaign incorporating PR, digital and social media as part of a £2m Christmas brand investment.

‘Try a new tradition’ with Pepsi Max B’Break Snacking Breads Country Choice

Great British Desserts Swizzels Swizzels has revealed the winner of its Sweetest Invention competition, which saw hundreds of entrants submit suggestions for a brand new sweet. The winning entry – Great British Dessert Chews – goes into production early next year. It is a mixed bag of individually-wrapped chew bars inspired by classic British dessert ﬂavours such as Sticky Toffee Pudding, Apple Pie & Custard and Strawberry Triﬂe.

This new range of breadsticks is designed to tap into demand for on-the-go snack products. Four ﬂavours are available, two sweet and two savoury. These are the savoury Two Olive & Rosemary and Chorizo. The sweet variants include Choc Chip and Muesli. All four ﬂavoured bread sticks weigh 70g, have a shelf life of one day and are packed in cases of 40.

Pepsi Max has rehashed last year’s ‘Try a new tradition this Christmas’ TV ad in a bid to drive trial of its core and ﬂavoured products. The new version highlights the Cherry ﬂavour in the end frame, as well as latest range addition, Ginger. Airing until end of December, the ad is supported by in-store and outdoor activation, sampling, digital activity and PR.

Varta powers up for Christmas Varta has launched its Christmas TV advertising campaign, which again features the ‘Max and the Train’ advert, offering a nostalgic look at Christmas over the decades. The campaign will reach an audience of more than 18 million consumers across multiple channels including ITV, Channel 4 and Sky 1, focusing on primetime slots.

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

DECEMBER 2018 | SLR

Feature

What’s In Store For 2019?

WHAT LIES AHEAD IN 2019?

Few local retailers would disagree that 2018 has been yet another tumultuous year for the industry with massive consolidation, legislative upheaval, economic uncertainty and shifting consumer patterns – so is 2019 set to bring more of the same?

s every year passes and every new year approaches, the one thing that seems to be a constant in the local retailing industry is massive upheaval. There’s little doubt that 2018 saw change on an epic scale once more with seismic shifts right across every aspect of the trade from yet more legislative challenges and constant economic uncertainty to huge consolidation and rapidly shifting consumption patterns. And that’s not to mention the many retail businesses that met their end over the last 12 months. So what lies ahead for the coming 12 months? Is it set to be more of the same? And where will the challenges – and opportunities – come from? SLR spoke to suppliers, industry bodies and retailers to find out what they think 2019 will bring and you can hear their thoughts over the next dozen pages…

KATE SALMON, EXECUTIVE DIRECTOR, SCOTTISH WHOLESALE ASSOCIATION 2018 has certainly been an interesting year for the wholesale and wider retail sectors, with legislation and numerous government consultations taking up much of our time and focus in Scotland. Last December, I said I couldn’t remember the last time our industry moved into a new year without some sort of legislation looming and 2019 is shaping up to be no exception. We are having input to the Scottish Government’s consultation on restricting the in-store marketing and promotion of foods high in fat, sugar or salt. In addition, we have met with Food Standards Scotland to discuss its consultation on the Scottish Government’s Out of Home strategy, which targets “promotions and marketing” for out-of-home 40

SLR | DECEMBER 2018

sectors – including restaurants, takeaways, sandwich shops, bakeries and coffee shops. Although the official consultation on DRS has closed, Zero Waste Scotland is continuing to work with us and others in developing the final scheme design. It is imperative that we ensure Scotland’s scheme is the right one for our members’ customers. Our Chief Executive (Designate) Colin Smith travelled to Sweden to look at schemes there and has been able to use his experience to contribute to the debate. Regarding minimum unit pricing we look forward to hearing from the Scottish Government on clarification and confirmation of the point that MUP does not apply to sales to trade. SWA is very much in favour of this and it confirms our view in previous submissions. It is our aim to work with other trade associations and stakeholders on several issues in 2019 as we strive for the best outcomes for our members across many areas of business. A collaborative approach provides us with the best chance to make our concerns heard loud and clear – and that strategy will serve us well in what looks like being another very busy year for our industry.

JOHN LEE, HEAD OF POLICY & PUBLIC AFFAIRS, SGF A key issue for the industry in 2019 will be encouraging more women to become retailers or to look for senior positions across the wider retail supply chain. This issue was brought forcefully to life at our most recent cross-party group on independent convenience stores in the Scottish Parliament. Our final meeting of this year looked at Women in Retail. We know from our Scottish Local Shop Report that 75%

of staff in the sector are female. However, as we all know, the stats often hide both the true picture and some underlying complexities. At the meeting we heard from several women store-owners (all award-winning retailers in their own right) about their experiences and how they have become not just successful retailers but successful business people. There were real positives but there we heard about the negatives too, particularly around struggles with work-life balance, the difficulty in devoting time to the business when you have caring responsibilities and the near impossibility of taking full maternity leave when you are running your own business. To help to address this SGF will begin to look at a mentoring programme for women in retail in 2019 which will hopefully become part of a wider discussion about how genuinely diverse and inclusive our industry is.

TOBY PICKARD, HEAD OF INSIGHT, INNOVATION AND FUTURES AT IGD The biggest trend of all in 2019 is likely to be the continuation of rapid and radical change in the food and grocery industry. We have already seen a significant pivot towards innovative new technology, and there is no sign of this letting up next year. Shoppers’ expectations have changed, and the retail and grocery sectors are working to meet those expectations in every area of business. We predict five specific trends will dominate in 2019: Data, and particularly customer data, will offer more personalised shopping Q Sustainability concerns will change the way retailers do business Q Stores will offer more seamless shopping experiences www.slrmag.co.uk

What’s In Store For 2019?

Q Healthy eating and wellness will grow in popularity Q Shopping opportunities will increasingly be available anywhere, anytime

MARK PAWSEY MP, CHAIR OF THE ALL PARTY PARLIAMENTARY GROUP FOR VAPING The All Party Parliamentary Group for Vaping that I chair has called on the UK Parliament to lead the way and act as example to other workplaces and public places by becoming vape friendly in 2019. Current arrangements do not adequately cater for the needs of vapers, with designated vaping areas being outside and unknown to most members of staff. Our ‘Vaping in workplaces and public places’ report is based on increasing evidence that vaping is a key process to smoking cessation, with Public Health England saying that vaping is 95% less harmful than smoking and vaping having already helped three

million smokers to quit or reduce their habit. However, messaging around vaping is still very confused, with some employers banning vaping in workplaces or even during working hours. Most recently, Dundee Council bosses threatened employees with disciplinary action if they vaped at all during working hours. Our key recommendations included encouraging employers to have a specific workplace vaping policy that balances the needs of current vapers or smokers looking to switch to vaping with those of non-vapers. We also believe that public places should have specific vaping policies that are separate to smoking regulations. Employers have an opportunity to help the UK government achieve its ambitious target to reduce smoking to less than 12% by 2022. For this to happen, it is imperative that we encourage employees trying to quit through vaping, by offering ﬂexible workplace vaping policies.

Buying or selling a retail business? If you’re buying or selling a retail-based business, it’s vital that you have a reliable and accurate stock valuation for the business. Whether it’s a convenience store, newsagent, petrol station, sports shop, card shop or retail store, we’ll ensure that your business sales are supported with the professional and accurate stock valuation you need. Our business sale and transfer valuation services include a thorough date check of all stock and margins agreed to maximise gross profit. We’ll agree the correct discounts to be used with all the parties to ensure a reliable and undisputed count, with detailed valuations and certificates produced on the day of the count for immediate use. We conduct business sale stock valuation for businesses across the UK including some of the biggest and best names in retail like Costcutters, Day-Today, Best-One, Londis, Lifestyle Convenience Stores, Mace, Premier, Best-In, Shop Smart, independent Spar stores and Keystores. Whatever your business schedule, we can support it. Stock counts can be carried out to meet whatever time scales you need to follow, including short-notice valuations.

R O TF S UN R O BE SC EM ! DI M W % F NO 10 SG www.slrmag.co.uk

Feature

KATHRYN NEIL, DIRECTOR, SGF HEALTHY LIVING PROGRAMME There’s no question that 2018 was a year of change for the SGF Healthy Living Programme and that meant a lot of work in the background, but our sights are now firmly fixed on 2019 and there’s a lot to look forward to. We will be unveiling new activities and initiatives next year as we continue our drive to help and encourage local retailers to make sure they are offering their customers healthier options in-store. We will also be rolling out an entirely new look for the Programme in early 2019 including new POS, stands and imagery. We believe the new look will retailers grow sales and footfall. We will also be engaging more actively than ever with suppliers and retailers to capitalise on the increasing interest in healthier lifestyles and diets among Scottish consumers. I would encourage retailers to join us on that journey.

Stocktaking:

We are professional, experienced and affordable. We specialise in providing professional and affordable

stocktaking services to convenience stores, retail stores and petrol stations throughout Scotland and the North of England, with a close eye, always, on maximising your profits. Over 40 years of experience ensures that we deliver a full range of stock counts, data based counts and EPOS stock file updates with a high level of accuracy, to your time-scale. We understand the long hours that you open, and your need to always be available for customers as a vital local business which means you need a stock take completed quickly and efficiently, at a time that suits you and your customers. That’s where we can help. Our many years of experience allows us to carry out your stock take quickly and efficiently, causing minimum disruption to your business, your staff, and importantly your customers.

Call Caroline or Ronnie today on 07863 599 126 / 07878 415 870 and let’s talk. Or go to: www.stocktakingservices.co.uk and, assuming you like what you see, email: info@crstocktakingservices.co.uk

We count ... so you don’t have to.

DECEMBER 2018 | SLR

Advertising Feature

What’s In Store

Why should 2019 be the year retailers decide to launch an in-store Post Ofﬁce?

DELIVERING INCREASED PROFITS

With even more bank branches scheduled to close next year, there’s plenty of opportunties for retailers who are ready to take advantage, as Post Office Network Transformation Director Neil Ennis explains.

he modern Post Office Local is designed to work in convenience stores with an open-plan layout and a small counter that sits next to the retail till. We like to work with people who are great with customers and can do a good job of selling our products – most retailers will already have the skills needed to run a successful Post Office franchise. As the Post Office brings in footfall there’s an opportunity to cross sell, and retailers who take on a Post Office find their sales increase. HIM research shows that one in three Post Office customers will buy three or more items in the shop when they visit, and 93 per cent of shoppers said they were more likely to choose a store because it had a Post Office. It’s not just footfall that a Post Office offers, retailers are also paid a fee per transaction. While the big banks continue to close branches the Post Office is maintaining its presence, and expanding franchises into new areas where there is untapped customer demand, and Post Office provides everyday banking services on behalf of all the high street banks as they disappear. If banking and mail services seem a bit more daunting than other concessions, there’s thorough training to ensure the whole

team are well equipped to serve customers with confidence. Some learning is classroom-based and a training team visits new branches spending around six days in store. Trainers will leave their mobile number in case there are followup questions and there’s online training and a helpline too. As part of the offer stores are kitted out free of charge with everything required to run the service including a Post Office terminal, cash, stock and marketing materials. For retailers who like the sound of having a Post Office there are lots of opportunities.

Visit www.runapostoffice.co.uk

SLR | DECEMBER 2018

www.slrmag.co.uk

Bringing you more customers with money to spend “I was delighted to have the opportunity to add a new Post Office branch to my shop, which is in the heart of my local community; it’s making it more convenient for customers to access a wide range of essential products and services.” Jim Earley Crown Stores and Post Office, Inverness

runapostoffice.co.uk

JET

THE fuel brand of independent Scottish dealers

From Dumfries in the south to Thurso in the north, and from Kyle of Lochalsh in the west to Duns in the east, JET’s network of independent Scottish forecourts is going from strength to strength. In Scotland alone, we supply over 1 billion litres of fuel every year to independent dealers, other oil companies, hypermarkets, major resellers, and commercial and marine customers.

“

JET stands out as the retailer undercutting the non-supermarket sector by 1ppl on petrol and 2ppl on diesel. Source – Forecourt Trader, August 2017

* Source: Phillips 66 analysis based on Catalist’s latest price data.

”

More and more Scottish dealers are making JET their fuel supplier of choice and here’s why... • Security of supply: JET is Scotland’s only branded dealer supplier with its own UK refinery – our 11 billion litre Humber Refinery supplies 15% of the UK’s refined needs • Competitive supply price: Our competitive supply price meant that JET was the lowest priced nonhypermarket fuel brand in Scotland in 2016* • Compelling fuel card offering: Our two fuel card options help maximise dealer margins. Our JetCard provides lock-in for local businesses and Fleetone provides national coverage for use at 3,000+ UK locations

• An award-winning standards and service programme: Our ‘Proud to be Jet’ standards and service programme rewards dealers who deliver high standards and offer excellent customer facilities • Big brand alliances: Our brand partnership with SPAR UK enables JET dealers to transform their sites into convenience destinations that maximise on both fuel and food sales • Retail support: Our compelling range of retail support services and partner offers help dealers to drive forecourt footfall and customer loyalty • Consumer promotions: At no cost to our dealers, our innovative national and local promotions have been proven to drive up forecourt footfall and fuel volumes

JET is 100% committed to the future of fuel retailing in Scotland and the continued expansion of our dealer network. We’d love to talk to you about how we could help your business thrive now and into the future.

W jetlocal.co.uk E connect2jet@p66.com JourneywithJET @JETPetrol

Advertising Feature

What’s In Store

What must independent store owners do next year to stave off the threats posed by discounters and online retailers?

STAYING RELEVANT

Steve Leach, Sales Director for Nisa Retail predicts growth in the convenience sector – but a number of problems must be solved first.

“

Over the coming year there is forecast to be some clear winners and losers in the UK grocery market. The winners are likely to be the discounters, online retailers and, importantly, the convenience sector. The reason for likely growth in the convenience sector is driven by a changing consumer profile and shopper mission. Consumers are shopping locally far more often inﬂuenced by a number of things including controlled basket spend, reduced wastage and in an increasingly busy age a need to pick up a last-minute meal solution, whether that be breakfast, lunch or dinner. There is also a sense that with a more sophisticated convenience proposition at their disposal, consumers are making the decision to shop with local businesses. The big challenge for convenience retailers also comes from the change in shopper mission. There is an increasing onus on fresh produce, healthy protein – often plant rather than animal based – and a reduction in the importance of alcohol and tobacco as the new generation adopt healthier lifestyles. The problem is the former of these are areas convenience retailers have historically struggled to compete in whereby the latter have been the life blood of those stores. So how can we change that to

SLR | DECEMBER 2018

ensure independent retailers can capitalise on the expected sector growth? Nisa partners now have the advantage of being able to stock Co-op own brand which opens the door to a far wider range of quality fresh lines with strong ethical sourcing credentials and a tried and trusted brand reputation. This is a real advantage for Nisa partners as the halo effect of having the recognised and trusted Co-op brand on shelf has the potential to not only drive profit through increased margin opportunities, but also grow sales through incremental basket spend as the product range is more conducive with building a total meal solution. Perhaps a bigger challenge to convenience than even the discounters though is the rise of online and we need to explore how we can help independent retailers in this respect. In a society where making a purchase online, through a website or app is almost second nature, we need to ensure that the local, community retailer remains relevant by embracing technologies and offering services that allow convenience retailers to either retail online themselves or to act as a delivery point for other online sales, through the likes of Amazon lockers and so on.”

www.slrmag.co.uk

O T D E T T I M M CO

S R E L I A T E R R OU SINCE 1977

“I chose Nisa and have stayed with them because of the wide range of chilled and ambient products available just a click away, with the best prices in the market and great promotions for our customers. I’m so glad to be a part of Nisa as availability of stock is great with great delivery services.

I joined Nisa as an independent retailer many years ago, then I moved my store under the Nisa brand fascia in 2016, when we rebuilt the whole new building and we designed our store with Nisa’s outstanding designing and merchandising team. Recently we’ve also had a great chance to try Co-op’s best-selling own-label range which has increased my shopping basket.”

Join the family... visit www.join-nisa.co.uk

I’m looking forward to what’s to come in the future with Nisa. Mahmood Saleem, Nisa Local, Ardeer Services, Stevenston, Scotland

Advertising Feature

What’s In Store

THE SHAPE OF SNACKS TO COME Mark Stananought, Sales Director of the Impulse sector at Mondelez International, sets out what to expect from the confectionery giant this coming year.

uring 2018, we’ve seen snack sales grow, primarily driven by changes in consumer habits. Busy lives are giving rise to different snacking opportunities, with consumers seeking snacks that work within their ‘on the go’ lifestyles1, while being more deliberate with their choices and seeking out both more permissible and more premium snacks. As the market leader – with 34.4 per cent of the chocolate market alone2 – we offer a range that aims to suit these changing consumption states.

agenda. At Mondelez, a team of 20 scientists, nutritionists and chocolatiers worked for almost two years to find a way to achieve the much-loved Cadbury Dairy Milk taste, while delivering 30% less sugar with no artificial sweeteners, colours or preservatives and no increase in calories, in a product set to be brought to market in 2019.

milk chocolate too sweet, and dark chocolate too bitter5. This knowledge inspired one of our biggest announcements of 2018, Cadbury Darkmilk. The bar will launch in 2019 with two variants – Cadbury Darkmilk Original and Cadbury Darkmilk Almond – both made with 40% cocoa to provide a more grown up taste, balanced with a delicious creamy

* 1. 2. 3. 4. 5. 6. 7. 8.

In candy, we have exciting Trebor news for January, with two new products set to be added to the brand’s growing sugar free range, which have been specially designed in line with ﬂavour trends – watch this space.

UNDERSTANDING THE CONSUMER At Mondelez we work hard to really understand our consumers to ensure we launch products to meet demand. Our research highlighted that our taste buds change as we get older, with some consumers finding

Prices are recommended only. Retailers are free to set their own prices. Forbes, Hartman group, SHS food think. Nielsen Total Coverage - Data 4W TO WE 11.08.18. IGD. Global Shopper views on protein 2015. Wy Research June 2018. Euromonitor 2016. Nielsen, value MAT, 4 weeks to w/e 21.04.18. Price-marked packs are recommended prices only. Retailers are free to set their own prices. 9. Nielsen to w/e 19.05.18 10. Non-PMP packs are available. Retailers are free to set their own prices.

SLR | DECEMBER 2018

THE PREMIUM OPPORTUNITY The trend for ‘trading up’ has continued to grow throughout 2018 as premium chocolate has grown fast, bringing in new, higher value shoppers. Capitalising on this, Green & Black’s (+ 11.1 per cent9) launched two new singles bars this summer; Green & Black’s Trufﬂe and Green & Black’s Praline – which are ethically sourced and contain no artificial ﬂavours, preservatives or colours.

EXCITING THE CONSUMER IN STORE

PERMISSABLE TREATS We’ve continued to see that consumers are striving to live a more balanced lifestyle, with the majority of shoppers attempting to improve their diet3, while not willing to forgo on taste (83 percent of mainstream ‘protein interested’ consumers will not sacrifice taste4). This is why Cadbury launched the Boost + Protein bar in July, which features special protein crisps, to ensure that it delivers the same chewy caramel Boost taste, with four times more protein and 32% less sugar than the standard Boost bar. We know that reducing sugar intake is also high on the

trust with the convenience of clear pricing.

and smooth texture to achieve a truly satisfying bite that melts instantly in the mouth. To target the on-the-go consumer, we launched JoyFills in August, which are convenient, bite sized treats that deliver on delicious taste, while being light and easily transportable to slot into active days. The range launched with four variants endorsed by two power brands; the world’s number one biscuit brand6, Oreo, and the nation’s brand, favourite chocolate7 Cadbury. Another brand that is particularly prominent at this time of year is Halls. This year, we overhauled our pack design to help bring the key product qualities to life. This offered great opportunities for convenience, as the design launched in PMP8, which helps retailers generate improved ROS through stand-out on-shelf, while boosting customer

We aim to drive incremental sales with impactful POS and engaging in-store activations that bring our brands to life. With that in mind, we’ve just hosted our biggest ever on-pack promotion, Cadbury’s Match & Win with the Premier League, which spanned across more than 203 million packs (standard and PMP10). Plus, our next Premier League promotion will kick off in January 2019, with the aim of helping retailers score even more impulse sales. I couldn’t close without highlighting the importance of Christmas and Easter, and how crucial it is to create ‘theatre’ in your store around these critical times. For Easter 2019, we recommend getting a ‘fast start’ in January, and our eggciting promotion, ‘Hunt the White Creme Egg’, will help you do this with eye-catching POS and engaging prizes. Plus, if a customer wins in your store, you’re store can win up to £1,000. www.slrmag.co.uk

*Euromonitor 2016 **Nielsen, value MAT, 11.08.18

Advertising Feature

What’s In Store

JOIN J THE CLUB

TI hit the ground running in 2018, re-launching its heritage Scottish brand, Kensitas Club, with the introduction of a lower RRP and a new Superkings SKU, as well as launching three new Value products into JTI’s Capsule range; Sterling Dual Superkings 20 and Double Capsule King Size 20, and B&H Blue Dual Superkings 20. Kensitas Club saw enormous success, becoming the fastest

1 2 3 4 5 6 7 8

Nielsen Market Track Jan 2018 to October 2018 (based on slope calculation) Nielsen Market Track this year to October 2018 (based on slope calculation) Nielsen Scantrack Category Database August 2018 Nielsen Market Track MAT October 2018 (Cigar data MAT September 2018) Nielsen Market Track October 2018 Nielsen Market Track MAT October 2018 vs. MAT October 2017 (Increase in Sales Value) Nielsen Market Track MAT October 2018 Nielsen Market Track Scotland data October 2018 vs. January 2018 Nielsen Market Track October 2018

SLR | DECEMBER 2018

www.slrmag.co.uk

growing cigarette brand in Scotland1, and all three Capsule products showed strong performance over the course of the year, with Sterling Dual Double Capsule becoming the fastest growing Capsule product in the UK in 20182. As we enter 2019, tobacco remains the biggest FMCG category3 – with the total UK tobacco market currently worth £14.4 billion4 – and continues to present opportunities for retailers to maximise sales in the year ahead.

Ross Hennessy, Head of Sales at JTI UK comments, “There are two clear trends in the current tobacco market that we expect to continue in 2019: the growth of the Capsule segment - which is now responsible for 15.4%5 of total cigarette sales in the UK – and the growing Value segment, as consumers seek out value for money products. The RYO category has also increased 8.3%6 year on year and now generates sales worth over £2.7 billion7 in the UK. We’re committed to helping retailers maximise their sales and will continue to launch innovative products to the market, in line with consumer demand.” Following the success of the Kensitas Club re-launch in Scotland, resulting in a 1068% increase in volume since January8, JTI also introduced the brand’s first rolling tobacco variant in August. The new product joined the manufacturer’s popular

RYO portfolio which includes Sterling Rolling Tobacco, JTI’s No.1 Value RYO offering9. In October JTI announced new, lower RRPs for three of its most popular Value RYO brands, and with the Value roll your own segment expected to continue growing in 2019, JTI predicts that Kensitas Club Rolling Tobacco will boost volume sales in a similar fashion to the successful brand re-launch earlier this year. Q Kensitas Club King Size, RRP £8.35 Q Kensitas Club Superkings, RRP £8.35 Q Kensitas Club Rolling Tobacco 30g pouch, RRP £10.50 Q Kensitas Club Rolling Tobacco 50g pouch, RRP £17.30

Q Retailers are free to price as they choose. Prices correct as of 29th October 2018

Thank you!

FOR HELPING MAKE KENSITAS CLUB THE FASTEST GROWING BRAND IN SCOTLAND1 £8.35 * RRP

£8.35 * RRP

£17.30 * RRP

£10.50 * RRP

For more information, Kensitas Club retailers should speak to their local JTI representative or visit www.jtiadvance.co.uk 1 Nielsen MarketTrack November 2017 to August 2018 *You are at all times free to sell JTI's products at whatever price you choose.

“Everyone across the One Stop business is incredibly proud to have won this award for the second time in 3 years. This award reflects the excellent customer service, hard work, passion, commitment, determination, and going the extra mile every day in local communities, which our franchisees, families and teams do for our customers and each other. Our franchisees are the best and we are so proud to accept the award.” John Miller, Head of One Stop Franchise.

2018

Franchise Group of the Year

WINNER FRANCHISE GROUP OF THE YEAR

THANKS TO ALL OUR AMAZING FRANCHISEES

Joining One Stop: the multi award-winning franchise group ✔ We’ll co-invest up to £50,000 into refitting your store. ✔ Once a store becomes a fully-refitted One Stop, their weekly sales

increase on average by more than 14% in the first 13 weeks. ✔ In 2017/2018 our franchises saw over 6% like-for-like

growth, transactions increased by over 11% and basket spend by more than 5%.

And the benefits don’t stop there. So get in touch and we’ll be happy to talk you through why customers love the One Stop offer and why it’s proving so successful for our franchises. Or – even better – we’ll put you in contact with one of our franchisees, so you can hear first-hand how we’re making a big difference to their business. JOIN A MULTI AWARD-WINNING TEAM For a no-commitment conversation about joining One Stop call 01543 363 003 or email us today at JoinUs@onestop.co.uk

FOR MAKING OUR BUSINESS THE SUCCESS IT IS

UTC

PLEASE LET ME INTO THE XMAS SPIRIT! Christmas can be an awfy thirsty time of year in UTC’s experience, combining as it does a whole range of enforced activities that UTC spends the rest of the year actively avoiding. Things like eating turkey, putting up with the grandweans, watching Ben Hur and spending time with Mrs UTC. So picture the smile on the old boy’s dial when he heard about a new event at nearby Glengoyne Distillery. Tantalisingly enough, the ‘Behind The Scenes’ event presents the opportunity for a few lucky ticket holders to “get the keys to the distillery” for a day.

CANNAE SEE THE POINT Technology, UTC grudgingly admits, can be a wonderful thing but oftentimes he just cannae see the point of some of it. Well, a lot of it. A recent case in point is the world’s first “invisible cinema” which projects films that are completely invisible to the naked eye and can only be seen through a special pair of glasses. The screen will be delivering several “invisible cinema” experiences over the next few months, touring universities around the UK. “What’s the point?” asked the auld yin. “What’s the point in making a screen that you cannae see without special glasses?” And to be fair, he has a point. The press release, from Santander, said the technology “offers cinema-goers a unique experience”, which is probably true but, to paraphrase the auld yin, giving cinema-goers’ genitals a good going over with a cheese grater while they watch the film would also be a unique experience, but that doesn’t necessarily make it desirable. Anyway, it turns out there was a point. Santander went to all this effort and expenditure to “educate and underline to young adults the importance of keeping banking and personal data to themselves to avoid falling victim to scammers”. Obviously. 54

SLR | DECEMBER 2018

[I don’t think Glengoyne mean that literally auld yin, so I wouldnae get too excited – Ed.] For only £180 a ticket, UTC could be one of just 36 folk to get “immersive whisky tastings”, an “exclusive first taste of Glengoyne’s not-yet-released new whisky for 2019”, “a threecourse, whisky-paired lunch” and “a signed bottle of Glengoyne’s much-anticipated new release”. If that doesn’t take the edge off of having to spend Christmas with the family then nothing will.

LIES, DAMN LIES AND CHRISTMAS TREES

Regular readers of this page know that the auld yin loathes press releases tarted-up as legitimate research. So when he received a release last month about how “there’s no such thing as too early when it comes to dressing venues with Christmas trees and decorations” he decided to hold it over for the following issue – out of pure spite. (By the time you read this it’ll be too late to be early with your in-store Christmas trees.) Said press release outlined research carried out on behalf on Christmas Tree World, the “UK’s leading retailer of artificial Christmas trees” who clearly would have no vested interest in the findings concluding that we should all be putting Christmas trees up as of about July each year. Lo and behold, the people doing the survey managed to get about one in six of the respondents to agree that venues such as “shopping centres, restaurants or pubs should put their Christmas decorations up as early as October”. The survey, carried out as we recall for the “UK’s leading retailer of artificial Christmas trees”, also concluded that “an artificial Christmas tree looks better than a real one”. Which prompted UTC to offer his oft-repeated hangover cure, which involves giving yourself a rub down with a Sporting Life and a pull through with a Christmas tree. A real one, of course.