SLR January 2020 by 55 North

JOHN DUNNE

UKVIA director sorts vaping fact from fiction

PETE CHEEMA

SGF boss demands ‘smooth Brexit’ JANUARY 2020 | ISSUE 201

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‘LOW AND NO’

Healthier living drives big changes

THE GREEN OPPORTUNITY

Environmental concerns are already influencing consumer buying decisions - so is it time for retailers to take ownership of sustainability?

SLR Rewards 2020 open for entry! www.slrawards.com

FRESH START?

The perfect time to find a fascia partner?

BORIS JOHNSON

The PM... in his own words

January 2020

Contents

Contents ISSUE 201

NEWS p4 p5 p6 p10 p20

p22 p23

Business Costs Trade associations voice concerns over handing control of business rates to councils. Deposit Return Scheme Holyrood committee reports on the proposed draft regulations for Scotland’s DRS. Wholesalers CJ Lang reveals plans for a massive investment in both its stores and delivery fleet. News Extra Brexit Industry calls for a frictionless withdrawal from EU in wake of general election result. Product News As consumers look to counter the excesses of the festive season, Burton’s launches the ‘Under 100 Cal Club’. Off-Trade News New Scottish alcohol-free brewer Jump Ship Brewing gets under steam with first product launch. Newstrade Latest figures show UK newsbrands still reach far greater audiences than Facebook and Google.

INSIDE BUSINESS p26 Cloud Chasing 2 UKVIA John Dunne, Director of vaping industry body UKVIA, spoke at SLR’s recent Cloud Chasing 2 event and dispelled many myths around the US vaping health scare. p30 SLR Rewards The most Rewarding awards in local retail are back for 2020 and open for entry. p33 Hotlines Kepak rustles up its first veggie burger in this month’s roundup of the latest NPD. p46 Under The Counter It may well be a New Year, but it’s the same old Curmudgeon-In-Chief. FEATURES p34 Low & No Products The growth of the low and no consumer trend across many key categories shows no signs of abating, fuelled by product reformulation and NPD. p38 Fascia Guide If you’re thinking about changing symbol group – or joining one for the first time – then you’ll want to read our fascia guide.

ON THE COVER p14 Sustainability Thanks to everyone from Greta Thunberg to David Attenborough, sustainability has never had a higher profile – but are retailers keeping up?

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JANUARY 2020 | SLR

News BUSINESS COSTS Concerns voiced over scrapping of uniform business rate

Nisa retailers support food waste initiative Nisa partners are among the first independent retailers to sign up to an initiative that helps tackle food waste while also recovering some costs for unsold stock. Too Good To Go lets retailers dispose of short-dated food by listing it on an app and selling it to shoppers at a discounted price. Nisa is working with Too Good To Go to encourage more retailers to sign up to the app and trial the scheme.

Henderson Tech tops up awards tally Henderson Technology, provider of the award-winning EDGEPoS EPoS platform, is celebrating after picking up two more gongs in Northern Ireland, where it is based. It won the ‘Innovative Business of the Year’ award at the Business Eye Awards, and ‘Mobile App of the Year’ award for its partnership with Gander and successful launch of the Gander app at the inaugural Belfast Telegraph IT Awards.

AF Blakemore signs up for Refill campaign AF Blakemore, the Spar wholesaler for Central & South East England & Wales, has become the first convenience retailer to join the Refill campaign to help reduce plastic waste. It has registered 68 of its companyowned stores on the Refill app, which lets people search for places where they can fill up water bottles for free. The app features more than 25,000 refill stations nationwide.

Barcode creator checks out George Laurer, co-inventor of the barcode, has died at the age of 94. Fellow IBM employee Norman Woodland came up with the concept of the so-called Universal Product Code, but it took Laurer’s development of a scanner that could read the codes before the idea exploded. The humble barcode revolutionised retailing, doing away with price stickers and

Don’t let councils set business rates, Finance Secretary is warned Representatives of three leading trade associations – Scottish Retail Consortium, FSB Scotland, and UKHospitality – met with Finance Secretary Derek Mackay in Stirling on 4 December, to discuss concerns over the scrapping of the uniform business rate. In a joint statement afterwards the three business groups said: “The meeting with the Finance Secretary was a useful opportunity to highlight our profound concerns after last week’s vote in Parliament to scrap the uniform business rate. “Taking business rates out of the hands of Ministers and handing control over this £2.8 billion tax to councils places a big question mark over existing Scotland-wide rates reliefs, such as the Small Business Bonus scheme. Firms fear this move could lead to higher business

David Lonsdale (SRC), Stuart Mackinnon (FSB), Finance Secretary Derek Mackacy and Willie Macleod (UKHospitality) rates bills for both large and small organisations, at a time when the poundage rate is at a 20-year high. It remains unclear too what this change would mean for the finances of rural and less well-off local authorities and therefore ultimately for rates bills in these areas.

DEPOSIT RETURN SCHEME RVM producer unveils solution for smaller c-stores

Scotland inspires new small footprint reverse vending machine Scottish retailers have inspired the design of a new compact machine from reverse vending specialist TOMRA. Visiting stores in Scotland, TOMRA saw many retailers would face a challenge with space and listened to industry feedback as talks on a Scottish deposit return scheme (DRS) gathered pace. It has now created a new compact machine, the ‘TOMRA M1’ concept, inspired by Scottish retailer feedback. The M1 is scheduled to enter production before the Scottish Government officially launches a DRS (expected in 2021). Truls Haug, Managing Director for TOMRA Collection Solutions UK & Ireland, said: “We are extremely

proud of the TOMRA M1 which was born out of visits to Scottish stores alongside retailers. “It has been specially designed with smaller retailers in mind. We asked store owners about any concerns they had about participating in a deposit return scheme and there were two in particular – space and cost. “As a result, the TOMRA M1 concept is space efficient; it can handle all three materials that are likely to be included in the Scottish DRS system – glass, PET bottles and cans; and it does so for an affordable price.” Retailers got a sneak preview of the new machine at the recent SGF Conference in October.

“The lack of any impact assessment to accompany this fundamental change in rates policy and what it will mean for ratepayers, for existing reliefs, and for councils themselves, is troubling. MSPs must revisit this amendment to the law at the earliest opportunity.” PAYMENT SERVICES

PayPoint profits take a tumble PayPoint’s latest interim results have revealed a 5.2% drop in pre-tax profits for the payment services provider. Figures for the six months to 30 September 2019 also showed a 3.7% drop in operating margin to 42.1%. Revenue also fell 2.3% to £103.7m, although net revenue increased 3% to £57.3m. A further 2,207 PayPoint One terminals were installed over the period, taking the total to 15,088. PayPoint had originally set a target of 15,800 installations for 31 March 2020; it has now revised that upwards to 16,500. There are plans for further investment in the platform during the second half of the year to expand its EPoS features.

ushering in the age of EPoS. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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News DEPOSIT RETURN SCHEME Committee of MSPs think DRS implementation in under a year “challenging”

MSPs report on Deposit Return Scheme regulations The Holyrood committee overseeing the implementation of DRS has published a report on proposed draft regulations for the scheme. The full report runs to 83 pages and can be viewed at bit.ly/2PAbBXu. In it, the committee considers that the ambition to have the Scheme operational within 12 months of passing the Regulations may be challenging in practice. Despite industry calls for glass to be introduced to the scheme after an initial ‘bedding-in’ period for plastic and metal – or even excluded entirely – it is the committee’s view that the scheme should be as comprehensive as possible and retrofitting glass at a later date would be “challenging”. The committee encouraged the Scottish Government to work closely with the glass industry to address concerns in the development of the scheme. It also asked the Scottish Government to clarify how the glass industry will be represented on the

Implementation Advisory Group or on other working groups. The report also questions the flat rate 20p deposit. The committee thought there should be scope for the Scheme Administrator to set a variable rate, for example based on product size. Concerns have been raised that consumers – to deposit outlay as low as possible – may start buying sugary drinks in larger formats rather than multi-packs, or switch to buying a bottle of spirits rather than cans of beer for the same reason.

It was the Committee’s opinion that, similar to retailers, the the Scheme should be cost neutral for wholesalers. It asked the Scottish Government to give assurances on this and provide clarification on how additional costs to wholesalers would be treated. Furthermore, as part of an “industry-led” scheme, the Committee recommended that wholesalers should take part in its administration. Before laying the final Draft Regulations, the committee asked the Scottish Government to forecast when DRS is likely to be operational and what key actions need to happen in order for that deadline to be met e.g. time-frames for setting up the Scheme Administrator; development of labelling / identification and IT systems; any new infrastructure (with associated planning / consents) including reverse vending machines and counting centres; and developing enforcement and monitoring mechanisms.

Alloa armed robbery A 24-year-old male shopworker was left shaken but unhurt after a knife-wielding thug held up the Premier store in Medwyn Place, Alloa. The robbery took place around 6pm on Saturday 14 December. The bandit, who spoke with a local accent, fled with a sum of cash along Forbes Street. Police are hunting a 6ft tall white male who wore a black hooded jacket, dark baseball cap with white trim, navy tracksuit bottoms and black trainers.

Doughnut Week dates announced National Doughnut Week will return next year from 9 to 16 May, to raise funds for The Children’s Trust. The event has run every year since 1991, when it was launched by Christopher Freeman, owner of Dunn’s Bakery. The 2019 edition raised over £20,000 with the help of hundreds of independent retailers. The registration date will be announced this month at nationaldoughnutweek.org.

Addo holds steady Addo Food Group, a producer

DEPOSIT RETURN SCHEME Boffins accuse industry of ‘riding roughshod’ over public’s wishes

Academics demand ‘allin’ DRS to save beaches Academics have called for Scotland’s forthcoming deposit return scheme to include drinks containers of every material. In a letter to The Scotsman newspaper (5 December), six boffins said: “Holyrood must hold its nerve and ensure no materials are excluded from the proposed DRS scheme on the back of industry pressure.”

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It was signed by senior marine and environment academics from the University of Edinburgh, Edinburgh Napier University and Heriot-Watt University. They believe that only an all-in deposit return scheme will truly benefit the environment and put and end the blight of litter on Scotland’s beaches. The letter also said “special interests” were lobbying for certain materials to be excluded from the scheme, “riding roughshod over the public’s concerns about oceans and wildlife”. “In 2020 Holyrood must hold its nerve and ensure no materials are excluded from the proposed DRS scheme on the back of industry pressure.”

POST OFFICE

Post Office settles dispute The Post Office has agreed to pay out £58m in a longrunning dispute with 557 Subpostmasters over its faulty Horizon IT software, which caused shortfalls in a number of branch accounts. Some Subpostmasters were bankrupted as a result, while others ended up in prison. In a case which started before the settlement was reached, High Court judge Mr Justice Fraser also ruled in the workers’ favour. He said there was a “material risk” that Horizaon caused shortfalls in Post Office branch accounts. The ruling is the first step in overturning the convictions of the Subpostmasters who were accused of fraud or theft.

of chilled savoury products and owner of the Wall’s Pastry and Pork Farms brands, has had a steady year in terms of sales with annual turnover increasing by 12% to £312m from £278m in the previous financial year. During the period that ended 30 March 2019, operating profit before exceptional items saw a slight increase in pre-tax profits to £7.6m from £7.5m.

GroceryAid raised £65k with carol concert The annual GroceryAid Carol Concert raised £65,000 to provide support for grocery colleagues in need. A drinks reception was held after the concert. Next year marks the 20th anniversary of the event, which will be held on 9 December. Email events@ groceryaid.org.uk or call 01252 875925 to register your interest.

JANUARY 2020 | SLR

News WHOLESALERS Bank deal fuels Spar Scotland wholesaler’s driving ambition

Bestway partners with Uber Eats Bestway Retail has teamed up with Uber Eats to let consumers order from a range of over 700 alcoholic drinks, snacks, and convenience products via the Uber Eats app. An initial pilot of 81 Wine Rack, Bargain Booze, Select Convenience and Central Convenience Stores will enable Bestway to learn quickly and understand the size of the opportunity before rolling the concept out to other convenience retailers who buy from the wholesaler.

PayPoint partners with FedEx FedEx has teamed-up with PayPoint and joined the Collect+ network, giving its customers drop-off and pickup services at more than 2,300 Collect+ stores across the UK. As the UK’s largest independent store-based delivery and returns service, 77% of urban residents currently live within one mile of Collect+

CJ Lang unveils huge store and fleet investment Spar Scotland wholesaler and retailer CJ Lang plans to replace and develop its distribution assets over the next two years following an eight-figure refinance transaction with HSBC. The Dundee-based business intends to make its delivery vehicles more efficient and explore alternative fuelling options such as electric or gas power for its trucks. It will also use the capital refinancing from HSBC to invest in its stores’ fixtures and broaden its offer, especially in the food-to-go category. The upgrades are part of the implementation of CJ Lang’s fiveyear strategic plan. CJ Lang operates around 100 company-owned stores and supplies to approximately 200 independent retailers. Craig Tedford, Financial Director, CJ Lang, said: “The support from

HSBC UK is allowing us to put our five-year strategy into practice, with the overall aim of modernising and improving our offer and assets for the benefit of our customers across Scotland. “We also believe that these improvements will help us develop our customer base and attract new

independent retailers to the Spar business.” The finance was allocated from HSBC UK’s national SME Fund, which aims to actively support UK businesses realise their ambitions for growth and navigate Brexit. The fund has £650m earmarked for SMEs in Scotland.

locations, while 80% of rural residents live within five miles.

Check out Scotmid Scotmid launched a special tartan produced in conjunction with Perthshire-based The House of Edgar, as part of the Society’s 160th anniversary celebrations. The tartan, which incorporates the familiar Scotmid blue, is “a distinctive design that encapsulates the role Scotmid has played at the heart of local communities over the past 16 decades – instantly recognisable and warmly familiar”.

Cig smugglers jailed Three men caught with 10.9 million illicit cigarettes at a farm in Yorkshire have been jailed for a total of more than 10 years. HMRC officers busted the criminals loading cigarettes into a van in September 2018. A subsequent search uncovered illegal tobacco products worth £3m in unpaid duty. The trio admitted excise fraud and were all handed prison sentences of

TRADING McColl’s boss bullish despite lacklustre numbers

McColl’s ‘making progress’, says Miller McColl’s Retail Group has reported a fall in total revenue of 1.9% for the year ended 24 November. It said this reflected store divestments as it progresses with a store optimisation programme. Total like-for-like sales stayed level year-on-year, compared to a 1.4% drop in 2018. Adjusted earnings before tax are expected to be £32m, marginally below expectations due to unseasonable weather and lower consumer confidence in the second half of the year. The Group continues to make progress with its debt reduction programme, with net debt down to £94.1m from last year’s £98.6m. The business, which struggled in the wake of the Palmer & Harvey collapse, said it had improved onshelf availability and advanced its category review programme.

It is also trialling a new scalable food-to-go format, an Uber Eats partnership and “improved customer segmentation of the estate”. McColl’s Chief Executive Jonathan Miller said: “While 2019 has been another challenging year for the business, we have made good progress against our goals of operational stability and good retail execution. We are also pleased to confirm that we have continued to reduce net debt, with further progress anticipated due to our ongoing capital discipline. “The fundamentals of the convenience channel are strong and we remain a resilient, profitable and cash generative business. We are confident in our plans to rebuild momentum in 2020, and look forward to providing a fuller strategy update at our Preliminary Results in February.”

SYMBOL GROUPS

Nisa’s surge in store recruitment Nisa has recruited over 500 stores in the last 12 months, a 40% like-for-like increase in the year to date. It put this growth down to increasing availability levels, `improvements to delivery services including the introduction of next day delivery, and continued investment in Nisa’s Evolution EPoS system and its Evolution store format, which has delivered an average 12% uplift in sales on conversion. Nisa said the rollout of Co-op own brand products over the past year had been “a major game changer” for its wholesale business, accounting for around £2.5m in sales per week. Alignment with the Co-op’s promotions have also driven sales for Nisa retailers.

more than three years each. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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OILS CONTAINING THC AND VITAMIN E ACETATE ARE NOT, AND HAVE NEVER BEEN, ADDED TO OUR VYPE PRODUCTS For more information call 0808 169 5000

For adult smokers and vapers only. Vype e-cigarettes contain nicotine. 18+ only. Read leaflet in pack. All Vype products comply with UK and EU law and all our ingredients have been tested for their suitability for vaping.

News Extra

Brexit

NewsExtra THE GROWTH OF ‘LOW AND NO’ CONTINUES P34 BREXIT Industry bodies call for frictionless trade during transition period

TIME FOR A SMOOTH BREXIT Convenience Matters with the SGF Local is one of those words which pretty much everyone feels positive about: the local shop, the local community, the local neighbourhood. That might be about to change. The Scottish Parliament Local Government Committee is currently looking at new legislation on business rates – always among the top two or three costs faced by local retailers – and as part of the process has just accepted an amendment to the Bill which potentially hands control of business rates over to local authorities. So far so bad, but this also means that the existing rate reliefs such as the small business bonus (which is vital for convenience in Scotland) could be scrapped. You don’t have to be cynical to believe that cash-strapped local authorities will simply see shops as a cash-generator thereby further increasing the already onerous cost burden convenience faces. Most Councils in Scotland are now dipping into their reserves to pay for services and balance the books! Additionally, convenience multiples will find financial planning almost impossible as their stores will be paying different rates across different parts of the country. The Committee decision took everyone by surprise. Politicians have been too easily seduced by the allure of the ‘local’ and have agreed to something which they probably do not fully understand. There is no certainty that this amendment will find its way into the final legislation. One positive benefit is that it had galvanised a co-ordinated fightback from the ourselves, ACS, Federation of Small Businesses and the SRC. Hopefully this is one move towards the local that we can prevent.

SLR | JANUARY 2020

The Scottish Grocers’ Federation, Scottish Wholesale Assocation and Scottish Retail Consortium all ask the Government to put business first and deliver a well-managed withdrawal from the European Union. Representatives from the retail and wholesale industries in Scotland have called for a well-managed Brexit that ensures minimum disruption for business in the wake of the Conservative party’s landslide victory in the UK general election. Scottish Grocers Federation Chief Executive Pete Cheema said: “Boris Johnson now has the numbers in the House of Commons to get Brexit done but we need it done in a way which ensues business can operate effectively and which guarantees frictionless trade throughout the transition period.” Cheema also said that while the impressive gains for the SNP would strengthen their hand in calling for a new vote on independence, there was no guarantee that the UK government would say yes to a second referendum. The Federation also called very strongly for restraint in the Conservative plans for a National Living Wage of over £10 an hour. Scottish Wholesale Association boss Colin Smith said: “As a politically-neutral organisation we call on Prime Minister Boris Johnson and his Government to put business first and push for a frictionless trade deal after Brexit with minimum tariffs or trade barriers. “Following a long period of political uncertainty, we want to see our members and the wider wholesale sector invest for the future and prioritise long-term growth. It is crucial that the Government works with our industry – our members, many of them independent businesses, support other independent businesses, public services and provide a lifeline to remote and island areas. “We urge the Government to provide a level playing field that allows our members to grow, supports local workforces and communities, and helps them work in partnership with customers and suppliers to create a healthy wholesale sector with a long-term future.”

Smith urged the UK Government to take on board the implications of National Living Wage increases while calling for further measures to tackle alcohol duty fraud and sugar tax evasion. He also called for prompt action over a nationwide deposit return scheme (DRS). He said: “SWA asks the Government to quickly review its manifesto pledge on introducing a deposit return scheme and implement it as part of a UK wide-scheme aligned with that of the Scottish Government’s DRS proposals.” Smith said the SWA would continue to work closely with the Scottish Government and congratulated First Minister Nicola Sturgeon on the SNP’s landslide victory in Scotland. David Lonsdale, Director of the Scottish Retail Consortium, hoped the result would “break the political gridlock which has dominated Westminster” over the past two years. “Retailers will be looking to the new Government to bring certainty to our future relationship with the EU, support hard pressed consumers, and reduce the cost of doing business and so help the retail industry as it reinvents itself. “The Government’s majority gives it an opportunity to think afresh about policies like the apprenticeship levy, which falls woefully short of what is needed to support higher skilled, more productive retail jobs. Here in Scotland it is little more than another employment tax. “Brexit will see new powers repatriated from Brussels to Holyrood and Westminster, with retailers and their suppliers who operate across the UK facing a more complex trading environment. Scottish consumers and our economy as a whole benefits enormously from the UK’s largely unfettered internal single market, and we want to see the UK and devolved administrations working collegiately to minimise administrative complexity, frictions and cost from this next chapter of devolution.” www.slrmag.co.uk

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Comment

‘WHAT IS GOOGLE?’ Once upon a time, many years ago, I had the opportunity to speak with a senior executive from Google at a data industry conference. He was just as impressive as you would imagine a senior executive from Google to be and made some very interesting observations, even about things he admittedly knew nothing about. One such observation was on convenience stores, which we got to talking about. His first, somewhat odd qustion to me on the subject was: “What is Google?”. Now I recognise a trick question when I hear it so I mumbled something about search engines and technology. He then said, “no, go deeper than that”. Try as I might I couldn’t, so he spelled it out for me. “Google,” he said, “is where millions of people come together. It’s footfall. Google’s biggest asset is its footfall.” The penny was starting to drop. He continued: “Convenience stores are very similar. They have huge, regular footfall. How many other businesses see customers every day, sometimes four or five or six times in a day?” The point he was getting at was: “What would baffle Google would be why you only try to sell them soft drinks and crisps and chocolate. You have all that footfall and your customers trust you yet all you try to sell them is packets of gum.” That conversation took place maybe a decade ago but it’s stayed with me to this day. And it came back to me very recently on a mini store safari when it dawned on me that tomorrow’s convenience store will be largely unrecognisable from those of the last 20 years. The days of the standard convenience store are drawing to a close. This is being driven by a mix of legislative pressure on pretty much every important category in a traditional store - tobacco, alcohol, confectionery - but, more importantly, it’s also being driven by fast-changing consumer demands. Megatrends like foodservice and home delivery and technology will fundamentally change forever what a convenience store is and does. But the best part about all of this? Convenience stores are better placed than any other business to capitalise on these consumer changes. Who else has relationships with their customers as close as ours? Who else has the trust of their customers. Who else understands their customers as well as we do? Who else has stores at the heart of every community, open long hours and every day? So we have the platform, a platform that many would kill for. All we need is the foresight and the courage to find out exactly what our customers would buy from our stores and then make it happen. As the man from Google righlty implied, we needn’t be restricted to simply devising different ways of delivering food and drink. We could be delivering experiences and we could be looking more at non-food. If your shopper trusts you enough to buy a fresh sandwich or a chicken curry that was hand-made in your store, surely they would trust you enough to buy all manner of products and services? As my learned friend from the US tech giant put it: “If Google ever did convenience stores, they wouldn’t do them the way you guys do.” The millon dollar question, of course, is: “Well, how would Google do convenience stores?”

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

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

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

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

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

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Sustainability

Cover Story

ARE RETAILERS AS ‘WOKE’ ON SUSTAINABILITY AS CONSUMERS?

Thanks to everyone from teenage environmental sensation Greta Thunberg to national treasure David Attenborough, all things sustainability have never been far from the front pages over the last year – but are retailers keeping up with the pace of change? BY ANTONY BEGLEY

nless you’ve been living under a rock for the last 12 months, you can’t have failed to notice that environmental issues have been front and centre for UK consumers. From David Attenborough’s war on plastic to teenage activist Greta Thunberg glaring at Donald Trump before giving him a good going over, the impact that humans have on the planet has arguably never been higher up the political and social agenda. Society at large has never been so ‘woke’, to use the current parlance, when it comes to all things sustainability – but the big question for our industry is: just how ‘woke’ are retailers?

EVENT

SUSTAINABILITY IN LOCAL RETAIL AS PART OF ITS DRIVE TO EQUIP LOCAL RETAILERS WITH ALL THE ADVICE AND SUPPORT THEY NEED TO POSITIVELY EMBRACE SUSTAINABILITY IN THEIR STORES, SLR WILL BE RUNNING ITS SECOND ANNUAL SUSTAINABILITY IN LOCAL RETAIL EVENT AT THE END OF JANUARY. TO BOOK YOUR PLACE, EMAIL KIRSTY AT KMCDOWALL@55NORTH.COM

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There are many facets to the sustainability debate, some social and some ethical, some practical and some commercial, yet the reality is that these factors will, and already are, beginning to converge. And the implications for the retail industry are enormous. Take the latest Kantar research, which revealed just before Christmas that over three-quarters of UK grocery shoppers already switch, avoid or boycott brands because of their environmental policies. That statistic alone should be enough to highlight the seismic shift that is going on in the streets and households of Scotland. The challenge for our sector is how we respond to it. In simplistic terms there are two options open to us: muddle along and do what we can to ‘do our bit’ or actively, passionately take steps to lead the revolution from the front. As local retailers with unique bonds to communities across Scotland it doesn’t require much of an imaginative leap to start to see that we almost have a responsibility to do sustainability bigger and better than our multiple or discounter cousins. If we genuinely do have our communities’ interests at heart then it’s incumbent on us to embrace sustainability in every practical way we can and to use our positions at the core of Scotland’s communities to inspire change among others. It’s a simple fact of life too that younger www.slrmag.co.uk

Sustainability

shoppers – those famous ‘millennial’s and ‘generation Zs’ – are more woke than most. The Kantar study mentioned above also found younger consumers are more likely to switch or boycott brands if they view them as failing in their environmental responsibilities. Among 16-24-year-olds, an astonishing 87% said they have switched or would. It’s not too much of a stretch to see how that same logic might begin to apply to retail outlets. If my local retailer doesn’t fit what I’m looking for and isn’t proactively following a sustainable model, I’ll shop elsewhere. With competition already so fierce and so many options now available to all shoppers, ignoring that warning is something you do at your peril. Indeed, over 70% of consumers surveyed in the Kantar research agreed that the response from businesses to the environmental damage being caused to our planet is ‘too little, too late’. And sustainability means different thing to different people, so it’s not quite as simple as installing a DRS machine and banning plastic bags. Respondents to the survey listed harsh working conditions, environmental pollution and the overuse of packaging among the many things they think carefully about before purchasing FMCG products. Granted, the bulk of major manufacturers and suppliers have long since started on a journey to address their environmental www.slrmag.co.uk

Cover Story

KANTAR RESEARCH:

KEY TRENDS PLASTIC PROBLEM

Over half (53%) of consumers rank the overuse of plastic and other types of packaging as one of their top three environmental concerns. More women than men are concerned about it (58% v 49%), with 45-64-year-olds expressing most concern across all age groups (60%).

BUYING DECISIONS

82% of 25-34-year-olds say they sometimes or always check a brand’s commitment towards sustainability, the environment and saving the planet before making a purchase.

TAKING RESPONSIBILITY

Almost 90% of consumers agree that brands need to take more responsibility for the waste their products create and the impact it has on the environment, with 50% ‘strongly agreeing’. This sentiment is strong across all age groups (>82%) and is highest among the 65+ cohort (92%).

YOUNGER GENERATIONS

Those most concerned with the issue of global warming are 16-24-year-olds, the youngest age group overall, with 65% ranking it as one of their top three concerns; of those, over one-third said it was their number one concern.

BOYCOTTING BRANDS

76% of consumers said they had boycotted buying certain clothes, had switched brands in the last 12 months or were thinking of doing so because of a brand’s environmental policies.

JANUARY 2020 | SLR

Cover Story

Sustainability

challenges and many, including giants like Coca-Cola, have spent vast sums on communicating direct to consumers around the improvements they are making and on wider issues to simply raise awareness of these issues among shoppers. But it remains very rare to see sustainability issues highlighted in convenience stores, or even on social media posts from stores. There appears to be a disconnect somewhere. The majority of consumers of all ages are making it very clear that sustainability issues are important to them, yet retailers do not seem to have yet responded in many meaningful ways. Mark Chamberlain, Managing Director of Brand, Kantar UK comments: “Responsible living is being driven by cross-generational groups of ‘woke’ consumers that look towards inspiring brand heroes as change leaders. Governments and organisations are being forced to listen and respond to consumers’ demands for greater transparency as businesses strive to become more purposeful. “The rise in responsibility and conscious consumerism is being influenced by a topdown approach as the consumer voice grows and pushes forward environmental and social agendas. Consumers now expect the FMCG industry to be driven by some direction other than simply making a profit. These values are fast becoming key assets in helping boost brand value whilst projecting a positive corporate image, and by doing so businesses can demonstrate a clear sense of purpose. This is what consumers are now looking for in today’s brands, and this preference will only intensify as the next generation comes of age. Purpose-led FMCG brands enjoy stronger growth and a deeper connection with consumers.” Looked at from a certain angle, the challenge here is clear for retailers: the time has come to view sustainability not as a 16

SLR | JANUARY 2020

liability, something that is going to cost them money and create endless problems, but to view it instead as an asset. Evolving a developed sustainability strategy and communicating it well to consumers can become a hugely valuable asset. It offers a potentially hugely influential USP that can be leveraged to grow footfall, sales and profits – and you get the satisfaction of knowing that doing good is good for business. As Chamberlain implies, consumers are far more likely to engage emotionally with a retailer that is ‘purpose-led’, that contributes to the local community in a range of positive ways and, at the end of the day, is driven by more than simply making profit. In other words, it’s the same mantra we’ve been repeating for decades: local retailers are about much more than simply selling Mars Bars and cans of Tennent’s. Unlike the major multiples, they don’t exist exclusively to make profit. They exist to provide valuable services to the communities they serve, many of those services non-commercial. Sustainability could just be the biggest opportunity to land in the local retailing sector’s lap in a very long time – but only if we understand that opportunity and grasp it with both hands. Make sustainability a core plank of your business and communicate that to consumers and you could easily find that you have created a USP that very, very few of your competitors can even begin to try matching. www.slrmag.co.uk

LOOKING AHEAD TO THE DEPOSIT RETURN SCHEME

TOMRA’s advice for retailers As Scotland prepares for the introduction of a deposit return scheme (DRS), reverse vending leader TOMRA is at the ready to help retailers with its roll out. Mark Brill – UK VP Sales and Marketing for TOMRA Collection Solutions – is encouraging retailers to look ahead and get prepared for the scheme.

1. What are the latest developments in plans for a deposit return scheme (DRS) in Scotland? The DRS draft regulations were open for consultation until the 10th December 2019. We expect to hear an update at the beginning of this year with a final draft of the legislation and details of a vote in the Scottish Parliament. The proposed ‘all in’ system has a deposit set at 20p. It is planned to include soft drinks and alcoholic beverages, including PET bottles, steel and aluminium cans, and glass ranging from 50ml to 3 litres.

to spend their redeemed deposits at the store, meaning overall basket spend could be higher. Crucially, there are the environmental benefits which will be positive for the community and also attract new customers who shop with the planet in mind.

3. How can retailers best prepare for DRS if they are concerned about space in their store? Space is a big consideration, however retailers may be surprised by how little space is needed for some machines. TOMRA has developed a new compact RVM especially

4. What should retailers consider when choosing a reverse vending machine? A good place to start is the total volume of returned containers you expect during a week as this will impact the machine capacity you need. In addition, you’ll want to ensure you have a big enough system to cope with peak times. Thirdly, consider how much space you have available in-store and where the machine could go – RVMs come in various sizes and configurations to suit your requirements.

5. What is TOMRA’s advice for retailers ahead of the roll out? Share knowledge amongst other retailers, especially learnings from in-store trials. Have your say in broader DRS discussions via the Scottish Grocers Federation (SGF) – this is a good way to get to grips with how the system will work once it’s live. Aim to attend a few events throughout 2020 and 2021 where you can see machines in action. TOMRA will be at the SLR sustainability event on the 29th January and it would be great to meet lots of retailers there.

6. Where can I find out more about the scheme?

2. What’s in it for retailers? While DRS certainly involves challenges for retailers, an efficient system can also bring benefits. Firstly, retailers will receive a handling fee for every accepted container that they take back, so it becomes a revenue stream. The estimate is for an average of 1.5p per container and 3.1p via a reverse vending machine (RVM)1 .Consumers are also likely 1

ScotGov business case

for smaller retailers called the ‘TOMRA M1’ concept - we’re happy to speak to retailers to see if this could be right for them. We would also recommend speaking to other retailers who have run trials to get their insights as to the space needed.

Zero Waste Scotland has some excellent resources on its website including a toolkit for retailers (https:// depositreturnscheme.zerowastescotland. org.uk/). TOMRA also has information about DRS online: www.tomra.com/uk.

To get in touch with TOMRA, email tcs.uk@tomra.com

Learn more at tomra.com/uk

We make deposit return systems work for everyone. TOMRA reverse vending machines collect 40 billion containers every year, keeping bottles in the Clean Loop and out of the oceans.

We look forward to helping retailers in Scotland get ready for the forthcoming deposit return scheme.

News

Products

Dairy firm targets £40m turnover in 2020 Family-owned Lancashire Farm

ProductNews

Dairies is finishing the year on a high after seeing growth in sales of £37.9m, leaving it on target to surpass its 2020 projected growth of £40m. The Rochdalebased company said its investment of more than £3.5m in new plant following increased demand from customers had been instrumental in driving growth.

Buxton commits to 100% recycled plastic by 2021 All Buxton Natural Mineral Water packaging will be made from 100% recycled plastic (rPET), while remaining 100% recyclable, by 2021. The 75cl and 1-litre bottles made from 100% rPET were launched in November. The rest of the range, currently made with a minimum of 20% recycled plastic, will follow by the end of next year. The move is part of Nestlé Waters’ long-standing commitment to sustainability.

Paul Hollywood Ready to Bake now in four packs Paul Hollywood Ready to Bake

TIME FOR A FRESH FASCIA? P38 FOOD WASTE Confectionery giant partners charity to tackle problem

Mondelez and Fareshare fight food waste and hunger As part of Cadbury Heroes’ 20th anniversary celebrations, Mondelez donated over 150,000 products – including Heroes, Dairy Milk and Oreos – before Christmas to FareShare, the UK’s largest charity fighting hunger and food waste. These were distributed across FareShare’s network of over 11,000 charities and community groups. With many people across the UK struggling to make ends meet, particularly during the festive period, Mondelez also called on Brits to become ‘Food Heroes’ by donating or volunteering their time to FareShare. Volunteering time to help redistribute food or sort through

donations in the warehouse is essential to helping FareShare continue to help the most vulnerable in society. Donations are needed more than ever – in 2018/19 FareShare supported 924,000 people per

week, providing 46.5 million meals provided to vulnerable people worth an estimated £33.7m. To find out more information on donating or volunteering, visit fareshare.org.uk.

Crusty Rolls and Multi-Seed Rolls have changed from a six-pack with an RSP of £1.70 to a four-

SNACKS

pack with an RSP of £1.40. The

Walkers rolls out bigger cases for price-marked packs

move follows consumer research which found that the affluent target demographic preferred a smaller pack size to help reduce food waste. Further research found a smaller pack size would let retailers fit more SKUs on the shelf and avoid stock shortages.

JUUL gets listed in United Wholesale (Scotland) JUUL Labs has secured listings with United Wholesale (Scotland) for a number of its vaping products. These are available now at United’s two Glasgow depots and its M9 warehouse in Grangemouth. The launch will be accompanied by significant activation in United’s Queenslie ‘depot of the future’ with digital advertising, and customer

Walkers has unveiled a larger case size – 15 packs per case – for its price-marked packs. The new 15 case format will be available across the Walkers Core, Doritos, Sensations and family favourites snacks ranges. The full range will be available from January. Cases of 12 packs will still be available to retailers. Will Kerr, Head of Impulse Category at PepsiCo, said: “We hope this case size move will support even more of our independent retailers, and help them drive their sales without compromising on their storage capacity.”

MINTS & GUMS

XXX Mints get sustainable makeover Tangerine Confectionery has launched a redesign of its XXX Extra Strong mint range, changing the brand’s packaging to cardboard to help reduce plastic use. The new cardboard packaging features an updated design, with a bold graffiti style to modernise the brand. The re-design is set to appear on 40.5g single rolls, and five-roll multipacks from this month. Russell Tanner, Marketing and Category Director at Tangerine Confectionery, said: “It’s vitally important we find ways to reduce singleuse plastic packaging and as a business, we are always looking for ways we can change our packaging to cut down on waste wherever possible.”

education and support in tobacco rooms. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | JANUARY 2020

www.slrmag.co.uk

Products

News

New look Stork Upfield has given its Stork brand a makeover, with new pack designs for its Stork Original and Stork Block variants. The refreshed look features

BISCUITS Supplier hopes to catch a wave of New Year’s resolutions

Burton’s launches its ‘Under 100 Cal Club’

pink spots, giving the brand’s

Burton’s Biscuit Co. hopes to grow demand for its ‘less than 100 calories’ offering with a timely New Year launch of the ‘Under 100 Cal Club’. “Demand for permissible snacking options continues to grow as shoppers recognise the role that reduced calorie products can play in a balanced diet, particularly at the start of the year when calorie control is high on the agenda,” said Kate Needham, Burton’s Marketing Director. Burton’s began reducing the calorie content of its biscuits in 2018 with a 20% sugar and calorie cut across the portfolio and the reformulation of its existing Minis

says ‘The secret to perfect

range. Together with Jammie Dodgers and Maryland Minis portion packs, the introduction of the company’s first ever snack bars earlier this year has created a comprehensive range of portioncontrolled biscuits. Burton’s will back the Under 100 Cal Club with a range

of in-store activity to engage consumers throughout 2020. Burton’s plans to extend the range to include more options from its best-selling brands at less than 100 calories a serve. For further information call Burton’s Biscuits on 0330 6600 196 or visit burtonsbiscuits.com.

traditional credentials a modern twist. Both products now also feature clearer product benefits. Stork Original contains ‘The secret to light and fluffy cakes’ messaging, while Stork Block biscuits, scones and pastry’.

Tilda taps into fibre trend The Tilda Tasty Wholegrains range has been reformulated to include increased fibre content to meet growing consumer demand for higher fibre products. Available now, Wholegrain Basmati Rice, Wholegrain Pilau Rice, Wholegrain Basmati & Wild Rice and Wholegrain Basmati & Quinoa Rice have been enriched with acacia fibre. They are also vegan-friendy, gluten-free and contains no artificial colours, preservatives or flavourings.

Belu first to market with 100% recycled bottles Social enterprise and ethical water company, Belu, has

JAMS & SPREADS

Spread some love with Nutella this Pancake Day, says Ferrero With Pancake Day (Tuesday 25 February 2020) looming next month, Ferrero has relaunched its ‘Pancakes Love Nutella’ campaign as part of a £1.4m media and shopper investment. Pancake Day is celebrated by two-thirds of shoppers and is also when an astounding 19% of total Nutella sales take place. With that in mind, Ferrero is encouraging retailers to keep their shelves stocked up; Levi Boorer, the company’s Customer Development Director, recommends retailers stock the 400g jar as a priority SKU. He also suggested installing a dedicated Pancake Day display for a bit of in-store theatre, with Nutella and other toppings alongside eggs, flour and mixes to give shoppers everything in one place. For more information, please visit Ferrero’s online retailer hub yourperfectstore. co.uk.

SOFT DRINKS

Britvic commits to ambitious green targets Britvic has announced new carbon emissions reduction targets to help tackle climate change. The new targets have been independently verified by the Science Based Target initiatives, showing that they are in line with what the latest climate science says is needed to prevent a global temperature rise of 1.5°C and the worst impacts of climate change. This makes Britvic the first soft drinks company in the UK to have an approved 1.5°C target. Britvic has committed to halving emissions from its own operations by 2025. It has a further ambitious target to achieve net zero emissions by 2050.

announced that it will become the first water company in the UK to make 100% of its plastic bottles from 100% recycled plastic bottles. The company estimates that its recycled bottles will generate about 60% less carbon emissions than a comparable virgin bottle and about half that of a typical aluminium can.

Lidl boss makes move to Meatless The Meatless Farm Co has appointed Jesper Højer as its new chair, to help grow the plantbased meat alternatives business globally. Højer was until earlier this year global CEO of Lidl and spent 16 years at the discounter. He said: “I am impressed by the quality of both the products and the team, and aim to help build The Meatless Farm Co into an international business.”

www.slrmag.co.uk

JANUARY 2020 | SLR

News

Off-Trade

IARD welcomes William Grant & Sons as a member William Grant & Sons has joined

Off-TradeNews

the International Alliance for Responsible Drinking. It sits alongside 11 of the world’s leading beer, wine, and spirits producers who have come together to combat harmful drinking and set new standards of responsibility for the wider drinks industry. Boss Simon Hunt said William Grant was committed to taking collective action to tackle harmful drinking.

Arran turns on sour tap Arran Brewery has started pilot production of a new range of sour beers at its Dreghorn facility near Irvine. The ‘Arran Wild Range’ is set to be launched in the New Year. The range will take in a number of sour styles including Belgian lambic, gueuze and Flanders red ale. The beers will be available in cask, keg, 330ml standard bottles and 750ml sharing bottles – all produced under the supervision of Head Brewer Jose Bravo.

Accolade appoints new European marketing boss

THE TRUTH BEHIND THE AMERICAN VAPING HEALTH SCARE P26 LOW/NO ALCOHOL Crowdfunding success puts wind in brewer’s sails

Alcohol-free Scots brewer sets sail with debut beer Scottish alcohol-free brewing company Jump Ship Brewing has launched its first beer, Yardarm. The launch comes in the wake of a successful crowdfunding campaign, which reached its target in six days. Yardarm is available to the off-trade in cases of 24 x 330ml cans (ABV 0.5%) with an RSP of £1.99. Sonja Mitchell, a keen sailor and beer-lover, decided to ‘jump ship’ from her marketing job to launch the business. The idea behind Jump Ship was born in December 2018 out of a love of beer but a horror of hangovers. Mitchell, who brewed the beer from her own recipe, describes

Sonja Mitchell

Yardarm as a “zesty, biscuity and discretely bitter lager”. It is brewed with Citra and Styrian Bobek hops for a full flavour finish, similar to a well-balanced IPA. The beer is gluten-free, vegan-friendly and lower in calories than standard beers. Sonja Mitchell said: “It’s been incredible to see the response to the crowd-funding bid. Having the backing of so many amazing people, not only gives me the financial resources needed to get to market, but I also know that there’s a crowd of people looking forward to drinking my beer. It’s time to Jump Ship!” For off-trade enquiries, email sales@jumpship.beer.

Accolade Wines has appointed Caroline Thompson-Hill to the role of European Marketing Director. Thompson-Hill has enjoyed over 15 years in drinks and brings significant international wine and spirits experience to Accolade’s portfolio. She joins from Treasury Wine Estates, where she held several different marketing roles, most recently in their Americas business.

Master of malt honoured The Balvenie Malt Master David Stewart MBE was honoured with the Outstanding Achievement to Scotch Whisky award at the International Wine & Spirit Competition (28 November 2019) in London. This comes just a few months after he was awarded the Lifetime Achievement Award at the International Spirits Challenge in July, acknowledging

GIN

LOW/NO ALCOHOL

Love Drinks launches two Swedish ginnovations

Sparkingly Sober Drinks arrive at Scotmid

Love Drinks has expanded its portfolio with the addition of two limited-edition Swedish gins from Hernö – one of Europe’s most awarded craft distilleries. The two new lines which have launched in the UK include a smoky Hernö Sipping Gin #1.3 ex-Ardbeg Casks (ABV 49.1%) and a Hernö Blackcurrant Gin (ABV 28%). Both are available now in 50cl bottles. Samantha Burke, Managing Director of Love Drinks, said: “Hernö continues to lead the way when it comes to unique craft gins that really capture the imagination of mixologists and consumers alike. Even in the face of a fierce and competitive category, Hernö goes from strength to strength.” For more information call Love Drinks on 0207 501 9630, email info@ lovedrinks.co.uk or visit lovedrinks.com.

Scotmid has marked the launch of The Start-Up Drinks Lab’s non-alcoholic champagne-inspired Sparklingly Sober range with an exclusive listing for its Nomosa mocktail. The Start-Up Drinks Lab opened in May 2018 with investment support from Scotmid and was crowned Food and Drink Company of the Year at this summer’s Made in Scotland awards. Inspired by a Mimosa and with fewer than 64 calories per 330ml serve, Nomosa blends Scottish water, blood orange, mango and chilli. It is available in 750ml bottles. Scotmid Local Sourcing Manager Kirsty George said: “We’re thrilled to be able to bring the Nomosa into our stores.

his outstanding contributions over his longstanding career. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | JANUARY 2020

www.slrmag.co.uk

Newstrade

News& Magazines

News

Haymarket shifts from plastic

IT’S TIME TO ENTER THE SLR REWARDS! P30 NEWSBRANDS

Newsbrands’ readership figures remain well ahead of tech giants’ The latest Pamco readership survey reveals that UK national newsbrands remain significantly ahead of online giants Facebook and Google.

Global media and publishing business Haymarket Media Group has begun to eliminate

The latest figures issued by Pamco, which replaced the UK National Readership Survey last year as the industry standard for measuring readership figures, show that UK newsbrands still reach far greater audiences than US tech giants Facebook and Google. The figures show that newsbrands reach a combined monthly audience of 47.9m people per year, putting them significantly ahead of both Google (41.5m) and Facebook (42.6m). This is despite the fact that the Facebook figures included the other products owned by the company including Facebook Messenger, WhatsApp and Instagram. Much of this has been down to the increased penetration of newsbrands into the digital arena, with national newsbrands increasing their daily digital readership by 23.6% year-on-year to some 18.6m and monthly readership by 6.4% to 38.2m.

This compares to a fall in Google’s daily reach of 7.4% to 26.2m as its monthly reach grew by just 1.3% to 41.5m. Facebook grew its daily reach by 3% to 29.3m and monthly by 1.6% to 42.6m. The Sun and the Mirror have remained the two most-read UK national newsbrands for the second quarter in a row with The Sun achieving a total monthly brand reach of 33.9m across its website, print titles and bingo and fantasy football websites. It was also the most-read national newsbrand on both mobile and tablet, with a monthly reach of 26.9m and 3.6m respectively. The i paper and the Daily Express have seen the fastest readership growth among UK national newsbrands across print and online in the past year, both titles growing their total monthly brand reach by more than 50%.

plastic mailing film from its supply chain as part of its commitment to meeting its stated sustainability targets. The company, which publishes titles including Autocar and What Car?, has successfully rolled out an initiative that now sees many of its titles mailed either without wrap or paperwrapped. Haymarket is also reviewing the titles it publishes that continue to use plastic with a view to evolving those once appropriate solutions have been discovered or developed. Haymarket’s Head of Production Operations Trevor Simpson said: “We are very pleased to see this project gather momentum. It has taken considerable time and effort to get here. At the moment scheduling, cost and supplier

REGIONAL PRESS

requirements can be a barrier

Inverness Courier publisher bought out of administration

for us adopting poly alternatives

Scottish Provincial Press (SPP), one of Scotland’s largest local newspaper publishers, has been revived under the new guise of Highland News and Media after briefly going into administration. The company produces 18 local newspapers including the Inverness Courier. The move means that 135 jobs have been secured. The new company is a joint venture between SPP’s former majority shareholder Peter Fowler and Cambridge-based Iliffe Media. Edward Iliffe commented: “This is the second joint venture arrangement that Iliffe Media Group have entered into with Peter and Rory Fowler. While Highland News and Media will continue to operate with a high degree of autonomy, we will continue recent moves to share expertise where relevant and seek efficiencies that will help secure a profitable future for both organisations”.

continue to monitor the market

on all brands, though we will and change accordingly. While we currently follow the PPA guidelines on wrap, and all our poly is clearly marked as recyclable, we acknowledge that the disposal and recycling of paper is clearer and easier for our customers. We think that this is the most effective option on the market, as we have had issues with degradable options in the past. The paper used in the wrap is fully accredited and from sustainable sources.”

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

www.slrmag.co.uk

JANUARY 2020 | SLR

A Brand New Gulf

We have revitalised our forecourt image for todayâ&#x20AC;&#x2122;s marketplace. This modern, fresh and eye-catching look is designed to widen the appeal of our forecourts, attracting new customers and helping our Retailers increase visibility at all times of the day.

Contact your local Area Manager

Call 0345 456 6300 gulfoil.co.uk/retail

Inside Business

Cloud Chasing 2 | UKVIA

SEPARATING VAPING

FACT FROM FICTION

John Dunne, Director of vaping industry body UKVIA, spoke at SLR’s recent Cloud Chasing 2 event and dispelled many myths around the US vaping health scare. Here is what he said...

he vaping industry is a perfect example of what is possible when people collaborate; sharing ideas and pooling experience. This cooperation has never been more important than it is today. You will all have seen a worrying and potentially new narrative emerging in recent weeks and months: namely that vaping is behind a string of serious illnesses. It is the duty of each and every one of us to ensure that the huge public health benefits of vaping are not lost – the evidence is on our side. It’s easy to get frustrated by sensationalist headlines, but we can all play our part in responding, whether it’s writing an article, hanging a poster or even just retweeting an expert. We’ve come a long way in this regard already. Vaping hasn’t always been taken seriously or seen as the most trustworthy industry. Our successes have been hard-won, with regulators, with legislators, and must importantly, loyal customers. Vaping is now an important, professional sector, as well as a cornerstone of the high street. This is a testament to the hard work of everyone here today and we can rightly be proud of ourselves. But that doesn’t mean we can be 26

SLR | JANUARY 2020

complacent. Despite the best efforts of so many, the industry is still under threat from misinformation and misunderstanding. Illnesses supposedly linked to vaping in the USA have been hitting front pages with increasingly regularity. As an industry, we have to ensure that our voice is heard too. So, what do we know? We know that experts, including the Food and Drug Administration, link these illnesses to black market THC products. (THC is the psychoactive component of cannabis.) Unfortunately, not even this has been enough to stop the unhelpful conflation of illicit drug products and legitimate nicotine vaping. The matter has been further complicated by the intervention of the US president. Donald Trump received huge media attention for his vague allusions to a vaping ban and youth protection. Even though research shows that many of these concerns are unfounded, particularly here in the UK, they have spread worryingly. Public health policies around the world often follow where America leads, which makes the issue doubly as important. At the UKVIA we’ve already got underway. Our ‘Facts Not Fiction’ campaign launched in October with full-page adverts in national www.slrmag.co.uk

UKVIA | Cloud Chasing 2

Inside Business

“Experts including the FDA link these US illnesses to black market THC products but not even this has been enough to stop the unhelpful conflation of illicit drug products and legitimate nicotine vaping.”

newspapers. We were determined to give people the information they need to make an informed decision. Vaping is a consumer success story and they deserve to all the facts they need to choose the right path for them. I took the campaign onto national television with an interview for BBC Breakfast. This took our fact-based message to a further six million people. In total, the Facts Not Fiction campaign brought the real vaping story to over eight million people across the country. But we’re just getting started. We’re continuing the information push with our ‘Vaping Matters’ campaign, a place for the many great faces of this industry to come together in its defence. Vapers, retailers and manufacturers have been using the hashtag to share their experiences, as well as speaking out about why the industry is so important. We’re lucky that vaping has so many authentic, engaging success stories. All we need to do is showcase them for the general public, to show them the real face of vaping. It’s a positive, consumer-driven industry that so many can relate to, and we need to shout it from the rooftops! Of course, it is not only the public we need to engage. The UKVIA’s Vaping Matters campaign will also be driving industry discussion with legislators and regulators. It’s time for vaping to be recognised as a trustworthy, public health partner. With companies and consumers from around the country lending their voices to the campaign, we can be sure of being heard by decision makers. None of this is possible without the ability of our industry to communicate with consumers. We have to be alert to changing www.slrmag.co.uk

political landscapes, which could put this communication at risk. Here in Scotland, we see one such potential obstacle on the horizon. In September, First Minister Nicola Sturgeon announced that a consultation on banning all vaping promotion and advertising was upcoming. We can’t say exactly when this will be, due to how much else is uncertain politically currently, but the consultation will come. It goes without saying that a ban would be bad for business: industries rely on being able to raise awareness of their products. The real losers here, however, would be consumers. Vaping is one of the most powerful harm reduction tools available to modern public health. It would be a tragedy if even one smoker were to continue with cigarettes simply because they don’t know what alternatives exist. We cannot allow the vaping industry to be gagged even further, the stakes are simply too high. That is why the UKVIA will again be taking the lead against misinformation and incoherent policy. I’m excited to say that we will soon be launching a campaign across Scotland, to harness the power of our passionate consumer-base against a potential ban. Our ‘Bin The Ad Ban’ campaign aims to ensure that the public will continue to have the information they need on the products that could make a huge difference to their lives. We’ll soon be launching a petition to show the strength of feeling among vapers. We hope you’ll all join us in signing it, to safeguard this industry’s right to advertise. BY JOHN DUNNE

JANUARY 2020 | SLR

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The SLR Rewards 2020 are open to enter, so it’s time to start preparing your entries for the only awards programme in the industry to offer every winner fantastic Rewards!

SLR is once again delighted to announce that the most Rewarding awards programme in the UK local retailing industry is back! The search for the winners of the SLR Rewards 2020 officially starts here. Launched in 2003, the SLR Rewards have grown and evolved over time with last year’s event the biggest we’ve ever hosted – but one thing has remained consistent: the awards have always been committed to recognising and rewarding excellence in Scottish local retailing. Previous years have seen our worthy winners jet off to Atlanta, Las Vegas and Chicago; we’ve sent retailers to Amsterdam, Belgium, Lille and London; they’ve

cheered on at Champions League matches in Paris and Commonwealth Games events in Glasgow. We’ve had them tearing up racetracks in Ferraris, dining in Michelin-starred restaurants and watching global superstars from the best seats in the house. This year’s awards look set to be just as Rewarding with yet more amazing prizes up for grabs. The awards ceremony will once again be held in Glasgow’s Radisson blu hotel. It will take place on 11 June 2020. So could it be you? The only way to win it is to be in it! So set aside some time and make sure you give yourself the chance of being among the winners on 11 June!

ENTERING IS EASIER THAN EVER! Step 1: Visit www.slrawards.com. This is the preferred entry method. Step 2: Click on ‘Enter now’. Step 3: Fill in the form and submit – you can enter as many categories as you choose from a single form. Don’t forget about your supporting photos and/or videos! You will then receive a confirmation message and email. Microsoft Word versions of individual category entry forms are also available from events@55north.com – please state what categories you wish to enter. The SLR Rewards 2020 are open to all independent and symbol convenience stores in Scotland. The content of your entry should cover the 12-month period running up to March 2020 and your store, or the project you are submitting in your entry, should have been operational throughout that period.

1 Beers, Ciders, Wines & Spirits 2 Biscuits 3 Confectionery 4 Crisps & Snacks 5 Food To Go 6 Forecourt

THE CATEGORIES

7 Fresh, Chilled & Frozen

JUDGING

8 New Store

There are two stages to the judging process:

9 Refit

PAPER JUDGING

10 Community Involvement 11 Newstrade 12 Responsible Retailer 13 Scottish Brands 14 Soft Drinks 15 Sustainability 16 Team 17 ThinkSmart Innovation 18 Vaping

Q The paper judging will be carried out by a judging panel made up of the SLR editorial team plus a team of independent judges. They will vote for the shortlist for each category with every member of the panel carrying equal voting rights. Q All entrants will be contacted by the events team to notify them if they have been selected or not.

TOP TIP!

Please make sure you answer all relevant questions on the entry form as fully as possible. Judges like supporting facts and figures!

STORE VISITS Q All shortlisted stores will be visited by a member of the judging panel. Q All winners will be announced at the Awards on 11 June 2020.

Your Guide Through Change

20 MAY

2020

What is the Menthol Ban?

Itâ&#x20AC;&#x2122;s the next phase of the EUTPD2 legislation that first came into effect in May 2016. From 20th May 2020, all menthol and capsule cigarettes will be banned from sale.

Where should I go for support? JTI will support retailers via its sales force, providing updates and advice about the changes to the tobacco category, as well as with a dedicated Menthol Ban microsite due to be launched early next year. In addition, JTI confirms that post the menthol ban deadline, it will exchange non-compliant Menthol and Capsule stock held by all retailers who our reps visit on a regular basis. For now though, JTIâ&#x20AC;&#x2122;s advice is to rotate stock, maintain full range and availability in order to continue to benefit from the profitability of this category.

What should I do now? For now, itâ&#x20AC;&#x2122;s business as usual. Retailers should continue to ensure the basic principles of category management are put into practice and make certain that they and their staff are aware of the impending changes.

Communication is key Existing menthol and capsule cigarette smokers might have questions about the ban. Ensure staff are knowledgeable so that they are able to answer these questions with confidence.

Focus on competitive pricing Price will remain a key factor for existing adult smokers when choosing where to shop for tobacco. JTI recommends selling at RRP or below to maximise sales and avoid lost custom.

Maintain full availability and range The popularity for Menthol and Capsule segments continues to grow, with Capsule now responsible for 16.5% of total cigarette sales in the UK*, representing a key profit opportunity. Retailers should maintain full availability and range, stocking key brands, to ensure they meet the needs of their existing adult smokers pre-May 2020. *IRi Market Place, Volume Share, Total RMC, Total UK, June 2019.

Product News & Media Watch

Rizla Flavour Infusions Imperial Tobacco

Rustlers rolls out veggie burger

These flavour cards that can be used to mentholate traditional factory-made cigarettes or roll-your own tobacco products and neatly offer consumers a way to sidestep May’s forthcoming menthol ban. The range comprises two variants – Menthol Chill and Fresh Mint – which are packed and wrapped separately. Both have an RSP of 25p.

Kepak is launching its first-ever vegetarian burger to meet growing interest in meat-free products. The Rustlers Moroccan Vegetarian Burger (RSP £2, cases of four), made with chickpea, grated carrot and coriander and served with mango chutney and a yoghurt and mint sauce, has been developed to drive penetration amongst younger shoppers. Kepak believes its new vegetarian offering has the potential to generate more than £2m worth of incremental sales. Adrian Lawlor, Marketing and Business Development Director at Kepak, commented: “We are very excited about the category growth potential that this new launch offers. With a third of consumers actively seeking to introduce plantbased options into their diets, we feel that a brand as synonymous with taste and convenience, Rustlers can really bring something new to the market, with convenience and enjoyment considered key requirements by flexitarians.” The core target audience for this new launch will be 18-24s, who are more likely than the overall population to follow flexitarian diets. The product will be available from the start of January and will be supported by a consumer PR, social media, shopper marketing and launch promotions to drive trial. Retailers interested in the Rustlers Moroccan Vegetarian Burger can find out more at kepaktrade.co.uk, @kepaktrade or by calling 01772 688 300.

Snickers Crisp Ice Cream Mars Chocolate Drinks and Treats

Sugar-free Trebor Extra Strong Minis Mondelez

The latest addition to MCDT’s impulse ice cream range is the logical next step following the August launch of the Snickers Crisp bar. It will be available from February as a wrapped handheld single in outers of 24 with an RSP of £1.49. In 2020, the Snickers brand will be supported by a multi-million-pound media spend. For sales enquiries, contact SHS on 01452 378500.

A sugar-free first for Trebor’s Extra Strong brand, Minis is available now in two pack formats – a 12.6g dispenser pack (RSP 60p, outers of 24) and a 44.5g 100-mint pot pack (RSP £1.30, outers of six). For further enquiries, retailers can telephone Mondelez on 0870 600 0699, email retailer. services@mdlz.com or visit deliciousdisplay.co.uk.

Hotlines

Scottie Dog Brigston & Co These limited-edition haggis infused hot dogs target the Burns Night (25 January) market and are available until mid-February as an 8 x 120g pack frozen from Williamson Foodservice and Braehead Foods, and 4 x 100g fresh from Campbell’s Prime Meats online. For more information please visit brigston. co.uk or call 01556 690226.

Tracker Mars Chocolate Drinks and Treats Mars Chocolate Drinks and Treats has relaunched Tracker bars, with a brand-new look and a new improved recipe. First launched in 1986, Tracker was the UK’s first cereal bar. The two flavours, Chocolate & Peanut and Peanut & Caramel are said to bring out the best of the Crunch, the Goo and the Chew that Tracker fans love. Both are available in multipacks of five with an RSP of £1.99. Order from Burton’s Biscuits on 0330 6600 196.

Vegan ‘Fake & Ale’ Square Pie Delice de France This “rich and hearty” pie is filled with steak-style strips, baby onions and is cooked in a vegan ale sauce. It is intended to help retailers with a hot food-to-go offer capitalise on trends such as this month’s ‘Veganuary’. The company has also released a Vegan Saag Mangalore Square Pie. Retailers interested in receiving more information on the new Delice de France offer should contact 0844 499 3311.

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

JANUARY 2020 | SLR

Feature

Low & No Products

‘LOW AND NO’ IS THE WAY TO GO The growth of the low and no consumer trend across many key categories shows no signs of abating, fuelled in part by product reformulation and NPD from the major manufacturers.

ne of the biggest trends of 2019 is one that looks set to run and run long into 2020 and beyond: the growth of ‘low and no’ products. Whether we’re talking sugar, fat, calories or alcohol, shoppers have increasingly been looking to reduce or eliminate consumption as part of a wider drive towards healthier lifestyle choices. Matt Gouldsmith, Channel Director, Wholesale at Lucozade Ribena Suntory, comments: “In recent years we have seen a long-term trend towards drinks with lower sugar as consumers become more and more interested in living healthier lifestyles. “Shoppers’ spending on zero and lowsugar drinks has increased by 33% and 29% respectively, showing just how important this segment of the market is. In fact, there is now a higher volume of zero sugar drinks bought than regular [Kantar, May 2019].” As Gouldsmith intimates, soft drinks has been one category that has been transformed by this trend and he advises retailers to make sure that their range reflects this seismic shift in consumption patterns. “Our core brands are available in very low or zero-sugar alternatives in the form of Lucozade Zero, Lucozade Sport Low Cal and 34

SLR | JANUARY 2020

Ribena Light to offer consumers a full range of choice. “We advise retailers to take advantage of this range and to stock up on the various SKUs to capitalise on the ongoing health trend in 2020, as we know from case studies and projects we’ve worked on with retailers over the last 12 months that low- and no-sugar drinks have real sales impacts when introduced into convenience stores.” In one study with an independent store last year, the sales increase following the introduction of a full range of low- and no-sugar soft drinks products was instant, says Gouldmsith. “Lucozade Energy Zero Orange sales went from zero to a full case in its first week,” he comments. “Crucially, other sales across the store’s soft drinks range remained steady during the trial, as customers still had their favourite choice of soft drink easily at hand. By increasing the store’s low-and no-sugar range, sales of other drinks didn’t fall at all.” LRS has also extended its portfolio with the launch of Ribena Frusion, www.slrmag.co.uk

Low & No Products

its first move into the enhanced and flavoured water category. Ribena Frusion is unique as it uses blackcurrant water that has been infused with real fruit. Ribena also unveiled a £6.2m campaign to tap into the enjoyable wellness credentials of the brand and its heritage as the ‘master crafter’ of blackcurrants. But it’s not just sugar that’s getting edged out these days. A marked shift towards low and no alcohol products was also a feature of 2019 and has the potential to blossom this year. The tail end of last year saw Scotland’s first alcohol-free brewing company, Jump Ship Brewing, launch its first beer, Yardarm. Launched after a successful crowdfunding campaign, the beer is available in 330ml cans and is described as a “crisp, lively lager with a good balance of malt and hops” but is technically alcohol-free. Brewed in small batches, Jump Ship Brewing uses natural brewing techniques, combining barley, hops and yeast with soft Scottish water, to create as much flavour as possible. Sonja Mitchell, a keen sailor, beer-lover and mother of three, decided to ‘jump ship’ from her marketing job to launch the business. Keen to enable more people to enjoy great beer

without the booze, Sonja set out to discover if she could produce a world-class alcohol-free beer in Scotland. Yardarm contains just 40 calories per can with roughly a third of the calories found in an equivalent can of 4% ABV beer. At less than 0.5% ABV, it contains roughly the same level of alcohol as a large ripe banana, apparently. Even confectionery is being transformed by the low and no trend, as Susan Nash, Trade Communications Manager at Mondelez International, comments: “We’re certainly seeing an increased focus on lower sugar options within snacking categories as the consumer interest in health and wellbeing continues across Scotland. In fact, over a third of consumers are actively cutting down their sugar consumption, making reducing sugar one of the biggest priorities for shoppers going into the New Year.” Despite this trend however, taste remains a key factor in the shopper’s buying decision so it’s important this is not compromised. Nash comments: “We’ve recently launched Cadbury Dairy Milk 30% Less Sugar, Maynards Bassetts 30%

Feature

Less Sugar, belVita Chocolate Chip 30% Less Sugar and Cadbury Hot Chocolate 30% Less – all of which are available now to enable forecourts to tap into the trend towards lower sugar choices.” Nash advises that sharing bags of confectionery are an important part of a retailer’s range and suggests Maynards Bassetts 30% Less as a great-tasting less-sugar variant of the classic Maynards Bassetts Wine Gums. By displaying the new Wine Gums alongside the core packs, retailers can enhance their current confectionery offering by satisfying their shoppers’ demand for less-sugar sweets. With approximately 19g less sugar per 100g, the new recipe allows consumers to enjoy a less-sugar treat from the classic Wine Gums brand. Tablets are also an important segment, growing by a significant 6.3% highlighting the shopper demand for this format. Cadbury Dairy Milk 30% Less Sugar is the latest innovation from Cadbury Dairy Milk and will allow retailers to tap into this clear demand with a category-leading brand. Available in an 85g tablet and 35g single bar,

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Low & No Products

Feature

JOIN THE LOW CAL CLUB Burton’s Biscuit Co. is aiming to accelerate demand for its ‘less than 100 calories’ offering with a New Year launch of the ‘Under 100 Cal Club’, offering a product range suitable for consumers of all ages. The move enables Burton’s to promote the UK’s biggest range of reducedcalorie biscuits together, in line with the company’s commitment to leading the way in portion control, giving consumers an increased choice of permissible biscuits and snacks under 100 calories. “Demand for permissible snacking options continues to grow as shoppers recognise the role that reduced calorie products can play in a balanced diet, particularly at the start of the year when calorie control is high on the agenda,” says Kate Needham, Burton’s Biscuit Co.’s Marketing Director. “The Under 100 Cal Club will help shoppers to easily identify the calorie content of our products and to make an informed choice, whilst offering a range of delicious mini bite size and individual portions that are perfect for eating on the go, lunchboxes or an after-school treat.” Burton’s began reducing the calorie content of its biscuits in 2018 with a 20% sugar and calorie reduction across the portfolio and the reformulation of its existing Minis range. Together with Jammie Dodgers and Maryland Minis portion packs, the introduction of the company’s first ever snack bars earlier this year has created an unrivalled range of portion-controlled biscuits, offering the strongest ‘less than 100 calories per serve’ range in the UK’s £3bn biscuits category. Burton’s will be backing the Under 100 Cal Club with a range of in-store activation throughout 2020 and will be engaging consumers with activations which bring the club to life and encourage them to think about responsible snacking. The Under 100 Cal Club range includes: Q Jammie Dodgers Minis (89 kcal a portion) RSP £1 Q Jammie Dodgers Jam & Yogurt Snacks (97 kcal a portion) RSP £1.39 Q Maryland Minis Choc Chip (99 kcal a portion) RSP £1 Q Maryland Minis Double Choc Chip (99 kcal a portion) RSP £1 Q Maryland Oaty Cookie Bars (94 kcal a portion) RSP £1.39 Q Maryland Chocolate Cookie Bars (97 kcal a portion) RSP £1.39

Scotland’s Speciality Food Show

Cadbury Dairy Milk 30% Less Sugar contains no artificial sweeteners. The launch follows three years of development by the Mondelez science and innovation teams in Reading and Bournville, the home of Cadbury. Mondelez has also launched a lower sugar breakfast offering: belVita Chocolate Chip with 30% less sugar. The biscuit includes the much-loved chocolate chip taste but with 30% less sugar, as low sugar content is the most important criterion for breakfast biscuits. Each box contains five packs with four biscuits per pack and will be available at an RSP of £2. The latest innovation from Cadbury Hot Chocolate, the UK’s number one hot chocolate brand, will allow forecourts to tap into the ongoing consumer trend of sugar reduction by offering the hot chocolate taste shoppers know and love with 30% less sugar. Available now in 280g jars and with no artificial sweeteners, Cadbury Hot Chocolate Reduced Sugar is prepared by swirling into hot milk for a unique lower sugar hot chocolate drinking experience. The launch is supported by out-of-home and digital marketing activity and will also benefit from the brand’s £1.7m total media campaign.

19-21 January 2020 SEC Glasgow

Taste & Discover Something New

Over 175 suppliers with hundreds of great food and drink products for the speciality retailer.

For further details please visit www.scotlandsspecialityfoodshow.com

SLR | JANUARY 2020

www.slrmag.co.uk

Weâ&#x20AC;&#x2122;ve just recently launched our new initiative The Welby Breakfast Club in collaboration with our partners KeyStore. The #welbybreakfastclub is a loyalty scheme designed to encourage our kids to choose a healthier option. The initiative is now available to all our symbol groups and Welby will be seen popping up in stores across the country over the next couple of months. #areyouatopbanana

Call now on 0131 343 3300 to make an appointment with your Healthy Living Development Manager.

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SLR | JANUARY 2020

Fascia Guide

www.slrmag.co.uk

Fascia Guide

Feature

NEW YEAR, FRESH START? With a fresh new year lying ahead of us, it’s the ideal time for Scotland’s local retailers to find new ways of unlocking new profitable growth in tough times. One way of adding new momentum is by leveraging the power of a supportive fascia, symbol of franchise partner.

o it’s 2020. A new year and a new Government but arguably just as much confusion and uncertainty as ever. Doing business has never been tougher and it looks like things might get worse before they get better up here in Scotland. Political upheaval looks set to be the norm for the foreseeable future with First Minister Nicola Sturgeon and prime Minister Boris Johnson likely to be at loggerheads for the foreseeable future and, should Sturgeon get her way, a messy repeat of the social chaos that surrounded the last independence referendum is on the cards. No, 2020 isn’t looking likely to be a year of calm reconstruction and rebuilding. And that’s before we get to the more mundane challenges of the minimum wage, DRS, utility bill increases, business rates, new tobacco legislation and new legislation aimed at restricting sales of ‘unhealthy foods’. Finding new ways of reducing costs and driving up footfall, sales and profits, then, has never been more pressing and has never been more challenging. Evolving your business to embrace vital trends like coffee, foodto-go, fresh and chilled and such like is one way that retailers can drive bigger margin sales, but possibly the most effective quick fix that any store can implement is by joining a symbol group to gain access to the huge array of benefits that they can bring. Or, if you are already part of a symbol group, perhaps it’s time to consider if a different one might be more appropriate for your model? The lure of becoming part of something bigger is an enticing one and is one of the few decisions that an unaffiliated retailer can make that is all but certain to improve the business. Access to much greater buying power and all the benefits that come with being part of a larger organisation can be the difference between profit and loss in today’s ultra-competitive market. Joining a symbol group or fascia doesn’t mean that retailers need to lose their independence – in fact, the opposite is true. While the different groups all have different criteria that members must meet in terms of buying commitments and compliance, the one thing they all share is commitment to allowing local retailers to retain their independent status, something that’s nonnegotiable for most. But joining a symbol group offers all the benefits of being part of a nationwide collective of like-minded

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retailers with access to big buying power and the many invaluable support mechanisms that membership brings. The number of stores that now belong to one symbol group or another is fast approaching the 50% mark today, and that’s for a reason. One other point worth noting is that very, very few retailers decide to return to being unaffiliated after joining a group. They may subsequently switch symbols, but they don’t tend to go back to being unaffiliated once they’ve had a taste of what’s on offer as part of a bigger group. So whether you are considering joining one of these groups for the first time, or are considering moving from one to another, this guide will provide you with the key data you need to make a fully informed decision as to which fascia is right for you. The great news is that the range of choices available has never been greater. Each partner has its own strengths, but they all offer buying power, a household name above the door and a comprehensive support network covering everything a retailer needs to remain competitive in today’s retail environment. Choosing a symbol group can seem an intimidating task. It is a big commitment, especially if you are already tied into a contract or faced with joining fees – whether this is in the form of an admin charge, buying shares or paying for signage or delivery. But there is no doubt it can pay huge dividends. How to decide which symbol group is right for you will ultimately depend on your shoppers and what they want you to offer them. The pros for retailers considering joining or switching symbol groups are numerous and the cons are few. Sometimes there will be a fee, but it may be worth the cost as often it gives additional industry-specific information that will support any application. This information, when backed by the weight of a symbol brand, can add an influential supporting voice to any finance application. Retailers should ask themselves whether remaining unaffiliated is detrimental to their potential as a business. Whatever level you decide to go in at, do your research before determining which group is right for you – then when you do commit, make sure you commit fully to give your refreshed business the best possible chance of building long-term sustainable growth. JANUARY 2020 | SLR

Advertorial

Fascia Guide: Nisa

HELP YOUR BUSINESS FLOURISH WITH NISA

isa is the proven partner of choice for many market-leading, independently minded retailers in Scotland. With multi awardwinning stores including Pinkie Farm, Ardeer Services, Greens of Markinch and Giacopazzi’s Milnathort, to name just a few, there never has been a better time to join the group. Nisa was acquired by the Co-op in May last year and since then the wholesale operation has been providing an environment in which independent retailers can really flourish. The new structure brings enhanced buying capability, allowing Nisa partners to trade their businesses in the way they choose, backed by competitive prices and promotions with access to a deeper range including more than 2,000 of Co-op’s award-winning, high quality own brand products. Retailers have the option to operate under a symbol fascia; Nisa Local or Nisa Extra, or dual branded, whereby a Nisa partner can maintain their own local identity whilst also benefiting from the strength of the Nisa brand. Alternatively, a retailer can choose to trade under their own independent fascia.

Through its latest Evolution store format, Nisa offers flexibility to retailers with a more modular development format which accommodates the individual demographic and shopping missions of each store. The concept takes on board emerging trends in the marketplace to create a store design that demonstrates to retailers how best to capture additional footfall and spend while setting themselves apart from the competition. The Evolution format has seen great success, with retailers on average achieving a 12 per cent uplift in sales since conversion. Nisa provides a complete retail support package which comprises a strong retail focused team, an enhanced category management system, a bespoke staff training facility under the Retail Academy banner, and a comprehensive marketing package incorporating social media and PR support, bespoke leaflets, point of sale material, a personalised Nisa FM radio network and national advertising. Nisa’s flexible model provides its retailers with an unbeatable breadth of range of more than 13,000 SKUs, to ensure they can provide a single destination shop for all

their customers’ needs. This includes access to in excess of 2,000 Co-op own brand products across all categories, which offers a recognised, quality brand for shoppers and good margins for retailers. Nisa’s award winning own label range, Heritage, is also available, providing even more choice with great quality products at affordable prices. This is all delivered by Nisa’s industry leading supply chain which retailers can trust with an impressive 99.9% of deliveries made on the day and 95% successfully made on time. Nisa’s independent retailers are enjoying the greatest availability rates since 2014 with an average of almost 98% in 2019. A strong focus on availability for the past 12 months has given the best service to Nisa partners for more than five years, generating an additional £40million in annualised sales. With its own insight team Nisa can help retailers truly understand their customers and their marketplace, enabling them to modify their offer to match the ‘local’ demographic. Retailers can then use this in conjunction with Nisa’s category management service to create bespoke planograms, layouts and propositions within their individual sites.

A comprehensive support structure is provided to ensure retailers continue to push their business forward. Support comes from a strong field team including retail development managers and regional retail managers as well as fresh food development managers, who encourage retailers to make the most of this important category, and store development managers who help partners to develop their stores and proposition. Finally, Nisa recognises the importance of community involvement, and as such its retailers can support good causes in their local area through Nisa’s Making a Difference Locally charity, which has donated more than £9 million to charities and good causes throughout the UK since its formation in 2008.

TO JOIN NISA COMPLETE THE FORM ON WWW.JOIN-NISA.CO.UK/CONTACTUS OR CONTACT OUR DEVELOPMENT TEAM ON 0800 542 7490. 40

SLR | JANUARY 2020

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O T S N O REAS

JOIN NISA ÂŁ

98%

Sales +12% with Nisa Evolution store format

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2,000+ Co-op own label products

Working with Nisa enables us to compete at a higher level. Dan Brown, Pinkie Farm, Musselburgh Young Scottish Local Retailer of the Year â&#x20AC;&#x201C; SLR Rewards 2019

For even more reasons, visit join-nisa.co.uk #JoinNisa | 0800 542 7490 *currently in selected locations only

Here for the future A Post Office in your store means services when and where customers want them. Products like mail, banking and bill payments, which are essential to the local economy, put you at the heart of the community and make your store a destination of choice.

93%

of shoppers said they are more likely to choose a store because it has a Post Office. (HIM Research 2018)

1 in 3 Post Office users buy three or more items in the shop. (HIM Research 2018)

Bringing you more customers with money to spend Our shop benefited from the migration of the Post Office customers, and being open later brings in new people, so we’re really busy all the time. We stock a huge variety of food and deli products, so Post Office is a perfect addition.” Donna Morgan Biggar Post Office, Brownlies of Biggar, South Lanarkshire

We tripled our footfall in the first two weeks of opening the Post Office. It’s such a well-known, trusted brand – people like to shop where there’s a Post Office.” Mital Chirag Mayfair News & Shepherd Market Post Office

Want to find out more? Visit runapostoffice.co.uk

UTC

OUR PRIME MINISTER...IN HIS OWN WORDS

UTC strictly avoids sullying this fine page within SLR by resorting to discussing politics but seeing as there’s just been a General Election he figured what harm could there be in just capturing some of our elected Prime Minister’s finest observations and predictions in his very own words? 1 “My chances of being PM are about as good as the chances of finding Elvis on Mars, or my being reincarnated as an olive.” 2 “Voting Tory will cause your wife to have bigger breasts and increase your chances of owning a BMW M3.” 3 “My friends, as I have discovered myself, there are no disasters, only opportunities. And, indeed, opportunities for fresh disasters.” 4 “A pound spent in Croydon is of far more value to the country than a pound spent in Strathclyde. You will generate jobs in Strathclyde far more effectively if you invest in parts of London.” 5 ‘I’m down with the ethnics.’ 6 “I can hardly condemn UKIP as a bunch of boss-eyed, foam-flecked Euro hysterics, when I have been sometimes not far short of boss-eyed, foam-flecked hysteria myself.”

WHAT DO BONNY TILER AND LINO RICHIE HAVE IN COMMON? Keen as he invariably is to start a new year with a bit of positivity and a laugh before the rest of the year inevitably takes its toll, the auld yin thought he would share a press release he received just before Christmas about ‘amusingly named businesses.’ The release was from the leading ‘tradesperson comparison site’ (whatever that means) known as HaMuch.com who unearthed some gems. How about Vale of Glamorgan bathroom, plumbing and tiling company Bonny Tiler? Or Cornwall cleaning service Spruce Springclean? Or even better, and the old boy’s favourite, Irish flooring company Lino Richie? Aw c’mon, that’s funny. Veering onto slightlier thin ice is the Twickenham painting and decorating firm Jack The Stripper. Not working for you? Then what about Portsmouth locksmith Surelock Holmes, or London gardening outfit Floral and Hardy? Or all-female plumbing business Stopcocks Women Plumbers? OK, we’ve taken that too far.

ENOUGH WITH THE TARTANS!

Despite being a true Scottish patriot, UTC has never been a huge fan of the kilt and one of his (many) pet hates is people launching ‘new’ tartans to celebrate some random achievement or ambition. Cue an appalled look on the auld yin’s face recently when he learned of what was proclaiming to be “the world’s first tartan to showcase sustainable development goals”. Whit? This jape apparently reminded the old boy of all those farcical Guinness Book of Records records. Back when he was a boy Guinness World Records were real records. Who could run the 100m fastest. Who could eat 10 Cream Crackers quickest. Sensible, honest records we could all relate to. That sort of stuff. These days it’s more like ‘the most Cadbury Freddos fitted into a size 9 Adidas Samba training shoe while hanging upside down between the hours of 3am and 4am on the first Wednesday in June.’ Anyway, this tartan. Apparently it was created for the UN to “help promote sustainability goals worldwide and demonstrate Scotland’s support for the aims”. Exactly how making patterned cloth helps achieve those aims in any way is anyone’s guess.

SLR | JANUARY 2020

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Articles inside

Are retailers as 'woke' on sustainability as consumers?