SLR June 2019 by 55 North

BLAKE GLADMAN

Authenticity key in the ‘experience’ economy

KATHRYN NEIL

JUNE 2019 | ISSUE 194

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DESTINATION: PROFIT Why should customers pass another store to get to yours? Because yours is a destination store with a differentiated range of products and services.

SGF Healthy Living Programme makeover

MYSTORE+

New app to reward retailers

OUR MAN IN HAVANNAH

Profile of CJ Lang’s newest Spar store

DRS SUCCESS

DRS trial recycles 500kg of plastics and cans

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June 2019

Contents

Contents ISSUE 194

NEWS p4 p5 p6 p8 p10 p22 p24 p26

Wellbeing Minister for Public Health visits Spar store to see Healthy Living Programme in action. Deposit Return Scheme Glass is an unexpected – and unwelcome – addition to Scotland’s forthcoming DRS. New Stores The new David’s Kitchen store in Kirkcaldy moves one step closer, as proposed site is secured. Awards A big night for Booker at the HIM Awards, with three wins for Premier and two for Budgens. News Extra Scottish Wholesale Assocation Ambitious plans for future revealed at SWA conference. Product News KP overhauls its flagship nuts brand, and gets behind it with a £1.3m marketing campaign. Off-Trade News The keys to the Wellpark brewery are up for grabs in Tennent’s latest on-pack promotion. Newstrade Reach hits retailers with “second body blow”.

INSIDE BUSINESS p27 Research Digest New research suggests own-label products may be losing relevance in convenience. p28 Store Profile Spar Havannah St CJ Lang’s latest newbuild is more than an outstanding store – it’s a statement of intent. p34 #ThinkSmart3 An innovative new app hopes to bring brands and local retailers closer together than ever before. p36 Healthy Living The SGF Healthy Living Programme gets a new logo plus a raft of new POS and marketing materials. p38 DRS Made Easy For Local Retailers A three-store reverse vending machine trial finds retailers and shoppers have embraced DRS enthusiastically and positively. p40 SGF Mini Summit There was plenty for local retailers to sink their teeth into at the Federation’s recent event. p44 The Experience Economy Sustainability and ethical stance are increasingly important to today’s shoppers when choosing which stores to use, says Blake Gladman. p46 Hotlines Irn-Bru Energy is the hottest new product in Scotland this month, if not in the entire year. p54 Under The Counter Asparagus gin? The Auld Yin’s pee smells funny enough as it is. FEATURES p48 Summer Drinks Special It’s time to take a hard look at soft drinks to see which merit some chiller space this summer. p52 Food-to-go Grabbing a slice of the biggest trend in convenience retailing is easier than ever.

ON THE COVER p14 Destination Stores Do fierce competition and everrising costs mean it’s time to take a fresh look at creating ‘destination stores’?

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News HEALTHY LIVING Dundee schoolkids are apple of MSP’s eye

Food watchdog wants better allergen info Food Standards Scotland has called for improved allergen information on pre-packed foods for direct sale, such as sandwiches which are made and packaged on the same premises where they are sold. The move follows the case of Natasha Ednan-Laperouse, who died after eating a Pret a Manger baguette that contained sesame. The teenager was allergic to the unlabelled ingredient.

EDGEPoS adds electronic shelf label functionality Northern Irish EPoS provider Henderson Technology has announced the integration of SoluM electronic shelf labels into its EDGEPoS software. Ballymoney Eurospar is the first store to benefit from the new feature. Supplying over 450 sites, Henderson is Northern Ireland’s

Minister gets a taste of the Healthy Living Programme Dundee’s Spar MacAlpine Road was visited by Scotland’s Minister for Public Health, Sport and Wellbeing last month, when, Joe FitzPatrick MSP saw first-hand the SGF’s Healthy Living Programme (HLP) in action. Children from the nearby Ardler Primary School dropped into the Spar store over the course of the day and sampled a variety of fruit and vegetables. Its Headteacher Louise Reid was delighted to take part. “The store welcomed the pupils and allowed them to sample some fruit and vegetables and see the healthier choices they could be making,” she said. “This allows us to

discuss further with the children the day-to-day food choices they make.” The HLP has been working with convenience retailers since 2004 and highlights fruit, vegetables and healthier products available in stores. It is fully funded by the Scottish Government and aims to connect local schools with convenience

retailers. So far it has engaged with over 13,000 school children across the country. Speaking at the event, the Programme’s Director Kathryn Neil said: “Today was a fantastic opportunity for Mr FitzPatrick to witness first-hand the work that both the Healthy Living team and Spar are undertaking to ensure their future customers are considering their purchases and learning about the benefits of eating a healthier diet.” Colin McLean, CEO of Spar Scotland, added: “It is very important that we continue to encourage young people to embark on a healthy lifestyle and eat healthily.”

largest EPoS provider and has recently embarked on an

SYMBOL GROUPS Nisa reshuffles top team as Retail Director moves on

TRADE ASSOCIATIONS

ambitious expansion campaign

Nisa making plans without Nigel, as Gray departs

SGF’s Cheema bags Corporate Livewire award

across the UK and Australia.

Greencore growth ‘encouraging’ A 7% growth in food-to-go categories helped convenience food supplier Greencore record an adjusted half-year operating profit of £44.7m, according to interim results for the 26 weeks ending 29 March 2019. The figure represents a 0.9% year-onyear increase. The company is the UK’s largest sandwich maker, producing over 700 million

Career break: Nigel Gray

sandwiches and other food-to-go items annually.

Barcode Festival sells out Barcode Festival, the annual summer fundraising bash in support of GroceryAid, has revealed that tickets are now fully sold out. Now in its second year, Barcode returns to London Union’s Hawker House on 4 July, when a record 2,200 industry colleagues will enjoy street food; bars; games and competitions; and live music from the likes of Jessie J, Basement Jaxx and

Nisa has announced a senior management shake-up. The symbol group’s Chief Executive Ken Towle said the reorganisation would better align Nisa’s management structure to its growth strategy. The changes are effective from 1 July 2019 and include the decision by Retail Director Nigel Gray to leave Nisa for a career break after more than five years with the company. Towle said Gray had been a “key part” of the leadership team, adding: “Having successfully led the Retail

team through the first year of Co-op ownership, Nigel has now decided to leave the business and, while we are very sorry to see him go, we wholeheartedly wish him all the very best for the future.” The Sales and Retail teams will be merged under Steve Leach’s directorship, thereby centralising recruitment, account management and retail operations. CEO John McNeill will add Format and Development, Marketing and PR, as well as the Making A Difference Locally charity to his portfolio. Furthermore, Martin Rogers will now lead on strategic planning in addition to his core Franchise responsibilities. Towle concluded: “I have every confidence that John, Steve and Martin have the necessary experience, expertise and drive to successfully build on Nisa’s recent success, and I look forward to working with them in their expanded roles.”

Scottish Grocers Federation Chief Executive Pete Cheema has been named as CEO of the Year in the Grocery Sector category of the Corporate LiveWire Magazine business awards. The magazine’s Innovation and Excellence awards celebrate and recognise companies and individuals who are nominated and then assessed as being the best in their respective fields. Pete Cheema commented: “I am delighted to receive this award not only on my own behalf but also on behalf of the Federation itself. We are determined to keep learning, adapting and innovating on behalf of our members and the industry in Scotland. The award recognises that determination.”

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News DEPOSIT RETURN SCHEME Surprise late inclusion provokes condemnation from industry

Glass becomes late and unwelcome addition to DRS The news that glass bottles will be collected as part of Scotland’s Deposit Return Scheme (DRS) and that small stores won’t be exempt has been met with dismay from the local retailing industry. As expected, the scheme will also recycle drinks containers made of PET plastic, aluminium and steel. HDPE plastic will not be included. The deposit rate will be set at 20p per container. Every store that sells drinks in single-use containers will be obliged to participate in the scheme. Confirming its implementation to the Scottish Parliament (8 May), Environment Secretary Roseanna Cunningham said the scheme was “ambitious in scale and scope”. However, the only company in Scotland with glass recycling facilities subsequently told MSPs that glass is ‘not a fit’ for Scotland’s DRS. Speaking at the Cross Party Group on Independent Convenience

Stores (21 May), Viridor Recycling Managing Director Paul Brown made it clear that he did not view the inclusion of glass within the new DRS system as appropriate or practical. SGF Chief Executive Pete Cheema said: “We are clearly disappointed. The refusal to consider exemptions for small stores and the decision to include glass clearly shows that the Scottish Government has broken its promise – made in the 2017 programme for government – to take into account the needs of small retailers.”

Cheema declared that SGF would fight “tooth and nail” to have glass excluded and to ensure the handling fee paid to retailers was set at a level that meant the final DRS would not end up costing retailers money. Based on its financial modelling, the Scottish Government propose a 1.5p payment for over-the-counter returns and 3.1p payment for DRS machine returns to cover costs. The SRC said the inclusion of glass would add an extra £50m to the annual DRS running cost. Head of Policy Ewan MacDonald-Russell said: “Glass is a difficult, bulky, and heavy material to manage and will be an enormous burden, especially for those operating from smaller stores.” The SWA was also critical. CEO Colin Smith said its concerns “have not been taken on board”. Draft DRS legislation will be published later this year with the system expected to be in place in 2021.

C-store closures increasing Convenience retail saw a net closure of 590 stores in 2018 across the UK, according to figures from the Local Data Company and the British Independent Retailers Association. This compares to 266 stores calling time in 2017. The analysis found convenience was the only sector not to improve, with competition from chain operators more evident.

Labour commits to £10 minimum wage Labour leader Jeremy Corbyn has called for a baseline £10 an hour for all workers, including those under 18. Corbyn said the rate would “be nothing less than life-changing” for young workers. He added: “Young people’s work should be properly valued, not exploited by employers to cut their wage bill. If they’re doing the job, pay them the wage.” Shopworkers trade union Usdaw welcomed the announcement.

Focus on frozen to beat food waste, says BFFF Richard Harrow, CEO of the

NATIONAL LOTTERY Ticket sales break £7bn barrier

SYMBOL GROUPS

British Frozen Food Federation

Camelot’s numbers up

Spar’s new boss

(BFFF), has called on the

Spar UK has appointed Louise Hoste as its new Managing Director. Hoste will take up the reins by October 2019 from interim bosses Chris Lewis and Jackie Mackenzie, who have been in charge since Debbie Robinson moved to Central England Co-op. She joins the symbol group from Card Factory, following stints with the Co-op (where she worked on its ‘Closer To You’ strategy), Brakes and Walmart. Commenting on what she described as “a fantastic opportunity,” Hoste said: “My focus will be to continue to drive the Spar brand forward, increasing its relevance with customers and developing the offer to drive sales and profit.”

role frozen can play in helping it

National Lottery ticket sales for the 2018/19 financial year (1 April 2018 to 31 March 2019) were over £7.2bn – an increase of more than £255m on last year – according to Camelot’s latest financial results. With sales of £5.4bn over the period – an increase of £73.8m on last year – retail remains by far the largest National Lottery sales channel, with almost three-quarters of total sales coming through instore terminals. Camelot expanded its retailer footprint considerably over the year. Since last summer, it has been trialling sales in several Aldi stores. The company also made its games available at self-checkouts in over 550 Asda stores nationwide. Digital sales for 2018/19 hit a record £1.8bn, with smartphones and tablets accounting for 55% of the total – another all-time high.

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The National Lottery’s range of Scratchcards and online Instant Win Games also reached a record £3.1bn – an increase of £290m – following range improvements and better stock management processes. Over the year, Camelot generated £1.7bn for good causes and awarded £4.1bn in prizes. Although total sales of drawbased games were broadly flat, both Thunderball and EuroMillions HotPicks performed well. While EuroMillions and Lotto were both slightly down – EuroMillions as a result of fewer £100+ rollover draws – Lotto picked up speed in the second half of the year after enhancements were made in November 2018. In addition, Camelot said the launch of the new Set For Life game in March “is on track” and expected to boost good causes by an additional £100m in the next financial year.

government to highlight the achieve its ‘Step up to the Plate’ food waste targets. “Research shows increasing frozen food can significantly reduce edible food waste in the supply chain,” said Harrow.

Aldi tries out paper and compostable bags All of Aldi’s UK stores will trial either paper or compostable carrier bags next month. Half will offer paper while the remainder will try out Bioplast bags, which break down in under 12 months and will retail at 6p. The reusable brown paper bags will cost 19p, are sourced from sustainable forests and can carry 11kg of shopping. The most popular option will be rolled out nationwide when the trial concludes.

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News NEW STORES Work to start this month on food-to-go specialist’s latest venture

Envipco introduces new UK leadership ahead of DRS Reverse vending machine (RVM) manufacturer Envipco has named Spencer Roberts as UK Managing Director and Barry Stewart as Scottish Operations Manager, following the success of a three-month RVM trial in three Scottish c-stores. It will also launch a new Operations Centre in Newbridge in the summer ahead of the expected implementation of Scotland’s DRS in 2021.

FSS urges ambitious action to tackle obesity levels Food Standards Scotland (FSS) has called for a broad range of measures to address Scotland’s poor diet and asked

David’s Kitchen secures Kirkcaldy site for new store Plans to open a new David’s Kitchen store in Kirkcaldy have moved a step closer to fruition with the news that a 0.6 acre site on the town’s Oriel Road has been secured on behalf of the award-winning convenience retail chain. A £1m+ development of the site, formerly a fast-fit garage, is scheduled to start this month. A planning application was lodged last summer. The new store plans to offer grocery shopping as well as a café, on top of the food-to-go range that David’s Kitchen is renowned for.

Founder David Sands said: “We look forward to opening a very innovative new store, focusing on food we make on the premises. We are also delighted to be returning to Kirkcaldy, where we have run several successful stores over the years.”

The site was secured by Shepherd Chartered Surveyors. The company’s Jonathan Reid suggested the David’s Kitchen empire is set to grow further: “We’re delighted to have secured this location for David’s Kitchen and to be retained to secure additional sites for the expanding firm throughout east and central Scotland.” David’s Kitchen Glenrothes was SLR’s 2018 Food-to-Go Retailer of the Year. The Falkirk store was also also a winner last year, when it picked up the trophy for best Soft Drinks Retailer.

the government, industry and the public to help tackle the

SYMBOL GROUPS Booker’s biggest fascia marks 25 years of trading

problem. The call comes in the

Premier launches silver Juul secures anniversary celebrations McColl’s listing

wake of FFS research that found around half of people in Scotland would support regulation and taxation of unhealthy foods to address the issue.

Store lighting cuts milk’s vitamin levels Boffins at Newcastle University say high-density lighting in store cabinets reduces essential nutrients found in milk, like Vitamin A, Vitamin B2 (riboflavin) and Vitamin D. Researchers found milk lost half its Vitamin A after two hours exposed to LED lighting; riboflavin levels can drop by 28% after 20 minutes. With around half of milk on shelves for at least eight hours, a significant proportion is at risk of light damage.

MPs call for penny selfcheckout tax Shoppers should be charged 1p to use self-checkout tills, the All-Party Parliamentary Group on Social Integration has suggested. Its ‘Healing the Generational Divide’ reports says the £30m raised could fund projects that connect people from different age groups, reversing the decline in human contact that technological advances like

Premier is celebrating its 25th anniversary with a host of consumer offers and competitions. These include the symbol group’s biggest-ever scratchcard which offers over £1.2m in prizes, with a top prize of a £25,000 Mini Cooper. Players have a one in four chance of bagging a prize and Premier’s boffins have worked out that each store should have over 200 winners. The summer will also see its strongest-ever selection of ‘Wow’ and ‘Mega’ deals, as well as an additional Alcohol leaflet which offers big savings for shoppers and can earn retailers over 20% POR. Wine and Cider Festivals are also planned for July and August. Premier Brand Director Martyn Parkinson announced the deals at a special event that kicked-off the silver anniversary celebrations. He also addressed the two big challenges facing retailers just now of declining footfall and increasing costs with the announcement of a new food-to-go guide from Premier. Launching in the summer, the guide could help retailers earn up to 75% POR. Parkinson also unveiled a Booker-exclusive coffee machine deal that includes 4,000 free cups of coffee and offers retailers a 65% profit margin. To further mark the silver milestone, Booker will also make 100 donations of £250 to local good causes on behalf of Premier members.

VAPING

American vaping brand Juul has signed a deal to supply 1,300 McColl’s c-stores. The move means the number of UK stores now stocking Juul products has passed the 7,000 mark. The brand entered retail last November, when it secured a listing with Sainsbury’s. The deal sees McColl’s stores stock Juul on the main vaping fixture next to the tobacco gantry as well as in Juul-branded display units. The news came as the brand launched improved pods that incorporate a cotton – rather than a silica – wick. Juul says this provides a more satisfying vape. The new pods are available in the brand’s usual 18mg/ml strength and a new lower 9mg/ml strength. Both are compatible with Juul’s existing devices. The 18mg pods are available in Golden Tobacco, Glacier Mint, Mango Nectar, Royal Creme, Apple Orchard and Alpine Berry flavours. The 9mg pods come in Juul’s best-selling flavours of Golden Tobacco, Glacier Mint and Mango Nectar. Retailers interested in becoming a Juul stockist can call 0808 164 1301 or email uksales@juul.com. Retailers must sign up to Juul’s Challenge 25 policy before receiving any Juul stock. More information on Juul products can be found at juul.co.uk.

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News AWARDS Booker takes bragging rights at HIM Awards, as its fascias win five gongs in total

CJ Lang bolsters distribution team CJ Lang and Son has appointed Alan Brown as Distribution Manager. As part of his role, Brown will be responsible for building relationships with new and existing partners and developing the company’s distribution service. He reports directly to the Spar Scotland wholesaler’s Distribution Director Colin Chapman. Brown was previously a General Manager for Asda Logistics Services.

Store cuts waste with AIbased dynamic discounting Dutch supermarket chain Albert Heijn is trialling a dynamic discounting system that uses artificial intelligence to cut down on food waste. The system uses an algorithm to calculate how much an item should be discounted based on its shelf life. Electronic price tags display the regular price and

Premier performance as symbol bags HIM hat-trick It was a big night for Booker at the HIM Awards (23 May) with its Premier symbol group winning three of the 16 trophies up for grabs, including the evening’s main award for the Shoppers’ Favourite Convenience Retailer for 2019. In addition, the wholesaler’s Budgens fascia claimed a further two awards. Besides the top gong, Premier also collected awards for Shoppers’ Favourite Symbol Group and Shoppers’ Favourite Small Format Retailer. Budgens was named Shoppers’ Favourite in the Convenience Retailer For Healthier Choices and Forecourt Retailer categories. Other Shoppers’ Favourite winners included the Co-op (Convenience Retailer For Fresh Foods and Managed Convenience Retailer),

Bargain Booze (Convenience Retailer for BWS) and best-one (Convenience Retailer For Snacks). Spar was named the Retailers’ Favourite Symbol Group. The award winners are decided using HIM research, based on thousands of interviews with retailers and shoppers. These interviews found Premier scoring consistently highly on the

core ratings that are very important to shoppers. These included 9.57 out of 10 for staff friendliness and helpfulness, 9.37 out of 10 for speed of service and 9.11 for product availability. It is the second year running that Premier have won the award. Thanking Premier retailers for all their hard work and dedication, Martyn Parkinson (pictured with award), the symbol group’s Brand Director, said: “These awards are particularly special as they are voted for by shoppers and are a true measure of Premier retailer’s commitment to serving their communities every day. “I am confident we will be able to build on this success and drive more footfall, sales and profits for our retailers.”

the discounted price on a given expiration date. The tech is being

SYMBOL GROUPS New website puts focus firmly on retailers

tested on poultry and fish.

One Stop Franchise unveils new website

Britvic turns in ‘strong’ half-year performance Britvic has delivered what it called a “strong performance” for the first half of its current financial year. Interim results for the 28 weeks ended 14 April 2019 show the soft drinks giant increased organic revenue 1.9% to £769.2m, while organic adjusted EBIT increased 5% to £83.7m. This follows 13 consecutive year-on-year halves

One Stop Franchise has launched its new website, believing it is easier to navigate, focuses more on its franchisees and ultimately is more helpful and informative to prospective retailers. The retailer-focused homepage includes a carousel of ads with linked retailer case studies focusing on what One Stop says are the five key benefits of joining: more cash in your pocket, £50,000 store investment, seven day a week support, market-leading promotions and timesaving technology, along with a ‘hero’ homepage video which highlights the benefits of the franchise model. The website also promotes other benefits One Stop

associates with signing-up, such as: the power of a national brand, being a subsidiary of Tesco and its ownlabel range, which consists of over 400 lines across fresh, chilled, meat and frozen to grocery, impulse and cake. A One Stop spokesperson said the re-design aims to make the site as helpful and informative as possible for prospective franchisees: “With an easy-to-navigate layout, there is a wealth of information from downloadable documents such as time-saving technology and what is a Franchise, insights and interviews which include retailer case studies and a time-lapsed video of a £50,000 store refit to latest news articles.”

of growing adjusted EBIT.

Fri-jado offers five-year guarantee on hot holds Fri-Jado is now providing a five-year warranty on its range of MD (multideck) hot food merchandisers. The company claims that it is the first and only manufacturer to offer such extended cover for this type of equipment. The five-year warranty applies to Fri-Jado’s MD ‘Eyeline’ and MD Premium ranges. For more information call 01895 272227, email uk.info@

STAFF TRAINING Private equity firm takes over online learning provider

TRADE ASSOCIATIONS

Bolt Learning bought

FM to address SGF conference

Paisley-based online learning provider Bolt Learning has been acquired by Aliter Capital. The private equity firm’s investment will fund Bolt’s next stage of growth. All of Bolt’s shareholders are to remain equity shareholders, including Tom Fender, who will step down from day-to-day involvement as MD of Bolt’s commercial operation. Fender was an initial seed

investor in Bolt and previously held a non-executive director position with the company. Since launching in 2014, the business has won several awards and provided training solutions for a number of companies in the convenience sector including the ACS, David’s Kitchen, Lifestyle Express, McColl’s and forecourt operator MRH.

First Minister Nicola Sturgeon will give the keynote address at SGF’s annual conference in Glasgow on 25 October. This represents something of a coup for the Federation, given that it has raised serious concerns about the direction of Scottish government policy in key areas like deposit return.

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Powering deposit return schemes

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News Extra

Scottish Wholesale Association | Annual Conference

NewsExtra SEE INSIDE SPAR’S NEW HAVANNAH ST STORE – P30 WHOLESALERS Ambitious plans for future revealed at SWA conference

Convenience Matters with the SGF Workplace stress is something which seems to be on the increase – some studies have shown that six out of 10 people experience it, at a cost of 11 million days lost at work. Are we paying as much attention to this in terms of how it impacts on retailers in Scotland? The challenges of ever-increasing staff costs can simply no longer be ignored: the real cost of employment is £12 per hour. In a hypercompetitive retail market independent convenience stores struggle to absorb these costs. One response has been to put a freeze on recruitment or to cut existing staff hours. Unfortunately, the consequences of this can be severe. We know from our Scottish Local Shop Report that almost 25% of retailers are now working more than 70 hours per week and that 14% are simply unable to take any holidays at all. The pressure on staff can be relentless. On average, stores are open for at least 14 hours per day. If we add to this the ongoing everyday reality of walking a tightrope of enforcing age-verification and other key compliance issues and things such as in-store crime (for most stores shoplifting is probably a daily occurrence). We are working directly with the Low Pay Commission and the government keep the National Living Wage to a realistic level. We are helping to guide new legislation on retail crime through the Scottish Parliament and with partners such as the Retail Trust we are offering health and wellbeing services to our members. However, we must develop a new way of thinking about the stress of working in convenience and ensure it gets the attention it deserves.

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WHOLESALERS FOCUS ON COLLABORATION AS SWA RALLIES MEMBERS Making the wholesale industry an attractive one to work in by creating a legacy that will inspire the next generation will be the future focus of the Scottish Wholesale Association with Chief Executive Colin Smith telling its annual conference (31 May – 2 June) that training, business building, and lobbying and legislation will be at the forefront of the trade organisation’s revitalisation. “Wholesalers deliver £2.9 billion to Scotland’s economy and while we’re a huge industry, wholesale outlets have halved in the past 15 years – that’s why we need input from our members, both wholesalers and suppliers, to ensure that our trade association remains vibrant and relevant,” said Smith. Smith said that the creation of a Training Academy would enhance skills within the wholesale sector, raise standards and promote wholesale as a viable career path. “This is about creating a highlytrained wholesale and distribution workforce in Scotland, where our staff aren’t just box-shifters but skilled people who will be the future leaders of our industry,” he said. Collaborating with other trade associations will also form a key component of the SWA’s work in the future. Smith said: “We have four trade associations with us at conference – Scotland Food & Drink, the Scottish Tourism Alliance, Scottish Grocers’ Federation and the Federation of Wholesale Distributors. All of the work we are doing together benefits SWA members.”

The challenges that all SWA members face were not restricted to the “cumulative and burdensome legislation coming out of Holyrood and Westminster”, Smith pointed out. “There’s the cost of training and retaining staff, the speed of change in technology and the ever-increasing question of where to invest.” Unveiling the SWA’s new vision statement, he said: “Our vision is about standing for everything that is great about wholesale, protecting our industry and our members’ voices, giving them a return on investment, providing with opportunities to network and placing our people at the heart of everything we do.” Meanwhile, Julie Dunn, SWA President and Operations Director of Lanarkshire-based Dunns Food and Drinks, urged members – wholesalers and suppliers – to get more involved in helping to shape the SWA’s strategic vision. Dunn said that the core principles of collaboration, consultation and communication – the three Cs – would ensure that members, their interests, needs and future success were protected under membership of the SWA. For the first time, the conference featured a Producers’ Exhibition – a collaboration with industry organisation Scotland Food & Drink. The well-attended exhibition, part of the new SWA conference initiative Keeping Scotland Local, provided 20 local producers and suppliers with an opportunity to meet key buyers, decision-makers

and owners of SWA member wholesalers. Attracting industry leaders, entrepreneurs and senior executives from all corners of the wholesale supply chain, the conference heard from: Dawood Pervez, Managing Director of Bestway Wholesale; Colin McLean, Chief Executive of Dundee-based Spar wholesaler CJ Lang; Iain McPherson, Regional Managing Director (Scotland) for Matthew Clark; and Chieh Huang, Chief Executive of the US-based online wholesaler Boxed. Other speakers included: Paul Miller, Co-founder and Chief Executive of Fife-based distillery and brewery Eden Mill; Marc Crothall, Chief Executive of the Scottish Tourism Alliance; Josh Clifton, Commercial Innovation Manager of industry research and insights specialist HIM; Ross Mackay, Co-founder of Daring Foods, a Glasgowbased start-up selling plantbased meat alternatives; Nigel Holmes, Chief Executive of the Scottish Hydrogen & Fuel Cell Association; Fiona Speakman, Client Director, CGA; and Glenn Tunstall, Director of Merida Consulting. The conference – entitled What’s Next? – incorporated several panel discussions with business sessions designed to enable greater business-building opportunities between members. There was also a businessbuilding and networking event where wholesalers and suppliers had the opportunity to meet and share information during interactive sessions. www.slrmag.co.uk

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Comment

DUBLIN ARRIVES: BETTER LATE THAN NEVER For many years, if you wanted to see convenience retailing taken to the next level all you had to do was jump on a short flight or take a ferry and visit the Emerald isle. Ireland in general – and Dublin in particular – has a long and rich history of producing convenience stores that are simply out of this world, with weekly turnovers that would make your eyes water. Yes, there are a lot of complex reasons why the convenience market is so successful over there, but the fact remains that they do just do it differently in Ireland. It’s odd then that we haven’t seen more stores in Scotland attempting to replicate the Irish model – but indications are that at least some Scottish stores are coming round to the Dublin way of thinking. One such store is CJ Lang’s new Havannah St store in Glasgow, profiled in this issue. CJ Lang Head of Food-to-go Stephen Brown happily admits the store is heavily influenced by the Irish model, a model he has studied closely for many years. Havannah St – described by CJ Lang as an ‘urban transient’ store – is unashamedly focused on the categories that are driving growth and profits these days, with food-to-go being the key. In fact, it wouldn’t be unfair to say Havannah St is more a food-to-go outlet with a c-store attached, rather than the other way round. Yes, the store has an unusual catchment area – mostly students and Glasgow City Council office workers – but I have a strong feeling that the learnings of Havannah St will find their way into many more Spar stores in the future, even the ones that are neither urban nor transient. Dan Brown’s Nisa store in Musselburgh is another that broadly speaking follows the same Irish-influenced model, or at least it will once a major refit is completed in the next couple of weeks. It too focuses heavily on food-togo, with a bank of premium offerings at the front door that bears a striking resemblance to Havannah St: Costa machine, Skwishee unit, F’Real machine. This new Dublinesque approach works on two key fronts: it gives customers compelling reasons to visit the store and it delivers much, much higher margins. And that’s one thing Irish retailers have never been shy of doing. For many retailers in Dublin, if it doesn’t make 40% margin it doesn’t make it across the door. Grocery ranges are often sparse or even non-existent, for instance. The approach can be far more brutal than we’re used to seeing in Scotland, but stores over there are run for the benefit of retailers and customers, not just customers. With costs rising the way they are, it’s perhaps time Scottish retailers got a little more brutal themselves.

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

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

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

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

CIRCULATION & SUBSCRIPTIONS Scottish Local Retailer is distributed free to qualifying readers. For a registration card, call 0141 222 5381. Other readers June obtain copies by annual subscription at £50 (UK), £62 (Europe airmail), £99 (Worldwide airmail). 55 North Ltd, Waterloo Chambers, 19 Waterloo Street, Glasgow, G2 6AY Tel: 0141 22 22 100 Fax: 0141 22 22 177 Website: www.55north.com Twitter: www.twitter.com/slrmag DISCLAIMER The publisher cannot accept responsibility for any unsolicited material lost or damaged in the post. All text and layout is the copyright of 55 North Ltd. Nothing in this magazine 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 JUNE change. This magazine is fully independent and not affiliated in any way with the companies mentioned herein. Scottish Local Retailer is produced monthly by 55 North Ltd.

ANTONY BEGLEY, PUBLISHING DIRECTOR © 55 North Ltd. 2019 ISSN 1740-2409.

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

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Cover Story

Destination Stores

TIME FOR THE REBIRTH OF THE DESTINATION STORE? BY ANTONY BEGLEY

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Destination Stores

Cover Story

Fierce competition and ever-rising costs mean the prevailing convenience model of price competition and promotion-obsession may be ending – so is the answer a fresh look at creating ‘destination stores’?

he concept of the ‘destination store’ is a not a new one in local retailing. It’s something that’s been vaguely talked about for many years, but it’s not a concept that has truly caught hold in Scotland. Most c-stores, if we’re being honest, have typically sold roughly the same ranges in stores that roughly resemble one another in most meaningful ways. The painful reality is that the convenience sector has allowed itself to be drawn into a battle with the multiples and the discounters on terms that massively favour our larger scale retail cousins. “One of the biggest failings of our sector in general has been to allow ourselves to get caught up in trying to compete with Asda and Lidl and Tesco on price,” says Dan Brown, Manager of Nisa Pinkie Farm Convenience in Musselburgh. “There was only ever going to be one winner in that battle in the long term, and I think that’s what we’re discovering now as our costs continue to escalate across the board and our old model of targeting 20% GP is no longer sustainable. Sure, price is important, but it shouldn’t be what sits at the heart of our offer as local retailers. “What we need to offer our customers are great reasons to come here rather than go to a supermarket or any other competitor. We need products and services where the quality and experience are what matter most, not the price.” There is little doubt that Dan’s view is one that is shared by an increasing number of retailers. The evidence of a recent spate of newbuild stores and major refits suggests the way forward for local retailers in Scotland will see the sector attempt to shift the shopper’s focus away from price.

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“One of our sector’s biggest failings has been to get caught up in trying to compete with Asda and Lidl and Tesco on price.” DAN BROWN, MANAGER, NISA PINKIE FARM CONVENIENCE

“Focusing almost exclusively on price has ended up being a race to the bottom,” agrees Abdul Majid of Nisa Bellshill. “We’re all competing with each other to see who can be the cheapest and the consequence of that is a massive erosion of margins. With costs going through the roof, it’s only now that the industry is starting to accept that we need to rebuild our margins if we want to have a longterm sustainable future. And to achieve that, we have to do things differently.” In other words, it’s time for a fresh look at the concept of the destination store.

BACK TO BRASS TACKS To get back to basics, what is a destination store? In its simplest sense, a destination store offers products, services and benefits that customers can’t easily get anywhere else in the area. Becoming a destination store drives footfall and footfall drives sales. The question to ask yourself, says Abdul, is: “Why should a shopper pass another store to get to mine?” The inverse of that, obviously, is that offering what everyone else offers means there’s no reason why a shopper should pass another store to get to yours. Pricing and promotions are looking less and less like USPs as time goes by. Indeed, it could be argued pricing and promotions are more important to retailers than they are to shoppers. Broadly speaking, the promotional packages from the various symbol groups are very similar.

ASK YOURSELF… If price isn’t the key to future sales and profits, what is? It’s worth returning to Abdul’s question about why shoppers would pass another store to get to yours. JUNE 2019 | SLR

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Scotland’s Favourite Community Store Join our team as we embark on an exciting journey!

· Local products and ranges · Working with over 150 Scottish suppliers · SPAR, an award winning brand · Best in Class Chill offer · Your business partner To join the best, award-winning business in Scotland.

Call us now on 01382 512000 CJ Lang & Son Ltd, Longtown Distribution Centre, 78 Longtown Road, Dundee, DD4 8JU SparScotlandOfficial

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@SparScotland

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

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Cover Story

Destination Stores

Giving shoppers compelling reasons to visit will be a key to success in future.

There are a thousand answers to that question but a differentiated range is what matters. Yes, convenience store shoppers love the friendly staff and the short waiting times and the convenient locations – but the future will be about offering a range of products and services that gives shoppers compelling reasons to visit your store in particular. “I absolutely believe this idea is critical to the success of our industry,” says Dan Brown. “So much so that we’re currently just finishing a massive refurb of the store to allow us to focus more heavily on categories and products that our shoppers can’t get anywhere else nearby. For us that means a much bigger focus on hot and chilled food-to-go, a Skwishee machine, a Costa coffee machine, a bigger fresh range, local produce like beers, bakery and butchery, an enlarged vaping range and so on.”

HIGHER MARGINS One thing that most of these newly-added lines have in common is high margins, as Dan explains: “This is a big store, so we have a lot of staff. This means a big wage bill that’s only getting bigger every year with the minimum wage, so we’ve also focused on bringing in new products and services that deliver much bigger margins. When I took over the store last year, we were around about the 21% mark – we’re now up to about 25 or 26% and we’re aiming for 30%. You can’t achieve that just by selling a traditional convenience range of soft drinks, crisps and cigarettes.” This new focus on USPs has also impacted on the layout of Dan’s store, with many of the high margin footfall-driving new offerings all sited in a bank by the front door to shift customers’ focus onto these lines to drive up high value, high margin impulse sales.

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“If customers are coming in for bread and milk or a tin of beans then they’ll find them, but we want to tempt them into buying a coffee and a sandwich or maybe a pizza and a Skwishee while they’re here,” he says. Dan readily admits that this food-to-go-tothe-fore approach was influenced by some of the work his father is doing in new Spar stores across the country. Stephen Brown heads up food-to-go at Spar Scotland wholesaler and retailer CJ Lang and has been instrumental in the look and feel of the latest company-owned Spar store to open, Havannah St in Glasgow (see full store profile, p28). This store also focuses heavily on food-to-go and features a similar bank of coffee machines, doughnuts, Costa machine and Skwishee unit at the front door. Stephen comments: “We very much see the future as building destination stores, offering customers great quality products and services they can’t get anywhere else. This allows for more margin as shoppers are happy to pay a premium for a great cup of coffee, a freshlybaked locally-sourced pie or a Skwishee. These products haven’t been commoditised

so what’s important to shoppers is the experience and the taste – not the price.”

KICK THE HABIT If retailers can successfully help shoppers kick the promotions and price habit, there is a bright future out there after all. “One of the benefits of being an independent retailer is that you can act quickly and bring in new products and services quicker than the multiples or discounters,” says Abdul Majid. “We also have much closer relationships with our shoppers so we are able to understand them and learn what new products and services they might be interested in buying or using.” Finding new products and services that will drive footfall and make your store a destination store is not as daunting as it might appear. There are lots of learnings to take from other retailers across Scotland to set you on the right path, then it’s up to you to make your own way and start piling USP upon USP to make sure that there are lots of reasons why a customer would pass another store to get to yours.

“We very much see the future as building destination stores, offering customers great quality products and services they can’t get anywhere else.” STEPHEN BROWN, HEAD OF FOOD-TO-GO, CJ LANG & SON

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THE COOLEST FROZENATED DRINK! BE PART OF THE FROZEN REVOLUTION!

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Cover Story

Destination Stores

BECOMING A DESTINATION STORE

To help you find ways to bring customers to your door and give them compelling reasons to use you rather than anyone else, SLR offers a few ideas that might work…. THE ORIGINAL FOOTFALL DRIVERS: POST OFFICE Very few services drive footfall quite like a post office. HIM research shows that 93% of shoppers are more likely to choose a store because it has a post office, with 39% of customers travelling more than half a mile to visit a store with a post office. In fact, 68% of shoppers first began using the store when it added a post office. Opening a Post Office Local branch means you effectively become the shop, the bank and the post office in your community. It’s also a quick and efficient way of generating new footfall and sales. On average, it takes less than 30 seconds to serve a post office customer – and the new footfall opens a world of possibility when it comes to impulse and semi-planned purchases. One in three post office customers buy three or more items in the shop. PAYPOINT PayPoint has significantly upped its game of late. It has demonstrated much more willingness to listen to retailers, understand their concerns and start addressing them with new ways to leverage the service to do everything from reducing banking costs to improving their Epos systems – but the core PayPoint service remains a hugely important footfall driver for stores. Offering PayPoint will bring shoppers to the store – the key question is what you do with those shoppers when they arrive. FRESH IDEAS: FOOD-TO-GO It’s the most important trend in retail and it’s a footfall driver par

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excellence. The one key challenge here is doing it well. Food-to-go works best when it’s professionally presented and maintained. It’s all about customers’ confidence in the offer. There are more solutions than ever available, so take your time and choose wisely. SKWISHEE The runaway success story of the last few months, retailer Harris Aslam’s Skwishee carbonated slush solution has been a massive hit with retailers and shoppers. With over 50 installations so far and counting, Skwishee is delivering big sales and big margins – typically 64% – to more and more retailers across Scotland. With new flavours coming online on a regular basis and the novelty twist of an edible straw, Skwishee is a true home-grown success. With prices up to £2.99, the product is helping drive footfall, big basket spends and huge cash margins. PIZZAS One of the biggest challenges facing retailers with food-togo offerings is extending the sales period beyond the traditional breakfast and lunchtime slots. Freshly baked pizzas are a great, no-fuss way of doing that and bringing shoppers to your store in the evening. Delivering great margins and topquality experiences, pizzas are also a great foundation for building bigger basket spends. COFFEE No modern store is complete without a coffee machine – and ideally a highquality bean-tocup machine. Today’s shoppers are so used to high quality coffee that

anything less just won’t do. Coffee is the cornerstone of a food-to-go offering. F’REAL MILKSHAKES The US premium thick-shake has something of a cult following among a certain age of consumer and will certainly draw shoppers from further afield. You’ll find them in many a store these days, including all new Spar stores. DESSERT BARS The Scots’ sweet tooth makes the dessert bar an attractive option for retailers, offering the opportunity to drive up basket spend with premiumpriced treats such as waffles, pancakes and ice cream. It also gives shoppers another good reason to visit your store rather than someone else’s. TANGO ICE BLAST A phenomenon of recent times, Tango Ice Blast has built up a huge following with shoppers happy to pay very premium prices for the experience. Installation is relatively complex but once the machine is up and running it’s plain sailing. VAPING The multiples and discounters haven’t managed to corner the vaping market yet, which leaves local retailers the chance to build strong, regular repeat custom with a good range of vaping products. Staff knowledge is key but get it right and you’re laughing all the way to the bank. Vapers will also travel significant distances for a store that meets their requirements.

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News

Products

Tetley ramps up Cold Infusions investment Tetley has sunk £1.3m in its

ProductNews

Cold Infusions range with new products, new formats and a marketing campaign. Alongside a new Strawberry & Watermelon flavour (RSP £2.49 for 12), Tetley has launched a new clip strip carrying 12 packs of three infusions (RSP £1 per pack). Marketing support includes live events, sampling, print, outdoor, social and Love Island-related digital activity.

Get outside with Happy Egg’s summer promotion The Happy Egg Co is inspiring consumers to enjoy an outdoor adventure with 2-for-1 entry to hundreds of activities, with the purchase of specially marked packs. Activities include scuba diving, kayaking, surfing, high ropes courses, cycling, rock climbing and entry to historical

GET THE LOW-DOWN ON THE SGF MINI-SUMMIT – P40 CONFECTIONERY Mondelez brand puts thousands of prizes up for grabs

A summer of silliness from Maynards Bassetts Maynards Bassetts is set for “a summer of silly fun” with a new on-pack promotion that gives shoppers the chance to win one of 8,001 wacky prizes. The instant-win competition runs until the end of August across a number of the brand’s hero bags, which are labelled with a promotional flash. Up for grabs are sunglasses, wireless speakers and trainers.

Shoppers can also win tickets to visit one of several attractions. To make the most of the promo, Mondelez advised retailers to position in secondary sites for on-the-go purchases, or on crosscategory displays for evening and impulse opportunities. Anna Ulrich, Brand Manager for Joyful Candy at Mondelez, said: “We’re really excited to launch this new promotion,

focusing on a wide range of Maynards Bassetts products and offering consumers the chance to win a range of great prizes. We hope this will continue to drive the relevance of Maynards Bassetts with shoppers.” For further enquiries, retailers can telephone Mondelez on 0870 600 0699, email retailer. services@mdlz.com or pay a visit to deliciousdisplay.co.uk.

homes and natural wonders. The promotion is backed with digital and in-store marketing.

Cadbury and Merlin team up to offer 2-for-1 tickets The Cadbury and Merlin Entertainments partnership that offers consumers free tickets for days out has rolled out across Cadbury chocolate bags for a fourth year. Running throughout the summer, promotional packs offer a free ticket with every purchase of a full-priced adult ticket to a host of Merlin’s attractions. New this year is the chance to take a trip on the London Eye.

Juul makes cash & carry debut with Bestway Juul has kicked-off a trial roll-out of its products in 10 English Bestway and Batleys depots. Other branches, including the seven Scottish Batleys depots, are expected to stock the brand’s starter kit and flavour range once Juul’s age verification process has been tested and verified. Bestway customers who purchase Juul products will be

CHEESE

Dairylea rebrands as Dareylea Dairylea is aiming to get families out of their comfort zone this summer through a new on-pack campaign. The £1.3m ‘We Dareylea You!’ campaign will see Dairylea triangle, spreads and slices packs rebranded as ‘Dareylea’ for three months. Special packs will include a series of cheesy dares that will encourage families across Britain to get out and about and undertake a series of fun challenges. The campaign, part of Dairylea’s long-term ‘Feed the Fun’ positioning, will be supported by out-ofhome, online, social media, radio and in-store activity. Patrick Bochet, Marketing Director for Meals at Mondelez, said: “We’re incredibly excited to be launching the ‘Dareylea’ campaign and we think both retailers and shoppers alike will really embrace it. We can’t wait to see how people respond to our dares.”

CAKES

Spar revamps cake range Spar Brand has revamped its cake range and added nine new on-trend products, in a move to capitalise on the trends for snacking, sharing and food on-the-go. New to the cake range are three mini bite tubs and four loaf cakes, as well as two cake bars. In addition to the new products, all four muffin flavours have been reformulated with a new and improved recipe. Spar has also repositioned its cake bars range to bring the range more in line with the market and now offers a Chocolate Brownie, Millionaire’s Shortbread and All Butter Flapjacks. Tapping into on-trend flavours, there are also four cupcakes including the Belgian Chocolate cupcake which is available all year round and three new limited-edition cupcakes – Raspberry Unicorn in Spar stores now, Salted Caramel which will be available in the winter and Lemon Mini Egg cupcakes available next year. The Spar cake range is growing significantly ahead of the market, with Spar own-label cake growing at over 3%, said David Armstrong, Head of Spar Brand. “Snacking is an important growth category for Spar stores,” he added. “The demand for cakes and snacks is rising and these products are great for on-the-go indulgence. With this range busy consumers can treat themselves to a delicious cake or snack on-the-go.

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Products

News

Tic Tac offers Ibiza trip Tic Tac is giving consumers the chance to win a holiday to Ibiza as part of a tie-in with a radio station Kiss. The competition looks to drive shopper demand

SNACKS Hefty support for new self-standing bags

KP launches new design with £1.3m campaign

for the Tic Tac core range, with

KP Snacks has unveiled a redesign for its flagship KP Nuts range, which offers a brand-new look and feel as well as a new pack structure. The new packs, available to retailers from the end of June across the 29-strong range, feature a sunshine design and highlight the nuts’ protein and fibre contents. The redesign will be supported by a £1.3m media spend which includes out-of-home, digital and social media activity. As well as the design overhaul, nine KP Nuts sharing SKUs will now come in what the packaging world calls a doypack. Named after inventor Louis Doyen, these are designed to stand upright unaided. KP said the new format will help shopper navigation, as it allows packs to be easily merchandised in

£250,000 media investment.

secondary displays. The benefits to consumers are a reduced threshold for nut spillages and easier pouring. Packs also feature a new reseal closure. They can also be recycled under the KP Snacks nationwide recycling scheme, launched in partnership with TerraCycle in March this year as part of the company’s pacKPromise. Sue MacKay, KP Nuts Marketing Manager, commented: “By highlighting the health credentials and developing a handy reseal function, we are responding to demand from our consumers who want products that are higher in protein and fibre and also want to enjoy these products whilst socialising with family and friends.” The new packs will be available across original salted, dry roasted, unsalted, salt & vinegar, honey

roast, spicy chilli and jumbo original salted varieties over 200g. RSPs remain the same at £2.78 (200g), £2.39 (225g/250g) and £3.49 (415g).

the promo featuring across two million packs of Tic Tac Fresh Mint or Lime & Orange in the T1 and T100 pack sizes. The campaign is supported with a Promotional packs are available to retailers now.

Soreen set for summer with on-pack bike competition Malt loaf maker Soreen has launched a new on-pack promo that gives shoppers the chance to win a new bike every day over the summer months. Featured on most Soreen packs now, the promotion also entitles purchasers to £50 off a Lapierre adult bike, or 10% off a kid’s bike. For more information, retailers can visit soreen.com, call 0161 874 4100 or email sales@soreen.com.

Refreshing Wimbledon promo from Robinsons Britvic has launched a new on-pack promotion across its Robinsons Refresh’d range, giving shoppers the chance to win Wimbledon-related prizes.

CONFECTIONERY Fancy a week in the sunshine?

Retailers can win a break with Swizzels

The brand is also running a £3m

Swizzels is giving retailers the chance to win a family holiday for four this summer as part of its Fun in the Sun campaign. Retailers must purchase three cases of Swizzels’ £1 PMP hanging bags including Choos, Squashies and Loadsa bags, and text their details to be entered into a prize draw. The winner will receive an all-inclusive one-week holiday to the Canary Islands, worth £3,000. The competition runs in wholesalers from June to September, promoted through pallet surrounds, pallet skirts, aisle fins and off-shelf displays. The Fun in the Sun campaign consists of consumer PR and social media activity, which Swizzels hopes will ensure the brand is front of mind at a time when chocolate sales typically diminish as the weather heats up. Mark Walker, Sales Director at Swizzels, said, “‘According to a recent survey, 76% of respondents

radio, in-store and social media

say they buy sweets for long car journeys or family outings, therefore the launch of our Fun in the Sun campaign will ensure Swizzels is owning the summer season for sugar confectionery in 2019.’’ Visit swizzels.com for more information.

campaign over the summer months, which includes a TV, activity. For more information call Britvic on 0345 7581781 or visit the brand’s website, britvic.com.

Curly Wurly Squirlies PMP Following its launch in the summer of 2017, Cadbury Curly Wurly Squirlies has unveiled a new £1 price-marked pack. Cadbury Curly Wurly Squirlies is available now in cases of 10 x 95g £1 PMPs and plain packs (RSP £1). It is also available in cases of 10 x 110g plain packs (RSP £1). For further enquiries, retailers can telephone Mondelez on 0870 600 0699, email retailer. services@mdlz.com or visit deliciousdisplay.co.uk.

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News

Off-Trade

Whyte & Mackay lightens up with new spirit drink Whisky maker Whyte & Mackay

Off-TradeNews News

has unveiled a ‘light spirit drink’ aimed at younger customers. With an ABV of 21.5%, the drink falls below the 40% threshold required to be called whisky. It goes on sale in Tesco this month with an RSP of £12 for a 70cl bottle, with a wider roll-out planned for the autumn. The launch comes in response to increasing demand for low- and no-alcohol beverages.

VK sorts summer for fashionistas Ready-to-drink brand VK is giving consumers 20% off fashion retailer New Look with every purchase of its mixed 10-pack in its new ‘VK Sorts Your Summer’ campaign. The VK mixed pack is available to Spar, McColl’s and Nisa retailers, as

ARE YOU READY FOR SUMMER? – P48 GIN Cider maker moves into spirits

Kopparberg’s gin the pink Swedish drinks brand Kopparberg has unveiled new Kopparberg Premium Gin. A London Dry-style pink gin, it is infused with the brand’s trademark strawberry and lime flavours combined with juniper, lemon zest and coriander botanicals. The gin is available now from Bestway Wholesale in 70cl bottles with an ABV of 37.5%. A 250ml RTD is also available to Spar retailers. The Premium Gin & Lemonade premix (ABV 5%) will come in both single cans and 4-packs. The new variant is supported as part of Kopparberg’s £6m ‘Outside is Ours’ marketing campaign and will be backed across TV, digital and out-of-home formats among others. The gin will also appear at numerous festivals this summer.

Kopparberg is bestknown for its fruit ciders but as the brand’s Head of Marketing Rob Salvesen pointed out: “Not many know that we brew and distil many other drinks in our brewery in Sweden. “With over 10 years’ experience in distilling gin, as well as our success as flavour leaders here in the UK and around the world, it was an obvious decision for us to introduce Kopparberg Premium Gin.”

well as from wholesalers, with an RSP of £8 to £10. For more information call 01246 216000, email info@globalbrands.co.uk or visit globalbrands.co.uk.

BEER

Cheers big ears!

KBE takes on the world with expanded range KBE Drinks, best known for representing Indian beer Kingfisher, has added a range of World Beers to its portfolio. These include Sagres, the house beer of Nando’s, and Sardinian brew Ichnusa. There’s also Dos Equis, a premium imported lager from Mexico, and

Premium Belgian beer Heverlee has unveiled a range of limited-edition cans and packaging designed by street artist Dzia. The new 330ml can and 6x330ml pack designs are available now. They feature two of the artist’s signature animal designs – the sly fox and Belgian hare. The design creates the impression that the fox is chasing the hare around the can and is a replica of wall art Dzia first created in Heverlee’s hometown of Leuven, Belgium. The launch will be supported by an integrated PR and social media campaign throughout the summer.

Krušovice, a Czech Pilsner. For further product information visit kbedrinks.com or email info@ kbedrinks.com.

Business blooming for Boë Stirling-based Boë Gin has announced full year results to February 2019 that reveal a considerable year-on-year increase in sales and profit for the business. Figures filed with Companies House show total sales revenue from March 2018 to February 2019 reached £8.5m, up from £1.1m the previous year. This led to a rise of over £1.1m in operating profits, compared to

RTDs

Bacardi breezes back onto shelves Bacardi has relaunched its iconic Breezer, the RTD that, as anyone who ever patronised a mid-1990s disco or student union will tell you, was leader of a pack of what were then disparagingly referred to as alcopops. Fast-forward a quarter of a century or so, and it seems the Breezer has grown-up somewhat. Gone are the glass bottles of brightly-coloured liquid, replaced by a more sophisticated 250ml can (ABV 4% and RSP £1.80) that contains one of three variants aimed at the more discerning palate: Blood Orange & Ginger; Strawberry, Cucumber & Mint; and Lemon & Elderflower. Launched in partnership with Tesco, Breezer is available through Budgens & Londis now and Booker & Premier from 27 June. Bacardi’s boss for Britain and Ireland Amanda Almond said: “We hope the introduction of Breezer will cater to people of all ages who are looking for new and exciting flavour combinations in a convenient, easy-to-drink format.” For more information visit bacardilimited.com.

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Off-Trade

News

First Minister opens McQueen Gin distillery First Minister Nicola Sturgeon has officially opened McQueen Gin’s brand-new 6,200sq ft distillery in Callander (13

BEER Consumers can win a party in Wellpark

Tennent’s offers ‘Key to the Brewery’ in latest on-pack promo Tennent’s Lager has revealed a new on-pack promotion which gives consumers the chance to win a key to the Wellpark Brewery and a party in the new Tennent’s visitor centre. Running across 10-, 12- and 15can formats, promotional packs are available now. They carry a unique batch code that shoppers can enter online to instantly find out if they’ve won either the top prize or one of 40 secondary prizes. The top prize lets the winner host a VIP party for up to 29 friends, complete with food of their choice, a DJ, tour of

the brewery and personalised decorations throughout. Once the party’s over, the prize-winner will also be awarded a year’s supply of product, merchandise and a Tennent’s key for display at home. There are also two secondary prize options up for grabs: 10 x party packs containing cans of Tennent’s, a Sonos speaker, personalised glassware and bunting, or their name engraved on one of 20 bricks on the new ‘Wall of Fame’ located outside the brewery. One hundred tickets to the Tennent’s Story will also be given away.

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

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

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The competition closes on 6 September 2019. Iain Telford, Marketing Services Manager at Tennent’s, said: “We have a lot of loyal Tennent’s fans out there – so what better way to reward our consumers than with a key to the Wellpark brewery, or their name forever carved into the Tennent’s Wall of Fame. “Our Visitor Centre reopened at the end of last year and following a successful relaunch, we can now use the space for unique customer and consumer events, which offer a true Tennent’s touch. We can’t wait to welcome our winners.”

June). An investment of around £750,000 was made in the new facility, which will see the company’s overall manufacture, bottling, packing and shipping capacity increase by more than 1,000%. McQueen Gin is set to create an estimated 15 new rural jobs in the area.

Brewdog UK’s fastestgrowing brand Beer firm BrewDog has been ranked the UK’s fastest-growing brand, according to a new study. The Ellon-based brewer features in Brand Finance’s latest ranking of the UK’s 150 most valuable brands. BrewDog came in 71st, with its brand value found to be up 89% since last year to £1.2bn, “and shows no signs of slowing down”, Brand Finance said.

Stocktaking:

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

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

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

We count ... so you don’t have to.

JUNE 2019 | SLR

14/06/2019 18:06:32

News

Newstrade

Discounter falls out with Menzies over returns Aldi will remove newspapers

News& Magazines

and magazines from all its UK stores as the result of an alleged dispute with a subsidiary of Menzies Distribution. Fore UK was responsible for merchandising the categories in Aldi stores twice weekly, but it has been reported that its field staff weren’t turning up and newspapers weren’t being returned before the cut-off point. This apparently led to a 10% deficiency between sales and returns.

Sunday Times prunes plastic to save planet The Sunday Times is taking an annual total of 35 tonnes of plastic out of the supply chain by removing its plastic outer wrap. As a result, the newspaper and magazine sections will be provided in two separate

ARE YOU GOOD TO GO WITH FOOD-TO-GO? – P52 NEWSPAPERS Reach hits retailers with “second body blow”

Sunday Mirror and Sunday People retailer terms cut as cover prices rise The publisher of the Sunday Mirror and Sunday People has increased its cover price by 10p but accompanied the rise with a reduction in retailer terms. Major publisher Reach has dealt “a second body blow in the space of two months” to retailers by accompanying the latest cover price increases on two of its titles with a cut in retailer terms, says NFRN National President Mike Mitchelson. The prices of both the Sunday Mirror and Sunday People have risen by 10p to £1.70 but the margin that retailers receive has fallen from 21% to 20.5%.

In an open letter, Reach said the cash profit paid to retailers would rise to 34.85p per copy. The letter concludes: “Many thanks for your continued, much valued support for all of the Reach titles.” Mitchelson responded: “What Reach fails to reveal is that the retail margin is down to a new low of 20.5%. Had our terms been maintained we would actually have been receiving 35.7p for every copy sold.

“This is the second body blow that Reach has inflicted on us in just two months. In March the price of the Daily Mirror rose 5p but our margin fell to 20.8p. Now the margin on its two Sunday titles is falling to a new low.” Mitchelson said independent news retailers deserved their “fair share” of price rises to fund “everincreasing” costs. “To say we are disappointed is an understatement,” he ended.

bundles, requiring the existing magazine polybag to be inserted. Insertion fees will apply and be

NEWSPAPERS

paid as normal. News UK plans

Guardian returns to profit, driven by digital

to remove all single use plastic wraps by 2020.

Scottish Sun radio stations celebrate audience rise The Scottish Sun’s DAB and online radio station saw a 41% growth in listeners in first three months of 2019, according to the latest figures published by RAJAR. The newspaper’s three stations achieved a combined weekly reach of 24,000 listeners from January to March – a 41% increase on the previous quarter.

Daily Mail results keep investors smiling The Daily Mail’s parent company reported a 19% increase in first half profits in its trading update for the six months to 31 March 2019. The Daily Mail and General Trust’s underlying earnings climbed to £100m with turnover up 1% to £724m. Advertising revenue from the group’s titles, which includes the Metro, were ahead of expectations. The

Guardian News and Media has returned to profit after a successful three-year strategy to turn its finances around. The publisher of the Guardian and Observer titles made an operating profit of £800,000 for the year to the end of March following a £19m loss the year before and a £57m loss in 2015/16. Much of the improvement was down to a 20% cost reduction over the three years, although revenue grew for each of those years, up 3% to £223m last year. Around 55% of that figure – £123m – is from digital channels, with the company reporting “good growth” in digital advertising, digital subscriptions and reader contributions. This is up from £108.6m last year. Digital revenues overtook print for the first-time last year. Print advertising now accounts for under 8% of revenues. The publisher said it had achieved a record number of readers last year with March 2019 showing 163m unique browsers and 1.35bn page views. It says it now has 365,000 recurring financial contributors and members. Digital subscriptions across the portfolio stand at 190,000, with print subscriptions at a record total of 110,000. The Guardian said it plans to hit a target of two million supporters who financially contribute to the newspaper through regular or one-off payments by 2022.

NEWSPAPERS

Sun Savers hits the million readers mark News UK has announced that its Sun Savers reader loyalty programme has hit the significant milestone of 1 million members. Launched in 2017, the scheme is designed to build a closer relationship between The Sun and its print readers, subsequently driving footfall into stores around the country. Membership has grown by 43% in the last year. This follows the launch of The Sun Raffle and accompanying TV campaign, and the hiring of Sun Savers editor Giselle Wainwright in October 2018. Sun Savers rewards loyal readers with £5 for every 28 codes collected. Unique codes are found in the paper every day. Readers amass their cash in a digital wallet and can withdraw the money as cash or use it for offers within the app.

company’s shares rocketed 9.6% on the back of the news. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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www.slrmag.co.uk

14/06/2019 18:06:32

Research Digest

Baskets containing own label products drop by 4% New research from HIM’s annual Convenience Tracking Report finds fewer shoppers buying own label lines, so is own-label losing relevance in convenience?

here has been a decline in the percentage of convenience baskets containing own-label items, according to the latest research from HIM and sister company MCA

Insight. The recently launched HIM UK Convenience Report 2019 shows that, in 2019, 82% of baskets contained no own-label products. This means 18% of baskets did have an own-label product in it, down from 22% last year. When segmented by store type, the data found an average of 13% of baskets in symbol stores and 14% in independents contained own-label products. In comparison, managed c-stores and super c-stores had a much higher penetration, 34% and 45% respectively. The report highlights that brands are more important than ever in Convenience, with 55% of convenience shoppers stating that they like buying branded grocery products, rather than a generic equivalent.

Blonnie Walsh, Senior Insight Manager at HIM & MCA Insight, commented: “In the current economic environment, where squeezed disposable income and waste reduction are hot topics, it comes as a surprise to see the dominance of brands across the channel. With only 18% of baskets containing own-label products, shoppers are not necessarily looking to trade down within convenience.” Walsh said drinks categories were particularly brand led, with energy drinks, carbonated soft drinks, hot drinks-to-go and lager making up four of the top five brand-led categories. “It is important to understand that this is an overall average and does not mean there is no room for own-label within convenience,” she said. “Managed c-stores and super c-stores are much more balanced in terms of own-label vs. brands, but independents and symbol groups are some way behind.”

Inside Business

FOOD INFLATION CONTINUES TO SLOW The BRC–Nielsen Shop Price Index for May 2019 has shown that food inflation continued to decelerate in May to 1.8%, down from 2.2% in April. Broken down, fresh food inflation was steady at 1.5% in May while ambient food inflation slowed to 2.1%, down from April’s 3.2%. Helen Dickinson, Chief Executive of British Retail Consortium, commented: “Food inflation continued to slow, though it remains above the 12-month average. Rising costs associated with currency depreciation, stockpiling, rising minimum wage and the apprenticeship levy, have all put upwards pressure on prices for a while, and it now appears that retailers cannot absorb them any longer. Therefore, if the Government does not address future cost rises, including spiralling business rates, we may see larger price rises in the future.” Mike Watkins, Head of Retailer and Business Insight at Nielsen, added: “Whilst there are still cost price increases coming through the supply chain, food inflation remains lower than CPI and supermarkets continue to offer price reductions, in particular on seasonal food and drink, which is helping to offset other cost of living increases.”

Debit cards remain UK’s preferred in-store payment method

ew analysis of the billions of payments processed by Worldpay has revealed that debit rards remain the UK’s preferred payment method, representing 32% of all ecommerce transactions and 55% of in-store payments. The report by online marketplace OnBuy.com also predicted that by 2022, almost half of all global ecommerce transactions will be made using an eWallet, increasing from 36% in 2018. The analysis did however confirm that cash is still popular when purchasing in-person at 22%. The report said: “While the predictions of a cashless future won’t come true anytime soon, the use of cash is very much on the decline globally. It is predicted that by 2026 the use of cash will drop to 21%, with the use of eWallets growing globally at a compound annual growth rate of just over 30%.” In-store, the picture is very different with the debit card still the most prevalent payment method at 55%, cash at 22%, credit card at 15%, eWallet at just 5% and charge card at a mere 2%. The sectors showing the most dramatic shifts in payment methods from in-person to ecommerce include Clothing & Footwear (+22%) and Entertainment (+10%). Grocery has shifted by the much smaller amount of 3%.

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14/06/2019 18:06:33

Inside Business

Store Profile | Spar Havannah St

OUR MAN IN HAVANNAH

CJ Lang’s new Spar store in Havannah St in the east end of Glasgow is more than just an outstanding newbuild store, it’s a statement of intent from a rejuvenated 100-year-old company. BY ANTONY BEGLEY

Food to go is at the heart of the new store’s offer.

ince Colin McLean took the helm at Spar Scotland wholesaler and retailer CJ Lang early last year, every move he has made has come under close scrutiny from all quarters. Far from shrinking under the limelight, however, McLean has positively flourished and has presided over a remarkable renaissance of this iconic 100-year-old Scottish company. Where his predecessor Scott Malcolm was a dour and largely anonymous character in the trade, McLean has made his presence felt with an energy and drive that has quickly spread to the wider Spar community in Scotland. There’s definitely a feeling that Spar is back in the game – and not before timem as far as Spar retailers are concerned. 28

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McLean hasn’t been afraid to make tough decisions like overhauling the senior management team, offloading a sizeable portfolio of under-performing companyowned stores and rebooting the company’s newbuild stores programme. Which takes us to the latest bricks and mortar embodiment of the rejuvenated CJ Lang approach, the newly opened Havannah St store in the east end of Glasgow.

FOOD FOR THOUGHT Just around the corner from Tennent’s Wellpark Brewery, the new store is – to put it frankly – stunning. In fact, it’s more than just a beautifully designed, well-thought-out new store: it represents a statement of intent from

CJ Lang. In some senses, Havannah St could be viewed as a distilled version of the much larger Halbeath store the company opened in March last year, but that would be doing the new unit a disservice. Built into the ground floor of an eightstory student apartment block, the store is undeniably pretty to look at and the shopfitting by Vertex is top-drawer as always, but that’s not what makes Havannah St so special. Look a little closer and it becomes clear that Havannah St is actually built on an entirely new model, one that wouldn’t be out of place in, say, Dublin. Which, as it turns out, is no coincidence. On the day of my visit, the day after the unofficial ‘soft’ opening and a week before www.slrmag.co.uk

14/06/2019 18:06:34

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SLR June 2019.indd 29FP A4 Ad_03.indd 1 KPS088 - Terracycle

14/06/2019 18:06:34 22/03/2019 16:28

Inside Business

Store Profile | Spar Havannah St

the full opening, I was treated to a guided tour of Havannah St by Stephen Brown, the man Colin Mclean brought with him from Scotmid to head up CJ Lang’s food-to-go team.

IRISH INFLUENCE Stephen, as anybody who knows him is aware, spends more time in Dublin than Bono – and that’s where he has drawn much of his inspiration for the next generation of company-owned Spar stores. “I’ve been going to Dublin specifically, and Ireland more generally, for years and years because they just do convenience so well over there,” he explains. “They’re just on a different level, particularly when it comes to food-to-go, and we wanted to import some of that into our stores over here because food-to-go is critical in convenience right now, absolutely critical.” Which partly explains why it’s tempting to come away with the impression that Havannah St is more of a high-end food-to-go outlet with a convenience store built into it, rather than the other way round. The first sight that greets customers as they walk through the door, for instance, is an immaculately presented bank of food-togo solutions: a F’real milkshake machine, a Skwishee machine, a Costa Coffee unit and a Dots doughnuts stand. Likewise, the entire back wall of the store is given over to a Daily Deli serve-over counter. In between is an extensive range of chilled food-to-go products including baguettes, salads and sandwiches made fresh each day in-store in the purpose-built restaurant-grade kitchens. ABOVE: A striking spirits fixture sites where the tobacco gantry traditonally held court.

RIGHT: The store sits at the bottom an an eight-storey student accommodation block.

RIGHT: Two self-service tills cater for the fast-paced lives of the students and office-workers that will make up the bulk of the store’s customer base. 30

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GROCERY GONE What’s notable by its absence is anything resembling a standard ambient grocery range and even the core traditional convenience range is pretty narrow. This is not a new store, it’s a new direction. Let’s get one thing straight however, and it’s an important point: the store is not serving a traditional convenience store audience. The vast majority of regular custom is certain to come from just two sources: the 1,200 students that live in the apartments that surround the store, and the 1,100 council workers who occupy a nearby set of offices. In that sense, CJ Lang can afford to take a bit of a flyer on a new ‘urban transient’ style store with food-to-go very much at its heart. “We know it’s not a standard Spar store,” explains Brown, “and we built it expressly with these two key audiences in mind, so we could afford to be a little more adventurous than we’d be in a store that sits in the middle of a housing estate or on a main street.” One concern of all stores that rely on students is the inevtable drop off in footfall www.slrmag.co.uk

14/06/2019 18:06:36

ARE YOU STOCKING THE UKâ&#x20AC;&#x2122; S BES T SELLING FRUIT CIDER BR AND?

KOPPARBERG IS THE BES TSELLING SINGLE BOT TLE FRUIT CIDER BRAND IN SCOTL AND

STOCK UP NOW IRI, Value sales, Fruit Cider, 52 weeks to 24/03/19

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Inside Business

Store Profile | Spar Havannah St

RIGHT: An extensive fresh range for today’s healthier students.

A dedicated gifting area helps drive up footfall and basket spend

when term times end, but that’s not an issue in this case. The student accommodation is privately owned so even when term time ends the apartments still see plenty of use. Occupancy levels are 97% so the store in theory should have year-round custom. It’s also worth noting that a large percentage of the students – around 30% of them – are Chinese, which explains a dedicated Chinese foods bay.

DESTINATION PROFIT

CHILLER CHALLENGE One unusual challenge that the store faced was the refrigeration equipment to install. Sitting at the bottom of an eight-storey block of apartments, installing chillers that required remote condensers would mean siting the condensers on the roof which would have hugely complicated both installation and maintenance. CJ Lang worked with shopfitters Vertex to tackle the challenge and identified some next-generation chillers and freezers from Pastorfrigor as the ideal solution. Vertex Director Alistair Hosie explains: “We knew from day one that refrigeration was going to be an issue so we did a bit of research for CJ Lang and managed to source some integrated solutions from Pastorfrigor that delivered all the benefits of remote units without the need to stick condensers eight floors away on the roof.” The fridges and freezers chosen were Pastorfrigor Genova Panorama MC units. “There are 11 of these units in Havannah St,” says Hosie. “And we installed them all in about six or seven hours. It was pretty amazing really. They’re effectively plug and play, they put out hardly any heat and they also come internetenabled which means we get live feeds from them 24 hours a day and can instantly highlight if there are any problems that need attention.”

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The area has a high percentage of Chinese students.

“It’s all about making the store a destination store,” says Brown. “We were trying to add as many great reasons for customers to visit as we could, products and services that they can’t easily get anywhere else nearby.” The Chinese range is a good example but so too is the American candy bay, the fresh baked speciality bread offer, the free-from section, the better-for-you nuts and seed display, the vaping range, the gifting island. There is very little in the store that shoppers can get anywhere else without having to jump into a car. There is also a strong focus on local and regional sourcing with big ranges from companies like Brownings the Bakers. A strong fresh offer is also in place, in line with the healthier approach to life that today’s students appear to be taking. “It’s not like back in the day when the staple diet for students was a bottle of vodka and a Pot Noodle,” laughs Brown. “They tend to eat much better these days and we’ve tried to cater for that in the store.” With an Aldi just a few minutes’ walk away, the decision to almost entirely do without a grocery range makes even more sense. “We don’t see the store competing with Aldi,” muses Brown. “If customers want cheap tins of beans or a cheap loaf, they can go to Aldi. What we have done in our store is give our customers something different. It’s not all about price in this store.” www.slrmag.co.uk

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Spar Havannah St | Store Profile

And that is the nub of the matter. Havannah St is not about offering cheaper prices than the competition or better promotions. In fact, you need to work hard to even find promotions in the store. No, the focus is clearly on building USPs and reasons why customers should visit the store – and none of those USPs involve being cheaper than the competition.

Inside Business

LEFT: Doughnuts and local sourced bakery complements the hot and cold drinks section and drives impulse spend.

MARGIN MAKERS A desirable consequence of this approach is that most of what’s available in the store delivers exceptionally high margins, often 60% or higher. “With costs like the minimum wage rising every year the focus has to be on products and services that deliver both volume and margin,” says Brown. “Coffee, shakes, the Skwishee machine, the hot food-to-go offer, the Rollover hotdog machine, the freshlyprepared wraps and sandwiches – all of these offer great margins and our experience already is that customers are happy to pay for that enhanced experience.” The store is also embracing quick, convenient payment options with two selfservice tills that sit to the right of the manned counter. Many retailers have reported mixed findings from installing self-scan units but Brown insists that this option is important to a lot of the shoppers that come to the store. He explains: “Today’s customers expect the option to self-checkout so we’ve given them that option. Not everyone does, of course, which is why we still have the manned tills but we’re already seeing lots of customers, particularly the students, quick to start using self-scan. It’s just the way the world is going these days.”

BELOW: The Daily Deli offers an evolving menu of savoury and sweet items throughout the day to cater for all day-parts and meal occasions.

CONCLUSION It’s hard not to be impressed by Havannah St and the bold new direction that CJ Lang is heading in, with a very clear commitment to building a destination store with a laser focus on margins and a welcome side-lining of the role of cheap prices and wall-to-wall promotions. Convenience is at a critical point in its evolution and the industry-wide addiction to price and promotions needs to be addressed sooner rather than later. Spar Havannah St is an inspirational example of how that challenge can be met – and is another marker laid down by Colin McLean and his team that Spar is very much back in the game in Scotland. www.slrmag.co.uk

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14/06/2019 18:06:42

Inside Business

#ThinkSmart3

MYSTORE+ APP SET TO BRING RETAILERS AND BRANDS CLOSER

An innovative new app launched by News UK and McCurrach is hoping to bring brands and local retailers closer together than ever before to deliver business growth for all. 34

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xxxx

ven though apps have clearly taken over the world, there are very few that are explicitly aimed at helping local retailers run more profitable businesses. Step forward MyStore+, an innovative new app from The Sun and The Times publishers News UK and Glasgow-based field marketing and sales solutions agency McCurrach. The app, described by its creators as “the biggest tech innovation in convenience retail”, aims to help brands and retailers grow their business together by enabling retailers to access category and brand advice, offers and rewards. McCurrach and News UK say their mission with MyStore+ is simple: to drive business growth by helping brands and retailers connect with each other. What does that look like in reality? MyStore+ enables retailers to access category advice to help them stock the right products and planogram their space to maximise sales. Retailers can also then access exclusive offers and rewards from brands for executing activity in their store and for sharing that insight with brands – typically by sending a photograph of the finished fixture or display. “We’re making it simple for retailers by ensuring all of this is available for multiple brands and categories in one place through MyStore+,” says McCurrach Strategy and Marketing Director, Gordon Neil. For brands, MyStore+ will help drive engagement by providing retailers with new content, offers and rewards to access all the time.

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Inside Business

MyStore+ has been developed to make it simple and cost effective for brands to provide retailers with the advice, offers and rewards that drive execution and sales in-store. This makes connecting with convenience retailers accessible for all brands. News UK’s Director of Retail Sales, Neil Spencer said “We are extremely excited to form this partnership with McCurrach. News UK has always been passionate about helping retailers grow and connecting brands with more retailers for the benefit of the convenience sector. MyStore+ is an innovative way for us to do this across our independent retail customer base of 35,000 retailers. We’re also going to leverage our React proposition through the app to work with brands and retailers to unlock growth through retail marketing and activation.” News UK will work with McCurrach to engage with the 12,000 retailers they visit through their retail sales team and the 35,000 convenience retailers who sell news every day of the year. Gordon Neil added: “We’re very excited about the opportunity to help retailers and brands connect to unlock business growth. In working with News UK, we have the best partner in the industry to do this with. We’re both passionate about leveraging digital innovation to help make it easier for brands and retailers to connect and the strength of News UKs relationships with 35,000 convenience retailers will ensure that we scale rapidly together.” The MyStore+ app is available across iOS and Android platforms and can be downloaded from the Apple App Store and Google Play. JUNE 2019 | SLR

14/06/2019 18:06:43

Inside Business

Healthy Living Programme Rebranding

HEALTHY LIVING PROGRAMME GETS FRESH NEW LOOK

The SGF Healthy Living Programme has been given a fresh new look with a new logo and a raft of new in-store POS and marketing materials. 36

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Healthy Living Programme Rebranding

aunched way back in 2004 as a partnership between the Scottish Government and industry, the SGF Healthy Living Programme (HLP) has made massive strides in helping improve the diet of Scotland’s consumers. Initially created to encourage the sale of fruit and vegetables through convenience stores, especially for those on lower incomes or without a car, the Programme has been an undeniable success thanks in no small part to the fact that it has been enthusiastically embraced by the Scottish local retailing community. Part of that success in engaging with retailers is down to the fact that the Programme has always taken a pragmatic approach to working alongside retailers, accepting and acknowledging that the shift in consumption patterns it was hoping to drive would only work if the commercial concerns of retailers were also taken into consideration. There are now more than 2,300 stores who have joined the Programme with the majority in low income areas. Sales of fruit and veg have also risen considerably in Scotland, up 6% in the last three years alone. In recent times, the Programme has broadened the scope of its ambitions beyond just fresh fruit and veg and is working hard to encourage healthy eating in general, with yet more positive results. HLP Director Kathyrn Neil says: “Research shows that more than one-third of people are now eating more healthily than a year ago and half of all consumers are looking to consume more vegetables in the next 12 months, for instance.” In order to build on the huge momentum behind the Programme, Neil has overseen a recent full rebranding and refocusing of the organisation. www.slrmag.co.uk

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Inside Business

Neil comments: “We realised that the Healthy Living Programme needed to help make it easier for Scotland’s local retailers to sell a wider range of healthy products, not just fresh. To allow us to achieve this, we needed to make some fundamental changes to the Programme across five specific areas: staff, branding, POS, display equipment and social media”. Consequently, Gillian Edgar has been promoted to a new position of Field Manager while two new Development Managers have been unveiled. Barrie Wilson has joined as Development Manager for the Central region and Anna Bonner has come on board as Development Manager for Glasgow. “Both have worked in the industry for a number of years so come with a wealth of experience”, explains Neil. To give the restructured organisation a further boost, the Programme branding has been given a fresh new look including a new HLP logo and new in-store materials such as stands and POS. “The new logo has been designed to broaden our focus away from just fruit and veg and onto a wider healthy eating agenda,” says Neil. “Similarly, new Healthy Living in-store stands have been created that can accommodate not only fresh fruit and veg but also other healthier products. “This allows the space to work much harder for retailers,” she says. The new stand is similar in height and width to the current model but has double the capacity. It will be introduced gradually over the coming months although, due to financial constraints, existing stands won’t automatically be swapped out. Embracing the new digital and social media age, Neil has also unveiled a Facebook page for the Programme for the first time which can be found at facebook. com/healthylivingprogramme. JUNE 2019 | SLR

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Inside Business

Deposit Return Scheme

DRS TRIAL A RESOUNDING HIT WITH RETAILERS AND SHOPPERS

The results from a three-store trial of Envipco’s Flex reverse vending machine clearly demonstrate that both retailers and shoppers have embraced DRS enthusiastically and positively.

hile Scotland’s proposed Deposit Return Scheme (DRS) has been hitting the headlines for a long time, the only real way to establish how a DRS would work in practice was to actually site some reverse vending machines (RVMs) in Scottish stores – and that’s exactly what one RVM manufacturer did earlier this year. Working with the Scottish Grocers’ Federation (SGF), Envipco installed its ultracompact Flex RVM in three stores across the Scottish Central Belt for a three-month live trial from 11 February to 14 May. The trials were supported by recycling company Viridor who collected the recycled cans and plastic bottles from each store. Only by putting the machines to work in convenience stores would the industry truly learn how they performed in the real world. The RVMs were sited in three SGF member stores: Q Premier Broadway Convenience Store, Edinburgh Q Nisa Bellshill Q KeyStore Moredun, Edinburgh. The trials are now complete and the results are overwhelmingly positive. In total, some 57,491 containers were accepted by the Flex machines in-store. Of these, 32,941 were cans and 24,550 were PET containers. That represents an impressive 500kg of plastics and aluminium.

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Deposit Return Scheme

DRS TRIAL:

Equally important is the fact that 99.7% of the materials recycled were classified by Viridor as “high quality” and “clean”. This means almost all the materials collected can be truly recycled into new cans and bottles, unlike the vast majority of kerbside collections which get ‘downcycled’ into non-foodgrade containers. Envipco’s UK Managing Director Spencer Roberts comments: “The results of the trials have been exceptionally positive and demonstrate quite clearly that both retailers and consumers are able and willing to make regular use of RVM technology to dramatically increase recycling rates of high-quality materials.” Roberts also expressed delight that some 42% of the money that shoppers received back when returning their containers was donated to local charities. “Shoppers had the choice of taking a voucher to spend their deposit money instore or donating it to charity. It is a pat on the back to shoppers in the three trial stores that almost half of them chose to donate their deposits to charity,” he says. The good news didn’t stop there. Almost three-quarters of shoppers surveyed (72%) said they had a “much better opinion of stores with a machine” with a similar number of shoppers saying the Flex machine was “extremely easy” to use. Importantly, the trials saw a 9.8% increase in footfall as a result of shoppers being able to www.slrmag.co.uk

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Inside Business

KEY

RESULTS Q 57,491 c ontainers re cycled Q This repre sents 500k g of plastic and alumin s ium Q 99.7% of the materia ls recycled officially cla ssed as hig h quality Q 42% of d eposits do nated to charity Q 8% incre ase in store footfall Q 72% of s hoppers ha v e a “much better opin ion of the s tores” recycle locally, with many customers saying they previously did not shop at the store. As for the retailers involved, all three said the trial had been an extremely positive experience with the machines working well, customers embracing the concept and staff finding the Flex simple to maintain, empty and clean. Abdul Majid of Nisa Bellshill says: “I have to say the Flex machine was very, very efficient and effective with no issues at all. It was very intuitive for my customers to use and it definitely created a talking point in the local area. It was very straightforward for my team to maintain and Viridor did a great job of picking up the recycled cans and bottles promptly and efficiently. “I was also very pleased to be able to donate thousands of pounds to the St Andrews Hospice, my chosen charity.”

Over in Edinburgh, Linda Williams of Premier Broadway had a similar experience: “It was very easy to use, my customers understood how to use it very quickly and it was universally well received by our local community. Like Abdul, we also raised thousands of pounds for a local charity, the local school in our case, and that was very pleasing as we take our role at the heart of our community very seriously.” Finally, Asif Bashir of KeyStore Moredun echoed the thoughts of the others describing his experiences of using the Flex as “extremely positive”. He says: “It was well received by the community and we had lots of customers using it regularly. We promoted it on Facebook and were overwhelmed with the response we got. I also have to say that the local area is cleaner than it has ever been with absolutely no can or bottle littering thanks to the trial.” For Envipco’s Roberts, the results were extremely heartening. He concludes: “We know that our technology is effective and we know that driving up recycling rates is something that local retailers can help with. To see such positive results from these trials in terms of both the volume and quality of materials recycled and the experiences of retailers and shoppers is just wonderful. We believe the Flex, with its ultra-compact footprint, will be ideal for the majority of Scotland’s local retailers.” JUNE 2019 | SLR

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Inside Business

SGF Mini Summit

SUMMIT TO I CHEW ON Free samples aside, there was plenty for retailers to get their teeth into at the latest SGF mini-summit where food-to-go, free-from, fresh and news were all on the menu. BY FINDLAY STEIN

t was pretty much a full house in Falkirk’s Macdonald Inchyra Hotel for the Scottish Grocers’ Federation’s recent minisummit (30 April), where an audience of retailers, suppliers and other industry figures listened to seminars on free-from, fresh and the importance of the news category. SGF Chief Executive Pete Cheema kicked proceedings off with a bang by announcing a £300,000 extension to the Scottish Government’s Food-to-go grant scheme. Retailers can apply for grants of up to £7,500 in matched funding to develop the food-to-go offer in their stores. A total of £250,000 was distributed under the scheme in 2018, which will again be administered by SGF. Successful applicants must show a commitment to local sourcing and to offering a range of healthy eating options.

TWIN CHALLENGES Cheema was followed by Martyn Parkinson, Booker’s Brand Director for Premier and Family Shopper, who gave advice to retailers thinking about making a go of food-to-go. Referencing SLR’s April cover story ‘Is 30% the new 20%?’, Parkinson said retailers had to embrace the category to fight off the twin challenges of declining footfall and increasing costs. Tapping into a market worth £21bn wasn’t difficult, he said, “but you have to do a really good job” to capture the customers who visit a c-store to buy a newspaper and cigarettes then go to McDonald’s or Greggs to spend £5 on a high-margin breakfast. Parkinson’s straightforward advice was to start with bean-to-cup coffee (pricechecked against the likes of nearby Greggs and McDonald’s) before building on that foundation with a good sandwich meal deals. This is exactly what Premier’s Victoria Dock ‘store of the future’ in Hull did, said Parkinson. The store sits in the middle of a housing estate with no passing traffic but is shifting 600 cups of coffee per week and 75 sandwich meal deals a day.

MORE THAN A COFFEE MACHINE The food-to-go theme was extended by Craig Duncan, Head of Business Development Scotland and Northern England for Costcutter. Duncan acknowledged that food-to-go is not equally relevant to all retailers. While there are huge wins to be had, this was perhaps easier for a city centre store with high footfall, he said. There were clear opportunities, however, for suburban and rural stores who get the offer right. 40

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SGF Mini Summit “Food-to-go is about more than having the right brand of coffee machine in store,” said Duncan. “It’s about knowing your customers well, what they want and what they’re going to buy into.” He shared the example of KB Stores in St. Andrews where Costcutter retailer Anila Anwar was frustrated that food-to-go shoppers were leaving empty-handed. The store is under 1,500sq ft and had a lot of space given over to grocery over its four aisles. Anila ripped out a central aisle to create a big foodto-go space full of simple solutions, resulting in a five-fold increase in food-to-go sales. Duncan then showcased Stuart Mitchell’s store in Newburgh, Aberdeenshire. Stuart was one of the first retailers to take advantage of the food-to-go grant, practically doubling the size of his offer. He supports local producers and uses bespoke labels to build confidence and trust. He also offers a range of healthier options easily produced in-store, like small tubs of grapes and mixed fruit packs. In conclusion Duncan said retailers “had to invest to progress,” urging them to make the most of the funding available.

THE NEXT BOTTLED WATER The shift towards healthier options in the snacking market was discussed by Ken Cameron, Account Controller for Nairn’s Oatcakes, as he launched the seminar on free-from. Comparing the category to bottled water, which grew from a niche product to “multiple facings in every half-decent chiller”, Cameron predicted free-from will be worth £1bn by 2023. He flagged gluten-free and sugar reduction as the two main trends in healthy snacking currently. His advice to retailers was to make space for a range of healthy snacks alongside the more traditional impulse offerings, but not to expect similar rates of sales to crisps and Mars Bars.

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CARDBOARD NO MORE Picking up on Cameron’s theme, Victoria Sowerby, Ecommerce Manager for Quorn Foods, then talked about the changing attitudes of shoppers towards food. She said vegetarianism and veganism used to mean “tasteless vegetable nuggets” or “cardboard burgers” but now present a real opportunity, perhaps best witnessed by the runaway success of the Greggs vegan sausage roll. It’s notable that two of the day’s other speakers also mentioned this marketing phenomenon, and the whirlwind of publicity and social media activity that accompanied its launch. Meat-free is one of the fastest-growing categories in both value and volume in an otherwise stagnant grocery sector, she said, as more shoppers start to understand the impact of meat on the environment as well as its health implications. With 14% of the UK’s population describing themselves as ‘flexitarian’, Sowerby said it was important to provide solutions for these shoppers, given that almost one-third (29%) of all evening meals now don’t contain meat. Quoting David Attenborough, who said mankind must stop eating meat for the good of the planet, she said Quorn thinks meat will be “the next big thing” to grab the public’s attention after single-use plastic. So why should retailers embrace meatfree? With grocery struggling, Sowerby said meat-free can drive growth and provide an incremental opportunity. Meat-free shoppers are “very loyal”, she said, and will return to your store if they can find the products they’re looking for. They also spend four times more in store buying other items to build meal solutions, she concluded.

THE NEW CONSUMER The free-from seminar was concluded by Costcutter’s Craig Duncan who returned to the stage to urge retailers to be aware of

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the new consumer emerging, and how their attitudes and decisions were starting to shape the market. Duncan went into some depth profiling the new generation of “mindful” consumers that retailers should target, warning that free-from was still a category “on the fringes” of many retailers’ offer and thinking. Duncan then shared the learnings from Costcutter retailer Allan McCorquodale’s store in Eskbank, a “reasonably affluent” suburb of Edinburgh with “switched-on” shoppers very attuned to the benefits that free-from can bring. Acting on this, Allan has created a buzz around free-from in his store. He offers a variety of products at different price points to cater for shopper needs. Allan stocks several Alpro SKUs and the dairy-free milk’s popularity with customers led to the introduction of Violife dairy-free cheese. He is also seeing growing demand for gluten- and alcohol-free wine and beer. It’s worth noting that Allan merchandises free-from products in the relevant category, rather than lumping them all together in a dedicated free-from aisle. This, Duncan said, made it much easier for ordinary shoppers to recognise that alternatives were available to facilitate the switch into healthier products. It also meant that customers with health-related dietary requirements didn’t feel confined to a single area of the store.

FRESH FOCUS The day’s second seminar focused on fresh. It kicked-off with Costcutter’s Mike Owen, Category Director, Fresh Frozen and Direct to Store, discussing what a great fresh offer enables retailers to do. Fresh, he stated, “pulls customers through the door” and “absolutely drives footfall”. One of the biggest product areas on which a store is judged, Owen said a good offer will drive a retailer’s brand credentials.

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Inside Business

SGF Mini Summit

Not only will fresh and food-to-go help boost sales, they also – with their higher margins than ambient products – will help push GP towards that much-discussed and all-important 30%, he added. Owen told the audience that it was fundamental to understand what shoppers want, especially the ones who aren’t coming in, and create the range they need. He said shoppers were time hungry and want value-for-money meal solutions that are quick and easy to prepare, highlighting the importance of having not just an evening meal deal, but a range of timed solutions throughout the day. Addressing the issue of profitable waste, Owen said “you have to invest in some waste to get new shoppers in the door”. It is vital

a wide range of healthy products. To facilitate this, she heralded changes across five areas: staff, branding, POS, display equipment and social media. Announcing the promotion of Gillian Edgar to Field Manager and the appointment of two new Development Managers, Neil unveiled a new HLP logo that focuses more on health rather than just fruit and veg and has the new strapline “Love life. Eat well.” The rebrand also includes a new stripped-down range of POS material and a new-look HLP display stand, which can now accommodate not only fresh fruit and veg but also other healthier products. This, Neil said, allows the space to work harder for retailers. The new stand is similar in height and width to the current model but has double the capacity. It will be introduced gradually in the near future but, due to financial constraints, existing stands won’t be swapped out. Neil concluded by launching a Facebook page for the Programme, to be found at facebook.com/healthylivingprogramme.

RETAILER’S VIEW

to keep shelves fully stocked because, as he pointed out, if something’s there one day and not the next then customers won’t come back. He said waste was an investment that grows sales in the long term.

HEALTHY LIVING SHAKE-UP The SGF’s Healthy Living Programme (HLP) has been promoting fresh food since its inception and it seems the public are increasingly getting the message. The Programme’s Director, Kathryn Neil, told the audience more than one-third of people are eating healthier than a year ago and half of consumers are looking to consume more vegetables in the next 12 months. To keep up with these trends Neil said the HLP needs to make it easier for retailers to sell 42

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Day Today Elite store owner Mohammed Rajak, Owner of the Day Today BuyWell Store wrapped up the session with a retailer’s perspective on both fresh and food-to-go. Mohammed’s store in Glasgow’s east end sits in an area of fierce competition provided by 70 other nearby retail units. It is close to a main road and a railway station and commuters are Mohammed’s “bread and butter”. Like Owen before him, Mohammed said fresh produce was a barometer of how well a store was doing and how dedicated you were to retailing. He stressed the importance of using local suppliers when sourcing fresh produce. You must also target the right audience and have a unique selling point, he said, to keep customers coming back “day after day”. Before he got serious about fresh, Mohammed admitted he was one of the retailers Owen referred to “who wanted 0% waste”. He took the advice of Day Today, who told him he needed to have profitable waste to offer the right range and choice for customers. “It will also help you make the leap to 30%.” Mohammed worked with United Wholesale’s merchandising team and the SGF to get his fresh range right, and it now accounts for up to 40% of his grocery revenues. In his experience, meal deals, a home baking range and fresh flowers and plants are all good footfall drivers. www.slrmag.co.uk

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SGF Mini Summit

Mohammed concluded by urging retailers to embrace the SGF’s Healthy Living Programme. He said they were “a great team to work with” that had had an amazing impact on his store.

WHAT’S NEW IN NEWS? The mini-summit was wrapped up with a seminar on the ‘Importance of News’. The Times Scotland Editor Magnus Llewellin, despite his PowerPoint presentation going AWOL, gave a fascinating insight into a day in the life of a national newspaper editor. Parent company News Scotland had invested heavily in The Times, he said, to help maintain share in an increasingly competitive market where buying a newspaper is now a considered purchase. “The days of people buying two or three papers a day are well and truly gone,” he said, a fact that local retailers are only too well aware of. Looking to the future, he said the focus was on to continue growing the Times as a brand as it was in the interests of everyone that the indigenous newspaper market continues to thrive. In conclusion he said that the network provided by local retailers was “vital” to the future of the industry. Llewellin’s colleague, the News UK Retail Sales Director Neil Spencer, then acknowledged the challenges faced by the news industry. People are consuming more news but differently, he said, adding that more people now viewed news online than looked at Facebook. With a value of £1.8bn, £700m more than bottled water, Spencer said news was still a vital category that “brings people into your store”. He said it was an asset that had to be worked harder to get as much value for retailers as possible. To that end he highlighted the Sun Savers scheme, “the most valuable rewards scheme in the UK of any brand,” as a particular footfall driver and mentioned the Times subscription programme, which can earn retailers up to £40 per conversion. He also showcased the company’s React scheme, which allows food and drink brands access to in-store activation to generate crosscategory sales, and MyStore+, a new app that gives convenience retailers access to category and brand advice, offers and rewards. The mini-summit, chaired by industry veteran and convenience retail consultant Mike Gordon, also included a bustling trade show which hosted somewhere in the region of 25 exhibitors. www.slrmag.co.uk

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Inside Business

“Food-to-go is about more than having the right brand of coffee machine in store. It’s about knowing your customers well, what they want and what they’re going to buy into.” CRAIG DUNCAN, HEAD OF BUSINESS DEVELOPMENT SCOTLAND AND NORTHERN ENGLAND FOR COSTCUTTER

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Inside Business

The Experience Economy

VALUES AND AUTHENTICITY KEY IN THE ‘EXPERIENCE ECONOMY’ Issues like sustainability and ethical stance are increasingly important to today’s shoppers when choosing which stores to use, and will become even more so in the future – so how well do you live your ideals and how well do you communicate them to your customers? BY BLAKE GLADMAN

“We all like to spend more time with people we like, respect and who share the same values as us. It’s no different when it comes to the stores we choose to spend our time and money in.”

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f you consider all the factors at play when consumers decide upon which brand to buy, what retailer to shop at or what restaurant to go to for dinner, the usual suspects spring to mind: price, range, quality, availability, value for money, speed or service, customer service, atmosphere and so on. Yet there are other factors that are becoming increasingly important to today’s shoppers and these aren’t factors that local retailers don’t necessarily see as key. According to our research, around half of consumers now consider the brand’s approach to health, the environment and its ethical stance as major factors in influencing their decision, and these factors are becoming more important to consumers as time goes by. Think of it like psychologist Abraham Maslow’s ‘Hierarchy of Needs’. When the basic ones such as price, quality, customer service and so on have been established and compared, then comes the psychological and self-fulfilling needs. This is where the ethics and ideals of the business in question come into play.

LIVE YOUR IDEALS However, establishing your ethical and sustainable credentials and communicating them to shoppers isn’t as easy as just posting something on Facebook or running an advert saying you care about the environment. You need to ‘live’ your ideals in order to truly resonate with consumers of today. In a lot of ways, they see brands the same way they see their friends: they feel a close personal connection

with them because they share so much with them and know so much about them in return. Everything a brand does – from how it treats its staff to how it disposes of its waste and how it interacts with the local communities in which it operates – is all, somehow or another, in the public domain, and it’s by these actions that consumers measure a company, not by what it says in its adverts. But don’t forget that what’s good for the environment and good for the community also tends to be good for business. We all like to spend more time with people we like, respect and who share the same values as us. It’s no different when it comes to the companies we choose to spend our time and money with. Actively engaging with the local community and proactively contributing to good causes and publicly driving home your ethical credentials are great ways to show your customers that they should want to give you their business.

AUTHENTICITY MATTERS The key, however, is that it must be authentic. Nurturing and maintaining authenticity is a surefire way to gain credibility and loyalty but, more importantly, a lack of authenticity or worse – trying to fake it – is a one-way ticket to the bottom of the pile. If you’re not there yet but have a desire to get there, then don’t worry – start the journey now and make sure you share that journey with your customers. They want the real you, warts and all. This is key – customers know we live in a world that isn’t perfect so to see a retailer acting as if they operate within a www.slrmag.co.uk

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The Experience Economy

“We are no longer selling products, we are selling solutions and experiences. Retail has moved away from a commodities business and into a hospitality business.”

perfect world immediately rings alarms bells and gives off an aura of inauthenticity. The way to truly connect with today’s consumer is to embrace the challenges you face, embrace the mistakes you make and to celebrate your successes with them. Just as a friend would do.

GET SOCIAL The beauty of the modern connected world is that it is easier than ever to bring your customers into your world and share your journey with them. Consumers of today are more knowledgeable about global issues and more aware about the impact they, and the businesses they use, have on the wider world. The biggest driver of this change is by far and away, social media. Some 67% of the UK population are active social media users – who spend on average 1hr 50 mins per day scrolling, liking, commenting and sharing. The medium has opened the everyday consumer’s eyes to the impact that ‘bad behaviour’ is having on our environment – from images of plastic-filled oceans, vast deforestation, food wastage on the streets, low-paid supply chains, and unfair treatment of staff. Not only can people see more readily and vividly the impact of their actions and the actions of businesses, but they can ‘show off’ the positive changes that they are making – be it ditching a plastic straw, using a reusable www.slrmag.co.uk

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coffee cup or marching for the campaign against climate change.

MAKE A DIFFERENCE We all believe we can make a positive change and make an impact. This for me is the key to responsible retailing in terms of connecting it with the consumer. As it’s very hard for a consumer to engage with calls to ‘help stop climate change’ or ‘improve the healthy eating habits of the nation’. Keep it simple, keep it actionable and if it’s ‘shareable’ then you’ve got the holy grail. For example, the UK is likely to be throwing away about 295 billion pieces of plastic every year, much of which cannot be recycled. A huge issue. However, there are very simple things that retailers and consumers can do which directly tackle this issue and can make a tangible difference. Reducing unnecessary use of plastic packaging in-store, banning plastic carrier bags, encouraging use of reusable cups and deposit return schemes are all actions that can be implemented by retailers and consumers. Iceland was the first major retailer to commit to removing plastic packaging from its own-label range of products, but it certainly won’t be the last. Independent retailer Andrew Thornton – who owns Budgens store in Belsize Park, London – now offers more than 1,800 SKUs of plastic-free packaged products.

Inside Business

Store sales are up, and every retailer is looking at this store as their inspiration for the future. What five years ago would have been seen as madness is now revolutionary.

KEEP IT ACHIEVABLE Responsible retailing is about tackling the big issues of our time, but if we don’t start with achievable goals we won’t get the engagement of our consumers and without them we won’t be able to go on the journey together. Keep it simple, keep it actionable and make it shareable – as this will create the impact in order to make an impact. The overarching theme is one in which we collectively need to be clear that as consumerfacing businesses, we are selling solutions and experiences. We are no longer selling products. Retail has moved away from a commodities business and into a hospitality business. Convenience is no longer about store formats, size or the range of products you have, it’s about how easy and relevant the experience is to your shoppers. We are all living and operating within the ‘experience economy’. The term was first coined by Joseph Pine II and James H. Gilmore in 1998 through their book of the same name and outlined the move from shifting ‘stuff’ to connecting with customers on a more emotional level. This trend has of course been popular with industry experts and analysts for many years now – the experience economy being, essentially, the next global economy following on from the industrial and, most recently, service economies. Latest figures show we are continuing to spend less money on buying things, and more on doing things – and telling the world about it online afterwards, of course. From pubs to shops, businesses are scrambling to adapt to this shift.

OPPORTUNITY ABOUNDS The beauty is that there is so much opportunity out there for retailers to embrace the experience economy – immersive technology, local craft produce, social engagement, digital media – all these tools are at our disposal to create the feeling of a meaningful relationship between brand and buyer, online and offline. Plus, there is a customer out there who is craving these experiences and just waiting to share them on social media. Businesses already dealing in experiences are enhancing them to benefit from this shifting economy. Blake Gladman is Strategy and Insight Director at KAM Media and spoke at SLR’s recent Sustainability in Local Retail conference. If you are you looking to understand how your business can benefit from the experience economy or want to know more about sustainability and other future consumer trends, get in touch at kam-media.co.uk. JUNE 2019 | SLR

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Product News & Media Watch

Lucozade Energy Watermelon & Strawberry Cooler Lucozade Ribena Suntory This new summery variant is available now in cases of 12 x 1-ltr (RSP £1.99), 24 x 500ml (RSP £1.35) and 12 x 380ml (price-marked £1.09 or 2 for £2). It will be supported as part of a £2m advertising campaign that includes outdoor, digital and shopper-facing adverts. For more information, call LRS on 08702 408601 or visit www. lrsuntory.com.

Haribo Limited Editions Haribo Starmix Exotic Fruit features an alphonso mango heart, a passion fruit & strawberry egg, a maracuja bear and a guava & grapefruit bottle. Wild Berry Tangfastics offers a blueberry & elderflower dummy, a cassis bottle, a cherry croc and a gooseberry-flavoured cherry. Both are available in a range of pack sizes. To find out more, call Haribo on 01977 600266, email salesuk@haribo. com or visit haribo.com.

Tropicana Whole Fruit PepsiCo This new range of juice drinks contains 50% more fibre than the average fruit juice or smoothie. It is available now in Orange and Apple variants in outers of 8 x 150ml (RSP £1.49) and 6 x 750ml (RSP £3.29) packs. A 4 x 150ml multipack (RSP £3.29) is also available, in cases of four. The launch will be supported by a multi-millionpound advertising campaign, spanning TV, social media and in-store support.

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Irn-Bru launches energy drink In what will probably be the biggest product launch to hit Scotland in 2019, Barr Soft Drinks has unveiled a new energy drink. Irn-Bru Energy will be available from 1 July in outers of 12 x 330ml sleek cans in regular (RSP £1.19 or 99p PMP) and no-sugar (RSP £1.09 or 89p PMP) variants. Barr’s decision to opt for one of the more exotic pack formats coupled with the striking design, which sees the famous strongman given centre stage, should ensure cans stand out in chillers. The new drink combines the flavour of Irn-Bru with the taurine, caffeine, B vitamins and taste of an energy drink. SLR has sampled both variants and can report that, if you like Irn-Bru and you like energy drinks, it’s a bit of a nobrainer. The company’s research seems to back this up. Jonathan Kemp, Barr Soft Drinks Commercial Director, said: “We know that

Best-one Ready Meals Bestway Wholesale The 10-strong chilled ready meal range includes Beef Lasagne, Chicken Tikka Masala, Cottage Pie, Macaroni Cheese, Chilli Con Carne & Rice, Spaghetti Bolognese, Sausage & Mash, Beef Stew & Dumpling, Sweet & Sour Chicken and Chicken Korma & Rice. All are 450g, with RSP of £2.99 each and are price-marked 2 for £5. For further information or to order, visit bestwaywholesale.co.uk.

shoppers love to try something new from Irn-Bru and in consumer research, three out of four energy drinkers in Scotland said they would buy the product, and 75% said they would choose an Irn-Bru energy drink over other energy drinks.” The launch will be supported by a nationwide marketing campaign that runs from the end of July. This will include targeted digital and social media activity complemented by bus and high street advertising. “We’re confident that demand for both of the new Irn-Bru Energy products will be high, as four out of five energy drinks bought currently are regular and the lowcalorie energy market is growing 16 times faster than the full sugar sector,” added Kemp. Barr Soft Drinks advised retailers to merchandise both variants of new Irn-Bru Energy in the ‘On the Go’ section of their chiller next to other energy products, to offer shopper choice and drive incremental sales.

belVita Seeds and Berries Mondelez Healthy biscuit brand belVita has unveiled new belVita Seeds and Berries, available now in two variants: Raspberry & Chia Seeds and Blueberry & Flax Seeds. Both come in cases of 10 six-pack boxes with three biscuits per pack. The 270g boxes have an RSP of £2.79. The launch is supported by a £3.5m marketing campaign. Mondelez is offering shelf strips, a free promotional poster and product dispenser to help boost sales.

Gazpacho Brindisa Spanish Foods Targeting health-conscious shoppers, Brindisa has launched an on-the-go version of the traditional Spanish chilled soup, gazpacho. With an RSP of £2.49 each, 330ml bottles are available in cases of 12 directly from the supplier (020 8772 1600 or email sales@brindisa. com) or from Clarks Speciality Foods. The launch will be supported by sampling activity in key locations across the UK.

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Product News & Media Watch Old El Paso Tortilla Bowls General Mills

Maryland Oaty Cookie Bars Burton’s Biscuit Company

This new bowl-shaped snack “will revolutionise the world of chips and dips” according to Old El Paso. It has an RSP of £1.65 and its launch will be supported by a sizeable marketing campaign. General Mills is keen to promote its versatility, saying almost three-quarters (73%) of consumers tested would serve Tortilla Bowls as a starter, while over half (53%) said they’d make a great canapé.

Summery Rice Salad Tilda

An addition to Burton’s ‘less than 100 calories’ biscuits and snacks range, Maryland Oaty Cookie Bars is available now in shelf-ready outers of 20 with an RSP of £1.39 per pack. Each pack contains six individually-wrapped chocolate chip cookie bars. These are high in fibre and wholegrain oats, with only 94 calories per bar. For more information call Burton’s Biscuits on 0330 6600 196 or visit burtonsbiscuits.com.

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Cadbury dusts off 80s icons Cadbury has launched a £6m campaign for its new Cadbury Darkmilk that celebrates all things ‘grown up’. A new TV ad features stars of yesteryear Jason Donovan and Kim Wilde. It is backed with a series of short films for social media which show young crew members from the ad shoot failing to recognise former Neighbours star Donovan.

Lucozade looks to spark sales Otis Pink Lemonade Muffin Aryzta Food Solutions

This latest addition to the Tilda portfolio combines light basmati grains, nutty red rice, lemon and herby mint, with chickpeas for added plant-based protein. Vegetarian- and vegan-friendly, the gluten-free product can be prepared in 30 seconds. Tilda LimitedEdition Summery Rice Salad is available until September with an RSP of £1.59 for a 250g pack.

MEDIAwatch

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The new limited-edition Otis Pink Lemonade Muffin is available now in thaw-and-serve cases of 24, with an RSP of £1.49. It comprises a lemon muffin filled with a smooth raspberry & lemon curd filling, topped with pink sugar crystals and decorated with an edible yellow straw; wrapped up in a pink and white gingham muffin case. For more information should phone 01698 844 884 or email retail. ordersGB@aryzta.com.

Lucozade Energy is aiming to ‘Spark Something’ this summer with a new £10m marketing campaign that includes TV, outdoor, social, digital and in-store activity. Using a vinyl record as an example, the campaign showcases how positive energy can be passed from person-to-person, inviting viewers to ‘Spark Something’.

Tango’s Tanguru takes to TV Britvic has rolled-out a brand-new marketing campaign to support its sugar-free Tango range. Titled ‘Sticky situation? Time to Tango’, the £1.2m campaign sees the introduction of Tanguru who, at the crack of a ring pull, bursts into awkward moments, freezing time to offer Tango drinkers advice on how they can ‘style out’ their situation.

Barratt back on box Sweet Crispy salad mix Florette

Letters & Numbers Dr. Oetker

Developed in response to consumer demand for a milder version of Florette’s Classic Crispy, the new mix is available in 135g and 85g bags, with RSPs of £1.50 and £1 respectively. The launch is backed by a £3m marketing campaign that runs until August, including TV, digital, social media and PR activity. For stock enquiries, call Florette on 01543 250 050 or email madewithsunshine@florette.com.

Home baking brand Dr. Oetker has launched a range of edible letters and numbers for budding Mary Berrys to personalise their bakes. The 40g packs are available now in outers of 10 with an RSP of £2.50. Each contains 78 white chocolateflavoured pieces including edible letters, numbers and characters in blue, yellow and pink. For more information, call 0113 823 1400 or visit oetker. co.uk.

Tangerine Confectionery has invested £800,000 in two nostalgic TV adverts to promote its core Barratt range. The main ad, airing on TV and video-on-demand, promotes Tangerine’s Softies range. A shorter second commercial includes other Barratt staples like Sherbet Fountains, Wham, Black Jack, Milk Teeth and Fizzy Dummies.

Freddo Treasures sails into view Mondelez has unveiled a new £6m marketing campaign to support the launch of Cadbury Dairy Milk Freddo Treasures. It includes a 40-second TV ad alongside out-of-home, digital and PR activity. The campaign also includes the addition of the Be treatwise logo across the brand’s advertising materials for the first time.

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

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Feature

Summer Drinks Special

MAKING SENSE OF SOFT DRINKS BRITVIC’S TOP TIPS Q Consider your location: are you near or en-route to a large, popular festival? If so, make sure you are well prepared for this. Multipacks are great a great way to cash in. Q Summer holidays: school holidays mean parents will be looking for options for them whilst out and about. A wide variety on offer for the kids to choose from will boost sales. Q Social media: it’s the perfect tool to let the community know what offers you are running in-store or what new products you may be stocking. Create a BBQ or picnic bundle deal and take a picture of it to post on Twitter to tempt shoppers in. Q Price-marked packs: customers love a good deal and PMPs make your customers feel as though they are getting value for money.

With a slew of new soft drinks product launches in recent months it looks like retailers will need infinitely expandable chillers to fit them all in – so it’s time to take a long, hard look at soft drinks to decide which products merit some space this summer.

t’s the eternal challenge in the soft drinks category: dozens of new products every year, all promising to be the next big thing, and only a limited amount of chiller space to fit them all into. The last six months or so have been particularly busy for the major manufacturers with all the big players unveiling interesting new ranges – so where should retailers look when committing their precious chilled space this summer? “Scotland’s £926m [IRI, Feb 2019] soft drinks category continues to be one of the most profitable categories for retailers during the summer months and is the second-highest bought category in Scottish convenience after newspapers [HIM 2017],” says Adrian Troy, Marketing Director at Barr Soft Drinks. Troy points out the obvious when he says that “summer is key to the entire soft drinks market and retailers need to ensure that their fixture is balanced to reflect seasonal category uplifts in order to generate maximum profits”. To put that into context, from June to August shoppers purchase 19% more soft drinks than any other time of the year, with water, fruit drinks and other flavoured carbonates seeing the most benefit [IRI 2018]. Undoubtedly the key trend that retailers need to be on top of this summer is growing shopper demand for mid, low and no-sugar soft drinks – although don’t forget that the overriding reasons why consumers choose a soft drink have remained constant: great taste, flavour choice and the right pack formats. So what’s on offer from some of the key manufacturers that can help you maximise footfall, sales and profits this summer?

COCA-COLA EUROPEAN PARTNERS (CCEP) Q Coca-Cola Energy is the first energy drink released under the Coca-Cola brand and is available with or without sugar, helping 48

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retailers to meet the different demands of an increasingly health-conscious audience. Both variants come in 250ml cans. Q CCEP has expanded its Fanta Zero range with the launch of Fanta Grape Zero. The product is made with natural flavours and is Soft Drinks Tax-exempt. It is available in a 330ml can and a 500ml PET bottle for instant consumption occasions, and a 4 x 330ml can multipack and a 2-ltr PET bottle for take home. Q Monster Ultra Blue is the latest addition to the Monster range. A sparkling, citrus and berry, low calorie energy drink, the new variant will help retailers to maximise on the demand for low calorie, flavoured energy drinks, which are in 59% value growth and the fastest growing segment in energy. Q The RTD coffee sector is predicted to more than double over the next 10 years which is why CCEP launched its first range of products under the Espresso Monster subbrand. Available in a premium ‘touch ink’ black 250ml can, the product is a blend of real brewed coffee and Monster energy that was designed to appeal to coffee lovers and energy drink fans alike. It is available in two variants: Espresso & Milk and Vanilla Espresso supported throughout 2019 by a £1m consumer advertising campaign.

BARR SOFT DRINKS Q Water is a key category, showing the biggest uplift at +41% [IRI 2018]. Barr’s advises retailers to offer trusted, quality brands such as Strathmore, but also consider www.slrmag.co.uk

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Feature

Summer Drinks Special

the growing number of consumers who is the fastest growing region in the UK are looking for healthier options but are for the brand, growing +21.4% since last not prepared to compromise on taste. year. Additionally, Red Bull Sugarfree is Rubicon Spring, a full-tasting product the leading low-calorie energy SKU in with 15 calories or less, is currently Scotland. growing at 49% in Scotland [IRI, Feb Q Tapping into the growing market for 2019]. flavoured energy, one of the latest Q Fruit drinks is the second biggest innovations for the brand is Red Bull growth area in the summer, growing Coconut Berry Edition, which launched at +24%. Shoppers are now widely in February. This introduction aims to travelled and growing consumer remove one of the key barriers of trial in demand for great-tasting exotic flavours energy drinks – taste. The launch offers provides opportunities. Rubicon is the the energy boost of Red Bull with the UK’s No.1 exotic juice drink brand, flavour of coconut and is available in both currently growing at 25% in Scotland Energy and Sugarfree variants (250ml), [IRI, Feb 2019]. priced respectively at £1.29 and £1.25 Q Flavoured carbonates account per can. for over one in five soft drinks Q Finally, Red Bull’s launch of products sold, highlighting its Organics range taps into the importance of Irnthe consumer demand for Bru’s role in-store. The organically certified food “Robinsons Refresh’d is perfectly placed to brand is currently and drink products. 100% help drive summer sales as Wimbledon hits benefitting from a new natural and organically TV screens. That means our on-pack promotion £6m campaign urging certified, Organics by shoppers to ‘Get some Red Bull, which includes for shoppers to win Wimbledon-themed prizes Irn in you’. Simply Cola, Ginger Ale, will drive brand awareness during a key seasonal Q Barr Soft Drinks is Tonic Water and Bitter peak for soft drinks. With Robinson’s Refresh’d also advising retailers Lemon, not only appeals available in 500ml bottles including price-marked about the importance to existing consumers of offering shoppers all but also to new shoppers packs, it is a great option for retailers to include three variants of Irn-Bru who are looking for an in meal deals or as part of a picnic offering – prominently to attract alternative within the soft making sure the bottles are chilled so that shoppers to the fixture: drink category. they can be enjoyed straight away,” sugar-free, Xtra and original. LUCOZADE RIBENA SUNTORY Q New Irn-Bru Energy is also set says Rachel Phillips, OOH Q The latest innovation from Ribena to make a stir when it formally Commercial Director at sees the brand move into the launches next month. Britvic. enhanced and flavoured water BRITVIC category for the first time ever. Q Britvic launched Robinsons Fruit New Ribena Frusion aims to tap Creations earlier this year in the into a growing consumer focus Tropical, Strawberry & Watermelon and convenience channel following the on ‘enjoyable wellness’ – an Orange sugar free. product’s success within the grocery opportunity worth £145m. The Q Robinsons is leveraging its Wimbledon sector. PMPs are exclusively available at brand has also recently unveiled links with a new on-pack promotion across £1.99 per 1-litre bottle. a £6.2m campaign to drive its Refresh’d range. Shoppers have the Q The company has also recently launched a awareness and tap into its chance to win Wimbledon new addition to its Pepsi Max range with a heritage as the master crafter experiences – from raspberry flavour joining the line-up. of blackcurrants. branded towels to VIP Q The infused sparkling water brand Aqua Q Lucozade Energy tickets to a tennis match Libra range has been boosted with the has launched a new during the tournament. addition of a new flavour and a new pack flavour: Watermelon Robinsons is also running design. Aqua Libra Cucumber, Mint & & Strawberry Cooler, a £3m campaign over the Lime appeals to consumers’ changing inspired by refreshing summer months, which tastes and habits. and summery iced includes TV actvity. Q Britvic is investing in its Tango brand fruit coolers, making it RED BULL with the introduction of three new sugar ideal for the summer Q With a 28.8% value share, free flavours, a packaging re-design and a season. This launch Red Bull is the number £2.2m marketing investment which sees will benefit from a new one sports and energy the brand back on TV for the first time £10m Lucozade Energy brand in Scotland, which in four years. The new flavours include marketing campaign.

SERVE UP SOME SPORTS-THEMED SUMMER SALES

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PROFIT FROM OUR ON-PACK PROMOTION SLR June 2019.indd 51

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Feature

Food-to-go

ARE YOU GOOD TO GO WITH FOODTO-GO? Food-to-go is a multi-billion-pound industry and is arguably the biggest trend in convenience retailing at the moment. Fortunately, grabbing a slice of the action is easier than ever.

ood-to-go, it will surprise no one to hear, is now a multibillion-pound business and it’s a category – or collection of categories, really – that no local retailer can afford to avoid, regardless of where there store happens to be or what size it is. Today’s consumers want to eat and drink on the go; stores that meet that need can generate new and profitable revenue streams. There are more and more companies servicing this market with fully fledged all-in-one solutions like Aryzta, Lomond Wholesale and Fife Creamery, but if you’re not quite ready to go all in, there are still plenty of options out there to help get you onto the food-to-go ladder with a minimum of outlay. There are plenty of options too which can help you set your store apart from the competition and give customers new reasons to come through your doors every day. Naresh Gajri of One Stop Lamlash Crescent in Glasgow has embraced this concept by becoming the first store in the UK to bring on board the Stacked 52

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brand, which offers hot and cold subs made for customers on the spot. “The feedback we’ve received since having Stacked has been really positive, enabling us to compete even further for the lunchtime trade,” says Naresh. “Sales are building in the few weeks we’ve had Stacked and, with lots of offices around us, as word gets out, we’ll have a real chance to increase our sales significantly.” Naresh worked closely with his One Stop Business Development Manager Jim Carroll to identify what would work in his store. Carroll comments: “Naresh wanted more for his store, so we investigated a range of options and Stacked came out on top. He’s worked really hard to get awareness of the new range out, providing samples for a nearby industrial estate and offering quick turnaround platters for local organisations. “In just a few weeks his basket spend has gone from £5 to £8 or £9 which is really impressive. For us this is a joint enterprise: retailers working with a retailer. Our franchisees have

the entrepreneurial knowledge on the ground and from us they get a huge level of commitment and support that they wouldn’t get on their own.” Interestingly, Naresh didn’t believe that food-to-go was necessarily ‘right’ for his store, a view held by many retailers. He didn’t sell many sandwiches and didn’t have full confidence in developing his hot and cold food-to-go offer. But all of that has now changed and he is seeing growth across the board. He explains: “In the past we used to sell very few sandwiches but we’ve seen a 200-300% sales increase since we introduced Meal Deals.” One company with a long tradition and a lot of experience in offering a full food-to-go solution to local retailers is Aryzta Food Solutions. “Offering customers a good selection of hot and cold food-to-go is a simple, cost-effective way for convenience retailers to attract new shoppers – and increase basket spend,” says Mary Byrne, Aryzta’s Trade Marketing Manager for Retail. Aryzta says its range of solutions help retailers “compete head-on with www.slrmag.co.uk

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Food-to-go high street foodservice outlets” while its partnership with Seattle’s Best Coffee means retailers also have access to a range of self-service machines that deliver great-tasting hot drinks and a great customer experience. For retailers looking for an all-inone food-to-go package, Aryzta offers a flexible set of options and ways into the category. “We have a variety of options for retailers, from purchasing ovens and equipment, right through to schemes whereby retailers who work with us and meet the appropriate level of sales can loan equipment from us through a partnership agreement,” says Byrne. “This means that in some cases the only cost that the retailer may have to consider is purchasing the stock and investing some staff time to bake off and set up the display.” As well as its core range, Aryzta’s offer also gives local retailers the opportunity to keep up with the latest trends with a minimum of fuss and effort. Last year it introduced a new range of vegan savouries, to tap into demand for meatfree and free-from alternatives. The range includes Vegan Sausage Rolls, Vegan Spicy Chickpea & Kale Pithivier, Vegan Spicy Chickpea Roll and a Vegan Saag Aloo Lattice Slice. For even more exotic tastes, the company also introduced two Spinach Pide products, perfect for eating on-the-go. A pide (pronounced pea-

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deh) is a Turkish pizza style flat bread, featuring different filling and flavour combinations. The two new products are a Spinach Pide with Gyros Chicken, and a Spinach Pide with Mozzarella, Basil & Tomato. The company also offers pizza in a handheld format to be enjoyed on the move – a Handheld Margherita Pizza, and Handheld Ham & Cheese Pizza. But it’s not all just about range when it comes to creating an effective, profitable hot food-to-go offer, as Byrne advises: “Shoppers buy with their eyes, so getting your display right is key to driving sales of food-to-go and in-store bakery products. “Research shows that shoppers are converted by displays, so there’s an opportunity here to grow basket size with the right layout.” Building basket spend by understanding shopping missions is a key focus for Unilever too, who are very active in the food-to-go market. Nick Widdowson, Unilever’s Merchandising and Creative Controller, says that getting it right can make the shopper’s

Feature

experience easier and boost the retailer’s profits at the same time: “It’s very important to identify which customer missions your store should be focusing on. Hungry shoppers looking for ‘food for now’ are very single minded. They will only visit the areas of the store that fulfil their need – sandwich, drink, crisps and so on. A coffee machine or hot snacks should be sited nearby and it’s also a good idea to site single fresh fruit nearby too.” For a more straightforward solution, a simple microwave can do the trick, particularly at lunchtime. Rustlers is the UK’s top-selling micro snack brand and lunchtime is the biggest occasion for Rustlers. “Convenience stores which offer Rustlers generate a higher basket spend, with the average basket spend of a ‘microwavable burger’ shopper being more than the average chilled foodto-go shopper [HIM CTP 2018],” says Monisha Singh, Shopper Marketing Manager at Kepak Consumer Foods, which owns the Rustlers brand. Kepak recommends that the Rustlers Quarter Pounder, the bestselling micro-snack in the UK [Nielsen, Jan 2019], should be the go-to product when building a reliable hot lunchtime solution. “Some 28 Rustlers Quarter Pounders are sold every minute, making it the No.1 choice for micro-snacking shoppers,” says Singh.

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UTC

SPEARS LOOKING AT YOU

As far as the auld boy is concerned, there are some things that just shouldn’t be together. Pineapple and pizza, for instance. Whisky and anything that isn’t more whisky. Ant and Dec. You get the idea. There’s a long list of such abominable pairings but UTC had to add another to it when he learned of a new product launch last month: asparagus gin. Yes, you read that right: asparagus gin. Now regular readers of this august journal will know that UTC is not a fan of gin. And the only vegetable he consumes on a regular basis is chips. So it doesn’t take an intellectual giant of the stature of, say, Donald Trump, to work out that Hussingtree Gin’s latest bit of asparagus-fuelled NPD will not be appearing in any product-endorsing posts on the auld boy’s Twitter account anytime soon. His pee smells funny enough as it is. Hats off however to Hussingtree’s resident PR guru who came up with the immortal claim to be “the first Worcestershire-based maker to use world-famous Vale of Evesham asparagus as a botanical”. Which, as firsts go, is not exactly up there with running a four-minute mile or scaling Mount Everest.

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YOU HAD ONE JOB...

UTC would like to put on record his thanks to Mintlaw retailer Sid Ali for bringing this little corker to his attention. The photo’s not the best but we had to run it. Anybody else ever been to a CoPo?

THE £90 OMELETTE It doesn’t take much to trigger a bout of colourful language and furious rightful indignation by the auld yin, particularly when it comes to things that can broadly be classed as ‘what’s the world coming to?’ Cue the £90 omelette. Apparently, the Boisdale of Bishopsgate restaurant in London has launched the most expensive omelette in the world made from – wait for it – gull’s eggs, lobster and truffles. Oddly, head chef Robert Kavara requires 48 hours’ notice from diners wishing to partake of his culinary creation, which obviously begs the question: why? Kavara explained, sort of: “Gull’s eggs are an age-old delicacy that for 3-4 weeks each year become one of the most soughtafter British eggs by chefs around the UK, sometimes fetching as much as £8 per egg. Only one egg is harvested per nest and each collector must have a DEFRA licence.” As far as UTC is concerned, that sounds all sorts of wrong. www.slrmag.co.uk

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