SLR July 2019 by 55 North

JULY 2019 | ISSUE 195

SLRMAG.CO.UK

FROM SCOTLAND’S NO.1 GROCERY BRAND

*Kantar Worldpanel, Value Sales, Take home non-alcohol brands, MAT to 21.09.18, Total Scotland.

IRN-BRU ENERGY THIS SUMMER’S MUST STOCK SOFT DRINK SLR Rewards 2019 – Full review inside! SLR July 2019.indd 1

16/07/2019 16:37:24

BRINGING THE GREAT TASTE OF IRN-BRU TO YOUR ENERGY SHOPPERS • ALMOST 1 IN 2 DRINK NOW SOFT DRINKS BOUGHT IS ENERGY • 70% OF SCOTTISH ENERGY CONSUMERS ALSO DRINK IRN-BRU • 3 OUT OF 4 ENERGY DRINKERS IN SCOTLAND WOULD BUY IT *3

*1: IRI Marketplace, Value Sales, 12 wks to 21.04.19, Scotland Symbols and Independents. *2: IRI Marketplace, Value Sales, MAT to 21.04.19, Total Scotland & Census Population Data. *3: JVA Research, 2019.

MERCHANDISE BOTH VARIANTS BESIDE OTHER SLIM CAN ENERGY DRINKS SLR July 2019.indd 2

16/07/2019 16:37:36

SLR REWARDS 2019

Full review inside

JULY 2019 | ISSUE 195

SLRMAG.CO.UK

CHRIS GALLACHER

Gallacher replaces Sarwar as UWS MD

STAR OF THE SHOW Prestwick Londis retailer Walter Bryson heads to Atlanta as the Scottish Local Retailer of the Year 2019!

DRIVE BY PROFITS Forecourt progress gathers speed

VAPOUR TRAILS

A look back at SGF’s vaping event

FOX QUITS BOOKER Wholesale veteran joins MFG

See inside Walter’s store – full profile on p44 SLR July 2019.indd 3

16/07/2019 16:37:37

WARNING: This product c which is a highly a SLR July 2019.indd 4 420x297_JUUL_SUMMER_CAMPAIGN_ALL SUBJECTS 10226.indd 3

16/07/2019 16:37:37

Make the Switch

Johnny smoked for 30 years, and switched to JUUL in 2018. TO BECOME A JUUL STOCKIST CONTACT UKSALES@JUUL.COM

Designed for adult smokers. Not for sale to minors. JUUL.co.uk

ct contains nicotine y addictive substance. SLR July 2019.indd 5

16/07/2019 16:37:38 7/2/19 11:31 AM

OUR BRANCHES HEAD OFFICE

SPRINGBURN DEPOT

M8 J15

246 Flemington Street, Glasgow G21 4BY Tel: O141 557 2255 Fax: O141 557 222O DELIVERY HOTLINE: T: O141 557 3214 F: O141 558 3724 OPENING HOURS: Monday to Saturday: 6am-5.3Opm Thursday Late Night: 6am-8pm

POLMADIE DEPOT

M74 J1A

35O Polmadie Road, Glasgow G42 OPH Tel: O141 423 1313 Fax: O141 423 7861 OPENING HOURS: Monday to Saturday: 5am-9pm Sundays: 1Oam-7pm

GATESHEAD DEPOT Earlsway, Team Valley Trading Estate, Gateshead NE11 ORQ Tel: O191 482 5542 Fax: O191 482 3069 OPENING HOURS: Monday - Saturday: 6am-6pm Sunday: Closed

ALCOHOL WHOLESALERS REGISTRATION SCHEME

www.uwgl.co.uk

United Wholesale Grocers Limited is registered with the AWRS OUR URN NUMBER: XSAWOOOOO1OO677 IT IS AN OFFENCE TO PURCHASE ALCOHOL FROM A NON-REGISTERED AWRS SUPPLIER. Strictly Trade Only. Restrictions may apply. All offers subject to availability and VAT where applicable E&OE.

SLR July 2019.indd 6

16/07/2019 16:37:38

July 2019

Contents

Contents ISSUE 195

NEWS p8 p9 p10 p12 p14 p34 p36 p38

Vaping US brand Juul gains further listings in the convenience channel. Appointments Booker veteran Steve Fox to take up Managing Director role with forecourts operator MFG. Wholesalers JW Filshill unveils plans for 120,400sq ft custom-built distribution centre. Retailers Coatbridge duo win much sought-after Cricket World Cup tickets. News Extra Minimum wage Shopworkers trade union Usdaw calls for £10 per hour National Living Wage rate. Product News Glastonbury headliner Stormzy injects some ‘Vossi Bop’ into Coca-Cola’s Relentless brand. Off-Trade News WKD unveils two new canned cocktails, while Barr Soft Drinks moves into alcohol-free spirits. Newstrade Sunday Times praised for maintaing retailer margins in wake of cover price increase.

INSIDE BUSINESS p42 Research Digest IGD predicts UK food sales will grow by £24bn over the next five years with younger shoppers critical to growth in the convenience channel. p44 Store Profile David Bryson & Sons (Londis) We look around the Scottish Local Retailer of the Year’s store. p48 Profile Abdul Majid The Nisa Bellshill retailer won the Industry Achievement Award 2019 at this year’s SLR Rewards. Here’s why. p50 United Wholesale (Scotland) The wholesaler has seen a flurry of change at senior management level as it develops its strategy for long-term growth. p52 MyStore+ We find out how the new ‘virtual sales rep’ app from News UK and McCurrach works in practice. p54 SGF Vaping Event A lot of work still needs to be done before the convenience channel can lay claim to its fair share of this £1bn category. p58 Hotlines Coca-Cola wastes no time in bringing a chilled coffee RTD to market in the wake of its Costa takeover. p78 Under The Counter A store in Vancouver finds a novel way of weaning shoppers off single-use carrier bags. FEATURES p60 Forecourts Certas Energy invests in the Gulf brand with a refreshed programme of investment and innovation. p68 Cider Merrydown moves up a gear in the Scottish market following huge growth north of the border. p70 Breakfast Building a strong core range is a quick and easy way to ensure that you get your share of sales. p72 Tobacco Despite delivering a big chunk of retailers’ cash profits, tobacco risks becoming a forgotten category. p76 Big Night In The sharing superheroes won’t let you down when it comes to ensuring you have all the ingredients for a big night in and a big basket spend.

www.slrmag.co.uk

SLR July 2019.indd 7

ON THE COVER p18 SLR Rewards Walter Bryson takes the Scottish Local Retailer of the Year title, as his Londis store in Prestwick collects a further three trophies.

JULY 2019| SLR

16/07/2019 16:37:42

News VAPING US juggernaut gathers momentum in convenience

PayPoint cuts off gas PayPoint has announced that, despite extensive negotiations, it has been unable to agree appropriate renewal terms for its multi-year contract and will cease working with British Gas and its customers after 31 December 2019. PayPoint’s CEO Patrick Headon commented: “After a long and mutually beneficial partnership, it is disappointing for PayPoint and British Gas customers that we have been unable to agree a renewal of our contract.”

New boss for JTI JTI has named Dean Gilfillan as the new Managing Director of its UK Division. Gilfillan has over 20 years’ experience within the tobacco industry, joining JTI in 2014 as Head of Kazakhstan, Central Asia and Mongolia, and spending the past three years leading the Russian market as General Manager. He replaces Daniel Sciamma who moves in the opposite direction, leaving the UK to lead the Russian market from JTI’s Moscow office.

Cash machine app now shows Post Offices Cash machine network Link has launched an updated version of its ATM finder app to include thousands of Post Office locations across the country. Originally launched in 2017, the app now allows users to see both the location of all 62,500 Link ATMs as well as branches in the Post Office network. The app also gives opening times for branches.

Mars Petcare announces new UK leader Mars Petcare UK has confirmed Helen WarrenPiper’s appointment as General Manager, replacing Deri Watkins. Warren-Piper has over 20 years’ experience in senior sales and marketing roles within the FMCG industry, and before joining Mars she worked for high-profile businesses including P&G, United Biscuits and Premier

Juul expands its reach in the independent channel Juul has agreed a deal with Nisa that means Nisa and Costcutter retailers now have access to the American vaping brand’s Starter Kits and Juulpods. Furthermore, Bestway Wholesale has extended listings to another 17 depots, including the Edinburgh Bellevue and Glasgow Batleys branches, after a successful trial in an initial 10 ‘test’ depots to ensure adoption and compliance of Juul’s Challenge 25 policy. The news coincides with the launch of a nationwide 12 week outof-home advertising campaign for the brand. Commenting on the agreements, John Patterson, Sales Director for Juul Labs UK, said: “Independent and symbol retailers are responsible for almost half of all tobacco sales in the UK but only around 10% of vape sales so the commercial opportunity for them is huge – if they can get their fair share of the category. From a

Juul perspective, they can also play a key role in helping us reach our goal of improving the lives of adult smokers and eliminating cigarettes. Their location, community standing, personal service and long opening hours means that their stores are key

destinations for adult smokers and ideal locations for Juul to be stocked in so we can reach as many adult smokers as possible and encourage them to Make the Switch.” Patterson urged retailers to look at their vaping range to meet the needs of adult smokers, 70% of whom wish to cut down or quit tobacco. “The vape market is changing and while there is still a place for open systems and liquids to satisfy current vapers, adult smokers are looking for simpler, cleaner vaping devices, like Juul, which gives them the nicotine delivery of cigarettes without the complexity associated with open systems. “Pod systems are the fastest growing sector in the vaping category and independent retailers’ fixtures should be reflecting this. Pods are not a fad or trend but is where the category is heading as smokers look for products that are simple and easy to use.”

AGE VERIFICATION Local retailers lead on-trade over proof of age

WHOLESALERS

Improvement in Scottish age check compliance

Wholesale change at top of UWS

Scotland’s convenience stores are stepping up action to keep alcohol out of the hands of young people, according to new data from independent retail age check auditors Serve Legal. Over 3,110 of the firm’s young mystery shoppers were deployed to c-stores across Scotland in 2018 to buy alcohol, to audit retailers’ performance around age checks. Nine in 10 were asked to show age identification at the point of purchase – an improvement on 2017’s pass rate of 88%. By comparison, pubs, bars and late-night venues in Scotland sold alcohol to nearly three in ten young mystery shoppers in 2018 without asking for proof of age. Audit pass rates improved slightly from 68% in 2017 to 71% in 2018.

Serve Legal’s 2018 data also showed improvement around tobacco sales. Pass rates for tobacco age check audits increased from 76% in 2017 to 82% in 2018. It was a different story for Scottish online sales. More than half (57%) of the 227 mystery shoppers who ordered age-restricted goods from online retailers in 2018 took delivery without being asked for proof of age. Ed Heaver, Director of Serve Legal, commented: “It’s hugely encouraging to see that the Scottish convenience sector has reached a 90% pass rate, which is testament to their strategy of tackling the risk of underage sales with a combination of rigorous staff training, efficient operational systems and independent auditing of age check performance.”

United Wholesale (Scotland)’s Operations Director Chris Gallacher has been named as the company’s new MD. Current boss Asim Sarwar becomes Executive Chairman, a role he says will allow him to “focus his energy on the changes required to make sure that UWS remains rooted to his customer-focused vision”. Anshu Chandra assumes the new position of Commercial Director and industry veteran David Riley steps into Chandra’s shoes as Licensed Trading Director. The shuffle follows Osmond Ramsay’s appointment as Finance Director in August 2018 from Co-op Food. Find out more about United’s future vision on p50.

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

SLR | JULY 2019

SLR July 2019.indd 8

www.slrmag.co.uk

16/07/2019 16:37:42

News APPOINTMENTS Steve Fox leaves wholesaler for a future in forecourts

Johnson new Booker retail boss as Fox moves to MFG Booker veteran Steve Fox is to leave the company after 17 years to take up a new role as Managing Director of forecourts operator MFG. MFG is a major customer of Booker and Fox will sit on both the Londis and Budgens retailer councils. He will begin his new role in September and will report directly to Jeremy Clarke, MFG’s CEO with the retail, trading, operations and developments teams reporting to him. Fox will be replaced as Managing Director of Booker Group Retail by Colm Johnson who has been at Booker for 34 years, most recently running its impulse business. Fox became synonymous with Booker’s retail operations during his tenure, overseeing the company’s

Steve Fox relationships with the thousands of Premier, Londis, Budgens, Family Shopper and independent retailers that Booker serves. Charles Wilson, CEO of Booker said: “Steve Fox has done a fantastic job for Booker and the retailers we serve. We wish him and MFG the very

best for the future. Colm Johnson takes over where Steve has left off. Colm has a deep understanding of our retailers and the progress we need to make to continue earning the support and partnership of our retail customers.” MFG CEO Jeremy Clarke added: “This is key appointment for us as MFG drives ahead with strengthening its retail offering, pursues an ambitious retail development programme and builds upon our market leadership position. “Steve brings a wealth of retail and wholesale experience to MFG together with an existing understanding of our business, having worked with us since May 2016 when we rolled out the Londis and Budgens shop formats across our network.”

Quorn tells EU to burger off The House of Lords EU Energy and Environment Sub-Committee held a roundtable discussion with food industry experts last month (19 June) to gather opinions on the European Parliament’s proposal to ban the use of words such as “sausage” and “burger” to describe meatfree foods. Vegetarian groups opposed the proposal, as did industry heavyweight Quorn, whose representative said: “In over 30 years of making meatfree products, we’ve not had a single person complain to us.”

New ‘Living Hours’ campaign unveiled The Living Wage Foundation has launched a ‘Living Hours’ campaign, which calls for a minimum four weeks’ notice period for shifts, with guaranteed payment if shifts are cancelled; the right to a contract that reflects actual hours worked; and a guaranteed minimum of 16

MULTIPLES Supermarket giant eyes up M&S Food customers

hours work a week (unless the

Tesco ponders upmarket c-stores

worker requests otherwise).

Tesco is considering the launch of a new chain of highend convenience stores, based on its own-label Finest Food range. The news comes just nine months after the multiple took a tentative stab at discounters Aldi and Lidl with the launch of its no-frills Jack’s stores. The move upmarket casts some doubt over the future of Jack’s; Tesco has yet to announce any further expansion to the chain of only nine stores.

Waitrose has kicked-off an 11-

Tesco boss Dave Lewis said: “Tesco Finest as a brand is one of the largest food brands in the country. We have a very high percentage of more upmarket customers. “The opportunity to curate that range and bring new things in a more convenient outlet is something that we have tested, is something we’re interested in.” Shares in Marks & Spencer and Ocado – who are setting up a joint venture – fell 3.5% and 4% respectively at the news.

Waitrose cuts waste week trial that lets customers fill up or refill their own containers with a range of products in a bid to cut waste. ‘Waitrose Unpacked’ sees the upmarket multiple’s Botley Road store in Oxford offer loose pasta, rice, coffee, washing-up liquid and fruit & veg, with several beers

CHARITY GroceryAid helping more people than ever

and wines on tap. It also features

Sharp rise in number of grocery workers in need of help, says charity

the UK’s first supermarket “pick

GroceryAid’s 2019 Impact Report has revealed a considerable increase in the number of people receiving support from the charity. GroceryAid helped 15,784 people in need last year, an 8% increase overall. Crisis grants, which are typically needed when someone is suffering a short-term crisis such as being off sick, saw spend increase by 40%, highlighting the number of working colleagues living on a financial

to wind down production at

www.slrmag.co.uk

SLR July 2019.indd 9

tightrope. Ninety-two percent of all crisis grants made during the year were to those of working age. Emotional and practical support also rose, with a 10% growth in use of the charity’s confidential Helpline. Notable rises here included 35% more colleagues seeking financial advice and 24% more accessing Law Express support. To help colleagues facing difficulties GroceryAid has recently

introduced two new services, a Health and Wellbeing resource and a Workplace Critical Incident Support service providing access to onsite visits by counsellors to support individuals who have witnessed or been the victim of a traumatic incident at work. To find out more visit groceryaid. org.uk. For practical advice and support please call the GroceryAid Helpline on 08088 021122.

and mix” for frozen fruit.

Axe falls on Müller dairy Müller Milk & Ingredients is its Foston dairy in Derbyshire with the potential loss of 223 permanent posts. The facility is likely to cease operations by the end of the year. The decision followed a 45-day statutory review period and comes against “a backdrop of declining consumption of fresh milk and significant changes in retailing”.

JULY 2019 | SLR

16/07/2019 16:37:42

News WHOLESALERS Bespoke distribution centre will give Filshill room for expansion into foodservice and on-trade

Coke most chosen brand Coca-Cola has been named most chosen brand in the world for the 7th year running, according to Kantar’s latest Global Brand Footprint report. Colgate had the highest brand penetration. In the UK, Warburtons came out on top once again, with dairyfree brand Alpro the biggest climber. Irn-Bru and Vimto also did well, with both recording 20% growth. Doritos, Pot Noodle and Napolina all entered the UK top 50 for the first time.

Nisa retailers reverse downward own-label trend Nisa retailers are bucking the trend of declining own-label sales in the convenience sector, with combined sales of Heritage and Co-op branded products growing 42.5%year-on-year. This means one in four products sold through Nisa is now an

Filshill to move into new custom-built warehouse JW Filshill is to relocate Simon Hannah, left, to a brand new, purposeManaging Director of JW Filshill and built distribution centre Derek Mackay, MSP at Westway Park, near for Renfrewshire North and West Glasgow Airport. Planning permission has been sought from Renfrewshire Council for the development of a 6.7 acre site on the south side of the park. When completed, the proposed 120,400sq ft facility will trade sectors in the future. The site provide a 12,000-pallet capacity will also include a 10,000sq ft office in a 14-metre high warehouse with complex. 12 loading docks. There will also The development process is likely be 10,000sq ft of fresh and chilled to take 18 months to complete. space to accommodate growth in Simon Hannah, Filshill’s Managing the category and allow Filshill to Director, said the move would expand into the foodservice and on- future-proof the business, secure

employment and improve efficiencies. “We can’t hold off waiting for Brexit,” he commented. “We need to get ready for the next phase of group growth, keep ourselves relevant to the ever-changing market, ensure job security for our staff and continuously improve on providing service excellence to our customers – that’s all hugely important to us. “Westway is an outstanding location for us, less than three miles from our current premises at Hillington and next to Glasgow Airport which will become increasingly important as we develop our international business in the coming years.”

own-label one. Research from HIM suggested that a decreasing

SUSTAINABILITY Scots do their bit for the planet

number – less than one fifth of

Food waste recycling in Westhill installs Scotland hits record high EDGEPoS

c-store shoppers – bought an own-label product this year.

McColl’s hires Chief Commercial Officer McColl’s has appointed Richard Crampton to the newly created position of Chief Commercial Officer. He will join the company in autumn 2019. Crampton is currently MD of the Buying Group at the Co-op, a role he has held since 2015, representing the eight largest Co-ops’ joint interests in grocery retail buying. Prior to this, he spent over seven years at Sainsbury’s in a number of commercial roles.

Paging Doctor Pete SGF Chief Executive Pete Cheema has been awarded an honorary doctorate by the University of Stirling for “excellence in retail and services to the convenience store industry”. Mention was also made of Cheema’s support for the university and his work in connecting businesses with the academic sector. Cheema has been based in Bridge of Allan for

Scots businesses and consumers are doing their bit for the planet by recycling more food waste than ever before. According to new reports published by Zero Waste Scotland, the total volume and its associated carbon savings have leapt by more than 40% in recent years Findings from the Scottish anaerobic digestion (AD) and biogas sector survey 2017, as well as the Scottish composting sector survey 2017, show a significant rise in the amount of recycled food waste. Approximately 158,500 tonnes of household and commercial solid food waste were collected in 2017, compared with the 2013 figure of 111,500 tonnes. The additional increase in food waste sent for recycling (47,000 tonnes) has prevented the release of 41,500 tonnes of carbon dioxide equivalent being released into the atmosphere, as it has been saved from the general waste bin. The figure is the equivalent of taking 22,004 cars off the road in the UK for a year or driving around the world 5,829 times. Producing electricity, heat and gas from food waste through AD captures the energy stored in food that would otherwise be sent to landfill or incinerated. Using this waste helps to reduce reliance on fossil fuels. Previous research from Zero Waste Scotland warned that food waste is worse than plastic for climate change. Food waste is a greater cause of global warming because of all the resources and energy that goes into growing and making the food in the first place. If wasted food is then sent to landfill, the impacts are even worse as this produces and emits methane, one of the most damaging greenhouse gases. In the short-term, methane is many times worse than carbon dioxide.

EPOS SOLUTIONS

Henderson Technology’s EDGEPoS solution has been installed into Westhill Service Station, a Spar- and BP-branded forecourt in Aberdeen. Supplying over 450 sites, Henderson is Northern Ireland’s largest EPoS provider and the move is a sign of the company’s ambition to expand across the UK. EDGEPoS is fully integrated with the BPme App and BPme Rewards Loyalty programme. Robert Simpson, owner of Westhill Service Station, said: “When looking for a next generation EPOS solution we found what we needed with EDGEPoS. Henderson Technology’s understanding of retail, technological expertise and partnership approach have been very important to the success of this project.”

much of his career. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | JULY 2019

SLR July 2019.indd 10

www.slrmag.co.uk

16/07/2019 16:37:43

SLR July 2019.indd 11

16/07/2019 16:37:44

News RETAILERS Coatbridge pair win Cricket World Cup tickets

Spar seeks unsung heroes as People’s Podium returns Spar’s People’s Podium campaign, that celebrates diverse and unsung heroes in local community sport, is back for 2019. To enter, nominators simply need to either comment on the brand’s UK Facebook page or fill in the entry form on spar.co.uk with their nominee’s name, job and why they should win. Dumfries-based gymnastics coach Mike Briggs won the top £10,000 prize last year.

Suresite unveils c-store risk assessments Forecourt health & safety specialist Suresite Group has launched a risk assessment service for convenience stores. According to the most recent Labour Force Survey, the combined injury and illness rate in retail is only 1.5% lower than

Howzat for a prize? Day-Today retailers Shoaib Ahmed (pictured second left) and Khalid Iqbal (pictured second right) were bowled over when they won VIP hospitality tickets to see Pakistan take on India in the Cricket World Cup. The competition for the best cricket-themed Wolf Blass Yellow Label display attracted entries from all over Scotland, with Day-Today stores claiming the top five spots. It was Khalid and Shoaib’s store in Whifflet, Coatbridge that ran out as overall winners though, and the pair were rewarded with a trip to Old Trafford to cheer on Pakistan in a match that Khalid described as “bigger than the final for us”. Wolf Blass brand owner Treasury Wine Estates stumped up the prize, with National Account Manager Kenny Magee handing over the

tickets. Day-Today Sales Manager Fiona Nisbet was also in attendance. The pair’s prize-winning display caught a lot of attention from customers and also helped shift a serious amount of Wolf Blass. Khalid said sales shot up from two to three

cases a week to around 18 – not a bad innings. If only the same could be said for Pakistan. Unfortunately for Khalid and Shoaib, India won the raininterrupted match by 89 runs on the Duckworth-Lewis-Stern method.

in construction (4.7% per annum compared to 6.2%). For more

RETAILERS Keystore Moredun sold

information telephone 01772 790

Retail no more for Moredun’s Asif

901 or email customerservice@ suresite.co.uk.

UK named as shoplifting capital of Europe Shoplifting costs UK retailers almost £11bn every year, according to a new report from Italian data analyst Crime&tech. The figure is the highest of any country in Europe. The report

Keystore Moredun, which recently took part in trial of reverse vending machine technology organised by the SGF, has changed hands after previous owner Asif Bashir decided on a career change. Asif kept the property investment and sold the business – one of three c-stores on the same street – as a going concern on a leasehold basis to Hafiz Abdul for the asking price of £180,000. Experienced retailer Hafiz already owns several stores in the area.

The sale was completed by Christie & Co. The firm’s Edinburgh boss Daniel Arrandale said: “It was the strong community links developed by Asif and his family and their ability to adapt the retail offer as customer needs changed which made it an attractive investment. “The continued reinvestment back into the premises had been significant and acts a good example to other retailers of maintaining a quality business to support an eventual exit and successful sale.”

also said that shrinkage is most likely to affect the grocery and

CHARITY Retailers urged to cheer on industry colleagues and help homeless

cash & carry channels. Grocers

Lend your support to charity kickabout

and c-stores have an average shrinkage rate of 2%, at an annual cost of £4.4bn in the UK.

Fight against fat at risk from DRS, experts warn Boffins from Glasgow and Strathclyde universities and the LSE have suggested the proposed deposit return scheme could “severely hamper” Scotland’s fight against obesity. In a letter to The Herald they said DRS could encourage people to buy larger containers of sugary drinks, as the 20p deposit represented a “less significant” percentage of the overall

JTI is hosting a football tournament for retailers and wholesalers to raise funds for a local homeless charity. The event will be held at Stenhousemuir Football Club on Sunday 28 July at 12 noon, and organiser Chris Innes is calling on industry colleagues to turn out and lend their support. JTI, CJ Lang, UWS, Filshill, Batleys and the charity in question are all competing. Two teams of retailers, one from the east of Scotland and

one from the west, will also take to the hallowed Ochilview astroturf. The format will be a round robin competition of two groups of four. The top two from each group will progress to the semi-finals, with the winners of these battling it out

to be crowned the day’s champions. Chris Innes said: “My idea for this event was to bring our wholesale independent and company representatives together in a fun and competitive environment to support a local homeless charity.” Innes ran a similar event in 2017 (pictured), and hopes to raise even more money this year. It will only cost £2 per adult and £1 per child to cheer the teams on, with refreshments available in the ground.

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

SLR | JULY 2019

SLR July 2019.indd 12

www.slrmag.co.uk

16/07/2019 16:37:45

logicvapes.co.uk

LOGIC COMPACT THE NEXT BIG THING IN VAPING. *

Â£10

Suggested Promo Retail Price

jtiadvance.co.uk

7 March 2019. Retailers are, of course, free at all times to sell JTI products at whatever price they choose.

SLR July 2019.indd 13

16/07/2019 16:37:46

News Extra

Minimum wage

NewsExtra FIND OUT WHO WON WHAT AT THIS YEAR’S SLR REWARDS – P18 BUSINESS COSTS Usdaw demands action to ‘tackle the cost of living crisis’

Convenience Matters with the SGF As retailers are well aware, c-stores operate in a highly regulated environment. There is also an evergrowing list of age-restricted products – around 240 at the last count – which all carry an overhead in terms of staff training, compliance procedures and promoting customer awareness. All of this disguises the fact that retailers police themselves perfectly well and ignores the fact that c-stores have an absolute commitment to responsible community retailing. The Energy Drinks category could fall under the regulatory spotlight next – the Scottish government consults this year on potential restrictions. As long ago as 2014 we put in place measures to ensure our members took a very robust voluntary approach to the responsible sale of energy drinks. This involved ensuring members were aware of the code of practice on their sale, the ‘not recommended’ labelling added to products voluntarily by UK manufacturers and raising awareness of the Scottish-based RRED Campaign (Responsible Retailing of Energy Drinks). This has worked very effectively. Government legislation will simply lead to an even bigger compliance burden on retailers, an inconsistent approach to enforcement – and local authority Trading Standards simply do not have the resources to police this – and risk penalising retailers. We know that significant numbers of young people are simply not in possession of the PASS/ Citizen Card which could be used for ID purposes. Voluntary approaches still work well and retailers can implement them effectively. A light touch and hands off approach from government is surely the way forward.

SLR | JULY 2019

SLR July 2019.indd 14

Shopworkers union calls for £10 minimum wage As local retailers struggle to keep up with ever-increasing business costs, shopworkers union Usdaw reiterates its demand for a £10 minimum wage.

The constantly increasing minimum wage now counts as among the most pressing challenges facing local retailing businesses in Scotland – and that challenge is set to get harder than ever if shopworkers trade union Usdaw has its way. The union responded to the recent Low Pay Commission (LPC) consultation on minimum wage rates by reiterating its demand for a National Living Wage of £10 per hour or more. The LPC is currently taking evidence ahead of making recommendations to the Government about National Living Wage and National Minimum Wage rates to be introduced on 1 April 2020. While very few retailers would have a problem with paying their staff a reasonable age, an increasing number of retailers are struggling to stay afloat, as their wage bills increase by thousands of pounds every year in an increasingly competitive marketplace. Paddy Lillis, Usdaw General Secretary, commented: “Our response to the Low Pay Commission is evidenced by an extensive survey of over 10,000 members, which exposes the extent to which workers are struggling to make ends meet. So we are calling for a substantial minimum wage increases to tackle the cost of living crisis. “Going to work should mean a decent standard of living for all workers, not least young workers. Under 27s are more likely to be paid less than older

colleagues, even when doing the same job. They also often work hours that are not guaranteed in their contract, so they really need fairer and better pay alongside protection against insecure work. “Usdaw has campaigned for years to abolish youth rates. As a result of our efforts, youth rates no longer exist in companies like Tesco, Sainsbury’s, Co-op and Morrisons. Usdaw is now campaigning for a national minimum wage of at least £10 per hour for all ages and also calling on the Government to tackle insecure employment contracts.”

Usdaw’s submission calls for: Q A National Living Wage of £10 per hour or more. Next year’s increase should at least be in line with the planned target of 60% of median earnings. Q The National Living Wage to be paid to all workers, with an immediate first step of lowering the unjustifiable 25-year-old threshold to 21. Q In the interim, youth rates for 16 to 17-year-olds and 18 to 20-year-olds must have a percentage increase at least in line with the National Living Wage, to make up for ground lost in previous years. Q The apprenticeship rate should be immediately raised to the same level as the youth rate and abolished in the longer term to reduce the risk of exploitation.

www.slrmag.co.uk

16/07/2019 16:37:46

SLR July 2019.indd 15

16/07/2019 16:38:04

Comment

FOOD-TO-GO: THE KEY SLR REWARDS TAKEAWAY Racking up thousands of miles doing the SLR Rewards judging and seeing the inside of more than 50 stores in a few weeks is always a rewarding, if challenging, task. Rarely, however, is there a single key learning, a single all-important takeaway. But this year was different. Yes, I saw some fantastic innovation on every conceivable front and I saw some utterly spectacular standards in some breath-taking stores, but the one thing that so many of them had in common was a clear focus on one thing: food-to-go. The received wisdom on food-to-go for many years has been that it works in some areas and not in others. It’s great on high streets, not so much in rural stores. It works when you’re near a school but it’s not so effective if you’re in a housing estate. That received wisdom seems finally to have been discarded for what looks like an all-out charge into a category that has the potential to deliver so much for retailers at a time when many of them are desperately seeking a silver bullet. Footfall, sales, increased margins, a point of difference – a great food-to-go offer can deliver all of those and more. And from a couple of months of visiting some of the best local retailers in the country, I can confirm that food-to-go is now cropping up almost everywhere and, when it’s done well, it’s working almost everywhere. Consumers’ lives are changing and they expect to be able to find high-quality, freshly-prepared food for instant consumption wherever they go – and they’re often prepared to pay a premium for it. Margins in hot food-to-go typically start at around 50% or 60% and head north if you’re canny and careful. It’s no coincidence that our Scottish Local Retailer of the Year (Walter Bryson) and our Young Scottish Local Retailer (Dan Brown) have both completed major refits to allow them to massively up their game in food-to-go. It’s no coincidence every new CJ Lang company-owned Spar store majors on food-to-go. It’s no coincidence that every symbol group is grappling with how to deliver a comprehensive food-to-go solution to their retailer partners. Food-to-go is where it’s at – but there’s one caveat. It’s a point made to me independently by at least half a dozen retailers during the SLR Rewards judging: if you’re going to do food-to-go, you need to do it well. Clean, tidy, well-stocked fixtures inspire customer confidence and confidence drives sales. Do it half-hearted and you’ll be lucky to get half-hearted results. If you’re going to go for it, go all in. Buy or source the best equipment you can, have it properly shopfitted, use quality product, maintain great availability all day long and train your staff in all relevant aspects of both customer service and hygiene compliance. And if that sounds like a lot of hard work, that’s because it is. Doing it well is not an easy task – but if you and your team commit to it, it could help transform your store.

ANTONY BEGLEY, PUBLISHING DIRECTOR

SLR | JULY 2019

SLR July 2019.indd 16

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.

www.slrmag.co.uk

16/07/2019 16:38:08

OneScotlandâ&#x20AC;&#x2122;s Stop nShop 1 o

confectionery manufacturer

e We mak

one y r e v e for

Fort Matilda Industrial Estate, Greenock, Scotland, PA16 7QF. Tel: 01475 721099. Fax: 01475 784644. Email: enquiries @goldencasket.co.uk www.millionssweets.co.uk millionssweets

SLR July 2019.indd 17

@millionssweets

/BuchanansConfectionery

Onepounders

16/07/2019 16:38:14

Cover Story

SLR Rewards 2019

WALTER’S O WINNER! I

t was a great night for Prestwick-based convenience industry veteran Walter Bryson at the SLR Rewards ceremony. Not only was he crowned Scottish Local Retailer of the Year, but his David Bryson & Sons (Londis) store also won the Food-to-go; Forecourt; and Best Refit of the Year gongs. SLR Publisher Antony Begley said Walter had reinvented his store countless times over the years and that he is “always bang on the money and bang in line with the latest trends”. “It’s that desire and hunger to keep evolving and growing year after year after year that makes Walter so special,” said Begley. “That and the fact the store is just an absolute belter.” As a reward for his sterling efforts, Walter will jet off to Atlanta in October for the NACS convention – the world’s biggest convenience retail trade show – courtesy of SLR. Speaking after the event, which he hailed as “a great night,” a modest Walter said the awards were as much down to the store’s staff as to him. He said they “have worked really hard to make it a success and deserve the recognition for all their efforts”. Walter is “very much looking forward” to his trip to Atlanta, although it won’t be his first visit to a NACS convention. It is a testament to his determination to constantly improve his business that Walter self-funded a trip to attend the 2009 edition in Las Vegas. He will be accompanied by Dan Brown, of Pinkie Farm Convenience Store in Musselburgh, who was named as SLR’s firstever Young Scottish Local Retailer of the Year. This new award reflects the vital importance of the next generation of retailers in a time of massive upheaval for the industry. Dan is “something of a phenomenon,” in the words of Begley. “A ferociously committed

SLR | JULY 2019

SLR July 2019.indd 18

www.slrmag.co.uk

16/07/2019 16:38:15

SLR Rewards 2019

Cover Story

OUR

The 2019 SLR Rewards saw Walter Bryson fend off some tough competition from a crop of outstanding stores to be named as Scottish Local Retailer of the Year, on a night when his Londis store collected a further three trophies. His Reward: a trip to Atlanta to find further inspiration at NACS, the biggest c-store trade show on the planet. BY FINDLAY STEIN

man, retail is in his blood and his passion and energy is only matched by his vision and creativity.” Saleem Sadiq was another of the night’s big winners. His trio of trophies represented success in the Beer and Cider; Fresh and Chilled; and Scottish Brands categories. The awards judges described Saleem’s store as “consistently outstanding” with a fresh and chilled range to rival that of a supermarket. They also praised his commitment to supporting Scottish producers. Adding Saleem’s haul to wins for Spar Camelon in the Post Office category and Spar Port Dundas for Vaping Retailer of the Year meant that Spar retailers picked up a total of five gongs on the night. Day Today just missed out on the symbol group bragging rights with a tally of four Rewards. Three of these went to the Day Today Barassie, Troon and Day Today Doonfoot, Ayr stores owned by the retailing partnership of Mandi Duncan and Ross MacPherson. Nisa bagged a hat trick of wins in the category Rewards. It also basked in the glow of Dan Brown’s win, and that of Abdul Majid’s Outstanding Industry Achievement Reward given in recognition of the former SGF President’s tireless work in furthering the interests of local retailers. Praising his “decades-long commitment to our trade,” Begley said Abdul was “a man who has honestly and passionately represented Scotland’s local retailers at all levels”. Fernan Ashiq of Day Today Prestonpans and Emma Morgan of Giacopazzi’s Milnathort also left the glittering bash smiling after splitting the £500 cash prize at the event’s retailer elimination game. Fernan was “well chuffed” to be £250 richer but Emma’s smile was arguably that bit bigger; not only was it www.slrmag.co.uk

SLR July 2019.indd 19

her birthday but Giacopazzi’s triumphed in the Sustainability Retailer of the Year category. The event was held once again at the Radisson Blu hotel in Glasgow and hosted by TV and radio presenter Kaye Adams. Congratulating all this year’s winners, Begley said: “It was a pleasure to be able to recognise and reward their fantastic efforts over the last year.”

SLR OUTSTANDING INDUSTRY ACHIEVEMENT AWARD ABDUL MAJID

Hugely respected and much-liked Bellshill Nisa retailer Abdul Majid was recognised for his outstanding commitment to working on behalf of the whole local retailing industry in Scotland. A former President of the Scottish Grocer’s Federation, Abdul has tirelessly pursued the wider interests of the entire sector over almost four decades and has been instrumental in ensuring that the local retailing sector’s voice is heard.

SPONSORED BY

YOUNG SCOTTISH LOCAL RETAILER OF THE YEAR DAN BROWN REWARD: Also jetting off to Atlanta in October will be Dan Brown, a remarkable young retailer with huge ambitions â&#x20AC;&#x201C; and the work ethic and vision to achive his ambitious goals.

SPONSORED BY

FOOD TO GO RETAILER OF THE YEAR DAVID BRYSON & SONS (LONDIS)

Shortlisted: Q Lifestyle Extra, Motherwell Q Day Today Express, Stenhousemuir Reward: An amazing Skwishee machine plus £1,500 worth of syrups.

SPONSORED BY

FORECOURT RETAILER OF THE YEAR DAVID BRYSON & SONS (LONDIS)

Shortlisted: Q Wrapchic Londis Castlebank Q Spar Renfrew

Shortlisted: Q Costcutter Muir of Ord Filling Station Q Spar Renfrew

Reward: A spectacular meal for two at Marc Greenway’s restaurant at the Waldorf Astoria in Edinburgh.

Reward: A mountain of fantastic Lucozade Ribena Suntory stock to help the winner drive up their margins this summer.

SPONSORED BY

COMMUNITY INVOLVEMENT RETAILER OF THE YEAR UIG COMMUNITY SHOP

Shortlisted: Q Day Today Bourtreehill Supermarket Q Watsons Grocers & Daughters, Moniaive Reward: £500-worth of HarperCollins textbooks to donate to their local school.

SPONSORED BY

RESPONSIBLE RETAILER OF THE YEAR DAY TODAY LOCHSIDE, AYR

Shortlisted: Q Merchant City Post Office (Spar) Q Premier Coylton & Post Office Q Spar Keith Reward: Expenses-paid weekend to London for two.

SPONSORED BY

SCOTTISH BRANDS RETAILER OF THE YEAR SPAR RENFREW

Shortlisted: Q Spar St George’s Cross, Glasgow Q Family Shopper, Blantyre

Shortlisted: Q Day Today Express, Stenhousemuir Q Spar Hillfoot Garage, Bearsden

Reward: Five places on TLT’s SCPLH personal licensing training courses provided.

Reward: An iPad complete with smart keyboard.

SPONSORED BY

SUSTAINABILITY RETAILER OF THE YEAR GIACOPAZZI’S – MILNATHORT

SPONSORED BY

Shortlisted: Q Ninewells Gift Shop & The Little Gift Shop, Dundee

Reward: A trip to Norway, the home of Tomra, for an amazing break that will mix work and play.

Reward: Four tickets to an SPFL game of your choice for the forthcoming season.

www.slrmag.co.uk

SLR July 2019.indd 31

Handcrafted with Love

TEAM OF THE YEAR DAY TODAY BARASSIE, TROON

Shortlisted: Q Family Shopper, Blantyre Q Spar Renfrew

SPONSORED BY

Scottish Gin

SPONSORED BY

SLR | JULY 2019

SLR July 2019.indd 32

SPONSORED BY

www.slrmag.co.uk

16/07/2019 16:38:49

Join our team as we embark on an exciting journey!

· Local products and ranges · Working with over 150 Scottish suppliers · SPAR, an award winning brand · Best in Class Chill offer · Your business partner SparScotlandOfficial

@SparScotland

www.cjlang.co.uk www.sparscotland.co.uk

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

SLR July 2019.indd 33

16/07/2019 16:38:54

News

Products

Glacéau bottles become more sustainable Coca-Cola Great Britain has

ProductNews

revealed its Glacéau Smartwater bottles will be made from 100% recycled plastic (rPET) by the end of the year and confirmed that it is on track to double the amount of rPET used in all other plastic bottles in early 2020. In addition, Coca-Cola is replacing the current green Sprite bottle with a clear pack in order to make it easier to recycle back into new drinks bottles.

Get fit like a pro athlete with Red Bull Red Bull is encouraging consumers to unleash their inner athlete with Red Bull Project Pro, which sees six of the UK’s top athletes offer a never-beforeseen view of how they train and live their day-to-day lives. The campaign is supported by a Ben Stokes TV ad, social media

FOCUS ON FORECOURTS – P60 BAKERY Biggest-ever UK promotion for bagel brand

New York Bakery Co. bangs out bagel tins in new promo New York Bakery Co. has launched its biggest-ever UK&I on-pack promotion offering consumers the chance to win a limited edition Bagel Tin inspired by the brand’s New York roots. The summer on-pack promotion runs until early September, with 40,000 tins up for grabs. The promo features across the brand’s range of boiled and baked New York-style bagels. The new Bagel Tin features the bold brand colours of red,

white and blue and light-hearted messages from 82-year-old Edna, the woman who runs New York in the brand’s TV ad. These messages include “The optimist sees the bagel, the pessimist sees the hole” and “When life gives you lemons, squeeze them on salmon.” To be in with a chance of winning, consumers can visit NYBbageltin.com and enter a unique code from packs before 17 September 2019.

content, sampling in gyms, and in-store activity and promotional placements.

HP Sauce rings the changes for Big Ben HP Sauce has given its 225g glass bottles a cheeky makeover by adding scaffolding to the Big Ben clocktower on its label design. It is the first major packaging refresh for the sauce – named after the Houses of Parliament – in 123 years. The Elizabeth Tower, to use its proper name, is currently undergoing extensive restoration work that is scheduled to finish in 2021, when the label will revert to its old self.

Border Biscuits drastically cuts plastic packaging Border Biscuits is removing 90% of plastic from packaging as part of a wider £1.6m investment. The brand is changing its packaging to feature recyclable cardboard as it targets a significant increase in the sustainability of its products. The overall weight of the Ginger, Classic and Traditional retail packaging has been reduced by 50%. As

SPORTS & ENERGY DRINKS

Relentless has new partner-in-grime Coca-Cola European Partners (CCEP) has announced a new Relentless brand partnership with grime artist Stormzy. The partnership sees limited edition Relentless Energy Origin cans featuring Stormzy’s official #Merky branding hit stores on 1 July, supported by instore POS and off fixture displays. A unique code on Relentless cans bought between July and September gives shoppers the chance to win a Stormzy ultimate fan experience. Stormzy, as we all know, is famous for his chart-topping hit singles ‘Shut Up’ and ‘Vossi Bop’. He is a headline act at this year’s Glastonbury festival and is due to release a second album. Simon Harrison, Vice President of Commercial Development at CCEP GB, said the tie-in was the biggest brand partnership and consumer promotion yet for Relentless. He added: “The cans will hit shelves in July and will tap into the excitement around Stormzy’s new album and Glastonbury appearance.” The partnership was launched at a c-store themed event, where Stormzy unveiled the #Merky Relentless can.

ADULT SOFT DRINKS

Fresh look for Snapple brings Big Apple to Scotland’s chillers Barr Soft Drinks has unveiled a fresh new look for Snapple, to highlight the premium juice brand’s New York City roots. The new designs feature skyscraper-style lettering, new names for each of the seven variants and facts under the lid of each bottle. All products in the Snapple range are soft drinks tax-free and are available in cases of 12 x 473ml glass bottles with a £1.50 RSP. The range comprises Kiwi Meets Strawberry, Snappy Apple, Mango Madness, Packing a Fruit Punch, Lipsmacking Lemonade, Pretty in Pink Lemonade and Just Peachy Iced Tea. Barr’s advises retailers to stock the range in an Adult Soft Drinks fixture, grouped with other premium soft drinks. Bespoke POS is also available.

a result, double the amount of packs can fit onto a single pallet. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | JULY 2019

SLR July 2019.indd 34

www.slrmag.co.uk

16/07/2019 16:38:55

Products

News

Barr’s unveils a summer Bru-nanza Barr Soft Drinks has launched Bru-nanza, its biggest-ever on-pack promotion for Irn-Bru. ADULT SOFT DRINKS SHS reveals new look for Shloer

Range revamp leaves Shloer reimagined

Thousands of summer-themed Irn-Bru branded prizes are up for grabs, including giant Bru-nicorn lilos, beach towels, bum bags and beach balls. Bru-nanza runs during July and August across a number of Irn-Bru plain and

Shloer has unveiled a new logo and graphics across its recently expanded range, ahead of a £1.4m marketing campaign for the adult soft drink brand. Brand owner SHS Drinks said the introduction of a bold ‘S’ device in flavour-related colours “brings both vibrancy and individuality to all elements of the range”. Shloer’s two new product ranges for 2019 – Shloer Spritzed and Shloer Pressed – were launched to meet growing demand for more soft drink choices to consume in place of alcohol. The new ranges are the

first Shloer products not to have grape-juice as their primary base. The first phase of the marketing campaign focuses on Shloer Spritzed. It includes blogger and influencer activity; a programme of competitions and editorial coverage in consumer magazines; and a partnership with Backyard Cinema’s ‘Summer Nights’ events to drive trial at 72 outdoor film screenings for six weeks from mid-July. Nick White, Head of Soft Drinks at SHS Drinks, commented: “Shloer is friendly and informal with a sense of fun; our rebrand brings this

personality to life on pack and will greatly increase engagement and shelf stand-out. Our products are still the same great quality that consumers know and trust, but our look is now very much Shloer ‘reimagined’.” Shloer Spritzed has an RSP of £2.49 and is available in trade cases of six 700ml bottles. Shloer Pressed single 330ml cans (RSP £1) are sold in cases of 12; 4 x 330ml multipacks (RSP £3.50) are available in cases of six. For more information visit shsdrinks.co.uk. For sales enquiries call SHS Drinks on 01452 378555 or email info@shs-sales.co.uk.

PMP packs (regular, sugar-free and Xtra).

PepsiCo brands ‘Grab Summer by the Snacks’ Walkers Sensations, Doritos and Max Strong are teaming up in a new campaign designed to drive impulsive summer sales under the strapline ‘Grab Summer by the Snacks’. The brands are joined by 7up Free and Pepsi Max in the promo which runs until 27 July. The campaign uses a flexible messaging system which targets consumers based on their location.

q b B

FAMILY

FAVOURITES

ADD SOME sizzle TO YOUR SALES WITH YOUR NO.1 BBQ RANGE

STOCK UP NOW J20

NO.1 ADULT SOFT DRINKS BRAND1

FRUIT SHOOT

NO.1 KIDS BRAND2

PEPSI MAX

ROBINSONS

NO.1 UK SQUASH

NO.1 SUGAR FREE COLA BRAND IN THE IMPULSE MARKET4

Sources:*Nielsen Scantrack, Total coverage, Value, MAT TY to 16.03.19, **Nielsen Scantrack, Total Coverage, Value Sales, MAT to 16.03.19 & CGA, Foodservice and Licensed, Value Sales, MAT TY to 31.12.2018, ***Total Cov 52wks to 16.03.19, Nielsen Scantrack, **** IRI 52wks to 17.03.19 Total Convenience.

www.slrmag.co.uk

SLR July 2019.indd 35

JULY 2019 | SLR

16/07/2019 16:38:56

News

Off-Trade

Boë breezes into Scotmid Stirling-based Boë Gin has announced a listing for its award-

Off-TradeNews

winning Boë Violet flavoured gin in over 160 Scotmid stores. The new listing comes on the back of a successful year for the business. Last month, it released financial results which showed a £1.1m increase in operating profits and a £7.4m increase in gin sales. Launched in 2016, Boë Violet was one of the first full-strength flavoured gins to market.

Glenfiddich looks to its roots for redesign Glenfiddich has paid homage to its origins in the Valley of the Deer with a new package design for its 12- and 15-Year-Old whiskies. Small Batch 18-YearOld will get a new look in 2020. The 12-Year-Old has been given a makeover and is now known as the ‘Our Original Twelve’, in a nod to the brand’s signature expression. The 15-Year-Old is rebranded as the ‘Our Solera

BIG NIGHTS IN MEAN BIG BASKET SPEND – P76 ALCOHOL-FREE It’s a long way from Strike Cola to Stryyk Not Vodka

Barr makes move into nonalcoholic spirits market Barr Soft Drinks has bought a 20% stake in Elegantly Spirited, producer of the Stryyk range of alcohol-free spirits, for £1m. In addition to the deal, Barr’s Funkin subsidiary will exclusively distribute the Stryyk brand In the UK. Stryyk launched last July with Not Rum and Not Gin. Not Vodka followed in December. Kent-based Elegantly Spirited was formed by Alex Carlton and Andrew King, also founders of Funkin. Carlton commented: “We are delighted to partner with AG Barr and also collaborate with Funkin, a business very close to my heart. The agreements make great sense strategically and could not have come at a better time.

“Demand for zero-proof spirits is going through the roof and I am confident our liquid is the best in class and our proposition easily understood. The future is bright and super exciting.” Barr Soft Drinks boss Roger White added: “More and more consumers are seeking a drink that adds positively to their social experience but without the side effects of alcohol. “We’re very excited to be involved in both investing in and growing the Stryyk brand in this new and fast-moving consumer category.” The low- and no-alcohol spirits sector has become increasingly crowded of late, with big hitters like Pernod Ricard, William Grant and Diageo all fighting for market share.

Fifteen’.

Loch Lomond Group changes hands Investment firm Hillhouse Capital Management has partnered with the management team from Loch Lomond to acquire Loch Lomond Group from Exponent Private Equity for an undisclosed sum. The spirits manufacturer is keen to further develop its international presence, particularly in Asia, a market where Hillhouse has deep knowledge and strong business relationships.

Captain Clueless returns Captain Morgan is once again changing its name with seven limited-edition bottles.Available to the convenience channel now, the brand’s rum bottles will see ‘Morgan’ replaced with one of either Drama, Banter, Comedy, Genius, Retro, Clueless and Karaoke, giving consumers the opportunity once again to celebrate the unique personalities of those in their

VODKA Diageo brand has ‘refreshed energy’

Smirnoff sharpens up Smirnoff has unveiled a new look across its entire product portfolio, to bring – in the brand’s words – a refreshed energy to busy vodka shelves. Brand owner Diageo said that first-look consumer research found the new design outperformed the previous bottle on measures such as shelf stand-out, quality perception and preference vs competitors. The new look draws on inspiration from previous bottles in a contemporary way, with bold visuals and the return of the Smirnoff shield, which features prominently across all new packaging. The updated design is currently rolling out across Smirnoff No. 21 Vodka and all other flavour variants, with fractional sizes due for release in September. Commenting on the new look, Oliver Clements, Brand Manager Smirnoff Europe said: “We are proud to introduce a new packaging design for the brand, striking a balance between classic and contemporary. The redesign heroes the extraordinary heritage that the brand is famous for, with the reintroduction of the Smirnoff shield and the new label highlighting the traditions behind the world’s number one vodka.”

WINE

Echo Falls gets into the summer spirit Accolade Wines has introduced a new spirit and wine fusion under its Echo Falls brand. Echo Falls White Wine and Rum Fusion (ABV 9%) is a blend of white wine; a rum infusion; and sweet coconut and pineapple flavours. It has an RSP of £6 for a 75cl bottle and is available now from Batleys. David White, Marketing Director at Accolade Wines recommended that retailers stock up and site in the chiller to capitalise on summer impulse purchases. For further information, retailers should email customerservices@ accolade-wines.com.

friendship ‘crew’. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | JULY 2019

SLR July 2019.indd 36

www.slrmag.co.uk

16/07/2019 16:38:56

Off-Trade

News

Diageo’s master whisky maker honoured for services to Scotch

RTDs SHS Drinks gets on-trend in the off-trade

WKD brings bite to RTD cocktails RTD brand WKD has launched two new ready-to-serve cocktails in cans. Available in cases of 12 x 440ml cans price-marked at £2.69, WKD Venom and WKD Anti Venom are 6.5% ABV pre-mixed cocktails inspired by the popular drinks of the same names available in clubs and bars. The two new variants have a “fun and fruity” flavour profile, according to brand owner SHS Drinks. WKD Venom consists of WKD Blue, bourbon and orange flavour while WKD Anti Venom contain WKD Berry, peach

schnapps and pineapple flavour. Both contain caffeine. The packaging design is intended to lend cans an “imposing” on-shelf presence with clean, bold, colourful branding and striking snakeskinstyle graphics. The new RTDs are available from Unitas, Booker and Batleys. To support the launch, POS material will be augmented by a social media campaign designed to generate substantial consumer awareness. “This innovation is all about WKD driving growth through a

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

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

SLR July 2019.indd 37

Dr Jim Beveridge, Johnnie Walker Master Blender, has

convenience-based solution that reflects consumers’ on-trade habits and preferences,” said Karen Salters, Group Director for brand owner SHS Drinks. “We’re embracing the on-trade cocktail trend and enhancing it for the take home consumer. Our latest new products are yet another example of WKD’s longestablished role as a catalyst for fun.” For more information visit shsdrinks.co.uk. For sales enquiries retailerss can call SHS Drinks on 01452 378555 or email info@shssales.co.uk.

been awarded an OBE in the Queen’s Birthday Honours List for his outstanding service to the Scotch whisky industry. The accolade comes as Johnnie Walker prepares to celebrate its 200th anniversary next year. Beveridge is only the sixth person in the brand’s history to have held the position of Master Blender. Beveridge was inducted into the World Whisky Hall of Fame in 2015 and has also twice been named Master Blender of the Year.

Stocktaking:

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

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

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

We count ... so you don’t have to.

JULY 2019 | SLR

16/07/2019 16:38:57

News

Newstrade

Troubled times at Scotsman Journalists at The Scotsman

News& Magazines

newspaper have hit out at what they refer to as “constant cost-cutting” by owner JPI Media, which bought the former Johnston press title out of administration last year. The company announced earlier this year that 70 full-time editorial jobs were to be cut across its regional titles. These potentially include 10 roles at Scotsman Publications, which publishes The Scotsman and the Edinburgh Evening News as well as Scotland on Sunday. Staff at the papers said that they believed JPI Media was “keen to see the loss of trained journalists and the demise of the print product” while hiring “lowpaid digital journalists”. The Scotsman Publications NUJ chapel said in a statement: “This latest round of jobs cuts leaves the remaining staff questioning how they can possibly produce their newspapers under what would reasonably be considered intolerable conditions. There has been little or no guidance from

TAKE A BIGGER BITE OF THE BREAKFAST MARKET – P70 NEWSPAPERS NFRN urges members to support title in wake of maintained retailer margin

Sunday Times praised for price rise and pro rata terms With many publishers cutting the margins they pay retailers, the Sunday Times has been applauded by the sector for accompanying a cover price increase with pro rata terms. The Sunday Times has been praised by the news retailing trade for bucking the recent trend of shrinking margins for retailers by announcing that its latest cover price increase is being accompanied by pro rata terms. The cover price of the Sunday paper has increased by 20p to £2.90, which publisher News UK says will deliver an extra £5.6m in cash through retailer tills a year, equating to an extra £1.2m in additional margin. With the percentage margin that retailers receive maintained at 21%, Sunday Times stockists

will now make 60.9p per copy – an extra 4.2p on every copy sold. NFRN National President Stuart Reddish applauded News UK for the move, stating: “This is great news for Sunday Times stockists and is timely, as it comes just a week after delegates at our centenary conference in Brighton voted unanimously for the NFRN’s national executive committee to negotiate with all publishers so that when cover prices rise margins remain at least pro rata, with the new rates taking effect from the first day of any price increase.

“Members made it abundantly clear that with operational costs going ever upwards, they would only back those publishers that demonstrated support for news retailers by accompanying price rises with pro rata terms. I encourage all members to now give the paper their strong backing.” Sunday Times Managing Director Chris Duncan said: “We know that our retailers across the country help us reach the nation every day, and we are happy to mirror the price rise in a retail pence per copy rise.”

our managers – rather, there has been almost total silence on what our future holds.” Following a wave of costcutting measures, JPI Media announced recently that it would close 10 local newspapers across the UK, following previous reports of three other titles facing closure. The company said no redundancies would result from those closures.

Retailer wins holiday for championing Sun Savers News UK has rewarded retailer Sailesh Tanna of East Leake Post Office with a £1,500 holiday for being the top Sun Savers advocate in the country. The prize follows his efforts championing the brand during The Sun Savers education campaign to inform customers about the programme. Fifty runners up also each received

NEWSPAPERS

Retailers reminded they can ‘take control of cover prices’ The NFRN has contacted news retailers to remind them that they “could take control of cover prices” after newspaper publisher Reach again raised the price of one of its Sunday papers and reduced the percentage margin that retailers receive by 0.4%. The price of the Sunday Mail recently rose by 10p to £2, with Reach advising retailers that they would now receive 40p for each copy, a move described by NFRN National president Stuart Reddish as a “kick in the teeth for struggling independent retailers”. He commented: “Since the beginning of the year Reach has systematically cut terms when it has increased cover prices and yet the publisher seems to think that retailers should be grateful for the small crumbs on offer. The retail letter announcing this latest move is highly misleading as Reach is hiding the fact that it has, once again, cut retailers’ margins. “Without pro rata terms to offset increased overheads, newsagents are being squeezed

Margin erosion in 2019 Q January: Reach increased the price of weekend copies of the Daily Star but reduced terms from 22.50% to 22%. Q March: Daily Mirror increased its price, but the retail margin was cut to 20.80% Q April: Margin on daily editions of the Daily Express was cut to 22% and to 20.6% for its weekend titles and the Saturday Daily Star. The Sunday margin fell to 20.54%. Q June: Cover price rises on the Sunday Mirror and Sunday People were accompanied by a 0.5% fall in terms. financially. That’s why I am reminding retailers that they can exercise their right in obliterating the printed RRP on the Sunday Mail and set their own cover price and determine their own margin and that if they offer a home news delivery service that they can increase their charge.”

£50 vouchers for their involvement with the initiative. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | JULY 2019

SLR July 2019.indd 38

www.slrmag.co.uk

16/07/2019 16:38:57

KICK-OFF YOUR SALES

WITH PROMOTIONAL PREMIER LEAGUE PACKS

70%

OF PREMIER LEAGUE VIEWERS DRINK SOFT DRINKS*

GIVE YOUR CUSTOMERS A CHANCE TO

To find out more visit www.cokecustomerhub.co.uk or call Customer Hub

& HELP CHANGE LIVES THROUGH FOOTBALL

on 0808 1 000 000

Â©2019 The Coca-Cola Company. Coca-Cola Zero Sugar, Dr Pepper, Fanta, Oasis and Sprite are registered trademarks of The Coca-Cola Company. All rights reserved. *BARB Additional Panel Classifications (Season 16/17, based on 3 minute consecutive reach)

SLR July 2019.indd 39 COC1109_PL_SUMMER_Ad_A4_CONVENIENCE_AW1.indd 1

16/07/2019 16:38:58 21/06/2019 15:54

SLR July 2019.indd 40

16/07/2019 16:38:59

SLR July 2019.indd 41

16/07/2019 16:38:59

Inside Business

Research Digest

SCOTTISH HIGH STREET RETAIL JOBS ‘FELL BY 8.6%’ IN FIVE YEARS A new report from the Office of National Statistics has shown that retail jobs on Scotland’s high streets plummeted by 8.6% over the five-year period from 2012 to 2017. The ‘High Streets in Great Britain’ report also found that Scotland recorded the secondworst performance on retail jobs of the 11 nations and regions surveyed, after Wales. David Lonsdale, Director of the Scottish Retail Consortium, said: “These disappointing, albeit hardly surprising, figures show just how challenging life is on Scotland’s high streets. “We have consistently said retail is going through a period of profound change and reinvention as retailers adapt to new technology, changing consumer behaviour, squeezed household finances, and rising costs. Despite all of this we are convinced retailers will continue to have a strong physical presence in thriving and attractive high streets, but less so than is the case now. Lonsdale blamed government policy for “undoubtedly ratcheting up the cost of employing people in stores and the cost of maintaining a store presence,” which subsequently meant that digital routes to market became more attractive and affordable to retailers. “This is upending many retail business models,” he continued, “and means the industry will look very different in the future. “With the business poundage rate at a 20-year high and with 5,000 Scottish retail premises paying more for the large firms’ supplement than their English counterparts, firm action is needed from both government and councils to cut the cost of doing business.” 42

SLR | JULY 2019

SLR July 2019.indd 42

FOOD SALES TO GROW BY £24bn BY 2024 The latest IGD forecasts predict that UK food sales will grow by £24bn over the next five years with younger shoppers set to be critical to growth in the convenience channel.

he UK food and grocery industry is forecast to grow by £24.1bn – or 12.5% – by 2024, bringing the market to a total value of £217.7bn, according to the latest forecasts from research organisation IGD. The growth forecasts come with major caveats, however, with almost two-thirds of cash growth expected to come from online and discount retailers who are predicted to grow their combined market share from 18.6% to 23.4% over the same period. Supermarkets and hypermarkets are expected to account for half of the market (50.1%) by 2024. The convenience channel is nonetheless forecast to deliver the second-biggest gain in sales with an increased focus on younger shoppers highlighted as being critical to unlocking growth for the channel. Sales from this group are expected to grow by a significant 16.6%, representing £6.9bn in value. On average, shoppers now spend eight minutes shopping at a convenience store, according to IGD,

and the average shopper conducts seven shopping trips at convenience stores in a month. Simon Wainwright, Director of Insight at IGD, said: “Despite only marginal growth in market share, the convenience channel will deliver the second biggest gain in sales as retailers update their stores to meet the demand for smaller and more frequent shopping trips. Younger shoppers are more predisposed to shopping at convenience stores than older shoppers. Having grown up in the era of ‘new convenience’, offering wider ranges, longer opening hours and supermarket quality, younger generations will be key to driving ongoing growth, but they do have high expectations. “Convenience formats and ranges are increasingly being tailored to local demographics to engage shoppers more effectively. Creating an easy shopping experience is an increasing focus for convenience retailers, with Co-op and Sainsbury’s trialling payment by app technology.”

Wholesale sector boosts senior female leadership by 55%

he number of senior level women working in UK grocery and foodservice wholesale sector has increased by 55% over the past three years, from 11% to 17%. That’s one of the key findings from a new HIM and MCA Insight study commissioned by Women in Wholesale (WiW) which investigated the progress that’s been made since the launch of the WiW initiative in 2016. WiW supports women working in wholesale with educational networking events, sponsorships and coaching. Wholesalers and buying groups that have successfully boosted their female leadership teams include CJ Lang, Sugro, Booker, Musgrave, Reynolds, Country Range, Blakemore and Birchall. The research also revealed changes in the ‘key barriers to progress’ that were cited by women in the corresponding research two years ago. Flexible working is a big issue for just 15% of respondents versus 53% in 2017. Key barriers to progress still include a lack of personal career development (57%) feeling motivated and inspired at work (31%) and a lack of respect (28%), compared with 51%, 34% and 38% respectively, in 2017. Other interesting highlights from the report include 57% of female respondents and 30% of male respondents saying they have experienced gender discrimination in the workplace. Some 66% of females said that gender diversity is more of an issue for wholesale than it is for other grocery and convenience sectors, an improvement on 81% in 2017. www.slrmag.co.uk

16/07/2019 16:39:00

Research Digest

Inside Business

Human lung tissue ‘unimpacted by vapour’ Despite delivering more nicotine than cigarette smoke, scientists from blu owner conclude that vapour didn’t trigger ‘significant toxological responses’ under test conditions.

ew research by blu owner Imperial Brands was presented at the 58th annual meeting of the Society of Toxicology earlier this year. The study compared the in-vitro toxicological responses of a 3D model of human lung tissue to vapour and cigarette smoke and the results “were conclusive”, says Imperial. While vapour delivered significantly more nicotine compared to the cigarette smoke, it did not trigger any significant toxicological responses under test conditions. The product used was myblu vapour (1.6% nicotine; tobacco flavour). Arguably the most striking observation, says the company, involved the cilia on the surface of the cells: mobile, hair-like structures that line the airways and lungs, helping keep them clear of mucus and dirt. After four weeks of repeated exposure to undiluted vapour,

there was no recorded decrease in either the number of cilia, or the number of ciliated cells. The observations were in marked contrast to cigarette smoke’s negative impact on lung cells, even when diluted at 1:17 ratio. Dr Roman Wieczorek, Group Biological & Toxicological Laboratory Manager at Imperial Brands Science and study author, commented: “We continue to investigate the mechanistic effects of our Next-Generation Product (NPG) portfolio to substantiate its harm reduction potential. Our ethical assays use cells derived from humans. This negates the need to test on animals, while targeting multiple endpoints of direct relevance to adult smokers.” Dr Grant O’Connell, Head of Scientific Affairs at Imperial Brands, added: “Our process of scientific substantiation focuses on all aspects of population level harm

reduction, allowing us to develop robust scientific evidence packages that demonstrate the risk-reduced potential of our NGPs. Unfortunately, media headlines based on misleading science containing non-realistic human exposures and extrapolated results continue to prove confusing and unhelpful at best and disastrous to the global public health agenda at worst. Imperial Brands and blu urge public health bodies, regulators and journalists across the world to cut through the misleading, agenda-driven murk and help us in our mission to deliver something better for the world’s smokers.”

LIPTON IS THE UK’S NO.1 ICE TEA BRAND*

Source: *Nielsen Scantrack Data, Total Coverage, Value Sales, 52wk data to 13.4.19

Time to

www.slrmag.co.uk

SLR July 2019.indd 43

JULY 2019 | SLR

16/07/2019 16:39:04

Inside Business

SLR Rewards 2019 | Scottish Local Retailer of the Year

COURAGE AND VISION MARKS WALTER AS THE SCOTTISH LOCAL RETAILER OF THE YEAR After almost 120 years in business, Walter Bryson’s Londis forecourt business in Prestwick has once again raised the bar when it comes to staying ahead of the curve thanks to a huge new refit that shifts the focus firmly onto food-to-go. His Reward? A trip to NACS in Atlanta this October! BY ANTONY BEGLEY

SPONSOR: JUUL LABS The mission of JUUL Labs is to improve the lives of the world’s one billion adult smokers, 7.2 million of whom live in the UK. Launched in the UK convenience channel in March 2019, JUULpods contain patented nicotine salts which replicate the nicotine delivery of cigarettes providing the adult smoker with a simple and satisfying alternative to combustible tobacco products. Now available in two nicotine strengths (18mg/ml and 9mg/ml) and a range of six adult-oriented flavours, JUUL provides retailers with a fantastic opportunity to help the 70% of adult smokers who want to make the switch from cigarettes.

SLR | JULY 2019

SLR July 2019.indd 44

here are many skills and character traits that tend to separate great retailers from the crowd but arguably the most important one is an ability to continually stay ahead of the curve. That’s not as easy as it sounds, given how fast the industry changes and how quickly shopper consumption patterns evolve, but having the courage and vision to stay in tune with the latest shopper trends and deliver against them is what lies at the heart of any local retailing business that has ambitions of being around in 10, 20 or 50 years’ time. One retailer that has stood the test of time by continually and successfully reinventing his business decade after decade is Prestwick Londis forecourt retailer Walter Bryson. The latest in a long line of major overhauls of his store took place last year and helped ensure he was crowned as the Scottish Local Retailer of the Year 2019 at last month’s SLR Rewards. The third-generation David Bryson & Sons business was first established an astonishing 117 years ago and is now managed by Walter and Peter Bryson. To still be here after almost 12 decades is remarkable enough. To still be here with a business that is arguably in better shape than it has ever been is nothing short of astonishing.

There are of course many factors behind the success of the business including tenacity, hard work, vision and commitment but it’s Walter and his team’s hunger to remain not just relevant but vital to the needs of his customers that mark the store out as something more than a little special.

ENDURANCE MATTERS We’ve been writing about Walter’s store in Prestwick since the very first issue of SLR. Yes, he was featured in that very first issue back in May 2003. And in the intervening years we’ve covered at least three full-scale refits as well as countless examples of Walter’s vision. He was, for example, among the first to go hard at local sourcing. He was among the first to begin truly embracing food-to-go. He had a coffee machine way back before it was de rigueur. I could go on. The point here is that Walter has always made time in his diary to get out of the store, attend industry events, visit other retailers, read the trade magazines and generally stay bang up to date with the latest consumer shopping trends. His long experience in the trade and a certain entrepreneurial flair has then allowed him to sort out what he sees as the long-term game-changers from the shortwww.slrmag.co.uk

16/07/2019 16:39:05

Scottish Local Retailer of the Year | SLR Rewards 2019

Inside Business

The new Stone Willyâ&#x20AC;&#x2122;s serve-over counter has grown sales by 31%.

A rare Covent Garden selfservice unit broadens choice. Walter has doubled up on coffee by adding a second Costa machine.

A huge array of freshlyprepared fillings offer choice to customers. The display cabinets maintain full availability all day long.

The forecourt has also been completely overhauled.

There are plenty of hot options for hungry customers.

The 117-year history of the business is highlighted in-store.

www.slrmag.co.uk

SLR July 2019.indd 45

Lunch on the go options greet customers walking through the door.

JULY 2019 | SLR

16/07/2019 16:39:14

Inside Business

SLR Rewards 2019 | Scottish Local Retailer of the Year

term fast-buck trends. Just as importantly, he has coupled that vision and experience with a willingness to invest in his store, often very heavily. The latest refit is a fine example of Walter bringing all his retail nous to bear on the creation of what is, to all intents and purposes, a brand-new store. At least half of the store is pretty much unrecognisable from the one it replaced. As with all refits, however, there are two main objectives. The first is simply to freshen up the shopping environment with shiny new fixtures and fittings, new signage and the like. The second, and infinitely more important objective, is to look at the store from a macro perspective, increasing focus on categories and solutions that are more relevant to today’s customers and reducing the space given over to slower selling, less profitable, shrinking categories. There’s no question Walter has nailed objective one with the refit. The shopfitting is of the very highest standard and the store would easily hold its own against a Pret a Manger or an M&S or a Starbucks in terms of look and feel from the customer’s point of view. But it’s on the second objective that Walter has really delivered. Broadly speaking, the main point of the refit was to massively increase the focus on food-to-go. The store had been increasing its food-to-go over the last few years and was seeing some good successes. The offer had developed over time however on an ad hoc basis and Walter realised that, to really take the store to the next level, he would be best to rip it up and start again. Slush sells well in the store, particularly among schoolkids.

SLR | JULY 2019

SLR July 2019.indd 46

Only in that way would he be able to create the store he really wanted, one that was more of a food-to-go outlet with a convenience store attached, rather than the other way round. The logic is inescapable: the constantly rising costs of business coupled with rocketing demand for hold and cold food-to-go (with margins of 60% and upwards) are only pointing in one direction.

ALL ABOUT FOOD-TO-GO To that end, Walter decided to give over at least half of the store to food-to-go and he wanted it to look amazing for his shoppers. And, to be fair, he’s nailed it. A full Stone Willy’s serve-over counter was added along with additional chilled foodto-go space. This allowed him to provide an extensive range of freshly made premium hot and cold lines including hot and cold filled rolls, baguettes, pasta pots and hot pizza wraps. There’s a Covent Garden self-service soup dispenser too, which I’ve never seen before. A full range of high-margin complementary products were also added to boost footfall, basket spend and profit including slush, Tango Ice Blast machines and a second Costa coffee machine. To make the new food-to-go offer much more visible to customers from outside, the main wall was replaced with an enormous plate glass window that lets passers-by (and fuel customers) see the impressive food-to-go counter. In fact, it’s hard to miss from outside the store. Everything has been done to the very highest standards, which partly explains why the store has already seen a 31% increase in food-to-go sales – and that figure is still rising. Just as importantly, the store’s overall margins have increased significantly too which is critical given the fact that the shift of focus onto foodto-go, a much more labour-intensive activity, has meant hiring new staff and creating employment in the local area. Walter has carefully avoided throwing the baby out with the bath water however by taking a forensic look at the rest of the business, the bit that looks a lot more like a traditional convenience store. With much reduced space available he has been forced to concentrate on faster-moving and higher margin lines and had to take some tough decisions. The grocery range has been decimated and pet food is all but gone, for example. Even the soft drinks range has been drastically reduced – but that courage has paid off in higher profits and less time re-stocking and managing the reduced convenience offer. It’s all upsides, despite Walter’s concerns about de-listing so many lines. The refit also saw the forecourt given a new lease of life with a redesign very much

Higher margin lines like Tango Ice Blast help grow cash profits.

in keeping with the slick new look of the revamped store. Fuel still accounts for 69% of sales and while it may not offer a high margin, fuel definitely drives footfall. The revamped food-to-go offer means that much more of that footfall is being converted into sales within the store itself, and high margin sales at that. All told, Walter’s refit is a fine example of how to turn a vision of the future into a reality today. The future is going to be all about margins and creating destination stores that give shoppers compelling reasons to pass other stores to get to yours. David Bryson & Sons is an inspiring example of that strategy in action and it’s well worth a visit if you can find the time.

WORTHY WINNER John Patterson, UK Sales Director of the awards category sponsor JUUL Labs, commented: “The world of local retailing is changing fast in Scotland, as it is across the rest of the UK and it’s retailers like Walter who have the courage to stay ahead of the curve who stand to benefit most in a hugely competitive market. Walter’s store is simply exceptional and combines fantastic vision with outstanding execution. A huge congratulations from all the team here at JUUL Labs. A very, very worthy winner of the Scottish Local Retailer of the Year title.” www.slrmag.co.uk

16/07/2019 16:39:16

SLR July 2019.indd 47

16/07/2019 16:39:17

Inside Business

SLR Rewards 2019 | Outstanding Industry Achievement Award

A LIFETIME OF SERVICE TO OUR TRADE HONOURED Bellshill Nisa retailer Abdul Majid was handed the Outstanding Industry Achievement Award 2019 at this year’s SLR Rewards for his unrelenting and passionate commitment to the Scottish local retailing sector. BY ANTONY BEGLEY

Abdul has a passion for cultivating important contacts and working on ground-breaking initiatives.

Abdul accepts his award from sponsor Faisal Sattar of M-House Solutions.

hen you look at today’s convenience retailing trade in Scotland, it’s tempting to think that we’re faced with more and stiffer challenges than ever before. But for those with long memories and long experience in the sector, it’s clear that being a Scottish local retailer has never been easy. Wave after wave of threats, problems, legislation, changing governments and shifting consumer consumption patterns mean that Scotland’s retailers have always had to stay on top of their game and fight their corner against a constant flood of challenges. One man who has resolutely and consistently fought as hard as any on behalf of our sector is Nisa Bellshill retailer Abdul Majid. It’s hard to find a retailer more widely respected and liked than Abdul and the reasons for that are many and varied – but they all boil down to the same thing: Abdul has always had the best interests of this sector at heart, he has invariably put those interests before his own commercial interests and he has had the passion and courage to speak up on behalf of this industry when he felt it was necessary. He has never been afraid to ruffle feathers and he has never given anything other than 100% to the many causes he has backed over his long career spanning almost four decades. He was instrumental in the 48

SLR | JULY 2019

SLR July 2019.indd 48

re-shaping of the Scottish Grocers’ Federation in 2015, helping to bring in new Chief Executive Pete Cheema and relaunch the Federation with a new vigour and pragmatism. Indeed, he is a former President of the SGF himself (2014-2016), working himself into the ground during his Presidency – but it would be wrong to assume that he was any less active in the years before or since his Presidency. His uncanny knack of getting to know people in high places has helped him ensure the industry’s voice is heard at the top tables, particularly in political circles. Remarkably, he also managed to successfully combine his work on behalf of the wider trade with running a consistently high performing store in Bellshill, first with Spar and now with Nisa. No stranger to the limelight, much of the work that Abdul does on behalf of the trade, however, happens under the radar. He has also managed to find time to actively support a number of charities that he holds dear. Faisal Sattar of category sponsor M-House Solutions comments: “Abdul is one of the most active members of the entire Scottish local retailing community and has worked tirelessly on all our behalfs. At M-House Solutions, we are delighted to play our part in recognising and honouring a remarkable man.” www.slrmag.co.uk

16/07/2019 16:39:18

SLR July 2019.indd 49

16/07/2019 16:39:19

Inside Business

United Wholesale (Scotland) Management Restructure

GALLACHER TAKES OVER AT UWS TO ‘CONTINUE DELIVERING GROWTH’

New MD Chris Gallacher, Executive Chairman Asim Sarwar, Commercial Director Anshu Chandra and Finance Director Osmond Ramsay.

SLR | JULY 2019

SLR July 2019.indd 50

www.slrmag.co.uk

16/07/2019 16:39:21

United Wholesale (Scotland) Management Restructure

Inside Business

Off the back of another strong year, United Wholesale (Scotland) has promoted Chris Gallacher to the role of Managing Director amid a flurry of change at senior management level as the company continues to develop its strategy for long-term growth.

lasgow-based wholesaler United Wholesale (Scotland) has unveiled a raft of important changes at the business as it continues to develop the strategy it believes will deliver long-term sustainable growth. The most eye-catching change of all is the news that Chris Gallacher has taken over the role of Managing Director from Asim Sarwar who has become Executive Chairman, a role he says will allow him to “focus his energy on the changes required to make sure that UWS remains rooted to his customer-focused vision”. Anshu Chandra has been appointed to take on the new position of Commercial Director to take overall control of the commercial function at UWS. Chandra, who was the Licensed Trading Director, will be responsible for the day-to-day strategic direction of the commercial team as well as focusing on new business opportunities. In a related move, David Riley joins the team this month to take over from Chandra as Licensed Trading Director. Riley has over 30 years’ experience in the convenience and independent retail industries. The management team had already been strengthened with the addition of Osmond Ramsay who joined the business as Finance Director in August 2018 from the Co-op Food and, according to Sarwar, “has already played an instrumental role in professionalising the business”. Sarwar also confirmed that later this year the Queenslie depot will be relaunched as a ‘Store of the Future’ that will deliver “a step change aimed at raising the bar with regard to customers’ experience and interactions”. The shake-up follows another very positive year for UWS with turnover increasing by 4.5% to £233m and underlying operating profits up £0.3m to £1.8m. Overall profit before tax increased by £1.1m to £2.6m, although this included the disposal of the Terston House property. Commenting on the results, Sarwar said: “The wholesale market was already a crowded and challenging sector but Tesco’s £4bn takeover of Booker and the Coop’s acquisition

www.slrmag.co.uk

SLR July 2019.indd 51

of Nisa Retail were designed to give both of the retailers a significant presence in the wholesale sector to drive buying terms and extend their reach into a very competitive convenience sector. Against this backdrop, we have continued to focus on our customers and our customers’ customers to deliver improved range and service which has led to increased sales and profits.” Despite the massive flux currently going in the industry, Sarwar remains convinced that “exciting times” lie ahead for both UWS and the wider industry. “The recent period of consolidation and change, fierce competition from the discounters, shopping habits continuing to change and the on-line shopping revolution have prompted both wholesalers and retailers to look to bolster their core businesses,” he says. “With an ever-changing landscape and the increased pace of change, we must look at the bigger picture to ensure we remain the preferred wholesaler for our customers, our supplier partners and ultimately the end consumer. “It is only by working very closely with our customers and supplier partners can we continue to innovate and ensure that we remain competitive whilst delivering an industry-leading brand. We are the best at what we do and that can only be achieved by maintaining high levels of customer service at the right price, with the right range.” Sarwar’s new role will see him use his wealth of experience and knowledge to continue to oversee the running of the business and support the refreshed management team while also putting in place “the changes required to drive an improved offer, increased range and create a smoother operation that is fit for the future”. The man charged with delivering that future on a daily basis will be ex-Booker and Scotfresh executive Chris Gallacher who joined UWS in January 2018 as Group Director. Sarwar commented: “It is important that as we continue to take this remarkable business forward and we need to have the right management team and structure in place to

do that. In Chris, we have the ideal candidate to take over the day-to-day running of the wholesale business. Chris has an impressive track record across both Wholesale and Retail operations. His man-management skills and ability to foster lasting and collaborative relationships with suppliers, customers and colleagues will ensure that we continue to focus on serving our customers. Wholesaling is in my blood and I will continue to guide and advise the team but taking on the role as Executive Chairman will allow me to look at the bigger picture and set out my plans for achieving these aims, in what is a very fastpaced industry.” Gallacher took the opportunity to thank Sarwar for his vision, great leadership and guidance over the last 16 years, the last 12 of which saw him steer the company through the majority of its growth phases as Managing Director. “We would not be where we are today without him at the helm,” says Gallacher. “Asim has been instrumental in driving our symbol group Day Today to the level that it is today. His knowledge, commercial acumen and dedication have seen Asim become one of the most widely respected and well know figures in this industry, helped in no small part by his honesty, integrity and incredible dedication. We will continue to drive the business forward with these values at our core, and I am honoured to receive his vote of confidence and support in taking over the role as Managing Director.” The moves, believes Sarwar, will allow UWS to build a strong, profitable future. He concluded: “These changes are vital to our future. In the Day-Today and Usave offerings, we probably have the most relevant offerings in Scotland. However, if we are to remain at the head of an ever-growing pack, the business has to continue to evolve. In order to do this, we need to tackle all challenges head on to continue to drive forward. With the pace of change as quick as it has ever been, it felt like the right time to create a stronger and more sustainable management structure to reflect that, whilst releasing my time to look further down the line at our future opportunities and challenges.” JULY 2019 | SLR

16/07/2019 16:39:21

Inside Business

#ThinkSmart3 | MyStore+

THE LOWDOWN: MYSTORE+

The new MyStore+ ‘virtual sales rep’ app from News UK and McCurrach aims to deliver real benefits for retailers, customers and brands by bringing them all closer together. SLR sets out to find out how it works in practice.

The app allows retailers to earn cash rewards for following best practice advice.

SLR | JULY 2019

SLR July 2019.indd 52

oldly described by its creators as “the biggest tech innovation in convenience retail”, the new MyStore+ app from Glasgow-based field marketing and sales solutions agency McCurrach and The Sun and The Times publishers News UK is an ambitious attempt to help retailers make more money by bringing them closer than ever to their customers and to major suppliers. At its core, the app enables retailers to access category and brand advice, offers and financial rewards. Perhaps the easiest way to think of it is as a sort of virtual field sales rep, bringing all the benefits of a traditional sales rep but with a host of additional perks too. The app brings brands and retailers together to deliver increased sales through tailored best practice advice, insights and support while also financially rewarding retailers who follow the advice in-store. “MyStore+ makes it simple for retailers to grow their business through access to advice, offers, rewards and insights from leading brands across multiple categories,” explains McCurrach Strategy and Marketing Director Gordon Neil. “No longer do retailers need to go to multiple sources to grow their business; MyStore+ puts it all in one free to access app.” Some of the key benefits to retailers include: Q Category and brand advice that will help retailers grow their business by helping them stock the right products and planogram their space to maximise sales.

Q Access to exclusive offers and rewards from brands for following advice, meaning they earn rewards whilst growing their business. Q Tailored advice and offers for retailers’ stores when they share insight with brands via the MyStore+ app. Q MyStore+ also provides retailers with the ability to communicate directly with brands through a chat function within the app, making the connection personal. The app also allows brands to deepen and strengthen their relationship with local retailers by allowing them to provide retailers with new content, offers and rewards to access all the time. “MyStore+ has been developed to make it simple and cost effective for brands to provide retailers with the advice, offers and rewards that drive execution and sales instore,” says Neil. “This makes connecting with convenience retailers accessible for all brands.” News UK will also bring the power of its React retail activation proposition to retailers via the app, giving more benefit to retailers and helping them grow footfall, sales and profits. React is an exclusive way for News UK commercial partners to bring their campaigns to life in-store. It helps clients sample products to customers and retailers, increase distribution and drive incremental sales. It achieves this without incurring additional costs – and brings new commercial benefit to retailers into the bargain. www.slrmag.co.uk

16/07/2019 16:39:21

MyStore+ | #ThinkSmart3

Inside Business

Gain access to helpful information.

Engage directly with major brands.

Earn cash instantly.

Help develop key categories â&#x20AC;&#x201C; and get paid!

Collect and redeem loyalty points.

Access planograms and current market data.

WANT TO GET INVOLVED? SLR is working with News UK and McCurrach to build a panel of Scottish local retailers who would like to start using MyStore+ to begin developing their businesses and earning offers and rewards for achieving high standards in-store.

www.slrmag.co.uk

SLR July 2019.indd 53

If you would like to be considered for this groundbreaking and innovative panel, then simply get in touch with SLR Publishing Director Antony Begley on 0141 222 5380 or via email at abegley@55north.com.

JULY 2019 | SLR

16/07/2019 16:39:22

Inside Business

SGF Vaping Event

LOST IN THE CLOUDS

Last month’s vaping event organised by the SGF confirmed that a lot of work still needs to be done by both manufacturers and retailers alike before the convenience channel can lay claim to its fair share of this £1bn category. BY FINDLAY STEIN

Key speakers discuss how the sector can grow its share of the vaping market.

f one thing was made clear at the recent Scottish Grocers’ Federation (SGF) vaping event, it was that a large cloud of confusion still hangs over the category as far as many of Scotland’s local retailers are concerned. The event, held at Glasgow’s Marriott Hotel, was chaired by SGF Chief Executive Pete Cheema and heard at length from several industry experts on the growing importance to convenience retailers of the vaping category and of its role in getting smokers to quit. Before that though, Elaine Mitchell, from the Scottish Government’s Tobacco Control Team, put a dampener on proceedings by announcing that the Scottish Government does not promote vaping, due to the potential long-term impact on public health and concerns over young people and non-vapers starting. 54

SLR | JULY 2019

SLR July 2019.indd 54

Even worse, she then announced proposals to further restrict advertising and promotion of e-cigs, with a consultation rolling out in August. Mitchell did acknowledge the potential role of vaping in smoking cessation, and said it was important to remember that retailers provide a primary route raising awareness among smokers. However, she warned that the government was “really concerned” over dual use i.e. vapers who continue to smoke.

“The industry has been hamstrung over what can be said about vaping, to the detriment to the health of the population.” – MATTHEW MODEN, LIBERTY FLIGHTS

QUESTION TIME A lively Question Time-style panel discussion on Making The Most Of Vaping followed, deftly chaired by the SGF’s Head of Policy and Public Affairs John Lee. He was joined by Tom Hirons, Head of Government Relations at JTI/ Logic; Matthew Moden, MD of Liberty Flights; Will Hill, Head of Legal and External Affairs at British American Tobacco UK and Ireland; Lindsay Mennell Keating, UK Government Affairs Manager at blu; and Colum Deignan, Field Sales Manager for Eco-Vape. In a short opening statement, Hirons said vaping was now in its third iteration, having transitioned from cigalikes to open tanks to pod-based systems. Pod devices, he said, deliver higher performance from a very convenient product, stating that the pod market presented a huge opportunity to catch the fastest-growing part of the vaping sector. www.slrmag.co.uk

16/07/2019 16:39:22

SLR July 2019.indd 55

16/07/2019 16:39:24

Inside Business

SGF Vaping Event

Moden acknowledged that vaping wasn’t risk-free but implored the powers-that-be to look at the opportunity it provided from a health perspective. He contradicted Mitchell, saying dual use should in fact be encouraged, as it is a way for smokers to “step down” their tobacco consumption. Regarding advertising, Moden thinks the industry has been “hamstrung” over what can be said about vaping, “to the detriment to the health of the population”. With manufacturers barred from comparing the health risks of vaping against those of combustible tobacco, he said that retailers, “armed with a little bit of knowledge” could help smokers make an informed decision, help them to switch, and make some money at the same time. Hill contrasted the approach of the national government with Scotland’s, saying Westminster was a “bit more welcoming to the category” than Holyrood, but that smoking cessation services were scared to work with vaping brands for fear of reputational damage. Mennell Keating pondered how to strike a balance between educating the large number of tobacco users who think vaping is just as harmful as smoking and preventing take-up in under-18s. Deignan focused on the role training and education had to play. He suggested staff should ask cigarette buyers if they’d tried vaping, highlighting next year’s (20 May) ban on menthol cigarettes and flavoured tobacco as a particular opportunity for conversion.

REALITY CHECK All well and good, but it was when Lee opened proceedings to the audience that the gulf between manufacturers and retailers soon became apparent. “I don’t know how to sell this product” said Shahid Ali, calling for manufacturers to get together and create a credible range to compete with online and specialist vape stores instead of all “fighting for the same space”. He was also at odds with Hirons’ notion that the market was progressing towards pods, suggesting that customers started off using them before “evolving” to open tank systems and getting lost to specialist stores because the major manufacturers “don’t do open tank”. The panel took Shahid’s point, with Moden stating that “the notion of not being able to provide a category solution to retailers who are saying ‘please help me out’ is ridiculous”. Eric McGill, from independent vape store Buzz, suggested the reason pods didn’t sell well in the grocery channel was because people look at the level of liquid in two pods (a total of anything from 1.4ml to 4ml usually) costing around £5 to £6 and then “go into the likes of B&M and buy an 88vape 10ml liquid for a pound”. This prompted a ripple of agreement from the audience. 56

SLR | JULY 2019

SLR July 2019.indd 56

In the defence of pods, Deignan pointed out that users get a fresh coil with each one, reducing outlay in the long run.

‘DIFFERENT LANGUAGE’ Talk about coils and the technology underlying vaping prompted retailer Graham Watson to say manufacturers might as well be talking a different language. “You have to make it understandable for retailers, so they can make it understandable for customers.” Hiron agreed with Graham, saying that staff education is an investment, while Hill said reps “had to translate the mumbo-jumbo”. Deignan stressed the importance of training the whole team so there weren’t inconsistencies in knowledge levels. Moden said retailers don’t need to go “chapter and verse” – you just need to know what to sell and how to sell it, while Mennell Keating urged the audience to “tell us what you need”. The panel was also asked the best way to promote the vaping category. Hill advised retailers to be careful with online marketing. He said you can use social media, if you make factual statements but not promotional ones. He threw the uncertainty around the issue into sharp focus by posing the question, is “we sell e-cigarettes” factual or promotional? He said retailers had a lot more latitude at the point of sale to “articulate the benefits of the products”. After the dust from the debate settled, the manufacturers each talked for 10 minutes (enforced by Lee with the threat of electrocution), understandably using the bulk of this time to promote the merits of their own products. There were several useful nuggets that shone through the sales pitches though. Blu’s Darren Atwell advised retailers to ensure consistent availability and to find out what local trends are. An impactful gantry will let consumers know you have a good range, he said. Eco-Vape’s Deignan highlighted the importance of convenience stores, because they’re convenient and less intimidating than vape shops, while Liberty Flights’ boss Moden returned to deliver his seven rules of vaping. These are: take knowledge seriously; walk before you run; take a category approach and merchandise efficiently; drive footfall by offering shopper value; avoid the race to the bottom; pick pod systems wisely; and stick to the plan, giving it three months to see results. Archie MacLellan from JTI urged retailers to challenge suppliers if stock wasn’t selling through, a concern that had been raised more than once throughout the day. The event also included an exhibition, where retailers could find out about the latest products on the market and hopefully get more questions answered. www.slrmag.co.uk

16/07/2019 16:39:30

O T D E T T I M M O C

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

COMMITTED TO GREAT PRICING, AVAILABILITY & DELIVERY “I made the decision to join Nisa in 2011 and it remains one of the best things I have done. When we took over our store, nobody had a Nisa store in my area – I think we were one of the first Nisa store in the whole of Perthshire and it’s still going really well. We’re delighted when passing customers come in and compliment our store, saying that they’ve never been in a village store that was so well stocked, which always gives a great sense of pride and satisfaction. We have a huge demand for fresh food and we want to have more Co-op lines in our store, as they have a lot of fresh produce available and it sells really well so that’s another great advantage of being with Nisa.

Sales are up year on year since we joined Nisa Zubair Aslam, Nisa Local in Dunning, Perthshire.

I definitely recommend Nisa – it was the best move I made.”

Join the family... visit: www.join-nisa.co.uk SLR July 2019.indd 57 14647_NISA_Zubair Aslam_Recruitment Ad_A4_AW02.indd 1

16/07/2019 16:39:31 24/05/2019 14:29

Hotlines

Product News & Media Watch

Maryland Chocolate Cookie Bars Burton’s Biscuit Company Burton’s has entered the chocolate biscuit bar market under its Maryland brand for the first time with the launch of single portion Maryland Chocolate Cookie Bars. Packs of 8 x 19g individually wrapped bars have an RSP of £1.39 and are available from mid-July in outers of 32. Each bar contains only 97 calories. For further information call Burton’s Biscuits on 0330 6600 196 or visit burtonsbiscuits.com.

Cadbury Joyfills Mondelez Cadbury Joyfills has extended its portfolio with the launch of two smaller 75g packs, available in Oreo Vanilla Creme and Cadbury Milk Chocolate Creme variants, both in cases of eight with an RSP of £1. To make the most of the launch, Mondelez advises retailers to position Joyfills in secondary sites for on-the-go purchases, or on cross-category displays for evening and impulse treat opportunities, as well as at the main biscuit fixture.

Fruity & Filling Oat Bars Paterson Arran These new Oat Bars are available now in shelf-ready cases of 24 x 40g individually wrapped bars with an RSP of £1. They are vegan friendly, palm oil free and contain only 170 calories per bar. Handmade in Scotland with real fruit pieces, the oat bars are available in two varieties: Raspberry & Apple and Blueberry & Cranberry. For more information, retailers should email amessagetoyou@paterson-arran. com.

SLR | JULY 2019

SLR July 2019.indd 58

Coke and Costa launch cold coffee in a can The Coca-Cola Company and Costa Coffee have unveiled Costa Coffee Ready-to-Drink, a new chilled, canned coffee brewed with Costa Coffee beans. Costa Coffee RTD will launch with three of Costa’s most popular variants – Classic Latte, Caramel Latte and Black Americano – all of which feature the same Mocha Italia Signature Blend coffee beans used in all Costa brews. Each contains between 15 to 108 calories per 250ml can and gives the same caffeine hit as a double shot of espresso. As with all Costa Coffee, the beans are Rainforest Alliance Certified. The range is available now in cases of 12 x 250ml 100% recyclable cans. RSP will be aligned with similar products on the market. The launch will be supported by a marketing campaign including out-of-home, digital, PR and sampling activity. Coke hasn’t hung about in leveraging its £3.9bn takeover of the coffee chain; the acquisition was only announced in August last year. “Our teams at Coca-Cola and Costa Coffee have been working around-the-clock to make our shared vision of Costa Coffee ready-to-drink coffee a reality,” said Jennifer Mann, Senior Vice President and President of Global Ventures for Coca-Cola. “The result is a fantastic tasting, ready-to-drink coffee.” Dominic Paul, CEO of Costa Coffee, added: “We’re really proud to have brought this product to market at such speed whilst still ensuring the range has proper coffee at its heart.” For more information, retailers should call 0808 1 000 000 or email connect@ccep. com.

Tablet Popcorn Mrs Tilly’s “The world’s first Scottish tabletcoated popcorn” is available to Spar (Scotland) retailers from this month in shelf-ready cases of 10 x 170g packs with an RSP of £1.50. Further listings anticipated in August. Tablet Popcorn is a combination of crunchy air-popped corn coated in a “deliciously indulgent” sauce with Mrs Tilly’s Tablet blended through it. For further information, please call 01324 562699.

Mentos Complimentos Perfetti van Melle This latest Mentos limited-edition is available across Fruit, Mint and Rainbow packs for three months from July until September. Every roll features a light-hearted compliment like”You are the one I chews”. The new packs are supported by a new cinema advert, out-of-home media, experiential pop-ups and sampling activity. POS material is available. For further information call 01753 442100 or visit perfettivanmelle.com.

Chocolate Filled Croissant Aryzta Food Solutions The croissant is one of a trio of new ‘treat’ products from Aryzta, that are ideal for eating on-the-go or take-home. It is available in cases of 36 x 90g units with an RSP of £1.35. Launched at the same time are an Almond Filled Croissant (RSP £1.35, 90g, case size 36) and Caramel Heaven (RSP £2.60, 81g, case size 12). For further information, retailers should telephone 0845 437 9593, email retail.ordersGB@aryzta.com or visit aryztafoodsolutions.co.uk.

www.slrmag.co.uk

16/07/2019 16:39:32

Product News & Media Watch Cadbury Hot Chocolate 30% Less Sugar Mondelez

KA Reload Barr Soft Drinks

Cadbury Hot Chocolate has launched its first-ever reduced sugar variant. Available now in cases of 6 x 280g jars (RSP £2.49) and with no artificial sweeteners, the new product is backed by out-ofhome and digital marketing activity. To find out more, call Mondelez on 0870 600 0699, email retailer. services@mdlz. com or visit deliciousdisplay. co.uk.

Maynards Bassetts Wine Gums 30% Less Sugar Mondelez

KA is bringing the taste of the Caribbean to the energy category with KA Reload, a new glucosebased energy drink that comes in Black Cherry and Mango flavours. Both are available in outers of 12 x 500ml PET bottles, price-marked at 99p. The launch is backed by a digital campaign across Instagram, Snapchat and Spotify, targeting KA’s core drinkers.

St Clement’s Barr Soft Drinks

Made with natural colours, Maynards Bassetts’ new less-sugar product is available from this month in cases of 12 x 130g packs with an RSP of £1.32. Point of sale materials are available to help drive sales. For further enquiries, retailers can telephone Mondelez on 0870 600 0699, email retailer.services@mdlz. com or visit deliciousdisplay.co.uk.

St Clement’s is a new range of adult soft drinks made using a blend of bittersweet British apples, fruit juices and sparkling water. It is available in two flavours – Apple & Pear and Raspberry & Blackberry – and comes packaged in shelf-ready trays of 8 x 500ml glass bottles (RSP £1.59). For trade enquiries, retailers should telephone 01204 664 295.

MEDIAwatch

Hotlines



Tanya do the voice of a strawberry? Quirky actress Tanya Reynolds is fronting a new multi-million-pound integrated campaign to celebrate the expansion of Diet Coke’s flavour range. A host of clips show Reynolds trying to bring the new flavours to life. One of these features her attempt at mimicking the ‘voice’ of a strawberry. The campaign spans TV, radio and out-of-home advertising.

There’s no escaping Vimto Vimto has invested £3.5m in an ‘always on’ marketing campaign to ensure the brand is visible to its teen audience for the rest of the year through radio, events, TV, videoon-demand, cinema and social activity. An evolution of 2018’s ‘I See Vimto in You’ campaign, the new push also includes in-store POS.

TV first for Purdey’s Purdey’s has claimed to be the first natural energy brand to appear on TV, with a new CGI produced advert. The ad is part of a £3m campaign which also includes video-ondemand, social media, sampling and digital support. It falls under a new ‘Energy as Nature Intended’ brand platform, positioning Purdey’s as a more natural energy drink option.

Lucozade couples with Love Island Giant Strawbs Gone Mini Haribo

New Technology Juulpods Juul Labs

For this latest addition to its vegetarian range, Haribo has shrunk its extremely chewy Giant Strawbs into new bite-sized pieces and packed them in portion-controlled 16g mini bags with an RSP of 16p. Haribo has also revamped the colours and flavours for its Jelly Beans and Funny Mix, also part of the vegetarian range. For stock enquiries, call Haribo on 01977 600266, email salesuk@haribo. com or visit haribo.com.

Juul has updated its pods with a cotton wick replacing the original silica one to give “a more satisfying vapour experience”. A new 9mg/ ml strength is available in Golden Tobacco, Glacier Mint and Mango Nectar flavours. The usual 18mg/ ml strength is available in these and Royal Creme, Apple Orchard and Alpine Berry. For more information retailers should visit juul.co.uk.

Lucozade Zero has climbed into bed with ITV2’s hit series Love Island as its official soft drinks partner. A £4m multimedia campaign promotes the pairing. The cross-channel activity includes a return to TV for the brand with a tongue-in-cheek advert, supported by bespoke social, digital, in-store and outdoor activity.

Batchelors back after break Premier Foods has brought its Batchelors brand back to the UK’s screens after a five-year hiatus, as part of a multi-channel campaign to promote its Super Noodles range. The TV advert runs until the end of July and champions the Super Noodles Pots range, which launched in 2017. The ad is supported by in-store activity.

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

SLR July 2019.indd 59

JULY 2019 | SLR

16/07/2019 16:39:33

Feature

Forecourts

GULF PUTS SOME OOMPH INTO SCOTLAND’S FORECOURTS The Oomph app is a potential game-changer.

Certas Energy is investing in the Gulf brand with a refreshed programme of investment and innovation to drive increased revenues and profits for retailers.

Gulf’s fresh new look is a winner with dealers and shoppers alike.

SLR | JULY 2019

SLR July 2019.indd 60

www.slrmag.co.uk

16/07/2019 16:39:34

Forecourts

n the fast-changing world that is forecourt retailing, Larbert-based Certas Energy has announced plans to continue investing to future-proof the Gulf brand and drive improved revenues to the forecourts of its Scottish network. Recent demonstrations of that long-term commitment include an eye-catching new forecourt image, an industry-first forecourt loyalty platform and an exclusive arrangement with software technology leader, Orbis Tech. All are major investments that signal Gulf Retail’s commitment to “become the supplier of choice for Scotland’s independently owned forecourts”.

MAKING WAVES Investment in a fresh new modern image was hailed as another step forward by the company as Gulf looks to improve every aspect of the its dealer package. Before embarking upon this project, the company undertook extensive research among consumers and dealers. The clean ‘curvy’ style was deemed to best maintain the strongest elements of the Gulf brand and has been positively welcomed and looks set to widen its appeal among motorists and shoppers. “We wanted to create a modern, fresh and eye-catching look that could work across a wide variety of forecourt shapes, sizes and layouts,” explains Gerry Welsh, Retail Marketing Manager, Certas Energy. “It also required a practical approach in terms of costs, installation and maintenance. Special considerations were made to ensure that the design system would be flexible enough to fit on any forecourt as almost every forecourt has a unique footprint. A modular construction www.slrmag.co.uk

SLR July 2019.indd 61

approach ensures production costs are kept to a minimum whilst making sure the integrity of the design is always maintained.”

TECHNICAL EXCLUSIVE A second major strand of Certas Energy’s recent work has been the signing of an exclusive agreement with Orbis Tech, the EPoS site system software technology leader. The deal extends across the Certas Energy COCO estate and Gulf-branded dealers will enjoy at least a 15% saving on software upgrades, POS, back-office and head-office systems, with the Orbis Tech set-up costs already absorbed by Gulf Retail. The shift to Orbis Tech was a strategic business move that allowed Gulf Retail to establish a single head-office, back-office and point-of-sale platform across its entire estate. The advantage of Orbis over many ‘legacy’ systems is that as well as being fully integrated, it is a cloud-based system which improves security, provides information in real time rather than at the end of a shift, and allows access at anytime from anywhere, believes Welsh. “Providing our Gulf Dealers with the tools to improve revenues and profitability is fundamental to the Gulf philosophy,” he comments. “Orbis Tech has created its reputation in the retail and hospitality sectors and is now making significant in-roads into petrol retailing. Its product and service solutions will further empower Gulf retailers in their day to day business operations and allow them, on site or remotely, to fully exploit consumer demand for convenience-led cross promotions with fuel, coffee, food-to-go, groceries and any other retail offerings.”

Feature

ADDING SOME OOMPH The third major initiative sees Gulf Retail roll out its Oomph loyalty platform using the latest technologies to drive new revenues to Gulf dealers. The solution enables dealers to strengthen customer retention across the network. Working in partnership with Azpiral, the market leader in customer engagement solutions for the forecourt and convenience sector, this major new initiative allows Gulf dealers to talk to their customers and tailor offers to specific groups via SMS, email and a dedicated phone app. Its versatility extends to the point of purchase, where customers are rewarded with points for utilising the app and smart card. Accumulated points are redeemable to support local charities and gain entry to a ‘big ticket’ monthly draw. Dealers can further reward their customers with bespoke offers such as in store-discounts, free coffees and car washes. “Oomph results from requests by forecourt businesses, large and small, who see great merit in providing their customers with a nationwide loyalty platform with local marketing capabilities,” adds Welsh. “By integrating their EPoS with the Gulf platform, dealers can also understand more fully the buying behaviour of their customers. “We are in discussions with several global brands to further develop the ‘Monthly Prize Haul’ and shall use our COCO estate across Scotland as a test bed for new ideas. We plan to make Oomph the most engaging loyalty platform in the industry for consumers and the most cost-effective for dealers and can see no bounds to its future potential.” JULY 2019 | SLR

16/07/2019 16:39:34

A Brand New Gulf

SLR July 2019.indd 62

16/07/2019 16:39:35

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 to ďŹ nd out more!

Join the brand of champions Call 0345 456 6300 Visit gulfoil.co.uk/retail

SLR July 2019.indd 63

16/07/2019 16:39:35

Feature

Forecourts

FULL STEAM AHEAD FOR JET IN SCOTLAND JET’s striking prototype and, above, new Retail Business Manager Oliver Muller.

ollowing the launch earlier this year of a new image prototype and the subsequent hiring of a new Retail Business Manager, JET is fully geared-up and focusing heavily on the Scottish independently-owned sector. There are around 50 Jet-branded sites currently in Scotland. The new-look branding at JET Abbeyside in Selby, North Yorkshire, a company-owned site, was developed in response to dealer and consumer feedback and incorporates an array of improvements, including an angled canopy with additional LED lighting, clearer signage, branded premium fuels and an innovative pole sign with clear pricing of all products. Overall the new image creates a welcoming environment and offers a refreshed contemporary look that is still distinctively JET, says the company. The prototype is still being piloted at company-owned sites before a further trial at a number of JET’s independently-owned sites is undertaken. Mary Wolf, Managing Director UK Marketing at Phillips 66, comments: “We are proud of JET’s UK heritage, and we are dedicated to remaining a strong, reliable brand that is competitive in the market. 64

SLR | JULY 2019

SLR July 2019.indd 64

We’ve listened to the consumer, and to our dealers and have developed a new image that is modern and inviting, and provides a safe, friendly, clean environment for consumers. “By strengthening our brand and reimaging our forecourts we will support our dealers to better compete in today’s challenging fuel market.” JET’s focus on growing the brand was subsequently bolstered with the appointment of Oliver Müller as Retail Business Manager to drive further growth in the company’s UK dealer network. Müller joined from JET’s Hamburg office in Germany and took over from Sönke Voges. Having joined the business in 2002, he has an extensive retail background including time working in the Phillips 66 head office in the United States. Wolf comments: “Oliver brings a wealth of retail experience and knowledge to the role along with huge passion for the JET brand, making him ideally placed to execute our exciting plans for the JET brand and to grow and strengthen our dealer network. We are very pleased to have Oliver in his new role.” www.slrmag.co.uk

16/07/2019 16:39:36

We like people Thatâ&#x20AC;&#x2122;s why we only have real people on the end of the line, not machines. When you need help, youâ&#x20AC;&#x2122;ll always have someone to chat to who cares about your business. Better with

betterwithjet@p66.com | 0344 561 8842

SLR July 2019.indd 65

16/07/2019 16:39:36

Feature

Forecourts | Forecourt Retailer of the Year

PRESTWICK LONDIS NAMED FORECOURT RETAILER OF THE YEAR Following a massive-scale refit of his 117-year-old business, Walter Bryson’s Londis forecourt in Prestwick has been named Forecourt Retailer of the Year at this year’s SLR Rewards, sponsored by Lucozade Ribena Suntory.

ounded in 1902 by a gentleman by the name of David Bryson, the Brysons forecourt and car centre in Prestwick is one of the oldest forecourt businesses in Scotland. The third-generation enterprise is now managed by David’s grandsons Walter and Peter and is undoubtedly stronger as a business than it ever has been. The secret to that success over 117 years boils down to one key thing: a desire and appetite to continually redevelop the business to keep it relevant and vital for the many customers who use it every day of every week of every year. The latest example of this is last year’s huge refit that basically rendered the new store unrecognisable from the one it replaced. Remarkably, the one it replaced wasn’t too shabby in the first place but Walter’s passion for staying ahead of the curve and not just keeping up with it meant that a full-scale refit was the preferred option. And this isn’t the first time that Walter has had the courage to effectively rip everything up and start again. Walter explains: “We have a lot of competition in this part of the 66

SLR | JULY 2019

SLR July 2019.indd 66

world and we could see that the world was changing, and shopper demands were evolving fast. We knew we had to keep ahead of that evolution and while it would have been cheaper and easier to tinker with the store and update a few areas, we felt that to really deliver a future-proofed store that would be relevant for the next five or 10 years, we had to make some significant improvements.” Another secret of the 24-hour store’s sustained success has been a willingness to spend big when it’s required. Cutting corners is not Walter’s style, as the refit makes clear. But while the refit would dramatically enhance the look and feel of the spacious forecourt, the principal aim was to shift the key focus of the store onto food-to-go. “We’d been doing food-to-go for a couple of years and it had been growing. We’d been adding new lines and solutions as we went but the refit let us start again almost from scratch and build the sort of store we would want to shop in,” says Walter. The result was that around half of the store was given over to the burgeoning food-to-go offer. A full serve-over counter was added

along with additional chilled food-to-go space. The chosen provider was Stone Willy’s, which offered Walter a full hot and cold food-to-go solution. This includes hot and cold filled rolls, baguettes, pasta pots and hot pizza wraps. A Covent Garden self-service soup dispenser was added, as were slush and Tango Ice Blast machines. The Costa coffee offer was also upweighted with the addition of a second machine. The refit also added a huge plate glass window that allows fuel customers and passers-by to clearly see the new food-to-go counter. This has helped drive footfall and impulse sales. The local schoolchildren have also taken to the new offer with a passion. Visit any weekday lunchtime and you’ll see a queue out the door. Critically, the full food-to-go section of the store was fitted out to the highest standards which Walter felt was vital in giving customers the confidence to buy from it. “Food to go is reliant on customer confidence,” he explains. “If the unit is messy, untidy or half-empty then customers are

less happy to buy from it – so we’ve set standards very high and we’re totally focused on keeping them that way.” As for the rest of the store, much of the grocery range has been removed along with a huge cull of slower-selling lines. This drastic measure made Walter nervous at the time, but his courage has been rewarded; foodto-go sales are up 31% and the store’s overall margins have increased significantly too. But it wasn’t all about the store; the forecourt drives 69% of sales and was given a new lease of life with a full refit, entirely in line with the slick new look of the store. Tom Gaw, National Account Controller for the SLR Rewards category sponsor Lucozade Ribena Suntory, comments: “The standard of entries in this category was incredibly high, but Walter and his team blew us away when we visited their Prestwick store. They really are the gold standard of forecourt retailing and very worthy winners. Congratulations from all of us at Lucozade Ribena Suntory!” www.slrmag.co.uk

16/07/2019 16:39:39

SLR July 2019.indd 67

16/07/2019 16:39:39

Feature

Cider

MERRYDOWN INCREASES FOCUS ON SCOTLAND Award-winning cider brand Merrydown is upweighting its focus on the Scottish market following huge growth in convenience in both volume and value north of the border in the last 12 months – and did you know that Merrydown is actually made in Scotland?

T 61%

value increase in last year

SLR | JULY 2019

SLR July 2019.indd 68

here can’t be many long-established brands that can claim to have delivered sales increases of 61% in the last 12 months in Scotland, but multi-award-winning cider Merrydown is one of them. According to Nielsen Scantrack data to May 2019, the brand has delivered remarkable growth of 50% by volume and 61% by value in the last year in the Scottish impulse channel. That stellar growth has led brand owner SHS Drinks to upweight its focus on the Scottish market to ensure that Merrydown continues to maximise its potential up here. A true heritage cider brand, Merrydown’s growth is all the more remarkable given that it has occurred against a backdrop of falling sales in the overall glass bottled cider category in impulse. Indeed, according to the same Nielsen stats, the category has fallen by 12% in volume and 9% in value in Scotland over the same period. Chris Lewis, Head of Alcohol Brand Marketing at SHS Drinks, is understandably delighted with the brand’s performance in Scottish convenience stores. He comments: “While Merrydown has been performing strongly all across Britain, to be growing volume in Scotland at three times the brand’s overall growth rate of 17% [Nielsen Scantrack, May 2019] is quite something.” The success follows the reintroduction last year of the Merrydown Dry variant to complement the Merrydown Original SKU.

“Merrydown Original, our lead momentum, SHS is backing variant, is the No.1 glass bottled its locally made product this apple cider SKU in impulse in summer with Scotland-specific Scotland,” says Lewis, citing the sales-driving initiatives to same data source. “In addition support independent retailers. to leading the apple category, “In addition to outlet-level it is also the fastest-growing activity, consumer support for SKU of any flavour variant in the brand continues to celebrate the top 101 – so it’s not only the ‘Merrydown Moment’ at leading the pack, it’s growing the end of the day when ciderfaster than the competition. lovers want to sit down, relax, Merrydown Original also has unwind and enjoy a glass of the highest value rate of sale cider refreshment that hits the of the top 25 glass bottled cider spot, and employs the strapline SKUs, demonstrating that it ‘Love your Merrydown time’,” generates strong cash returns explains Lewis. for stockists.” He advises that retailers As well as delivering should stock up this summer outstanding sales growth in to cash in. “Merrydown’s 750ml Scotland, the product also resealable sharing format gives picked up a silver medal at the the brand a point of difference International Cider Challenge over most other bottled ciders 2019 last month, something which are primarily sold in Lewis says is “testimony to our 500ml crown-cap bottles,” he continued focus in producing a concludes. “With both the pear great-tasting cider”. cider and the flavoured cider Scotland accounts for some segments in volume and value 21% of the brand’s volume decline, bottled apple should in impulse, meaning that the be the focus area for impulse brand massively outperforms in retailers looking to build this country. It may also surprise summer sales. Apple is some retailers to learn that very much on the up: Merrydown is now produced in it’s growing its share of Scotland. Lewis again: “We are total bottled cider sales proud to state that Merrydown and it’s selling more is now produced in Scotland. and more units in stores Merrydown Original and where it is currently Merrydown Dry are made with stocked.” the same perfect blend that has been delighting cider-lovers for decades. Retailers in Scotland can now stock Merrydown in the knowledge that they are supporting a locally produced cider.” volume increase in To build on the last year brand’s current strong

50%

www.slrmag.co.uk

16/07/2019 16:39:40

SLR July 2019.indd 69

16/07/2019 16:39:45

Feature

Breakfast

BREAKFAST 101 GUIDE Getting your breakfast offer right in-store can seem like a complicated process with fast-evolving consumer demands. However, getting back to basics by building a strong core range is a quick and easy way to ensure that you get your share of sales. Here’s how....

he traditional breakfast fixture is one of those areas of the store that doesn’t often get a lot of attention from retailers. Recent interest in the category has centred around the breakfast-on-the-go opportunity – yet core cereals remains a vitally important element of most stores’ offer. It’s easy to get caught up in the latest NPD and the increasing focus on healthier products but the fact remains that when it comes to cereals, the key brands are relatively easy to identify – they’ve been big sellers for a long time and customers put their trust them. To put that another way, if you get the basic core range sorted you’re well on your way to a profitable fixture that will deliver footfall and sales. According to breakfast experts Kellogg’s: “The success of any cereal product you sell is ultimately decided by whether your customers need it or not. Every customer has a different need so your range should cater for their needs. This means a successful range should offer variety so customers can find the product they want and in turn make you a healthy profit.” Clearly, a successful fixture should look visually appealing but should also be convenient for your customers. To make sure shoppers can find what they’re looking for, it’s always a good idea to site the biggest brands at eye level, making them easy to find and recognise. To achieve an easy-to-navigate fixture create ‘segment blocks’ where similar types of cereal are grouped together. An example of a strong planogram is featured on the right, but this should be tailored to more accurately meet the needs of your specific customer base using your own EPoS data. Use it as a starting point, however, and you won’t be far away from an efficient fixture with a high rate of sale for every product listed.

to drive sales by offering convenient formats which cater to consumers’ busy lives.” To capitalise on this opportunity, Nash recommends retailers stock up on belVita Breakfast which is available in convenient single packs in several variants: belVita Strawberry Duo Crunch, belVita Honey & Nut, belVita Crunchy Hazelnut and Soft Bakes Choc Chip. “With one of the highest repeat rates in the entire biscuits category at 60% [Kantar, Aug 2018]], belVita has continued to lead the healthy biscuits and breakfast biscuits segment through continued investment in new products and large-scale marketing campaigns,” she says. This includes the company’s latest innovation, belVita Seeds and Berries, which comes in two flavours: Raspberry & Chia Seeds, and Blueberry & Flax Seeds. These are available in six-pack boxes with three biscuits per pack. The brand has also recently launched its first-ever reduced sugar variant belVita Chocolate Chip with 30% less sugar.

CEREAL THRILLERS The list of some of the best-selling cereals in the UK will be familiar to all – but do you have every line on your fixture? Q Bran Flakes Q Coco Pops Q Corn Flakes Q Crunchy Nut Q Crunchy Nut Granola Chocolate & Hazelnut Q Frosties Q Fruit ‘n Fibre Q Krave Chocolate Hazelnut Q Rice Krispies Q Special K Original Q Kellogg’s Variety Q Rice Krispies Multigrain

ON-THE-GO “Breakfast is a key occasion for convenience retailers,” says Susan Nash, Trade Communications Manager at Mondelez International. “And out-of-home breakfasts are currently seeing double digit growth [Kantar]. Retailers have a great opportunity 70

SLR | JULY 2019

SLR July 2019.indd 70

www.slrmag.co.uk

16/07/2019 16:39:46

Kelloggs Coco Pops White Chocolate Spar Real Deal Trade Advert 210x297 Apr 19 FINAL v2.pdf

SLR July 2019.indd 71

08/05/2019

09:56

16/07/2019 16:39:52

Feature

Tobacco

LOSE FOCUS ON TOBACCO AT YOUR PERIL For a category that still delivers a massive percentage of most local retailers’ turnover and a big chunk of their cash profits, tobacco risks becoming a forgotten category – and this is a risk that the trade cannot afford to run.

MAKE THE MOST OF A KEY CATEGORY Imperial Tobacco offers the following advice to retailers to maximise sales: Q Continued focus on new product development (NPD) is critical, but in a challenging post-EUTPD2 environment it’s vital to communicate that innovation to adult smoker consumers. Q Organise tobacco products by brand, range and price segment – sub economy to premium ensures availability is consistently maintained. Q Take note of your bestselling FMC and RYO SKUs and always ensure stock rooms contain enough backups to replenish gantries should supplies run low.

SLR | JULY 2019 19

SLR July 2019.indd 72

t’s hard to believe, but tobacco is rapidly at risk of becoming the forgotten category of local retail, a remarkable situation given its size and importance to local retailers in terms of footfall, sales and profits. With more and more stores choosing to move their tobacco under the counter there is a real risk that retailers take their eye off the ball in what remains a massively resilient and important category. Yes, there are strong arguments for reclaiming the valuable space traditionally dominated by the tobacco gantry and it’s clearly an issue that many retailers are grappling with – but the bigger danger is the ‘out of sight, out of mind’ risk that comes

with de-prioritising tobacco in the minds of local retailers and their in-store teams. “The tobacco category remained bullish last year,” according to Duncan Cunningham, Head of Corporate & Legal Affairs at Imperial Tobacco UK&I. “The European Tobacco Products Directive II (EUTPD2) and standardised packaging regulations have brought challenges, but numerous opportunities still exist to bring products to the market that meet evolving consumer demand. This ensures that adult smokers continue to enjoy innovative new tobacco experiences.” The challenges that Cunningham refers to are extensive and complex, from continuing tax hikes to the implementation of Track & Trace (T&T), and they are not to be underestimated – but they are also not a reason to mentally walk away from a hugely important category. “Relentless tax hikes have contributed to the ever-rising cost of tobacco products and pushed growing numbers of UK adult

www.slrmag.co.uk

16/07/2019 16:39:57

why not buy ? shoppers do. N E W M Y B L U. H A N DY A N D E A S Y VA P I N G.

This product contains nicotine. 18+ only. Not a smoking cessation product. ÂŠ Fontem 2019. 2019

SLR July 2019.indd 73

16/07/2019 16:39:57

Feature

Tobacco

NPD ‘KEY TO GROWTH’ New product development and a strong range that includes filters, papers, matches and lighters are key to driving growth of the tobacco accessories category in Scotland, according to Republic Technologies UK. “The tobacco accessories category in Scotland is now worth £28.9m, with increasing pressure on suppliers to innovate to make their mark,” says Gavin Anderson, Republic’s General Sales Manager. “The Scottish market has seen YOY growth of 8.9%, with papers and filters being the most buoyant areas of the category; with papers worth £10.8m and growing at 7.3%, and filters worth £6.1m and growing at 10.0%.” Republic Technologies has recognised the need for greater choice with NPD that taps into consumer trends including OCB Virgin Slim and Slim & Tips, for consumers looking for an unbleached paper and a softer smoke; Swan Ultra Slim, the thinnest-ever Swan filter and a premium quality product aimed at discerning smokers; and Swan ‘Eco’ filters, the most environmentally friendly Swan product ever. Featuring an unbleached paper with a natural brown colour, OCB Virgin Paper offers the highest level of rolling paper quality. Manufactured to the highest standards to offer a silky touch, lightweight feel, and premium quality, OCB Virgin provides consumers with the best possible rolling experience. “Our OCB Virgin Papers offer a unique proposition, providing real appeal for consumers who are looking for an all-natural rolling paper for a smoother smoke,” says Anderson. “Each leaf is gummed with OCB natural acacia gum, sustainably sourced from African acacia trees, which is both 100% natural, vegetarian, and GM free.”

SLR | JULY 2019

SLR July 2019.indd 74

smokers towards the illegal market,” says Cunningham. “Latest HMRC figures (2016/17) estimate that this is costing the Exchequer £1.8bn in cigarette revenues and £700m in hand-rolling tobacco revenues – a combined all-time high.” Similarly, T&T has been fraught with problems thanks in no small part to the undeniably clumsy way the legislation was implemented. So yes, challenges abound, but Cunningham believes there are still grounds for optimism for retailers willing to embrace the opportunities that remain. “Downtrading is one notable current trend,” says Cunningham. “At Imperial, we continually monitor and – if necessary – reposition our portfolio to react to movements in the market. For instance, earlier this year we announced plans to reposition Embassy from its traditional home in the Premium price sector to the more popular Economy price sector due to a consumer trend towards downtrading. Embassy’s repositioning now means that it is available to retailers in King Size 20s, with an RSP of £9.35 for Embassy Red and Bright Blue, providing a competitive new price point that will appeal to adult smokers seeking premium quality at an affordable price.” Downtrading is hardly a new phenomenon but the focus on it has never been greater for both shoppers and manufacturers. Cunningham also cites another long-term trend as offering opportunities: the growth of RYO. He says: “In the UK, RYO has been consistently growing its share of the overall tobacco category. However, since the introduction of EUTPD2 in May 2017, the speed of the shift from FMC to RYO has increased significantly. Between 2014 and 2016 Imperial estimates that RYO saw an average monthly gain in White Stick Equivalent (WSE) share of 0.07%. However, through 2017, RYO’s share of WSE grew by an average of 0.18% per month – almost triple the rate of overall category growth. UK RYO market share in relation to FMC stood at almost 39% in November 2018. Current trends suggest this pattern is set to continue.” The third key trend that has morphed into another fact of life in the category is the growth of crushball. Cunningham again: “The crushball (capsule) sector also continues to flourish, currently standing at over 15% of the overall FMC market. If they don’t already do so, wholesalers should consider stocking our award-winning JPS Players Crushball (£8.70 RSP) and JPS Crushball (£9.35 RSP). We have also recently released an exciting new Rizla Crushball filter tip.” Rizla Polar Blast is the first ever RYO filter tip to contain a crushball. The squeezable

filter tip means adult smokers will be able to ‘click’ to enjoy the taste of mint whenever they roll their own. Rizla Polar Blast is available in pack sizes of 60 tips with an RSP of 99p. Cunningham highlights that it’s more important than ever that retailers stock Imperial’s best-selling Imperial cigarette and RYO brands like Players, L&B Blue and Gold Leaf, as well its range of Rizla papers. These have recently been repackaged with a soft-touch finish and a ‘tuck in’ closing mechanism designed to reduce wastage. Relatively new from Imperial is the Riverstone RYO brand aimed at cigarette smokers moving over to the RYO sector as well as dualists. Riverstone offers a smooth taste at a value price point. Ross Hennessy, Head of Sales at JTI UK, agrees that retailers cannot afford to lose focus on the tobacco category: “The value of tobacco in the UK totalled £14.6bn in the last year with the cigarette market accounting for £11.2bn , making it a key profit driver for retailers. JTI is currently the number one tobacco manufacturer in the UK with a combined market share of 43.2%. JTI’s cigarette share stands at 41.4% and 45.7% for rolling tobacco.” Hennessy advises retailers to consider their pricing carefully if they want to make the most of the category. He comments: “Adult smokers on the whole want value for money, so price is a key factor when choosing where to shop for tobacco products. Retailers should look to remain competitive by selling at RSP or below. “They can take advantage of the trend for value products by stocking Kensitas Club Rolling Tobacco, JTI’s lowest-priced offering in the category, and the new B&H Blue Dual Double Capsule, which launched as the UK’s lowest-priced double capsule offering in January of this year.” He also highlights the critical role of availability: “Research has shown that nearly a third of smokers will choose to buy elsewhere if their preferred brand is unavailable. It is therefore crucial for retailers to maintain good availability across their range. If they don’t, they could be in danger of losing sales. “Retailers should make sure to adapt their range to reflect trends if they hope to maximise sales in the category; stocking new products that meet the needs of existing adult smokers.” Homing in on the capsule sector, Hennessy says JTI has been working hard to help retailers meet demand for this growing opportunity. He explains: “So far this year we’ve extended our Capsule range with the addition of two new products – Sterling Dual Triple Green and Benson & Hedges Blue Dual Double Capsule. www.slrmag.co.uk

16/07/2019 16:39:59

Tobacco

RAISE THE CIGAR BAR There aren’t many parts of the tobacco category in growth but cigars is one of them. Alastair Williams, Country Director at Scandinavian Tobacco Group UK (STG UK), comments: “IRI data shows that the cigar market in the UK is worth £198m, reporting a minor increase of 0.9% overall, with the Miniatures and Medium/ Large cigar segments reporting an increase of 4.6% and 2.7% respectively.” Miniature cigars continue to dominate the market, with 73.2% of the total cigar volume and STG UK’s miniature brands contributing 67.5% of the value sales to the segment. This includes the Signature brand, formerly known as Café Crème. Signature Blue accounts for 30.4% of the market while the original Signature contributes a further 11.3%. Moments Blue, another STG brand, claims a 17.6% share. Across the UK this means that STG UK’s miniature brands collectively represented £72m in value sales over the last 12 months – that’s over two times bigger than all the other miniature brands combined. When looking specifically at value for money within miniatures, Moments Blue is bigger than the total of all the other miniature brands together, at a value of £14.9m, making it an important must stock for any tobacco stockists.

Within Scotland, the total cigar market is valued at £17m. STG UK is the clear market leader with a 58% volume share. Williams says: “Our research from our Let’s Talk campaign into shopper purchasing habits of tobacco showed that most smokers are actually very open to trying to cigars and willing to consider switching given the right factors. “The research findings highlighted that 59% of male smokers who don’t normally smoke cigars would be willing to buy them. The research also showed 79% of smokers who regularly visit a convenience store would try an alternative tobacco product, such as cigars, if it was recommended by store staff.” Williams advises retailers to grow their – and their staff’s – understanding on the different cigars available in each segment, and what type of consumer they are most suited for. “In doing so, retailers will be able to offer customers the all-important guidance they need and desire, to help them make informed choices on what cigar would be right for them,” he says. Combine these insights with the fact that cigars have double the profit margin of cigarettes (potentially an extra £250 profit for each consumer that switches to cigars), there is a clear opportunity for retailers to cash in.

Feature

“Sterling Dual Triple Green is the first triple menthol cigarette to launch in the UK tobacco market. The innovative, mentholated cigarette has two capsules, one peppermint and one spearmint, offering an exciting new proposition for existing adult smokers from the UK’s number one capsule brand. “The B&H Blue Dual Double Capsule brings a more intense flavour option to the UK’s fastest-growing cigarette brand. Launched as the UK’s lowest-priced Double Capsule offering in January 2019, the product allows retailers to tap into the growing value segment.” JTI’s Kensitas Club also continues to be popular and is now the fastest-growing cigarette brand in Scotland. When all is said and done, it’s a vital category, concludes Hennessy: “Our advice would be to continue to invest in the tobacco category to take advantage of the profit opportunity it presents. Ultimately, those retailers who are focused on stocking a full range, and who are competitively priced, will reap the rewards.”

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

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

www.slrmag.co.uk

SLR July 2019.indd 75

JULY 2019 | SLR

16/07/2019 16:40:00

Feature

Summer Big Night In

COUNT ON THE CLASSICS FOR BIG NIGHT IN SUCCESS

When it comes to ensuring you have all the ingredients for a big night in and a big basket spend, a great place to start is with the classics of the category, the sharing superheroes.

ith limited space available in-store, it pays to develop a laser-like focus when it comes to creating dedicated bays or sections for occasions like the big night in. This is especially true in summer when a period of sunshine can often trigger big impulse baskets for a night with friends and family.

PRINGLES PLANS The focus, then, should be on those brands and lines that we know customers love. Brands like Pringles, for instance. The classic sharing brand remains a staple of the big night in and there’s more reason than ever for shoppers to grab a can thanks to the launch earlier this year of Pringles Rice Fusion, hailed by the company as “its biggest innovation in four years”. The rice-based chips are made with easterninspired flavours and mark the first major launch from the brand since they unveiled Pringles Tortilla chips in 2015, a product that went on to become the biggest launch in the chip category that year according to IRI data. The Pringles Rice Fusion range includes three variants – Malaysian red curry, Indian tandoori chicken masala and Peking duck with hoisin sauce – all in 160g cans. Thanks to the manufacturing process and ingredients used, the Fusion range has less saturated fat and less salt than the core Pringles range. The new products are being 76

SLR | JULY 2019 19

SLR July 2019.indd 76

supported throughout 2019 with a £3m investment in exclusive instore POS, eCommerce, digital, TV and out-of-home advertising. More good news for Pringles fans is the fact that, since Kellogg’s UK struck a deal with UK recycling company TerraCycle, consumers can now recycle their empty cans. Empty Pringles cans can be sent to TerraCycle using freepost labels. The cans are then recycled and used to create new products such as benches and fence posts. The sender is also rewarded with a charitable donation for every can, which can be redeemed for a school, charity or nonprofit organisation of their choice. The move was part of a sustainable packaging commitment from Kellogg’s which will also see the introduction a new range of recycle-ready cereal pouches. The cereal and snack brand is working towards making 100% of its packaging reusable, recyclable or compostable by the end of 2025.

SOFTLY, SOFTLY A big night in wouldn’t be a big night in without some larger-format soft drinks to share around and the classics are where to start once more. You won’t go far wrong with larger format packs of the biggest brands from the main suppliers and, as Adrian Troy, Marketing

Director at Barr Soft Drinks, points out, “shoppers purchase 19% more soft drinks [in summer] than any other time of the year” –so now is your chance to cash in. There’s always room to try a few new options though, like Snapple or Rubicon in 1.5-ltr format for shoppers looking for something a little different to liven up a get-together. Troy also advises: “Restock the big night in fixture regularly to take advantage of impulse purchases and, if a product is selling out regularly, increase the number of facings. Empty shelves equate to lost sales so review your range and space allocation frequently, based on your own sales data and knowledge of the local shopper.”

SWEETEN IT UP Another key category for sharing is confectionery. Evening snacking is worth over £6.5bn and is growing, according to Susan Nash, Trade Communications Manager at Mondelez International. She says: “Chocolate is still the number one choice for those settling down for a night in with friends and loved ones, followed by sugar confectionery, biscuits and crisps – so there are plenty of opportunities for crosscategory selling to create the perfect night in. What’s more, 52% of all confectionery occasions take place with other people present, so having a range of sharing formats is key to maximising this opportunity.” www.slrmag.co.uk

16/07/2019 16:40:02

Kellogg's Merlin Pringles 70g Trade Advert Resize 210x297 May 19.pdf

SLR July 2019.indd 77

28/05/2019

09:57

16/07/2019 16:40:07

UTC

PLASTIC REDUCTION IN THE BAG

There’s more than one way to skin a moggy, as UTC discovered when he learned of how one Canadian grocery store had taken a slightly more creative approach to reducing reliance on single-use plastic bags. While Nicola Sturgeon and Co plumped for the usual ploy – start charging for them – East West Market in Vancouver has found a much more humorous way to encourage its customers to refrain from using disposable bags, as you can see...

PACK YOUR BAGS It’s common knowledge that The Big Orange baby Donald Trump loves a bit of #fakenews. It’s also no secret that UTC cannae see past a bit of #fakeresearch. [Ed – can we copyright that hashtag?]. The latest exemplar is from some insurance mob called AllClear who have gone to the bother of looking into the “items Scots can’t go on holiday without”. This list of items has clearly been drawn up without the researchers ever having boarded a Jet2 plane with 200 of Glasgow’s finest for a raucous flight to Alicante. It includes, for example, such items as photographs of pets, religious texts, photographs of children, hair straighteners and condoms. Nowhere on the list, noted the Auld Yin, does a 2-litre bottle of IrnBru that has been half-emptied and filled with Glen’s Vodka appear. There is also no mention of a Celtic or Rangers top. No sports socks. Nothing. 78

SLR | JULY 2019

SLR July 2019.indd 78

UTC’S WORLD TURNED UPSIDE DOWN Now as well know, UTC likes a dram. And we also all know whisky is Scottish. We can just about live with Irish whiskey but UTC simply isn’t wearing the stuff that English and Welsh distilleries have been producing. English whisky? Aw, c’mon. So imagine the withering look on the auld boy’s wizened coupon when he learned last month of... Australian whisky. Yes, that’s right. Australian distillery Twenty Third Street has just released its first Single Malt Whisky. The world has been turned upside down. And not in a good way.

www.slrmag.co.uk

16/07/2019 16:40:07

SLR July 2019.indd 79

16/07/2019 16:40:08

MyStore+, an app connecting brands and convenience retailers to unlock business growth MyStore+ enables growth and real time communication between retailer and brand, with retailers able to directly access advice, offers and rewards from brands at any time.

To find out more, please visit mystoreplus.com

SLR July 2019.indd 80 Ad.indd 1

16/07/2019 27/06/2019 16:40:10 14:24:09