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SGF Taking the Hassle out of Retailing Event l E-cigs l Summer of Sport l Cider 27716_SLR_A4 OnePounders ad MAY2016.indd 1 False Front.indd 1

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JUNE 2016 | ISSUE 158

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SHOPPER ENGAGEMENT

EXCLUSIVE

CTP 2016: UNLOCKING SALES IN SCOTLAND

SLR has exclusive access to him!’s 2016 Scottish CTP results – and brings them to you!

Velocity’s Andy Batt talks loyalty in 2016

SUMMER CIDER

Cashing in on warm weather

JOIN THE BOARD SGF seeks Exec applications

DATA FLOW

Woodlands shopper data steps up a gear

Keep up to date with the latest news at www.slrmag.co.uk Cover.indd 1

09/06/2016 12:49:35

JOIN US FOR A

2016

WE KNOW WE CAN RELY ON NISA FOR AVAILABILITY AND DELIVERY ACCURACY

“Our sales

“We were originally with Costcutter and when they decided to split with Nisa it was a case of who to stay with. Although our relationship was with Costcutter mainly, we knew what Nisa could deliver. That’s why we chose to go direct with them.

We’ve got to know all the staff at Nisa, including all the people on the ground and they’ve all given us a lot of support. We’ve been delighted with the support we’ve been getting, in fact. Nisa has been very active with us. It’s been really beneficial.

We knew we could rely on availability and delivery accuracy, which is so important in ensuring our customers always have the products they want, when they want them. We’ve got six stores so it is key for us that we can rely on Nisa to ensure they are always fully stocked and supplied.

The choice of Nisa over Costcutter wasn’t that difficult and is already proving to be the right one.”

have increased

41% since joining Nisa”

Franco Margiotta

MARGIOTTA FOOD & WINE, EDINBURGH

To find out why joining Nisa is as easy as 1-2-3 visit www.join-nisa.co.uk 10932_NISAtradePress_Margiotta_2016_A4_AW02.indd 1

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June 2016

Contents

Contents ISSUE 154

NEWS P6

P10

P12

P20 P22

New tobacco rules kick in as challenges rejected Uniform packaging rules for tobacco go ahead, despite being challenged by global manufacturing retailers. C-store numbers hold steady, says IGD Growth of UK c-stores remains stable, with growth in certain segments balanced with rationalisation in others. Financial services firms forced to make merchant service charges more transparent Draft guidance from the Payment Systems Regulator says companies in the UK will get increased transparency around card payment fees. Certas Energy joins SGF With 24 company-owned forecourts in Scotland, the new partnership will strengthen Certas Energy retail business. Co-op to return £100m a year back to members The annual payout comes as part of a major refresh which involves reviving the logo and reintroducing the members dividend by 2018. News Extra Bestway brings customer service to the fore A new customer satisfaction initiative aims to increase customer service. Product News Vimto launches new marketing campaign,and Muller partners with Gordon Benson. Off-trade News Kopparberg receives complaint, NHS says Scotland is a ‘nation of home drinkers’, and more from the drinks world.

INSIDE BUSINESS P26 2016 Rewards Winners Find out who won this year’s SLR rewards, and why. P30 2 Minutes of Your Time Andy Batt The man behind the Woodlands Reward Club discusses how technology has changed retail. P32 SGF Taking the Hassle Out of Retailing Event Held at RBS’s Global HQ in Gogarburn in Edinburgh, the event gave retailers access to over 25 suppliers. P34 Woodlands Local The news from SLR’s own store. P38 Hotlines The latest products on shelf. FEATURES P40 Crisps & Snacks Last year saw 85% of households buy into the sharing snacks category, which has transformed sales. P46 Cider Rivalling beer sales, cider is a bestseller in summer. P50 Summer Drinks One of the better known equations in the convenience industry is that when temperatures go up, soft drinks sales go up. P56 E-cigs The introduction of the new European Union Tobacco Product Directive will affect the marketing, production and sale of e-cigs. P60 Cereal Bars Retailers need to wake up to this entirely new category created by the rise of breakfast-on-the-go. There’s potential for good sales if you don’t get caught napping.

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ON THE COVER P16 SLR has exclusive access to the annual CTP from him!, which is arguably the most influential piece of research into the convenience market.

JUNE 2016 | SLR

09/06/2016 15:57:28

News TOBACCO Legal objection to plan packaging over-ruled

£67k? Paddle do nicely! GroceryAid’s 34th Windermere Row, sponsored by Mars, has raised over £67k for the charity. The event saw 24 teams take to Lake Windermere over the 10.5 mile challenge, cheered on by families and friends from the Miss Cumbria passenger vessel on the lake. The morning row saw the Tesco boat, led by GroceryAid Trustee Ruston Smith, claim victory with a new course record and fastest time of 1 hour and 54 minutes. In the afternoon row, PepsiCo proved the quickest team as they powered home in a time of 2 hours and 8 minutes.

Need help? Call GroceryAid Research from Mind shows that one in four people will experience a mental health problem in any given year and that by 2020 depression will be the second-most common cause of ill health worldwide.

Plain and simple: new tobacco rules kick in as challenges rejected Uniform packaging rules for tobacco will go ahead, despite being challenged by global tobacco manufacturing retailers. On 19th May, the High Court ruled that the tobacco industry had been unsuccessful in its legal challenge to the Standardised Packaging of Tobacco Products Regulations in the UK. The case was brought by four of the world’s biggest tobacco firms, Philip Morris International, British American Tobacco, Imperial Tobacco and Japan Tobacco International. But Mr Justice Green, who heard the case in December, dismissed all their grounds of challenge. Two of the companies have said they will appeal against the ruling, including JTI. The company has consistently said that plain packaging will not have the claimed effect on smoking rates.

The Government published the final Tobacco and Related Products Regulations on 22nd April and were passed into law by the EUTPD2 implementation date of 20th May 2016. The new rules include no longer being able to manufacture cigarette packs containing less than 20 sticks, roll-your-own tobacco pouches under 30g or packaging featuring price marked packs. It also means the final, year-long countdown to 20th May 2017 has begun. After this date, retailers will only be allowed to sell standardised packs which comply with the new legislation. The companies claimed the Standardised

Packaging of Tobacco Products Regulations 2015 would destroy their valuable intellectual property rights and render products indistinguishable from each other. Duncan Cunningham, Imperial Tobacco UK and Ireland’s Head of Corporate and Legal Affairs, commented: “Clearly, we are disappointed with the decision, as we believe our legal arguments are strong. It will take some time to decide as to whether there are grounds for appeal or not.” Daniel Sciamma, UK Managing Director of JTI, said his company would continue to challenge the legality of plain packaging.

GroceryAid is working to address this through the launch of a new programme providing insight, advice and actions for those with mental health problems. Working with SilverCloud this programme offers a personal, flexible and accessible online space to help with anxiety, stress, depression, eating disorders and chronic illness. It provides an anonymous, safe and secure space for users to learn and develop, and empowers them to manage their own mental and behavioural health.

Fire destroys Elie Deli The popular Elie Deli has suffered catastrophic fire damage. The fire broke out just before 11am on 20th May and spread to a flat above the shop. The roof of the building caved in and significant structural damage could be seen from the street. Fire crews from throughout Fife rushed to the scene, including engines and officers from Anstruther and Methil. Seven engines were in attendance at the blaze, which shut down the entire High Street for the

ENVIRONMENT Mars confirms carbon-neutral achievement

CONTACTLESS PAYMENT

Green chocolate from Mars

Costcutter Supermarkets Group rolls out Android Pay

Mars has boosted its green credentials significantly, with the news that its entire UK operation now runs on carbonneutral electricity. Eneco UK’s new, 20-turbine Moy Wind Farm (pictured), located just south of Inverness, will generate the equivalent of 100% of the electricity required to power all 12 Mars UK sites. Mars has committed to buying electricity through Eneco UK for the next decade. The power generated is equal to that used by 34,000 average UK households, or to make enough Maltesers to fill 166 Olympic-size swimming pools each year. The wind farm is the latest step on Mars’ journey towards making its global operations fully carbon-neutral by 2040. The deal follows the April 2014 launch of a large-scale wind farm in Mesquite Creek, Texas, which now generates the equivalent of 100% of the electricity required to power the company’s entire US operations. Mars has now successfully achieve its global 2015 goal to reduce greenhouse gas emissions from operations by 25% from a 2007 baseline. Barry Parkin, Chief Sustainability and Health & Wellbeing Officer, Mars Incorporated, said: “We’re not there yet, but we recognise all businesses have a responsibility to tackle climate change and we hope our partnership with Eneco will encourage other companies to take steps to reduce their own carbon footprint.”

Costcutter Supermarkets Group has announced that customers can now pay for their shopping in store using the latest contactless payment method, Android Pay. The group was one of the first independent retailers to offer contactless card payment to customers. The launch of Android Pay follows the roll out of Apple Pay, which was launched across the Group’s stores last year as part of a long term investment programme in new technology systems. With over 1,000 Android and Apple Pay enabled devices already installed across the group, Android Pay is now available to all Costcutter, Mace, Supershop, Kwiksave and Simply Fresh stores which operate Costcutter Supermarkets Group’s CPoS system. Dave Morris, IT Director for Costcutter Supermarkets Group, commented: “Being able to offer this latest technology complements the range of existing payment options and should lead to an overall increase in the use of contactless payment, which will in turn help reduce cash handling, queuing and associated costs.”

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

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News MARKET RESEARCH IGD data suggests local retailing outlet numbers remain consistent

C-store numbers hold steady, says IGD

Wrigley puts the smile back on children’s faces At this year’s National Smile Month — which kicked off on 16th May 2016 — Wrigley’s Extra launched its Smile Back Project, a campaign designed to educate families on the importance of

The number of convenience stores in the UK remains stable, with growth in certain segments balanced by rationalisation in others, according to the latest data from IGD Retail Analysis and William Reed Business Media. The total for 2016 sits at 50,095 – a rise of 1.1% from last year. Unaffiliated independents saw some growth, which is a significant reversal from recent years. Rather than new store openings, this growth is primarily the result of rationalisation in the symbol segment. A focus on increasing compliance and discipline has seen several symbol groups downgrade previous members; these stores now continue to trade on an unaffiliated basis. This also explains the fall in the

total number of symbol stores (-0.7%). However, there are still some notable elements of growth here, with Booker acquiring the Londis/ Budgens operation in September and reinforcing Premier as the single largest symbol fascia group in the market. Another key player, Spar, also had a successful year of store additions in 2015.

For the second year in a row the number of forecourt stores remains substantially unchanged, suggesting that the long decline in this segment may have bottomed out. However, the ownership structure of this segment continues to undergo significant change. The oil companies have disposed of more than 400 fuel retailing sites over the last year, with many acquired by fast-expanding independent dealer operations. Joanne Denney-Finch, Chief Executive, IGD, said: “Our figures demonstrate that growth in certain areas of the market over the last 12 months has been tempered by rationalisation in other segments. This has led to overall store numbers remaining stable.”

good oral health. This is the fourth year that Wrigley has been a platinum sponsor of National Smile Month, the UK’s largest and longest-running oral health campaign. For every pack of Extra Sugarfree gum sold in the UK from 23rd May to 16th July, Wrigley will make a donation to its chosen charity partner, Action for Children.

CJ Lang announces new Fresh Foods Manager CJ Lang has announced that Scott Potter is the new Fresh Foods Manager (Trading). Potter has been with the company for more than 22 years, and brings his knowledge and experience of fresh foods, warehousing and latterly planning to Trading. The

EUTPD2 SGF expresses alarm over illicit tobacco problems blighting trade

SGF ‘concerned’ over illicit trade The Scottish Grocers’ Federation has welcomed the statement from the Local Government Association (LGA) highlighting the seriousness of illicit tobacco in England. The LGA, the English equivalent of CoSLA, said the use of illegal tobacco was undermining efforts to stop smoking and that “illegal tobacco being sold cheaply through the black market by rogue traders is funding organised criminal gangs, damaging legitimate traders and robbing the tax payer of more than £2bn that could be spent on schools, hospitals and caring for the elderly”. The LGA also pointed to a series of cases studies including Durham Council’s trading standards team seizing 456,320 illicit cigarettes and a series of operations which had seized more than 708,000 illicit cigarettes and 567kg of RYO tobacco in East Lancashire. SGF is concerned that as plain packs begin to appear between now and the end of the sell through period in May 2017, the illicit trade in Scotland will show a marked increase. SGF Chief Executive Pete Cheema commented:

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“We urgently need an accurate benchmark for the scale of the problem in Scotland so that we can effectively chart any increase in illicit trade linked to plain packaging. It would be extremely useful if CoSLA would undertake this work with local trading standards. We need to understand any effect plan packs are having if we are to develop effective solutions to this problem in Scotland.” Giles Roca, Director General of the Tobacco Manufacturers’ Association, said the only beneficiaries of this regulation will be the black market traders, while consumers, retailers and the public finances “will all suffer.” “Children do not get cigarettes from high street retailers. The black market operates from vans, pubs, street sellers and increasingly the internet. By reducing product choice in shops this measure will host the black market, since only the black market will continue to offer small packs and flavoured tobacco.” HMRC estimates that the cost of duty lost by the UK Treasury to the illicit trade in tobacco is at least £2bn per annum.

continuing development of day to day fresh food categories will be Potter’s focus. He took up his new role on 2nd May.

Stores hit Lotto jackpot Camelot has set a new National Lottery sales record of £7,595m for the 2015/16 financial year, an increase of £317m on the previous year. Accounting for around 80% of all sales (over £6bn last year), retail remains the largest National Lottery sales channel – with independents making up the majority of outlets. Camelot’s retail partners earned over £333m in sales commission in 2015/16 – over £7,000, on average, per store. James Pearson, Camelot’s Head of Retail Channel, commented: “We’d like to congratulate and thank our retail partners and their customers for their vital role in this achievement.” The figure raised for good causes since the lottery’s launch in 1994 has now passed the £35bn mark.

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News RESEARCH Mixed news for retail sector in latest SRC data

Unilever’s Retail Advisory Panel offers lwage advice Be creative about how you tackle the impact of the living wage — that’s the advice of the seven expert retailers who make up the Retailer Advisory Panel of Partners for Growth, Unilever’s award-winning support programme for smaller independent convenience stores. The Retailer Advisory Panel members say that the introduction of the national living wage of £7.20 an hour for workers aged 25 and over has increased their running costs by at least 10%.

Ayrshire family butcher secures £750k Co-op deal ‘We hae meat’, an Ayrshirebased family butcher business, is toasting further success following a £750K range expansion with Co-op, creating six new jobs. The deal will see nine new lines listed in over 300 Co-op stores across Scotland. ‘We hae meat’ first began working with the Co-op in 2013 with the introduction

Footfall slumps as vacancy rate improves The number of empty shops in Scotland fell last month, with the SRC/Springboard Footfall and Vacancies Monitor reporting a vacancy of rate of 8.4% for April. The rate for January stood at 9.1%. This welcome news was offset by a third successive month of declining shopper footfall numbers. April saw a drop of -6.2% compared to the same period last year. The downwards trend is gaining momentum, with footfall tumbling last month at a faster rate than over the past quarter and also the last 12 months. David Lonsdale, Director, Scottish Retail Consortium said shoppers were remaining cautious in a time

of “significant tumult” for the retail industry. “The Holyrood Parliament now exerts significant influence

over take home pay and the cost of living and it remains to be seen what impact the planned changes to council tax and devolved income tax next year will have on disposable incomes and consumer confidence going forward.” Diane Wehrle, Marketing and Insights Director, Springboard, agreed: “The rise in unemployment and economic uncertainty in this pre-EU referendum period has undoubtedly adversely impacted consumer activity. We know that cuts in retail spending are the first line of defence against threats to household budgets when consumer confidence is knocked.”

INDUSTRY AWARDS CTP winners unveiled

Convenience Tracking Program winners announced This year’s winners of him!’s Convenience Tracking Program (CTP) Awards have been announced. The CTP Awards have the unique distinction of being the only awards that are voted for by shoppers. him! research & consulting speak to 20,000 shoppers faceto-face in convenience stores across the UK during the process of carrying out the annual CTP survey. Shoppers are canvassed during this period and their

votes collated and counted to sort out the CTP winners each year. Imperial Tobacco won the Best Supplier for Sales Force Effectiveness for the second year in a row; Nisa Retail scooped the awards for Best Symbol Retailer and Best Convenience Retailer for Food To Go; the Co-operative won the Best Managed and Best Overall categories; and McColls won the Services category.

of the brand’s breakfast range. The company, run by husband and wife team, Alex and Carlyn Paton, employs a growing workforce of 61 staff, all of whom are local to the Ayrshire area.

Distribution app delivers Nisa Retail has announced a 20% reduction in distribution related calls to its helpdesk just seven weeks after launching its new delivery app. At the time of Nisa’s delivery app launch in March, over 20% of calls logged with the helpdesk related to the estimated time of arrival for deliveries and the new App looked to reduce the number of calls of that nature. In the first week alone the App achieved 1,000 hits and in the weeks that followed that has risen to almost 5,000 hits, marking a dramatic fall in the number of associated calls into the helpdesk, freeing staff to handle other enquiries and assist

MERCHANT SERVICES

Financial services firms to be forced to make merchant service charges more transparent Companies operating in the UK are set to get improved transparency around card payment fees, following draft guidance published last month by the Payment Systems Regulator (PSR). The draft guidance sets out how the regulator will monitor and enforce newer elements of the EU Interchange Fee Regulation (IFR) which come into effect this month. It explains that acquirers — companies that process card transactions on behalf of merchants — must clarify what costs make up the fee for each transaction, known as the Merchant Services Charge (MSC). The MSC essentially packages up several costs charged for each transaction and passes them onto the merchant in one fee. However, acquirers are not currently required to explain to a merchant what then makes up this charge. Hannah Nixon, Managing Director of the PSR, said: “The lack of clarity as to what is included in the merchant service charge means that companies find it harder to negotiate on fees and are less likely to see reduced costs passed on to

them. In turn, merchants cannot then pass these savings to their customers.” The draft guidance follows the PSR’s final guidance on the first phase of IFR that were in force by December 2015. Interchange fees charged by UK card schemes (for example, MasterCard and Visa) are now capped in the UK at 0.2% for debit cards, and 0.3% for credit cards. Traditionally the merchant’s acquirer passes the cost of the interchange fee on to the merchant. The new cap means the average credit card interchange fee has fallen by around 70%.

a greater number of retailers into the bargain. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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News INDUSTRY BODIES SGF members list continues to grow as energy giant signs up

Certas Energy joins SGF Certas Energy has announced a partnership with the SGF as it looks to further strengthen its retail business. With a Scottish network of 24 company-owned forecourts, convenience stores have become a significant part of the Certas Energy retail portfolio. The company recognises the benefits of working more closely with the major symbol groups and the most successful independent retailers to increase knowledge and refine best practices. “Being involved with the SGF will enable us to gain invaluable knowledge across a wide range of areas including new technologies, health and safety and security,” said Colin Levy, Retail Operations

Manager, Certas Energy. “This will not only benefit our own forecourt operation but allow us to share best practices and market intelligence with Gulf Dealers across the UK.” SGF currently has a membership of over 3,000 stores. Membership includes all the major symbol groups and co-ops currently operating in Scotland. As part of the new agreement, all of Certas Energy’s 24 forecourts will become SGF members. “We know how important forecourt retailing is to the future of the independent convenience store industry in Scotland,” explained Pete Cheema, Chief Executive, SGF. “We are delighted to launch this

highly innovative partnership with Certas Energy and we look forward to welcoming our new forecourt retailing colleagues on board.” Certas Energy is the largest independent fuel and lubricant distributor in the UK, serving 1,200 service stations including over 500 Gulf branded forecourts.

Dip in Scottish retail sales The total value of retail sales in Scotland dipped in April, declining by 1.5%. David Lonsdale, Director, Scottish Retail Consortium said: “Grocery sales, whilst down, were the best performing category and were pretty much in line with recent months and indeed a touch better than over the past year as a whole. Customers remain cashconscious and retail spending is fragile, perhaps weighed down by talk over recent weeks of higher taxes on wages and for council services.”

One Stop goes fresh One Stop has launched a new fresh range across its stores nationwide bringing in 85 new lines with a focus on fresh meat, produce and ready

QUEEN’S SPEECH Little of interest for retailers, says NFRN

Queen’s speech lacks measures to help retailers, says NFRN The NFRN is disappointed that measures that would have tackled rising incidents of retail crime and the increasing costs of running small stores were missing from the Queen’s Speech last month. The NFRN has repeatedly called for the government to introduce a specific crime to protect shop workers in a public facing role as several recent crime surveys, including the BRC Retail Crime Survey 2015 and USDAWs ‘Freedom from Fear’ campaign, have revealed that, on average, 241 shop workers are assaulted or abused every single day. NFRN Chief Executive Paul Baxter said: “Independent retailers would have liked to have seen measures announced in the Queen’s Speech to combat the significant rise in retail crime, in particular violence against shop workers. We are

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disappointed this wasn’t the case. “It is also discouraging that there was no mention of any measures to protect or assist businesses with the ever increasing cost of running their business. Last month saw the introduction of the National Living Wage, while auto pension enrolment is adding further costs to already hard-pressed shopkeepers. “The NFRN has repeatedly called for the government to reconsider the rate of the living wage and minimum wage rises and to understand the financial strains that micro businesses are facing.” The NFRN says it will continue its campaign for a specific offence of assaulting and abusing public-facing shop workers and will be meeting with Home Office crime advisors, along with the newly elected Police and Crime Commissioners to tackle this problem.

INDUSTRY CHARITY

meals. It has also invested in

Steve Barnes to replace Gillian Barker as Director General at GroceryAid

permanently reducing prices to

Steve Barnes, Commercial and Membership Director at the Food & Drink Federation (FDF), has been appointed the new Director General of GroceryAid and will officially start in September 2016. Barnes has spent his entire career in the grocery industry. He replaces Gillian Barker who has been Director General for the last 14 years and who will be retiring at the end of November 2016. Barnes started his career with Safeway, Presto and Lo-Cost stores before spending 17 years at IGD, 12 as Business Director. His last four years have been spent as Commercial and Membership Director at the industry’s largest trade association, the Food and Drink Federation. Barnes said: “This is a hugely exciting role to take on in the grocery arena. I am privileged and humbled to inherit a fantastic team in a supportive industry to serve the beneficiaries of GroceryAid. The assistance given from the industry to those in need is inspiring and I am delighted to have been given the opportunity.” Gillian Barker said: “I am delighted Steve has been appointed as my successor. I am more than confident that GroceryAid will continue to support our industry colleagues under his stewardship.”

been upgraded and now offers

give customers better value for money, brought to life as part of its ‘price drop’ campaign. The lunchtime meal deal has hundreds of choices and improved value for money.

Mackie’s in sponsorship with SECC Mackie’s has entered an exclusive sponsorship agreement with the Scottish Exhibition and Conference Centre (SECC) making it the official crisps partner for the SECC and The SSE Hydro. The three-year deal will see Mackie’s Crisps available throughout the venues. Five of Mackie’s top-selling flavours have been selected for the venues – Sea Salt, Mature Cheddar & Onion, Sea Salt & Vinegar, Flamegrilled Aberdeen Angus and Haggis & Cracked Black Pepper – and these will be available in 150g packs for visitors to purchase. Rebecca Russell, Global Brand Manager at Mackie’s at Taypack, said: “These venues are the ideal location for us to promote our world class range of premium Scottish crisps.”

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News FORECOURTS Independent operator announces high profile appointment

MFG hires ex-Tesco Chief as Retail Director Q Booker has revealed a 1.9% decline in full year total likefor-like sales, but an 11% rise in pre-tax profits. Like-for-like sales to retailers decreased by 2.2% including tobacco, and by 0.3% excluding tobacco. The wholesaler attributed the sales decrease to the aftermath of the tobacco display ban, the new drink-drive laws in Scotland and

Independent forecourt operator Motor Fuel Group (MFG) has a new Retail Director in the shape of former Tesco boss Richard Baker. Following a 37-year stint at the mult, which saw him rise from part-timer to oversee its 800 UK superstores, Baker has spent the last year in the US working on a business transformation project for pharmacy giant Walgreens. MFG is looking to strengthen its retail offering and William Bannister,

the Group’s CEO, views Baker as a key appointment. “In this new role Richard will be responsible for the retail relationships with suppliers and driving the performance of sites while refining our retail, customer service and product proposition.” “This is a key appointment for us as MFG drives ahead with strengthening its retail offering. In this new role Richard will be responsible for the retail relationships with suppliers

and driving the performance of sites while refining our retail, customer service and product proposition.”

bad weather. CO-OPERATIVES Co-op returns to old values with new look and new dividenc

Q Total retail spending for May increased by 1.4% compared to a year ago, according to the British Retail Consortium KPMG Survey. Like-for-like sales rose by 0.5% last month. The sales increase follows two flat months for March and April. Q Nisa’s recent Wine Festival initiative generated £1.2m in additional sales, with a 66% increase in sales of wines featured in April’s three-week long event. The group said the event was designed to help its members drive additional sales with competitive pricing on a wide selection of wines, whilst also encouraging cross-category purchasing using supporting tasting notes and food matching recommendations. Q The British Retail Consortium says food sales have experienced their fastest growth since October, rising 0.3% on the year in total terms, which does not adjust for the effect of new store openings. The BRC said sales were down in like-for-like terms, but it would not say by how much. BRC’s Chief Executive, Helen Dickinson, said: “With signs that the UK’s economy is slowing it’s unlikely that this is the beginning of a complete reversal of fortunes. The uncertain outlook means that customers will remain cautious, therefore we expect sales figures to remain volatile

Co-op to return £100m a year back to members The Co-operative has unveiled plans to bring back an annual payout for its millions of members. The group suspended the dividend in 2014 when it posted huge losses. As part of a major refresh, which also involves reviving its 1960s blue clover logo, the Co-op now plans to reintroduce the members’ dividend by 2018. The new benefits were announced at the group’s AGM in Manchester. Members will receive a 5% reward for any purchases they make of

Co-op own brand products and services, with an additional 1% directly benefitting local causes. Co-op chief executive Richard Pennycook said: “This is what the Co-op is all about. Big business is often accused of taking money out of communities – we are putting it back in as we champion a better way of doing business for our members and their communities. “Our intention is to return to paying a dividend again, but we also want to make the rewards for members who trade with the Co-op more meaningful and community focused.” Over the next five years, the Co-op is aiming to recruit one million new members and have 50% of sales across its businesses coming from Co-op members. Within the food business, this currently stands at 25%. The group is also planning to return an additional £3 million in benefits to Fairtrade producer communities by extending its sourcing commitments, and to make digital work for the business and members by seeking new digital opportunities to cooperate. More than eight million people have a Co-op members card, although about a third of them do not actively use their membership.

FINANCE

New fiver launched A new £5 note that will go into circulation in September this year has been unveiled. All retailers need to prepare. The new £5 note will be issued on 13th September and by January, around half of the paper £5 notes will have been replaced with polymer £5 notes. The new paper £5 note will be withdrawn from circulation in May 2017. The new £5, £10 and £20 notes will be printed on polymer, a thin and flexible plastic material. This means the new notes will be cleaner, safer and stronger than paper notes. The new notes will be around 15% smaller than the current paper notes but will retain the traditional look of existing notes, with a portrait of the Queen on the front and historic characters on the back. The polymer composition of the banknote has been chosen for its durability, environmental friendliness, and counterfeitresistance qualities. Machines that handle cash need to be trained to recognise the new notes, and free training materials are available from the Bank of England. The launch, held at Winston Churchill’s ancestral home on 2nd June, sets to herald what will be a new era for UK banknotes.

for the time being.” KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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W E N D L O B E H T M A E B M I J F O K O LO Jim Beam, the world’s #1 bourbon has a brand new look. From June 2016 Jim Beam will feature on TV, driving brand awareness.

New £15.99 Price Marked Pack Now available to help drive your sales.

M A KE HISTO R

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16/05/2016 16:00

News Extra

Customer Service | Bestway

NewsExtra GROW SUMMER SALES WITH SOFT DRINKS – P50 SERVICE Bestway launches new customer satisfaction initiative

Convenience Matters with the SGF Last year we gave our annual study tour a major overhaul. We wanted to give it more of a structure, to make it more relevant and to make sure that there was real learning at the end of it. Professor Leigh Sparks helped to design the day and facilitated a session after the tour to bring out all the learning points. The tour built on the theme of competition that we had been developing in 2015 and focused on the big discounters. It was a bit of an undercover operation in that we didn’t really have permission to visit the stores but this was not too much of a problem until late in the day when one eagleeyed manager finally became suspicious about the teams of people with clipboards roaming through his premises. This year we are going to continue to develop the competition theme with a geographical focus in the Scottish borders, looking at how different phases of competition have impacted on the towns of Hawick and Galashiels, and how independent retailers have responded. Like last year, Professor Sparks is fully on board and we have also widened the scope of the partners involved by inviting Scotland’s Towns Partnership to input into the design and delivery of the tour. We will also aim to bring in some new elements to the tour. For example, the new Borders Railway was intended to boost the local economy, but is it the case that it might just be taking people from Hawick and Gala to shop in Edinburgh rather than the other way round? The study tour is free for retailers and a great learning experience, so please put the 8th September in your diary now.

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Bestway brings customer service to the fore

A new customer satisfaction initiative has been launched by Bestway in a drive to increase customer service for its retail and catering customers. An independent research company will be interviewing 60 customers from each depot every quarter across a range of nine performance indicators from car parks to product availability. Additionally, customers will be asked to assign a score based on whether they would recommend their local depot to other customers which will then be used as a measure to reward depots for their efforts. The depots in each of the company’s six geographical regions with the highest improvement in their recommendation score over the previous quarter will be rewarded with each depot member receiving a bonus of £120. Younus Sheikh, Managing Director of Bestway Wholesale, said: “We want to make sure that each customer is treated as a person rather than just a number. That’s why every member in each winning depot – from general manager to shelf picker to delivery driver – will receive £120 as a reward for making the customer journey more efficient and pleasurable”. The £250K investment in raising customer service levels is part of the company’s 40th anniversary celebrations in moving the company forward to ensure that, throughout the company,

each individual is totally focused on driving the company’s values and its commitment to customers. Bestway Brighton Depot Manager, Fida Hussain, said: “Price will always be a prime motivator for customers but service is equally important. Commercially, it is impractical to continue to reduce prices but everyone loves to feel important. As a wholesaler we are working on wafer-thin margins so we have to look at other ways to connect with customers. Bestway has a long history of looking after its staff and customers and I am delighted the company has introduced the new Customer Satisfaction initiative as it will help motivate staff to further engage with customers.” The first survey was undertaken in October last year to set benchmarks for each depot with the average recommendation score of 87%. A further survey was conducted in January with the six most improved depots winning the cash bonuses for all staff members. Sheikh added: “Over the years, the Bestway and Batleys businesses have been built on the relationships we have with our customers. However, we believe that there is much more we can do to offer customers the best possible service and shopping experience. Customer Satisfaction will now be a key barometer on how we judge and reward depot performance.” www.slrmag.co.uk

09/06/2016 15:34:57

Cover Story

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CTP Results 2016: Scotland

www.slrmag.co.uk

07/06/2016 16:19:32

Comment

INNOVATION SHINES AT SLR REWARDS There’s no doubt that the on-the-road judging for the SLR Rewards is a tough and exhausting task every year – the two main judges cover around 2,500 miles each in three weeks – but there’s also no question that it’s one of the most enlightening periods of my year every year. At no other time do I get the chance to see 30 or more stores in just a few weeks and have a chat with dozens of retailers to find out what they’re up to, what they’re trying, what’s working and what’s not. I will also admit that in the last couple of years I’ve made no bones about the fact that I take a wee notebook with me during the judging to jot down any good ideas that I find that I can take back and implement in Woodlands Local, our own store in Falkirk. But before you cry foul, just remember that, at the end of that day, that’s precisely the reason we hold the SLR Rewards in the first place! To unearth great ideas and clever concepts then share them among the wider SLR readership. I just take that one step further by pinching ideas first-hand for a few weeks! My most abiding memories of this year’s mammoth judging session however can be summed up in the phrase ‘extreme innovation’. So many stores I visited weren’t just trying some new merchandising solutions or new ranging plans – they were trying entirely new and hugely ambitious concepts. The Euro Garages Lomondgate Spar is the most obvious example. A purpose-built semi-industrial New York warehouse-looking newbuild, it houses a fully-fledged Greggs and a full Subway as well as a Starbucks self-serve island I’ve never seen before. It is next generation thinking and there’s no half measures involved. New Scottish Local Retailer of the Year Harris Aslam’s store in Markinch also abounds with creativity and fresh socially responsible ideas; Omar Nasir’s LED screen tobacco vending machine gantry in Motherwell is simply brilliant; Jackie Sinclair’s store on Sanday (by Orkney) is a community project on a scale I’ve never seen before; at least a quarter of all the stores I visited had a Costa machine…..I could go on. You get the picture. Long story short, there is clearly no shortage of commitment or creativity in our sector. The hard work is just as evident as before. It’s just what local retailers do. But it’s the smart thinking that characterised the judging for me this year, and that’s great news. I have a very strong feeling that it’s thinking smarter and not just working harder that will be the difference between success and failure in our industry in the years to come. Three weeks of travelling hell it might have been, but in that time I caught far more real glimpses of brilliance in this industry than I’d expected. I can hardly wait for next year’s SLR Rewards to roll around.

EDITORIAL Publishing Director Antony Begley 0141 222 5380 | abegley@55north.com Editoral Assistant Émer O’Toole 0141 222 5387 | eotoole@55north.com Web Editor Findlay Stein 0141 222 5389 | fstein@55north.com

ADVERTISING Advertising Manager Susan Dignon 0141 222 5384 | sdignon@55north.com Special Project Sales Manager Donald Stephenson 0141 222 5387 | dstephenson@55north.com

DESIGN Senior Designer Richard Chaudhry 0141 222 5300 | rchaudhry@55north.com Designer Lisa Deakin 0141 222 5388 | ldeakin@55north.com

CIRCULATION & SUBSCRIPTIONS Events & Operations Manager Cara Begley 0141 222 5381 | cbegley@55north.com Events & Operations Assistant Chloe Buchanan 0141 222 5383 | cbuchanan@55north.com Scottish Local Retailer is distributed free to qualifying readers. For a registration card, call 0141 222 5381. Other readers may obtain copies by annual subscription at £50 (UK), £62 (Europe airmail), £99 (Worldwide airmail). 55 North Ltd, Waterloo Chambers, 19 Waterloo Street, Glasgow, G2 6AY Tel: 0141 22 22 100 Fax: 0141 22 22 177 Website: www.55north.com Twitter: www.twitter.com/slrmag DISCLAIMER The publisher cannot accept responsibility for any unsolicited material lost or damaged in the post. All text and layout is the copyright of 55 North Ltd. Nothing in this magazine may be reproduced in whole or part without the written permission of the publisher. All copyrights are recognised and used specifically for the purpose of criticism and review. Although the magazine has endevoured to ensure all information is correct at time of print, prices and availability may change. This magazine is fully independent and not affiliated in any way with the companies mentioned herein. Scottish Local Retailer is produced monthly by 55 North Ltd.

ANTONY BEGLEY, PUBLISHING DIRECTOR 14

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www.slrmag.co.uk

09/06/2016 12:44:01

Cover Story

CTP Results 2016: Scotland

EXCLUSIVE

CTP PROVIDES THE KEY TO UNLOCKING SALES IN 2016

The annual Convenience Tracking Programme from him! is arguably the most influential piece of research into the convenience market – and SLR has exclusive access to the Scottishspecific results. BY ANTONY BEGLEY

he CTP (Convenience Tracking Programme) has long stood alone as possibly the single most important piece of research carried out in the local retailing market. Organised annually by convenience insight specialists him!, the research never fails to deliver useful, practical and often unpredicted insights that retailers can then turn into action – and ultimately sales and profits. This year’s CTP results are no different, and SLR has gained unique access to the Scottish-specific data in the report produced off the back of the research. The results make for fascinating reading and deliver a raft of information that Scotland’s local retailers

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can use to inform their plans for the next 12 months. But before we get to that, a bit of background on the research itself: CTP is the largest oneoff face-to-face convenience shopper study in the UK. Within a seven-week period him! visited over 1,400 stores, spending over 8,000 hours speaking to 20,000 shoppers and collating over 100,000 question responses. This year, him! has broken the results down into a number of ‘key headline’ findings. In other words, the key areas that him! believes will dominate the convenience retailing market over the next year or so. These include life stages, solution-led shopping, loyalty and location.

www.slrmag.co.uk

09/06/2016 12:52:25

CTP Results 2016: Scotland

Cover Story

SOLUTION-LED SHOPPING

Q Convenience shoppers are time poor and habitual, visiting the same store more than 190 times a year and looking to spend less than 5 minutes shopping each trip. Q 32% of Scottish shoppers use c-stores for a newsagent mission in a typical week vs. 25% CTP average. Q ONE THIRD of shoppers said they bought something on impulse because they “saw it and felt tempted” BUT a large portion of shoppers want to be “in and out as quickly as possible.” Q Over half of meal occasion shoppers say having healthy options available is important. Q A significant portion of shoppers are not confident in their local c-store’s basic meal solution provision – Scottish shoppers were asked ‘Do you think you would be able to buy all the ingredients to make the following meals here?’ Percentages that answered no for the following meals:  Curry – 32% vs. CTP average 27%  Stir Fry – 31% vs. CTP average 29%  Spaghetti Bolognaise – 25% vs. CTP average 22%  Roast dinner – 58% vs. CTP average 49%

20,000 Shoppers interviewed

DRIVING SHOPPER LOYALTY

Q The key to increasing shopper loyalty is to focus on the core missions that will either drive footfall, basket size or both, depending on the objectives. Consider the ‘power categories’ that attract shoppers to store and understand what role they play in creating a shopping basket of 5+ items, as these are the baskets that will create the biggest growth Q Over half of shoppers said a leaflet encouraged them to visit a store Q Stores with the following features, see average shopper visit frequencies of >4 times per week vs 3.6 average:  Payzone/PayPoint  Post Office  Pound Zone  Cash Machine

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JUNE 2016 | SLR

09/06/2016 12:52:32

Cover Story

CTP Results 2016: Scotland

LIFE STAGES UNWRAPPED

Q Protect the core of the over 65s who provide regular footfall and the foundation of key newsagent and top-up missions. Whilst maximising the growth opportunity of the last of the millennials through a greater focus on the food to-go mission. Q By 2040, nearly ONE in FOUR people in the UK will be aged 65 or over. And 3.5m of them will be 85+! Q Over a third of those 75+ and living alone in Scotland are on a Planned Top Up mission. Q Retired Greys are the core of convenience success! C-stores remain the homeland for the newsagent mission and it’s mainly down to the older generation shopper – 52% of retired greys in Scotland purchase newspapers from c-stores vs. 18% of the CTP average. Q The ‘Last of the Millennials’ (16-24 years) have come of age during a time of technological change, globalisation and economic disruption. They’re slower to marry and move out on their own, and have shown different attitudes to ownership. Rather than materialism, focus for this generation is on experiences. Q 18-24 year olds are buying alcohol from c-store less frequently than the average.

1,400 Stores visited

MAXIMISING THE ESTATE FOR SUCCESS Q There are huge differences in shopper expectations and preference across the country.

% of shoppers who are, to some extent, looking for innovative and/or new products and solutions when in store:

100,000 Question responses

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Q A shopper is not just one mission. Ignoring missions completely can compromise convenience and jeopardise the potential for return visits. Nearly three quarters of meal for tonight shoppers will be back in store that week on a Top Up mission. Q Factoring in location is imperative to getting range right for shoppers. Shopper missions are heavily influenced by the location of store – a more tailored approach allows us to dedicate an appropriate amount of shelf space to relevant categories.

www.slrmag.co.uk

09/06/2016 12:52:43

Cover Story

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CTP Results 2016: Scotland

www.slrmag.co.uk

07/06/2016 16:19:14

News

Products

ProductNews FANCY BEING ON THE SGF EXEC? SEE P31 SOFT DRINKS Vimto launches new marketing campaign

Vimto unveils ‘Toad Off’ campaign SQUASH

Robinsons gives the nation ‘a real taste of Wimbledon’ Britvic Soft Drinks is launching ‘A real taste of Wimbledon’ this summer for squash category leader, Robinsons. With a multi-channel marketing campaign set to run from June to July and backed by a £5m investment, the brand will celebrate its long-term partnership with the world famous tennis tournament with limited edition Wimbledon packaging and new flavours. The new limited edition Wimbledon packaging will be featured on core 1l and 2l single concentrate bottles and Squash’d packs. Robinsons is also launching two new flavours: Orange & Peach, which is being launched in 1l single concentrate format following its popularity in Squash’d, and Lemon & Pink Grapefruit, as a limited edition summer offering. These innovations will coincide with the campaign and help drive interest and bring in new households into the category. The new launches come as part of the wider ‘A real taste of Wimbledon’ campaign, which includes sampling and experiential in and out of store, social media, TV and outdoor advertising. Robinsons will also be running a national consumer competition, giving away VIP experiences and tickets to the ladies’ final to social media users who enter via the hashtag #tasteofwimbledon. Britvic’s GB Marketing Director, Kevin McNair, said: “Wimbledon is always an exciting time of the year for us. Our partnership with the tournament spans over 80 years, so it’s fitting we celebrate with limited edition packaging and a new flavour or two. Retailers should make sure they stock up.”

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Following the recent launch of its Remix sub-brand, Vimto is set to kick off a multi-channel marketing campaign to drive national awareness of both ist’sNo Added Sugar Original Vimto and Vimto Remix variants this summer. The new initiative features the return of the brand’s popular mascot, the Vimtoad. The brand has also created a new mascot, the Mixtoad, to appear in the advert. The campaign will target teens across the UK in cinemas, TV, and social media advertising. Retailers can also take advantage of engaging POS materials, communicating the chance for shoppers to win an iPad Air 2 every week, to create in-store

appeal and sales. Vicky Marsden, Senior Brand Manager at Vimto, said: “Our campaign strategy is designed to engage and entertain teens to maximise awareness of both Original Vimto and Vimto Remix. “Both variants continue to outperform the soft drinks category: Vimto is the fastest growing Still RTD and Squash brand, growing 22 times and seven times faster than the category respectively, whilst Vimto Remix has now added £800,000 to the category in just three months. As the campaign kicks off, we expect the demand to grow even more. Retailers can capitalise on this by stocking up on the Remix and Original range now.”

OLYMPICS 2016 Muller backs GB triathlete

British triathlon goes the distance with Müller Rice

Müller Rice has partnered with British Triathlon and European Games gold medallist, Gordon Benson, to help Team GB Triathletes go the distance in the lead up to the Rio 2016 Olympic and Paralympic Games, and beyond. Michael Inpong, Chief Marketing Officer at Müller, said: “Partnering with British Triathlon and Gordon Benson shows our drive to go the distance in our passion to succeed, something high profile athletes know all about. Müller Rice is tasty and full of dairy goodness as it is a source of calcium, and it is also low in fat.” British Triathlon Chief Executive, Jack Buckner, said: “We are delighted to partner with

Müller Rice as we enter a crucial time within triathlon, with the Olympic Games on the horizon and paratriathlon looking to make its debut as a Paralympic sport. Müller will provide great support for us in engaging triathlon with the nation and help us to extend the reach of our rapidly growing and accessible sport.” Müller Rice is the official Triathlon Team GB partner and is launching a triathlon-inspired multi-channel advertising campaign, featuring Gordon Benson and Müller Rice’s brand ambassador, rapper, entrepreneur and bear, Tasty B. The campaign will run from now until October across all TV stations as well as national newspapers, men’s and sports titles.

CONFECTIONERY

Tangerine’s Sweet Champions Chews Assortment Tangerine Confectionery is launching Sweet Champions Chews Assortment, a selection of the UK’s favourite chews. It’s the first time the branded collection of Fruit Salad, Wham and the new Mojo Cola chew — which is back in the UK after a five-year hiatus — have been brought together in one pack. The pack is available in a 180g sharing bag as well as in a 150g £1 price marked pack and is available now. Adrian Hipkiss, Head of Marketing at Tangerine Confectionery, said: “Our unique Sweet Champions range is inherently colourful, fun-filled and offers choice and variety to our customers, whatever their preference for flavour, texture and taste sensation.”

www.slrmag.co.uk

09/06/2016 12:38:09

ESSENTIALS

19 JUNE 2016

FATHER’S DAY Spirits are a growing gifting category for Father’s Day, with sales in the Impulse sector up 6% year on year In the week before Father’s Day in Convenience retail: · Malt whisky and Cognac sales grow significantly · 1 in every 5 bottles of spirits sold is a blended whisky, The Famous Grouse is the UK’s No.1 brand · 50% of all Cognac sold is Courvoisier - the UK’s No.1 All available in 70cl & 35cl, and most available in 4-pack cases to help with cash flow and stock management.*

*Laphroaig 35cl available in 6-pack cases

STOCK UP NOW - OR MISS OUT!

Maxxium House, Castle Business Park, Stirling, Scotland FK9 4RT 01786 430500 Maxxium Father's Day Whisky Ad 2016 Final AW.indd 1

16/05/2016 17:36

News

Off-Trade

Off-TradeNews CASHING IN ON SUMMER CIDER SALES P46 CIDER Kopparberg receives packaging complaint

Shoppers to bag personalised tote in Campo promo Campo Viejo is celebrating the launch of a new limited edition Reserva by offering shoppers a personalised tote bag. From now until the end of July, limited edition Reserva Art Series bottles (rrp £12.35) with special promotional neck tags will be appearing on shelves. The brand’s 2015 limited edition bottle generated a +28% sales uplift and Carlotta Colkin, Campo Viejo Senior Brand Manager at Pernod Ricard UK, is confident the latest promotion will both appeal to loyal customers and help drive trial.

Brown-Forman set to toast Father’s Day Brown-Forman has unveiled new

Kopparberg receives complaint A complaint about the packaging of Kopparberg Frozen Fruit Cider for not communicating its alcoholic nature and appealing to under-18s has not been upheld by the Independent Complaints Panel (ICP). The complainant, Alcohol Concern’s Youth Alcohol Advertising Council (YAAC), believed that the style of the packaging resembled a wellknown children’s drink and the fruit flavours would appeal to under-18s. YAAC also considered that the alcoholic nature was not clear therefore breaching the Portman Group Code under sections 3.1 and 3.2(h). The Panel discussed whether the alcoholic nature of the drink was communicated with absolute clarity. They found that the words ‘cider’ and ‘contains alcohol’ were prominent on the packaging

as was the ABV strength. Accordingly, the Panel did not uphold the complaint under Code rule 3.1 The Panel deliberated whether the packaging could particularly appeal to those under 18. The Panel noted a number of significant differences in comparison to the packaging of well-known soft drinks. The product did not have a straw and was not designed to be consumed directly from the pouch. The product was intended to be taken home, frozen and then poured

into a glass. The Panel concluded that this ritual was targeted at an adult audience. The Panel also said that the colours used on the packaging, particularly the use of black, gave the product a premium appearance that would be more appealing to adults. Accordingly, the Panel did not uphold the complaint under Code rule 3.2(h) – particular appeal to children. Secretary to the Independent Complaints Panel, Henry Ashworth, said: ‘‘It is important when using innovative packaging and serving styles that producers are particularly careful to avoid appealing to under-18s and make the alcoholic nature is made absolutely clear. The Portman Group’s free advisory service is always on hand to support producers.”

gift packs for Jack Daniel’s and Woodford Reserve in time for father’s day. Single-bottle gift

CIDER

WHISKY

packs containing 70cl bottles

Thank your lucky stars for new Stella promo

Glasgow firm tries whisky cocktail RTDs

of Jack Daniel’s super-premium expressions, Gentleman Jack and Jack Daniel’s Single Barrel, and super-premium bourbon, Woodford Reserve, are available now. Crispin Stephens, Head of Commercial Planning and Activation for Jack Daniel’s, commented: “With these new gift packs, we’re confident that Jack Daniel’s and Woodford Reserve will be the whiskeys of choice for modern dads in Scotland this Father’s Day, so we’d advise retailers to stock up well in advance to maximise the sales opportunity.”

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Stella Artois Cidre has unveiled a new packaging design accompanied by an on-pack promotion. The new design features on all bottles and cans in the Cidre family and is intended to reinforce the brand’s premium credentials. The on-pack competition runs until 28th August 2016. Consumers who find a ‘lucky star’ under their bottle cap will win one of three Extraordinaire Adventures. The adventures comprise: a night out at the bottom of the Indian Ocean; a private BBQ in the caves of an Icelandic volcano; and building a treehouse on a Fijian island.

Driven by a desire to bring an enjoyment of whisky to an untapped younger market, Glasgow-based drinks firm, Dram2O, has launched Òrach– a bottled Scotch whisky cocktail. Created by Scottish entrepreneurs James Doig, Dave Millard and David McLauchlan, the trio first devised the concept in 2015, in a bid to showcase their blended Scotch – Dram Òrach – to non-whisky drinkers. The Scotch whisky cocktail incorporates a double shot of blended whisky with natural flavourings. So far two flavours have been launched; Strawberry, Vanilla & Ginger Beer and Lemon, Lime, Mint & Ginger Ale. Demand for the RTD cocktail has seen some 80% of the product sell-out in under three weeks of retail. Managing Director, James Doig, said: “Like many of the best things in life, Òrach was born out of a happy accident. At Scone Game Fair we were sampling our whisky and realised that younger people were not so interested, so on the spot we devised a series of whisky cocktails that were a huge hit. We realised there was a gap in the market and decided to develop it further so a younger demographic, who normally wouldn’t choose whisky, can enjoy Scotland’s national drink in new ways.”

www.slrmag.co.uk

09/06/2016 12:42:01

Off-Trade

News

ALCOHOL CONSUMPTION Supermarket sales drive growth in at-home drinking

NHS: Scotland is now a ‘nation of home drinkers’ Adults in Scotland have increased their consumption of alcohol for the second year in a row, according to new NHS research. NHS Scotland said the trend was mainly down to more alcohol being bought in supermarkets and off-licences – especially beer and wine. Sales of alcohol were 20% higher per head in Scotland than they were in England and Wales, with each adult consuming the equivalent of 477 pints of beer. Alcohol Focus Scotland described the country as “a nation of home drinkers.”

The Scottish government said the report supported the case for minimum pricing. Total alcohol sales in Scotland in 2015 were the equivalent of 41 bottles vodka or 116 bottles of wine per adult. The report concluded that the higher sales compared to England and Wales were mainly because of the sales of lower-priced alcohol in supermarkets and offlicences, particularly spirits.

More than twice as much vodka was sold in off-sales per adult in Scotland than in England and Wales. The researchers also found that in 2015 the average price of a unit of alcohol sold through off-sales was 52p – a price that has not changed for two years. Dr Mark Robinson, senior public health information manager at NHS Scotland, described the reversal in declining alcohol sales as “concerning.”

There’s only one Captain Morgan… If they can face the prospect of yet more celebratory alcohol, Leicester City fans are able to toast team captain Wes Morgan with a limited edition Captain Morgan bottle, following his side’s victory in the Premier League title race. The special edition commemorative bottle features the Jamaican international dressed as Captain Morgan in royal blue and white robes to match Leicester City’s home kit. The design also features the footballer’s signature and an updated 2016 medallion to mark Leicester’s title victory.

WIN TICKETS TO PARTY AT THE PALACE, A FESTIVAL GOODIE BAG AND FOUR CASES OF McEWAN’S IPA! McEwan’s IPA is once again sponsoring the excellent Party at the Palace music festival and this year’s headliners are massive. The Proclaimers and Billy Ocean will be joined by a host of support acts including Big Country, The Fratellis, and The Farm, at the stunning Linlithgow Palace on the 13th and 14th August 2016, and you could be there too. To celebrate this ongoing partnership between Party at the Palace and McEwan’s IPA, SLR is giving away four tickets to Party at the Palace and a festival goody bag, plus four cases of McEwan’s IPA for you to sell instore. McEwan’s IPA is a lightly hopped and refreshing beer with citrus fruit aroma and a dry, refreshing finish. It’s a beer that is proving very popular with drinkers who are new to the ale category and those wanting to try a refreshingly different IPA. To be in with a chance of winning, simply fill in the entry form and send to McEwan’s Party at The Palace Competition, SLR, Waterloo Chambers, 19 Waterloo St Glasgow, G2 6AY or email your details to mailinglist@55north.com.

Name: Company/store name: Address:

Daytime phone number: Email Address: Twitter: Would you like to continue to receive a copy of SLR?

CLOSING DEADLINE 30TH JUNE Ts&Cs: This competition is only open to readers of SLR. Only one entry per store is permitted. Entries received after the closing date will not be considered. The prize is not transferable and the judges’ decision is final.

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Signature:

Date:

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09/06/2016 12:42:03

SLR REWARDS

PART

3 G N I R HARRIS ASLAM IS ON HIS E N T R A P … S S E WAY R TO WITH SLR! CC S UATLANTA

Markinch local retailer Harris Aslam was the toast of convenience industry at Holyrood before sponsoring the convenience retailing industry in Scotland earlier the SGF Parliamentary Exhibition at Holyrood, in this month as he was named Scottish Local Retailer association with SLR. The event saw SGF and a team of the Year at the SLR Rewards. As his Reward, Harris of high profile retailers meet with countless MSPs to will be jetting over to Atlanta, Georgia in October to discuss the issues facing the industry. As always, the event saw a broad selection of winners attend the global NACS Conference and rub shoulders with some of the greatest convenience retailers and from right across the spectrum but the winners all had oneway thingtobacco in common: a dedication and a passion that forecourt operators the planet. The EUTPD II ison a series of new rules regarding the products are manufactured, the judges were immensely impressed by. in The event was held at a packed Grand Central Hotel packaged and sold within the EU. The UK Government has chosen to add extra legislation SLR Publisher Antony Begley said on the night: “The in Glasgow and saw the cream of the industry gather the form of standardised – or ‘plain’ – packaging. to recognise and Reward the very best operators in SLR Rewards has become a unique event in the UK industry whereincluding every winner theThis business. new legislation will affect everybody involvedconvenience in the tobacco category, you. picks up Also recognised on the night was Gordon MacDonald, a cracking Reward. I like to think that the retailers an Edinburgh Pentlands MSP, who was given a Special appreciate the extra effort we go to in order to make the event special, and that’s reflected in both the Recognition award for all of the fantastic quality and quantity of entries we got this year. work he has done in the last 18 “The biggest memory I havepackof this year’s judging months to push the interests of Examples of standardised designs. illustrative purposes only, and subject to change. TRANSITION was simply theForamount of high quality innovation we the local retailing industry much encountered. There are some truly fantastic retailers further up the political agenda at PERIOD in this industry and I’m delighted that so many of them the Scottish Parliament. were here tonight. MacDonald sponsored the first “I’d like to say a special word of congratulation to ever debate on the MAY 2016 MAY 2017 Harris on becoming this year’s Scottish Local of the Year – and I’d also like to single Gordon MacDonald 20 20 MSP. The work that he has done on behalf of the From 20 May 2016 standardised packs may From 20 May 2017 retailers are onlythe last 18 Scottish local retailing industry over begin to appear in the market. Between now and allowed to sell standardised packs months or so has been nothing short of • Cigarette packs must be 20 sticks or more 20 May 2017, retailers are allowed to sell both exceptional. As an industry we salute • Roll-your-own tobacco pouches must be 30g or more current packs and standardised packs. you.” • Price Marked Packs no longer allowed

WHAT IS HAPPENING?

WHEN IS IT HAPPENING?

WHAT WILL GANTRIES LOOK LIKE? Over the coming months towards 20 May, 2017 tobacco gantries will begin to comprise of a mixture of current branded packs and standardised packs.

STANDARDISED PACKS ON SHELF

D BY

ORE SPONS

We look forward to working with the trade to help deliver a smooth transition to May 20, 2017 when only standardised packs can be sold. MIXED STOCK ON SHELF

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SED

SLR REWARDS PRICING YOUR TOBACCO COMPETITIVELY The recent EUTPD II and standardised packaging manufacturing deadline on 20 MAY 2016 means the manufacturing of Price Marked Packs (PMPs) is no longer permitted.

2016

TH E PMPs provided a clear way for retailers to communicate their tobacco product pricing, reassuring tobacco Previously,

S R E N WIN

shoppers they were getting good value while helping to drive in-store footfall and protect retailers’ turnovers.

Recent retailer feedback suggests there are major concerns around the potential loss of tobacco shoppers once PMPs disappear from the market. Ensure that you retain shopper trust by adopting a transparent pricing strategy. ILS

Y @ JAM

TODA sure PMPs are AR DAY Make F THE YE O L R E IL NHIL A O price your KINCH ABRyou R RET IDEphasing S OF MAR EAR SPAR N Y E E E BEER & C H R T G F A RO NIS AILEfrom RETout HE YEAR standard NDORRAT BISCUIT ILER OF T A T E SPAR COstock ANGEMOUTH R R Y 20 May branded A R E E Y N E IO H T T C F O DAS, GR CONFE ETAILER OTTE DUN Lcompetitively… R A NACKS R H C & S2016 R E STORE A

Price competitively and keep your shoppers loyal

…ahead of standardised packaging from 20 May 2017

NC K SP CRISPS TATION CONVENIE T OF MIL ERVICE S S AR KILLIE THE MOS E D G Y N IN E A K H R A T M SPA ER OF POLBETH DE RETAIL HE YEAR T F NEWSTRA O TORES LLON R E E ENERAL S RETAIL CUTTER G S T K S IR O A IN C L R C D R PREMIER SOFT AR SIN HE YEA MENDED) F THE YE M O ILER OF T O A R C T E E R IL LY A H S IG RET SPIRIT E YEAR (H LVEMENT ER OF TH ITY INVO IL N A U T E M R M T O C LVEMEN Experience in Australia suggests ITY INVO TORE KINCH S R A E COMMUN C REET M T N F S IE O K retailers who adopted clear and VERES REENS CONVEN G IN Y A A 1 0 IS W 1 N D G A R BRO W Osensible HE YEA ENDED) G T M S F A M O L O G R C pricing E TAIL E STORE strategies prior to and IGHLY the loss of E STREET, Reassure despite PMPs EAR (H ECIGS RE shoppers VENIENC N E Ythat GEORG O H P T C O F T M O S R E R E FA post the introduction of standardised EAR ON RETAILpricing L, PINKIE your ECIGSclear LOCAgood OF THE Ycontinues ISAoffer Nto AILERpolicy R T A E E R Y O E G packaging have only seen a minimal O OF TH H FOOD Ton value tobacco RETAILER MARKINC E L D F O E O B L S Y IL A N H E M C impact on their tobacco sales. GRE FRESH & SPAR JET AR NISA MENDED) F THE YE GATE Myou O D O N C IT O F E LY M R H O Make your customers aware that sell tobacco (HIG BEST PAR L FALKIRK THE YEAR ARAGES S KITCHEN F G O ’S O ID R IT V U F A E E products price DED) D BEST R at the recommended ENbelow* THE YEAR retail MMor NTYRE STORE OF IGHLY CO W E (H N R T A S E E Y PPER BLA B O E H H S T Y F O IL AM ERWELL EAR Fstore Display W STORE priceOlist E Yyour NEcurrent THin ET, MOTH E F R BEST a T S R E N IL E TA AR LEV SIBLE RE KHALL WARD SP your free SPONyou N Adownload RE – PAR Don’tREforget can create and TIO Ofully A T V S Y O E N /K IN P T O-O SMARlist compliant from MyTobaccoPriceList.co.uk EBANK C THINKprice IL D MSP EAR CLYD Y E H ACDONAL ROS RETA T M F N O D R ASLAM, E O TEAM O G IS N R R IO A IT H EAR RECOGN OF THE Y SPECIAL RETAILER L A C O L SCOTTISH

INSTILLING SHOPPER CONFIDENCE STEPS TO SUCCESS

For more information on the legislation visit

www.imperial-trade.co.uk or www.imperial-ignite.co.uk

D N A I I D P T U E H G U O R G H N I T G A … K C A P D E S I D R A D N A ST Sources: *Please note that retailers are free to determine the price of their products at all times The content of this document is without prejudice to Imperial Tobacco’s position that the Standardised Packaging Regulations are unlawful and subject to the outcome of Imperial Tobacco’s ongoing legal challenge.

www.imperial-trade.co.uk www.slrmag.co.uk

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09/06/2016 13:05:53 06/06/2016 16:38

SLR REWARDS

HARRIS ASLAM IS ON HIS WAY TO ATLANTA WITH SLR! Markinch local retailer Harris Aslam was the toast of the convenience retailing industry in Scotland earlier this month as he was named Scottish Local Retailer of the Year at the SLR Rewards. As his Reward, Harris will be jetting over to Atlanta, Georgia in October to attend the global NACS Conference and rub shoulders with some of the greatest convenience retailers and forecourt operators on the planet. The event was held at a packed Grand Central Hotel in Glasgow and saw the cream of the industry gather to recognise and Reward the very best operators in the business. Also recognised on the night was Gordon MacDonald, an Edinburgh Pentlands MSP, who was given a Special Recognition award for all of the fantastic work he has done in the last 18 months to push the interests of the local retailing industry much further up the political agenda at the Scottish Parliament. MacDonald sponsored the first ever debate on the

convenience industry at Holyrood before sponsoring the SGF Parliamentary Exhibition at Holyrood, in association with SLR. The event saw SGF and a team of high profile retailers meet with countless MSPs to discuss the issues facing the industry. As always, the event saw a broad selection of winners from right across the spectrum but the winners all had one thing in common: a dedication and a passion that the judges were immensely impressed by. SLR Publisher Antony Begley said on the night: “The SLR Rewards has become a unique event in the UK convenience industry where every winner picks up a cracking Reward. I like to think that the retailers appreciate the extra effort we go to in order to make the event special, and that’s reflected in both the quality and quantity of entries we got this year. “The biggest memory I have of this year’s judging was simply the amount of high quality innovation we encountered. There are some truly fantastic retailers in this industry and I’m delighted that so many of them were here tonight. “I’d like to say a special word of congratulation to Harris on becoming this year’s Scottish Local of the Year – and I’d also like to single Gordon MacDonald MSP. The work that he has done on behalf of the Scottish local retailing industry over the last 18 months or so has been nothing short of exceptional. As an industry we salute you.”

D BY

ORE SPONS

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www.slrmag.co.uk

09/06/2016 12:39:52

SLR REWARDS

THE

2016

S R E N WIN

JAMILS TODAY @ Y A D R A E EY ER OF TH ONHILL KINCH ER RETAIL ID C SPAR ABR & R A S OF MAR R E E N Y E E E BE H R T G F A O NIS RETAILER HE YEAR NDORRAT BISCUIT ILER OF T A T E SPAR CO R OUTH R Y A R E E Y N E IO H T T GRANGEM C F , S O A R D E N CONFE IL U ED RETA E HARLOTT SNACKS NCE STOR K SPAR C N IL CRISPS & M F ONVENIE O C T S IE E STATIO L O IC IL M V K R E R E H S A T E D G Y N IN E A K H R A T M SPA ER OF POLBETH DE RETAIL HE YEAR T F NEWSTRA O TORES LLON R E E ENERAL S RETAIL CUTTER G S T K S IR O A IN C L R C D R PREMIER SOFT AR SIN HE YEA MENDED) F THE YE M O ILER OF T O A R C T E E R IL LY A H S IG RET SPIRIT E YEAR (H LVEMENT ER OF TH ITY INVO IL N A U T E M R M T O C LVEMEN ITY INVO E CH COMMUN TREET NCE STOR F MARKIN VERESK S REENS O CONVENIE G IN Y A A 1 0 IS W 1 N D G A R A BRO DED) F THE YE LASGOW COMMEN TAILER O E STORE STREET, G (HIGHLY E R G A R E O Y ECIGS RE VENIENC E N E G O H P T C O F T M O S R E R FA ON TAILE AL, PINKIE THE YEAR ECIGS RE NISA LOC AILER OF R T A E E R Y O E G F TH FOOD TO RKINCH TAILER O YBOLE ILLED RE NS OF MA H E C E R & G H A S R JET MA IS A P N FRE S R ) A D E E Y END IT OF THE ONDGATE LY COMM BEST REF FALKIRK SPAR LOM AR (HIGH S E E Y G E A H R T A KITCHEN F G O ’S O ID R IT V U F A E E D) D BEST R THE YEAR MMENDE YRE STORE OF IGHLY CO W E (H N R T ER BLANT A S E P E Y P B O E H H S T Y F O IL FAM ERWELL STORE THE YEAR ET, MOTH E F R O BEST NEW T S R E N IL E A LEV IBLE RET RD SPAR RKHALL RESPONS TION AWA ORE – PA A T V S Y O E N /K IN P ART O-O EBANK C THINKSM IL D MSP EAR CLYD Y E H ACDONAL ROS RETA T M F N O D R ASLAM, E O TEAM O G IS N R R IO A IT H EAR RECOGN OF THE Y SPECIAL RETAILER L A C O L SCOTTISH

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09/06/2016 12:39:58

SLR REWARDS

HARRIS ASLAM IS ON HIS WAY TO ATLANTA WITH SLR! Markinch retailer Harris Aslam was the toast of the of local retailing industry much further up the political convenience retailing industry in Scotland last night agenda at the Scottish Parliament. MacDonald sponsored the first ever debate on the as he was named Scottish Local Retailer of the Year at the SLR Rewards. As his Reward, Harris will be convenience industry at Holyrood before sponsoring jetting over to Atlanta, Georgia in October to attend the SGF Parliamentary Exhibition at Holyrood, in the global NACS Conference and rub shoulders association with SLR. The event saw SGF and a team with some of the greatest convenience retailers and of high profile retailers meet with countless MSPs to discuss the issues facing the industry. forecourt operators on the planet. SLR Publisher Antony Begley said: “The SLR The event was held at a packed Grand Central Hotel in Glasgow and saw the cream of the industry gather Rewards is a unique event in the UK local retailing Bestin Newindustry Store ofwith the Year every winner on the night picking up a to recognise and Reward the very best operators EURO Garages SPAR Lomondgate valuable prize as a Reward for all their hard work all the business. Also recognised on the night was Edinburgh year. We’ll be sending retailers on trips to the US and to France, to Michelin-starred restaurants in the UK, Pentlands MSP Gordon to rally-driving courses and to Champions League MacDonald who received matches. We’re handing out Apple Watches and iPads, a Special Recognition VIP tickets to Justin Bieber and Scotland matches. It’s for award for all of the brilliant fun and it’s no less than our winning retailers fantastic work he has deserve. done in the last 18 “A particular word of praise must go to Harris Aslam months to push the on becoming our Scottish Local Retailer of the Year – interests a very worthy accolade for such an ambitious, hungry young man with a brilliant career ahead of him. I would also like to add a little personal word of thanks Gordon MacDonald for having the courage to ThinkSmart to Innovation Award SPAR Leven Street get behind this amazing industry of ours and ensure that our voice is heard at the very top table.”

AWARD

WINNERS

Crisps & Sna

SPAR Condorra

Making the M

SPAR Charlotte

D BY

ORE SPONS Biscuit Retailer of the Year

Soft Drinks R

SPAR Abronhill, Cumbernauld

SPAR Polbeth S

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07/06/2016 15:18:11

SLR REWARDS

THE

2016

S R E N WIN

JAMILS TODAY @ Y A D R A E EY ER OF TH ONHILL KINCH ER RETAIL ID C SPAR ABR & R A S OF MAR R E E N Y E E E BE H R T G F A O NIS RETAILER HE YEAR NDORRAT BISCUIT ILER OF T A T E SPAR CO R R Y A R E E Y N E IO H T T C F DAS CONFE AILER O OTTE DUN E ACKS RET & SNYear R CHARL A P PS the NCE STOR S Crisps & Snacks Retailer K N N IL E CRISof CONV IE T OF M S IE E STATIO L O IC IL M V K R E R E H S A T E SPAR Condorrat, Cumbernauld D G Y N IN E A K H R A T M SPA ER OF POLBETH DE RETAIL HE YEAR T F NEWSTRA O TORES LLON R E E ENERAL S RETAIL CUTTER G S T K S IR O A IN C L R C D R PREMIER SOFT AR SIN HE YEA MENDED) F THE YE M O ILER OF T O A R C T E E R IL LY A H S IG RET SPIRIT E YEAR (H LVEMENT ER OF TH ITY INVO IL N A U T E M R M T O C LVEMEN ITY INVO E CH COMMUN TREET NCE STOR F MARKIN VERESK S REENS O CONVENIE G IN Y A A 1 0 IS W 1 N D G A R A BRO DED) F THE YE LASGOW COMMEN TAILER O E STORE STREET, G (HIGHLY E R G A R E O Y ECIGS RE VENIENC E N E G O H P T C O F T M O S R E R FA ON TAILE AL, PINKIE THE YEAR ECIGS RE NISA LOC AILER OF R T A E E R Y O E G F TH FOOD TO RKINCH TAILER O YBOLE ILLED RE NS OF MA H E C E R & G H A S R JET MA IS A P N FRE S R ) A D E E Y END IT OF THE ONDGATE LY COMM BEST REF FALKIRK SPAR LOM AR (HIGH S E E Y G E A H R T A KITCHEN F G O â&#x20AC;&#x2122;S O ID R IT V U F A E E D) D BEST R Making the Most of Milk Award THE YEAR MMENDE YRE STORE OF IGHLY CO W E (H N R T ER BLANT A SPAR Charlotte Dundas, Grangemouth S E P E Y P B O E H H S T Y F O IL FAM ERWELL STORE THE YEAR ET, MOTH E F R O BEST NEW T S R E N IL E A LEV IBLE RET RD SPAR RKHALL RESPONS TION AWA ORE - PA A T V S Y O E N /K IN P ART O-O EBANK C THINKSM IL D MSP EAR CLYD Y E H ACDONAL ROS RETA T M F N O D R ASLAM, E O TEAM O G IS N R R IO A IT H EAR RECOGN OF THE Y SPECIAL RETAILER L A C O L SCOTTISH

Soft Drinks Retailer of the Year SPAR Polbeth Service Station

Best Refit- Highly Commended SPAR Maybole

To join our award-winning retailers, contact Marketing on 01382 512000 www.spar.co.uk @SPARintheUK

www.slrmag.co.uk

2016 Rewards.indd 3

JUNE 2016 | SLR

07/06/2016 15:18:17

Inside Business

2 Minutes | Andy Batt, Velocity Worldwide

Andy Batt Technology has undoubtedly changed the way we work, live and shop. Online or in-store, ‘convenience’ is shaping how retailers aim to win and maintain shopper loyalty – and the c-store model is getting a lot of attention… SO, TELL US, WHY IS VELOCITY WORKING WITH OUR VERY OWN WOODLANDS LOCAL STORE IN FALKIRK?

FACTFILE Andy Batt is in charge of Market Development at Velocity Worldwide, the company that created Darius for Retail, the shopper engagement software currently powering the ground-breaking Woodlands Local Rewards Club.

Quite simply, we wanted to immerse ourselves within the day-to-day challenges and operations of a convenience store so we could tune the development of our shopper engagement platform – Darius for Retail – to the specific needs of the c-store sector. We wanted Darius to work as hard for the manager of a single store – like Gerry at Woodlands Local – as it does for a head office marketing or IT department responsible for hundreds of stores. Working with all levels of the SLR and Woodlands Local teams has been an invaluable learning experience for our developers and client-facing staff, and the quality of research and data that we are seeing via the Darius platform is really exciting.

WHAT HAVE YOU LEARNED SO FAR? It’s certainly been an education becoming immersed in local retailing at the coal face! There are a number of differences when compared with our experiences of working in other retail environments that use Darius, such as shopping centres where we have lots of big clients. But in lots of ways, the objectives of convenience stores are pretty similar to those of shopping centres. They both want to engage with shoppers and encourage up-selling. They both have limited promotional budgets and limited time resources.

WITH THE PROJECT WELL UNDER WAY NOW, WHAT LIES AHEAD? We’re currently looking at a dedicated Woodlands Local Rewards Club App as part of the potential solution, but at this stage we have focused our engagement campaigns around the store offer, focusing on customer behaviours to attract and retain spend using personal rewards rather than loyalty points and general promotions. We’ve learned that there are good EPoS systems supporting retailers but there has to be a coordinated approach for the store to benefit from a centrally marketed loyalty or data-centred 30

SLR | JUNE 2016

2 Mins.indd 30

initiative going beyond an Ep or App capability.

WHAT HAVE BEEN THE RESULTS SO FAR? Really encouraging. The real-time EPoS integration with Darius now enables Woodlands to capture and manage bigger and bigger volumes of personalised transactional data, then segment specific offers/messages to different shopper types. It’s a win/win relationship and we are now building some very robust analysis on who is buying, and when and where shoppers come from. This helps the store reach out to shoppers with pre-visit communications to their mobile or e-mail, and now in real-time via the EPoS (and customer-facing Wifi very imminently), all geared towards increasing basket size. It all creates a very simple way in which data can be managed and is incredibly powerful intelligence that we can use and share with the store’s Partners. Rewards Club membership levels are growing on a consistent basis, week on week, as the success of in-store promotions create opportunities for both social media and community engagement. This generates yet more shopper data, which in turn is converted into rewards club memberships: a real virtuous cycle where technology and personal service meet.

WE ARE SEEING MORE TECHNOLOGY COME INTO C-RETAIL: IS THIS THE WAY THE FUTURE WILL BE? In a word, yes. For some time now, industry research has been highlighting demand for convenience and quality, and technology has a key role to play here. You see this in partnerships like Shell and Waitrose, optimising fuel with an enhanced grocery offer. So as more time-poor, techsavvy shoppers mix up their visits between convenience, online, the major multiples and the discounters, the traditional weekly shop is becoming a distant memory. Because of this, we are seeing early adopters in the shape of mobile coupons or Apps. This isn’t a bad thing but those retailers who can plan ahead and bind technology together with traditional service will achieve the greatest levels of shopper engagement and loyalty. www.slrmag.co.uk

14/06/2016 14:55:31

Promoting Responsible Community Retailing

to ensure a sustainable and prosperous convenience industry in Scotland

SGF National SGF National Executive Executive Elections Elections and Annual General Meetings and Annual General Wednesday 24 August 2016 Meetings th

SGF would like to invite your nominations to fill the th vacancies on the SGF 24 National Executive. The elections Wednesday August 2016 th will take place on Wednesday 24 August during our Annual General Meetings, being held at Federation House, Edinburgh. We currently have a number of vacancies within our two vacancies as follows: CONSTITUENCY

NUMBER OF VACANCIES

Independent (companies operating with less than 50 stores)

Multiples/Co-ops/Symbol Groups (operating with over 50 stores)

We do have members standing for re-election to fill these vacancies however we would be also be happy to accept nominations from within our membership. ALL applications will be considered and a vote will take place at our Annual General Meeting on 24th August. Nominations should include name, company, brief history and authorisation from the individual concerned. SGF has offered itâ&#x20AC;&#x2122;s commitment to the Scottish Government that we will endeavour to work to their 50/50 by 2020 initiative; encouraging diversity on our board, therefore we would be delighted to welcome applications from the female contingent within our industry.

SGF Ad A4 Reworked.indd 1

Meetings Taking Place COMPANY

TIME

SGF (Holdings) Limited

2.00pm

SGF Services Limited

2.10pm

PGMA (Scotland) Limited

2.20pm

SGF Benevolent Fund

2.30pm

Should you wish to attend please let us know no later than 12th August to allow us to arrange catering etc.

send your PleasePlease send your nominations nominations no later no later than 12th August to th August than 12Mullen to Pauline at SGF on Pauline Mullen at 0131 SGF on343 01313300 343 3300, EMAIL: e-mail p.mullen@scotgrocersfed.co.uk p.mullen@scotgroce rsfed.co.uk or post: SGF, 222 Alternatively you can post your Queensferry nomination to:Road, Edinburgh, EH4 2BN. SGF 222 Queensferry Road Edinburgh EH4 2BN

19/05/2016 14:39:36

Inside Business

SGF | Taking The Hassle Out Of Retailing Event

TAKING THE HASSLE OUT OF RETAILING

SGF’s latest in a series of innovative events saw more than 25 companies gather for a day dedicated to helping make life easier for retailers. BY ANTONY BEGLEY

t’s been a busy year already for the new look Scottish Grocers’ Federation as it strives to deliver more and better events for Scotland’s retailers. The latest evidence of that came in the form of another innovative event: Taking the Hassle out of Retailing. Held at RBS’s Global HQ in Gogarburn in Edinburgh, the event saw over 25 suppliers and a host of local retailers come together last month. The session featured a popular ‘speed dating’ opportunity which formed the centrepiece of the day and gave retailers a one-stop-shop chance to get access to a very wide range of suppliers. The programme for the day also included breakout sessions and workshops from Resource Efficient Scotland, JTI, RBS Mentor and PayPoint. Chief Executive Pete Cheema said: “We know what a big ask it is for retailers to take a day out of the business to come to an event and that’s why we have completely changed the structure and content of SGF events. We know we need to give retailers something of real value – that’s why we have

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SGF - Taking The Hassle.indd 32

introduced the speed dating session and continued with the highly successful breakout sessions we first introduced at last year’s conference. Bringing retailers and suppliers together is one of our key aims and we have done that very successfully.” A highlight of the day was an insightful presentation from retailer Graham Watson on the challenges of retailing in a remote rural area. Graham, from Moniaive in Dumfries and Galloway, discussed all of the particular challenges and opportunities he faces and the solutions he has devised to cope with them. These include sourcing lots of local products and ensuring great availability. He also explained his ‘availability promise’ which guarantees that if a customer has asked for a product and been given a commitment to buy it, he would guarantee to source and stock it. Watson also reported that ongoing problems with deliveries and supply meant that he had to take a ‘promiscuous’ approach to sourcing stock from wholesalers.

www.slrmag.co.uk

09/06/2016 13:04:08

The GroceryAid Helpline is totally confidential. Call our Helpline and whatever you want to talk about will remain in strict confidence. This free service offers support 24 hours a day, 7 days a week. For practical support go to www.groceryaid.org.uk or talk in confidence to one of our professional advisors on 08088 021122. Real lives. Real problems. Real help. GroceryAid

@groceryaid

GroceryAid is the trading name of the National Grocers Benevolent Fund. A registered Charity Reg. No 1095897 (England & Wales) & SCO39255 (Scotland). A company limited by guarantee, registered in England & Wales no 4620683

CAR0198_GA_Rainbow_A4_AW1.indd 4

14/04/2015 11:43

Inside Business

Woodlands Local | Monthly Update

TAKING INSIGHT TO A NEW LEVEL

WOODLANDSlocal

With the Woodlands Local Rewards Club now firmly in place and working well, we are beginning to see some incredibly insightful data coming through about the activities of members and non-members alike.

BY ANTONY BEGLEY

he last month has been one of consolidation at Woodlands for our Rewards Club (WLRC); the systems have now been in place for several months but only in the last month or six weeks have they been truly reliable, allowing us to extract increasingly valuable data from the Rewards Club. We are now routinely running a weekly cycle of promotions that combine: 1. ‘Open’ campaigns – designed to attract non-Members to join or at least provide their email address 2. ‘Member campaigns’ – designed to reward members and encourage them to buy into certain promotions open exclusively to Members 3. ‘React’ campaigns – where certain events ‘trigger’ communications to segments of our membership. For example, we recently ran a campaign where any Member who purchased a product from the confectionery Total Average category was then sent an email in realbasket spend time offering them a special MembersTotal Average only 2 for 1 deal on some Cadbury basket size chocolate NPD. Members The beauty of the system is that we can average basket analyse both how many Members took us spend

SHOPPERS REACHABLE BY EMAIL FOR WOODLANDS

SLR | JUNE 2016

Woodlands.indd 34

No of loyalty transactions

up on the deal and, subsequently, how many of them go on to buy the new product with their own cash. The fact that membership continues to rise also means a steady increase in both the volume and quality of data now flushing through Darius, the software engine that powers the Rewards Club. This means that, probably for the first time, the monthly report that Darius provides us with is substantial enough and contains enough data of sufficiently high quality to allow us to begin to truly start gaining a new depth of understanding of our customers. To give you an idea of the type of data and insight the system is now generating, we have compiled an extract of the April report – the most recent complete report available as SLR went to press. Nov 15

Dec 15

Jan 16

Feb 16

Mar 16

Apr 16

£5.25

£5.58

£7.08

£7.55

£7.48

£7.70

3 items

4 items

3 items

N/A

£4.05

£6.24

£5.79

£5.18

N/A

www.slrmag.co.uk

09/06/2016 17:42:06

Monthly Update | Woodlands Local

So, what does this chart recording data from day one until the end of April tell us? Well, lots of things, but some are particularly worthy of note. Q Firstly, the total average basket spend – that’s Members and non-Members combined – has risen by £2.45 since we launched the Rewards Club. We clearly can’t simply attribute this d i r e c t l y to the Club, but the fact that the rise has been maintained over the last four or five months indicates that it’s clearly a factor. Q Members average basket spend fluctuates but that is largely to do with the nature of the Member promotions that we are running – some are bigger ticket items and encourage bigger basket spends than others. Q During April, the total average spend increased to £7.70 (+2.9%), although average member spend has decreased to £5.18 (-10.5%). Total average basket size has remained consistent. Q The number of loyalty transactions – Members using their key fob when make a purchase – has risen steeply and is now steady at around 50. This figure has risen significantly since this report was published and we expect to see it continue to rise long into the future as we add more Members,

offer more and better deals and get better at choosing deals that resonate with shoppers. The period covered by the chart above – November to April – above has been almost exclusively dedicated to generating awareness of the WLRC, so the vast majority of our activity was geared towards getting customers to sign up. While this is still important – we aim to recruit several hundred Members within the next couple of months – the focus is shifting slightly now onto wider aims such as driving up Member basket spend and increasing visit frequency. Interestingly, when we do email Members the ‘open rates’ – literally the number of people who actually go to the bother of opening the emails – have remained “ridiculously high”, according to the Darius team. We are achieving between 65% and 85%; the average for these types of emails is apparently somewhere around the 10%20% mark. That seems to indicate that our customers are happy to hear from us, which is good news!

Inside Business

NEXT STEPS As SLR went to press, we were in the process of installing new customer-facing wifi along with a clever ‘access point’ that allows us to monitor all sorts of data about customer usage of the wifi. Customers will simply register once with their email (to gain access to the free wifi) and they’ll never need to do so again. Every time they come to Woodlands from then on they’ll be hooked straight up to the wifi. With some more decent weather and the café area out the front, we’re expecting to see good take up of the service. And when customers do so, we will be able to do all sorts of interesting things: see who logged on and how long they stayed logged on, for instance. We’ll obviously know who is currently logged on so we can email or text them if we want to. We might offer special deals or sampling opportunities to those who log on – our options are limited only by our imaginations.

BIT OF FUN At the end of the day, the WLRC is meant to be fun, – so we’ve started running some more light-hearted campaigns. During the Euros for example, we’re running a ‘Three Lions? Free Tigers!’ promotion which is really just an anyone-but-England style campaign where the first 90 customers who register on our Facebook page after an England match kicks off will win a free bottle of Tiger beer if England draw or lose. This is an ‘open’ campaign – so anyone can register, Members and non-Members, and we’re hoping that we gather a few more email addresses that we can then use to create more fully fledged Members. It’s also generating a bit of noise on Facebook as you might imagine, which is rarely a bad thing!

www.slrmag.co.uk

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09/06/2016 17:42:06

WOODLANDSlocal

Inside Business

SLR | JUNE 2016

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Woodlands Local | Walkers Sharing Format Project

BIGGER BAGS MEANS BIGGER PROFITS

Sharing format packs have been among the stars of the last couple of years in local retailing, but we decided to find out just how far we could exploit the opportunity – so we called in PepsiCo to see what they could be with 2ltr carbonate soft drinks and £1 PMP share bags of snacks. BY ANTONY BEGLEY

all it the ‘big night in’, call it sharing, call it what you like: larger format sharing packs have been a highlight of the local retailing scene in Scotland for a long time – so it’s something that we wanted to be sure we were exploiting well in Woodlands Local. Who better to turn to then than PepsiCo who own both the Walkers crisps and Pepsi soft drinks megabrands. Working with PepsiCo, we were looking for a straightforward, easy to implement solution to see if we could boost sales in both categories. We spent time in-store with Colin Frew of PepsiCo and finally decided the best solution would be a link-save deal that ran over eight weeks from March until last month

THE DEAL The deal was simple: any £1PMP Walkers sharing bag plus any PMP of Diet Pepsi, Pepsi Max or Pepsi Max Cherry for just £2.

HOW IT WORKED The sharing bag shelf in the store was completely overhauled to bring the PepsiCo brand family together to make the fixture neater and to make the deal easier to shop for customers. The ‘grab zone’ was sited right next to a new 2l soft drinks bay.

150% increase in sales of the three promoted soft drinks lines

64%

THE RESULTS: Q Total crisp & snacks sales – Total sales up 11.5% Q Share bag crisp & snack sales – Total sales up 64% Q Sales of the three 2ltr soft drinks in the deal – Total sales up 150% In addition, the percentage of total crisps sales accounted for by sharing bags increased from 12.8% before the project to 19.4% by the end of the project. There is no doubt that the project has worked on every level.

increase in sharing bag snack sales

11.5% increase in overall crisps & snacks sales

THE PRODUCTS Q Baked Wotsits Q Cheetos Twisted Flamin’ Hot Q Doritos Tangy Cheese, Chilli Heatwave Q Monster Munch Roast Beef, Pickled Onion Q Quavers Q Sensations Thai Sweet Chilli Q Walkers Max Paprika Q Walkers Ready Salted, Cheese & Onion Q Pepsi Max, Pepsi Max Cherry, Diet Pepsi www.slrmag.co.uk

09/06/2016 17:42:08

Woodlands Picks | Woodlands Local

Inside Business

WOODLANDS PICKS

In a brand new initiative from SLR’s own store, we will be trialling the latest products on the market to give local retailers an indication of how the biggest product launches can be marketed in store. Here’s Woodlands pick of the best products on shelf at the moment.

What? Rachel’s Breakfast Pots Why? The thick, creamy Greek style yogurt, topped with crunchy granola, is the perfect boosting breakfast for those on the move. Marketing support: In-store POS RRP: 99p Woodlands thought: This is another great product to add to our current breakfast range in store as it responds to the increasing consumer demand for convenient and healthy breakfast alternatives.

What? Volvic Juiced Why? Soft drinks are a key category for making extra sales in the summer months. Marketing support: A complete 360 activation including E4 sponsorship, outdoor, in-store POS, limited edition 50cl packs and a heavy weight social media campaign. RRP: 99p Woodlands thought: A new variant to a great selling range, so should always be given a chance to shine.

What? Cadbury Tiffin Why? Only a limited number will be produced, so when it’s gone, it’s gone – helping to bring a new burst of excitement to the category in the summer months. Marketing support: Mondelez International will be supporting Cadbury Dairy Milk Tiffin with digital activity and POS will be available to help retailers build awareness in-store. RRP: £1.49 Woodlands thought: Back for a limited time, this tablet is a real crowd pleaser. Also great for adding value to the confectionery section with the price point.

What? McCoy’s Thick Crisps Why? The range has been introduced to recover declining flat crisp consumption amongst young male consumers. Marketing support: McCoy’s is investing £4.5m publicising its range this year. RRP: 65p (Trial price 50p) Woodlands thought: As crisps is one of our top selling categories, it is always great when something slightly different comes out, and our customers love the strong flavours McCoy’s offer.

What? Rockstar Coconut & Pineapple Why? Energy is a hugely important category for retailers with more than one in three ‘Drink Now’ soft drinks purchased being an energy drink. Marketing support: Trade press support only RRP: 99p PMP (£1.19 non PMP) Woodlands thought: The Rockstar range does really well for us in store, and so this new variety should fit in nicely, allowing a little something different from the other flavours.

What? Whiskas 7 year+ cat food Why? Knowing that 51% of households own a pet, it’s imperative to catch their attention in-store with the help of Price Marked Packs. Marketing support: Trade press support only RRP: £3.29 Woodlands thought: Pet food is a steady category, with many of our shoppers being cat owners, so this new product will be an interesting addition to the range, as it gives those with older cats a special food.

www.slrmag.co.uk

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JUNE 2016 | SLR

09/06/2016 14:57:34

Hotlines

Product News & Media Watch

Coco Sun Corinthian Brands Coco Sun coconut water is a still coconut water drink, described as “providing ‘a taste of the tropics’ captured in a can.” It is available in Coconut Water Regular, With Natural Lime Flavour and With Natural Mango Flavour. Each 330ml can (rrp 79p) contains no artificial flavours or colours.

KP bakes up new Hula Hoops The ‘Better for you’ category is boosted this month with the launch of Hula Hoops Golden Hoops, a new baked offering from KP Snacks. The new SKU comes in a 50g Cheese-flavoured grab bag with an rrp of 69p. Golden Hoops contains 30% less fat than standard crisps, which is clearly highlighted front-of-pack. The launch is supported by a multi-million-pound marketing campaign that includes social and digital activation and in-store POS. TV advertising airs this summer. Matt Collins, Trading Controller Convenience and Wholesale, KP Snacks, commented: “Golden Hoops taps into the fast-growing market for ‘permissible’ snacking by offering shoppers a healthier, yet tasty option that can be enjoyed either at home or on the move.” Research from KP has revealed that sales are expected to deliver over £10m RSV in the first year. Collins said this presented retailers with a “huge opportunity” to grow their crisps and snacks sales. “We’re encouraging them to take full advantage by stocking up ahead of demand,” he concluded.

Frijj Loaded Choc Orange and Mango & Passionfruit Müller Müller is making two additions to its FRijj milkshake portfolio, expanding both its core and 40% Less Sugar ranges. Loaded Choc Orange refreshes the brand’s core range, while the 40% Less Sugar range receives a new Mango & Passionfruit variant.

Sweet Cinema style popcorn multipack Butterkist Butterkist’s unique Sweet Cinema Style popcorn has been launched in a new multipack format to cater for the on-the-go snacking demands of consumers. Available in 6 x 15g multipacks (rrp £1.69) and featuring Butterkist’s Sweet Cinema Style Best Ever recipe, the new pack size is ideal for health conscious consumers.

SLR | JUNE 2016

Hotlines.indd 38

McCoy’s flat crisps KP Snacks Renowned for its ridged crisps, McCoy’s is making a bold move by launching its first ever flat crisp. The range has been introduced to recover the declining flat crisp consumption amongst young male consumers. Available to convenience retailers in PMP and non-PMP 35g handypacks, the new range comes in BBQ Chicken and Cheddar & Red Onion, which is one of the best-selling flavours in the flat crisp market.

Sweet Chilli Mini Pork Pies Addo Food Group New Sweet Chilli Topped Mini Pork Pies have been introduced by Addo Food Group. Part of the Pork Farms Topped Pies range, the new variant is available now from McColls and Nisa at a £1 introductory price. Addo’s customer feedback revealed that variety and new flavours are high on the list of demands across the chilled savoury pastry category.

Always Discreet PMPs P&G Always Discreet, P&G’s brand offering a full range of products for sufferers of adult incontinence, is launching two new PMPs. Available to retailers now, Always Discreet Liners 24ct (rrp £1.99) and Always Discreet Small Pads 20ct have a £2.49 price mark. According to P&G research, adult incontinence is the fastest growing category within Health & Beauty, offering a real opportunity to increase sales to independent and convenience retailers.

www.slrmag.co.uk

09/06/2016 12:50:37

Product News & Media Watch Large block Galaxy Duet Mars The Galaxy Duet range will be extended to offer its Cookies & Cream, Caramel & Shortcake and Toffee & Popcorn variants in a new large block format. At an rrp of £1.39, the new range will build on the success of Galaxy Duet’s three popular singles. Mars believes the new range will bring a unique consumption experience to the chocolate block category with two flavours that consumers can enjoy separately or combined.

Starmix and Tangfastics Frenzy Carnival Haribo

Glacéau smartwater with sports cap Coca-Cola Enterprises A new sports cap format for glacéau smartwater is due to hit shelves this month, backed by a £5.5m ‘life distilled’ marketing campaign for the brand. The new sports cap, which will be available in 850ml packs, has been introduced to tap into consumer demand for instant consumption formats, where glacéau smartwater is ranked fifth. The ‘life distilled’ campaign utilises out of home and digital advertising.

Mentos Shakies Perfetti Van Melle Following the successful launch of Mentos Shakies singles packs, the brand is now introducing a new multipack containing four rolls. Each pack contains Strawberry Milk, Banana Milk and Peach Milk flavoured Mentos. PVM is encouraging retailers to stock Shakies alongside other fruit sugar confectionery to capitalise on impulse sales.

Starmix and Tangfastics Frenzy Carnival aim to give consumers the chance to experience exotic flavours. Starmix Frenzy Carnival will include a blue banana flavoured bear, a mango flavoured green egg, and a lime and mango flavoured ring. A lemon and lime flavoured cherry and a grapefruit and pineapple flavoured bottle will be amongst the new flavours that feature in Tangfastics.

Rockstar Pineapple & Coconut AG Barr

Protein bars Mars

A new Pineapple & Coconut variant has been added to the Rockstar Freeze range. According to AG Barr research, more than one in three ‘drink now’ soft drink purchases are energy drinks. The new product (rrp £1.19 adds a new tropical twist to the range and retailers should display the range prominently to drive summer sales.

To capitalise on the protein trend, Mars has launched a Snickers protein bar with 18g of protein and a Mars protein bar with 19g of protein (rrp £2.19). The new bars contain 200 calories and have the nutritional value you would expect from a standard protein bar. Around 17% of UK consumers now typically consume food or drink that contains protein as a snack between meals.

MEDIAwatch

Hotlines



PG Tips launches £3m investment to support green tea PG Tips is supporting its newly expanded Green Tea range with the launch of a £3m marketing campaign. Forming part of the existing ‘Keep It Tea’ campaign, the advert takes a light-hearted look at some of the health fads of 2016 before encouraging consumers to keep it simple and stick to tea.

Big dog evokes the Big Taste of Dairy Milk Cadbury has launched the third TV ad under its new ‘Tastes Like This Feels’ campaign for Dairy Milk. The advert is an attempt to bring to life the feeling of the taste of Cadbury Dairy Milk Big Taste range of tablets, which includes Toffee Whole Nut, Oreo Crunch and Triple Choc Sensation variants.

The shop’s shut, we’re off to feed the lions Richmond is extending the theme of its Britain’s Got Talent on-pack promotion for shoppers – by offering retailers the chance to win an experience day of their choice, including zoo keeping. The competition can be entered through Kerry Foods’ new online chilled category management advice centre.

Diet Coke’s limited edition is Absolutely Fabulous Diet Coke is partnering with ‘Absolutely Fabulous: The Movie’, which releases in cinemas nationwide on 1st July. To celebrate, the soft drinks brand has unveiled limited-edition Diet Coke Absolutely Fabulous themed packs, which will be available across the full Diet Coke range from mid-June, while stocks last.

Lineker takes the P in latest TV Spot Walkers has launched a new TV campaign to support its on-pack Holiday promotion. The advert features a daydreaming Gary Lineker declining the invitations of various holidaymakers with the excuse that he “needs a P”. It transpires that the football pundit is eating a bag of Walkers and needs the letter P to spell Cyprus and win a holiday.

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

Hotlines.indd 39

JUNE 2016 | SLR

09/06/2016 12:50:41

Feature

Crisps & Snacks

GET TASTY SALES WITH CRISPS & SNACKS If retailers are looking for reliability, then the Crisps & Snacks category is right up there. Last year saw 85% of households buy into the sharing snacks category, which has transformed sales. BY ÉMER O’TOOLE

E MCCOY’S DITCHES RIDGED CRISPS Renowned for its ridged crisps, McCoy’s is making a bold move by launching its first ever flat crisp. The range has been introduced to recover the declining flat crisp consumption amongst young male consumers. Available to convenience retailers in PMP and non-PMP 35g handypacks, the new range comes in BBQ Chicken and Cheddar & Red Onion, which is one of the best-selling flavours in the flat crisp market. Matt Collins, Trading Controller Convenience, KP Snacks says: “We know that the current flat crisp offering isn’t meeting consumer demand. Shoppers want a snack that will satisfy their appetite in between meals and are turning to other snack alternatives that are more filling. With this in mind, we’ve developed Thick Cut, a hunger-busting range of flat crisps that really delivers on flavour.”

TOP MERCHANDISING TIPS FROM MONDELÉZ Q Locate the on-the go range in a highly visible location to tap into the impulse opportunity. Q Savoury snacks can link with other categories, so consider link deals to maximise sales of both ranges. Q Lay the range out logically so products in the same sub-category are grouped together. Q Stock the best sellers. 40

SLR | JUNE 2016

Crisps & Snacks.indd 40

ating habits are changing, with snacking featuring more prominently in everyday food consumption as a result of increasingly busy lifestyles. This trend is most evident in the younger population who consume, on average, three snacks per day – according to Wrigley. Shoppercentric research found that consumers are often looking for a range of items when they visit a convenience store, therefore it is important to stock products from each segment to cater for all needs from sharing bags, nuts and popcorn (33% category sales), to hunger fill (26% category sales) to single serve snacks (11% category sales). Although the vast majority of snack foods are consumed at home or work, Mintel research reveals that snacking on-the-go still represents a staggering 1.5 billion occasions annually for adolescents and young adults in the UK. While c-stores continue to do a decent trade in smaller bags, the growth of sharing snacks remains ahead of the overall category with the rise of the Big Night In shopping mission. While the total value of the Crisps & Snacks market within the independent convenience channel stands at £96m (including Crisps, Snacks, Nuts and Popcorn), Savoury Snacks is the best performing area with Bagged Savoury Biscuits being the star performer this past year, creating new opportunities for retailers. With many shoppers looking for ‘value for money’ and one in four shoppers buying on impulse, PMPs allow retailers to demonstrate value. Walkers offers an extensive range of PMPs both in the sharing and single serve www.slrmag.co.uk

09/06/2016 17:37:31

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Crisps & Snacks

Feature

£1bn

“Customers shop by mission, so it is crucial that this is reflected in the way the range is merchandised, to drive sales and shopper footfall.” DAVID COSTELLO, HEAD OF CATEGORY AND SHOPPER MANAGEMENT AT BURTON’S BISCUIT COMPANY

is the total value of the savoury snacks category, which is already larger than potato crisps.

2.8% is the total growth of the evening snacking occasion over the past year.

1.5bn is the total annual value for on-the-go snack occasions for adolescents and young adults in the UK.

SLR | JUNE 2016

Crisps & Snacks.indd 42

categories. According to him! research, 61% of shoppers say knowing a shop sells PMPs makes them more likely to visit, and with sharing occasions becoming increasingly popular, £1 PMPs are growing at 18%, now owning 54% of the segment. Consumers’ views towards the idea of ‘healthy’ snacking has evolved driven by the innovation within the category. “The choice no longer has to be between a healthy but bland snack or a non-healthy but tasty product. There is a real opportunity for brands like Ritz, which have a strong heritage in baking, to make a mark on the category through exciting innovation that focuses on answering this trend for better for you products,” says Susan Nash, Trade Communications Manager at Mondeléz International. Changes in lifestyles mean that consumers snack more often, so brands like Ritz have created hybrid products that taste good but are better for you as a result of the way they have been made, such as being baked. Ritz Crisp and Thin is available in both sharing bags and individual formats for onthe-go snacking, and has recently added the Sweet Chilli variant to its impulse range, with PMPs available across the on-the-go range. “With shoppers increasingly leaning towards baked savoury snacks, it is crucial that these are merchandised together in a prominent position, with enough space to enable them to grow,” says David Costello, Head of Category and Shopper Management at Burton’s. Some consumers are looking for permissible snacks, which are driving a shift away from

HEALTHY SNACKS The demand for healthier snacks has led to a range of new product launches across baked snacks (such as crackers and thins) and popcorn, which has been utterly transformed in the last year and is now a must-stock for all convenience retailers. Burton’s Fish ‘n’ Chips and Cathedral City Baked Bites meet demand for products that consumers regard as both permissible and convenient. The fact they’re ‘baked not fried’ ticks the better for you box. Yushoi Snapea rice sticks are available in Sweet Chilli & Lemon, Soy & Balsamic Vinegar and Smoked Salt & Szechuan Pepper and the pack sizes allow for all-important portion control.

www.slrmag.co.uk

09/06/2016 17:37:32

VISIT WWW.COUNTSFORMORE.CO.UK

TO DISCOVER THE 3 SIMPLE STEPS TO SUCCESS

Right range

Top 30 singles account for 55% of sales2

Right display

Crisps and snacks shoppers only spend 20 seconds at flxture3

Right location 1 in 4 shoppers buy on impulse4

I AM REALLY PLEASED, FANTASTIC WORK! Violeta Lekgegaj, owner, A&D Mini Market, Northampton

A&D Mini Market Northampton Walkers savoury snacks products EPOS Data July 2015 â&#x20AC;&#x201C; January 2016 2Nielsen Indies & Symbols YTD 08.08.15

Shopperpedia August 2015 4Nielsen, Total Coverage, MAT 19.09.15

Walkers_A4 2.indd 1

11/04/2016 14:09

Feature

Crisps & Snacks

“Over the past ten years, we have seen a growing trend where a quarter of consumer occasions in the crisp category have been lost as consumers move towards options that are more balanced in terms of health and wellness.” SUSAN NASH, TRADE COMMUNICATIONS MANAGER AT MONDELÉZ INTERNATIONAL

97%

of households buy items from the Crisps, Snacks and Nuts category at least every fortnight.

SLR | JUNE 2016

Crisps & Snacks.indd 44

snacks that are considered unhealthy — for example, crisps are falling by 5.2% in value, according to 2015 Kantar data. This has led to a rise in demand for snacks that are baked and seen as more wholesome, with IRI research revealing that savoury snacks and popcorn are growing at 20% and 25.8% respectively. According to Walkers research, single serve snacks currently account for the majority of snacking segment sales, making it essential for retailers to stock the right core range and best-sellers. Making grab-bags of Bagged Savoury Snack products available within the meal deal or snacks to go area and stocking proven bestsellers and the right NPD will also generate incremental sales from the fixture. While sharing and single serve missions are stronger within convenience, multipacks account for over 10% of total Crisps & Snacks sales within the impulse sector. Additionally, ‘Party/Sharing Snacks’ is a burgeoning sector, growing 9% YOY. Walkers has introduced a first to the sharing segment with Tear ‘n’ Share, a unique bag that turns into a bowl (rrp £1.99). The new range a brand new pack that can be transformed into a unique sharing bowl for family and friends to open, share and enjoy straight from the pack, an innovative first for the market. Tear ‘n’ Share is available in Lightly Salted, Salt & Malt Vinegar, Cheddar Cheese & Onion, Sticky BBQ Ribs, and Sweet Chilli. Crisps and snacks is a category that will always sell well in c-stores but that doesn’t mean retailers should become complacent. A major trend is the drive for healthier snacks and with a range of product launches across bakes snacks and popcorn, the category has been utterly transformed in more recent years.

WALKERS MIXUPS Walkers MixUps offers a selection of different flavours and textures all mixed together in one bag, providing shoppers with a whole new taste experience and even more family fun. The range is available in three product formats – Snacks, Popcorn and Crisps. Within the first 11 months of launching, Walkers MixUps drove 14.4% penetration to the market. A new meaty edition sharing bag has an rrp of £1.99 and is set to appeal to a wide range of shoppers.

MERCHANDISING TIPS FROM WALKERS Q RANGE To maximise on sales, retailers should stock a range of the best-selling single-serve and sharing packs — and ensure it’s a range that is right for them — for example, if you only have space for five single lines then Walkers recommends you stock the top five bestselling single serve lines. If you have room for 30, then stock the top sellers accordingly. Q DISPLAY Crisps and snacks shoppers only spend 20 seconds at the fixture so why not site crisps and snacks at till point, so shoppers are able to make impulse purchases. Siting crisps and snacks at till point can increase category sales by +2.5%. Q LOCATION Cross-merchandising with other relevant product categories will allow retailers to boost basket spend.

www.slrmag.co.uk

09/06/2016 17:37:34

W E N

FULLY FLAVOURED FLAT CRISPS Â® Registered Trade Mark.

AVAILABLE IN MULTIPACKS AND HANDYPACKS

6311 Thick Cut A4 trade ad (HP&MPs).indd 1

08/04/2016 10:07

Feature

Cider

SALES SOAR WITH SUMMER CIDER

While sales of cider begin to rival beer, retailers are faced with the challenge of managing their cider offering with limited space and a whole load of products to choose from. Cider has a long standing association with summer so retailers should plan accordingly. BY ÉMER O’TOOLE

“There’s a great deal of interest around food-matching drinks – not just wine, but beer and ciders which also offer a wide spectrum of flavours to complement different dishes.” DEBS CARTER, MARKETING DIRECTOR OF ALCOHOL AT SHS DRINKS.

cross the independent trade, many purchases are bought for consumption within one hour so it is crucial that the best-selling lines are clearly merchandised within the fridge and given a decent amount of space. Established cider brands are always bestsellers during the warmer months and retailers should focus on key well-known lines during this time. Matthew Jamieson, Brand Manager at Tennent Breweries, says: 46

SLR | JUNE 2016

Cider.indd 46

“Weather has a major impact on cider sales – but it is important that we work towards a category that can offer something for every drinker, throughout every season – ensuring well-rounded sales throughout the year.” The growth of fruit has added considerable weight to the cider category over the past few years, providing scope for innovative and exciting flavours that appealed to the cider drinker. However, Diageo says this steady growth has started to slow down. While

PIMM’S CIDER CUP Following the launch of Pimm’s Strawberry with a Hint of Mint, the brand revitalised cider with the launch of Pimm’s Cider Cup in 2015 and quickly became the top-selling cider innovation after just eight weeks in the market. Pimm’s Cider Cup sees the union of Pimm’s No.1 and British cider, blended with a hint of classic Pimm’s strawberry and cucumber flavours, best served in a pint glass over ice. Fruit cider is the fastest growing segment within cider, and flavour and serve innovations have been a driving factor in the incremental growth of the category overall. Pimm’s capitalised on this by infusing it with the classic spirit, and opening a potential sales opportunity of over £14m across total trade. With an rrp of £2.29 Pimm’s Cider Cup has an ABV of 4%.

www.slrmag.co.uk

09/06/2016 12:43:47

TAKE YOUR TASTEBUDS OFF ROAD WITH OLD MOUT CANS SMALL CAN, BIG OPPORTUNITIES

•

Old Mout is driving 35% of World Cider growth in the Off Trade*

•

£42m is now spent on 330ml Modern & World Cider cans in the Off Trade*

•

New 10 and 4 fridge packs of Old Mout 330ml cans appeal to shoppers for a wide variety of occasions, like parties, on-the-go and barbecues

STOCK UP NOW *Nielsen MAT 27.02.16

oldmoutcider.co.uk 70621_OMU_SLR_AD.indd 1

ESTABLISHED IN NZ. MADE IN EU.

29/04/2016 10:27

Feature

Cider

these on-trend fruitier variants may have once appealed to the younger adults’ sweeter palette, it would appear that consumers are beginning to tire of them in the same way that they moved away from alcopops in recent years. This is because drinkers are now favouring a more authentic taste, and attention is moving back towards the apple segment — which currently owns 64% of the value and 75% of volume in the total off-trade market, according to Nielsen market data. It is predicted that this renewed interest in apple will be a primary focus for the cider category this summer. Diageo research reveals that frequent cider drinkers are more likely to experiment by trying something new, so it is worth appealing to these shoppers to grow impulse sales. “Range and merchandising really needs to reflect a store’s shopper profile,” says Debs Carter, Marketing Director for Alcohol at SHS Drinks. “There’s been a lot of shelf space being given to the new wave of cider brands targeted at 18 to 30-year-olds, but almost twothirds (60%) of cider is consumed by the over 35s and a third of all cider consumers are actually aged 50+ and that percentage is growing.” It is, therefore, essential that the cider range includes heritage brands such as Merrydown which appeals to the established generation of older cider consumers who outnumber 18 to 30-year-old consumers by around 2:16. Cider should always be stored chilled to enable fast purchases and cater to the nature of impulse customers, especially during the summer months.

REKORDERLIG COCKTAILS

STIVY’S IRON BREW CIDER

Premium Swedish brand Rekorderlig Cider is set to continue its innovative approach to the flavoured cider category with the launch of its new range of Cider Cocktails. The range, which will be available in packs of 12 x slim 250ml cans in the wholesale channel and individually in the multiples, is an exciting evolution from the brand’s existing range offering a truly premium drinking experience. Rekorderlig will launch three new cocktail variants combining Rekorderlig Cider with spirits and Passionfruit Gimlet, Swedish Punch, or Wild Berries Bramble. The new cocktail range will be the first of its kind in the category offering a truly modern, premium cider cocktail. With a 5.5% ABV, the new range showcases the versatility of Rekorderlig Cider and is set to support cider fans in their flavour journey. The range is set to appeal to a more premium driven consumer than existing products on the market, offering Rekorderlig Cocktails an opportunity to command a unique position in the sector.

Stivy’s has introduced a new Iron Brew flavour to join its Kola Fruits, Fruit Salad and Cherry Berry lines. Graham Coull, a Director of VC2 Brands, which owns of the Stivy’s brand, said: “The launch of Stivy’s Iron Brew cider has been great fun – getting the unique flavour spot on required a lot of tasting of different recipes, before we knew that we had got it right. I am delighted with the taste and appearance of Stivy’s Iron Brew cider which really delivers, and makes probably the best tasting Iron Brew in the World.”

DIAGEO’S TOP CIDER MERCHANDISING TIPS Ensure your fixtures and fridges are easy to shop, by following these simple principles: 1 Blocking Site all category brands together. This helps shoppers absorb and filter what a store has to offer quickly and easily. Ideally, faster selling categories/products should be at eye level. 2 Signposts Place top sellers in the centre of the category as they act as ‘anchor’ brands to help shoppers identify a category. 3 Clear Pricing Visible pricing is a key factor in the decision to purchase. 48

SLR | JUNE 2016

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Lip lickâ&#x20AC;&#x2122;n good 3 Amazing flavours

Just in time for summer

Buy any 6 cases (8x500ml) Get 1 case any flavour plus POS FREE! Available at all quality wholesalers or call 0800 073 0901 or email stivys@vc-2.com www.stivys.co.uk

How do you like them apples

drinkaware.co.uk

Feature

Summer Soft Drinks

A THIRST FOR SUMMER SOFT DRINKS One of the better known equations in the convenience industry is that when temperatures go up, soft drinks sales go up. In fact, a hot spell can provide retailers with a massive spike in sales — a decent summer across the board can make a retailer’s year.

SLR | JUNE 2016

Summer Drinks.indd 50

DONNA PISANI, TRADE COMMUNICATIONS MANAGER AT COCA-COLA ENTERPRISES

72%

BY ÉMER O’TOOLE

etailers have to be well-prepared and make sure they have everything they need to make the most of the summer season — it is a key sales opportunity for convenience retailers as the hotter weather drives shoppers into store. A well-stocked fridge with chilled drinks is vital during summer. There is also a growing S RMAT CONVENIENCE FO opportunity to feature i ded Sugar Min The Vimto 250ml No Ad more No Added the g atin at for rehydr Sportscap bottles are gre Sugar small PET r me during the sum kids on family days out drinks as these are ing form currently outper holidays. Vimto RTD is particularly popular ue. val increase in the market with an 18.4% with families. Open nomical choice eco an is ash Squ deck chillers will with get for shoppers on a bud encourage people to g etin smaller pack formats me buy more soft drinks s ard the increasing trend tow as they are easier to ck sto to convenience shopping shop and they enable ial soc al up or share at season you to display a large and s occasions like picnic choice of chilled barbecues. products. However, you can make soft drinks work for you from the main fixture as well. Take home products account for 24% of sales, according to IRI marketplace, and remain hugely important as they are higher value items which encourage footfall and loyalty. AG Barr continues its move away from sugar with the launch of Rubicon Spring, a range of products combining sparkling spring water with fruit juice. Each of the four variants – Strawberry Kiwi, Lemon Lime, Orange Mango and Black Cherry Raspberry

“Sales of soft drinks during summer 2015 reached £372m in indies and symbols, accounting for 28% of annual sales, underlining the strength of the category in this channel.”

of drink now sales come from carbonates.

HEALTHY DRINKS The trend towards healthier lifestyles and the growth in popularity of No Added Sugar variants has made a significant impact on merchandising. Therefore, retailers are dedicating more space to ‘health and wellness’ products to ensure maximum visibility, with pure juices and smoothies being assigned their own segment to show a block of healthier alternatives. Increasing consumer health concerns have affected shopping habits across all soft drink categories. Nicols has increased its No Added Sugar variants across its RTD still juice ranges including Vimto, Levi Roots and Panda. Appealing to a health conscious consumer, Feel Good’s range of 750ml Sparkling Juice Drinks perfectly meet the current trend for healthier drinking. The 100% natural range includes Cloudy Lemonade, Cranberry & Lime, Orange & Passion Fruit, Raspberry & Passion Fruit, and Apple & Peach. All Feel Good Sparkling Juice Drinks are a blend of pure fruit juice and sparkling water.

www.slrmag.co.uk

09/06/2016 12:53:03

G RAB T H E C O L L EC T IO N

Enjoy some Absolutely Fabulous sales. Our limited edition Absolutely Fabulous themed designs will be available across all Diet Coke formats during June and July. Stock up now and ensure your sales look better than ever.

ÂŠ2016 The Coca-Cola Company. All rights reserved. DIET COKE and the CONTOUR BOTTLE are registered trademarks of The Coca-Cola Company. Absolutely Fabulous is a trademark of the BBC/Saunders & French Productions Ltd. ÂŠ2016 Twentieth Century Fox Film Corporation. All rights reserved.

COC0771 Diet Coke Ad Page A4_AW4.indd 1

29/04/2016 12:32

is the total worth of Scotland’s soft drinks category.

– has no added sugar, contains vitamins and green tea extract and is made with natural flavours and colours. A 500ml bottle contains 15 calories or less. “We undertook our biggest ever research programme to fully understand the key drivers behind changing attitudes towards health,” explains Adrian Troy, AG Barr’s Head of Marketing. Thirsty shoppers will most likely be looking for immediate, cold refreshment so it’s vital that chillers are well stocked with single-serve formats throughout the day with a range to satisfy all tastes. Sharing formats should not be neglected as occasions such as barbecues and picnics encourage spikes in demand for larger bottles and multipacks too. Key brands and new variants should be highlighted with seasonal POS at the chiller, till and, importantly, outside the store to disrupt shopper behaviour and encourage tradeup within the range. Multi-buy promotions can also help to drive a higher basket spend. Those who shop in c-stores generally perceive PMPs to be better value so, during the summer, this kind of format can encourage shoppers to ‘grab and go’ RTDs when they want to quench their thirst on a hot day. PMPs in soft drinks have become an important factor in purchase decisions for convenience retailers and to

£694M

Summer Soft Drinks

Feature

DRENCH REFRESHES THE ADULT SOFT DRINKS CATEGORY Aimed at adult consumers looking for more sophisticated soft drink choices, Britvic has unveiled a complete relaunch of its popular juice drink, Drench. Kevin McNair, GB Marketing Director, Britvic Soft Drinks, explains: “We know that the typical adult consumer (30+) is leaving the soft drinks category in favour of healthier options such as tea, coffee and water but still wants something tasty and refreshing, so there is certainly a need for a relevant grown-up solution to keep these drinkers in the category. We’re confident that the reformulated recipe and extensive development that we’ve put behind the relaunch of Drench will drive sales for retailers in store.” The new and improved recipe, which includes no artificial sweeteners, colours or flavourings, benefits from a combination of juices and spring water, giving it a generous flavour hit. Through its continued use of naturally sourced stevia sweetener, the liquid has also been reformulated to contain less sugar than before in response to the target consumers’ preferences. As a result, the front-of-pack traffic light labelling on the new variants will be amber. The new flavours – Peach & Mango and Strawberry & Lime – will join the reformulated Pear & Blueberry variant, all of which have all been specially developed in line with consumer feedback and appeal to a grown-up taste palette. The relaunch is being supported by a £2m consumer campaign which will see national outdoor and in-store activation launching this month to drive further interest and awareness of the brand and its revitalised offering.

EXOTIC FLAVOURS Consumers’ tastes have also changed as they become more experimental. This has led to significant growth for tropical and exotic flavours and this trend is set to continue into summer and beyond with Levi Roots Soft Drinks range helping retailers to meet the demand. Levi Roots Carnival Flava comes in 500ml ready to drink £1 PMPs. It is set to replace the Tropical Punch flavour in the current portfolio. The Tropical flavoured carbonates sector is growing at +3% YoY. Levi Roots Soft Drinks has £4.7m sales value, with the brand growing at 7%.

SLR | JUNE 2016

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water great idea. £21.9m in Great Britain* fastest growing immediate consumption water brand** now available with 850ml sports cap stock up for summer

COC0772_Smartwater Summer Ad_A4_AW1.indd 1

23/05/2016 09:33

Feature

Summer Soft Drinks

“Don’t underestimate the importance of offering chilled soft drinks during the summer months. ‘Drink now’ sales account for more than three quarters of all soft drinks sales in impulse – and consumers prefer these drinks to be chilled.” ADRIAN TROY, HEAD OF MARKETING AT AG BARR

recognise this Nichols has significantly grown its PMP offering across its brands. Launched specifically with independent retailers in mind, Robinsons 1-litre single concentrate will be available at £1 throughout summer. The PMP will be available across a wide variety of flavours including Orange, Apple & Blackcurrant, Summer Fruits, Pineapple, Mango & Passion Fruit and Orange & Pineapple, the newest addition to the PMP format. Coca-Cola research reveals that one in five adults are now choosing not to consume alcohol, so soft drinks provide a major opportunity for independent retailers to increase their sales to those enjoying nights at home, especially during the summer months. As the impulse channel gains consistent ground in the soft drinks category, increasing frequency of purchase in convenience stores through promotions that support top-up and impulse missions is crucial.

RUBICON ‘REINVENTS WATER’ WITH NEW SPRING RANGE AG Barr is reinventing water with new Rubicon Spring, a range of products which are healthy like water, but ‘big on taste.’ Backed by a £2m marketing campaign including TV advertising, the Rubicon Spring range combines sparkling spring water with fruit juice and has 15 calories or less per bottle. Each of the four variants – Strawberry Kiwi, Lemon Lime, Orange Mango and Black Cherry Raspberry – has no added sugar, and contains vitamins and green tea extract. “We undertook our biggest ever research programme to fully understand the key drivers behind changing attitudes towards health,” says Adrian Troy, AG Barr’s Head of Marketing. “The research highlighted an 18% growth in the number of carbonates shoppers who are also buying water. Many of these consumers are primarily looking to reduce their sugar and calorie intake. “What makes Rubicon Spring so exciting is that it appeals to consumers across different categories. For those wanting a healthier alternative to a fizzy drink or fruit drink, it has all of the low calorie and healthier benefits of spring water. And for those coming from water or flavoured water where taste can often be bland and disappointing, it has a big hit of Rubicon flavour.” Shoppers confirm that when they are looking for something healthier, they look at the water fixture in the chiller. Therefore, AG Barr recommends that Rubicon Spring is stocked in the chiller cabinet, positioned between carbonates and water.

AG BARR SNAPPLE AG Barr has announced a major marketing and innovation programme for the Snapple brand. The drive, which began in last month, will focus on three key areas; impactful new packaging for the premium brand, the launch of ‘no added sugar’ NPD including Iced Tea products and a sampling campaign and digital activity designed to drive awareness and trial. Research shows that zero to mid-calorie drinks now make up over a third of still and juice drink sales in the UK and Snapple’s new ‘low calorie’ Raspberry Peach fulfils this consumer need. Available in 473ml glass it is a great incremental sales opportunity. Snapple’s ‘no sugar’ Iced Tea range will appeal to those consumers looking for a healthier option as it contains just 10 calories per 473ml bottle. It is made with black and green tea leaves to provide a combination of real tea and real fruit flavour. Snapple will be available in the UK in three refreshing flavours (Lemon, Peach and Raspberry) and two different pack formats. The premium 473ml glass bottle is perfect for the sit down and serve occasion, while the new 330ml re-sealable prisma packs cater for the fast-growing on-the-go consumption occasion.

SLR | JUNE 2016

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SET FOR SUMMER? STOCK UP TODAY ON THE UK’S NO.1 SQUASH BRAND1

• £5m multi-channel campaign in June & July • Proud partners of Wimbledon, watched by 29 million Britons in 20152 • Robinsons no added sugar is consumed in more households than any other low sugar soft drink3 1. Nielsen Scantrack, Total Coverage, Squash category value sales, 52 weeks to 09.04.16 2. AELTC 2015 3. Kantar Take Home Purchase Panel, Household Penetration %, 52 w/e 27.03.16. BRV331641_16 ROBINSONS and the Robinsons Arch device are registered trademarks of Robinsons Soft Drinks Limited. Every bottle of Robinsons orange squash contains a minimum of 10% juice from concentrate.

BRV331691 SLR Wimbledon Trade Ad A4 V00.indd 1

04/05/2016 16:45

Feature

E-cigs

NEW E-CIGS LAWS

The introduction of the new European Union Tobacco Product Directive will affect the marketing, production and sale of e-cigs, and will have a big impact on Scottish independent retailers. BY ÉMER O’TOOLE

KEY DATES Q 20th June 2016 – The introduction of advertising and promotion restrictions. Q 20th Nov 2016 – The production of all non-compliant stock must cease (affecting size, ingredients, consistency of dose and packaging with health warnings). Q 20th June 2017 – The sale of noncompliant stock is no longer allowed.

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SLR | JUNE 2016

une was a big month for the UK’s e-cig market as it saw the first round of changes from the EUTPD2. From the 20th of June manufacturers are no longer able to advertise on TV and radio to consumers. Next year, manufacturers will be required to stop producing non-compliant stock and it will become illegal for retailers to sell it. With the impending arrival of new legislation, stocking the leading brands is essential to long-term sales success. Blu is the top-selling tank and liquid brand and the most widely sold e-cigarette brand in the UK, and with the release of its next generation closed system product range and global branding, it aims to drive long-term growth. “Combined with the right support and advice for retailers, we will continue to help them grow their sales,” explains Jennifer Roberts, VP of Customer Marketing at blu. A range of new POS and display solutions have been developed to go alongside the launch

“At blu we welcome most of the changes – and we think retailers should too. We believe the legislation will improve the quality of products available in the market, leading to increased consumer trust and confidence in buying e-cigs.” MARC MICHELSEN, SVP COMMUNICATIONS AND PUBLIC AFFAIRS AT BLU

of the upgraded product and new branding, including gantry door stickers, hampers, posters and pull-up banners. Head of Communications at JTI, Jeremy Blackburn, says that as consumer knowledge and understanding increases, “it will become more important for retailers to make sure they are up to speed with it.” www.slrmag.co.uk

09/06/2016 12:51:42

E-cigs

Feature

£154M

is the total value of the UK e-cigs category.

JTI’S LOGIC PRO Reinforcing its position within the emerging products sector, Logic PRO sees JTI broaden its range and extend into the e-cig tank market. The tank market has grown by 161% in the last year, according to Nielsen research, and is the fastest growing sector within the e-cigarette category. Using integrated coil technology, Logic PRO provides a ‘no spill, no fuss’ device with the use of pre-filled Logic PRO e-liquid capsules. Designed to ensure a high quality vaping experience, the vacuum-sealed capsules are available in four flavours — Brazilian Bold Tobacco, Ice Fjord (Menthol), Red Cherry and White Vanilla — in different nicotine strengths. Jeremy Blackburn, JTI Head of Communications, comments: “Logic PRO offers vapers a sleek design, ease of use, the latest technology and above all, quality from a brand they can trust. With an estimated two million regular adult vapers in the UK, Logic PRO meets the demand for the 85% of those who now use Tank e-cigarettes. “Already a hit in the US, and New York’s number one brand, the launch of Logic PRO offers premium vaping at an affordable price and is a must-stock for switched-on retailers that are keeping up with market trends.” Features of the ergonomically designed Logic PRO device include a convenient e-liquid window for visibility, a long-lasting battery with quick charge and a 5-click lock/unlock facility, allowing the user to secure the device safely between uses. For more information on Logic PRO, retailers should speak to their local JTI representative or call the Logic help desk on 0800 112 3401. Retailers can also visit www.jtiadvance.co.uk for further information, support and guidance on tobacco and e-cigarette retailing.

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EUTPD RETAILER GUIDES LAUNCHED BY BLU Blu has launched a guide for retailers demonstrating how they can prepare for, and make the most of the opportunities that the EUTPD changes present. Jenni Roberts, VP Customer Marketing at blu, says: “It is estimated that around a third of e-cigarette sales go through traditional retail, with two thirds sold online and in vape shops, but things will change over the next 12-18 months. This presents a huge opportunity for convenience retailers to attract new customers by highlighting their e-cig range and improving their category understanding.” Using blu’s expertise as one of the leading e-cigarette brands, the four-page guide includes the following sections: Q The e-cigarette category in a nutshell: highlighting key stats on why e-cigarettes is a category that should not be ignored Q The EUTPD opportunity: showcasing why the new legislation is something retailers should embrace Q How to prepare for the opportunity presented by the upcoming legislation Q Key dates and actions Q What you can still do in store Q What you will no longer be able to do in store Q What a compliant product looks like Q E-cigarettes explained: defining key terms and the different types of e-cigarettes Q Top merchandising tips: What retailers can do to boost their sales Q The blu range

“E-cigarettes remains a thriving category and a lucrative sales opportunity, having doubled in size in the last two years.” JENNIFER ROBERTS, VP CUSTOMER MARKETING AT BLU

www.slrmag.co.uk

09/06/2016 12:51:45

Easy to use E-Liquid capsules with integrated coil.

No spill. No fuss.

Available in tobacco, menthol, cherry and vanilla.

For more information on Logic Pro, retailers should speak to their local JTI representative or call the helpdesk on 0800 112 3401. Retailers can also visit www.jtiadvance.co.uk for further information, support and guidance on tobacco and e-cigarette retailing.

Feature

Cereal & Cereal Snacks

CEREAL THRILLERS

With the rise of breakfast on the go, cereal bars and cereal snacks have proved disruptive in the grocery industry, creating an entirely new category. This area has sales potential if it is marketed well. BY ÉMER O’TOOLE

HOW TO SELL BREAKFAST BISCUITS Q Biscuits are an impulsive category, particularly when it comes to on-the-go biscuit snacking, so the range should be located in a highly visible area to unlock incremental sales. Q Retailers should use manufacturers’ POS to highlight products, particularly when introducing new lines. Q Retailers should make the most of manufacturers’ media investment by stocking and displaying products when activity is running. Q Biscuits can link with a number of other categories, such as hot beverages. Retailers should consider link deals to maximise sales for both ranges and help drive impulse purchases.

260M

UK breakfast occasions every week

19%

of consumers eat breakfast biscuits regularly for breakfast

“The growth and success of belVita has been driven by incremental NPD recruiting different consumers to a new occasion for the category.” SUSAN NASH, TRADE COMMUNICATIONS MANAGER AT MONDELÉZ INTERNATIONAL

SLR | JUNE 2016

Cereal Bars.indd 60

ccording to Nielsen, the UK Breakfast biscuit market is now worth £81.6m. More than half of adults opt to eat breakfast out of home, with two out of every 10 consumers eating out two to three times a week, so as well as buying breakfast staples to consume at home, people also want to grab food to eat on the go with demand for freshly baked items strong and growing. Breakfast biscuits are key for the morning and are well placed as 82% of them are consumed between 6am and 10am. Only 48% of cereal bars are consumed at this time, which shows they meet different consumer needs. belVita Breakfast is available in convenient single packs, in several variants: belVita Strawberry Duo Crunch, belVita Honey & Nut and belVita Crunchy Hazelnut. belVita Crunchy Hazelnut singles are thick and generously packed with pieces of wholesome and chunky hazelnuts, offering a delicious taste and a different texture to the rest of the range. belVita breakfast biscuits have a high content of slowly digestible starch, which is a slow release carbohydrate. Consumption of foods high in slowly digestible starch raises blood glucose concentration less after a meal compared to foods low in slowly digestible starch. belVita Breakfast’s latest innovation, Soft Bakes Choc Chip, launched into the convenience channel this June in a single portion PMP and non-PMP formats. The product is a deliciously soft and chewy baked biscuit made from five of the finest wholegrain and choc chips. A successful cereal snacks offer is big business for local retailers, and there are two key areas to master – sales for later consumption, and increasingly, sales for immediate consumption. Creating an ‘on the go’ and ‘in the house’ breakfast section in the store will be vital to sales growth for both areas. www.slrmag.co.uk

09/06/2016 12:53:35

an On th d sa TV ro m ug pl ho ing ut

20 16

a belVit ast. kf Brea ding a e l gory Cate at rate repe * 62%

New

New belVita Soft Bakes from the no.1 breakfast biscuit** National sampling campaign reaching over 2 million consumers

Stock the range today For great category advice go to www.deliciousdisplay.co.uk Retailers are free to set their own prices. Non-PMP packs available. *Kantar data 2016. **The Nielsen Company, 06.2.15.

UTC

ANYTHING GOSE

Nothing says tasty beer quite like a couple of men hanging about in a field with a salmon – that much is obvious. And when UTC first saw this photo it reminded him of the first time he ever caught sight of the young woman who was to become Mrs UTC. Their eyes met across a crowded betting shop floor at William Hill’s; he strode across purposefully and put on his best winning smile, only to be greeted with: “The last time I saw a face like that it was hanging out of a poacher’s pocket.” Ah, memories….So, anyway, these two guys in a field with a glass of beer and a salmon. One is from Fyne Ales and one is from the Loch Fyne Oyster Bar – we’ll leave it to you to work out who’s who – and they’ve joined forces to create a beer that goes perfectly with salmon. It’s called This Gose. Get it? This beer gose with that salmon. Clever, eh? The beer has been brewed with salt, coriander and lemongrass. Yes, that’s what UTC thought too.

JELLY BEAN AND GONE

Famous around SLR Towers for his sweet tooth, UTC was dismayed last month to discover that he’d missed National Jelly Bean Day on April 22nd. But rather than mope around ticking off the days till National Jelly Bean Day 2017, he thought he’d share some “fun” facts about jelly beans, while mowing his way through a hanging bag of Haribo Tangfastics in protest. Once he realised there actually aren’t any “fun” facts about jelly beans, he thought he’d just share some facts about jelly beans. So here goes. It can take 21 days to create a single jelly bean with each part of the process enhancing the flavour and texture and ‘resting periods’ in between. Not impressed? Try this one for size: Blueberry flavour was created to match the blue in the American flag at the time of Ronald Reagan’s presidential inauguration in 1981. If neither of those facts get your juices flowing, then you’re on your own.

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SLR | JUNE 2016

WHAT TO ADD TO WHISKY? MORE WHISKY Upon opening up his inbox the other morn, UTC’s eyebrow was duly raised at the first line of a press release which could have been to all intents and purposes a description of his good self: “Driven by a desire to buck convention and bring an enjoyment of whisky to an untapped market”. Oh, aye, he thought. His eyebrow was promptly unraised however when he learned that Glasgow-based drinks mob Dram2O’s plan to introduce whisky to an untapped market involved cocktails. With stuff in them. Like strawberry. And vanilla. And mint. The final straw was a listing in Aldi. *hits delete*

DRIPPING TAPS OR FAKE BAPS?

Oh aye, thought UTC to himself the other day when a press release landed on his desk entitled ‘People in Scotland are more likely to check handymen than cosmetic surgeons’. He does love a sales pitch thinly disguised as a piece of market research, you see. His interest was duly piqued however, so he read on. Apparently, according to Dr Foued Hamza, a “cosmetic sculptor with an international reputation”, Scots are more likely to spend time thoroughly researching household handymen than cosmetic surgeons or healthcare professionals. The man is clearly a genius, thought the auld yin, to work out that Scottish people are more likely to be looking for plumbers than plastic surgeons. But he persevered. He was relieved to discover however that far from being interested in trying to drum up new business, Dr Hamza was actually only concerned about the risk of poor, innocent civilians suffering at the hands of “unscrupulous practitioners”.

www.slrmag.co.uk

09/06/2016 12:35:40

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