SLR March 2016 by 55 North

MARCH 2016 | ISSUE 155

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TIME TO STOP CRIME SGF launches plan to reduce retail crime as it reveals 92% of local retailers are victims of theft every year.

LIVING WAGE

Scottish retailers set to protect jobs

TREAT TIME

Sharing secrets of confectionery success

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March 2016

Contents

Contents ISSUE 153

NEWS p4

Retailers given hint at plain tobacco packs Imperial Tobacco has revealed what cigarette packets may look like next year if plain packaging is successfully implemented. p5 Healthy Living helping kids Latest Scottish Government figures have shown a reduction in childhood obesity with the Eat Better Feel Better campaign cited as one of the reasons. p6 End game for Independent Publisher of daily title reveals it will cease print publication on 28th March. p10 News Extra JW Filshill comes out on top at the SWA Achievers. p18 Product News Cadbury rolls out new lines, and Maltesers ice cream multipack launches. p20 Off-trade News Caledonian has craft in bottles, Tennent’s to display calorific content on-pack, and more from the drinks world.

INSIDE BUSINESS p22 Opinion Niall Hassard What now for alcohol legislation after latest Bill is rejected by MSPs? p24 Market Research Shopper Centric A look at consumer trends in grocery shopping. p28 Living Wage Exclusive in-depth analysis on the impact the new living wage will have on independent retailers. p30 SLR Rewards 2016 The judging panel for this year’s rewards is unveiled. p32 2 Minutes of Your Time Sean Russell, Head of Digital at Costcutter Supermarkets Group, discusses the role of social media in convenience retail. p34 EUTPD We catch up with JTI’s Jonathan Yajima to discuss the company’s new retailer engagement programme. p35 2015 Rewards We catch up with another reward winner from 2015 and discover what makes them worthy of a win. p36 Woodlands Local All the latest from Woodlands. p40 Hotlines The latest product launches and media campaigns. FEATURES p42 Confectionery Sales only seem to grow upwards in this category and impulse opportunity remains crucial to grabbing your share of this growth. p50 Biscuits With recent concerns over the UK’s high intake of sugar, retailers should stock up on lower calorie and healthier options to grow sales. p56 Milk A key sales driver in the convenience sector, milk is a big seller and cross-category merchandising and high visibility are key to selling this everyday essential well. p58 Beer The beer sector is constantly changing and retailers need to adapt to keep sales up. ON THE COVER p14 Retail Crime With 92% of retailers victims of shop theft, and the launch of SGF’s Standards Charter for Safer Business, it’s time retailers, staff and shoppers felt safe.

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News TOBACCO New tobacco packs set to be olive in colour, with plain white text revealing product information

PayPoint wins award PayPoint has won the McColl’s Services Supplier of the Year award, announced at the retailer’s annual conference recently. The prize was awarded for PayPoint’s contribution to driving growth for McColl’s and delivering 2.3m customers through click and collect services in store. Lewis Alcraft, Commercial Director at PayPoint, commented: “We’re incredibly pleased to win this award and to be recognised for the footfall and customer growth that PayPoint drives in McColl’s stores, particularly through our Collect+ parcel service. The award is recognition of our continued commitment to create innovative services that deliver growth for all of our retail partners, from independent stores to large multiples across the UK.”

Fresh to Store expands with Stocked acquisition Fresh to Store, the owner of Kerryfresh, has purchased the chilled van sales distribution business Stocked from the Indigo Food Group. Serving around 2,000 retailers predominantly in Wales and Southern England, the business will continue to trade as Stocked for the foreseeable future. The announcement comes almost a year after Haynes led a management buyout of the Kerryfresh business from previous owner Kerry Foods, in February 2015.

CornerDrop seeks cornershops As click-and-collect becomes increasingly popular with internet shoppers, a new online venture is giving c-stores a chance to cash in on the trend. There will be over one billion parcels shipped this year and around half of online retailers do not yet offer a click-and-collect option. CornerDrop addresses this issue by allowing consumers to pick up their parcels from a convenient local location, and avoid the hassle of missed

Possible plain pack design unveiled Imperial Tobacco has showcased a possible design for UK plain tobacco packets. At the SGF Scottish Crime Seminar last month, the company was part of an exhibition looking at ways to reduce retail crime – including the trade in illicit tobacco. The new pack design features a larger pictorial health warning, as is enforced under the forthcoming EUTPD 2 regulations, while elsewhere the pack is a dull olive green colour similar to plain packs in Australia. The only product information is the brand, variant and stick count in uniform white text. The plain packs are thought to be easier for illicit traders to replicate, despite Imperial Tobacco’s recent move to introduce Codentify onto its packs. Codentify has been implemented by Imperial, JTI, Philip Morris and BAT as a tool to help reduce the illicit trade. Codenitfy uses technology, including a 12 digit alpha-numeric code and a Dot Code, to make each pack traceable down to the time it came off the production line, where it was produced and its full route to market. HMRC is now conducting a formal evaluation of the use and effectiveness of this system. STORES New high-end Costcutter store opens in Kelty

Fife brothers notch up third store Brothers Asmat and Usman Saleem have opened their third site in Fife, launching a new premium-branded Costcutter in Kelty. The brothers, who opened their first Costcutter in Kelty more than 20 years ago, also own a third store in Lochgelly. The new store features 7.5 metres of chilled food, 2.5 metres of fresh produce, a bakery, food-to-go, an offlicence and Costa Coffee. Costcutter Kelty’s owner, Asmat Saleem said: “We’ve got to really know the local community over the past 20 years and saw creating The Saleem brothers’ store this new Costcutter in Kelty is their third. store as a fantastic opportunity to draw in a new customer base. Working with John and the team at Costcutter Supermarkets Group, we were able to tap into their vast experience and latest research to ensure we maximise sales from every square foot of the store.” John Roberts, Costcutter Business Development Manager, added: “The Saleem’s premium new store

will truly offer a first class service and offering, meeting customers’ needs. Offering a strong range of fresh and chilled produce is increasingly important to ensuring the store becomes the go-to retailer for convenience and quality and this is reflected in the dominance we’ve given to these categories and the local suppliers that the Saleem’s will be working with.” As part of the launch, the store will be taking part in Costcutter Supermarkets Group’s Local Pride campaign to support local initiatives, with funds raised in the store going to Kelty Hearts junior football team.

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News INSIGHT Scottish Government reveals reduction in childhood obesity

Healthy living initiative helping childhood obesity Statistics published by the Scottish Government have shown that childhood obesity has fallen in the last year. Ministers cited the SGF Healthy Living Programme’s Eat Better Feel Better initiative as among the reasons for the improvement in the health of the next generation. The proportion of Primary 1 children classed as healthy weight has increased from 76.4% in 2013/14 to 77.1% in 2014/15. The proportion of children at risk of being overweight has fallen from 12.5% to 12% over the same period, and the proportion at risk of obesity has dropped from 10.1% to 9.8%. The prevalence of healthy weight was slightly higher among girls than boys. In school year 2014/15, 77.8% of girls were classified as ‘healthy weight’ compared to 76.5% of boys. Maureen Watt, Minister for Public Health, said: “We are working with the food and drink industry through reformulation programmes and schemes like Supporting Healthy Choices. We are running campaigns like Eat Better Feel Better to encourage healthy eating, as well as pushing the UK Government to introduce a ban on alcohol and junk food advertising before the 9pm watershed.” Ross Kerr, Director of the SGF

Healthy Living Programme (HLP) told SLR he was greatly encouraged by the statistics. “I have no doubts that the success of the SGF Healthy Living Programme has contributed to this reduction, especially in areas of deprivation, which is where the Programme is focused.” There continues to be a link between deprivation and childhood obesity, with children living in the most deprived communities being more likely to be at risk of being overweight. Of the 1,610 retailers involved in the HLP, 65% are in the most deprived areas of Scotland. At Broadway Convenience Store in Edinburgh, retailers Dennis and Linda Williams have recently introduced a loyalty card for children where they receive a stamp for every

piece of fruit, with the fifth piece free. The scheme aims to encourage children to buy fruit every day. The store is also hosting a School Breakfast on 15th March to ensure all children are fed a nourishing meal. In areas of deprivation it is increasingly common for children to skip breakfast. Linda said: “Because I’m conscious we make money from selling people things that are bad for them, we have the responsibility to provide them with healthy choices. It’s not about preaching, it’s about putting the choice out there. If it’s not there, they don’t have the choice. We now sell the same amount of confectionery, but more fruit, so it’s encouraging to see initiatives like this are working.”

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have revealed that JTI is now the number one tobacco manufacturer in the UK. The company now has a 42.4% share of the £15bn tobacco market, and its brands Sterling and Amber Leaf occupy the top spots of the cigarette and roll-your-own categories respectively. Commenting on this achievement, JTI’s new UK Managing Director Daniel Sciamma said: “JTI’s investment in its brands, people and the trade has been backed up by great partnerships, and on reaching this significant landmark JTI would especially like to thank our trade partners for their support in making this happen.”

SRC seeks rates review The Scottish Government’s latest Retail Sales Index has revealed the value of retail sales final quarter of 2015 and for last year as a whole. David Lonsdale, Director of the Scottish Retail Consortium, said retailers were having to work “even harder” to maintain let alone grow sales at a time of profound structural, economic and regulatory change for the industry. Retailers will have to respond by investing in new technology and a more skilled workforce, Lonsdale added.

Food sales in Scotland hit record low

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The latest figures from Nielsen

contracted in Scotland in the

SGF President Abdul Majid and Ross Kerr get healthy with the First Minister.

INSIGHT

January marked the worst performance by retail food sales in Scotland since records began. According to the SRC KPMG Scottish Retail Sales Monitor, Total Food sales were 5.8% down on January 2015, when they had decreased 1.4%. The SRC confirmed this was the slowest year-onyear performance on record, but added that these results came after a strong showing last month. The numbers reinforce anecdotal evidence from retailers that 2016 has got off to a slow start. And with the National Living Wage set to be enforced in April, retailers will be hoping that sales pick up. SRC Director David Lonsdale said there “is no denying that these are dour retail sales figures”.

JTI leads the pack

He commented: “After the excess of the festive period, which saw solid retail sales growth in December, shoppers were clearly keeping a firm grip on purse strings and wallets in January even as footfall improved.” David McCorquodale, Head of Retail at KPMG, added: “Having enjoyed one of its best months for a couple of years in December, the grocers will be hoping figures for January were a consequence of the deluge rather than the post-Christmas diet. Even with the benefit of adjusting for the effect of online sales, the weather put the brakes on recent growth in non-food sales, which increased by only 0.2%.”

Grocery prices in major drop Grocery prices in January fell to their cheapest level in over a year according to mySupermarket.co.uk. Research carried out by the shopping and comparison website found that the cost of a basket of 35 popular products cost £85.80 in January. This is the cheapest recorded price in the 13 months since the mySupermarket Groceries Tracker launched. The data follows news that sales in the grocery sector fell 0.2% with multiples dropping market share.

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News NEWSTAND As one daily newspaper announces closure, another set to be launched

Heritage does the business Nisa’s own-label Heritage range

Indy closes as New Day launches

has been performing strongly since its relaunch. Trading figures for the third quarter of 2015/16 show a year-on-year sales increase of 11.24% in value and 7.73% in volume for the range. Figures for the festive season were even better, with sales growing 23.15% in value and 16.38% in volume versus the same 10 week period in 2014. Nisa offers its retailers over 800 products across a three-tiered approach to the Heritage range consisting of Heritage Pantry, Heritage and Heritage Gourmet.

Best-one heralds central pick ordering system Best-one, the full symbol offer from Bestway Wholesale, is delivering on its promise to help members maximise the chilled opportunity by releasing figures on the success of its Central Pick chilled distribution service. Sales of chilled to members has increased by over a third and availability has increased to 97% – the group’s best ever availability figure.

New boss at JTI JTI’s UK Division has a new Managing Director in the shape of Daniel Sciamma. Sciamma replaces Daniel Torras who leaves the UK to take up the role of Regional President Central Europe. Since 2010, Sciamma has been General Manager for the French market. He brings 18 years of experience to the role.

The Independent and Independent on Sunday will cease publication after the papers’ owner Evgeny Lebedev confirmed the titles would be going digital only from the end of March. In a separate move, spin-off title i has been sold to Johnstone Press for a sum believed to be around £25m. A week after this announcement, Trinity Mirror revealed plans to launch A New Day, a competitor title for i. The last issue of The Independent will hit newsstands on 26th, while the last issue of the Independent on Sunday will be published on 20th March. Owners said it was no longer commercially viable to continuing publishing a print edition. Lebedev said: “The newspaper industry is changing, and that change

is being driven by readers. They’re showing us that the future is digital.” The move is a blow to retailers, with the NFRN saying it was “disappointed and dismayed”. The New Day, meanwhile, will be available from Monday 29th February across the UK. It will be a paidfor daily paper published Monday to Friday. Trinity Mirror said The New Day would be an entirely new newspaper, not a sister title or light version of the Daily Mirror or Daily Record. The New Day, which will run to 40 pages every day, will be printed on high quality news print and be “visually striking”. It will be available for free from over 40,000 retailers on its first day, Monday 29th February, and then will trial at 25p for two weeks before retailing at 50p after that.

LEGISLATION Forthcoming legal changes could boost ecigs demand

INSIGHT

EUTPD legislation is an opportunity not a threat, says Blu

It’s all good for world food

Ahead of a major business seminar co-hosted by SLR, Blu and Imperial Tobacco on the future of the ecigs market and forthcoming EUTPD regulations, Blu has said the new European legislation will be good news for retailers and the fast growing UK electronic cigarette category. The regulation affects the marketing, production and sale of e-cigarettes and will impact the UK retail landscape within which they are sold. The legislation comes in three stages with the first two stages putting the onus on the suppliers to comply. Retailers themselves only have to be compliant in what they sell by May 2017 so there’s no need to panic just yet. Here are the key dates and what

Seven out of 10 shoppers who purchase world foods say they enjoy the experience, making it even more popular than buying wine, which 56% claim to enjoy shopping for, or fresh fruit (53%) and fresh vegetables (51%). According to the latest IGD ShopperVista data: Q Eight out of 10 (81%) of shoppers who buy world foods are interested in new products Q More than half (59%) would be interested in seeing an expanded choice of products available Q 60% would be prepared to pay more for higher-quality world food products.

happens at each stage: Q 20th May 2016 – The introduction of advertising and promotion restrictions Q 20th Nov 2016 – The production of all non-compliant stock must cease (affecting size, ingredients, consistency of dose and packaging with health warnings) Q 20th May 2017 – The sale of non-compliant stock is no longer allowed Marc Michelsen, SVP Communications and Public Affairs at Blu, explained: “We welcome most of the changes – and we think retailers should too. We believe the legislation will improve the quality of products available in the market, leading to increased consumer trust and confidence in buying e-cigs”.

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News ALCOHOL Campaign to combat underage drinking recognised

Q An increase in net revenue of 1.8% to £35m has been reported by PayPoint for the third quarter period ending 31st December. The company saw strong growth in retail services of 22.7% and mobile and online of 9.6%, but reported declines in top-ups of 13.7%, and bill and general of 2.4% due to lower energy consumption. Q Britvic has reported its sales revenue at £311.6m, up 4.8% from last year at the end of the 12 weeks ending 20 December. However, the company’s organic basis reported revenue decline of 2.4% to £290.1m. Q The UK’s fourth-largest grocer is investing £30m in initiatives including subsidised coffee, free Wi-Fi, and removing dated furniture in staff areas. Morrisons hopes the revamp will lead to a more motivated workforce to help drive the company’s revival. The

Proxy purchase campaign wins Police Scotland award A retailer-focused campaign to tackle the ongoing issue of proxy purchasing, which had already delivered significant reductions in crime and anti-social behaviour, has been officially recognised by Police Scotland as being the project that made the ‘greatest contribution to policing priorities’ in 2015. The ‘You’re Asking For It’ campaign came top amongst an initial 300 applications at the inaugural Police Excellence Awards held at Tulliallan Castle. The campaign was a partnership between the Scottish Government Alcohol Industry Forum, Police Scotland and the North Lanarkshire Community Safety Partnership and had an operational focus in the towns of Wishaw and Motherwell. Local retailers were heavily involved in promoting the campaign through in-store posters and ‘clean art’ street graffiti outside stores. The campaign hammered home the consequences of proxy purchase for the perpetrators, young people and communities. Dr John Lee, SGF Head of Public Affairs and Chair of the campaign group, said: “This campaign has been an excellent

example of genuine partnership working; a key element of its success has been the willingness of Police Scotland to divert resources to this issue and to develop positive working relationships with retailers.” Police Scotland lead for the campaign, Inspector Alistair Anderson of Motherwell and Wishaw Community Policing, added: “From the outset this initiative was designed to increase public awareness, reduce the risk of harm to children through exposure to alcohol and have a positive impact in the reduction of violence, disorder and antisocial behaviour.” Over the duration of the campaign (April to October 2015) Police Scotland recorded 84 separate licensing offences which included 49 adults being reported for purchasing alcohol on behalf of young people. In addition to this, violence across the locality dropped by 30%, antisocial behaviour was down by 13% and alcohol-related youth disorder was reduced by 21%. Furthermore, by limiting the amount of alcohol in the community, street drinking offences reported by the public fell by over 53%.

investment follows the news that the company will give its 90,000 staff a 20% pay rise to £8.20 an hour. Q Sales were down by 4.7% at Asda following its worst ever Christmas performance. The Walmart-owned supermarket said that its like-for-like sales dropped by 5.8% in the final quarter of the year after it was hit by rivals’ popular promotions on beer and wine and fresh produce. Q Growth in sales in the four months to January 1st have been reported by Booker as its newly-acquired Bugdens and Londis convenience store chains were successfully integrated into the business. The company said total sales rose by 11% year-on-year, while non-tobacco sales grew by 12%, and tobacco sales

SYMBOLS Premier stores set to Sell More Make More with new scheme

IN-STORE THEATRE

Premier initiative aims to drive retailer profits

Burns’ Night winner for Brownlies

A new initiative is being rolled out by Premier that will see the group work with its retailers to boost sales in stores. The ‘Sell More Make More’ initiative will encourage retailers to focus on streamlining their range and introducing a renewed focus on high-margin on-trend categories such as food to go and bean-to-cup coffee. A Sheffield-based retailer, Mandeep Singh, who was used as a pilot, saw his sales grow by 35% while his profits increased by an impressive 45%, since implementing

the initiative in his store. The chain, which is the largest in the UK, plans to roll it out nationwide. Martin Swadling, Director of Premier, commented: “The project is about helping stores to increase sales through simple changes. It’s about Premier helping each store to analyse what is best for their store and putting that into place.” Swadling added that Premier has more Regional Development Managers and merchandisers on the road to help retailers make the most of their stores, by honing their ranges and boosting profits.

Ahead of Burns’ Night, awardwinning Biggar store Best-one at Brownlies hosted a haggis and whisky tasting event. The event is the latest in a long line of in-store events hosted by owners Bruce and Donna Morgan, who believe that by getting customers involved in tasting events, it not only increases sales but brings the store’s role in the community to the front of customers’ minds.

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News Extra

SWA Achievers | JW Filshill success

NewsExtra TALKING SOCIAL MEDIA WITH COSTCUTTER’S HEAD OF DIGITAL – P32 WHOLESALE JW Filshill takes home five awards at SWA Acheivers.

Filshill big winner at SWA Convenience Matters with the SGF March 17th sees the second of SGF’s big events of 2016, following our Crime Seminar. We are holding our ‘Success in Scotland’ Summit at the Royal Bank of Scotland conference centre in Edinburgh. There is a superb line-up of speakers including the Minister for Business and the UnderSecretary of State for Scotland, Lord Andrew Dunlop. We also have leading figures from key Scottish companies. We want to look at the most important factors in creating a successful business in Scotland. But that’s not all. We want to start highlighting that independent convenience store retailers are entrepreneurs and successful business people in their own right. We know from our recently published Scottish Local Shop report that the independent convenience store sector in Scotland is highly entrepreneurial: 65% of retailers are the first person in their family to run a convenience store. When we think about entrepreneurs we probably tend to think about crowdfunded, start-up businesses managed by hipsters. The reality is that our members are entrepreneurs: they are innovative, they take risks and most importantly (and as we are beginning to uncover) they reinvest significant sums of money back into the local economy. We want to start getting this message across to politicians and indeed to wider society in Scotland. We also want to get a message across that our members are part of a wider and very important industry and that, through SGF, they are connected to each other and can help to influence the economic and political agenda. See you on the 17th.

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Glasgow-based wholesaler and operator of KeyStore symbol group takes home five gongs at the SWA Achievers, including Champion of Champions.

l-r Chris Miller, Managing Director, Craft Beer Clan; Ian McDonald, Sales and Marketing Director, JW Filshill; Nick Hannah, Director, JW Filshill; Keith Geddes, Finance Director, JW Filshill; Andy Stevens, Head of Sales, JTI; Simon Hannah, Managing Director, JW Filshill; Kate Salmon, Executive Director, Scottish Wholesale Association; and host Jean Johansson.

JW Filshill has been named the best wholesale business in the country at the 14th Scottish Wholesale Achievers, the awards initiative organised by the Scottish Wholesale Association to recognise professionalism and excellence across all sectors of the industry. Filshill supplies 168 KeyStores across Scotland and the north of England. Filshill’s domination on the night began when it lifted the Best Symbol Group for KeyStore, Best Delivered Operation (Retail) and Best Marketing Initiative for its Craft Beer Clan division. Fiona Ritchie, the company’s Impulse Buyer, won the Employee of the Year category. Describing Filshill as “a true Scottish independent wholesaler”, the judges said: “It does not have the support of a symbol group central office but it demonstrates excellent retailer selection criteria, retailer support and execution. Stores are supported with business development managers, merchandisers, planograms and a range of training packages. Its communication and pricing were described by some of its customers as firstclass.” Kate Salmon, Executive Director of the Scottish Wholesale Association, commented: “This is an outstanding result for Filshill, one of our sector’s leading independent, family-owned business – and a wholesaler that is bold and confident about the future, a wholesaler that is prepared to take risks, embrace new technologies and push boundaries in its quest to diversify and innovate.” www.slrmag.co.uk

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Comment

IT’S TIME TO PROTECT OUR SHOP WORKERS Like everyone in the room at the SGF Crime Seminar, I was horrified by the graphic footage of Glasgow retailer Muhammad Jawad Ali being subjected to a random attack in his store in January. Ali was left with multiple fractures, while the attacker left the shop empty-handed and at the time of writing was yet to be apprehended. Was the SGF right to show such brutal footage? Absolutely. The footage illustrated in horrific, grainy images the threat that all convenience store workers face every single day. It’s not right. In fact, it’s bloody infuriating that this goes on at all, and that despite CCTV footage no arrest has been made. SGF Chief Executive Pete Cheema has called on shop workers to be given the same protection as emergency service workers – something that has been rejected by Scottish and UK Governments in recent years. He’s right to put it back on the table though. On first glance it seems perhaps a bit extreme – shopkeepers don’t fight crime or put out fires, but the sad truth is that too many people think it’s okay to steal from their local shop, that it’s okay to verbally abuse a worker who asks for proof of ID, or refuses a sale, that it’s okay to spit on a shop worker because of the colour of their skin. Look at the facts: 92% of stores were subjected to some form of crime in 2014. Furthermore, 22% of shops experience theft on a daily business. And Governments think the present deterrent is sufficient? No, it’s not. I’d advice our politicians to leaf through the SGF Crime Report, see just what our stores have to put up with, and act to ensure they are doing everything in their power to ensure people like Muhammad Jawad Ali or Naser Hussain, who was shot in his store earlier this year, can feel safe in their place of work. Assistant Chief Constable Kate Thomson admitted at the Seminar that there was an under-reporting of crime in the sector, and this was partly down to a lack of confidence in the police. I’d urge every retailer to overcome any apprehension about reporting crime, whether due to lack of confidence in the police, fear of reprisal or intimidation, and make the call, every single time. On an entirely separate note, I feel compelled to mention that this is my last editor’s comment in SLR before I move into a new role outside the convenience industry. In the 10 years I’ve been writing about the sector I’ve found it to be welcoming and friendly and full of the innovation and entrepreneurial spirit we’ve long championed in SLR. No matter the challenge, the sector has proved to be resilient, transformative and has remained vital to both the grocery industry and hundreds of local communities across Scotland. I’ve no doubt whatsoever that this will continue for years to come, and I’ll enjoy watching it happen, albeit with a different view.

EDITORIAL Publishing Director Antony Begley 0141 222 5380 | abegley@55north.com Editor Kevin Scott 0141 222 5385 | kscott@55north.com Editoral Assistant Émer O’Toole 0141 222 5387 | eotoole@55north.com Web Editor Findlay Stein 0141 222 5389 | fstein@55north.com

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

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

CIRCULATION & SUBSCRIPTIONS Events & Operations Manager Cara Begley 0141 222 5381 | cbegley@55north.com Events & Operations Assistant Chloe Buchanan 0141 222 5386 | cbuchanan@55north.com Scottish Local Retailer is distributed free to qualifying readers. For a registration card, call 0141 222 5381. Other readers may obtain copies by annual subscription at £50 (UK), £62 (Europe airmail), £99 (Worldwide airmail). 55 North Ltd, Waterloo Chambers, 19 Waterloo Street, Glasgow, G2 6AY Tel: 0141 22 22 100 Fax: 0141 22 22 177 Website: www.55north.com Twitter: www.twitter.com/slrmag DISCLAIMER The publisher cannot accept responsibility for any unsolicited material lost or damaged in the post. All text and layout is the copyright of 55 North Ltd. Nothing in this magazine may be reproduced in whole or part without the written permission of the publisher. All copyrights are recognised and used specifically for the purpose of criticism and review. Although the magazine has endevoured to ensure all information is correct at time of print, prices and availability may change. This magazine is fully independent and not affiliated in any way with the companies mentioned herein. Scottish Local Retailer is produced monthly by 55 North Ltd.

KEVIN SCOTT, EDITOR

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Cover Story

Retail Crime

THE BEGINNING OF THE END OF

RETAIL CRIME? As the Scottish Grocers’ Federation reveals that 92% of retailers are the victims of shop theft, and launches a Standards Charter for Safer Business, SLR says enough is enough; it’s time for retailers, their staff and shoppers to feel safe in their place of business. BY KEVIN SCOTT Muhammad Jawad Ali was subjected to a vicious, random attack in January.

22%

of shops experience theft on a daily basis

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rom horrific attacks, such as that on Naser Hussain, who was shot in his Glasgow store last month, to vile, threatening behaviour and verbal assaults on staff, and visits from habitual shoplifters, retailers serving their local communities unfortunately have to live with the prospect of being the victims of crime on any given day. It sounds like an impossible task: putting an end to retail crime in the convenience sector. However, there is no reason why this shouldn’t be the end objective for the industry, and while it may well be impossible to stop shrinkage or the occasional customer becoming aggressive when they’ve been refused that alcohol sale, it is possible to ensure that all criminals – no matter the scale of the crime – are reported and prosecuted. In addition, providing shopworkers with the same rights as emergency workers will act as a greater deterrent for would-be criminals. In launching The Standards Charter for Safer Business, the SGF is beginning to set out a framework for just that. The Charter was launched at the Federation’s first ever Retail Crime Seminar – and was published in conjunction with The Scottish Crime Report and The Scottish Safer Business Guide. The Standards Charter for Safer Business www.slrmag.co.uk

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Retail Crime

is a document that every retailer should have at their disposal. Everyone should work their way through the 43 points in the guide and ask if they meet these standards. Taking in seven different aspects of business (see sidebar on p16), the charter aims to reduce crime, and reduce the effects of crime in-store. The Retail Crime Seminar was held at RBS’ Gogarburn HQ, with retailers from across the country gathering to look at the impact of crime on their of shops were victims of business. The morning featured crime in 2014 an exhibition of 18 companies who offered products and services that can help retailers reduce crime in their stores. The afternoon was divided into conferencestyle presentations and a series of four breakout sessions. The presentations focused on the work currently being carried out to reduce retail crime. The keynote was delivered by Police Scotland Assistant Chief Constable Kate Thomson, who said her job was to better understand the challenges the industry faces, and admitted that the SGF publications helped her to do that. “Shoplifting is not a victimless crime,” she said, admitting that under-reporting of crime is a concern. “I know there are reasons [for not reporting a crime in-store] and that one of them is a lack of confidence in the police service,” she said. “That is a concern to me and so we are looking at ways to engage with business communities and groups like SGF.” A recent internal evaluation showed that Police Scotland needed to understand more about communities, and be more inclusive. Thomson revealed that on 1st April a new public consultation process will launch looking at what’s important to retailers and their communities. She assured delegates that police officers would have access to best practice guidance on dealing with retail crime. “For that to be relevant the under-reporting needs to stop and I need your help to do that,” she said. Thomson said there were are a number of reasons why people don’t report crime. For one, it can take a long time to go through the legal process and for others, there are times where the police have charged someone, have them in the system but don’t communicate that back to the retailers. “We asked victims ‘were you kept reasonably updated with progress?’ and the percentage who say yes is low,” admitted Thomson. “We need to work on that, but the thing that concerns me most is the crimes that are never reported in the

92%

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first place and I want to establish why. Fear and intimidation, yes. For those that have lost confidence in the police service, I’d like to speak to them and work to improve that.” She added: “The impact on local retailers of crimes that are aggressive and physical is significant. It can have an impact on staff, customers, the business itself and the wider community. But the service you provide is welcomed by everyone.” The speech was well-received, and it can only be hoped that Thomson and Police Scotland live up their commitment to local retailers. One aspect of this was raised by SGF Chief Executive Pete Cheema, who again insisted that convenience store workers should have the same protection as emergency services workers. “The refusal of sale on age restricted products is the biggest trigger for threatening behaviour,” he said, showing CCTV footage of a horrific attack on Glasgow retailer Muhammad Jawad Ali – who was present in the room. Also presenting on the day was Mandy Haeburn Little, Director of the Scottish Business Reliance Centre. She spoke passionately about the role retailers play in communities, but warned of the threat that continues to exist. Her presentation focused on what we can do together as an industry to reduce the likelihood of some form of attack on your business.

CRIME STATS In addition to the important publication of the Standards Charter, the seminar saw the publication of the Scottish Crime Report, conducted by the SGF. It is this report that reveals the staggering scale of crime in Scotland’s convenience stores. In 2014, 92% of retailers had been victims of shop theft, while 22% of those surveyed by SGF reported that they experienced shop theft on a daily basis. That is over one in five stores that are

Cover Story

35% of stores experienced violence against staff in 2014

67%

of stores experienced staff abuse when sales refused

41%

of stores experienced staff abuse at least once a week when asking for proof of age

MAINSTREAM COVERAGE AS SGF SEMINAR DRAWS TV CAMERAS The SGF Crime Survey’s results were certainly newsworthy to the industry, but also to the wider media. In addition to receiving widespread newspaper coverage the day of the Seminar, both BBC and STV were present, leading to news items on the evening news across Scotland. With this coverage it can only be hoped that shoppers will become more aware of the threat that shop workers face, and that politicians will begin to understand why shop workers need the same legal protection as emergency service workers.

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Cover Story

Crime Survey

THE STANDARDS CHARTER FOR SAFER BUSINESS: Covering 43 best practice points, the newly published Charter gives retailers the opportunity to ensure they are doing everything they can to reduce the risk of crime and effects of crime. It is divided into seven handy sections, covering: Q Customer Service / Staff Q Management Q Staff Training Q In the Event of a Crime Occurring Q Cash Handling & Management Q Banking Q Time Delay Safes, Locked Safes or Delay Inserts

victims of crime every single day. On top of that, a further 30% experience shop theft once a week. That must stop. As well as the emotional and psychological damage of crime, there is of course a monetary cost – and the total cost of crime to participants in the crime survey was £1.3m. Theft accounted for £1.25m of this, with vandalism costing almost £50,000 and violence over £8,000. Violence, through either physical or verbal abuse is rare, but not rare enough. The survey reports that 1% of stores see violence against staff every single day, with 35% of stores seeing violence against staff at least once in 2014. No retailer or worker, not one, should have to contend with violence in their workplace, and although proposals to give shopworkers the same protection as emergency service workers have been rejected by Holyrood and Westminter in recent years, the industry should not let this decision lie. The fact convenience stores sell age-restricted products, and are staffed (particularly at night) by just one or two members of staff, makes these workers vulnerable. This is illustrated in the crime survey – 9% of stores reported staff were abused on a daily basis when refusing a sale, rising to 18% when asking for proof of age. Think about that again. Almost 20% of stores are victim to abuse on a daily basis, simply for asking customers to supply proof of age. A further 23% are abused on a weekly basis for this, another 28% monthly. Sadly, employee theft is another major issue for retailers. The survey found that 49% surveyed reported incidents of staff theft in 2014. HMRC has also reported that the retail and wholesale sectors suffer disproportionately from staff theft. The Scottish Crime Report makes for grim reading, but that doesn’t mean anyone should stick their heads in the sand. Action must be taken, retailers must come together to work with SGF and publications like SLR, they must lobby their elected representatives at every level. Report every crime, every time. As an industry, we can make difference. 16

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OVER HALF of all stores experience shop theft every week

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Crime Survey

Cover Story

ÂŁ1.3M

Cost of crime to participants in SGF Scottish Crime Survey

The exhibition at the Seminar proved very useful for retailers.

Assistant Chief Constable Kate Thomson spoke candidly about Police Scotlandâ&#x20AC;&#x2122;s relationship with the industry.

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A series of breakout sessions helped inform retailers on a number of relevant issues.

MARCH 2016 | SLR

26/02/2016 16:11:47

News

Products

ProductNews BAKED SNACKS HELPING DRIVE BISCUIT SALES – P50 BISCUITS Bitesize launch from McVities set to drive £17m in sales in year one.

McVities set for a nibble

SOFT DRINKS

AG Barr comes out swinging with Rockstar launch AG Barr hopes to box clever with its latest Rockstar launch, by adding Punched Guava to the Pure Zero range. “The energy category is one of the biggest categories within soft drinks, making it hugely important for retailers,” explained Adrian Troy, Head of Marketing for AG Barr. “Within this, big can formats are driving this growth at +10% YOY, but it is flavoured energy which is driving the increase at +13% YOY. Two out of the top five fastest-selling big can SKU’s are Rockstar flavours.” Currently 49% of all carbonated soft drinks sold are low or no-calorie variants and there is growing shopper demand for these drinks within the energy sector. The low calorie energy market is currently worth £47m. By introducing Punched Guava – the best-selling flavour in the Rockstar line up – to the Pure Zero range, AG Barr aims to give retailers an added opportunity to profit from this fast-growing sector. Troy had this advice for retailers: “Use the impactful POS available to create in store visibility around Rockstar Pure Zero Punched Guava to maximise this exciting sales opportunity.”

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United Biscuits (UB) has revealed its biggest NPD for 2016 with the launch of McVitie’s Digestives Nibbles. In what is described as a first of its kind for the UK biscuit category, the product offers the taste of McVitie’s Digestive biscuits in a chocolate bitesize format. Available in a re-sealable pouch in four variants – Milk Chocolate, Dark Chocolate, Double Chocolate and Caramel – the range will be available in a 120g pouch (rrp £1.89), with a PMP due to launch later this year. The new range will be supported by more than £4m in media investment, including TV advertising, digital and social media. Significant investment has also been made across shopper channels through POS displays and shippers in grocery, as well as clip strips and gondola end toppers in convenience.

The launch follows a busy period for UB after the relaunch of its McVitie’s masterbrand in 2014, and represents the latest step by the manufacturer to unlock new consumption occasions for the biscuit category. The launch is expected to achieve over £17m RSV in the first 12 months. Sarah Heynen, Marketing Director of Sweet Biscuits at United Biscuits, commented: “The launch of McVitie’s Digestives Nibbles is significant for UB and the category. In testing, consumers responded incredibly positively to the range, particularly the balanced combination of chocolate and biscuit, and the new ‘nibbly nibble’ pieces. Alongside an equally positive response from customers, we are confident that this is a long awaited true innovation for the category.”

CONFECTIONERY

New Milk Tray Man revealed Following a nationwide search that saw over 20,000 applications, Cadbury revealed Patrick McBride, a 39 year old firefighter from Liverpool, as the new Milk Tray Man. Displaying bravery and courage every day in his job as a firefighter, Patrick is also a caring family man who impressed the judges with his down to earth yet heroic nature – the ideal qualities for the modern day Milk Tray Man, apparently.

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News

Off-TradeNews BOOSTING BEER SALES IS A BREEZE – P58

Today’s gets crafty with beer guide Following the recent publication of its Wine Category Guide, Today’s Group has launched a Craft Beer Guide for independent retailers, developed in conjunction with Today’s Plan for Profit and leading craft breweries. A version geared towards wholesalers is also available. This brochure is designed to introduce retailers to the growing craft beer category and offers advice on turning a store into a key destination for craft beer. Tasting notes and a core range shopping list are also included. A spokesperson for Today’s said: “This strategy-based guide

BEER Caley gets crafty with new brews

Caledonian has craft in bottles Caledonian is extending its range of bottled beers to include its two newest modern craft beers: American-inspired pale ale, Coast to Coast and craft lager, Three Hop. Coast to Coast and Three Hop are following in the footsteps of the brewery’s longstanding flagship ale, Deuchars IPA. They join Edinburgh Castle and Flying Scotsman to complete Caley’s core range, with both new bottles now available to customers. Coast to Coast is the first beer to be developed in the newlylaunched pilot plant, named Wee George after Caley’s founder, George Lorimer. It is a 4.6% abv

polished bronze ale, brewed with full leaf fresh-packed American hops imported from Yakima Valley on the West Coast, married with British East Coast maritime malt. Its recipe leads to a strong hop character, including two UKfirst Yakima Valley hops, which is combined with notes of lime, passion fruit and kiwi fruit. Launched in 2014, Three Hop is Caledonian’s first craft lager. Brewed with three of Europe’s finest hops to craft a rich 4.5% abv, the lager carries spicy herbal aromas, a hint of honey and a slight minty note. “The bottle format offers our

customers the opportunity to experiment with their range to give consumers a great choice of quality beers,” said Managing Director of Caledonian Brewery, Andy Maddock.

is designed to equip retailers with the knowledge to be successful and to confidently sell this new and exciting category.” Both the retailer guide and wholesaler guide can be downloaded from the Today’s website.

Kopparberg puts the squeeze on lager Swedish cider manufacturer Kopparberg is taking its fruit expertise into the beer category with the launch of new Lemon & Lime-flavoured

BEER

Jazzy new ad from Guinness Guinness has launched the next chapter in its ‘Made of More’ campaign with a new ad entitled ‘Intolerant Champion’, which received its first UK airing early last month. The black and white ad tells the story of talent scout John Hammond who fought to overcome the prevailing racial prejudices in 1930s America to bring black and white musicians together. An ardent admirer of music of black origin, Hammond would often be the only white man in the room as he scoured the jazz clubs and bars of Harlem for undiscovered talent. Acts he uncovered included Billie Holliday, Count Basie and Aretha Franklin.

Kopparberg Fruit Lager. Jodie Alliss, Senior Marketing Manager at Kopparberg, said: “Our research demonstrated that fruit is still a hit with our millennial drinkers, as our fruit ciders remain number one in the category.” Kopparberg Fruit Lager (abv 5%) will hit the shelves from mid-April in packs of four 330ml bottles.

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BEER Non-alcohol range extended by Beck’s

Beck’s reveals Blue Lemon AB InBev has launched Beck’s Blue Lemon – an alcohol-free beer brewed to give consumers the same taste of Beck’s Blue, but with an added twist of lemon. The launch follows the announcement of AB InBev’s Global Smart Drinking Goals, with the brewer committing to ensure that at least 20% of its global beer volumes are low-to-no alcohol by 2020. In the off-trade, low-to-no alcohol beer sales are growing at 11.1%. Becks Blue is the market leader, contributing to 65% of the sector and growing ahead of the category at 15.4% – delivering 86.5% of the total category’s growth.

RTDS

Things are looking rosy for WKD

WKD is stepping up its NPD programme and venturing into new territory with WKD Blush – a 4% ABV, blush-style liquid which brand owner SHS Drinks hopes will attract a new wave of ready-to-drink consumers to the category. It is the first WKD RTD variant to be given a specific flavour descriptor – a roundel with the ‘passionfruit’ declaration is prominently displayed on the necks of the WKD Blush 275ml and 700ml bottles. And in another new move for the brand, the packaging is more feminine and sophisticated giving WKD Blush a particular appeal amongst females, whilst not being rejected by male WKD drinkers during consumer research. WKD Blush is being made available in pricemarked formats – 275ml, £4.99 PMP four-packs and 700ml, £2.99 PMP multi-serve bottles.

www.slrmag.co.uk

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Off-Trade

News

BEER Leading Scottish brewer joins AB InBev and Diageo is displaying nutritional information on pack

Tennent’s to display calorific content on-pack Tennent’s is the latest alcoholic drinks manufacturer to announce plans to display nutritional information on its packaging. From March this year, bottles and cans of Tennent’s Lager will feature the calorific content printed on-pack. The move follows AB InBev’s announcement of a similar scheme in January, and Diageo’s decision to publish nutritional information. Tennent’s Lager contains 30 kcal/100ml, which the brewer says is the lowest of the main lager brands. Soft drinks like orange juice and cola contain 44kcal & 43kcal per 100ml respectively. Alastair Campbell, Managing

Director of Tennent Caledonian explained: “There is increasing interest amongst consumers around the nutritional content of the food and drink that they consume. We feel that it is a natural next step to include calorie information on our cans and bottles to sit alongside the responsible drinking messaging and number of alcohol units already displayed. “Calorie content is an easily understandable way to help people make better choices about what and how much they consume.” Scottish Minister of Public Health Maureen Watt added: “The Scottish Government

Brewdog now top dog BrewDog has released very strong draft financial results for 2015, reporting an annual turnover of £45m, a 52% increase on 2014. UK sales are up by 130%, and flagship beer Punk IPA – which grew at 127.4% in on-trade – is now the best-selling craft beer in UK supermarkets. BrewDog itself is now the number one craft

supports any measures which will deliver improved alcohol product labelling. Many people are unaware of the calorie content of alcoholic drinks so this is an important step forward in informing consumers and as such, we are happy to support Tennent’s commitment today.” Tennent’s is part of C&C Group, which will be rolling out nutritional information across its portfolio of drinks brands.

brewery in the UK, shipping the equivalent to 41 million bottles of craft beer in 2015. A fourth round of its crowdfunding scheme Equity For Punks, which will close in April 2016, has so far raised £20m since 2010 – a record for crowdfunding. Investment is fuelling the independent craft brewery’s US expansion, funding a new state-of-the-art, 100,000 square foot brewery in Columbus, Ohio which will be one of the most technologically

CIDER Reseach leads to new flavour launch from Bulmers

Bulmers finds its blueberry thrill

BEER

advanced craft breweries in the

West’s new brew says ‘Nix’ to alcohol

world when it opens in August.

Bulmers is launching a Wild Blueberry & Lime variant, supported by a £2m marketing campaign. The launch follows research indicating young adults’ desire for flavour experimentation in Cider is showing no signs of slowing down. Bulmers Wild Blueberry & Lime SKU comes in a 568ml bottle at 4% abv with a label that will “deliver huge stand out on shelf”. Emma Sherwood-Smith, Cider Director at Heineken, commented: “Bulmers Wild Blueberry & Lime cider addresses both consumer demand for blueberries as well as the trend for experimenting with different flavoured ciders. “Heineken’s expertise with NPD in cider is unrivalled and, most importantly, it works. Last year’s launch, Bulmers Zesty Blood Orange, was the biggest cider NPD of 2015. It brought one million people into the Bulmers brand, 50% of which were new to the cider category.” Bulmers expects drinkers to “pounce” on its latest offering, and advises retailers to stock up accordingly. Wild Blueberry & Lime will join the existing Bulmers range which includes Zesty Bloody Orange, Crushed Red Berries & Lime, Original and Pear variants. It replaces Bulmers Cider Bold Black Cherry.

West has launched Nix, a new brand of alcohol-free beer. Bavarian for ‘nothing’, Nix rolls out UKwide, with the Glasgow-based independent brewery pitching it to several supermarket chains. Offering two different beers – Nix lager 0.0% abv and Nix wheat 0.0% abv – the new brand aims to shake-up the growing alcohol-free beer market. West founder Petra Wetzel said: “The major problem with alcohol-free beer to date has been that it usually tastes like wet cardboard. Nix tastes much much better than that!”

Malibu has unveiled its latest

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Malibu mixes up ready-to-drink range pre-mixed can: a mix of strawberry and kiwi, with Malibu Coconut Rum. Rolling out to stores this month, Malibu Strawberry Kiwi replaces the Mango variant, and joins the existing line-up featuring Malibu Coconut Rum with a choice of Pineapple, Cola, and Diet Cola. Complementing the rest of the range, it will be available as an individual ready-todrink 250ml can (rrp £1.98). Malibu is also bringing Malibu Pineapple to the UK – a blend of tropical pineapple with classic coconut rum.

MARCH 2016 | SLR

26/02/2016 16:03:54

Inside Business

Opinion | Alcohol Legislation

WHAT NEXT FOR ALCOHOL LICENSING?

After Holyrood’s Health and Sport Committee published a report confirming that it would not be supporting a Labour MSP’s proposed Alcohol Bill, there is now some uncertainty about how the Government will progress from here, given it opposed the Bill. BY NIALL HASSARD, LICENSING LEGAL DIRECTOR, TLT LLP

n 13th January 2016 the Health and Sport Committee published its report confirming that it does not support the Alcohol (Licensing, Public Health and Criminal Justice) (Scotland) Bill. The Alcohol Bill was a Member’s Bill, introduced by Dr. Richard Simpson, MSP, on 1st April 2015. It aimed to introduce further legal restrictions to deal with the abuse of alcohol, proposing to amend, yet again, the Licensing (Scotland) Act 2005. At first blush one might be surprised that the Alcohol Bill, which seeks to add restrictions around the sale and advertising of alcohol, has not found favour, given the Scottish Government’s apparently insatiable appetite for alcohol legislation. The fact it was a Member’s Bill is perhaps significant in explaining why it has failed to progress. By way of explanation a Member’s Bill is put forward by an individual MSP, rather than the Government or its ministers. Dr. Simpson is a Labour MSP so the Alcohol Bill needed crossparty support from the SNP. In November 2015 the Scottish Government stated that it would not be supporting the Bill. It is this lack of Governmental support that made success of the Alcohol Bill unlikely. The November announcement led to criticism of the Government from some quarters for rejecting the Alcohol Bill, rather than looking to propose amendments and introduce some parts and not others. Now Holyrood’s Health and Sport Committee, which is the lead cross-party Committee examining the Alcohol Bill (albeit it has an SNP majority), has also rejected the Alcohol Bill. In its report it stated, “The majority of 22

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the Committee believe that the Scottish Government’s forthcoming updated alcohol strategy offers a more effective route to consider changes to alcohol policy” and “a minority of the members believe that the general principles of the Bill should be supported.” Notwithstanding the rejection, certain parts of the Alcohol Bill are likely to be of interest to the Government. But it remains to be seen whether some of Dr. Simpson’s proposals will be cherry-picked and repackaged as part of the Government’s future plans. A number of Dr Simpson’s proposals that could have huge repercussions in the convenience sector spilt the Health and Sport Committee. They included: Q banning muti-pack multi-buys Q banning high caffeine alcohol drinks Q bottle marking Q enhanced community engagement Q banning alcohol advertising near schools etc Q drink banning orders; alcohol awareness as a punishment for offenders Q alcohol education statements.

certain steps reappear in future Government legislation. But what is abundantly clear is that there is an appetite to continue to legislate on alcohol and pass more restrictive laws. With yet more regulation seemingly inevitable, licensing practitioners and operators, already swamped by the plethora of alcohol legislation, will unanimously back at least one of the Committee’s calls and urge the Government to consider consolidating the law into one licensing act.

“What is abundantly clear is that there is an appetite to continue to legislate on alcohol and pass more restrictive laws.”

Some members were in favour of the proposals, whilst others were not convinced about their practical effect. Interestingly, a proposal to prohibit Licensing Boards, or the Government, from implementing a blanket age restriction for off-sales (e.g. over 21s) by way of condition was unanimously rejected. Is this perhaps indicative that MSPs may consider moves to set a higher age restriction for off-sales? One would anticipate that this is a step which will deeply trouble the off-trade. The fact the Committee backed some proposals but not others suggests we could see www.slrmag.co.uk

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Inside Business

Market Research | Shopper Stock Take

TAKING STOCK OF SHOPPER HABITS

Shoppercentric has launched a new ‘Shopper Stock Take’ research index, set to become an annual benchmark, providing comparisons for future reviews. The report reveals new consumer trends, including shopping little and often, the increasing demand for fresh food and online shopping. BY ÉMER O’TOOLE

he convenience sector is changing and retailers need to constantly adapt to meet the needs of consumers. Now, new research by Shoppercentric has revealed key areas for retailers to focus on: spending habits, channel hopping and online media. Shoppers tend to be more careful in their spending these days and the shopping little and often trend is increasing, which is welcome news for the convenience sector. In fact, one in ten shoppers rarely do a main shop and 71% said this is because it is cheaper than shopping elsewhere. Shoppers visited an average of four stores or websites in the last fortnight and one in three vary where they shop to get different products in different places, demonstrating that savvy shopping is not all about price. With these changing shopping habits, the challenge for retailers is to make sure their shop is one of the customers’ preferred options. For c-stores there’s further good news: economy of time also drives one in four shoppers and planning what to buy before shopping is a preference for 71% of shoppers. Therefore, retailers should make sure products are easy to find with clear signs in each section of the shop. Sales of fresh food are growing with promise in stores and following the Food Standards Scotland recommendations to the Government on how to improve Scotland’s diet last year there is set to be even more pressure to increase the number of healthier lines in-store. Of the shoppers surveyed, 73% said they prefer to buy ingredients to make meals from scratch, as opposed to ready meals. This changes shopping habits as well since 80% of shoppers say they now buy fresh food as and when they need it so that it is really fresh. Although retailers may be reluctant to improve their fresh offering for varying reasons, it’s getting to the point where not having a good offer is becoming detrimental to stores. 24

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MKT Research.indd 24

An increasing number of shoppers are hectic lifestyles (23%), and some of this is taking ethics into account – 55% of shoppers preference – 28% shop in specific shops for believe that their more considered approach to specific items. The reasons people shop in a spending on groceries and household products range of stores varies – 71% of shoppers go has made them more environmentally to discounters because they’re considered friendly. Additionally, 58% say they the cheapest, but 47% also said it was prefer the money they spend to because they know they’re getting Shoppers benefit British businesses. good value without having to visited an This has led to a drive away work out promotions. Their average of four from supermarkets and fresh and unfamiliar brands chains and an increased (‘unusual foods’ according stores or websites desire to visit independent to the company) are also in the last fortnight stores. pulling in shoppers (19% and one in three However, price remains and 23% respectively). vary where they ahead of ethical or Also, 49% of Big Four shop. environmental considerations grocery shoppers use a for 57% of shoppers. Promotions superstore because they can get and price cuts are popular with everything under one roof – compared consumers but retailers should be careful to just 12% of discounter shoppers. about what deals they offer. Price matching Knowledgeable, expert and friendly staff appeals to 84% of shoppers but promotions stand out as key differentiators for traditional that rely on mobile technology to be specialists and they have a particularly niche activated are unpopular with UK consumers, set of drivers revolving around quality (52%), demonstrating that the appeal of interaction freshness (41%), and their shoppers’ desire to isn’t quite there yet. Over half of shoppers support the local economy (57%). (54% overall, and 60% of men) prefer everyday low pricing (EDLP) rather than the ‘hi-lo’ ONLINE GROWTH strategy often employed by grocery retailers. The growth in online shopping and social Misleading promotions scored an average of media is a key trend to watch in the eight out of a possible ten ‘annoyance’ points convenience sector. Mobile is a key catalyst amongst grocery shoppers and ‘out of stock’ to the growth of online shopping with one promotions scored seven ‘annoyance’ points in four UK shoppers using a smartphone to out of ten. Shoppers are prepared to seek out shop. It is worth noting that 20% of shoppers bargains as well, with 51% prepared to split now use price comparison sites and 30% their shopping across several stores in order use deal or voucher websites while 41% still collect and use vouchers from magazines or to access the best promotions. Each shopping channel obviously has its flyers that come through the door. While it is clear that the discounters and benefits to each individual consumer and with these choices now at their doorstep, they digital opportunities are driving some of are picking and choosing value and when the changes in the UK retail landscape, the they shop to suit their needs and wants on new index reveals that shoppers themselves each occasion. On average, UK shoppers are impacting the market. Shoppers are less now visit four different retailers a month frustrated with online channels than stores across an average of two channels for their but what does seriously annoy shoppers via grocery shopping. Some of this is down to this channel are wrong items delivered on www.slrmag.co.uk

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Shopper Stock Take | Market Research

Inside Business

online purchase (39%) and paying for delivery (36%). Misleading or wrong promotional details were also a cause of frustration (35%). Instore, shoppers were most annoyed with closed checkouts when a store is busy (54%), rude staff (54%) and long queues (49%). This year, keeping on top of shopper needs as they evolve will become imperative, as the market itself becomes more fragmented. Danielle Pinnington, Managing Director at Shoppercentric says this is the start of a “postrecessionary trend” where shoppers “quell their impulsivity and take an even more considered approach to their spending.” “Their expectations of grocery retailers include great quality and service, not just low pricing – by truly understanding shoppers’ shifting dynamics a smart retailer or brand can start different conversations that potentially standout from the competitive crowd, and resonate with a more thoughtful shopper mind-set. It’s time to listen.”

80%

of shoppers say they now buy fresh food as and when they need it

58% say they prefer the money they spend to benefit British businesses

54% prefer everyday low pricing over hi-lo strategies

51%

are prepared to split their shopping across several stores to access the best promotions

20%

of shoppers now use price comparison sites

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Inside Business

Finance| National Living Wage

JOBS TO BE PROTECTED AFTER NATIONAL LIVING WAGE INTRODUCTION

SLR research has revealed that Scotland’s local retailers are planning to protect jobs when the National Living Wage is introduced in April. However a third of retailers admitted they would be forced to cut staff hours. WILL YOU BE CUTTING JOBS WHEN THE LIVING WAGE IS INTRODUCED?

11% NOT REPLACING LEAVERS

55% NO

33% TOO EARLY TO KNOW

“I’m not against increasing an employee’s wage per hour but where does it stop? I have keyholders in my store who will now be paid the same rate as someone behind the till.”

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esearch carried out by SLR has revealed that local retailers in the country are planning to work to preserve every job in the sector, despite the impact of the National Living Wage. With the minimum level of pay for an over 25 rising to £7.20 in April, there were fears of job cuts, however our research reveals 55% of retailers are certain there will be no cuts, while a third are closely monitoring the situation. Not a single retailer questioned said they would definitely be cutting jobs. It’s not all good news for staff however with a third of stores planning on cutting staff hours in a bid to offset the increased costs. However, 45% of retailers said there would be no change in their rotas. One in five retailers said they were hoping to give staff a pay rise beyond their legal requirements, with the majority saying the increase in minimum wage would be all they could afford to give staff.

“Lots of independent retailers have already cut back on expenses so it is hard to guess where they will get the extra money to pay their staff a higher wage.”

“It is getting harder to compete with shops like Aldi and Lidl that offer competing prices. This means that convenience stores lose business and it is a vicious cycle.”

“I believe we need to consider smarter solutions as opposed to just cutting jobs and staff hours. For example, making use of technology like self-scan tills that don’t require staff.”

www.slrmag.co.uk

26/02/2016 12:16:21

National Living Wage | Finance

“The living wage is a good idea, everyone should get a fair wage, so I can see why it is happening. However, I think small and independent retailers will struggle.”

“We had a full time member of staff leave recently so we’ve decided not to recruit replacement staff. This should keep our finances relatively similar.”

WILL YOU BE CUTTING STAFF HOURS WHEN THE LIVING WAGE IS INTRODUCED?

“It is obviously hard to tell the true effect it will have until it has been implemented for a few months but we don’t plan to cut any jobs.”

“The living wage is an excellent initiative and staff should get a good wage for their work but it will definitely take its toll on local retailers over time.”

22% TOO EARLY TO KNOW

33%

Inside Business

45% NO

WILL YOU BE GIVING STAFF A PAY RISE BEYOND YOUR LEGAL REQUIREMENTS?

YES

20% YES

“I think retailers should pay it, however, the retail side of things is quiet at the moment so it will be difficult.” www.slrmag.co.uk

Living Wage.indd 29

“Our staff get an alright wage anyway so I don’t think the Living Wage will affect us that much.”

66% NO

14% UNSURE

MARCH 2016 | SLR

26/02/2016 12:16:23

SLR REWARDS 2ND JUNE GRAND CENTRAL, GLASGOW

IT’S TIME FOR JUDGING! As the deadline for entering this year’s SLR Rewards passes, our attention turns to the crucial first phase of judging, and we are pleased to announce this year’s SLR Rewards judging panel. The first phase of judging for the SLR Rewards, also known as the Paper Judging sessions, is where this year’s panel reads through every single entry, comparing and contrasting, before whittling entries down to just three shortlisted stores in each category. Each year, we hand pick a select group of convenience retailing experts and insiders to join the team here at SLR to deliberate and decide which stores will go forward to the second phase of judging. This year is no exception, with a judging panel recruited from across the UK, combining many different aspects of the convenience retail industry.

PETER STEEL

JOHN LEE Dr. John Lee has over 10 years of experience in public affairs and policy in both the voluntary and private sectors. A key area of his work is engaging with the Scottish Government, the Scottish Parliament and with other key policy and decision makers. He also leads on SGF’s external communications and media relations work. He represents the convenience store sector on the Scottish Anti Illicit Trade Group, the Scottish Government Alcohol Industry Forum and the Scottish government Ministerial Working Group on Tobacco and AgeRestricted Products.

KAREN PEATTIE Karen Peattie is a highly respected freelance journalist, editor and PR consultant with 35 years’ experience spanning weekly and national newspapers, trade publications, consumer magazines and online media. Specialising predominately in the retail, wholesale, and food and drink sectors, she is a recognised industry expert and commentator north of the Border and is frequently called upon to judge some of Scotland’s most prestigious food & drink awards. She is currently editor of High Flyer, the passenger magazine for Glasgow Airport. She has also compiled and edited two cookbooks for the red meat industry body, Quality Meat Scotland.

SLR | MARCH 2016

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Peter Steel is Grocery Director at McCurrach. He joined the company in 1988 as a Territory Manager and progressed through line management, account management and marketing roles with McCurrach before being appointed as Director in 1999, when the company extended its operations into England and Wales. He has been responsible for establishing several of the existing McCurrach portfolio of major Grocery clients. In 2008, he was made Grocery Director, responsible for managing the Nestlé UK and Ireland teams and in 2014 added responsibility for overall development of McCurrach in the Irish market. Peter was appointed to the McCurrach Group Board in September 2015.

CHARLES WHITEHEAD Charles Whitehead is Client manager at shopper insight specialist him! and has spent the last 7 years working with retailers, suppliers and wholesalers in the convenience sector. Charles and the client team at him! work with top FMCG suppliers and convenience retailers, delivering detailed understanding of shopper behaviour to drive growth within their businesses.

www.slrmag.co.uk

26/02/2016 12:12:42

SLR REWARDS

2ND JUNE GRAND CENTRAL, GLASGOW

HOW IT WORKS? Each year SLR recruits a team of industry experts to turn the hundreds of entries for the SLR Rewards into shortlists of three in each category. Q The team meet at a secret location in Glasgow where each entry is analysed. Q Once shortlists have been decided, an announcement is made on www. slrmag.co.uk and shortlisted retailers are contacted. Q The second phase of judging follows, with all shortlisted stores visited by judges. Q Following these visits, each category winner is chosen. Q All winners are announced on 2nd June at the SLR Rewards gala dinner, to be held at the Grand Central in Glasgow.

www.slrmag.co.uk

2016 Awards Judges.indd 31

WWW.SLRAWARDS.COM

MARCH 2016 | SLR

26/02/2016 12:12:54

Inside Business

2 Minutes | Sean Russell

Sean Russell With technology playing an ever bigger part in convenience retail, symbol groups are increasing their investment in digital, including Costcutter Supermarkets Group, where a Head of Digital has been working on the company’s strategy in this area.

TELL US A BIT ABOUT YOUR ROLE AT CSG – WHAT DOES A HEAD OF DIGITAL DO? My role is to develop and implement a digital strategy that helps our independent retailers thrive, giving them the digital tools and support to enable them to engage with their customers. This means that I manage the experience of all digital solutions including digital marketing, e-commerce and in-store activities. FACTFILE Sean Russell has been Head of Digital at Costcutter since 2013. Prior to that he was Digital Marketing Manager at Virgin Money.

WHAT ROLE DOES SOCIAL MEDIA PLAY IN CONVENIENCE RETAIL? Social media allows retailers to increase awareness of their store to local consumers and engage with them in a way in which they want to be engaged. Unlike traditional media, social media enables retailers to establish a dialogue with their customers and build ongoing relationships. I’ve seen retailers use social media to reach thousands of new customers who have not only become advocates of their store but also increased product sales in ways the retailers simply did not expect.

MANY RETAILERS REMAIN SCEPTICAL ABOUT THE BENEFITS – HOW DO YOU OVERCOME THAT? In my experience most retailers recognise the potential that social media can offer but can be reluctant to take the plunge. They are looking for support and guidance. That is why we launched our social media training programme: it helps retailers get online and start building the profile of their stores.

HOW HAS THE RETAIL ENVIRONMENT CHANGED IN THE AGE OF SOCIAL MEDIA? The rise of social media means that consumers have a louder voice than ever before. They increasingly want to share content with their peers and are more likely to shop with the brands that their peers have endorsed. Retailers can tap into this and get their store to become part of the 32

SLR | MARCH 2016

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conversation and our social media strategy is designed to increase footfall and drive sales by influencing consumers to shop in their local convenience store. The challenge for retailers is the speed of social media. Consumers expect almost instant responses from brands and it’s important to always keep the content relevant to the audience.

DO CONSUMERS NOW PRETTY MUCH EXPECT SOCIAL INTERACTION WITH BRANDS? Yes, absolutely. With two thirds of adults in the UK owning a smartphone and 90% of 16-24 year olds having one it has never been easier for consumers to engage with brands, and vice versa.

WHERE DOES A RETAILER INTERESTED IN MAKING THE MOST OF IT EVEN BEGIN? The simple answer is to join Costcutter Supermarkets Group and sign up for the social media programme! Getting online is pretty straightforward and independent retailers can easily create their own Facebook page for their store. It is vitally important they understand their audience, why they want to connect with them, what benefit they give to consumers in the area, and then making sure the content they post is always relevant.

IS THIS THE SORT OF JOB THAT SHOULD BE DELEGATED TO A YOUNGER MEMBER OF STAFF? It’s about having the right person in the job, irrespective of their age. The technology is new and the speed at which things can happen has increased but the same principles of delivering content that is relevant and enticing enough to encourage customers into store and to keep them coming back is the same. Digital platforms allow direct conversations with customers, something that retailers have in store day in, day out – social media is just another way to have the conversation and extend the reach to a wider audience. www.slrmag.co.uk

26/02/2016 12:04:05

Inside Business

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2 Min Sean Russell.indd 33

MARCH 2016 | SLR

26/02/2016 12:04:07

Inside Business

EUTPD

SUPPLIERS PREP RETAILERS FOR EUTPD CHANGES

While retailers don’t have to worry about EUTPD restrictions until May 2017, suppliers must soon cease manufacturing a number of products. As they do so, they are beginning an engagement programme with retailers, as we found when we caught up with JTI’s Jonathan Yajima. BY KEVIN SCOTT

new initiative has been launched by JTI as the company looks to work with retailers ahead of the new EU Tobacco Products Directive (TPD2) legislation. With the launch of ‘Your Guide Through Change’, retailers now have a go-to source of industry-leading advice that offers reassurance and clear, practical steps to ensure they continue to profit from the tobacco category. The communications plan will see JTI provide online training modules, educational videos and easy-to-read information packs, all available 24/7 through JTI Advance (www.jtiadvance. co.uk). Retailers can also take advantage of JTI’s upskilled awardwinning sales force, trained to deliver expert category management advice and support. Speaking to SLR, Jonathan Yajima, Head of Customer Marketing, said the industry was now in stage one of a three stage process. The first stage is the end to manufacturing of 10 packs, flavoured tobacco products and RYO packets weighing less than 30g. The second stage comes in May 2017, when retailers will be banned from selling these products. The final stage comes in 2020, when menthol products are banned. “Changes are on the horizon but it’s business as usual for now,” said Yajima. “As we get closer to the 2017 deadline, stock management becomes even more important. We don’t want retailers to have high stock levels when the restrictions come into place.” 34

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He also reminded retailers that there are consequences to non-compliance, but for now it was about being prepared. In addition to the EUTPD, the UK government has passed plain packaging legislation which means retailers will not be

permitted to sell branded tobacco products from May 2017. JTI, along with other tobacco manufacturers, is currently challenging Plain Packaging in the courts and Yajima said the company hoped for an outcome shortly. JTI’s salesforce is embarking on an education strategy with retailers, helping them prepare. Yajima said: “We have to change how we interact with retailers. Sales reps are becoming business influencers

and there will be more collaborations with retailers. What we know is that retailers prefer face-to-face discussions with sales reps. Hopefully this new strategy will lead to a win for us and a win for retailers.” Jeremy Blackburn, JTI Head of Communications, added: “With the launch of Your Guide Through Change we begin a programme of ongoing communications for retailers. Whilst every shopkeeper that sells tobacco will need to be prepared, for now it’s business as usual. Our advice for the time being is – use the principles of our ARTIST category management plan, with a particular focus on availability and range to manage the category successfully.” Yajima concluded: “The most important thing is not to panic. It is business as usual for them even if our processes change. There is a year to go, so be prepared but don’t panic.” For more information, retailers can visit JTI Advance to watch a video summarising the legislative changes. They can also speak to their local JTI representative or call the JTI Customer Careline on 0800 163 503 to arrange a visit.

“The most important thing for retailers is not to panic. It is business as usual for them even if our processes now change. There is a year to go, so be prepared but don’t panic.” www.slrmag.co.uk

26/02/2016 17:49:29

Special Recognition | 2015 Rewards

Inside Business

SPECIAL RECOGNITION In 2015, John Drummond retired from his position as Chief Executive of the Scottish Grocers’ Federation, having joined the organisation after a successful career in retail. Marking the end of his fulltime involvement with the industry, SLR handed him the Special Recognition award.

t was with huge surprise that the convenience retail industry in Scotland heard that SGF Chief Executive John Drummond was to retire. Announcing that he would be standing down on 1st April 2015, SGF President Abdul Majid said that Drummond had given the SGF the credibility and integrity to become a highly effective political engagement organisation. Credible and packed with integrity, Abdul’s word choice in describing John was spot on. For almost a decade he led the SGF, steering the organisation through a changing and highly challenging retailing environment in Scotland. He had the vision to recognise that the best way for SGF to secure a sustainable and viable convenience store sector was to influence and inform the Scottish government and the Scottish Parliament. This would succeed to the extent that SGF would engage regularly and effectively with key figures in Government and Parliament, including the First Minister. John’s retirement, at a relatively young age for personal reasons, was a blow to the industry. He is a man who believes passionately in local retail and the role that it plays in Scotland’s communities. By ensuring that SGF had a viable political influence at Holyrood, John set the Federation (and the industry) on the path it simply had to be on to make its voice heard. There’s an SLR cover from May 2007 which features John outside the Scottish Parliament, megaphone in hand, demanding a better deal for local retailers. For those who know him, blaring through a microphone is not John’s natural position. A more considered, thoughtful, man, he nonetheless saw the impact the image would have, and it remains www.slrmag.co.uk

2015 Awards.indd 35

one of the most memorable SLR covers. John’s time at the SGF also coincided with the launch of what is now known as the SGF Healthy Living Programme. Now in over 1,600 stores across the country (the majority of them in deprived areas), Drummond was a key architect in the early development of the scheme, along with his close colleague and friend Ross Kerr. It was Ross who accepted the Special Recognition Awards on John’s behalf at the 2015 SLR Rewards, where he paid tribute to a man who’s influence on the industry should not be underestimated. John has quite disappeared, having taken a role with Ross on the SGF Healthy Living Programme. The industry is all the better for his ongoing involvement.

“John Drummond is a man who believes passionately in local retail and the role that it plays in Scotland’s communities. By ensuring that SGF had a viable political influence at Holyrood, John set the Federation on the path it simply had to be on to make its voice heard.” MARCH 2016 | SLR

26/02/2016 12:01:41

WOODLANDSlocal

Inside Business

Woodlands Local | Rewards Club

REWARDS CLUB MOVES UP A GEAR

With almost all of the teething problems we encountered since the launch of the Woodlands Local Rewards Club just before Christmas now resolved, last month saw a step change in the campaign activity happening in-store. BY ANTONY BEGLEY

SLR | MARCH 2016

Woodlands.indd 36

e knew fine well when we launched the Woodlands Local Rewards Club that we would run into an array of teething problems. This was, aafter fter all, the first time that a loyalty club and a fully fledged shopper engagement solution had ever been merged within a convenience store environment. And so it turned out to be, but with great co-operation between Velocity Worldwide, Retail Solutions and the teams at SLR and at Woodlands Local, we got there in the end and now have a solid, robust system that is starting to deliver some of the hugely valuable insight we always knew it would. The IT side of things is now more or less nailed down: the tills and the EPoS system now communicate efficiently and constantly in real-time via a specially created API with Darius, the software ‘engine’ that powers the Rewards Club. Darius is perpetually gathering more and more data and is beginning to build a series of detailed customer profiles for each of our Members. We now have over 70 Members, a number we’re quite pleased with at this stage of the game under the circumstances. We’ve also learned a lot in the last couple of months about how to recruit Members – and www.slrmag.co.uk

26/02/2016 15:43:27

Rewards Club | Woodlands Local

Inside Business

“We now have over 70 Members, a number we’re quite pleased with at this stage of the game under the circumstances.” how to encourage them to use their fob every time they are in the store (thereby ensuring we capture all of their personal transactional data).

CAMPAIGN FOCUS We will always be recruiting new Members for as long as we run the Club, but over the last month a lot of our activity has subtly shifted in focus away from pure recruitment onto delivering great Rewards for existing Members. It is our plan to show our customers that the Rewards Club is here to stay and there will always be a promotion or campaign running of some sort that will reward Members. Of course, we also hope that non-Members will see all of these great rewards and feel like they want a part of the action. But the message has slightly shifted onto a more ‘business as usual’ communication. We want the Rewards Club to become simply what Woodlands Local does, rather than a tactical promotional tool. In the last month we’ve run a number of campaigns through the Rewards Club that basically offer non-Members certain deals, but Members even better deals. The beauty of the Rewards Club of course is that when Members do redeem any of these deals, we can track that fact. We can also track what else they bought with the deal and how often they bought into, when they did so, etc Campaigns in February included: Q Free Lunch Friday – a free Cuisine de France lunch item for Members Q Chinese New Year deal – two sets of Chinese meal deals with an enhanced deal www.slrmag.co.uk

Woodlands.indd 37

for Members Q Valentine’s Day offer – special deal on some nice Valentine’s choccies, with an enhanced deal for Members Q Ecigs deal – promotion on e-cig liquids with with an enhanced deal for Members All of this activity was backed up with posts on Facebook, in-store POS, messaging sent to Members via Darius and prompting by the staff at the store.

BIG BENEFITS One of the most significant benefits of running the Rewards Club is that it forces the entire team linked to Woodlands Local to be much more regimented about our promotional and campaign activity. The Club is very ‘campaign hungry’ and requires us to be continually feeding it with new promotions, campaigns, deals, offers, NPD and more. We now plan all activity three months in advance and every week a new set of POS and siting instructions for each weekly promotion go to the store to execute the activity. The activity will clearly benefit the Rewards Club, but it’s also forcing us to ensure we have new activity in the store every week in life which can only be a good thing. We are almost at the point where we can start sharing real data from the last few month’s activity around the Woodlands Local Rewards Club so look out next month for a deeper dive into the insight we are now gaining into the store. MARCH 2016 | SLR

26/02/2016 15:43:29

WOODLANDSlocal

Inside Business

Woodlands Local | Own Label Range

GETTING ON MESSAGE WITH OWN LABEL FOR COST CONSCIOUS CUSTOMERS Woodlands Local has never had an own label range to offer its customers, but that’s about to change as a selection of the Independent range is set to be added to beef up the grocery offering. BY ANTONY BEGLEY

espite it being clear for many years that own label products have a role to play in modern convenience retailing, and despite the stratospheric growth of the discounters who rely on own label, we have never had an own label range within Woodlands Local in our two years at the store. In the areas where own label traditionally performs very well – such as grocery – we’ve never been particularly strong at the store, relying more on hot food and traditional convenience lines like soft drinks, confectionery and crisps. We’ve also been wary of introducing any own label lines that would immediately and blatantly link us to one or other of the wholesalers or symbol groups. Woodlands has

SLR | MARCH 2016

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always been, and is always likely to remain, an unaffiliated independent store.

BETTER DATA But with a couple of years under our belt now, we have been able to focus in on the areas of the store that have been under-performing – and one of those is clearly grocery. We’ve always put this down to the fact that we have a discounter and a major multiple within a few minutes walk of the store and have just taken it on the chin. But we’ve now decided to give ourselves more of a fighting chance in this area by introducing an own label range that will give our shoppers a value for money option across a lot of product categories. After much discussion and debate, we’ve decided to introduce on a trial basis a broad www.slrmag.co.uk

26/02/2016 15:43:29

Own Label Range | Woodlands Local

Inside Business

A WORD FROM THE BOSS

selection from Costcutter’s attractive and well presented Independent range. The deal will not affect our agreement with our existing delivered wholesaler JW Filshill and our strategy is to offer our customers two options for as many products as possible: one branded premium line for customers who only want Heinz Baked Beans or Hellman’s Mayonnaise; and one own label Independent option for shoppers seeking products at the more value for money end of the scale. There will be nothing in between. Branded or own label. Black and white.

SPACE CREATOR Interestingly, when we’ve been working with the team at Costcutter to analyse how many lines we should (and could) introduce, we’ve worked out that by going for only two options on each line (branded or own label) we actually free up many linear metres of

shelf space. So much so that we reckon we can add in dozens upon dozens of new lines on day one. While there are hundreds of products in the Independent range, we have yet to settle on a finished range for our own needs but the bright packaging and prominent price marked packs should help maximise standout on shelf and help establish the Independent products as a true ‘range’ in the eyes of the customer. On a more personal point, the Independent range isn’t overtly linked to any wholesaler in the eyes of the shopper and the ‘independent’ message is one that our shoppers are likely to associate positively with. Once the range is on shelf, the next step will be to try to steal back some shoppers from our discounter and supermarket neighbours by communicating the new range via Facebook, leaflets, local press advertising and the Woodlands Local Rewards Club, among other channels.

over

650 lines in Independent range

The Independent range has benefitted from TV advertising.

So, February then. I wouldn’t have believed it could rain that often and that consistently until I started working in Falkirk every day. I honestly think it’s been more or less raining solid since about August – and it’s having a pretty depressing effect on sales on the store. It doesn’t matter how much work we do in the store to make it attractive and inviting if the rain keeps falling our customers just won’t cross the door unless they have to. Thanks to all the data we get fed through our RS EPoS system and through Darius, the engine behind the Woodlands Local Rewards Club, we can see that footfall in the store is actually slightly down on this time last year, which is really disheartening considering all the work we’ve done. So the biggest task is just to keep at it and not lose the faith because we know that when the sun does finally make an appearance we will see the bodies cross the door again. Our leaky roof remains a problem, so much so that we haven’t even been able to fix it properly because we haven’t had three or four consecutively dry days to let us get it repaired properly. You couldn’t make it up! So we’re still working under a partly exposed ceiling with a few destroyed LED ceiling panels and water running all over the floor and onto one of the tills. We’re apparently promised some cold but dry weather before the next week, so we’re going to have a go at getting the roof finished and completed properly once and for all during that time. Apart from that we’ve been ramping up our Rewards Club activity with a series of promotions over the last month: Free Lunch Friday, Chinese New Year, Valentine’s Day and Ecig promotions all happened this month. Our customers are starting to really get used to the Club now and we’re still seeing membership grow.

Gerry www.slrmag.co.uk

Woodlands.indd 39

MARCH 2016 | SLR

26/02/2016 15:43:31

Hotlines

Product News & Media Watch

Ritz Crisp & Thin new pack sizes Mondeléz International Following the successful launch of Ritz Crisp & Thin, Mondeléz International is growing the range with a new 30g bag and three promotional price-marked packs. The brand’s Sweet Red Chilli variant from its sharing bag range will be put into a 30g on-the-go pack and promotional 59p price-marked packs will be introduced across the range. The brand will also be supported by a new TV campaign.

Taking time out to go a wafer a Dairy Milk Medley In a bid to drive new growth in the small tablet chocolate market, a new Cadbury Dairy Milk Medley has been launched. The new product combines a soft chocolate centre with visible inclusions, all wrapped in Cadbury Dairy Milk Chocolate. It is available in two 93g tablets – the first with dark chocolate chips, biscuit and fudge pieces, and the second with dark chocolate chips, caramelised hazelnuts and raspberry pieces. The launch will be supported by a £3m marketing campaign including TV, sampling, outdoor, digital, PR and in-store activity. The brand is also giving Time Out a new twist, with Cadbury Time Out Wafer. The latest innovation from Cadbury features three layers of chocolate sandwiched between sheets of wafer. With 111 calories per bar, it is a permissible snack. Priced at 35p (rrp) and available as a price-marked pack, the new single finger offering also represents great value for consumers. The launch will be supported by impactful POS to help retailers make the most of the opportunity, including free standing display units, gutter trays, dump bins and counter units.

Fusion ProShield Razor Gillette New Fusion ProShield has been launched by Gillette to positively shield against irritation. Featuring a new Lubrication Bar before the blades and a Lubrastrip after, the razor comes complete with the brand’s FlexBall handle technology, which aims to offer men the best possible shaving experience. The launch is being supported by a nationwide TV advertising campaign, a digital and social media program, and a range of POS material.

Cadbury Milk Fingers new pack formats Burton’s Biscuit Company New pack formats have been introduced by Cadbury Fingers, broadening the consumption occasions for the brand. Two new packs will join the range: a 52g ‘little treat pack’ of 10 Cadbury Milk Fingers (rrp 89p), and a larger 228g pack (rrp £2.49) aimed at family sharing occasions for larger households. The packs will be accompanied by a packaging revamp.

SLR | MARCH 2016

Hotlines.indd 40

Mac & Cheese Pot Noodle Unilever A new Mac & Cheese flavour has been launched by Pot Noodle. The new variant aims to tap into the cheese flavour trend, which has seen a massive increase in usage as part of savoury snacks over the past five years. Pot Noodle’s new Mac & Cheese flavour follows the launch of the ‘You Can Make It’ brand campaign in 2015 and forms part of an exciting 2016 plan for the brand that is being supported by a £5m marketing investment.

Independent cheese range Costcutter Supermarkets The brand owned by Costcutter, Independent, has relaunched its cheese range to offer improved flavour, packaging design and price across its Cheddar range. The Cheddar is available in eight different variants, across a range of strengths and colours. The range offers retailers an improved price point ranging from £1 to £2.50 for a 350g block. The Independent range also includes Danish Blue, Brie, Grated Mozzarella and Cheshire.

Dreamies Mars Designed to stand out in store, Dreamies recent packaging revamp features a range of distinctive colours, a bold new logo and redesigned cat character to drive impulse purchases. Dreamies has also relaunched its bulk pack for 2016, following a successful launch in the US. Replacing the 110g packs, the new bulk packs will be 180g with an rrp of £2.99. They are available in Chicken, Salmon and Cheese flavours.

www.slrmag.co.uk

26/02/2016 15:51:04

Product News & Media Watch Sunbites Popcorn PepsiCo

Mr Kipling Exceedingly Good cake range Premier Foods A new Exceedingly Good range (rrp £1.49) will be introduced to the cake category by Mr Kipling. The range will appeal to an increasing number of people who focus on a healthier lifestyle and prefer natural ‘better for you’ options.

Walkers is looking to capitalise on the recent explosion of the popcorn segment with the launch of Sunbites Wholegrain Popcorn, which is available now in Sweet & Salty, Lightly Sea Salted and Sweet Caramel flavours at an rrp of 89p. The Sweet Caramel variant is also available to retailers in a clip strip.

A new Maltesers Teasers ice cream four-pack (rrp £3.35), capitalising on the trend for in-house treats to share, has been introduced by Mars. Last year, sales of single variants of Maltesers Teasers ice cream grew by 13%. The ice cream contains mini Maltesers pieces in ice cream covered in a chocolate layer.

B&H Blue 17s JTI Packs of 17s from B&H Blue have been introduced across King Size and Superking Blue and Sky Blue variants. The new packs will have a lower rrp of £5.99. Launched as an extension to B&H in 2014, B&H Blue is made from Virginia tobacco and currently holds a significant 5% share of the combined Super Value segments. Retailers should look out for adverts in the trade media containing unique promotional codes to be entered online at JTI Advance for the chance to win £100 worth of Amber Leaf stock.



Reunion for Lineker in Walkers ad Gary Lineker is joined by old chums Alan Hansen and Jamie Redknapp in a new TV advert for Walkers Tear ‘n’ Share. Revealing a new pack which sees the bag turn into a bowl, the ad has Lineker relaxing in a reclining armchair refusing, as ever, to share his crisps, a decision that doesn’t end well for him or his crisps.

Warburtons toasts 140 years with new packs Red Bull Orange Edition Red Bull

Maltesers Teasers ice cream multipack Mars

MEDIAwatch

Hotlines

Red Bull is extending its Editions range with the launch of a new flavour: Red Bull Orange Edition. It follows the successful introduction of Red Bull Tropical Edition. The brand aims to replicate this success with Orange Edition and drive momentum across the range, which is currently growing at over 30%.

Galaxy Duet Toffee & Popcorn Mars Mars is welcoming a new combination to its Galaxy Duet range: Toffee & Popcorn. The single bar (rrp 60p) is the latest addition to the Galaxy sub-brand and like its predecessors, Galaxy Duet Toffee & Popcorn brings together two flavours that consumers can eat separately, or combine.

Warburtons is celebrating 140 years in the bakery business by bringing a golden touch to the bread shelves. From this month, a gold flash commemorating the anniversary will appear on selected packaging of the brand’s products, including the Toastie loaf, standard Crumpets, Seeded Batch and many more.

Jacob’s set for Crackin’ adventure United Biscuits has announced that British savoury-snack brand Jacob’s has cast its favourite crackers as the stars of its new £15m Crackin’ advertising campaign. The campaign, which hit consumers’ televisions last month, features some of the brand’s hero products lip syncing and dancing with the protagonists.

Haribo Super Mix takes families to the cinema More than 2,000 family cinema tickets will be up for grabs from Haribo this spring. The instant win campaign, offering family cinema tickets to be won every hour, will feature on special packs of Haribo Super Mix until May. Retailer toolkits, which include posters and shelf barkers are also available.

Robinsons urges people to drink more water Robinsons is on a mission to get people to drink more water, by reminding them that with real fruit in every drop, Robinsons with no added sugar is an ideal way to stay refreshed. A study found that nearly 70% of people questioned have gone seven hours or more without drinking a glass of water.

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

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Feature

Confectionery

SWEETEN

THE DEAL

MAYNARDS AND BASSETTS JOIN FORCES Maynards and Bassetts have been integrated into a single brand as Mondeléz International bids to reinvigorate adult candy. The entire range will come under the Maynards Bassetts branding, with a total packaging redesign and the launch of Bertie’s Jelly Mix to cement the new relationship. Available in 130g and 160g non pricemarked packs and 130g price-marked packs, the new Bertie’s Jelly Mix celebrates the fun and Britishness of the two brands. It features a quirky assortment of jelly sweets in fruity flavours and shapes including bow ties, cups and saucers and Berties. The launch will be supported by a £4m campaign, including TV, PR, digital and in-store activity. Katie Bashford, Senior Brand Manager for Joyful Candy at Mondeléz International, says: “Our research shows that 65% of candy is purchased by adults. We believe this provides a real opportunity, with our brands perfectly placed to inspire purchases by adults.” In addition to the NPD, the portfolio of classic British favourites includes Wine Gums – the UK’s number one selling sugar bag – Jelly Babies and Liquorice Allsorts, all containing natural colours.

With confectionery remaining one of the most consistent performers in convenience, the trend for sharing is having a greater influence on range than ever before.

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26/02/2016 16:12:07

Galaxy’s biggest innovation in 5 years, achieving the highest concept test score of any Mars chocolate product! Toffee & Popcorn will be the 3rd variant for Galaxy Duet , bringing incremental sales to the category. Research shows 82% of people would buy after tasting Bespoke £4 million media investment for Galaxy Duet in 2016! *

™

Available f

rom 2 8

th Fe b r u a r y

Source *Nielsen BASES II study #80184 3.7.2014. ***Based on research group, Neilsen BASES study April 2015. Galaxy® Duet™ is a registered trademark. ©Mars 2016.

Feature

Confectionery

70%

of all chocolate is bought on impulse, so make sure you’re dual siting

BON BONS ON SONG Retro confectionery firm Swizzels has done an admirable job of putting a new spin on old favourites. The latest of these is the transformation of Swizzels Drumstick Lolly and Refreshers Bar into soft, chewy Bon Bons in £1 price marked packs. Having only been available for less than six months, Drumstick Bon Bons are already the most widely distributed Bon Bon brand on the market. Swizzels has also introduced Refreshers Rope, a fizzy rope version of the classic Refreshers Bar. Refreshers Rope is part of the hugely popular Swizzels 10p range, which continues to see double digit growth. The 10p range provides retailers with an alternative price point, allowing them to give customers a variety of enticing confectionery options. Other new additions to the 10p range include the 10p Drumstick Bubblegum Lolly and the new smaller Love Hearts rolls.

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SHARE AND SHARE ALIKE What began as the Big Night In opportunity has become one of the major missions in convenience, and part of this huge success is sharing bags of confectionery. Mars performs strongly here with four of the top five lines, including Maltesers, which is the UK’s leading bitesize brand.

l s

onsistent category growth is not an easy thing to come by, but in the confectionery category, sales only ever seem to grow one way, making it bankable for retailers – a rare asset in such times. The growth isn’t enormous, but +0.6% in a £5bn market makes its mark. Within this huge market, chocolate is worth £3.9bn and is growing ahead of the market at 0.9%. Impulse opportunity remains crucial to grabbing your share of this growth. With as much as 70% of confectionery bought on impulse, it is the single most impulsive opportunity for retailers – which means it’s an unbeatable profit driver. To get in-step with consumers and increase your own sales in this area, ranging and merchandising is key – and not just in the main fixture, but throughout the store, as shoppers browse on different missions and in different fixtures.

BELTING OUT A DUET Last year’s big launch from Mars was Galaxy Duet, available in Cookies & Cream and Caramel & Shortcake variants, with an rrp of 60p. The launch was backed by a £12m spend – which included 35 weeks on TV, making it the most visible chocolate brand outside of stores all year. Looking ahead and Mars says innovative launches across Galaxy, Galaxy Duet, Mars and M&M’s will take place this year, but retailers will need to watch this space for further updates. This activity will continue to be supported by significant media investment, with over 50.4m people expected to see Mars adverts within the space of a year, and with over half of total category sales driven by Mars media, it’s important for retailers to be prepared for increased footfall during key campaign moments.

www.slrmag.co.uk

26/02/2016 16:12:09

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Feature

Confectionery

SEVEN STEPS TO CONFECTIONERY HEAVEN

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+6.6% growth in pouches and blocks

A rise in consumption trends like sharing, which has seen consumers favour Treat Bags and Pouches, as well as boxed chocolates, has contributed to category sales – with increases in 6.3% and 1.9% respectively. Mars Chocolate enjoyed encouraging growth in sharing formats in 2015, with its pouch and block formats performing strongly, generating a growth of 6.6%, while sales of boxed chocolates grew by 4.1%. An increased investment in M&M’s also proved to be a masterstroke, with the brand being the fastest grower in the top 20. Mars has indicated that 2016 will see more of the same from M&M’s, with hints about Euro 2016 and the Rio Olympics being central to these plans. The block sector is one that retailers have been able to drive sales with over the last couple of years. As prices on large blocks become more competitive, retailers have seen sales rocket. And suppliers, never slow to respond, have increased their offerings here. Cadbury in particular has a stronger range of blocks than ever, and this was strengthened last month with the addition of ‘small tablets’ of Cadbury Dairy Milk Medley. Available in two 93g tablets – the first with dark chocolate chips, biscuit and fudge pieces, and the second with dark chocolate chips, caramelised hazelnuts and raspberry pieces, Mondelez International is confident enough in the new range to throw £3m in marketing behind it. Available in cases of 15, the products have an rrp of £1.49 and are available as a £1 PMP.

Susan Nash, Trade Communications Manager at Mondeléz International, said: “Growth in the category is being driven by brands that are innovating, investing and delighting consumers. We believe that all our NPD offers something that is innovative and exciting whilst meeting specific consumer needs. We also continue to back these products with strong marketing campaigns, all of which helps to ensure that our new product launches have real longevity in the market.” It’s not just chocolate that is a big winner on the Big Night In though. Tony Lorman, Wrigley European Confections Business Unit Director reminds retailers: “A complete night in solution is crucial. Remember to focus on products

l s

Jon Eatly, Wrigley Customer Excellence Director, gives his seven simple steps to help retailers successfully maximise confectionery sales: 1. Visibility is key and popular confectionery items should be located at eye level to take advantage of incremental sales 2. Availability is crucial. Remember to re-stock each morning and prior to peak traffic times. A fully stocked display will help maximise your profit potential and guarantee repeat visits from customers 3. In order to ensure shoppers are aware of the choice and range on offer, it is important to keep a clear and tidy confectionery display – this will also make restocking easier and quicker 4. Encourage additional purchases using cross category promotions, such as ‘buy a sandwich, drink and confectionery for £3’ Single price point ‘Big Night In’ promotions are growing in popularity, allowing shoppers to satisfy all of their needs in one go. This includes ‘dine in for two’ meal offers and in store deals which include a DVD, Confectionery Pouch, e.g. Skittles or Starburst, and drink for a reduced cost 5. Rotate stock regularly so that older stock is sold through first 6. In order to raise sales and capitalise on early consumer demand it’s vital that independent retailers champion new products in store 7. Make the most of your confectionery display by using eye-catching POS materials to encourage customers to buy on impulse.

www.slrmag.co.uk

26/02/2016 16:12:10

W E

Unique Drumstick and Refreshers flavours now available as Bon Bons Now the fastest growing Bon Bons brands Already the most widely distributed Bon Bons brand The Bon Bons category is seeing consistent double digit growth (up +19% year on year)*

STOCK UP NOW! * Source: IRI total marketplace value data to 03.01.16

Feature

Confectionery

that are ideal for sharing such as Starburst ‘Tear and Share’ Pouches, which are great as they are individually wrapped and offer a variety of flavours for everyone to enjoy. Building a clear display that communicates the ‘Big Night In’ occasion will also draw shoppers into the fixture and cross category promotions will certainly encourage incremental purchases.”

PROMOTIONS & PMPS With over 70% of confectionery bought on impulse, chocolate is a valuable option for retailers to include in promotions. PMPs reassure shoppers they are getting the best value for money, and provide the perfect chocolate treat for night in with friends and family. They’re also a great way for retailers to grow sales in store and attract the attention of customers. Mars Chocolate’s range of popular PMPs includes its £1 Treat Bags, with Maltesers, Galaxy, Minstrels and M&M’S all available at a set price, as well as the large Galaxy £1 block lines, all of which has seen impressive growth in recent months. It’s not just sharing products that benefit from

price marked packs. Mars Chocolate UK has also recently extended its PMP range to drive more sales in store. Mars, Snickers, Twix, Bounty and Maltesers singles are now permanently available in price marked packs with a new rrp of 50p. “PMPs reassure shoppers they are getting the best value for money, so is a great way to grow sales in store and attract customer attention,” says Bep Dhaliwal, Trade Communications Manager at Mars. That £1 mark is far-reaching. Wrigley extended its range of PMPs last year on Skittles and Starburst, with the introduction of four additional hanging bags with a £1 rrp price flash. The company says it believes the £1 price point is a key sales driver for the convenience channel, as it provides consumers with the assurance that their purchase is good value. “We have seen an increase in sales of 49% in our PMP hanging bags since the launch of our latest PMP lines,” says Lorman.

+49% increase in the sales of Wrigley’s hanging bag range

“Growth in the category is being driven by brands that are innovating, investing and delighting consumers.” SUPER MIX OFFERS CINEMA TIX More than 2,000 family cinema tickets will be up for grabs from Haribo this spring as the gums and jellies brand unveils its biggest ever on-pack promotion. The instant win campaign, offering family cinema tickets to be won every hour, launched on special packs of Haribo Super Mix from the 15th February for a three-month period on 160g and also 220g £1 price-marked packs of Haribo Super Mix until the middle of May.

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26/02/2016 16:12:11

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Biscuits

Feature

taking the biscuit in c-stores The average adult eats over ten biscuits a week, making it one of the most frequently shopped categories in stores. With recent concerns over the UK’s high intake of sugar, lower calorie options are rising in popularity as the ‘baked not fried’ message gains traction, so combine these with more indulgent biscuits to offer the best range and the best chance to profit. BY ÉMER O’TOOLE

MCVITIE’S NIBBLES A new McVitie’s Digestives Nibbles range has been launched by United Biscuits, offering the McVitie’s Digestive biscuit range in a chocolate bitesize format. Available in a resealable pouch in four flavours — Milk Chocolate, Dark Chocolate, Double Chocolate, and Caramel — the range will be available in a 120g pouch (rrp £1.89) with a PMP variant due to be introduced later this year. The range will be supported by more than £4m in media investment.

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26/02/2016 16:02:32

ON TV

FEBRUARY

® Registered Trade Mark of United Biscuits (UK) Limited. *Subject to VAT at standard rate.

2016

Grab

MIGHTY SALES

in 2016

A brand new £15million multi-channel Jacob’s campaign will be capturing hearts, minds and sales in February 2016 across TV ads, PR, events and in store POS. For mighty big sales in 2016 stock up now.

www.betterbiscuits.com Tips, tools and advice from UB betterbiscuits@unitedbiscuits.com 020 8234 5010

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Feature

Biscuits

“Undoubtedly the biggest move in Biscuits has been the accelerated shift away from fried and towards baked snacks in savoury.” HENA CHANDARANA, TRADE COMMUNICATIONS CONTROLLER AT UNITED BISCUITS

More than

80%

of biscuits are consumed with a drink.

93% of Biscuits are sold in take-home formats

of Biscuits are sold in on-the-go packs

NAIRN’S GLUTEN FREE RANGE To capitalise on the trend for gluten free products, Nairn’s free from range offers products suitable for coeliacs and those wanting to reduce their gluten intake. The range includes Gluten Free Biscuit Breaks available in four varieties — oats & syrup, oats & fruit, oats & stem ginger and chocolate chip — and are also available in impulse packs containing two biscuits. These impulse packs are also available in Oatcakes, Oat Crackers and individual Porridge Pots. The range provides a safe wheat and gluten free option in portion-controlled packs. Whether catering for busy on-the-go customers, or looking to provide a varied eat-in service, the Impulse packs offer great oat-based products that make an ideal energy fix, suitable for serving with healthy toppings or for a stand-alone snack.

emand for biscuits in Controller at United Biscuits. “This United Biscuits’ the impulse channel Reasons to Bet on has been a major movement in the is growing faster than Biscuits: history of the biscuit marketplace the total market. To 1. The UK loves and as more, and increasingly take advantage of this, biscuits, they are in innovative, new products enter the retailers need to take a look at why 99% of household market, consumers continue to people are shopping the biscuit cupboards, more respond positively.” than any other fixture and their purchasing snack category The way people are consuming habits. Customers shop the biscuit biscuits and other snacking 2. Biscuits are category by mission and a third of purchased more products has changed in recent all biscuits are bought on impulse frequently by years, says Chandarana, with in the convenience channel. consumers than people increasingly shifting from In order to capitalise on this other snack the set three main meals a day market the most popular biscuits categories – bought to more frequent, smaller eating 44 times a year on effectively. The introduction of average occasions. “On-the-go is one single-serve biscuits such as obvious occasion rising out of 3. Biscuits are Maryland chocolate chip cookies included in almost busier and more mobile lifestyles 40g grab bag meets demand for 1 in 5 (17%) grocery and is a major growth driver across sweet and savoury biscuits that can shopping baskets, most snacking categories.” more than any other be eaten on the go. Biscuits in particular are primed snacking sector Don’t underestimate the to capitalise on this trend. There importance of cross-category 4. The Biscuits is a gap in the market due to the category has a promotions. As more than 80% proved track record significantly fewer on-the-go of biscuits are consumed with a of resilience in a formats currently sold – currently drink, convenience retailers will difficult economy. 93% of biscuits are sold in takebenefit from siting ‘on the go’ It is currently worth home formats, versus just 7% for biscuits beside sandwiches and upwards of £2.3bn, on-the-go packs. This compares and has been in cold drinks as well as hot drink to 14% for crisps and snacks and continuous growth stations as biscuits are an ideal for the past 10 years 12% for confectionery on-the-go. product to have with tea or coffee. Support of this trend is therefore 5. UB projects In response to the move away a £500m RSV an area that will form a big part of from sweet options, savoury opportunity, UB’s plans over the coming year. biscuits are growing seven times achievable by 2020. UB is currently experiencing faster than the total savoury its best ever total volume share market. The Burton’s Fish for sweet biscuits, with MAT ‘n’ Chips brand is a popular currently at approximately bagged savoury biscuit and 28%. “At the heart of sells well in the impulse this success remains our and savoury biscuits market. Masterbrand strategy which has “Savoury is bang on trend at the provided a clear identity for our brands and moment. The fact they’re baked not fried offers a consistent look for shoppers across ticks the better for you box and the pack packaging, advertising and messaging”, says sizes allow for portion control,” says David Chandarana. Costello, Burton’s Biscuit Company’s Head of In 2015 UB introduced new ranges and Category and Shopper Management. developed existing ones as part of this “Undoubtedly the biggest move in Biscuits innovation strategy. This included the launch has been the accelerated shift away from fried of McVitie’s Delichoc and the relaunched and towards baked snacks in savoury,” says McVitie’s Breakfast range which now Hena Chandarana, Trade Communications includes two new products – McVitie’s s

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Feature

Biscuits

Must-Know Trends for Biscuits in 2016: 1. It’s go, go, go with on-the-go With increasingly frequent and smaller eating occasions this is a major growth driver. 2. Value still key to shopper loyalty Transparent pricing and clear value for money is still of utmost importance to consumers, so a range of price points is crucial. 3. Health never higher on the agenda Offering a range of choice and available pack formats assists consumers. 4. Savoury is steaming ahead Savoury is seeing an accelerated shift away from traditional fried products towards baked savoury biscuits.

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Breakfast Oaty Breaks and McVitie’s Breakfast Fruit & Oat Bakes. As part of this, in 2015 we continued to extend our successful McVitie’s Sweeet campaign with new ATL campaigns, including bringing our McVitie’s Breakfast range to TV for the first time as part of a £3m media investment. Stocking biscuit options that are lower in sugar and higher in fibre could address consumers rising concerns over sugar levels in biscuits. Nairn’s Oat Biscuits in Stem Ginger, Dark Chocolate Chip, Fruit & Spice and Mixed Berries, contain 40% less sugar than the average sweet biscuit. Nairn’s only uses wholegrain oats — a great source of soluble fibre — in its Oat Biscuits, meaning they contain more fibre than most other biscuits on the market, which makes them a great healthier range of sweet biscuits to stock for shoppers who want to increase their fibre intake. United Biscuits new go ahead! Cookie Bites and Pud Bakes appeal to the consumer trend of snack grazing and offer a treat throughout the day at 99 calories per bag. Launching in two flavours — White Chocolate & Raspberry and Chocolate & Orange — go ahead! Cookie Bites will be available in packs of six at an rrp of £1.99. Go ahead! Pud Bakes will launch initially in a Cherry Bakewell flavour — with more flavours to come — and will be available in packs of five at 141 calories per bar. However, indulgent biscuits are still popular, accounting for more than 45% of basket spend on biscuits. Borders Biscuits Dark Chocolate Ginger, Milk Chocolate Ginger and its new Cookies range are expected to grow this year. Customers shop the biscuit fixture by mission and a third of all biscuits are bought on

impulse in the convenience channel so make the category impossible to miss by locating biscuits in high footfall areas at the front of store. Biscuits shoppers buy more on impulse than the average c-store shopper and are more inclined to try new products. Draw shoppers to the biscuit aisle by making it appealing and easy to navigate, which will have a positive impact on biscuit sales. In general, shoppers buy biscuits as a top-up because they’ve run out, they’re looking for a family treat or buying for a special occasion so it is important to cater for all of these shopping missions. Customers are becoming more price savvy as well. According to the 2016 Shopper Stock Take Index, 20% of shoppers now use price comparison sites and 30% look up and use deal or voucher websites. Making prices and promotions easy to spot will be the key to customer satisfaction. Biscuits is one of those categories that is bought every day and Scotland’s independent retailers can boost biscuit category sales by taking more account of the reasons shoppers are buying biscuits – and merchandising the category accordingly.

www.slrmag.co.uk

26/02/2016 16:02:35

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Milk

Feature

MAKE MILK YOUR MISSION Milk continues to be one of the biggest sales drivers in the entire sector, but like all others, there’s an easy way to approach it, and a hard way – guess which leads to bigger profits? BY ÉMER O’TOOLE

ilk is a key sales driver in the convenience sector with one in eight shoppers saying milk is the main reason they visit their local convenience store. Crosscategory merchandising and high visibility will be key to selling this everyday essential well. Milk is the number one top-up mission product in convenience, so effective management of the category is crucial. Shoppers who add milk to their shopping basket will spend up to 30% more than an average shopper who doesn’t so if you market the fixture well, high sales will follow. Increasingly, offers and deals should be targeted to the four out of five shoppers not currently buying their milk from the convenience sector. The potential for growth here is huge, and offers should be scattered around the shop, not just at point of sale, to maximise awareness. Sandy Wilkie, Business & Relationship Development Director at Müller, says: “Consumers increasingly demand traceability within fresh produce and by offering milk with a clear link to the area where it is produced, without adding cost to the retailer, we can add

TOP MILK SELLING TIPS 1. Ensure that the refrigeration of the milk is below 5 degrees. Müller works hard to ensure the “chill chain” is not broken from the moment the milk is collected from farm to the point of delivery. It is vitally important that this is continued in-store for the qualitry of the product to be maintained. 2. Maintenance of the milk fixture is crucial. The company’s teams encourage retailers to review the chiller every hour to ensure it is tidy and that stocks have been rotated to minimise waste. 3. One statistic to consider is that most milk is sold after 3pm so it is important that this is taken into consideration when reviewing ordering. 4. Allow milk to be visible from the door: making it visible from the door of the store and ensuring the most popular variants (i.e. 2 litre semiskimmed) are at eye level will help boost sales.

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value to our milk which can be passed on to consumers in the form of confidence, peace of mind and pride in quality regional milk and products.” Don’t underestimate the flavoured milk category which is now worth over £299m. Chocolate milk remains the category’s favourite flavour with a 32% share, followed by fruit (24%) and coffee flavoured milks (15%). Continued innovation and NPD within the milk drinks category has seen more flavoured and specialised milks enter the category, including Mars and Snickers High Protein milk drinks. Milk drinks with health benefits are also growing in demand. Dairy drinks like Nurishment are ideal for consumers who don’t have time to stop, and are an unmissable profit opportunity for retailers. It is essential that retailers review and analyse their customer range to ensure they are offering the best range of products and size variants to meet customer demand. It is also important that the milk fixture is visible in store and places key products at eye level to ensure the best sales. Müller advises its customers to maximise sales by ensuring that their milk chiller remains well-stocked, clean and that stock is rotated. Co n f e c t i o n e r y brand bestsellers — Mars, Galaxy and Skittles — milk drinks are a profit opportunity for retailers since bulk stocks can be stored outside of the chiller, allowing for easy storage and an extended shelf life. www.slrmag.co.uk

24/02/2016 14:47:07

100% Scottish milk in every drop

MWD_ScotlandGrampian_A4TradeAdvert_artwork_Layout 1 19/02/2016 16:55 Page 1

www.muller.co.uk

Feature

Beer

THE

NO FEAR GUIDE TO SELLING

BEER The beer category is one that is constantly changing and with the rise in popularity of craft beer, convenience retailers need to work harder than ever to keep existing beer shoppers interested and attract new consumers to this growing category. BY ÉMER O’TOOLE

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Trade Marketing Director – Off Trade, Heineken UK. With 66% of cider and beer shoppers buying premium brands, that means stocking brands such as Amstel, Birra Moretti, Sol and Tiger can generate growth. “Ensuring you have a range of premium beers for customers to choose from is becoming ever more important as 18% of shoppers would like more premium options,” says Clarkson. Pack sizes is also a puzzle worth solving. “Convenience retailers should focus on a range architecture that meets a number of key price points to cater for the different shopper missions,” says Jessica Markowski – Head of Consumer Activation, AB

HEINEKEN’S TOP BEER SELLING TIPS Q With 66% of cider and beer shoppers buying premium brands, independent retailers are also advised to ensure they have a range of premium beers as 18% of shoppers would like more premium options. Q It’s crucial for retailers to keep their chiller fully stocked. Heineken’s Star Retailer scheme offers retailers advice on how to merchandise their beer and cider offering. Scottish retailers are advised to separate cider and beer in the chiller and give both beer and cider the space each category requires versus the sales it contributes. Q Multi packs play a key role for independents, particularly ahead of big sporting events like the UEFA Champions League and the Euros. Stocking multipacks on branded display units and running promotions with complimentary categories, such as snacks, helps impulse purchases.

hatever way you look at it, £1.1bn is a lot of a liquid. And that’s the figure beer is estimated to be worth in the impulse channel. Sales don’t just come from the big-name lager brands though, so retailers have to work to ensure their fixture is delivering what consumers want – particularly the trend-influenced younger demographic. Heineken says 63% of consumers look for new and exciting flavours when choosing premium varieties, so the brand’s recent innovation within brands such as Foster’s, John Smith’s and Strongbow offers retailers products to suit this. Pushing into premium territory is the next step after stocking up on standard product lines. “With the mainstream beer and cider categories struggling for growth, retailers should consider streamlining their range to make space for premium brands that will drive value and encourage tradeup,” says Craig Clarkson, Category &

www.slrmag.co.uk

24/02/2016 15:38:45

WIN over even more customers.

Stock up now on McEwan’s Export, the best selling ale in Scotland. Our Spring on-pack promotion to win a limited edition 160th anniversary glass will make McEwan’s Export more popular than ever. Source: Nielsen ScanTrack Value Sales, MAT to 02.01.16.

PLEASE DRINK RESPONSIBLY

Feature

Beer

FREE AND EASY With the reduction in the drink driving limit in Scotland there has been an increase in investment in alcohol-free beers. Once (probably rightly) considered a bit of an unpalatable joke, the alcohol free market is becoming sophisticated. Opinium research revealed that nearly a fifth (19%) of UK consumers are unable to taste the difference between alcohol and alcohol-free beer. Sales in Scotland demonstrate that alcohol-free beer is outperforming the wider market within the on-trade, with a growth of over 22%. New research released by AB InBev UK also reveals the growing popularity of alcoholfree beer among the Scottish public. Nearly a third (30%) have now tried alcohol-free beer – this falls slightly for Glaswegians (28%) and rises to 33% for those from Edinburgh. Of those who have tried alcohol-free beer, 11% drink it at least once a week. “There are real opportunities in low/no alcohol beer,” says Jessica Markowski – Head of Consumer Activation at AB InBev. Well-established, the company’s Beck’s Blue is the market leader, contributing to 58% of the category, and increasing 15% year on year in retail. “Millennials will be key to this category growth, with over a fifth (21%) of those aged 18 to 34 looking to choose alcohol-free beer in January 2016, an increase of 10% on 2014,” says Markowski. The likes of Beck’s, San Miguel, Tennent’s Hee Haw and Erdinger all have alcohol-free beers worth considering, and even craft brewers like Brewdog (with its Nanny State brew) and West are getting involved. The latter recently launched Nix, a new brand of alcohol-free beer. Offering two different beers — Nix lager 0.0% ABV and Nix wheat 0.0% ABV — the new brand aims to tap into the growing alcohol-free beer market. West founder Petra Wetzel says: “Whilst Nix lager is cool, crisp and clean-tasting, Nix wheat is fruity and refreshing. Both represent the perfect blend of our Glaswegian heart and German head and both are a natural extension of our adherence to the Reinheitsgebot of 1516; the German purity law which prescribed the use of only barley, hops, yeast and water in beer making. No chemicals. No preservatives. No artificial flavours. Now no alcohol.”

InBev. “The convenience channel has a heavy bias towards single/small packs, so the range architecture should reflect this.” It is also worth considering whether you are providing the right ratio between well-known brands and craft beer brands. Edinburgh-based brewery, Caledonian, is extending its range of bottled beers to include its two newest craft beers: American inspired Pale Ale, Coast to Coast and craft lager, Three Hop. Managing Director of Caledonian Brewery, Andy Maddock, says: “Craft is on the tip of everyone’s tongue and with that buzz continuing to drive new consumers into the beer category, the bottle format offers our customers the opportunity to experiment with their range to give consumers a great choice of quality beers. What we’re doing with modern craft through the two most recent additions to our range reflects the dynamic, innovative and vibrant ethos our customers have come to expect and that has always characterised our approach here at the brewery.” Keeping it Scottish, McEwan’s will celebrate its 160th birthday this year and its IPA is a modern twist on the Original McEwan’s IPA from the 1850s, and is attracting a new generation of

drinkers to the brand. Tara Karimian, Marketing Manager for McEwan’s Beers, says: “With the craft beer revolution in full swing, there has been concern from some that older breweries, would suffer. While this is a challenge, McEwan’s strong heritage, coupled with an ability to adapt and create new brews like our IPA, will see us through another 160 years.” At Brookfield there has been a major push on Kestrel of late, which has been repositioned as offering premium value and a superior taste. Kestrel sells especially well in convenience and independent retailers due to the value for money offered. Kestrel Premium 5% abv lager has an rrp of £4.00 for a 4X500ml pack. Kestrel Super Premium 9% abv lager has a rrp of circa £2.00 per can, and is also available in an 8% variant. Also from the company is Super Bock, a Portuguese beer that will benefit retailers looking to capitalise on the world beer upsurge. With an rrp of £5.00 for a 4x330ml NRB pack, Super Bock is anticipated to become a great seller and a must stock addition to your range.

TENNENT’S INTRODUCES NUTRITIONAL INFORMATION ON PACKAGING Tennent’s has announced plans to print clear nutritional information on its cans and bottles. Tennent’s hopes the move will demonstrate further commitment to educating drinkers and promoting the responsible consumption of alcohol. Tennent’s Lager contains 30 calories per 100ml, which is the lowest of the main lager brands, compared to soft drinks like orange juice and cola, which contain around 44 calories per 100ml. Tennent’s will extend the visibility of nutritional information on its brands to pubs, bars, clubs and restaurants by displaying the information on drip mats. Alastair Campbell, Managing Director of Tennent Caledonian, said: “Calorie content is an easily understandable way to help people make better choices about what and how much they consume. They can see this information on the foods they eat, we therefore believe that the packaging of our beer and cider brands should carry these details too.”

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24/02/2016 15:38:46

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12/02/2016 12:25

UTC

TAKE THAT, CLIMATE CHANGE DENIERS

TRUCK POP

Nothing says healthy like a trucker eating popcorn. What? You think you get this level of press coverage by putting it in the hands of a cinemagoer? That’s why Metcalfe’s Skinny popcorn’s PR team is earning their bonus this month. According to the popcorn brand, it’s an age-old stereotype that truck drivers have unhealthy lifestyles and snacking habits but the reality is the opposite. Research by an insurance company has shown that 34% of the UK’s driving men and women are now self-confessed foodies, with nearly two thirds (61%) of them now shunning substandard motorway service station food in favour of higher quality and healthier options, which is why the team at Metcalfe’s provided all Eddie Stobart truck drivers with its new popcorn flavour ‘Cinema Sweet’. UTC just hopes the drivers didn’t lose concentration when a wee bit fell between their legs on the M1.

CHANGING FRONTS IN THE ‘WAR ON SUGAR’ When someone somewhere decided that this year’s consumer enemy would be sugar, the focus was depressingly sharpened on convenience stores – they sell sugary drinks, they sell chocolate and sweets, they are evil incarnate! Okay, UTC is willing to concede he may be exaggerating there, but after almost a year of being singled out, UTC was delighted to see that focus move onto coffee shops, and when it did, boy did those guys look bad. So, there’s sugar in sugary drinks. We know that. That’s why 49% of all soft drinks sold are low sugar or low calories versions. Ask punters on the street, almost everyone would be aware there’s a fair wad of sugar in a can of ginger. Ask them how much is in a coffee from Starbucks, and they’d probably say ‘a bit’ or ‘some’. Ask them how much is in a Chai Latte, and some would say ‘a what?’, others would say, ‘dunno, bit more than a normal coffee?’. In reality, it turns out coffee shops are piling impressive amounts of sugar into some hot drinks. Take for example, the Hot Mulled Fruit – Grape with Chai, Orange and Cinnamon Venti from Starbucks, which has 25 teaspoons of sugar in it! Over at rival Costa, a Chai Latte Massimo has 20 teaspoons of sugar. That said, if you’re ordering a Hot Mulled Fruit – Grape with Chai, Orange and Cinnamon Venti the amount of sugar in it is probably the least of your problems. 62

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The lack of parking around local shops can be infuriating, particularly when supermarkets seem to have enough spaces to give two to each customer (or perhaps that’s just the Range Rover drivers). When organisers at the annual Winter Fest in Wisconsin, USA, needed more spaces, a simple plan (and by simple, UTC means, not that bright) emerged. The lake was frozen, it was winter after all, why not just let people park on the frozen lake? After the inevitable thawing and the sinking of several cars, UTC was left wondering who was more ‘simple’, the drivers or the Winterfest organisers.

WELL THAT GETS UTC’S VOTE With an election on the horizon, every candidate in every party will soon start tripping over their own trousers, so full will their pockets be with promises of utopian living standards and free money for all. UTC doesn’t buy into any of this nonsense, which is why he tends to read each and every manifesto, digging deep into party policy before making an informed choice that is without bias. Well, that said, look, the Scottish Greens have brought out a beer! VOTE GREEN!! (… other political parties are available, ed).

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