SLR July 2021 edition by 55 North

JULY 2021 | ISSUE 218

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SLR Awards 2021 judging panel unveiled p30

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DENNIS WILLIAMS Edinburgh retailer kicks off Rockstar project

GAVIN ANDERSON

Accessories key to leveraging RYO growth JULY 2021 | ISSUE 219

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CHARM OFFENSIVE

Under Nick Wiles, PayPoint is tackling long-standing retailer gripes and offering fresh opportunities.

SLR Awards 2021 judging panel unveiled p30

DAIRY DRIVE

Perfect time to be milking dairy

NICOTINE FIXED? The evolution of nicotine

SALT OF THE EARTH

Scottish salt producer in profile

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July 2021

Contents

Contents ISSUE 219

NEWS p6 p7 p8 p9 p10 p12

p22 p24

Post Office Spar Scotland to withdraw Post Office services from 31 company-owned stores. Trade Associations First Minister Nicola Sturgeon will deliver the keynote address at this year’s SGF conference. National Lottery Camelot announces annual lottery sales of over £8bn for the first time. Healthy Living Programme A new six-store trial sees children in Aberdeen encouraged to eat free fruit. Charity Scotmid extends its partnership with Children’s Hospices Across Scotland until August 2022. News Extra Junk Food Will Westminster’s decision to ban pre-watershed junk food ads spur the Scottish Government into reviving its plans for HFSS promotions? Product News Irn-Bru invades Wembley and STG unveils a new trade website. Off-Trade News Smirnoff has a new crush and Malibu serves up a slice of summer.

INSIDE BUSINESS p26 Two Minutes Of Your Time Wayne Thompson It’s a great time to be milking the dairy category, says FrieslandCampina’s Out-of-Home Business Unit Controller. p28 InAction+ Rockstar SLR works with Broadway Convenience Store to create further energy drinks sales opportunities with Britvic’s Rockstar brand. p30 SLR Awards It’s almost time for the judging to begin for this year’s SLR Awards – and it’s time to meet the judges. p33 Producer Profile Hawkhead Whisky Smoked The Glasgow-based smoked salt producer has recently added to its collection of award wins. p36 Hotlines The latest new products and media campaigns. p54 Under The Counter SLR’s resident Curmudgeon-in-Chief gets carnaptious about crustaceans. FEATURES p38 Tobacco Value and quality are key to tobacco success, while the importance of accessories shouldn’t be overlooked. p44 Bottled Water The current period of warm weather sends sales of soft drinks soaring – and bottled water is among the greatest beneficiaries. p46 Crisps & Snacks Despite the promised return to form of impulse snacks, it’s still sharing and larger format packs that are delivering the goods for retailers. p48 Nicotine Overview SLR’s category round-up takes in the biggest vaping brand you’ve never heard of, the rise of the ‘dualist’ smoker and the profit opportunity from cigars. ON THE COVER p16 Under new boss Nick Wiles, PayPoint is making strides in addressing its tempestuous relationship with retailers.

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JULY 2021 | SLR

News POST OFFICE CJ Lang culls loss-making counters

New Food Standards Scotland Board members Food Standards Scotland has made the first new appointments to its Board since it was formed in 2015. These follow the launch of its six year Strategy to 2026, which has a focus on improving the Scottish diet. Food industry specialist Alban Denton and public health expert Carol Evans are already in post, with chartered accountant and finance leader Aileen Brown joining on 1 January 2022.

Scotmid seeks good causes to support Scotmid has called on community groups in the Tollcross area of Edinburgh looking for funding to get in touch after it officially opened its revamped 9500sq ft Leven Street store. To mark the relaunch, Scotmid donated £500 to Edinburgh’s Kings Theatre as part of the venue’s ‘name a step’

Spar Scotland to shut over 30 in-store Post Offices CJ Lang has followed its bold move on briefly delisting The Telegraph over retailer terms by announcing that Spar Scotland is to withdraw Post Office services from 31 stores across Scotland later this year. The decision came after 18 months of negotiation between the company and the Post Office. Spar Scotland said “the move to shut loss-making counters would help ensure the stores continued to operate”. CJ Lang said it constantly reviewed the services within its stores and the impact that Post Office counters have on overall store operations. Citing industry-wide pressures on retail outlets due to changing consumer habits, CJ Lang said in a statement: “Unfortunately, in some instances it is not viable for us to

continue to offer the service at our sites.” The Post Office has expressed its concern at elderly accessing its services and, unsurprisingly, a number of politicians have reportedly voiced strong objections, with Labour MSP Alex Rowley quoted in The Courier as saying “the retailer is driven purely by profit and could not care less about the people who use its services” alth ough he then added that he promised to “speak to Post Office bosses in a bid to persuade them to open alternative services in affected communities. The Post Office has a duty to ensure people can get access to services.” CJ Lang’s recent hard-line approach reflects growing industry-wide resentment from local retailers over having to offer

important services and products to their communities but making little or no money in doing so – or worse, as in this case, of actually losing money on providing services to the public. These are complex, highly nuanced issues that are difficult for the trade to understand and resolve, let alone customers – but the blame should not be laid squarely at the door of retailers. Local retailers across the UK, including Spar Scotland, do a fantastic job of serving the needs of their communities, and never more so than over the last year. Spar Scotland has taken a very difficult but entirely understandable decision – and it will be no surprise if other retailers follow suit on what they see as low- or no-margin products and services in future.

campaign, which sets out to aid work into making the premises accessible to all.

Waitrose trials packaging return scheme Waitrose has launched a 12week trial that lets customers return hard-to-recycle flexible plastics to stores. Live in 37 branches serviced by its Leyland distribution centre, the trial takes in all clean flexible plastics that can be crunched up, stretched, squashed or unfurled, like crisp packets, sweet wrappers, bubble wrap and cling film. If successful, it will roll out across all Waitrose stores.

Asda unveils one hour delivery across full range Asda has launched a one hour delivery service for its full online range – the first UK supermarket to do so – from three stores in England. For an £8.50 charge, shoppers can order up to 70 items from asda.com for express delivery. There is no minimum basket spend and the service is available to shoppers within a three mile radius of the participating stores.

SLR | JULY 2021

HOME DELIVERY Shopping app teams up with delivery business

Jisp forges last-mile delivery partnership All-in-one shopping app Jisp has teamed up with Zoom 1hr Delivery to provide retailers with a fleet of home delivery drivers. Store owners will now be able to have their products delivered straight to their customers without having to leave the shop, hire new drivers or purchase vehicles. Zoom 1hr Delivery, that has a driver fleet of more than 300 vehicles nationwide, has been operating primarily in the West Midlands and Wales. However, following Jisp’s partnerships with Bestway and Nisa as well as Zoom’s expansion with Coop, both companies are in talks to extend their reach. Ilann Hepworth, MD of Jisp, said: “Last-mile delivery has always been the missing link in our proposition as many retailers either didn’t have enough staff, time or vehicles to truly benefit from providing Jisp’s Home Delivery service. With Zoom’s impressive fleet of cars and driver portfolio we are looking to rapidly grow store numbers whilst continuing building our reputations as retailer-first convenience service on the market.” Zoom 1hr Delivery currently serves more than 440 retailers and is set to add 300 Co-op stores by the end of September.

LOGISTICS

Independent retailers back call for action over HGV drivers drought The Road Haulage Association (RHA) has warned that a shortage of HGV drivers will have a serious impact on maintaining delivery levels to stores. The RHA said it needs access to EU and EEA labour to address the shortage and has asked for the introduction of a temporary worker visa for HGV drivers. It also called for this occupation to be added to the Home Office Shortage Occupation List. The Federation of Independent Retailers (NFRN) urged the government to take immediate action to avoid stores being faced with empty shelves. NFRN National President Stuart Reddish said: “Some of our members are already experiencing difficulties in obtaining stock and, if this shortage of drivers is not addressed, the situation will only get worse. “As many retailers are just starting to recover from the hardships caused by the coronavirus pandemic, the last thing we need is a lack of availability of stock, especially when it comes to essential products.”

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News TRADE ASSOCIATIONS First Minister will give keynote address to retailers

First Minister to address SGF annual conference

Lomond bounces back Lomond: The Wholesale Food Co has hit 98% of its pre-Covid sales during June, ahead of its predictions, despite 400 of its regular customers still waiting to reopen post pandemic.

Scottish Grocers Federation has announced that First Minister Nicola Sturgeon will give the keynote speech at its 2021 annual conference. In her acceptance letter, the First Minister said she was “delighted to attend”. This will be the fourth time in total that Sturgeon has spoken in person at the SGF’s annual conference and sends a clear signal about the continuing close relationship between the Federation and the Scottish government. It is expected the First Minister’s address will highlight the crucial role the convenience sector has played in supporting communities throughout the pandemic and the key and ongoing part it is playing in ensuring Scotland’s recovery. SGF CEO Pete Cheema said: “The First Minister’s acceptance of our invitation shows how greatly her government values the contribution our sector has made to Scotland and its communities throughout the course of a completely unprecedented public health crisis. This is outstanding recognition for SGF and for our members.” The conference will take place as a physical event at the Crowne Plaza hotel in Glasgow on 16 and 17 September 2021.

During the lockdown restrictions of 2020, the wholesaler saw sales fall to 45% as many of its foodservice customers had to close or significantly restrict sales.

Spar Scotland celebrates CJ’s roll out Spar Scotland is on target to roll out its CJ’s food-to-go brand in all 107 of its company-owned stores by the end of the year. Sixty-five stores now offer CJ’s, which includes a hot breakfast and lunch offer along with support from local bakers. Spar Scotland wholesaler and retailer CJ Lang celebrated by delivering special cakes to all company owned Spar stores, as well as to warehouse and head office staff

MINIMUM WAGE ACS and NFRN respond to Low Pay Commission

Trade associations urge caution over minimum wage Both the Federation of Independent Retailers (NFRN) and Association of Convenience Stores (ACS) have called for a cautious approach to increasing the National Living Wage (NLW) and other statutory minimum wage rates in 2022/23 to allow the labour market and economy to recover from the impact of the pandemic. In its response to a consultation with the Low Pay Commission, the ACS recommended that the commission hould consider extending the timetable for NLW reaching two-thirds of median earnings by 2024, which is currently projected to be £10.33. Informed by its National Living Wage Survey 2021, a submission from ACS recommended that the Low Pay Commission (LPC) should consider extending the timetable for NLW reaching twothirds of median earnings by 2024, which is currently projected to be £10.33.

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ACS Chief Executive James Lowman said: “It is right that the Low Pay Commission take a cautious approach when setting wage rates for next year and review the timetable for the National Living Wage rate reaching twothirds of median earnings in 2024.” In its submission, the NFRN said increasing the minimum wage would seriously harm smaller businesses looking to recover from financial difficulties caused by the Covid-19 pandemic. At its peak, around 8% of the NFRN’s membership was forced to close due to lack of customers, staff shortages or concern about the risks of infection. Some of these stores have still not reopened. NFRN National President Stuart Reddish said: “Our members believe that those who work in retail should be paid a fair wage for their work. However, recent increases in wage rates have cost jobs in the retail sector.”

CASH

Turing £50 note enters circulation The Bank of England’s new polymer £50 banknote featuring the scientist Alan Turing has entered circulation. The new note contains advanced security features and, like the £20, incorporates two windows and a two-colour foil, making it very difficult to counterfeit. There is also a hologram image which changes between the words ‘Fifty’ and ‘Pounds’ when tilting the note from side to side. The current paper £50 note and the paper £20 will both cease to be legal tender on 30 September 2022.

at its Dundee depot.

CPG goes local for first meeting The Cross Party Group on Independent Convenience Stores held its first (virtual) meeting of the new Scottish parliamentary session on 23 June, discussing the SGF Go Local Program Pilot Project. It was noted that the Pilot had been going exceptionally well and had seen clear evidence of a very impactful ‘local multiplier effect’.

Heat pump cash back The Scottish Government is offering 75% cashback grants along with an interest-free loan for businesses wanting to install heat pumps. Organisations can access the loan and receive a cashback grant of up to £10,000 while also cutting their energy bill and carbon footprint. For full details visit bit.ly/3qQtaUh or call Zero Waste Scotland’s Energy Efficiency Business Support team on 0808 808 2268.

JULY 2021 | SLR

News NATIONAL LOTTERY Camelot toasts record sales

Government sets off fireworks consultation

Lottery sales pass £8bn milestone

The Scottish government has published a public consultation seeking views from the public and stakeholders on the introduction of four specific requirements in relation to the sale and use of fireworks in Scotland, as well as a new offence in relation to carrying a pyrotechnic device in a public place without reasonable excuse or lawful authority. It can be found at bit.ly/3dLKgxa.

TWC shakes up Board Wholesale data and digital specialist TWC has made some key strategic changes to its Board, with Co-founder Mike McGee – well known for his role in the industry and leadership of Landmark through the 90s – now the company’s Chairman. Development Director Tom Fender has become an investor and shareholder, and

Camelot has revealed record National Lottery sales of £8,374m for the financial year to the end of March, an increase of £468.8m, taking total sales through the £8bn mark for the first time. As a result, the amount of money donated to good causes across the UK also hit a record high of more than £1bn. Camelot succeeded in growing sales of all six of its draw-based games to £4,690.7m, an increase of £153.6m. This was primarily driven by Lotto, with a new feature introduced in November that sees around a million players win an additional cash prize of £5 for matching two main numbers in a ‘Must Be Won’ Rolldown draw. Meanwhile, sales of Instants grew to £3,683.2m with growth in the sales of online instant games offsetting a decline in scratchcard sales which were down yearon-year due to lower retail footfall, particularly in the first half. Camelot awarded a record £4,854.7m in prizes to players, £349.7m more than in 2019/20, and created 389 new millionaires – more than one a day. Its rewards programme for independent retailers saw commission paid to retailers reach £275.9m – the equivalent of around £6,200 per store.

Camelot created over 389 new millionaires in 2020/21.

Less welcome news for retailers is that the National Lottery recorded its highest ever digital sales at £3,509.5m – an increase of £1,052m. Within digital, mobile sales grew by £876.4m to an all-time high of £2,481.9m, with most of these sales app-based. The Lottery’s expanding retail footprint is also a thorn in the side of the convenience channel. It has new partnerships and national roll-outs with discounters, including Aldi and Iceland, and is also making it convenient to purchase a ticket in self-checkouts, as well as making it possible to buy tickets at the checkout in retailers such as Asda and Tesco.

experienced FMCG executive Andy Donnelly, has also joined as an investor and shareholder.

SWA urges customers to #BeKindToWholesale “Unacceptable abuse” towards wholesale staff including delivery drivers, telesales and credit control teams have led the Scottish Wholesale Association to launch a #BeKindToWholesale campaign. Similar to the #BeKindtoHospitality campaign that was unveiled in May, the initiative aims to highlight that wholesalers are also operating under stressful conditions and should be treated with respect.

Brits still buying local It appears that the British public is continuing to support local businesses, even as coronavirus restrictions relax. Data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, revealed that spending at local food and drink specialist retailers, such as butchers, off-licenses and independent convenience stores, rose by 69.3% in May compared to the same period in 2019.

SLR | JULY 2021

APPOINTMENTS Booker’s Irons moves to Spar

CHARITY

CJ Lang appoints Wholesale & New Channels Director

GroceryAid School Essentials Grant now open

CJ Lang has appointed Steve Irons to the new role of Wholesale & New Channels Director. Irons takes up responsibility for leading the development and growth of CJ Lang’s presence in the wholesale and food services markets. He has over 26 years’ experience in the wholesale, foodservice, convenience and FMCG sectors and joins from Booker where he headed up the wholesale channel with Best Food Logistic. The move sees Irons return to the company he started his career with before joining Bestway in 2010 as its Foodservice Contracts and Key Account Manager. He moved to Booker in 2016, working as a National Account Controller and Business Development Manager. CJ Lang boss Colin McLean said: “I am delighted Steve has joined us to help us deliver our vision of becoming Scotland’s leading food & food services wholesale and retail provider. Steve will help us to take the business to the next level with the skills and experience needed to focus on new wholesale business opportunities. “As we undergo our major business transformation, Steve’s appointment is another example of us investing for our future success.”

Convenience retailing industry charity GroceryAid has announced that applications are now open for the GroceryAid School Essentials Grant. The grant was extremely popular last year. It is being brought back in 2021 to help reduce the financial impact on lowincome families working in the convenience and grocery industry when children return to school after the summer holidays. Parents employed in convenience and grocery who have been with their current employer for at least six months can apply to receive £150 per school-aged child, up to a maximum of three children per household. The grant will close on 30 September 2021, or sooner if the fund has been spent. Everything that you need to know about the criteria and how your colleagues can apply can be found at groceryaid.org.uk/ get-help/school-essentials-grant. GroceryAid has also created a toolkit for retailers to use within internal communications. Download the toolkit from groceryaid.org.uk/get-involved/ promotional-materials.

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News HEALTHY LIVING Children encouraged to eat well

Spar Scotland trials HLP free fruit for kids campaign Spar Scotland has concluded a new campaign with the SGF Healthy Living Programme (HLP) where participating stores gave out free fruit to children to encourage them to enjoy a healthier lifestyle. The trial took place in six Spar Scotland stores in Aberdeen last month. Participating stores offered a selection of fresh fruit at till points with children encouraged to take a piece by store staff. The free fruit included bananas, apples and oranges and was available in baskets at the till points with fully branded POS provided by HLP. Teams from Spar and HLP also handed out healthy goody bags to children and adults alike. The joint initiative between Spar Scotland and HLP highlighted the support both organisations offer in promoting healthy options.

Spar Scotland was the first convenience retailer in Scotland to trial the initiative. Colin McLean, CEO of Spar Scotland, commented: “We’ve partnered with HLP for many years now through a variety of different guises. However, this initiative sits well with us in terms of adding support to our grassroots partnership with the Scottish FA. It’s all about healthy eating and a healthy lifestyle.” Speaking before the trial launched, Kathryn Neil from HLP said: “We are delighted that Spar Scotland have agreed to trial free fruit for children in selected stores. It is now more important than ever that healthier options are available to everyone no matter what their financial situation. Spar Scotland will be the first convenience chain

Unsustainable consumption With a year until the Deposit Return Scheme goes live, Zero Waste Scotland has revealed the size of the country’s consumption footprint for the first time. A new report, The Scottish Material Flow Accounts, shows the average Scot consumes 18.4 tonnes of materials every year – or around 50kg per week on average. A sustainable level of material use, while still allowing for a high quality of life, is about eight tonnes per person per year.

in Scotland to offer free fruit to children. We are hoping with the trial we can then introduce this campaign into other stores within the Spar Scotland estate. “Spar Scotland are continually at the forefront when creating links within their community and with their affiliation with the Scottish FA it is proven that a heathy lifestyle is top of the agenda for Spar Scotland.”

One Stop unveils ‘jobs for customers’ scheme One Stop customers and people who live near its stores are getting first dibs on its customer service assistant job vacancies. Posters will be displayed in One Stop stores where jobs are available, before the role is advertised to a wider audience. Job hunters scan a QR code to be taken to an online careers page where they can start the

TRADE ASSOCIATIONS Partnership to focus on rebuilding retailer relationships

SGF and PayPoint join forces

PayPoint has become the Scottish Grocers Federation’s latest corporate member. The new partnership will focus on rebuilding relationships with retailer partners, engaging more regularly and strengthening propositions to deliver better products, service and value to their businesses. In addition, the two organisations will explore ways to support the sector and retailer partners further on important issues, such as DRS, Access to Cash and post-Covid-19 economic recovery in Scotland. The move follows several positive meetings between the senior leadership teams of both organisations, including SGF boss Pete Cheem and Nick Wiles, CEO of PayPoint. Nick Wiles, Chief Executive of PayPoint, said: “Over the coming year, there will be many exciting growth opportunities for our retailer partners and we are looking forward to working closely with the SGF to help our Scottish convenience retailer partners get the most out of PayPoint in their stores.” Pete Cheema, Chief Executive of SGF, said: “The recent high-level engagement between the two organisations has shown clearly that we have the same aims and objectives in supporting retailers, maximising business development opportunities and working collaboratively. Being a member of SGF will ensure that PayPoint is an integral part of the convenience sector in Scotland.”

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CATEGORY MANAGEMENT

application process, or they can

Unitas launches latest category guides

chat to the store manager.

Unitas Wholesale has published its latest Plan for Profit ‘Focus On’ mini category guides. The new editions, produced in partnership with P&G and KP Snacks, cover the Personal Care and Crisps, Snacks and Nuts (CSN) categories respectively. Both include key insights, planograms and best sellers information to help independent retailers grow their category sales in store. The mini category guides cover emerging and established categories that typically feature in independent convenience stores. A total of 12 have been published, with more in the pipeline. Unitas also launched its new Plan for Profit Licensed & Tobacco 2020/21 category guide which highlights the core range for these two categories. New for 2021, a wine range has been developed using specific data for the symbols and independents channel. Printed copies of all the guides are available in selected Unitas member depots. Digital versions are available to view and download via the Plan for Profit website and app.

Spar Scotland has launched

Spar sales portal goes live SalesTrack, a new service that gives CJ Lang’s suppliers access to the company’s wholesale shipment data and company owned retail sales data, in what is believed to be an industry first. The portal provides suppliers with a very clear read as to what is happening in the Scottish market.

Taskforce calls for smarter nutraceutical regulation A government-commissioned report has called for smarter regulation of the UK’s nutraceutical industry. The Task Force on Innovation, Growth and Regulatory Reform report highlighted nutraceuticals as a particularly innovative sector and proposds a new regulatory framework to promote the UK as a leader in the category. The report also called for a standard definition of nutraceuticals.

JULY 2021 | SLR

News CHARITY Co-operative plans to raise £350,000 for children’s hospices

Moffat forecourt shifts up a gear with Spar Scotland A forecourt on Moffat High Street has joined Spar Scotland. The 1,000sq ft store and petrol station was in poor condition but, working with Spar Scotland wholesaler CJ Lang, new owner Sai Elaprolu gave it a full refurbishment. The store now provides food-to-go options including Smokin’ Bean Coffee, Rollover hotdogs and Tango Ice Blast, as well as services such as Lottery and PayPoint.

Halogen bulbs switched off The UK Department for Business, Energy & Industrial Strategy has recently announced plans to end the sale of halogen light bulbs from September 2021, as part of the UK’s wider efforts to tackle climate change. The new legislation means retailers will no

Scotmid extends CHAS partnership Scotmid has announced it is to extend its charity partnership with Children’s Hospices Across Scotland (CHAS) until August 2022. Scotmid appointed CHAS as its charity partner at the end of 2020. It announced the extension during Children’s Hospice Week (21 – 27 June), a week dedicated to raising awareness and funds for children’s hospice and palliative care services across the UK, and the seriously ill children and young people they support. The decision reflects the retailer’s ambitions to provide the very best support to the charity, following a year of unprecedented restrictions and limited opportunities to fundraise, as well as engage with local communities and get them involved. It also means that Scotmid

will be able to support CHAS as it reaches its 30th anniversary milestone next year. Over the course of the partnership, Scotmid plans to raise £350,000 for CHAS along with three other children’s hospices: Jigsaw Children’s Hospice in Cumbria, Northern Ireland Children’s Hospice and St Oswald’s Hospice in Newcastle upon Tyne. Staff working in Scotmid’s food stores, Semichem stores, Scotmid

Funerals and Lakes & Dales stores will be coming together to continue raising vital funds to support the charities. For nearly 30 years, CHAS has been offering full family support service for babies, children and young people with life-shortening conditions. Each week, three children die from an incurable condition in Scotland, and the need for the charity’s services is on the rise.

longer be able to sell the majority of halogen bulbs for general household use in the UK from 1 September. Fluorescent lights will be removed from shelves from September 2023.

Nisa retailers flock to Fresh Rewards More than 500 Nisa partners have now signed up for Fresh Rewards, the symbol group’s new simplified proposition which went live on 28 June. Fresh Rewards provides the opportunity for retailers to unlock up to 5.5% rebate based on their weekly spend, embracing Co-op own brand products and being a Nisa or co-branded fascia. Visit nisalocally.co.uk/retailers/freshrewards to find out more.

Register now for Scotland Loves Local payments The Scotland Loves Local Gift Card, designed to encourage consumers to support local businesses, rolls out this summer. Supported by the Scottish Government and backed by SGF, the Gift Card is completely free for businesses to receive payments through, utilising the MasterCard network. Visit lovelocal.scot/giftcard to register.

SLR | JULY 2021

CHARITY Making A Difference Locally gives away biggest-ever amount

CHARITY

Nisa’s charity donates £160k

Sun launches Who Cares Wins Awards 2021

Nisa’s Making a Difference Locally charity has helped retailers to support local projects and good causes with over £160,000 in donations with its latest round of Heart of the Community Awards. Following a successful initial round of funding last October, the Heart of the Community Awards initiative enabled Nisa partners to nominate a local community project to receive up to £5,000 of funding from Making a Difference

Locally, with the emphasis in this round being on good causes that encourage communities to enjoy and spend time outdoors as we emerge from national lockdown restrictions. Nominations were accepted from Nisa partners throughout April and May and the winning good causes have now been notified. The latest round of Heart of the Community Awards saw 53 good causes nationwide benefit from donations totalling £163,000, cementing the initiative as Making a Difference Locally’s biggest funding giveaway to date. Winning donations will fund a wide range of projects including North Berwick in Bloom (pictured), nominated by the Nisa Local on the seaside town’s High St, and awarded a £4,540 donation. The community-based group helps to look after the town and keep its public spaces looking beautiful. Thirty volunteers work all year round to plant hundreds of summer flower displays, spring bulb festivals, winter bedding and permanent flower beds.

The Sun has partnered with Channel 4 and NHS Charities Together for its fourth annual Who Cares Wins awards. Backed by the Prime Minister, the awards will celebrate and thank all the healthcare heroes, key workers and ordinary people who have got the UK through one of the most difficult years in living memory. This will be the first partnership with Channel 4, who will broadcast the awards, and see the return of the partnership with NHS Charities Together, for which Sun readers raised over £1m last year. The awards were set up in 2017 as a way for readers to celebrate their NHS and healthcare heroes, and the latest winners will be revealed at a star-studded ceremony later this year. The awards’ host, location and date are still to be announced.

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News Extra

Junk Food

NewsExtra KEEP ON TOP OF TRENDS IN TOBACCO – P38 ADVERTISING AND PROMOTIONS Advertising ban turns up heat on Holyrood’s postponed Restricting Food Promotions Bill.

Scottish Grocers’ Federation

Convenience Matters with the SGF We have talked a lot about how well the convenience sector has coped with the unprecedented challenges of the Covid pandemic, and quite rightly so. Retailers have taken control of their stores and have turned them into safe spaces for shopping, while ensuring an uninterrupted supply of goods and services. However, the level of control retailers have is always constrained by the fact that convenience stores are at one end of a complex supply chain. We don’t have to look very far to see the reality of this. One of the main issues facing us now is a UK-wide shortage of HGV drivers. The recovery is increasing demand across supply chains, the impact is already being seen with the increased opening of “nonessential” retail and parts of the hospitality sector in recent weeks. Brexit has contributed too. So has the loss of about 12 months of driver training and testing. In the convenience sector this seems to be hitting chilled products the hardest, with some of our members reporting that problems with driver availability is causing ‘critical level’ shortages. As we have moved into summer, the demand for beers and soft drinks has increased and these lines are being prioritised with available driver-resource being used to ensure delivery. Unfortunately, there seems to be no quick fix. There has been a clear need to work with trade bodies from other sectors and by and large this has worked well, with most of them showing a commendable willingness to share advice and information with us. These challenges should be seen as a stark warning to us all about how interconnected the supply chain is and how limited our level of control can sometimes be.

SLR | JULY 2021

UK government bans prewatershed junk food ads Westminster’s decision to prohibit the advertising of HFSS products on TV before 9pm draws flak from the Food and Drink Federation and brings the Scottish Government’s own junk food legislation – kicked into the long grass because of Covid-19 – back into the spotlight. The UK government has announced new restrictions on the advertising of products containing high levels of fat, salt or sugar (HFSS). Under the proposals, products considered to be HFSS will not be able to be advertised on television before the 9pm watershed. There will also be a ban on paidfor online advertising of HFSS products. Brands that manufacture HFSS products will still be able to advertise online and on television if there are no identifiable HFSS products within the adverts themselves. Furthermore, brands can continue to advertise within ‘owned media’ spaces online, such as their own blog, website, app or social media page. There are several other exemptions to the ban: small businesses with fewer than 250 employees will not be subject to the ban; trade and business-to-business advertising will still be permitted; audio only advertising (radio/ podcasts) will still be permitted. The regulations are due to come into effect by the end of next year. Commenting on the ad ban, ACS Chief Executive James Lowman said: “We’re pleased that small businesses have been made exempt from these regulations. With social media, web sites and local advertising an increasingly important part of convenience stores’ marketing activity, we will now be making sure that there is absolute clarity on the application of these rules so that retailers who do have to comply don’t inadvertently breach these regulations.”

The Food and Drink Federation (FDF) accused the government of pursuing “headline chasing policies” that would undermine its existing plans around reformulation programmes to calories, sugars, salt and portion sizes. The FDF’s Chief Scientific Office Kate Halliwell said: “The proposals would make it difficult to advertise many products that have been carefully reformulated or created in smaller portions in-line with the Government’s own targets.” Halliwell said the proposals signalled a lack of joined-up policy. The advertising ban forms part of the Westminster government’s overall obesity strategy which, from April 2022, will also limit the placement of HFSS products and introduce tighter restrictions on promotions in England. In Scotland, such legislation is devolved to Holyrood. However, the Scottish Government put similar plans on restricting instore promotions on hold because of the pandemic and the unknown effect it would have on the food and drink sector. The postponed Restricting Food Promotions

Bill would also likely have placed restrictions on where products could be positioned within a store. When the delay was announced in June 2020, Minister for Public Health Joe FitzPatrick said the pause would give the Scottish government “an opportunity to take stock” and “take into account the impact of the Covid-19 lockdown, including on people’s diet and healthy weight”. In its manifesto for the May 2021 elections, the SNP pledged to “bring forward legislation to restrict the use of promotions on food and drink high in fat, sugar and salt over the next parliament” and, with an end to the coronavirus outbreak almost in sight, it is now being urged to get the ball rolling. In a recent blog post, Obesity Action Scotland – itself funded by the Scottish Government – called on Holyrood to reintroduce the legislation as soon as possible, saying: “The introduction of legislation which restricts such promotion of unhealthy products is an important step in putting the health of the Scottish population first.” www.slrmag.co.uk

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Comment

SUMMER OF SPORT AND SUNSHINE BODES WELL You know what it’s like. With a World Cup or an Olympics on the horizon, we always tend to get ourselves worked up about how sales might be on fire off the back of it. All too often, however, all the excitement fails to translate into the monster sales we were hoping for. This year feels different though. Obviously we’re still benefitting from the hangover of the whole Covid fiasco plus, for the first time in living memory, Scotland were actually at a major footballing tournament. What’s more, we managed to get drawn against England – and we even managed a draw against England. Then we had the agony and the ecstasy (depending upon your own personal opinion) of watching England getting better and better, even beating Germany, before falling at the final hurdle. Football didn’t quite make it home, but it certainly helped bring customers through the doors of convenience stores. Throw in a period of unusually sustained beautiful weather and the relaxation of Covid restrictions and we have the perfect storm for retailers and the scene is all set for another bumper summer, even with enormous availability issues. Alongside we’ve got (or have had) the Lions Tour of South Africa, Wimbledon, major golf tournaments and now the Olympics. And even domestic football is kicking back into action, as well as European football. In other words, there are plenty of reasons for customers to want to stock up and sit in front of the telly with their friends and family and over-indulge for a little while – and who can hold that against them? Visiting the pub remains a huge challenge and more effort than it’s worth for many, so all local retailers can do is help make sure shoppers get all that they need and more, and help get the country back on its feet with a smile on its face and a drink in its hand. The availability issues are certain to get worse before they get better, but local retailers have proven themselves infinitely more flexible and creative than their supermarket cousins when availability issues strike, as we witnessed last year. So let’s hope this is another two- or three-month window for local retailers to cash in on being there for their communities in good times and in bad. May the sun shine, may the force be with you and may the remainder of the summer be a belter.

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

ADVERTISING Sales & Marketing Director Helen Lyons 07575 959 915 | hlyons@55north.com Advertising Manager Robert Aitken 0141 222 5302 | raitken@55north.com

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

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

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

ANTONY BEGLEY, PUBLISHING DIRECTOR

Scottish Local Retailer is produced monthly by 55 North Ltd.

SLR | JULY 2021

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Cover Story

PayPoint

WILES TAKING PAYPOINT IN A NEW DIRECTION?

PayPoint’s relationship with local retailers has been a complex and often difficult one, but under Nick Wiles the company is making strides in both generating fresh opportunities for retailers and tackling some of the thorniest issues. BY ANTONY BEGLEY

he last year or two have been tumultuous for every business directly involved in the local retailing sector – and PayPoint is no different. The pandemic has created challenges for all, but it has also generated endless opportunities for businesses keen to seek them out. PayPoint has certainly been one company that has used the turmoil of Covid-19 to re-focus and re-structure itself. A tillroll of acquisitions, investments and partnerships, along with one huge divestment – the sale of the company’s Romanian division in October last year for £47m – has seen the business transformed in very short order. And while it’s small steps, the company is making in-roads into rebuilding its relationship with local retailers through engaging more actively with them, creating new opportunities for them, and facing up to some of the thorniest issues that have long been standing in the way of progress. “It’s been an incredible 18 months or so,” says Steve O’Neill, Corporate Affairs and Marketing Director. It was also a pretty incredible 18 months for O’Neill himself, the man largely credited

SLR | JULY 2021

with transforming PayPoint’s relationship with independent retailers during a five-year stint with the company before leaving in December 2019. When O’Neill joined the company in 2014, its relationship with retailers was essentially a toxic one. No conversation between retailers and the company concluded without mention of the dreaded Big C: commission. PayPoint’s response was, broadly speaking, to duck behind the parapet and become largely invisible with a bare minimum of engagement with the sector that it relied on so heavily. It was viewed as aloof, arrogant and ungrateful by retailers. As Marketing Director at the time, O’Neill was quick to see how that was an unsustainable approach and set about an intensive programme of engaging with retailers at all levels: speaking at conferences, sponsoring industry awards schemes, running retailer panels, engaging with trade bodies and, ultimately, helping to launch the PayPoint One Epos system. He knew what he would face when he spoke at industry conferences and he “fondly” recalls being booed on stage but his willingness to be www.slrmag.co.uk

PayPoint

there, to make his case and to listen undoubtedly earned him a certain amount of respect that ultimately helped him transform retailers’ views of PayPoint. “Yes, there were a lot of major issues and some of them we just couldn’t fix,” recalls O’Neill “but I always felt it was better to talk to retailers, trade bodies and stakeholders and try explain our position and to show that we wanted to talk and that we would do what we could.” The net effect was that the conversation with retailers moved on. The ‘commission’ word still cropped up, but less frequently, and a stream of new products and innovations gave O’Neill other, more positive subjects to talk about. It would be an exaggeration to say that PayPoint was any retailer’s favourite company, but there’s little doubt that things had improved and there was a platform of sorts to continue building a relationship on. It was a remarkable achievement – which made it all the more surprising when O’Neill quit suddenly in late 2019. He kept in touch with some of his colleagues at PayPoint, though only out of common sense rather than a desire to return to the company. That all changed when Nick Wiles was appointed as CEO in May last year. Wiles had been on the PayPoint board as a Non-Exec Director since 2009 and had been Chairman of the company for five years. When Patrick Headon stepped down as CEO due to ill health, Wiles was moved up to the Executive Chairman role before named CEO in May last year. “That changed everything,” says O’Neill, and before long he was back with PayPoint, initially in an interim role. “Even in the short time I was away, the company changed beyond belief,” he says. “We have made a number of acquisitions and, as a result, our universe has expanded significantly. For example, we used to have a universe that was essentially 28,000 retailers; now we have a universe of more than 60,000 SMEs and retailers. Those SMEs are across a whole range of industry verticals like hospitality, so we’re a very different company.” Despite that growth, however, O’Neill says convenience stores remain a “huge part” of the business. In broad terms PayPoint now has three separate divisions which you could loosely describe as payments and banking, shopping and e-commerce. Independent retail falls within the shopping division, although it also falls under the e-commerce banner too thanks to the parcels and Collect+ services. Wherever they fit into the new structure, independent retailers remain “absolutely fundamental to PayPoint”. The obvious response is a curt: “Well, you would say that, wouldn’t you?” But if you start to take a closer look at what www.slrmag.co.uk

Cover Story

“We obviously can’t fix all the concerns retailers have – but we’re not going to hide. We’re going to keep engaging with retailers, we’re going to keep listening and we’re going to keep collaborating.” STEVE O’NEILL

PayPoint has been doing in the independent retail space since Wiles took over and what he has achieved in a relatively short space of time, then it’s maybe worth cutting the guy a little slack. Perhaps most striking has been Wiles’ willingness to start addressing core issues that have always wound retailers up. The balance of contract charges issue, for instance, was always a sore point. Getting out of a PayPoint contract was always difficult and expensive. Now, from October, it will be easy and a lot less expensive, with only a relatively small flat admin fee to cover the recovery of the in-store kit. JULY 2021 | SLR

Cover Story

PayPoint

Another example is the long-standing problems of integrating PPoS into other Epos systems to let retailers use PayPoint on their existing tills. As of September, the pricing model is being simplified to a flat £45 a month fee to reduce existing fees for many retailers as well as easing the introduction of fees for those that do not currently pay. OK, it’s hardly wiping the slate clean, but it’s steps in the right direction – and O’Neill is keen to highlight how there are many other ways that PayPoint is demonstrating its commitment to local retailers. A recent £6.6m investment in home delivery platform Snappy Shopper, an active re-engagement with the Scottish Grocers’ Federation and a partnership with McCurrach to make its MyStore+ rewards and incentives solution available to retail partners are the most recent examples. “We’ve been very proactive over the last year and, crucially, Nick Wiles has been fully engaged with that process. When we went to talk with the NFRN and the SGF, Nick was there. He’s committed to understanding retailers’ concerns and finding solutions where he can. This is a step-change and it’s the reason we’ve been moving so fast over the last 12 months.” There are no “golden bullets”, warns O’Neill, but he and Wiles are focused on “the art of the possible”, working hard at doing what they can to work closer with retailers and help deal with the challenges they face. “When we bought digital payment services firm RSM 2000 in April and leading card payments and card terminal leasing businesses Handepay in November last year, it helped broaden our customer base and our capabilities. That helps us improve our offer to retailers. “We’re also making more progress on important issues like a cashback without purchase solution that will roll out this year. We trialled it in 10 stores and the results were very 20

SLR | JULY 2021

positive. It will help improve access to cash for customers and, importantly, it will offer retailers a commission model similar to an ATM. They’ll get paid for the service, rather than paying for it. And it’s worth noting that retailers will get the majority of any remuneration, as well as it not costing them like traditional cashback.” PayPoint’s parcel send service will also be expanded in the near future allowing retail partners to have shoppers send as well as receive parcels at the local store. “We’ve already put special label printers into something like 3,500 stores,” says O’Neill. “It’s a fairly significant commitment and it lets retailers send parcels for customers as well as deal much more efficiently with returns.” The company has also just completed the complete restructuring of its field sales team. “The full team has been restructured into two strands,” explains O’Neill. “The first is focused on new business but the other strand, and by far the biggest team, is focused on supporting retailers in every way they can. They will not be focused on selling; they are there primarily to help retailers get the most out of their relationship with PayPoint – and we firmly believe that with all of the new products and services we’ve added over the last year or so, there is plenty of scope for retailers to get more out of the relationship.” A decent example is Amazon Top Up In Store, which is targeting cash consumers. Sales are up by around 26% YOY in convenience stores, “yet only 2,000 of our retail partners are selling them regularly,” says O’Neill. “In other words, 26,000 retailers aren’t! That’s a quick win right there.” So, all told, O’Neill and Wiles seem to be more than picking up where O’Neill left off in 2019. “We obviously can’t fix all the concerns retailers have,” he concludes. “But we’re not going to hide. We’re going to keep engaging with retailers, we’re going to keep listening and we’re going to keep collaborating with local retailers to help them drive their footfall, sales and profits.” www.slrmag.co.uk

£6 MILLION BRAND INVESTMENT BRAND INVESTMENT

ON TV FROM JULY

News

Products

Well oiled Ferrero has reaffirmed its commitment to source palm oil responsibly through its updated ‘Palm Oil Charter’, developed with Earthworm Foundation. Ferrero already sources sustainable palm oil that is 100% RSPO certified and traceable back to plantations, but

Product News TAP INTO BOTTLED WATER – P44 SOFT DRINKS North London’s retailers get surprise at Bestway depot

Irn-Bru invades Wembley

the new charter outlines further actions around human rights and social practices; environmental protection and sustainability; and supplier transparency.

Scotmid takes Cake Glasgow-based bakery Cake has secured a listing with Scotmid for its new range of cake slices and cake jars, Cakely Co. The range is exclusive to Scotmid in the Scottish convenience channel and is now rolling out across the majority of the chain’s stores. All Cakely Co products are handmade using free range eggs and most ingredients are

The day before Scotland’s monumental 0-0 thrashing of England in Euro 2020, the nation’s favourite soft drink took over Wembley. Not the stadium, but Bestway Wholesale’s Abbey Road depot, which sits in the shadow of the home of English football. Well it does if Wembley casts a two-milelong shadow. The depot was fully stocked-up with Irn-Bru ahead of the clash with a full range of football-related promotional activities taking place. As well as Covid-safe full can sampling, Irn-Bru displays and merchandising, North London’s retailers

could test their soccer skills for the chance to win cases of IrnBru and a football shirt. Let’s hope they hit the target more often than the England team could! Kenton Burchell, Group Trading Director of Bestway Wholesale, said: “As the Euros look set to enjoy record viewing figures, we wanted to support our retailers with some amazing deals to help drive more footfall and revenue streams. “We thought it was also perfect timing to encourage our retailers to stock up on Scotland’s national soft drink, Irn-Bru.”

sourced in Scotland, including the packaging, sleeves and labels.

Mondelez turns on sustainable power

BISCUITS

Wagon Wheels gets behind dads

Mondelez has switched to 100% renewable electricity for all of its production sites across the UK, including its Bournville factory, the heart and home of Cadbury. The sustainable electricity is generated solely in Great Britain. The move means Mondelez can offset the equivalent of 2,900 people’s annual CO2 emissions. In 2020 the company cut CO2 emissions across production sites by 20%.

Lucozade Sport goes green Suntory Beverage and Food GB&I is spending £6m to make its Lucozade brand more sustainable. The move to make Lucozade Sport bottles from only recycled materials will save 3,400 tonnes of virgin plastic being produced annually. New bottles will also have a smaller label – further reducing the volume of plastic used and ensuring that

Wagon Wheels is supporting dads through a campaign in partnership with Dadsnet. The six-month campaign, which launched on Father’s Day, centres around a series of ‘Real Talk’ videos hosted by the ‘Loose Dads’ across Dadsnet’s platforms, tackling topics including gender stereotyping and Covid-19. The campaign also includes content such as dad jokes and competitions, and is supported across social media. Kate Needham, Burton’s Biscuit Co.’s Marketing Director, commented: “As a brand notoriously popular with men, we wanted to create a campaign which would not only show our support but spark real conversations on hard-hitting issues in a relatable, down to earth way.”

FOOD-TO-GO

Scotmid takes pizza the action at sandwich awards Scotmid’s Prosciutto, Mozzarella and Rocket Pizza Sandwich has picked up the ‘New Food-to-go’ gong at this year’s British Sandwich Industry Awards, or Sammies for short. The award-winning sandwich launched in a select number of Scotmid stores in January and beat out fierce competition from other retail chains and cafés including Waitrose, Tesco and Starbucks. Part of a Pizza Sandwich range, the winning product is made of prosciutto dried ham on a bed of rocket leaf salad, topped with balls of fresh cow’s mozzarella, layered between two thin slices of authentic, handstretched Rome-style sourdough Pizza base. It is served either hot or cold. Danny Scobie, Food-to-go Operations Manager at Scotmid, said: “Being recognised by The Sammies Awards is a massive boost for our food to go service. At Scotmid, we take great pride in providing delicious, convenient, and good value products to our customers and we nominated our Prosciutto, Mozzarella and Rocket Pizza sandwich for the award because we feel it really demonstrates that. Plus, it’s delicious!” The Pizza Sandwich is available in three variants: Q Italian Salami & Smoked Cheese Q Smoked Ham, Mozzarella and Rocket Q Tomato, Mozzarella and Rocket The retailer now plans to roll-out the sandwich to more stores following its success.

every bottle can be recycled back into another one.

SLR | JULY 2021

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

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Products

News

Uncle who? Mars Food has launched new packaging for its Ben’s Original products, “the brand’s next step in its ambition to create a more inclusive future”. The change

TOBACCO Retailer resource goes live

STG unveils new trade website

is reflected across the brand’s

Scandinavian Tobacco Group has launched a new trade website (www.stgtrade.co.uk). The new site holds a raft of relevant information for any independent retailer who wishes to upgrade their knowledge of the cigar category. Retailers who register their details will gain access to detailed information on each STG brand and the category as a whole, a recommended price list and the opportunity to book a rep visit. For those that wish to advance their cigar knowledge there is a series of ‘from seed to cigar’ videos showing the whole process from planting

sauces. The launch is supported

portfolio of plain and flavoured ready-to-heat rice pouches as well as dry rice and jarred by a new TV advert, social content, in-store activity and outdoor advertising.

Growth on cards after Riverside rebrands Riverside Greetings has

and harvesting to sorting, grading, rolling and storing. The company is also sending out a quarterly e-newsletter to independent retailers, with each issue containing latest news, category data, current trends, a suggested convenience planogram and a very brief introduction to some of the STG sales reps.

Retailers can sign up for the newsletter on the new website. STG UK’s Brand Activation Manager Clara Endresen said: “We already have our sales reps and the trade press, but the addition of our new trade website and quarterly email newsletter now offers two additional online platforms for us to get the key messages across.”

rebranded to accelerate the sales potential of greeting cards to independent retailers. The new branding now appears on vans, work wear, marketing collateral, POS and digital communications. Boss Andrew Glen said: “The rebranding means our retail customers are left in no doubt about who we are and our longterm commitment to growing our

BREAD xxx

Spar Scotland signs Hovis deal Hovis has agreed a partnership with Spar Scotland wholesaler and retailer CJ Lang. The partnership will see the Hovis core range of products, alongside its popular Scottish Mothers Pride brand, stocked in a significant number of Spar stores in Scotland. Thomas Pook, Hovis National Account Manager, commented: “With 135 years of baking experience, Hovis produces much loved bread and bakery products. Scotland is an important market and we are delighted to be

launching in Spar Scotland. This allows more consumers to have access to our tasty range of Hovis products as well as our Mothers Pride Scottish Plain brand.” Richard Collins, Trading Director for Spar Scotland, added: “We’re absolutely delighted to have signed this partnership with Hovis. This is a brand that is truly iconic and is instantly recognisable to our customers. We’re especially excited to be bringing Mothers Pride Scottish plain bread to our stores that we know our customers will enjoy.”

SPORTS & ENERGY

Learn from the best with Red Bull

Red Bull is encouraging consumers to learn from elite athletes in its new Red Bull Pro campaign. As part of the campaign, Liverpool right-back Trent Alexander-Arnold offers a never-before-seen view of how he trains and lives his day-to-day life. Alexander-Arnold features on all Red Bull Energy Drink, Sugarfree and Zero 250ml cans for the campaign’s duration. Red Bull Pro is supported by a multi-media marketing campaign, instore point of sale and a 100,000 can sampling campaign that targets amateur footballers. A film, ‘Trent’s Vision’ spearheads a full suite of content on the Red Bull website that offers further interaction for consumers.

presence in the sector.”

Pet food boss on move Mars Pet Nutrition Europe has announced Helen Warren-Piper’s appointment to Chief Growth Officer Pet Nutrition Europe. Warren-Piper continues to sit on the company’s European Leadership Team and will lead the demand strategy for Pet Nutrition Europe. She has been General Manager for Mars Pet Nutrition UK for the last two years. Kim Smet, currently Sales Director for Mars Pet Nutrition UK, steps into the interim GM role for Mars Pet Nutrition UK.

Yazoo brings back 2-4-1 Alton Towers promo Flavoured milk brand Yazoo has brought back its two-for-one Merlin Group on-pack promotion for the second year in a row. Available until the theme park season ends in November 2021 across its core and limitededition Jaffalicious Choc-Orange flavours in individual and sharing size formats, the promotion sits front and centre on-pack to draw attention and standout on shelf.

www.slrmag.co.uk

JULY 2021 | SLR

News

Off-Trade

PRUK banks on new Marketing Director Pernod Ricard UK has appointed Leanne Banks to the position of Marketing Director. She will oversee the development of integrated marketing campaigns, innovation, brand advocacy, consumer experiences, digital and eCommerce across the PRUK business. Her key focus will be on putting the consumer at the heart of all campaigns and driving creativity for the company’s brands.

Accolade buys Lambrini Accolade Wines has expanded its UK portfolio with the acquisition of Lambrini, the nation’s number one Perry (pear cider) brand. Created almost three decades ago, Lambrini

Off-TradeNews MAKE SNACK SALES SOAR – P46 VODKA Diageo taps into flavoured spirits trend

Smirnoff’s new crush With flavoured vodka experiencing 30% year-on-year growth, Diageo has introduced new Smirnoff Raspberry Crush (37.5% ABV) to the UK. Available in a 70cl format (RSP £16.50), the vibrant pink liquid has natural raspberry flavours and will be available from wholesalers from 12 July. The launch will be supported by a £2.93m marketing investment. With research revealing that 5.5m vodka consumers don’t drink gin, the new liquid aims to provide greater choice, allowing it to be enjoyed across a variety of occasions such as the early evening moment. Nick Payman, Head of Smirnoff, commented: “The launch of Smirnoff Raspberry Crush is a big step towards further invigorating and adding excitement to the vodka category. Smirnoff, a renowned and trusted brand, is perfectly placed to do this as well as recruit new audiences to vodka. The vibrancy of the new pack and liquid, from its colour to its taste, will provide maximum shelf stand out.”

joins Accolade’s diverse portfolio of brands that includes wine labels Hardys, Echo Falls, Jam Shed, St Hallett, Grant Burge and

RUM Premium Cuban brand gets packaging overhaul

Ron Santiago relaunches

House of Arras. The acquisition from current owner Halewood Artisanal Spirits is Accolade’s third in the past year.

Properly improper gin Brockmans Gin has unveiled a £3m global brand strategy under the headline ‘The Properly Improper Gin’. The campaign rolls out mainly on social media with some print activity. The company’s Marketing Controller Rob McArdle said: “Our new communications strategy will inject the brand with energy, inspiring all that we do, driving awareness and growth over the coming years.”

Give ’em both barrels Australian wine brand Jacob’s Creek has launched a digital ad campaign to support its Double Barrel range, which is currently enjoying growth of over 70%. The brand also kick-started a longterm strategic partnership for Jacob’s Creek with the ICC for the next three years when it was named as official wine partner for the inaugural ICC World Test Championship Final 2021, which took place in Southampton from 18 to 22 June.

SLR | JULY 2021

Premium Cuban rum Santiago de Cuba has relaunched across Europe in four variants: Carta Blanca, Extra Añejo 11-year-old and Extra Añejo 12-year-old. A further Añejo variant will roll out in time for Christmas. All Ron Santiago de Cuba variants are distilled from molasses made from sugarcane grown only in ‘La Cuna del Ron Ligero’ (The Cradle of Light Rum) and are all aged in white oak barrels. Master blenders produce each variant with strict adherence to Cuba’s rum production traditions. Ortensia Di Gregorio, Global Marketing Director for Ron Santiago de Cuba, commented: “We are delighted to relaunch Ron Santiago de Cuba. We have introduced a fresh, new packaging design which seamlessly merges tradition with modernity. The vibrant colour palette will ensure the brand has a strong presence within the ever-growing and innovative premium rum segment.” The Ron Santiago de Cuba range is bottled at 40% ABV with Carta Blanca bottled at 38% ABV. Santiago de Cuba is available from Justerini & Brooks and other wholesalers now.

CRAFT BEER

Innis & Gunn lets liquid do talking Innis & Gunn has decided to let the liquid do the talking with the launch of its latest marketing campaign, If You Know, You Know. The six-figure campaign – the brewer’s biggest of the year so far – aims to intrigue new drinkers to try the lager, while rewarding those already ‘in the know’. It will debut Scotland-wide for five weeks featuring out-of-home advertising alongside social, digital and pop-up activity. Dougal Gunn Sharp, Founder and Master Brewer of Innis & Gunn, said: “If You Know, You Know epitomises Innis & Gunn’s attitude to the marketing of our beer. We’ve never felt the need to show off or try too hard to tell people how great it tastes – we’ve always let our beer do the talking – and our success over the years demonstrates that. “Innis & Gunn Lager Beer has performed incredibly well in the off-trade over the last year and we hope this high profile new campaign will further support our retail partners.”

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Off-Trade

News

Augmented reality rosé Treasury Wine Estates’ millennial wine brand 19 Crimes has launched its first rosé wine in time for summer. The 19 Crimes Rosé (RSP £9, 13.5% ABV)

LIQUEURS Demand for watermelon soars

Malibu serves up slice of summer

features AR technology on-pack, with the brand’s new character Robert Cranston coming to life via one of TWE’s Living Wine

Malibu has launched two new products offering a slice of summer to the brand’s 18-24 year-old target consumers. Malibu Watermelon and Malibu Watermelon Lemonade both tap into the increased demand for watermelon flavour alcoholic drinks, which has soared 64% year-on-year. Malibu Watermelon blends Caribbean rum and the ripe, juicy and refreshing taste of watermelon for a smooth and fruity finish. At 21% ABV, it is available in a 70cl bottle, RSP £15. The newest addition to the Malibu can family, Malibu Watermelon Lemonade is a sparkling blend of Caribbean rum and watermelon, with lemon and lime flavours for a burst of sweetness. The 250ml cans have an ABV of 5% and an RSP of £1.80. Both SKUs are also available from wholesalers including Bestway, Booker and United. Chris Shead, Channel Director at Pernod Ricard UK, said: “We’re delighted to be extending our current

Labels. The launch will be supported across social media channels, through influencer engagement and at sampling events throughout the summer.

Seltzer with bite Viper Hard Seltzer (ABV 4%) is available now in two flavours – Lime and Cranberry – in 330ml single can and bottle formats. The launch is supported by a

can offering at a time when the ready-to-drink market is booming, and Malibu’s RTD range has gone from strength to strength over the last three years, helping to recruit younger shoppers into the brand. “These two new additions to the Malibu family are primed to take this summer over by clearly answering consumer needs for great tasting drinks, suitable for all daytime occasions.”

sampling campaign, as well as activity at consumer events and festivals nationwide. Made with no artificial sweeteners, colours or preservatives, the latest addition to the Asahi UK portfolio is brewed with water pumped from 100m below sea level and contains 96 calories per serve.

VODKA Halewood has the Midas touch

JJ Whitley goes for gold JJ Whitley has launched a new gold filtered variant of its artisanal Russian Vodka. The latest addition to the portfolio is distilled at the JJ Whitley distillery in St. Petersburg using premium quality Russian winter wheat and water. It is then slowly passed through a filter of fine gold silk thread for a smooth finish. The new bottle features the distinctive embossed detail of the JJ Whitley range, complete with an eye-catching gold finish. James Stocker, Marketing Director for Halewood Artisanal Spirits, commented: “Our Artisanal Russian Vodka has gone on to win a number of gold medals at internationally recognised awards, and is now the fastest-growing top 10 vodka range, which is testament to the quality and accessibility of the product. “Our new limited edition JJ Whitely Gold Vodka is a fitting tribute to its gold award-winning success, providing retailers with a unique proposition which taps into multiple shopper occasions. From those looking to treat themselves or find something special to mark a celebration, or even as a great gift option, we’re confident that it will present a strong sales opportunity for retailers this summer.” The new JJ Whitley Vodka range is available to order via Booker now. RSP £16. ABV 38%.

MIXERS

Fever-Tree and Smirnoff spritz up summer

Broughton Brewery supports Tartan Army

Smirnoff No.21 is collaborating with mixer brand Fever-Tree to champion Spritz serves this summer. A £2m campaign, ‘Spritz Up,’ is live now until August and champions the vodka Spritz serve across both on- and off-trades. The campaign includes out-of-home, digital, social, sampling and in-store activity. It showcases Fever-Tree’s new premium soda range, including its Italian Blood Orange Soda and Mexican Lime Soda. With cocktails one of the fastest-growing categories across total alcohol, the Spritz serve is the fastest growing within cocktails. Andrew Ronald, Fever-Tree’s UK General Manager, said: “We’re very excited to be partnering with Smirnoff to highlight the simplicity of the vodka Spritz, introduce vodka fans to our Italian Blood Orange and our Mexican Lime sodas and create two delicious serves they can enjoy all summer.”

Broughton Brewery teamed

Independent craft brewery up with the Scottish Football Supporters Association to launch a ‘real beer for real fans’ during the Euro 2020 Football Championships. During the Euros, Broughton featured the SFSA logo on its beers, cask badges and online offers while also supporting the SFSA with a donation to its various football community initiatives.

Wooha finds buyer Wooha Brewing Company, which was in administration, has been sold to North Coast Brewing Co for an undisclosed sum. The deal adds to the portfolio run by Kenny Webster which includes Isle of Skye Brewing Co and Black Wolf Brewery together with several artisan beer brands and links with key trade, wholesale and export markets. Isle of Skye brewing has been trading since 1995.

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JULY 2021 | SLR

Inside Business

2 Minutes | Wayne Thompson, FrieslandCampina

WAYNE THOMPSON It’s a great time to be milking the dairy category, says Wayne Thompson of FrieslandCampina, the company behind the hugely popular YAZOO brand.

HOW IS FLAVOURED MILK PERFORMING IN CONVENIENCE?

FACTFILE Wayne Thompson is the Business Unit Controller for OOH at FrieslandCampina, the dairy company that owns a host of milk drinks, most notably its YAZOO brand, which includes the new Limited-Edition Jaffalicious ChocOrange flavour and the innovative YAZOO KiDS range. Before joining the company over three years ago, he held several buyer roles for bigfour supermarket Sainsbury’s.

The category is worth over £382m [IRI, Jan 2021]. YAZOO is the number one traditional flavoured milk brand, making it a must stock. We are the only brand in the category to offer both larger multi-serve and multi-pack formats, so our focus has been to offer value and relevancy to deliver for key shopper and consumer occasions through all formats. Convenience has seen strong growth this year, led entirely by local retailers which deliver 49% of brand sales [IRI, Apr 2021]. Out of Home has always been YAZOO’s traditional heartland so it has continued to be a massive priority for us, and despite challenging circumstances this past year, we remain the largest Traditional Flavoured Milk brand in the channel, with 33% share [IRI, Apr 2021].

WHAT ARE THE KEY TRENDS? Taste continues to be the number one reason why consumers buy flavoured milk products. Chocolate remains the most popular flavour with over 50% market share [IRI, Apr 2021], but for YAZOO, our strawberry flavour performs about as well as that. This year’s Limited-Edition Jaffalicious ChocOrange has gained strong traction since launch. Health credentials will always be a key driver and we’re always reminding shoppers about the goodness of dairy drinks. Take home has skyrocketed and sharing packs currently now account for over 30% of the category [IRI, Jan 2021]. Over the past six months, sharing packs have grown of 5.6% by value vs single serve, which has suffered 8.4% decline [IRI, Jan 2021]. YAZOO single serve still accounts for 64% brand share [IRI, Apr 2021], however recent growth has come through from the larger 1L pack format, gaining 2% brand share in convenience in the past.

WHAT’S NEW? Our fourth limited edition flavour, Jaffalicious Choc-Orange, launched this year. Previous limited editions have proved very popular and with the series delivering upwards of £7m [IRI, 2017-2020] incremental sales to the category. 26

SLR | JULY 2021

This year, we’ve also linked up again with Merlin Group to offer shoppers the chance to win two-for-one tickets to Thorpe Park and Alton Towers across our permanent and Limited-Edition flavours in individual and sharing size formats.

HOW WILL THE PANDEMIC AFFECT BRAND PERFORMANCE IN THE FUTURE? For us, the impact of Covid-19 has been twofold: on-the-go missions have been adversely affected, however there have been big upsides. With people spending more time at home, buyers are looking for brands that deliver as well in home as they do out of home. Household names have an opportunity here to maximise their reputations and see growth. Even with the change of occasions, we are still seeing growth as shoppers are more likely to try new variants and formats from brands they already know and trust. We predict take home packs will continue to dominate and on-the-go occasions will be slow to return. However, beyond this, we expect much of convenience-based consumption will return to normal.

HOW ARE YOU RESPONDING TO THE SUSTAINABILITY CHALLENGE? We recently transitioned from 20% to 100% rPET packaging across our 300ml and 400ml packs, which also feature easy peelable sleeves to make stripping and correct recycling even simpler. The move is expected to save over 32m kilograms of non-recycled plastic and has been finalised ahead of schedule – the end of 2021 – with the rest of the range due to follow next year.

AND FINALLY, WHAT ADVICE DO YOU HAVE FOR RETAILERS? Include sharing sizes of popular brands and products and move products into the chiller if you can. Position on-the-go formats front of store and at eye level, and dedicate space to both best-selling flavours and new launches from reliable brands. www.slrmag.co.uk

TOP SELLING MILLIONS FLAVOURS NOW IN

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Inside Business

Special Projects | InAction+ | Rockstar

KEY SOFT DRINK CATEGORY TRENDS

STIMULATING SALES

IN SCOTLAND WITH ROCKSTAR In the latest SLR InAction+ project, we work with Britvic and Broadway Convenience Store in Edinburgh to create further energy drinks sales opportunities with the hugely important Rockstar brand.

he national and local lockdowns have had a majo impact on shopping patterns in many product categories, but the spectacular recent growth of stimulant energy drinks has just kept

on going. Despite growth in both ‘drink later’ and ‘drink now’ formats (IRI), single serve sales continue to dominate the category, outpacing soft drinks as a whole with 11.6% growth (Nielsen). 28

SLR | JULY 2021

There has been a growth in demand for energy, especially while on-the-go. The past year has seen longer working hours, an increase in outdoor exercise and manual labourers still working. As restrictions ease, the focus is expected to return to impulse soft drinks purchases as consumers continue to seek out ‘pick me ups’. Stimulants are well-placed to benefit from this, as caffeinated energy drinks are now the number one singleserve drink in convenience (Nielsen).

ENERGY: Energy is one of the fastest growing reasons to choose a soft drink (Kantar), but shoppers buy energy drinks for a variety of reasons including both caffeinated stimulant drinks and caffeine-free ‘pick-me-ups’. ON-THE-GO VS TAKE-HOME: Although packs for drinking at home have grown five times faster than singles (Nielsen) during the pandemic, stimulants grew in both take home and on-the-go (IRI). With people likely to be on the move this summer, sales of on-thego options are expected to accelerate. VALUE FOR MONEY: Understandably, value for money is a key priority for many shoppers in the current climate. Rockstar is available in pricemarked packs for the majority of its range.

www.slrmag.co.uk

Rockstar | InAction+ | Special Projects

4-BAY

Inside Business

1-BAY

PLAN YOUR CHILLER To make the most of the energy drinks category, it’s crucial that retailers pay close attention to how they merchandise their range. Rockstar should be merchandised with other stimulant brands within the energy drinks category, blocked by variant within the leading brands you have on offer. If you have room for four lines from Rockstar then you should lead with the core range of Original and flavours: Q Q Q Q

Rockstar Original Punched Tropical Guava Xdurance Blueberry, Pomegranate & Acai Juiced Tropical, Orange & Passionfruit

2-BAY

These represent the must-stocks for retailers and are all available in both price-marked and plain packs in the popular big can (500ml) format, which has proven successful with energy drinkers, seeing +20.1% growth (IRI), as well as 4 x 500ml multipacks for take-home purchases. Also, look out for new Rockstar Original No Sugar – available from August in £1.19 PMP format – and, if you have space, extend your range with a number of additional Rockstar flavours to encourage new shoppers into the stimulants segment.

Following the acquisition by PepsiCo of Rockstar Energy last year, Britvic is now responsible for the brand in Great Britain, and the company is working with retailers to drive stimulant drinks sales even further. This offered us the perfect opportunity to partner with Britvic to help local retailers ensure that they continue to get every penny of sales and profit out of this enormously important category. To demonstrate the opportunity for further growth within on-the-go soft drinks and the stimulant market in particular, SLR and Britvic have joined forces to work with Premier retailers Dennis and Linda Williams of Broadway Convenience Store in Oxgangs, Edinburgh for a three-month project. The project will aim to continue the momentum of stimulant drinks as lockdown restrictions ease, and to provide valuable new insights on the category for Britvic and the store team. We will share our learnings as we go and hope to provide some useful insight and advice from the project which will be of interest and use to all local retailers across Scotland. “We are really excited to work closely with Dennis and Linda on this project in order www.slrmag.co.uk

to understand key insights and continue to fully immerse in what is still essentially a new brand for us at Britvic,” says Adrian Howe, Brand Manager at Rockstar. “We are looking forward to supporting retailers in Scotland by sharing this insight and key learnings so they too can increase their stimulant sales.” Dennis Williams comments: “Energy has long been a vitally important category for us and over the last year sales have grown significantly - but we are always

looking for ways to continue developing and progressing. So we are delighted to be able to work with Britvic and the huge Rockstar brand on the project to see how we can unlock further growth and, of course, share what we learn with other retailers across Scotland through the pages of SLR. “I’m particularly excited about the project because the recent major refit of the store means we have a lot more chilled drinks space available to us, as well as some additional space for ambient multipacks. We’re also excited to see how we can leverage the continued growth of our Deli offer which has grown beyond belief over the last year or so. Being able to work closely with Britvic and gain access to their knowledge and experience of both the wider category and of how energy is performing in stores across the UK is an exciting prospect.” Look out for next month’s issue of SLR for an update on the work carried out in-store with Dennis and Linda. JULY 2021 | SLR

Inside Business

SLR Rewards 2021

SLR AWARDS 2021: MEET THE JUDGES It’s almost time for the judging to begin for this year’s SLR Awards 2021 – and we are delighted to reveal our judging panel.

A Virtual Festival of Excellence

fter the tumultuous year that we’ve all lived through, it’s fantastic to be returning to some sort of normality and a huge highlight for the SLR team this year will be the fact that we can once again resume proper on-the-road judging for the SLR Awards. Our primary interest remains the safety and wellbeing of retailers, so the event will once again be held virtually. But with restrictions now relaxed, we will be able to personally visit every shortlisted store, something the judging team is thoroughly looking forward to. A small, exclusive live event will also be held in November for winners of this year’s Awards – and hopefully we will be able to return once more to a full scale live SLR Awards in 2022. In the meantime, we are delighted to reveal our judging panel for this year’s awards.

PART OF THE BESTWAY WHOLESALE FAMILY

Scottish Grocers’ Federation

SLR Rewards 2021

Inside Business

CHAIR: ANTONY BEGLEY

HELEN LYONS

DAVID REES

Antony launched SLR back in 2003 and has run the title for the past 17 years. SLR is Scotland’s only award-winning magazine in the sector, having won the PPA Business Magazine of the Year Award, among other accolades. Antony is also on the Scottish committee of GroceryAid.

Helen is the former Publishing Director of Independent Retail News (IRN) and TalkingRetail.com. She also managed the Retail Industry Awards and the Quality Food Awards at Emap.

David worked at William Reed Business Media for 20 years, spending the last 15 of these as Editor of Convenience Store magazine before it was taken online last year.

JAMIE BUCHANAN

SAM COLDBECK

TOM FENDER

Jamie has spent 33 years at senior management and Director level in Foodservices, Cash & Carry, Wholesale and Retail channels in Scotland. Overlapping with his retail career, he has spent 10 years as a Director for the Scottish Grocers Federation.

Samantha Coldbeck is co-owner of Wharfedale Premier Convenience, a busy Premier convenience store in Hull. A community retailer at heart, she also works closely with Tesco/Booker on the Premier Development Group.

PUBLISHING DIRECTOR, SLR

GO LOCAL PROGRAMME DIRECTOR, SGF

SALES & MARKETING DIRECTOR, SLR

RETAILER, WHARFEDALE PREMIER CONVENIENCE

EDITORIAL MANAGER, SLR

DEVELOPMENT DIRECTOR, TWC Tom has worked in the convenience and wholesale sectors for over 20 years. At TWC, he helps wholesalers and convenience retailers improve their performance through a better understanding of data.

BLAKE GLADMAN

LESLEY ANN GRAY

JOHN MURRAY

Blake has over 15 years’ experience delivering shopper and consumer insight. He started his career at Kantar before joining HIM in 2009. He left in 2018 to help KAM Media drive forward its expertise in delivering market-leading research products.

With over 30 years’ experience in the Scottish food and drink industry Lesley Ann has worked in roles across marketing, category management, new product development and in commercial positions for a number of businesses.

John founded the Highland Food & Drink Club to celebrate the great food and drink produced in the Highlands of Scotland. He also founder of a chain of Scottish convenience stores and served on the SGF’s executive committee.

CHRIS NOICE

KAREN PEATTIE

JON RONS

Chris joined ACS in October 2009 and is responsible for all of ACS’s external and internal communications, media relations and a growing research portfolio which includes the Local Shop Report. Chris is also an official spokesperson for ACS.

Karen, an honorary member of the SGF and contributor to SLR, is a highly respected freelance journalist, editor and PR consultant with almost 40 years’ experience. Specialising in the retail, wholesale, food & drink, and travel sectors, she is a recognised industry expert.

Jon has worked for almost 30 years in convenience retailing, wholesaling and shopper understanding. With vast experience of store development, store operations, buying and other support functions, he co-founded C-Store Collective to helps retailers grow sales.

PETER STEEL

DAVID VISICK

Peter spent 30 years with Glasgow-based field marketers McCurrach, sitting on the company’s operating board for 20 of these before heading up its Irish operation. Now semi-retired, he is actively involved with industry charity GroceryAid.

Formerly Deputy Editor of Convenience Store magazine, Visick joined FWD in 2010 as Director of Communications, a newly created role to help publicise the Federation’s work in promoting the interests of its members and their customers.

STRATEGY & INSIGHT DIRECTOR, KAM MEDIA

HEAD OF COMMUNICATIONS AND RESEARCH, ACS

JOINT CHAIRMAN, GROCERYAID SCOTTISH BRANCH

www.slrmag.co.uk

STRATEGIC INSIGHT DIRECTOR, KANTAR WORLDPANEL

FREELANCE JOURNALIST; SLR CONTRIBUTOR

DIRECTOR OF COMMUNICATIONS, FWD

FOUNDER & CVO, HIGHLAND FOOD & DRINK CLUB

CO-FOUNDER, C-STORE COLLECTIVE

EVENT: 27TH OCTOBER WINNERS CELEBRATION: NOVEMBER JULY 2021 | SLR

PART OF THE BESTWAY WHOLESALE FAMILY

Scottish Grocers’ Federation

Hawkhead Whisky Smoked | Producer Profile | Local Sourcing

Inside Business

BARREL BURNING SALT STARS ON A ROLL Glasgow-based smoked salt producer Hawkhead Whisky Smoked has recently added to its collection of award wins and repackaged its products to make them more accessible to the convenience retailing market. BY ANTONY BEGLEY

ith interest is locally, regionally and nationally sourced products arguably at an all time high in Scotland after the year that changed everything, there is a strong argument for growing your range of interesting, high quality Scottish products to meet this increased consumer demand. One company worth a look at is Hawkhead Whisky Smoked, a multi-award winning business that recently added another gong to its heaving mantelpiece by collecting a Scottish Retail Food & Drink Award. Additionally, the company has recently reformulated its packaging to both improve its sustainability credentials and allow it to significantly lower its

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price point, making it of even more interest to convenience retailers looking for something to add a little something special to their range. Using only aged whisky casks from Scottish distilleries in their smokery, Glasgow-based Hawkhead has created a range of unique and extremely tasty products. “I suppose it all really began when we were exhibiting at a BBC Good Food Show in 2018,” says Chris Perry-Jones, co-founder of Paisley-based Hawkhead Whisky Smoked. “At that point we had a range of smoked salt and cashew products but when we looked around the exhibition hall, we realised that we weren’t really doing anything that stood out for the crowd. There are a lot of smokeries in Scotland.”

As luck would have it, fate intervened, as Chris explains: “Shortly after that we were exhibiting at a whisky show, and for that event I had ordered some Scottish whisky barrels to burn in the smokery to make some products just for that show. That was the moment when we knew we were onto something.” Founded in 2017, the company had originally been called Hawkhead Kitchen and had set out in life as, essentially, a BBQ business. “I had been a chef in France then moved to Glasgow and ended up as Head Chef at Bar Soba, moving around the country to work at the chain’s various outlets across Scotland. I was doing silly hours and we decided that, if we were putting in so many hours and so much effort, we should JULY 2021 | SLR

1ST OCTOBER 2021 Allergens and Ingredients

Scottish Grocers’ Federation

Hawkhead Whisky Smoked | Producer Profile | Local Sourcing

Inside Business

really be doing it for our own benefit, so we set up Hawkhead Kitchen.” The initial plan was to focus on smoking salmon as well as producing a range of smoked cashews and salt. “We quickly realised that smoked salmon was a busy marketplace to be in, with an enormous amount of competition,” he says. “And we also began to realise that the salt and cashews, which were really just planned as a sideshow, were the products gaining most interest.

FINDING THE SWEET SPOT Which takes us, more or less, to the fateful whisky exhibition. “We had been smoking using oak up until that point,” says Chris. “But when we first tried the salt smoked with the whisky barrels, we knew straight away we’d found our USP. The richness and sweetness from the barrels gave the salt a flavour profile that was just sensational.” The company promptly rebranded as Hawkhead Whisky Smoked and has never looked back. An interesting element of the production process is what could be termed ‘barrel blending’, as Chris explains: “All of our barrels are Scottish whisky barrels but, obviously, depending upon what the barrels have been used for, they have very different characteristics. Barrels used to age Islay whiskies have completely different flavour profiles to barrels used in, say, Speyside. So, to guarantee a consistency of flavour in the end product, we blend barrels when we burn them.” Chris also decided to lift the smoked salt even further with the addition of black garlic which adds extra depth and complexity. The fruit of Chris’s efforts have been rewarded with no fewer than nine industry awards, including a Scottish Retail Food & Drink Award, and the company is going from strength to strength. It hasn’t all been plain sailing, however, as Chris readily admits: “The Covid pandemic had a huge impact on us but, in hindsight, it’s actually had a lot of positive effects for us. It caused huge problems, make no mistake. We launched a new catering range of products early last year for the first time – and within weeks there was no longer a catering industry to sell to! But the last year also allowed us to take a breath, take stock and properly audit every aspect of our business for the first time.”

RATIONAL THINKING One major consequence of that enforced pause was the decision to www.slrmag.co.uk

FOR MORE INFORMATION, VISIT WWW.WHISKYSMOKED.COM OR GIVE CHRIS A CALL ON 07762 042 145.

rationalise the company’s range to focus on the best-selling products and the ones with most potential. “I could produce new products every day of the week, and we had been doing that for a while,” he says, “but we decided over the last year to focus on the key range. So now we have three cashew products and three salt products and that’s where our focus is now.” A further consequence of having a lot of thinking time in 2020 was the decision to radically change the packaging of the salt range. “We had been using glass jars but, after doing a lot of research into more sustainable packaging, we have chosen to move to cardboard boxes with liners. It will have a dramatic impact on our carbon emissions; it reduces our total transportation fuel costs by two-thirds for instance. We used to sell 125g of salt in a glass jar with a total weight of

340g. We will now sell 80g of salt in a cardboard box with a total weight of just 91g. That has a major impact on our costs – and it also provides us with the additional benefit of being able to help retailers significantly reduce the cost of the product to consumers. Whereas it was around £5 a jar, it’s now £3.50. That should open up a whole new audience for us.” So successful have Hawkhead’s sustainability improvements been that Chris expects the company to be carbon negative by next year, a remarkable achievement. The company is on a high at the moment, having only recently launched a new commercial bulk range for the re-opening catering and hospitality industry and having secured great success in wholesale, notably through Cress. “It’s been a year of reflection,” concludes Chris, “but it has been a year full of opportunity too and I think it will ultimately prove to have been a very important year for us. We have a lot to look forward to – and we’re excited about sharing our Scottish Retail Food & Drink Award-winning product with a much wider range of retailers and consumers.” JULY 2021 | SLR

Hotlines

Product News & Media Watch

Oreo O’s Mondelez Oreo O’s has made its debut in the convenience and wholesale channels with a £3.99 price-marked 320g pack that is available now. The cereal comprises crunchy black cocoa hoops combined with crispy white vanilla flavoured discs and is targeted at adult shoppers who are looking for a unique treat, to enjoy at breakfast or as an in-between snack with milk. Since launching into grocery in November, Oreo O’s is now worth £3.3 million.

Mix of Minis Perfetti Van Melle Perfetti Van Melle has launched a new ‘Mix of Minis’ range of miniature formats across its Fruittella, Mentos and Chupa Chups brands. Available from wholesalers from 18 June, the new concept offers 200-piece cases of individually wrapped lines intended to be sold at 15p each or as part of a ‘4 for 50p’ promotion. Individual pieces contain as little as 38 calories.

Fox’s Glacier Moments Valeo Snack Foods Fox’s Glacier Moments (170g, RSP £1) is designed for grownups who want a premium treat. Two variants are available. Little Lifts offers Strawberry & Hibiscus; Peach & Passionfruit; Apple, Pear & Spearmint; and Lemon, Mint & Elderflower flavours. After Darks (also available as a 120g £1 PMP) features Decadent Banoffee; Cherry Bakewell Tart; Smooth Irish Cream; and Dark Fruits.

SLR | JULY 2021

Shoppers to choose new Cadbury Dairy Milk bar

Mondelez has unveiled three new limited-edition Cadbury Dairy Milk bars, created by the finalists of this year’s Cadbury Inventor competition. Roxy’s Cadbury Dairy Milk Fizzing Cherry, Josh’s Cadbury Dairy Milk Banoffee Nut Crumble, and Sophie’s Cadbury Dairy Milk No Frownie Brownie will now be put to the public vote. All three 110g bars RSP at £1.49 each and shoppers have until 5 September to pick their favourite, with the winner joining the Cadbury Dairy Milk range. To celebrate the launch, Cadbury has partnered with radio presenter Jordan North to teach the nation how to judge like a pro and put their new-found judging skills to the test. Pippa Rodgers, Cadbury Tablets Brand Manager at Cadbury, commented: “We couldn’t be more excited to share the three delicious Cadbury Dairy Milk

Skittles Pride Edition Mars Wrigley Limited-edition Skittles sharing packs have once again turned black and white as the brand gives up its rainbow colours to the LGBTQ+ community. The colourless packs are available now and will remain on shelf throughout the summer to coincide with scheduled Pride celebratory events. The Skittles Pride campaign is backed with a £500k+ spend that focuses on experiential initiatives and the promotion of togetherness.

flavours with the nation. It is time for us to put it to our experts, our shoppers, to ‘Be The Judge’ and decide what bar is worthy of returning to shelves next year!” Josh, 31-year-old father from Birmingham has created Cadbury Dairy Milk Banoffee Nut Crumble, comprised of Milk chocolate with banoffee pie-inspired fudge pieces golden almond caramel pieces and crunchy biscuits. Sophie, 19-year-old student from Scotland, said she couldn’t be more excited about her Cadbury Dairy Milk No Frownie Brownie which combines milk chocolate, gooey chocolate brownie chunks, golden salted caramel chips and crumbly biscuits. Roxy, a 34-year-old civil engineer, has created Cadbury Dairy Milk Fizzing Cherry which consists of Milk chocolate with soft chews of fruits cherry pieces, tingly cracking popping candy and crunchy biscuits.

Tyrrells PMPs KP Snackes KP Snacks has added three of the most popular flavours from its premium snack brand Tyrrells to its £1 price-marked pack range. Available now, the new Tyrrells £1 PMP 60g packs are available in three flavours: Lightly Salted, Sea Salt & Cider Vinegar, and Mature Cheddar & Chive. The KP Snacks £1 PMP range is currently outperforming the category at +13.5% and Tyrrells is growing at +12.9%.

New look Cadbury singles Mondelez Following the unveiling of a redesign for Cadbury at the beginning of this year, the new look has started rolling out across the brand’s singles range. The revamped bars feature new background patterns and brand wordmarks, as well as a product visual. The new look design features on best-selling Cadbury lines including Cadbury Twirl, Cadbury Wispa and Cadbury Boost, as well as Cadbury Flake, Cadbury Starbar and Cadbury Picnic.

www.slrmag.co.uk

Product News & Media Watch Butterkist Crunchy Orange Chocolate KP Snacks



Skittles Giants Crazy Sours Mars Wrigley

The latest Butterkist flavour bridges the gap between popcorn and chocolate confectionery, tapping into the big consumer craze for chocolate orange flavours. It is available now in 155g sharing packs with a £1.59 RSP. With popcorn sharing occasions growing at 21%, the launch looks well-positioned to drive growth in the popcorn category.

Yazoo Jaffalicious Choc-Orange FrieslandCampina

Skittles Giants Crazy Sours are three times the size of standard Skittles, have a soft chewy centre designed to strike taste buds with sourness and are suitable for a vegan or vegetarian diet. They are available in a 125g £1 PMP treat bag, a 141g value pouch (RSP £1) and 170g grocery pouch (RSP £1.49). The launch is supported with digital and traditional point of sale, as well as a digital media campaign.

Gold Leaf Carnival Edition Papers Imperial Tobacco

Building on its 400ml offering, Yazoo has launched its limited-edition Jaffalicious ChocOrange flavour in a one litre format with an RSP of £1.50, available now. With a shelf-life of up to nine months, the company says the product makes a strong addition to a store cupboard or pantry, ready to be transferred to the fridge as required.

New limited-edition papers are available in Gold Leaf 30g pouches until the end of September. A series of four carnival-themed designs rotate throughout the launch period. To help ensure its rolling tobacco blend stays fresher for longer, Imperial is also launching a new click and close feature for both the 30g (RSP £12.80) and 50g (RSP £21) Gold Leaf pouches, highlighted by an on-pack flash on the trade outer.

Hotlines

Up & Alpen Alpen has marked its 50th birthday with a brand relaunch. The £2m investment includes a new TV ad, pack design and website as part of its biggest campaign in recent years – ‘Up & Alpen’. The new ad features an energetic alpine ram, demonstrating how Alpen can give everyone the endurance to climb their own personal mountains.

It’s still on Lucozade Zero has followed up a recent packaging refresh, new flavour and new can format with a £2.5m multimedia campaign that includes radio, out-of-home, social media, ecommerce and in-store activities. The new push builds on Lucozade’s recently launched ‘It’s On’ campaign, which promotes the brand’s full range through a new TV ad.

Mix it, love it ‘Love the Mix,’ a new £2m campaign from ice cream brand Häagen-Dazs, encourages consumers to mix up their everyday and have more fun in life. The concept is a continuation of the brand’s 2020 platform ‘Don’t Hold Back’ and is supported by a three-month primetime TV spot and a digital presence across social media and video-on-demand.

Coke Kane Petits Filous Mess Free NAS General Mills Made with naturally sourced ingredients, the new No Added Sugar range (4 x 100g, RSP £2) comes in two fruity flavours – Raspberry & Apple and Banana & Apricot. The new SKUs contain just 4.3g and 4.6g of naturally occurring sugar respectively. They’re also a source of calcium and are fortified with vitamin D. The launch is supported by a six-figure marketing campaign.

Cadbury Caramilk Mondelez This Australian favourite is available now in cases of 26 x 80g tablets (RSP £1) and cases of 36 x 37g singles (RSP 69p). Both come in plain and price-marked packs. The new bars are made with a golden blend of smooth-textured caramelised white chocolate, sourced from 100% sustainable cocoa. The launch is supported with PR, social media and in-store activity. POS is also available.

England Captain Harry Kane unveiled his new side business ‘Harry Kane’s Canes’ in an ad-within-an-ad in CCEP’s new ‘Open That Coca-Cola’ Euro 2020 commercial. Marcus Rashford and Alex Oxlade-Chamberlain also appear to be promoting ‘side hustle’ businesses in the ad – for marker pens and socks respectively.

Président targets foodies Lactalis is supporting its French cheese brand Président with a new media campaign that runs until October. The campaign, which targets ABC1 foodies aged 40 – 65, is designed to encourage consumers to take things at a slower pace and make time to enjoy the ‘Good Life’. It runs across BBC Good Food, Delicious magazine and olive.

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

JULY 2021 | SLR

Feature

Tobacco

VALUE AND QUALITY KEY TO TOBACCO SUCCESS The pandemic has accelerated an existing trend that sees shoppers keener than ever to secure maximum value and minimum out-of-pocket spend – but they’re not keen to sacrifice quality.

or all the challenges it has faced over the years, and for all the doom and gloom that often seems to surround the category, tobacco remains a huge and extremely resilient category for local retailers in Scotland. “The UK Tobacco market is worth £2bn,” says Duncan Cunningham, UK Corporate Affairs Director at Imperial Tobacco & blu. That’s a chunk of change and means that it’s a category that retailers literally can’t afford to lose focus on. Like most categories over the last 18 months or so, it’s an evolving one, and like many other categories, the direction of travel is firmly towards the value end of the spectrum. “The category remains heavily price driven,” says Cunningham. “It’s a trend that we’ve seen developing in recent years and we’re also seeing continued moves towards more of a nicotine portfolio approach with adult smokers buying different RYO and factory made cigarettes (FMC) products to suit different occasions. In fact, [Imperial Tobacco] figures show a quarter of consumers are now dual smokers.” While many smokers may be experimenting with the nicotine products available across segments, shopper demand for value continues to dominate buying habits in tobacco overall. Cunningham says: “This is a trend we expect to continue and grow in 2021 and beyond. With this in mind, retailers must be well-equipped with a strong product range across all categories in order to cater for this trend and keep one eye on their sales so they can adapt their range to meet the needs of their customers.”

SLR | JULY 2021

In reality, that means many shoppers are down trading from premium brands to more value focused offerings. Needless to say, the kay manufacturers have been busy developing a refreshed range of products across both the RYO and FMC segments that offer the great value shoppers are looking for, but with the premium features they’ve become accustomed to.

RYO For many shoppers, the solution has been RYO. Imperial Tobacco estimates that 45% of all tobacco sales are now RYO – and sales are growing at 30%. In line with a growing demand for value, sales in the Economy RYO segment are also rising. “Lambert & Butler RYO benefits from 120 years of premium brand heritage and has become our fastest growing rolling tobacco brand,” says Cunningham. The range now includes an improved freshness seal, plus the addition of filter tips and high-quality papers. We’ve also launched limited-edition outer designs as part of the range exclusively for the independent channel to celebrate one year of Lambert & Butler RYO in the market, which are available to buy in both 30g and 50g formats with RSPs of £12.80 and £21.00 respectively.” Other recent innovations include the launch of JPS Players Easy Rolling Tobacco, a new blend of fine cut tobacco that offers an easier rolling experience, and the launch of Gold Leaf Carnival Edition Papers and an improved click and close pouch feature, two new offerings from the number one Traditional RYO brand in the economy sector. www.slrmag.co.uk

Feature

Tobacco

STERLING

R O L L I N G TO B ACCO

ESSENTIAL

FROM THE BRAND THAT

DELIVERS Stephane Berset, Head of Marketing at JTI UK

The new Sterling Rolling Tobacco Essential 30g, from the UK’s No.1 Value RYO brand1, offers a great value tobacco option, whilst staying true to Sterling’s reputable quality. It’s also the first Sterling Rolling product with a whole leaf blend, where less leaf waste is generated in its manufacture. Stock up to make the most of this brand and drive incremental sales.

.35

RRP 30G *

*RRP effective 09/04/21. You are, of course, at all times free to sell JTI’s products at whatever price you choose. 1. IRi Market Place, Volume Share, Total RYO/MYO, Total UK, over the last 12 months to Mar 2021 (based on slope calculation)

SLR | JULY 2021

Launching this month, the new limitededition papers will be available in Gold Leaf 30g pouches until the end of September with an RSP of £12.80 for the Gold Leaf 30g pouch including the limited-edition papers. Recently, JTI celebrated 30 years of Amber Leaf and 10 years as the UK’s No.1 RYO brand. The brand holds over a quarter of the RYO market and continues to generate good cash margin. Amber Leaf original is available in a 30g pouch, a 50g pouch and a 3-in1 box format. Each include hand stripped, fine cut Virginia blend tobacco, 100 premium quality cigarette papers and 77 filter tips. Alongside the original, the Amber Leaf range also includes the Blonde 30g Box, a smoother tasting version. Ross Hennessy, Head of Sales at JTI UK, says: “We are incredibly proud of Amber Leaf reaching these two major milestones in 2021. Since it was introduced 30 years ago, the brand has gone from strength to strength and we cannot thank retailers enough for helping retain its position as the No.1 RYO brand for the last 10 years. We’re looking forward to supporting retailers in the years to come with this iconic brand in the tobacco category.” Also good news for retailers was the recent announcement by JTI that it was repositioning its Kensitas Club Rolling Tobacco exclusively in Scotland with the lowest RSPs for a 3-in-1 rolling tobacco product in the UK. Kensitas Club Rolling Tobacco offers the same quality and convenient tobacco product in easy-to-use formats as previously sold, but with a better value price. “We know that for many existing adult smokers, price is a key factor when deciding what brand to purchase,” explains Hennessy. “By repositioning the Kensitas Club Rolling Tobacco range in Scotland, it

allows retailers to capitalise on the brand’s momentum and success over the past 100 years, as well as tap into the growing RYO segment. We’re confident that the price drop will provide Scottish retailers with an even more competitive product for existing adult smokers and drive incremental sales.”

FMC While RYO is leading the growth charge, cigarettes still account for the majority of tobacco sales with a 52.7% share of the market, according to Imperial Tobacco. The key trend here is also value for money and minimised out of pocket spend. “Our most recent FMC innovations include our new Embassy Signature range where everything is premium except the price,” says Cunningham. The Embassy Signature range launched with Gold and Silver variants with an RSP of just £9.50, plus Embassy Signature Gold in packs of 100 at an RSP of £47.50.

Embassy Signature Gold Superkings was next to join the line up as a straight swap for Embassy No.1 Red Superkings and the latest addition to the range is Embassy Signature New Crush featuring a unique cooling sensation filter.

LEAF WRAPPED Another trend about to fully burst into life is the leaf wrapped cigarillo category. Huge in America, the category has slowly been building momentum in the UK. Earlier this year JTI launched Sterling Dual Capsule Leaf Wrapped in a new www.slrmag.co.uk

STERLING

R O L L I N G TO B ACCO

ESSENTIAL

FROM THE

BRAND THAT

DELIVERS

.35

RRP* 30G

Roll your way. No papers or filters

Whole leaf blend

UK’s fastest growing tobacco brand**

*RRP effective 09/04/21. You are, of course, at all times free to sell JTI’s products at whatever price you choose. **IRi Market Place, Volume Share, Total RYO/MYO, Total UK, over the last 12 months to Mar 2021 (based on slope calculation)

Feature

Tobacco

20s format – an extension to the already successful king size cigarillo product, which is the bestselling and fastest growing cigarillo within the UK market [IRI, Dec 2020]. Hennessy comments: “The Sterling Dual Capsule Leaf Wrapped 10s range has gone from strength to strength since its launch, so we were pleased to be giving retailers even more choice for their customers. With this 20s extension, we expect the product to follow the same route as the 10s.” Alastair Williams, Country Director at Scandinavian Tobacco Group UK (STG UK), also sees a great opportunity for retailers in this area: “The last 18 months have seen the emergence of cigarillos which have proved a very popular addition, due to their flavour profile, convenience and low price point. “Our own Signature Action filter cigarillo is growing steadily in popularity and is currently on promotion offering the lowest price in the segment with an RSP of just £3.99 for a pack of 10.”

CIGARS

“We’ve all been through a very trying time of late, and many of us will be looking forward to a summer of celebration as restrictions ease and ‘normal life’ resumes, so for some adult smokers that may well include trading up to a larger format cigar so stock up and don’t miss out on those additional sales.” Williams also highlights the fact that the value trend has affected cigars just as it has affected RYO and cigarettes. “Value has been a consistent trend in cigars for quite some time which is evidenced by the success of our Moments Blue brand, which offers a quality smoke at a low price, and is now the second best-selling miniature cigar brand in both Scotland and the UK as a whole, after Signature Blue,” he says. “With the added impact of the pandemic on the economy for the foreseeable future, I would imagine this move towards value will only increase.” With that in mind, STG has just launched a new pack format for its Signature Red Filter brand, the UK’s best-selling aromatic filter cigar. The new pocket-friendly sized pack comes with the low out of pocket price of just £5.79. STG’s UK Brand Activation Manager Clara Maria Endresen comments: “We know consumers are increasingly looking for more compact and convenient formats so we anticipate this change will be well received, particularly at the new reduced price point. The ‘Filter and Flavour’ segment and in particular vanilla, grew approximately 8% between 20182020 so there is increasing demand for this type of cigar, and we recommend that retailers stock up to meet the expected demand.”

Very few segments of the tobacco category can claim to be in growth, but cigars is one of them. “The retail sales value of the cigar category in Scotland increased by 5.2% in March this year,” says Williams. A remarkable achievement, even if volumes with down very slightly by 0.2%. And it’s miniatures that continue to dominate the market accounting for nearly three quarters of all sales. STG itself accounts for 57% of all cigar sales and owns the top two brands in Scotland in Signature Blue and Moments Blue. But while miniatures account for the lion’s share of sales, Scotland does appear to be missing a trick on larger cigars for some reason, as Williams highlights: “I do want to flag a UKwide trend which isn’t yet being reflected up in Scotland and that is the growth of the medium / large cigar category, which is up 23.4% in value and 17.4% in volume in the last twelve months [IRI, May 2021]. “This is being led by our Henri Wintermans Half Corona brand, whose sales value has risen by over 25% in value terms, but this is not being seen north of the border and could well be a good opportunity for Scottish retailers to capitalise on. 42

SLR | JULY 2021

www.slrmag.co.uk

Feature

Face 2 Face | Tobacco

ACCESSORISE YOUR PROFITS With RYO tobacco still among the brightest performers in the tobacco category, there’s plenty of scope for retailers to boost their profits with high margin accessories, says Gavin Anderson of Republic Technologies. BY ANTONY BEGLEY

n a category like tobacco where margins are notoriously tight on most products, the opportunity to grab some extra high margin sales is one not to miss. That’s certainly the view of Gavin Anderson, Head of Sales at Republic Technologies (UK), the company behind cigarette paper brands like Swan, ZigZag and OCB, the fastest-growing mainstream paper brand in the UK [IRI, May 2021]. “With demand for RYO accessories at an all-time high, the quality, choice and value we offer is contributing to the strong growth of the sector,” says Anderson. Scotland’s tobacco accessories market is now worth almost £30m, with a YOY growth of 3.5% [IRI, May 2021], placing increased pressure on suppliers to innovate to make their mark in the category. For Anderson, it’s both the expansion of the RYO category itself and a wave of NPD that has helped trigger more growth in accessories. “The fact that people have access to a raft of NPD is helping to maintain really strong levels of demand in the category,” he says. Much of that NPD was sparked by last year’s menthol ban. “In February, Republic Technologies launched Swan Flavour Fusion Cards, available in two variants: Fresh Burst and Menthol,” says www.slrmag.co.uk

Anderson. “Building on the successful launch of our Swan Crushball filters last spring, our new Flavour Fusion Cards enable retailers to offer shoppers even more choice in flavour and format.” Another evolution in recent times has been the growing importance of environmental considerations to shoppers, with an increase in demand across all categories for more natural products, reduced packaging and removal of single-use plastics. “This has led to a surge in demand for category-boosting products such as OCB Virgin and OCB Organic Hemp, which are 100% vegan, unbleached papers and made using OCB natural gum which is sustainably sourced from African acacia trees,” explains Anderson. “Both are available in Papers and Slim & Tips formats and OCB is now the fastest-growing mainstream paper brand in the UK.” But it’s not just NPD that is helping Republic to “its best ever year” – and that’s on top of a record year last year. “We’ve been listening to retailers harder and more often”, says Anderson. “We’ve changed the

way we call on retailers and restructured the sales team with a stronger focus on Scotland. The structure of the team is also much clearer to our customers in Scotland. We’ve been hitting towns and cities across Scotland hard and that has helped us help retailers grow their sales, as well as driving up distribution. “We’ve also been holding trade days in cash and carry depots and we’ve been calling on wholesalers and multiple independents to ensure they’re up to speed with the latest developments in the category.” Some of that feedback the team have been getting from retailers has led to some interesting new ideas, like the creation of new attentiongrabbing clip strips. “Obviously we have different challenges in Scotland from the ones we face elsewhere in the UK, because of the nature of the display ban up here,” says Anderson. “But the clip strips have been hugely popular with retailers able to both merchandise utility and candle lighters on the shop floor without losing any sales space and flag up to customers that the store stocks all the accessories they’ll need.” So, there’s never been a better time to take a fresh look at your accessories range to make sure that you are ready to cash in on extra sales in a growing category. JULY 2021 | SLR

Feature

Bottled & Canned Water

HAVE YOU GOT THE BOTTLE? The current period of warm weather sends sales of soft drinks soaring – and bottled water is among the greatest beneficiaries, so keeping on top of your range is a must.

ottled water has been an interesting category in recent years. Sales have remained strong and increasing sustainability concerns have been successfully addressed by the major producers. Then Covid happened. Despite restrictions altering how people consume soft drinks and bottled water, value sales still reached £25m [Nielsen, May 2021] in the Scottish convenience channel. This is a strong indication that bottled water remains a crucial part of the soft drinks sector. The makeup of those sales has changed over the last 12 months, however, as Mike Buckland, Marketing Controller at Highland Spring, explains: “Over the last year, larger bottles and multipacks have driven the category as consumers move to the take home and ‘Drink Later’ formats. Drink later options, despite holding less value, still continue to see growth as lockdown restrictions ease, witnessing a growth of 33.7% [Nielsen, May 2021] in convenience. “Although smaller and single serve formats have been driving the category, as travel 44

SLR | JULY 2021

restrictions ease and consumers look to go on longer trips away, retailers should not ignore the importance of stocking larger pack formats.” Severine Hemms, Shopper Marketing Manager at Nestlé Waters, agrees: “We have seen a reduction in on-the-go or impulse purchases, and seen consumers shift to more planned trips to stores, leading to a greater basket spend [ACS, 2020] and increased focus on larger formats or multipacks as consumption occasions at home rose by 38% [Kantar, Mar 2020]. Almost 50% of UK shoppers used convenience stores more during the first lockdown last year [TWC, Cirkle, KAM, 2020] so with 2020 emphasising the importance of the convenience channel, 2021 presents retailers with a golden opportunity to retain these new shoppers.”

HOT SALES In more recent times, the welcome sight of that big orange circle in the sky has helped drive sales of all soft drinks, with bottled water being among the biggest beneficiaries. It’s often overlooked how big the water category is. “The

water segment continues to make up the biggest segment in the soft drinks category and accounts for 26% of all soft drink volume sales [IRI, Sep 2020],” says Hemms. “Buxton is a must-stock brand for retailers looking to optimise their water sales and encourage shoppers to drink water more regularly.” Buckland comments: “Single serve and smaller formats have been performing incredibly well as on-the-go occasions begin to return with Highland Spring witnessing a 92% growth in value sales for the 500ml single format alone [Nielsen, May 2021].” It’s worth noting that, despite strong growth in drink later, drink now remains the largest sub sector in Scottish convenience, recording value sales at £19m [Nielsen, May 2021]. At the other end of the format spectrum is Highland Spring’s relatively new 10-litre pack, its popularity a result of the good weather and the rise of staycations such as camping. “Over 30% of buyers have repurchased the 10-lite pack,” says Buckland, “bringing new and lapsed consumers into the category. It is www.slrmag.co.uk

Bottled & Canned Water

Highland Spring’s largest pack format and is something retailers should definitely consider when planning what to stock during the summer months.” According to Zenith, Highland Spring is still the number one water brand at total level, both within the plain and flavours category. Buckland comments: “On plain, Highland Spring is nearly a third (31.2%) bigger than nearest competitor Evian, and also has a higher household penetration vs. any other brand. But, like many industries, the bottled water sector has been hit by Covid and there has been a lot to learn and take away from the last 12 months.” Buckland’s advice to retailers is to be bold and bring to market on-trend and innovative products. A good example of his, he says, is flavoured sparkling water cans, which experienced 496% growth in May alone [Nielsen, May 2021], showing the rise in consumer demand for this product. At the end of March, Highland Spring launched a new range of flavoured sparkling cans – just in time for the summer season and lockdown restrictions easing. Available in three different flavours and at under 35 calories per can, the launch targets consumers looking for a healthier, or non-alcoholic, option during their increased outdoor gatherings and picnics.

Feature

“The water segment continues to make up the biggest segment in the soft drinks category and accounts for 26% of all soft drink volume sales.” SEVERINE HEMMS, NESTLÉ WATERS

The cans are available in the following flavours: Pear & Elderflower; Blackberry, Plum & Hibiscus; and Rhubarb & Ginger. Along the same line of thought, Hemms encourages retailers to stock San Pellegrino: “With shoppers looking to add some variety to their at-home meal occasions, we’ve also seen the sparkling water become the best performing segment within the water category. San Pellegrino, the number one plain sparkling water brand in convenience [IRI, Nov 2020], has helped to drive much of this growth, making it an important part of the water fixture in convenience stores.”

Our eco bottles are made from 100% recycled* plastic and are 100% recyclable

AVAILABLE IN STILL AND SPARKLING

*Bottle is 100% recycled plastic. Label and cap are not made from recycled plastic. Bottle, label and cap are 100% recyclable.

www.slrmag.co.uk

JULY 2021 | SLR

Feature

Crisps & Snacks

SHARING THE SUCCESS Despite the promised return to form of impulse snacks, it’s still sharing and larger format packs that are delivering the goods for retailers.

KP SNACKS TOP TIPS Q Must Stock Ranging: Stock a strong core that covers the top selling lines which will deliver category growth – 60% of sales go through the top 50 best sellers. Q Easy to shop: Blocking similar type products together such as ridged crisps will make it easier for your shoppers to find what they need – 45% of purchases are made in under 60 seconds. In addition, 79% of shoppers like commonly purchased products merchandised next to each-other so to maximise basket spend place crisps, snacks and nuts next to categories that shoppers buy together most frequently – for example, 44% of snacks shoppers will also buy soft drinks. Q Drive impulse: 38% of shoppers buy something from a secondary siting so use impactful branded display and POS like stackers and dump bins. Use PMPs and promo offers to create value.

SLR | JULY 2021

ith so many shoppers spending so much time at home over the last 18 months, it’s no surprise that the bagged snacks category has been performing for retailers. “Bagged snacks remain a vital driver of growth within convenience and demand shows no sign of slowing,” says Matt Collins, Trading Director at KP Snacks. “Since the beginning of the pandemic there has been a marked increase in savoury snacking occasions within the home, which were up 47% at the height of lockdown, with crisps, snacks and nuts (CSN) continuing to perform ahead of other impulse snacking categories such as biscuits and chocolate [Kantar, Apr 2020]. Local retailers have also grown in importance with more people shopping locally. Some 67% more people are choosing convenience for ‘main shop’ and 27% of people are expected to visit convenience stores more often post-lockdown [HIM 2020].” What does this mean for retailers? In a word: sharing. “In the last year, we have seen a significant

increase in multipacks and sharing format sales, with familiar, trusted and wellknown brands doing exceptionally well,” says Collins. “Strong familiar brands are driving individual segment growth and our diverse portfolio is currently growing at 5.5% [Nielsen, May 2021] whilst meeting a range of different need states.” Unsurprisingly, the number one CSN drive is taste. “At KP Snacks, we are in the business of making great tasting snacks that serve a number of customer and shopper occasions, across all snacking segments (crisps, snacks, nuts, popcorn), delivered in all formats (singles, multipacks, sharing) and up and down the value spectrum.” But it’s sharing where the action is at. The sharing segment is strong and growing. Worth over £1.3bn, the largest within CSN, it is currently experiencing growth of 7.9% [Nielsen, May 2021]. So if you want to maximise sales

of crisps and snacks, make sure you get your sharing and larger format range sorted. For Collins, the key trends coming down the line are a focus on healthy snacking, ‘together time’ as people spend more time at home, and a heightened importance in the role of PMPs in convenience as shoppers’ budgets are squeezed. His advice is clear: “We consider a number of our brands to be muststocks. McCoy’s alone is worth £132.8m [Nielsen, May 2021] and is the UK’s No.1 ridged crisp brand. Salt & Vinegar and Flame Grilled Steak are the No.1 and No.2 bestselling meal deal choices, and the launch of McCoy’s Fire Pit taps into the fastest growing CSN flavours of Spicy (+7.1%), Meaty (+5.8%) and BBQ (+4.5%) [Nielsen, Apr 2020]. The new range is available in Multipack at an RRP of £1.70, a 45g Grab Bag format with an RRP of 90p, and a 62.5g £1 PMP format. “We would also advise retailers to stock pop chips, Hula Hoops, KP Nuts, Tyrrells, and Butterkist.”

www.slrmag.co.uk

KP SNACKS BIGGEST EVER £1 PMP RANGE Even more variety from our most loved brands

NEW

*AC Nielsen, Value Sales, Total Coverage, MAT, w/e 24.04.21

**Nielsen MAT, Singles and Sharing combined in Total Coverage 27/02/21

£1 PMPs

BBQ BEEF BIG HOOPS -P* FASTEST SELLING £1 PM

UK’S NO.1 ‘BETTER FOR YOU’ BRAND**

UK'S NO.1 RIDGE CUT CRISP!*

UK’S NO.1 NUTS BRAND!*

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BEST SELLING FLAVOURS

CHECK OUT THE KP £1 PMP RANGE, GROWING +14.4% YOY!*

£1.25M

sales generated by our top retailer in 12 months (1)

17.6K

av. weekly delivery sales by top 10 stores in January (2)

£27.74

average basket spend vs £7.60 industry average (3)

Fully supported onboarding, sales ramp up and dedicated Account Manager to help you succeed call: 0333 900 1250 email: contact@snappyshopper.co.uk web: retailers.snappyshopper.co.uk

(1)

12 Months to 31st January 21 /

(2)

Sources: Lumina UK Convenience Market Report 2020 /

(3)

Sales W/C 31st January 21.

Feature

Nicotine Overview | Imperial Tobacco

DEMAND FOR VALUE DRIVES TOBACCO BUYING HABITS With a quarter of smokers now ‘dualists’, Imperial Tobacco advises retailers to make sure they are ready to capitalise on the trend and stock a range that meets the need of modern shoppers. BY DUNCAN CUNNINGHAM, UK CORPORATE AFFAIRS DIRECTOR AT IMPERIAL TOBACCO & BLU

trend we’ve seen developing in recent years is a move towards more of a nicotine portfolio with adult smokers buying different Roll Your Own (RYO) and Factory Made Cigarettes (FMC) products to suit different occasions. In fact, our estimates suggest a quarter of consumers are now dual smokers. While many smokers may be experimenting with the nicotine products available, shopper demand for value continues to drive buying habits in tobacco overall. This is a trend we expect to continue and grow in 2021 and beyond. To harness the sales opportunities this presents, retailers must be equipped with the right products and knowledge to help customers navigate the tobacco category.

RYO As a result of the continuing shift into RYO, the segment now accounts for 45% of tobacco sales with recent volume sales growing by 30%. Sales in the Economy RYO segment are also rising and Imperial is well positioned to help retailers tap into this trend with more brands in the economy segment than any other manufacturer. Our new JPS Players Easy Rolling Tobacco is an exciting new blend that offers an easier rolling experience and benefits from the brand recognition of one of the UK’s best-selling cigarette brands. The range is available to buy in 30g and 50g and priced at £11.95* and £19.60*, including a set of quality rolling papers.

ACCESSORIES This increasing consumer shift towards RYO products also presents new sales opportunities for tobacco-related accessories. Retailers should make sure they’re fully stocked at all times of filters, papers, lighters and other flavour-related innovations like Rizla Flavour Cards and Rizla Polar Blast Crushball filters. 50

SLR | JULY 2021

VALUE CIGARETTES While RYO is growing, FMC still accounts for the majority of tobacco sales with a 52.7% share of the market. Value for money remains a leading trend, with many seeking products offering the lowest out of pocket spend. Our most recent FMC innovations include our new Embassy Signature range where everything is premium except the price. The range launched with Gold and Silver variants available to buy at just £9.50*, plus Embassy Signature Gold in packs of 100 at £47.50*. Embassy Signature Gold Superkings was next to join the line up as a straight swap for Embassy No.1 Red Superkings and the latest addition is Embassy Signature New Crush which features a unique cooling sensation filter.

EDUCATION KEY Ensuring staff understand the different segments and respective products is arguably more important in tobacco than any other category. Shoppers have been largely reliant on the knowledge of staff ever since the display ban. Most smokers are brand loyal so many will know what they want to buy when they walk into the store. However, if their product of choice is out of stock, it can be quite an intimidating process choosing an alternative. Retailers need to ensure staff know what products are stocked and where they’re positioned on the gantry. If they can be armed with advice on what solutions they should offer if a product does go out of stock, this will go a long way to helping retain customers. It’s also crucial to make sure stock levels are maintained at all times, especially top sellers.

Retailers are free at all times to determine the selling price of their products.

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Feature

Nicotine Overview | Scandinavian Tobacco Group

CIGARS: THE GREAT PROFIT DRIVER Cigars offer a fantastic profit opportunity in the tobacco category and there’s plenty of sales growth to aim for, says Scandinavian Tobacco Group UK. BY ALASTAIR WILLIAMS, COUNTRY DIRECTOR AT SCANDINAVIAN TOBACCO GROUP UK (STG UK)

igars are an essential part of your tobacco gantry and a great driver of profit so ensure you are stocking the right products to get your tills ringing! Cigar performance in Scotland is pretty flat, showing a very slight volume decline of 0.2% in the last 12 weeks to 4.69 million cigars, but the retail sales value of the category increasing by 5.2% in the same period [IRI, Mar 2021]. It’s miniatures which dominate the market, accounting for nearly three quarters of all sales. Scandinavian Tobacco is of course the main player, responsible for over 57% of cigars sold, and we also have the top two brands in Scotland, with Signature Blue and Moments Blue. When it comes to trends in traditional cigars, I do want to flag a UK-wide trend which isn’t yet being reflected up in Scotland and that is the growth of the medium / large cigar category, which is up 23.4% in value and 17.4% in volume in the last 12 months. This is being led by our Henri Wintermans Half Corona brand, whose 52

SLR | JULY 2021

sales value has risen by over 25% in value terms, but this is not being seen north of the border and could well be a good opportunity for Scottish retailers. We’ve all been through a very trying time of late, and many of us will be looking forward to a summer of celebration as restrictions ease and ‘normal life’ resumes, so for some adult smokers that may well include trading up to a larger format cigar, so stock up and don’t miss out on those additional sales. Secondly, the last 18 months has seen the emergence of cigarillos which have proved a very popular addition, due to their flavour profile, convenience and low price point. The cigarillo segment is already worth over £64m a year and our Signature Action filter cigarillo is growing steadily in popularity. It’s currently on promotion, offering the lowest price in the segment with an RSP of just £3.99 for a pack of 10. Finally, value has been a consistent trend in Cigars for quite some time which is evidenced by the success of our Moments Blue brand,

which offers a quality smoke at a low price, and is now the second best-selling miniature cigar brand in both Scotland and the UK as a whole, after Signature Blue. Of course, with the added impact of the pandemic on the economy for the foreseeable future, I would imagine this move towards value will only increase. Retailers need to ensure they are stocking the right brands to meet consumer demand. But let’s not forget it is miniatures which are responsible for nearly three quarters of all cigars sales and are still very much the engine room of the category so ignore the top brands like Signature at your peril! In terms of ranging, it’s more important to stock the right range rather than a broad range. The top 10 cigar brands account for nearly 90% of sales. And as cigars are exempt from the plain packaging legislation, we recommend retailers stock them on the middle shelf of the gantry where they are visible. [Source: All figures IRI May 2021, unless otherwise stated.]

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UTC

LOBSTER DEBATE REACHES BOILING POINT

THE DAY THAT FOOTBALL TOOK A WRONG TURN ON THE WAY HOME... Despite outward appearances to the contrary, UTC prides himself on being an egalitarian, broad-minded man of the world. Except, of course, when it comes to watching England at the fitba. Having enjoyed the Scotland game immensely, he grew increasingly nervous as the matches passed and it looked like our English cousins might actually end up winning the damn thing. The ‘football’s coming home frenzy’ was reaching fever pitch, especially after England did a number on the Germans then beat Denmark with a dive from Raheem Sterling that Tom Daley would have been proud of, as this till receipt from a Londis store in Weymouth shows. It was either bizarre luck or a staff member with too much time on their hands. You choose. Whatever it was, Chiellini’s rugby tackle and the 17ft Italian goalie did the bizzo and we’ll be spared endless re-reruns of the match for the next 50 years. Time to dust off the Geoff Hurst footage once more.

SLR | JULY 2021

A staunch West coast working class type, the auld boy nonetheless has no qualms about the odd bit of culinary indulgence. Lobster, for instance. He’s mad for a bit of lobster. So he was concerned at a recent House of Lords proposal to ban boiling lobsters alive. Aside from the obvious question of what the honourable members of the House of Lords would now live on, he was also a bit miffed that Mrs UTC would no longer be able to turn her considerable capabilities in the kitchen to a wee lobster now and again. Granted, not many convenience stores tend to sell live lobsters. UTC’s local Premier store certainly doesn’t. But purely as a matter of interest, we thought you might be keen to learn about the new ban. The boiling lobster days may soon be over if shellfish campaigners have their way. Several of them, dressed up as crustaceans, gathered outside the House of Lords recently to encourage parliament to “recognise that crabs and lobsters can feel pain”. The auld boy’s comment about “being boiled alive would be nothing compared to the pain that would occur if he ever got his hands on that protester in the lobster suit” is perhaps best deleted from the record.

CURIOUS PARTNERSHIPS #241 As niche hook ups go, the latest one from whisky brand Macallan and luxury car brand Bentley takes a bit of beating. Some things naturally go together – ham and eggs, gin and tonic, beans and toast – but whisky and fancy motors? UTC readily admits that “he wouldn’t thank you for a Bentley”. He would, on the other hand, be most thankful for a bottle of Macallan. So his interest was piqued when he read about how the two brands had joined forces to, says the press release, “build on their rich heritage to develop distinctive collaborations and further their vision of a more sustainable future”. The old boy soon found himself wondering how a car that is lucky if it gets 18mpg going downhill can create a more sustainable future by partnering with a whisky company. The answer was probably in the rest of the release, but he’d lost interest by then. He could almost taste the Macallan, apparently.

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Source: Global Packaging Trends Report by Euromonitor International (2017)

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