SLR May 2022 Edition by 55 North

DAEL LINKS

Meet the Snappy marketing boss

JIM ECCLESTON

MAT 2022 | ISSUE 229

WWW.SLRMAG.CO.UK

BACK IN THE MARKET

Making local products stand out

+ JUUL2

US giant refreshes device

CJ Lang opens first companyowned store in five years

NO GAMBLE Retailers pass Lottery test purchase

BIKES AGAINST BOMBS

Industry colleagues ride for charity Checkout Scotland reveals venue for September event p25

May 2022

Contents

Contents ISSUE 229

NEWS p4

Healthy Eating Consumers remain divided on the potential impact of England’s HFSS legislation on eating habits. p5 Illicit Trade The illicit tobacco market in the UK remains ‘resilient’, a new industry report reveals. p6 Sustainability The Scottish Government presses ahead with plans for charges on single-use beverage containers. p9 Trading Scotmid warns of ‘uncertainty’ ahead after ‘Covidimpacted’ results reveal a drop in profit and turnover. p10 News Extra Legislation The Scottish Government consults on calorie labelling regulations for the out-of-home sector. p16 Product News Lucozade Energy launches an Xbox promo and Coca-Cola takes the mystery out of recycled plastic. p18 Off-Trade News WKD enters the ‘enhanced RTD’ category and Guinness brews up Coffee Beer.

INSIDE BUSINESS p20 Two Minutes Of Your Time Dael Links Snappy Shopper’s Head of Marketing shares his thoughts on the size of the home delivery opportunity for convenience retailers. p22 Research Growing demand for locally produced food and drink provides opportunities for convenience stores to attract new customers and increase spend. p25 Checkout Scotland The spectactular Barras Art & Design will host GroceryAid Scotland’s inaugural music-based celebration of the convenience and grocery retailing sectors. p26 Charity A team of 24 industry colleagues are set to cycle 300km in Bosnia to raise funds for landmine charity MAG. p28 Trade Events More than 150 suppliers have signed up for Spar Scotland’s tradeshow in Aviemore in September. p30 National Lottery A new Lottery test purchasing campaign sees 90% of retailers pass their first ‘Operation 18’ visits. p32 Hotlines The latest new products and media campaigns. p58 Under The Counter The Auld Boy is outraged that he must work 40 seconds longer than a Londoner to pay for a sausage roll from Greggs. FEATURES p34 Vaping Convenient closed pod and disposable devices continue to ignite the UK’s growing vape sector. p44 Grocery Today’s convenience shoppers are giving a lot more love to their local store’s grocery aisles. p46 Cigars Now that cigar shoppers seem to be drifting back to the major multiples, is it time to go back to basics? p48 Sports & Energy Local retailers have an opportunity to score big with sports and energy drinks this summer. p54 Forecourts The UK’s forecourt stores are offering an increasingly innovative and environmentally focused mix of products and services. ON THE COVER p14 CJ Lang opens its first company-owned store in five years under its new ‘Spar Market’ format that puts a major focus on fresh.

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MAY 2022 | SLR

News HEALTHY EATING Research finds shoppers conflicted over new rules

EG Group to create over 22,000 jobs EG Group has unveiled plans to create about 22,700 UK jobs between January 2022 and December 2026. The Group will deliver many of these jobs from rolling out its bakery chain Cooplands and fast-food brand LEON across its forecourt network, new-to-industry sites, and EG foodservice concessions at Asda locations. EG has also increased the average hourly pay to £10.05 for UK employees.

McColl’s shares fall after ‘mixed trading’ report McColl’s Retail Group has reported “mixed trading” since its last update on 28 February 2022. The retailer said it experienced softer trading through the Easter period, impacted by reduced consumer spending and continued supply chain disruption across the industry. However, its Morrisons

HFSS legislation continues to divide consumers Consumers remain divided on the potential impact of HFSS legislation on unhealthy eating habits which comes into force in England in October, research from Lumina Intelligence reveals. The research shows 41% of consumers agree on the eﬃcacy of HFSS overall. However, despite this, 55% of those who agree with its eﬃcacy will still purchase HFSS products. In addition, the data shows that 57% of respondents would continue to purchase HFSS products if they weren’t on promotion, just 12% indicating that they would not purchase HFSS products if they weren’t on offer. HFSS location restrictions could impact 46% of confectionery, crisps and snacks, and soft drink

purchases in convenience, the research finds. The figures show 46% of HFSS products purchased are picked up from locations set to be restricted under the legislation. HFSS products were picked up on the main product shelf (44%), aisleends (23%), the front of the store (11%), the till (9%), free-standing displays around the store (5%), and within the queue system (3%). Confectionery is at most risk with 50% of purchases made in HFSS-restricted locations, while soft drinks purchases are least impacted with 44% bought in restricted locations. HFSS volume restrictions could impact 32% of confectionery, crisps and snacks, and soft drink purchase in convenience, the research found.

Increasing non-volume offers and introducing new promotional deals will be essential as 32% of HFSS category purchases are made on multi-buy and buy one get one free promotions. Other promotions were: percentage off (21%), multibuys (20%), meal deal (16%), buy one get one free (11%), and bundle deal (1%). Blonnie Whist, Insight Director at Lumina Intelligence, said: “Although consumer appetite for HFSS products remains, retailers are going to have to think hard about merchandising and promotions. “Nearly half of all HFSS products purchased are picked up from areas set to be restricted and 32% are purchased as part of promotions set to be restricted.”

Daily delivered like-for-like sales ahead of the total convenience market.

Operation targets illegal tobacco in Aberdeen Trading standards officers in Aberdeen have launched a campaign targeting sales of illegal tobacco. Officers using specialist tobacco sniffer dogs will be checking shops to ensure they are complying with the laws surrounding the sales of tobacco. The operation will complement work being carried out as part of Operation CeCe (Scotland), a nationwide strategy devised by HMRC and Trading Standards to tackle this problem.

ACS launches employment resources hub The Association of Convenience Stores has developed a new package of employment resources for retailers. The hub supports effective recruitment, retention, and progression across the convenience sector. The People Hub, accessible via the ACS Member Portal, includes

NATIONAL LOTTERY Camelot says Gambling Commission got decision “badly wrong”

Camelot goes to court over loss of lottery licence National Lottery operator Camelot has initiated proceedings in the High Court against the Gambling Commission in the wake of its decision to award the next licence to operate the lottery to Allwyn Entertainment. Nigel Railton, Camelot CEO, commented: “We are launching a legal challenge today in our capacity as an applicant for the Fourth Licence because we firmly believe that the Gambling Commission has got this decision badly wrong. When we received the result, we were shocked by aspects of the decision.” The Gambling Commission had previously said the naming of Allwyn followed a “fair, open and robust” competition which saw Camelot named Reserve Applicant. Railton continued: “Despite lengthy correspondence, the Commission has failed to provide a satisfactory response. We are therefore left with no choice but to ask the court to establish what happened.”

SUSTAINABILITY

Rising inflation a ‘barrier’ to sustainable shopping The cost-of-living crisis and rising inflation are creating a barrier to adopting more sustainable shopping practices in the UK and Germany, according to a new study. The study by research platform Quantilope found that despite nearly threequarters of British and German consumers strongly agreeing that protecting the environment is one of the most important issues of our times, just one in five shoppers in the UK make planet-friendly choices due to inflation concerns. Quantilope’s research also found that half of the consumers in each market look for sustainable ingredients on packaging and pay attention to the displays/information shown on shelves.

content on recruitment, retention, and progression.

SLR | MAY 2022

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News ILLICIT TRADE Over two-thirds of smokers are buying illegal tobacco

Illegal tobacco market ‘remains resilient’ The illicit tobacco market in the UK remains ‘resilient’, a new industry report reveals. The Tobacco Manufacturers’ Association’s AntiIllicit Trade Survey reveals 71% of smokers surveyed claim to have bought illegal tobacco last year, a reduction from 78% in 2019. London bucked this trend though; the number of smokers purchasing illicit tobacco there is unchanged at 85% from 2019. The poll shows that 68% of respondents had no issue with buying tobacco that had not had UK tax paid on it from a friend, relative, or shops. If it is viewed as crime, it is viewed as a ‘victimless’ crime, although more smokers are aware that illicit tobacco is a source of funding for organised criminals. In addition, the survey findings point to a spike in people buying illicit tobacco through social media and websites, with 19% of respondents claiming to have used platforms to purchase and trade illicit tobacco, compared to only 4% before the pandemic.

Rupert Lewis, Director of the TMA said: “There is positive news in this year’s survey findings, with more people reporting illicit tobacco when they were aware of it, and a decline in people purchasing illegal tobacco in every region across the UK with the exception of London. “However, the 2021 findings still highlight the continued widespread availability of illicit tobacco, as well as the entrenched perception among many consumers that it is

‘acceptable’ to trade or buy illicit tobacco.” He added: “I believe that government, law enforcement, industry and retail, must double down on our efforts and take the fight to those who bring about such misery through trading and supplying illicit tobacco, and this is why the TMA supports the government in bringing forward new measures to increase sanctions on those who sell or distribute illicit tobacco.”

Retail sales fall Food sales volumes fell 1.1% in March, with households cutting back due to cost-of-living concerns, according to the Office for National Statistics. The ONS said that the decrease was also due to more shoppers preferring to eat out and socialise after Covid-19 restrictions came to an end. The data also reveals a 3.8% decrease in fuel sales volumes as soaring petrol and diesel costs put motorists off making unnecessary journeys.

Consumer confidence in freefall Consumer confidence fell by seven points to -38 in April, new data reveals. GfK’s Consumer Confidence Index shows all five measures of confidence were down in comparison to the 25 March announcement and the headline score was just one point off the lowest on record.

Police Scotland warns retailers over cheque fraud Police Scotland is warning independent retailers to be wary

NEW STORES Village shop reopens after 20 years

Edinbane secures funding to transform vacant village shop and forecourt Edinbane Community Company, on Skye, has secured a £25,00 grant from Crown Estate Scotland’s Sustainable Communities Fund. The money will help reopen Edinbane’s vacant village shop and petrol station, which has been vacant for nearly 20 years, and transform the site into a community-run facility. Development worker, Andrew Prendegast, said: “The community of Edinbane is excited at the prospect of once again having basic local amenities in our village – somewhere to buy food, groceries, and access vital post oﬃce services. “We acquired the old village shop site in 2020, and this award from Crown Estate Scotland will enable us to develop our plans for a new community-owned enterprise. These key local services will underpin Edinbane’s regeneration.” Annie Breaden, Head of Policy for Crown Estate Scotland, added: “Communities are driving ambitious, creative, and innovative projects across Scotland. We were extremely impressed by the range and quality of applications and Crown Estate Scotland is delighted to be supporting such important and positive projects. “These initiatives have the potential to make an enormous impact on these communities and the people who live in them, and we are looking forward to seeing how they progress.” Applications for the next round of the Sustainable Communities Fund will open in the summer.

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NEWSTRADE

Reach makes further cuts to margins Publisher Reach has not included pro-rata profit margins as part of increases to the cover price of the Daily Mirror and Daily Star. From 2 May, weekday editions of the Mirror will increase by 5p to £1, with the Saturday edition increasing from £1.60 to £1.70. In Scotland, weekday editions will go up to £1.10. The same increases of 5p and 10p apply to the Daily Star. The move means that their profit margins will reduce from 20% to 19.5% for weekday editions and from 20% to 19% on Saturdays. Profit margins on sales of the Daily Star will also reduce from 20% to 19% on all editions, except Sundays.

of anyone paying by cheque after continuing to receive reports of fraud. Similar reports were initially received in February, but the police force has reissued its warning after several recent reports across Angus and Dundee of a person attending small independent retailers requesting to pay for expensive goods by cheque, which is later rejected by the bank while being processed.

PayPoint unveils digital voucher support PayPoint is launching further marketing support for its retailer partners to promote the growing digital voucher category. The move follows a successful trial in 1,000 stores at the end of 2021. Trial stores saw uplifts of up to 300% in sales of digital vouchers. All retailer partners can now order free-of-charge display units and point of sale to promote these services in-store.

MAY 2022 | SLR

News SUSTAINABILITY Move seeks to curb use of disposable drinks containers

One Stop and FareShare tackle hunger One Stop worked with FareShare, the UK’s biggest

Scottish government presses ahead with plans for chargeable cup scheme

charity fighting hunger and tackling food waste, over Easter. The symbol group launched an Easter activity book that was available to purchase in-store for £1. All profits from the sale of the books will go towards helping FareShare provide food to struggling families. Plans are already in place to produce a third activity book, which will be launched in summer 2022.

Legal requirement to wear masks ends The legal requirement to wear face masks ended in Scotland on 18 April. First Minister Nicola Sturgeon told MSPs the wearing of face coverings would become a matter of guidance and people would be encouraged to use them “in certain indoor places”. She noted that masks in public

The Scottish government is pressing ahead with its plans to introduce charges on single-use disposable beverage containers. Work to tackle single-use cup waste was paused during the pandemic and the charge is expected to come into effect during the course of this parliament. Circular Economy Minister Lorna Slater is forming an advisory group that will shape plans for mandatory charges on single-use disposable beverage containers. The group will contain representatives from distributors, manufacturers, small and large retailers, consumer groups, environmental non-governmental organisations, equalities groups, and academics. Slater said: “Alongside Scotland’s deposit return scheme, which will

recycle nearly two billion bottles and cans every year, and our action to ban some of the most problematic single-use plastics, this will make a vital contribution to reducing the amount of waste generated in the country.” Iain Gulland, Chief Executive, Zero Waste Scotland, added: “Switching to reusable over singleuse is one of the best things we can all do for the environment, so it’s hugely welcome news that work to shape a chargeable cup scheme is

continuing with the formation of an advisory group.” An estimated 200 million singleuse disposable beverage cups are used every year in Scotland, with this figure expected to rise to 310 million by 2025. An Expert Panel on Environmental Charging and Other Measures recommended the introduction of a national, mandatory requirement to sell beverages and disposable cups separately, including an initial minimum price of between 20 to 25p per cup. As part of recently announced packaging reforms, larger coffee shops, fast food chains and others who sell drinks in disposable paper cups will have to provide a dedicated bin to collect and recycle these from 2024.

places have been in place for longer than anticipated due to the high number of cases.

Bestway booming Bestway Wholesale has reported a £220m increase in revenues for 2021. The 10% jump was driven by Bestway’s focus to ensure operations were “as smooth as possible” while “responding fast to changing customer behaviours”. The retailer also saw an operating pre-tax profit of £37.2m during 2021, having also completed the acquisition of Costcutter in February 2021.

Jisp partners with GroceryAid Jisp has joined forces with GroceryAid in a bid to increase awareness of the free, confidential welfare services available to independent retailers, and generate financial contributions for the industry charity. Jisp Media, a new brand engagement platform, will donate money every time a customer interacts with Jisp’s Scan and Save service in-store and promote GroceryAid to retailers through Jisp Media.

SLR | MAY 2022

SYMBOL GROUPS

POST OFFICE Opening follows the closure of a CJ Lang-operated branch

Budgens has unveiled plans for its 150th birthday to be celebrated throughout 2022. The symbol group will support its independent retailers with anniversary hero promotions every four weeks, backed up by a strong promotional campaign that includes bespoke social media, specially designed point-of-sale, a PR campaign, and 150th anniversary-branded materials. Stewart Fenn, Sales Director at BRP, said: “We will be building on Budgens’ fantastic heritage and legacy throughout 2022, ensuring that our stores remain at the heart of local life and the communities they serve.”

A new permanent post office for Balintore has been opened by Jamie Stone, MSP for Caithness, Sutherland and Easter Ross. Balintore Post Office is operated by the Seaboard Memorial Hall, which is a community-run company, sitting alongside its well-established café. A temporary post office was set up at the Seaboard Memorial Hall in October to provide a part-time service of four hours each week. This interim service was provided by the Postmaster for Alness, to maintain Post Office service to Balintore, due to the resignation last summer of CJ Lang, which had operated the branch at its store on Main St. Director of Seaboard Memorial Hall, Maureen Ross, said: “People regularly use the Post Office to send parcels, collect pensions, and to pay bills. They can also do banking here for all the high street banks, so it will save people long journeys as the nearest bank is nearly seven miles away. “Tourists and the local community were already coming here with friends and family for a drink and food at the café, so it is very convenient for the post office to be here as well.” The branch, at Seaboard Memorial Hall in East Street, is open Monday to Friday 9am to 12.30pm.

Budgens to mark 150th birthday with promotions

Balintore welcomes permanent post office

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News TRADING Warning follows falls in turnover and profit

Scotmid warns of ‘uncertainty’ ahead after ‘Covid-impacted’ results

Forecourt future Henry Stewart Conference Studies is hosting a three-part online course on the future of petrol filling stations. The course

Scotmid has seen profit and turnover drop in its latest financial results for the year ending 29 January 2022, impacted by the Covid pandemic. Overall, the company saw trading profit for the 52 weeks ended 29 January 2022 fall by 11% year-on-year to £5.7m, while the total turnover for 52 weeks was £403m, down £6m on the 53 weeks last year. Food convenience saw a reduction in trade compared to the lockdown period in early 2020, driven by the later lift in restrictions in Scotland, as well as major disruptions in the UK supply chain in 2021, including a severe shortage of HGV drivers, staff shortages, and Brexit-related disruption.

“This worsened during the Omicron spike with very high levels of sickness and self-isolation due to the transmissibility of the virus. There were also some specific issues relating to the Co-op supply chain as it invested for the future,” the report reads. However, the retailer said it has “successfully” delivered the programme of investment in the store estate, with several major refits having been complete, along with investment in environmentally friendly fridges and a new store in Perth. “The successful development of our food-to-go offer continued, supported by investment in new counters, ovens, dishwashers, and digital screens. Other foodto-go development work included the opening of the ‘Kitchen’ in our Uddingston store,” the retailer added. Other investments in technology included the rollout of electronic shelf-edged labels to 40 stores, along with a new food-to-go allergen labelling solution to ensure compliance with Natasha’s Law, which came into force during the year. What’s more, the Snappy Shopper home delivery service has been expanded to more stores, following rise in demand through the peak of the crisis.

will offer insight from industry figures from Christie & Co. Get 50% off the cost with the code CHRISTIE50. Visit bit.ly/3MDLSIo to view the full course summary and register.

Spar Scotland launches store awards Spar Scotland has launched a new awards programme to highlight individual store achievements, which have made a positive impact on communities. The awards are Company-owned Store of the Year, Independent Store of the Year, Company-owned Community Store of the Year, and Independent Community Store of the Year. Stores will be judged over three months this summer and the winners will be revealed at Spar Scotland’s 2022

BUSINESS COSTS MSP calls for windfall tax

Tax energy firms not local retailers, says Sarwar Scottish Labour Party Leader Anas Sarwar MSP has called for a windfall tax on energy companies and a cap on tariff prices for smaller businesses. He was addressing independent retailers at the Fed’s Scottish trade and business conference in Glasgow on 29 March. He said: “The energy market is broken. The large energy companies are making record profits and the system is not balanced and fair. The multinational companies duck and dive and avoid their responsibilities. “It would be a tragedy that, having got through the two years of hell caused by the pandemic, businesses now fail because of the rise in energy prices.” Sarwar then praised retailers for their commitment to local communities during the Covid crisis, saying: “I recognise the roles you played during the pandemic. You carried on working and kept your doors open despite all the risks involved – you led from the front. “We have to recognise that retailers and their staff are on the frontline and need financial support as we come out of the pandemic. “They also need to feel safe and secure at work – it is simply unacceptable for anybody to feel at risk, under threat or under pressure at work.”

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CRIME

NFRN thanks MSP for unwavering support The NFRN has presented Daniel Johnson MSP with an award in recognition of his determination to get the Protection of Workers (Retail and Age-restricted Goods and Services) (Scotland) Bill passed by the Scottish parliament. The NFRN recognised Johnson’s efforts by presenting him with a quaich – a cup used to offer welcoming drinks at clan gatherings – in the grounds of the Scottish Parliament. Johnson said: “I created my Bill to keep retail workers safe and to remind us all that abuse is never part of the job. That is why I am so happy to have the Bill recognised by the Fed in this way.”

tradeshow.

One Stop introduces retailer ‘care calls’ One Stop has launched a new service as part of its Franchise Action Line service, which kicked off last year. The care calls are conducted by One Stop within the first two weeks of stores opening, giving owners the chance to ask for any additional guidance and build relationships with the One Stop team.

Changing shopping habits More than half of all Brits are noticing the increasing cost of their weekly grocery basket in the last six months, new figures have revealed. Research by NielsenIQ identified five new consumer groups across the UK, based on the pandemic’s economic impact on their financial security and associated spending patterns. These include the strugglers (19%), the rebounders (22%), the cautious (35%), the unchanged (16%), and the thrivers (8%).

MAY 2022 | SLR

News Extra

Legislation

NewsExtra DISPOSABLES IGNITE THE VAPING CATEGORY – P34 LEGISLATION The public gets to have its say on plans on plans to add the number of calories to menus in the out-of-home food sector.

Scottish Grocers’ Federation

Convenience Matters with the SGF Most stakeholders would agree that progress towards developing and implementing deposit return schemes across the UK has been frustratingly slow. In Scotland there has been one key reason for this lack of speed. Essentially, we have been trying to develop a scheme which encompasses both Scotland and England, and in doing so have created a border where one doesn’t currently exist. We have producers and retailers based solely in Scotland but there also significant numbers of retailers and producers operating across the UK. DRS has massive implications for costs, production line changes, ranging, fraud, stock control and warehousing. Put simply, trying to develop a scheme which includes two jurisdictions (more if we include Wales and Northern Ireland) has never been done anywhere else in the world. With this in mind perhaps it shouldn’t be such a surprise that progress has been slow. Added to this are the realities of devolution. The Scottish government does not have full control over every aspect of DRS. Most notably it has no power over labelling – again this is simply not the case with other schemes. This could have big consequences for decisions about whether or not Scotland should have a DRS logo. Almost every other scheme in the world does have a logo. We are now in a surreal situation where there will be three separate systems: glass included in Scotland, glass excluded in England, glass included in Wales but probably within a digital scheme. The big challenge for us all is to try to make this work and ensure that the different schemes meet the need of small retailers.

SLR | MAY 2022

Scottish government consults on calorie labelling regulations The 12-week consultation seeks views on how the regulations could apply to food businesses and pre-packed food. By Liz Wells

The Scottish government is asking the public to have its say on plans to add the number of calories to menus in the out-of-home food sector. Mandatory calorie labelling is part of action to address obesity, which continues to be one of the biggest and most complex public health challenges. A 12-week consultation, which sets out the broad types of food and drink that would be covered, will seek views on how this could apply to: Q food and hospitality businesses, depending on their size; Q public sector institutions such as hospitals and prisons; Q pre-packed food such as filled sandwiches; Q online takeaway menus; Q children’s menus. The consultation will inform whether legislation is introduced to make it a legal requirement for calories to be included on menus. Public Health Minister Maree Todd said: “Before the pandemic, people living in Scotland were consuming more and more food and drink out-of-home or ordering it in. Whether it’s breakfast at a roadside café, grabbing a lunchtime soup and sandwich from a local convenience store or ordering food online from a restaurant, most of us were increasingly buying food outside the home – a trend I expect to resume as we recover from the pandemic. “Two-thirds of the population living in Scotland is recorded as living with overweight or obesity

– a key factor in our plan to address this is calorie labelling. We know that giving people more information, such as the number of calories in meals will enable people to make healthier choices when eating out, or ordering in. This is not novel practice – calories are already required on retail food purchases and calorie labelling for out of home sites is mandated in many other countries. “Many food companies in Scotland have already taken this significant step voluntarily. We want to learn from those experiences, and I would urge everyone to share their thoughts in this consultation.” Food Standards Scotland Head of Nutrition Science and Policy, Dr Gillian Purdon, said: “With eating out is now an everyday occurrence and nearly a quarter of our calories coming from food and drink purchased outside of home, mandatory calorie labelling is one

way to support people to make healthier options.” Head of Policy and External Affairs at the Scottish Retail Consortium, Ewan McDonaldRussell, added: “Our members in grocery and food-to-go have led the way in providing calorie and nutritional information to consumers, over and above the action they have taken to promote healthier alternatives and reformulate products to reduce their salt, sugar and fat content. Ensuring customers of all organisations serving food understand exactly what they are consuming empowers them to make the right choices to ensure they maintain a balanced diet. “Introducing a mandatory approach to calorie labelling is therefore a reasonable proposition, provided it is implemented in a sensible manner and is applied to all businesses serving food and drink.” www.slrmag.co.uk

Comment

SPAR TRANSFORMATION HITS NEW MILESTONE It’s easy to forget what a mess Spar Scotland was in just a few short years ago. There was plenty of momentum, but it was all in the wrong direction and there was no shortage of industry observers predicting some form of collapse at the time. Notoriously introverted and, dare I say it, awkward to deal with – particularly as a trade journalist trying, for example, to get a simple answer to a simple question – the company looked like it had run out of ideas and was clearly running out of energy, and very probably money. So I’m sure that CEO Colin McLean and his new-look senior management team were only too thrilled to be able to announce the opening of CJ Lang’s first new company-owned store since 2017. He admitted as much when I spoke to him and hailed the launch of the new store and the unveiling of the new Spar Market brand as “a very big deal”. It’s certainly another milestone in the frankly unbelievable rejuvenation of the business. And McLean hopes to add another seven or eight stores in the not-too-distant future. For several years McLean has been shedding under-performing companyowned stores, although he’s shy about confirming exactly how many have been offloaded – but it was a lot. And there may be more to follow. It’s easy to see why he doesn’t want to shout about the offloaded stores but at the end of the day, it was exactly what the business needed. Many of them were loss-making and it was a brave decision to say ‘enough is enough’ and cut the dead wood out. These were tough calls to make, as was the notorious Post Office decision which generated a lot of negative PR, particularly in the mainstream consumer press. But from a business perspective, it was the right decision to make. In fact, it was probably the only decision to make if the 100-year-old business was to get itself match-fit. Fair enough, McLean’s tenure has been blessed by a perfect storm of good luck, if you can call it that. Ridiculously hot summers and the sales boom under Covid-19 ensured that his first few years at the helm were awash with positivity and sales. In a certain sense, however, this good luck masked a lot of very solid, sensible decision-making by McLean and his team. Record investment levels were announced last year – something hailed as a major coup, given the challenges of securing funding in previous years – and the business has not only gone back to basics but has also built some very solid platforms for future growth. Time will tell how the new and improved Spar Scotland performs now that things are returning to some kind of normal – but this business has completed a root and branch overhaul that will serve it very well in the massively competitive few years that lie ahead.

ANTONY BEGLEY, PUBLISHING DIRECTOR

SLR | MAY 2022

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

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Cover Story

Spar Dalbeattie

BACK IN THE MARKET

Spar Scotland has opened its first company-owned store in five years under its new ‘Spar Market’ format with a major focus on fresh. BY ANTONY BEGLEY

he last few years have seen a remarkable transformation in fortunes for the Spar Scotland brand under the stewardship of CEO Colin McLean and his muchchanged senior management team as the 102-year-old business continues to reestablish its position as the largest Scottish convenience wholesaler and retailer. The latest step on that journey sees the business open its first company-owned store in five years. Having oﬄoaded a number of underperforming stores, Spar Scotland now seems to be back in the acquisition game, this time with a much clearer focus on stores that can deliver on 14

SLR | MAY 2022

all the fronts that matter. Spar Dalbeattie in Dumfriesshire is the first store in Scotland to open under the new Spar Market format and the first new companyowned store of any description since way back in 2017. Formerly a third-generation family run convenience store trading as Kinnaird’s Nisa Local, the new Spar Market store is hailed by the company as “the first of its kind in Scotland” and marks a step-change in Spar’s fresh food and produce offering. The Dalbeattie store has a very strong focus on fresh fruit and vegetables and chilled foods,

aiming to cater for key shopping missions like ‘making a meal’ and ‘grab and eat’ - and is already making a name for itself in the Spar company-owned portfolio, as Colin McLean told SLR: “This is a very big deal for Spar Scotland and the creation of the Spar Market brand marks an important development for us. Spar Dalbeattie only opened a week ago and in its first week it became our number one store in the entire company-owned portfolio for fresh produce. That’s no mean feat considering we have 107 stores!” The new store was oﬃcially opened on Friday 22 April with an in-store launch event hosted by store manager Marie McMinn and her team. A proudly community-focused store, every member of the team that works at the store lives locally. The launch event saw customers take the opportunity to pick up free goody bags, spin the wheel to win prizes, and to sample some treats. The event also saw two local organisations – Alma McFayden Care Home and Dalbeattie Playgroup – receive donations of £1,000 each from Spar Scotland. Spar Scotland’s long-standing commitment to locally sourced products is reflected in the store’s range with many local suppliers featured at the large deli counter and in the fresh produce fixture. These include Irving’s Bakery, Mitchells of Castle Douglas, Irthingvale Wholesale, Lockerbie Cheddars and Galloway Preserves to name but a few. Spar Dalbeattie also features a CJ’s food-to-go counter for customers looking for a food onthe-go offer. The CJ’s counter offers ready-to-eat hot breakfast rolls throughout the morning and extends into the evening with a selection of hot food. This is complemented by a range from award-winning craft Scottish baker Browning’s, offering a wide selection of bakery products, morning goods and cakes. www.slrmag.co.uk

Spar Dalbeattie

A self-serve Costa Express coffee machine, Tango Ice Blast and frozen Calippo slush machine tap into the current trend for premium on-the-go drinks. Spar Scotland Company-Owned Stores Operations Director Brian Straiton commented: “We are delighted to have acquired the Kinnaird’s store. We have acquired a successful family-run business and recognise all the great work that James Kinnaird and his team have undertaken in the local community over many years. “We are very excited to be back in the property market to acquire new convenience stores as part of our business strategy of adding an additional three to four stores per year to our company-owned estate. “Spar Market is an exciting new fresh, chilled and produce store format for Spar Scotland that will really help to differentiate and grow from our traditional Spar customer offer. “As a genuinely Scottish family business we share many similar values with the Kinnaird family. We want to maintain all the great work that they have done, and build upon these, whilst adding additional Spar Scotland products and services to the store.” www.slrmag.co.uk

The store’s existing home shopping delivery service will continue and will be bolstered with the introduction of the Snappy Shopper platform and app. McLean told SLR: “Dalbeattie really showcases Spar at its best. The team did a fantastic job getting it ready and it’s flying. It’s our first new company-owned store since 2017 and it marks a new direction for us. We announced record investment levels last year and we’re in the process of refitting the company-owned store portfolio with a few stores nearing completion

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and due to come online in the next week or two, including Gatehouse of Fleet. “We’re actively looking for new companyowned stores and expect to grow the portfolio significantly over the coming year or two - but we’re looking for the right stores in the right locations. When we find them, we have the funds to invest - and we’re also heavily focused on recruiting independent stores to the Spar group too. It’s an exciting time to be part of Spar Scotland, it really is.”

MAY 2022 | SLR

News

Products

Healthy sales Walkers plans to make healthier or lower calorie products 50% of its sales by 2025, following a complete redevelopment of its entire snacks portfolio. The company will make an initial investment of £35m over the next three years to reformulate or launch new non-HFSS products, aiming for 30% of its sales to come from non-HFSS snacks. It is targeting an additional 20% of sales to come from packs of 100 calories or less.

Dr. Oetker overhaul Dr. Oetker Ristorante has unveiled a multimillion-pound refresh of its UK packaging and brand proposition. The refresh includes a redesign of its packaging, a new brand proposition that pays homage to its Italian-inspired origins and the joy of eating pizza, and a £2m marketing campaign that heralds the brand’s return to

Product News LOVE IN THE GROCERY AISLE – P44 SPORTS & ENERGY Retailers can win an Xbox prize pack to raffle

Say Halo to Lucozade’s new Xbox promo Lucozade Energy has teamed up with Xbox to give shoppers the chance to win big with a new onpack promotion landing in stores from early May. By scanning a QR code on pack, Lucozade Energy drinkers will have the chance to win a host of prizes to meet all their gaming needs – including Xbox Series S consoles, complete with Xbox Game Pass Ultimate 12-month subscriptions. And, to celebrate the Season 2 launch of Halo Infinite, shoppers can redeem exclusive in-game bonuses with every promotional bottle purchased. Convenience retailers also have the chance to win an exclusive

Xbox prize pack, including an Xbox Series S console, to raﬄe off to their shoppers. The winning retailers will receive a full toolkit to run the competition, consisting of posters, entry cards for the till, and pointof-sale materials to create a buzz in store and encourage shoppers to enter the raﬄe. To be in with a chance of winning, retailers should email SBFTrade@hanovercomms. com with their name, store name and address by 27 May 2022. The promotion will see bottles of Lucozade Energy, Orange, Original, Apple and Cherry transformed with limited-edition Halo sleeves that feature the game’s Master Chief character.

It will be live on-pack from May until August across multiple formats: 380ml (standard & PMP), 500ml, 900ml, and 4x380ml multipacks. The promo will be supported by £2m total spend, which includes out-of-home advertising, a Snapchat lens, a webpage takeover on gaming fan website Fandom and a partnership with live streaming site Twitch. Zoe Trimble, Head of Lucozade Energy at Suntory Beverage & Food GB&I, commented: “Every single bottle included in the promotion has a guaranteed prize for shoppers to redeem, so this is undoubtedly one of our biggest promotions yet.”

screens. The updated packaging has been rolled out across Ristorante’s entire pizza range.

Powered up Varta has secured a Which? Best Buy recommendation for its AA and AAA batteries. The consumer group carries out rigorous, independent testing each year on a wide range of disposable batteries, covering more than 1.5m individual data sets. The testing puts the batteries through their paces in a range of power-hungry settings. Varta’s batteries lasted longer

SOFT DRINKS

Mango Month makes comeback Barr Soft Drinks is relaunching its Mango Month, with a host of competitions, promotions and in-depot activation across wholesale, cash and carry and impulse channels. Celebrating the fresh Alphonso mango harvest hitting the shores of the UK, coinciding with mango festivals to mark their arrival, Rubicon is driving awareness and uplift during this peak sales period.

Throughout May, Rubicon will be implementing POS displays, offering giveaways, running in-depot events such as trade sampling days and much more. Adrian Troy, Marketing Director at Barr Soft Drinks, commented: “We’re encouraging wholesalers and retailers to stock up on Rubicon Mango in all pack formats and make the most of our in-depot and in-store activation tools.”

than other brands in both high and medium drain devices. SOFT DRINKS Shoppers can win £10 in new Nichols promo

Smints surge ahead Perfetti Van Melle has announced that its signpost mint brand Smint is the fastest-growing mint brand in the UK, following a bumper year of sales for its core range. The claim is based on IRI Sugar Confectionery data for the 52 weeks ending 19 February 2022. Smint is also now the largest mint brand with a 100% sugar free portfolio in the UK. The brand has plans for several new products later in the year.

SLR | MAY 2022

Vimto gives away £100k in tenners Nichols has launched the Vimto Big Cash Giveaway campaign, in a bid to build on its growth momentum in the soft drinks market, as well as encourage consumer trial and drive market penetration. The campaign gives shoppers the chance to win a share of £100,000, and runs until 28 August in independents, managed convenience and wholesale. Shoppers have the chance to win £10 with any 500ml bottle across all flavours of the Vimto Stills & Sparkling ranges via QR codes on POS and social media. The Vimto brand is now worth £103.9m, according to Neilsen data. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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Products

News

KP on the case KP Snacks is introducing product cases stamped with a newly developed non-HFSS flash. The move comes ahead of government HFSS legislation

SOFT DRINKS Bill Nye the Science Guy explains where bottles come from

Coca-Cola demystifies plastic recycling

The Coca-Cola Company is breaking down plastic recycling to demystify the process in a new animated film narrated by American engineer William Nye, better known as Bill Nye the Science Guy. The stop-motion film features an animated—and recycled—likeness of Nye who explains the end-to-end recycling process. The film takes

viewers on the circular journey of a plastic bottle, starting from the time it’s placed in a recycling bin to returning to the shelf as a 100% recycled bottle. The film was shot in Cheshire on a set made with recyclable and recycled materials. Plastic bottles, labels and cardboard were incorporated into all aspects of the production – from Nye’s puppet

CONFECTIONERY Football-themed prizes up for grabs

Shoppers set to score with latest Cadbury promo Cadbury is giving away a host of football-themed prizes as part of a new cross-brand promotion, Away Wins, which runs across chocolate, biscuits, and sugar confectionery. Kicking off on 25 April and running until 29 July, Away Wins gives shoppers a chance to win a family trip to watch a top football club on their 23/24 pre-season tour, including flights and accommodation. Alongside the star prize there is also a raft of instant-win prizes available, including thousands of Love2Shop vouchers as well as 300 away team football shirts. The on- and off-pack promotion runs across multiple products and formats within Mondelez International’s range of confectionery and biscuits. These include Cadbury Twirl Orange, Cadbury Caramilk, Maynards Bassetts Wine Gums and Cadbury Brunch Bar. Four top clubs are included in the promo: Arsenal FC, Manchester City, Manchester United and Tottenham Hotspur. To enter, shoppers buy any promotional product then visit awaywins. cadburyfc.com to enter the product’s batch code and barcode and select the club they’d want to see. Once on the site, consumers will find out whether they are a winner. Alexandra Sweeney-Lui, Brand Manager for Cadbury at Mondelez International, said: “We’d encourage retailers to make sure that they are stocked up on the wide range of products and add visibility through our impactful point of sale and secondary siting to take full advantage of the promotion in store.”

caricature made from cut-up plastic Coca-Cola bottles to trees made from green Sprite labels, to conveyor belts designed from recyclable cardboard. Bill Nye commented: “As we know, we need to reuse plastic. That’s why I’m partnering with The Coca-Cola Company to show the science behind the process of recycling and how we can continue to address the global plastic waste crisis, together.” Christine Yeager, Sustainability Director, North America Operating Unit, The Coca-Cola Company, added: “Recycling can be confusing for consumers. We need to be able to articulate, in a clear, easy-tounderstand way, how recycling helps drive a circular economy by using and reusing materials again and again.” BREAKFAST DRINKS

Weetabix On The Go brings back £1 PMPs Weetabix On The Go has brought back its £1 PMP offer by popular demand across its 250ml core range. Designed to further drive impulse purchases and bring incremental shoppers into the category, the limited-edition £1 PMP bottles are available now. Weetabix’s field sales teams have hit the road to coincide with the launch and are visiting over 1,000 convenience stores across the UK with the aim of increasing distribution of the On The Go range. Retailers will be provided with POS materials and merchandising support for their drinks’ chillers.

being introduced in October in England. The new product cases will be launched across KP Snacks’ leading non-HFSS brands including popchips, Hula Hoops Puft and KP Nuts. The Scottish Government has put its plans for similar legislation on hold for the time being.

Müller milk move Müller Milk & Ingredients has relaunched its branded liquid milk range, with a focus on health, sustainability and responsible sourcing. The new design informs consumers that the product is fresh from one of Müller’s British farms. Messaging to inform shoppers that the bottle is 100% recyclable and contains at least 30% recycled material have been added. High in protein and 100% natural claims have also been incorporated.

Wonky bars Food Standards Scotland is warning the public to be on the lookout for counterfeit ‘Wonka Bars. Some fake bars removed from sale have been found to contain allergens which weren’t listed on the label, posing a major health risk to anyone who suffers from a food allergy or intolerance. Any Wonka-branded chocolate which does not feature the official ‘Ferrero’ or ‘Ferrara Candy Company’ trademarks on the label is likely to be a fake.

Recyclable Roots Levi Roots is introducing fully recyclable clear plastic bottles for its Caribbean Crush variant, alongside updated labelling. The move from green to clear bottles is intended to aid consumer navigation. The introduction of the new packaging unifies the full Levi Roots range to offer 100% recyclable bottles, including lids. The clear plastic bottles also signpost to consumers the recyclability of the packaging.

www.slrmag.co.uk

MAY 2022 | SLR

News

Off-Trade

Lo-cal fizz Freixenet has introduced two new alcohol-free, low calorie sparkling wines. Freixenet 0.0% Low Calorie Selected Sparkling Rosé and Freixenet 0.0% Low Calorie Selected Sparkling White are presented in 75cl frosted bottles with an RSP of £6. Both are vegan-friendly and contain 19 calories per litre. As the alcohol is removed at a low temperature, the characteristics of each wine are retained, “delivering divine taste and quality with true Freixenet Mediterranean flair”.

Scottish magic Dunnet Bay Distillers has launched a new campaign for its Holy Grass Vodka. ‘Scottish Magic’ takes its inspiration from the Northern Lights, which can be seen from the distillery’s home in Caithness. The campaign reveals how Holy Grass Vodka “unexpectedly delights and surprises the taste buds with every ingredient being

Off-TradeNews BACK TO BASICS WITH CIGARS – P46 RTDs WKD enters ‘enhanced RTD’ category

New WKD launch offers something X-tra RTD brand WKD is set to launch an alcoholic drink containing caffeine, guarana and taurine. WKD X (ABV 7%) will be available from May in 500ml single cans in two flavour variants: WKD X Blue and WKD X Gold. Both plain and £3.29 PMPs will be offered in trade cases of 12 x 500ml single cans. With energy drinks currently the fastest-growing segment of the soft drinks category and consumption skewed to the 18-to-30 age group, brand owner SHS Drinks said: “WKD is perfectly placed to bring

a UK-wide brand which is both highly regarded and substantially supported to the ‘enhanced RTD’ category.” Enhanced RTDs currently generate £24m in UK sales and have grown 90% over the last two years. The launch will be supported by a high-profile communications campaign to build consumer awareness of WKD X through social media, extensive influencer and PR activity. Alison Gray, Head of Brand for WKD at SHS Drinks, commented:

“WKD X is where the WKD brand meets the lust for life; it’s an energetic fusion of the best of both. Consumers are already well versed in mixing alcoholic drinks with energy drinks – what WKD X delivers is the convenience of a pre-mixed format from a longestablished and highly respected brand that consumers know and love. For depot managers and retailers in Scotland keen to focus on where incremental RTD category growth and marketing support will stem from, WKD X marks the spot.”

‘infused with Scottish magic’.” PERRY

Sober Brummie Birmingham Brewing Company

Denise Van Outen brings the Brini

has launched a new low-alcohol beer, the Sober Brummie. Triple-hopped with notes of citrus and a mild bitter aftertaste, the brew has an ABV of 0.5% and is gluten-free and veganfriendly. The result of four years of experimentation, it recently won the National Gold Award at the Society of Independent Brewers awards. It retails at £10 for a pack of four cans. Visit birminghambrewingcompany. co.uk/trade for stock enquiries.

Fruity gins Whitley Neill has announced that it is further expanding its range of award-winning gins with the launch of new Pineapple and Peach variants. Whitley Neill Pineapple Gin is distilled with a focus on the zesty sweetness of Costa Rican Pineapples, while Whitley Neill Peach Gin takes inspiration from South African peaches. Both are available in a

Lambrini has unveiled its latest ‘Bring the Brini’ campaign in partnership with Denise Van Outen – the perry brand’s first big activation since it was acquired by Accolade Wines in June 2021. The ‘Bring the Brini’ social campaign encourages consumers to enhance everyday moments with an extra sense of celebration and fun, whether it’s successfully getting the kids to bed or meeting with friends on a Friday night. The partnership sees Lambrini and Van Outen inspire ‘Bring the Brini’ moments amongst consumers via lifestyle imagery and videos shared on their social channels. The content features Lambrini’s core consumption occasions of relaxation and partying.

RTDs

Bacardi rolls out premixed cocktails Bacardi has launched its Tails ready-mixed cocktail brand, which was originally created for the hospitality industry, into the offtrade. The range includes five cocktails: the ‘Rum Daiquiri’ made with Bacardi rum; the ‘Whisky Sour’ with Dewar’s Blended Scotch whisky; the ‘Gin Gimlet’ with Bombay Sapphire gin; and the ‘Espresso Martini Cocktail’ and ‘Passion Fruit Martini Cocktail’, both made with 42Below vodka. A QR code on every 50cl bottle links to a 30 second ‘how to’ video which explains the three simple serving steps, along with garnish suggestions, for each cocktail. The launch is supported by a digital-first marketing campaign focused on building awareness and driving trial of the new range.

70cl format, with an ABV of 43% and RSP of £26.

SLR | MAY 2022

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

www.slrmag.co.uk

Off-Trade

News

Alcohol-free Hardys Hardys has launched Hardys Zero, a new non-alcoholic wine range that utilises new dealcoholising technology which is claimed to result in lower sugar

BEER A new way to enjoy stout

Guinness launches Cold Brew Coffee Beer

and superior taste compared to

Guinness has added Guinness Cold Brew Coffee Beer (4% ABV) to its portfolio. The new drink is rolling out in packs of 4 x 440ml cans with an RSP of £5.50 across the off-trade throughout April, May and June. With the launch, the brand seeks to give existing Guinness drinkers new ways to enjoy the stout, while also recruiting new adult drinkers. The new product is being supported by marketing spend in its first year which includes social media, influencer and advocacy activity. Guinness Cold Brew Coffee Beer is made by adding cold brew coffee – coffee which has been steeped in cool water for long periods of time instead of brewed with boiling water – to Guinness Draught,

three classic varieties: Shiraz,

alongside additional roasted barley flavours. It contains 2mg of caffeine per can, the same as a decaf coffee. John Burns, Head of Guinness GB, said: “We are delighted to

BEER Carlsberg Marston gives world lager drinkers something new

Brooklyn bridges pilsner gap

Brooklyn Brewery, part of the Carlsberg Marston’s Brewing Company portfolio, is extending its reach into the premium world category with the launch of Brooklyn Pilsner. Brooklyn Pilsner (4.6% ABV) is a pale golden lager that offers light toasty flavours and spicy, subtle citrus hop notes. Following its on-trade launch in March, Brooklyn Pilsner will be available from September in single 660ml bottles (RSP £1.90) and 12x330ml multipacks (RSP £14). The launch is supported with a multi-million-pound national marketing campaign, including out-of-home, videoon-demand and digital advertising as well as experiential, PR, social media and shopper marketing activity. John Clements, VP of Marketing at Carlsberg Marston said world lager drinkers were thirsting for something new: “Within the premium world category, only 32% of UK consumers are happy with the selection on offer and 76% would consider a new beer brand. We know they’re looking for something flavourful, but also accessible with 55% most likely to try a pilsner. There’s a clear opportunity here to reinvigorate the category with a new great-tasting premium option.”

launch Guinness Cold Brew Coffee Beer in Great Britain, complementing traditional notes of Guinness Draught with a refreshingly modern new flavour to delight Guinness fans, and introduce our iconic beer to prospective new fans. “We firmly believe we have created a taste experience truly unrivalled in the market and with over 95 million cups of coffee being consumed every day in Great Britain alone, now is the moment to offer a product which plays to an excitingly vast consumer space. There is already a natural connection with coffee notes in Guinness’ signature offerings like Draught and Extra Stout, so the creation of Guinness Cold Brew Coffee Beer was a perfect match.”

LO/NO ALCOHOL

Gordon’s unveils Premium Pink 0.0% Gordon’s has launched Gordon’s Premium Pink 0.0% Alcohol Free Spirit. The latest alcohol-free product from the brand is available now in a 70cl bottle with an RSP of £15. The launch looks to capitalise on growing momentum seen in the nonalcoholic category as people continue to seek more options during more occasions. It forms part of the brand’s innovation strategy and follows several new product launches across both the non-alcoholic and gin categories – including Gordon’s 0.0% as well as Gordon’s Premium Pink Distilled Gin. The new vibrant pink liquid balances sweet flavours of raspberry and strawberry, blended with tangy redcurrant and distilled botanicals. It provides a nonalcoholic option that includes the signature taste of Gordon’s Premium Pink Distilled Gin, just without the alcohol.

competitors. It will be available from June with a £5.50 RSP in Chardonnay and Sparkling. Hardys is supporting the launch with a through-the-line marketing campaign that includes digital and in-store activity.

When given lemons… Bombay Sapphire has launched new Bombay Citron Pressé (70cl, ABV 37.5%, RSP £23), a distilled gin that captures the taste of freshly squeezed Mediterranean lemons balanced with the juniper notes of the brand’s signature London Dry Gin. The launch is supported by a comprehensive marketing campaign, comprising of PR, out-of-home advertising, in-store POS and in-bar activations, alongside social, digital and influencer activity.

Sunshine wine Lindeman’s ‘Step into the Sunshine’ campaign will return this summer to drive awareness of the brand’s recent Carbon Neutral certification. The 2022 campaign will include sponsorship of Channel 5’s ‘Spring Time on the Farm,’ and a partnership with climate action organisation, Ecologi, in the form of an on-pack promotion running from 1 July to 31 August that will give shoppers the opportunity to offset their own carbon footprint.

Famous One is online only The Famous Grouse has unveiled The Famous One, a new blend of grain and malt whiskies with a softer, sweeter, flavour profile. Unfortunately for retailers keen to capitalise on a new launch from Scotland’s bestselling whisky, it is only being sold online for an initial period – a first for the brand. The Famous One retails at £23 for a 70cl bottle and is available – for now – from Amazon.

www.slrmag.co.uk

MAY 2022 | SLR

Inside Business

2 Minutes | Dael Links, Snappy Shopper

DAEL LINKS Snappy Shopper’s Dael Links shares his thoughts on the size of the home delivery opportunity for convenience retailers and his top tips to help them achieve delivered success.

to capitalise, and this prolonged period of heightened demand will leave a legacy impact, with the market expected to be £4.9bn bigger in 2025 than our pre-pandemic expectations.

HOW HAS THE EASING OF COVID RESTRICTIONS AFFECTED HOME DELIVERY?

TO GET THINGS STARTED, CAN YOU TELL US A LITTLE BIT ABOUT YOURSELF AND YOUR ROLE AT SNAPPY SHOPPER? Sure. I joined in May of last year as the Head of B2B Marketing. Prior to taking the role, I followed Snappy’s journey from inception and became really excited about aligning with forward thinking people – internally and externally. The role covers so many different aspects across the business, but my team’s main focus is to acquire new retailers and to then engage them to produce the results we know they can deliver via Snappy Shopper.

HOW BIG IS THE HOME DELIVERY OPPORTUNITY FOR LOCAL RETAILERS? Huge! The obvious impact of this uptick in consumer engagement in the online channel has been a rapid acceleration in sales, with all online grocery sales growing by 75.2% in 2020 to reach £22.3bn and account for a record 11.4% of all grocery sales. The January 2021 lockdown and slow roadmap out of the peak of the pandemic will give further opportunities for the online channel 20

SLR | MAY 2022

In short, it hasn’t. Covid brought about a trend that will remain as restrictions completely ease. Post lockdown, the demand for home delivery and the desire to shop locally is greater than ever, but we believe the increasing number of anonymous dark stores is a threat to the local high street and convenience stores in particular. Snappy Shopper’s mission is to ensure that retailers are educated about the benefits of an online presence and how to grow their customer base by developing an omnichannel business, using its technology.

WHAT ARE THE SECRETS TO HOME DELIVERY SUCCESS? We see consistent trends across the platform so there is a recipe for success. Firstly, a retailer’s menu and range is so important. We strongly advise a great product range and to minimise substitutions, but if you do come across the need to, always advise the customer before delivery. Making your menu attractive is a vital pillar. Another key area to success is making each delivery count; we encourage retailers to always deliver on time and to use that delivery to build rapport. Range and delivery are two operational points that we see successful retailers get right time and time again. From a marketing perspective it’s all about strong and powerful branding inside and outside the shop – you’ve got to be visual! In addition to that, we see the

successful retailers working social media to their advantage – posting regular content that’s relevant to the local community.

HOW HAS SNAPPY SHOPPER DEVELOPED OVER THE LAST FEW YEARS? Exponentially and it’s evident when you take the numbers in to consideration. Between December 2020 and December 2021, the number of stores partnered with Snappy increased by 88% and the headcount at Snappy Shopper increased by 314%. Numbers aside, our product keeps on developing but our mission remains the same; empower local retailers to compete effectively in this fast-growing home delivery market by enabling them to offer a great delivery service in their community. The product is based on genuine partnerships with retailers and the principle of mutual benefit. It therefore evolves to suit their needs thus ensuring retail partners have access to industryleading technology every step of the way. It is this flexibility, commitment to service, and also commission structure, that differentiates us from the competition.

WHAT WOULD YOU SAY TO RETAILERS WHO ARE CONSIDERING LAUNCHING A HOME DELIVERY SERVICE FOR THE FIRST TIME? Do it! Simply, retailers cannot ignore their customer’s demands and the increasing trend for online shopping. Public opinion aside, being able to add incremental sales to your turnover with little additional overhead makes complete business sense – the average sales of the top 20 stores in the 12 months to June 2021 is in excess of £500,000. www.slrmag.co.uk

Inside Business

Research | 56 Degree Insight

SHELF STAND-OUT – WHAT CAN MAKE THE DIFFERENCE? Growing demand for locally produced food and drink provides opportunities for convenience stores to attract new customers and increase spend – but what will make these products stand out on the shelf? BY JIM ECCLESTON

ltimately, many food and drink purchasing decisions are made in the store when the products are on display in front of the consumer. So, what drives these purchasing decisions beyond the obvious role of price? We all know that environmental concerns and climate change are playing an increasingly important role: stores which offer plastic-free fruit and vegetables and paper bags instead of plastic stand to benefit: our survey of Scots consumers conducted last year showed that 66% will choose products which are plastic-free and recyclable. And it goes beyond recyclable packaging – if retailers let their customers know about their own sustainable practices and waste reduction, they will see benefits, with 65% saying they would be more likely to shop in this type of store. And of course, linked to sustainability is provenance – knowing where your food and drink comes from and how it is produced is increasingly important. Our recent survey showed that 61% of Scots factor this in as part of their buying decision. This is often where telling the story of the product and the brand can be extremely effective – either by the producer on the packaging/label itself, or by the retailer as a special display. Storytelling appeals greatly to the consumer – and can often make the difference between buying a product with an interesting back story that links to the area as opposed to one of the more established brands. The

notion of local stores working in partnership with local producers has massive consumer appeal. For producers, obviously the labelling/packaging plays an important role in selling the product. As well as reassuring consumers on factors such as sustainability and provenance, other elements of the labelling and package design can make a difference in consumers’ product choices: Q The ingredients being displayed very clearly on the label or packaging is probably the most important factor of all (70%); Q The overall design and the degree of ‘stand out’ of the product and label design should never be underestimated – 45% of Scots saying this is an important element of their product purchase choice; Q Accreditations and awards also play a role in attracting consumers. And, as retailers, where some of these elements are perhaps not to the fore, you should feed back to the producers with your own thoughts on how some small changes could improve sales. Convenience store managers are at the sharp end and see and hear what their customers are looking for; local producers will welcome your input. In short, local retailers working closely with local producers to optimise the shelf stand out of products is a ‘win-win’ for everybody – not least your customers, who will be more tempted to buy some great local products that might otherwise pass them by.

JIM ECCLESTON IS MANAGING PARTNER OF EDINBURGH-BASED RESEARCH AND INSIGHT SPECIALISTS 56 DEGREE INSIGHT, THE OFFICIAL RESEARCH PARTNERS OF THE SCOTTISH RETAIL FOOD & DRINK AWARDS.

SLR | MAY 2022

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Live music EVENT A musical celebration for grocery and convenience colleagues

TICKETS £

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SPONSORSHIP AVAILABLE For more information visit groceryaid.org.uk/events/checkout-scotland or contact peter.steel@groceryaid.org.uk

BOOK NOW

Money raised from this event will go to GroceryAid, the grocery industry charity A Registered Charity Reg No. 1095897 (England & Wales) & SC039255 (Scotland). A company limited by guarantee. Registered in England & Wales No 04620683

Checkout Scotland Event

Inside Business

CHECKOUT SCOTLAND HEADS TO BAaD! GroceryAid Scotland has confirmed the spectactular Barras Art & Design (BAaD) as the venue for its inaugural music-based celebration of the convenience and grocery retailing sectors. SPONSORS Q Q Q Q Q Q Q Q Q Q

Irn-Bru – Headline Sponsor Tennent’s Brewdog Mars Snappy Shopper Ian Macleod Distillers Bobby’s Foods Highland Spring Eldorado CJ Lang

Sponsorships are available via peter.steel@groceryaid.org.uk

1 September BAaD, Glasgow

Tickets only £60

roceryAid Scotland has announced the venue for its inaugural Checkout Scotland event with the unique musical celebration of the Scottish retailing industry set to be held in Barras Art & Design (BAaD) in Glasgow on 1 September. On course to be the largest event in the Scottish local retailing sector this year, Checkout Scotland will be a fantastic opportunity for the trade to gather and recognise their colleagues’ efforts during the Covid crisis while supporting GroceryAid, our industry charity. The event will see upwards of 700 convenience and grocery industry colleagues gather for a day of live music, DJs, food and fun with an array of

big names and exceptionally talented artists due to be announced in the coming weeks. The organisers can already confirm, however, that well known Scottish TV and radio presenter Jennifer Reoch will be hosting the event. Also joining the line-up are Clyde 1’s Breakfast Show presenters George Bowie and Cassi, ensuring a full dance floor as they drop the latest tunes. Checkout Scotland will have exclusive access to BAaD which features several spaces which are ideal for a major event of this kind, including a large indoor area for the main stage, a first floor VIP area and large covered exterior space as well as several bars and kitchens. Checkout Scotland will celebrate an industry that has shone during the pandemic, serving

communities across the country with passion and energy. Critically, the event will also help raise awareness of the GroceryAid charity and the life-changing work it does for industry colleagues in need of a little help. Producers and suppliers have already been exceptionally supportive, with AG Barr already confirmed as Headline Sponsor and Tennent’s signed up as Main Bar Sponsor. Several other major sponsors have also confirmed including BrewDog, Snappy Shopper, Mars, Highland Spring, Bobby’s Foods, Eldorado, Ian Macleod Distillers and Spar Scotland. Many of the available tickets have already been sold – so if you want to join us for an outstanding day, book your tickets now!

BOOK TICKETS AT: GROCERYAID.ORG.UK/EVENTS/CHECKOUT-SCOTLAND www.slrmag.co.uk

MAY 2022 | SLR

Inside Business

MAG Charity Bike Ride

RETAIL TEAM GET ON THEIR BIKES AGAINST BOMBS A team of 24 grocery, wholesale and convenience industry colleagues, including SLR’s Antony Begley and Helen Lyons, are set to cycle 300km in Bosnia to raise funds for landmine charity MAG.

rom 10 to 15 June 2022, 24 intrepid grocery, wholesale, convenience and on-trade experts will cycle across the western Balkans in just four days. Among the cyclists will be SLR Publisher Antony Begley and Sales & Marketing Director Helen Lyons. Starting in Dubrovnik, southern Croatia and finishing in Sarajevo, the capital of Bosnia and Herzegovina, the team will be crossing 300km of hilly terrain in a country which is still heavily contaminated with landmines. This year’s Bikes Against Bombs fundraising challenge raises money and awareness for the Manchester-based landmine clearance charity Mines Advisory Group (MAG). Since 2015, over 90 senior leaders and executives from across the industry have taken on incredible cycle challenges for MAG. The Bike Bosnia challenge is the sixth overseas ride and will be powered by leading healthy snacking brand Graze. The fundraising challenge is the brainchild of Neil Turton, MD of Sugro, and Tom Fender, Development Director of TWC. Over 90 people from the sector have cycled across Vietnam, Cambodia, Sri Lanka and Laos. In 2021 the team also completed seven rides across seven UK cities. Sarah Tavener, Head of Philanthropy at MAG, commented: “Bikes Against Bombs has been an outstanding industry initiative which

has already helped generate an extraordinary £730,000 for MAG. The continued support of the convenience and wholesale sector is hugely appreciated, and every pound of support we receive really does make a significant difference.” Key sponsors of the challenge include The Wholesale Company, IT Retail Systems, and Kwickeshopper. Antony Begley added: “With war in Europe very much at the forefront of everyone’s minds, it’s clear to all of us the devastating impact that it can and does have on innocent civilians. “While our thoughts are all with Ukraine, it wasn’t so very long ago that eastern Europe was torn apart by another conflict and, unfortunately, the legacy of the war that marked the break-up of the former Yugoslavia is still affecting innocent people today in the form of landmines. “That’s why we will be cycling hundreds of kilometres across Bosnia in June, most of it uphill. We will be raising much-needed money for MAG that will help reclaim vast tracts of land that are still unusable all these years later – and remain mortally dangerous for men, women and children.” Visit bikesagainstbombs.co.uk/news to find out more.

THE TEAM Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q

Clare Bocking Mital Morar Matt Goddard Patrick Sewell Debbie Robinson Tom Gittins Neil Turton Tanya Pepin Tom Fender Helen Lyons Antony Begley Kirsty Cooper Gemma Newton Jo Murray Louise Monkman Elliot Sleath Andrew Pheasant Stephanie Green Amy Searle Simon Robinson David Visick Josh Williams Steven Joyce

IF YOU CAN SUPPORT HELEN OR ANTONY AND HELP SAVE INNOCENT LIVES, PLEASE DO: HELEN – JUSTGIVING.COM/FUNDRAISING/HELEN-LYONS6 ANTONY – JUSTGIVING.COM/FUNDRAISING/ANTONY-BEGLEY3

SLR | MAY 2022

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Inside Business

Spar Scotland Tradeshow

ALL ROADS LEAD TO AVIEMORE

Spar Scotland has confirmed that more than 150 suppliers have already signed up for its annual tradeshow in Aviemore in September.

T 700+

delegates

150

suppliers

22 September 2022, Aviemore

SLR | MAY 2022

he momentum is building for the return of Spar Scotland’s annual tradeshow in Aviemore this September as the wholesaler and retailer prepares to welcome over 700 delegates to its first face-to-face show in more than two years. Spar Scotland expects the event to be one of the biggest local retailing events to take place in Scotland this year. The company has confirmed that over 150 suppliers have already signed up from every category including Coca Cola, Hovis, Graham’s the Family Dairy and AG Barr. Walkers has also been confirmed as headline sponsor. Many suppliers will be bringing NPD and Christmas and seasonal products to the tradeshow. Take-up from independent retailers has been exceptionally high and Spar Scotland have also invited a number of other influencers and key bodies including Scotland Food & Drink, Invest NI, the Scottish Wholesale Association, the trade press and charities including GroceryAid and Marie Curie. Government Minister Mairi Gouegon has also confirmed her attendance at the tradeshow in the afternoon. It won’t be all work though. Spar Scotland says it has “a huge amount planned both in terms of during the day and into the evening – a food safari and a marquee dance!” Taking place in Aviemore and the Cairngorms National Park, the event will be held at the MacDonald Hotel and Resort on Thursday 22 September 2022. The tradeshow runs from 10.30am until 4.00pm.

Before the tradeshow opens, Spar Scotland will host three separate business updates in the morning for suppliers, independent retailers and company-owned stores and associated staff. The updates will be given by CEO Colin McLean and a team of Directors. These will focus on the company’s ongoing transformation journey including the implementation of its major company-owned store refurbishment programme and its recruitment drive across both company-owned stores and its independent estate. As part of the show, the Spar Scotland Awards have been launched with four categories: companyowned store of the year, independent store of the year, company-owned community store of the year and independent community store of the year. Colin McLean, Spar Scotland CEO, said: “Our 2022 tradeshow will be a great opportunity to engage once again with a live audience. We will have over 150 national and Scottish suppliers turn their stands into exciting showcases for their products. By taking part in our tradeshow, our suppliers will be able to bring their innovative products to the attention of the largest group of independent retailers to visit a tradeshow in Scotland. “We are looking forward to welcoming our estate of independent Spar retailers and company-owned staff, key personnel from Spar Scotland, Spar UK and Spar International, to what promises to be a sell-out event.” For details on how to attend please call CJ Lang on 01382 512000 and speak to the Spar Scotland Tradeshow team. www.slrmag.co.uk

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Inside Business

Age-Restricted Sales

LOTTERY RETAILERS PASS FIRST ‘OPERATION 18’ VISITS A new Lottery test purchasing campaign was introduced in April following the change to the minimum age to play. BY LIZ WELLS

amelot had revealed that 90% of National Lottery retailers visited correctly asked for ID as proof of age on their first ‘Operation 18’ mystery shopping visit – rising to 95% for second visits. These visits replaced the previous ‘Operation Child’ visits – which had been running for two decades – following the change to the minimum age to play The National Lottery from 16 to 18, which came into force in April 2021. These results come alongside interim findings from a recent player survey that looks at the effectiveness of a relatively new feature on the National Lottery terminals in retail, which allows retailers to print and discreetly give healthy play handouts to players by pressing the ‘Responsible Play’ button on their terminal. If a retailer is concerned about a customer’s playing habits or if a customer asks a retailer for support, the button allows retailers to subtly print a pink ticket with details of where support is available. The initial survey findings show that 72% of National Lottery players who received the handout felt positive about it, and that two in five players are going to think about their play after seeing the handout. Camelot’s Retail Strategy Manager, Guy Goodacre, said: “With the age to play change from 16 to 18 in April last year, this has been a critical year for The National Lottery – and we can’t thank our retail partners enough for their hard work and dedication every step of the way. From updating all of their in-store POS and reminding customers in the lead-up to the change last year, to showing their ongoing commitment to preventing underage play through these fantastic ‘Operation 18’ results – it’s plain to see that our retail partners are totally committed to responsible retailing.” 30

SLR | MAY 2022

“It’s plain to see that our retail partners are totally committed to responsible retailing.” GUY GOODACRE, CAMELOT RETAIL STRATEGY MANAGER

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enquiries@goldencasket.co.uk www.millionssweets.co.uk

Hotlines

Product News & Media Watch

Flavour Kravers KP Snacks KP Flavour Kravers is a brand-new flavour platform within the KP peanut range that looks to capitalise on taste, the number one CSN category driver. It launches in three flavours: Flame Grilled Steak, Smokin’ Paprika, and Fiery Caribbean Jerk Sauce. Available in 140g sharing packs with an RSP of £2.50, the new range is back by a £150,000 campaign that encourages consumers to “awaken their inner Flavour Kraver”.

Meat-Free CumberlandStyle Sausage Birds Eye Birds Eye has revamped its Green Cuisine Meat-Free Sausages to create a new Meat-Free Cumberland-Style Sausage. The new banger dials up the sausage’s taste credentials and savoury notes. It also has a new casing, to create a firmer bite and lock in juiciness. The new look sausage is accompanied by updated recyclable packaging. The 330g product has an RSP of £2.50.

Carr’s Melts Italian Herbs pladis Pladis has added a new Italian Herbs flavour to its growing Carr’s Melts range of wheaten biscuits, available in 150g boxes with an RSP of £1.59. The launch taps into the popularity of Italian flavours and cuisine. The new product will be supported under Carr’s £2.5m Crack On marketing campaign, which will comprise activity across social, PR, sampling and summer experiential events.

SLR | MAY 2022

Next-gen Juul2 system rolls out to stores Juul Labs has launched its new Juul2 system into retail following six months of e-commerce trials. Rolling out to all channels now, the nextgeneration system features an array of updates, including newly designed Juul2 pods with 70% more e-liquid per pod. The system also offers a “more consistent vapour experience,” that Juul says better competes with combustible cigarettes. It also features a larger battery with over 20% more capacity than the original Juul. Designed with “adult smokers in mind” the new Juul2 pods are available in six menthol and tobacco flavours including: Virginia Tobacco, Polar Menthol, Crisp Menthol, Ruby Menthol and Summer Menthol, plus a newly launched Autumn Tobacco, which features “tangy orchard harvest notes.” Each pod, which is only compatible with the new Juul2 device, has an 18 mg/ml nicotine strength. The device is also supported by a new Juul2 app which gives users insights into their usage and allows them to keep track of their device and locate it if lost. In a bid to combat the illicit trade and underage use, the new device and app also automatically check and confirm product authenticity when new Juul2 pods are added. Juul Labs’ EMEA VP, Dan Thomson, said: “We have been encouraged by the number of existing Juul users who have transitioned to the new system since launching on our UK website and we look

Weetabix x Golden Syrup Weetabix Weetabix has teamed up with Lyle’s Golden Syrup to launch a new, HFSS-compliant cereal. Available from 24 May with an RSP of £3.29 (24 biscuit pack), the new product aims to tap into an ongoing demand for tasty, yet nutritious cereals. It is high in fibre, low in fat and salt, and uses 100% British wholegrain wheat. The launch will be backed with social media and influencer amplification, shopper activity and digital video ads, as part of a £250,000 marketing investment.

forward to providing even more adult smokers with an alternative to combustible cigarettes.” The company is also trialling a take-back and recycling programme for used pods and devices, which it hopes to roll out later this year. Starter kits, which include a device, charging dock, Virginia Tobacco and Crisp Menthol Juul2 pods will launch with an RSP of £9.99, while new Juul2 pod packs will launch at £6.99.

Coca-Cola Intergalactic CCEP GB This space-inspired limited-edition has zero sugar, a reddish hue, and comes in a 250ml can with a 77p RSP. The launch is the first under Coca-Cola Creations, a new platform that sees the brand collaborate to create new flavours, designs, and experiences. Consumers can access the world’s first ‘Concert on a Coca-Cola’, featuring Ava Max, via an on-pack QR code.

McVitie’s Rich Tea Delights pladis This new variant is a lighter version of one of McVitie’s bestselling biscuits, the classic Rich Tea. It includes 30% less sugar than a typical semi-sweet biscuit and offers 38 calories per biscuit. The reducedsugar recipe does not include any artificial sweeteners. Bold flashes on the front of packs champion the McVitie’s brand and highlight the product’s health benefits. It is available now in 300g packs with an RSP of £1.59.

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Feature

Vaping

CLOSING THE DEAL

Convenient closed pod and disposable devices continue to ignite the UK’s growing vape sector. BY GAELLE WALKER

SLR | MAY 2022

ales momentum in the UK’s dynamic vape sector appears to have had something of a jump-start in recent months, with retailers across the country reporting noteworthy sales boosts since December 2021. In-fact, IRI year-on-year data for the 12 weeks to 26 December 2021 reveals that e-cigarettes, together with oral nicotine, worked to offset a £46m year-on-year decline in the factory-made cigarette (FMC) sector – with a combined sales increase of £48m. E-cigarettes contributed over 92% of this growth (£44.5m) with an additional 6.6 million e-cigarette units sold over the period – a hike which helped the sector to post growth of 54% in value and 39% volume.

Fuelling this rise were closed pod and disposable devices, which, thanks to their ultraconvenient, easy to use, yet effective formats, are continuing to draw ex-smokers in at greater and greater levels. And, thanks to recent product upgrades and the increasingly wide range of innovative new flavours, that demand looks well set to continue climbing well into 2022 and beyond. The recent vaping awareness month of VApril, which after two years as an online only event returned with a bang for 2022, will also undoubtedly have provided the sector with a further boost – helping smokers quit tobacco with the aid of a vape device. Relx International senior trade marketing manager Micaela Sangiovanni says: “The www.slrmag.co.uk

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Feature

Vaping

TOP TIPS

Imperial Tobacco UK consumer marketing Tom Gully shares his advice to help retailers grow their vape sales: Q Education: Given the varied experience of shoppers in the vape category, it is really important for retailers to be equipped to offer advice that can be tailored to each customer. It’s essential staff know what products are stocked and where they are on the gantry, so they easily find them. This is especially key for best-selling lines so they can always keep an eye on stock levels. This should also be a focus for any liquids or accessories, so they know to upsell where possible. Q Spot the signs: Look out for shoppers who may be too shy or feel uncomfortable asking for help. It might be that they simply glance at the vape display or PoS on offer, or perhaps ask for a brand that you don’t stock and are about to walk away. Encouraging staff to proactively engage with these shoppers and offer to help them will put them at ease. Q Feel familiar: Allowing staff to handle the products and get to know the different components using demonstration models, or sample liquids, will help them understand more about how they work, so they can pass this information onto customers. Using similar demonstration models can also be a great way to educate customers on the devices before they buy. Q Liquid lines: The range of devices on offer should always be supported with a strong portfolio of e-liquids. These tend to fall into four main flavour categories, including fresh, fruity, earthy and sweet, so we’d recommend stocking a range that covers all of these profiles. The range should also include a variety of nicotine strengths, including nicsalts to cater for all tastes. Q Next up: Keep one eye on the emerging trends in next generation nicotine products and be prepared to adapt your range. Consider making room for a small sample of new products to assess shopper interest prior to investing heavily. 38

SLR | MAY 2022

category has seen significant increase in demand from existing adult smokers and vapers, who are looking for convenience, quick in-store transactions with little guidance from a salesperson and easy to operate vaping systems. “As demand for convenience continues to grow as a key shopper trend when selecting a next-gen nicotine device, we suspect closed and disposable pod vapes will continue to grow in popularity and gain traction at the expense of their opensystem counterpart.” One retailer who is certainly reporting an uptick in sales of closed pod and in particular disposable devices, is Saleem Sadiq, of Spar Renfrew in Glasgow. “I never believed vape would take off and come anything close to tobacco volumes but I’ve been proved wrong,” he says.

“As a category vape has suddenly really pushed the boundaries and is now a key footfall driver. “Every store is different, and in ours, convenient and easy to use disposable and closed pod devices are by far the biggest sellers. “In the last few months, ultra-convenient disposable devices have in-fact outstripped sales of closed pod devices, while refillable devices and e-liquids have almost died a death and we’ve cut back almost completely on those. “Adult vapers are definitely more drawn to the convenience of the disposable and closed pod formats, which thanks to recent innovations are now performing better than ever and far more closely replicating the experience of smoking a tobacco cigarette.”

RETAILER VIEW SALEEM SADIQ, SPAR RENFREW “In our store, convenient and easy to use disposable and closed pod devices are by far the biggest sellers. In the last few months, ultra-convenient disposable devices have in fact outstripped sales of closed pod devices, while refillable products and e-liquids have almost died a death and we’ve cut back almost completely on those. “When it comes to disposables, we stock a range of brands, but Elf Bar and Geek Bar are by far our biggest sellers. “The category just sells itself, shoppers come into our store knowing exactly what brands and flavours they want. “That’s not to say we don’t have to put any work into it though, good merchandising principles such as keeping a close eye on stock levels and display are key to keep the offer looking as good as possible. The range of flavours now on offer is unbelievable; we stock well over 50 different flavours and the juicy, fruit ones are by far the best sellers. “All vape products are merchandised within a dedicated vape gantry behind our counter as well as on an array of counter-top display units.”

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Vaping

SUPPLIER Q&A

CJ LANG & SON/SPAR SCOTLAND SENIOR TRADING MANAGER MARK SPALDING HOW IS THE VAPE MARKET CURRENTLY PERFORMING FOR CJ LANG? We have seen the vape category grow significantly over the past two years, bolstered by the effects of lockdowns which led to many more customers shopping locally. Sales have continued to grow year-on-year, despite the fact that we are lapping last year’s severe restrictions, with vape outperforming tobacco sales as more consumers move away from traditional factory-made cigarettes. WHAT KEY TRENDS ARE DRIVING VAPE SALES? E-liquid and closed system refills/pods dominate sales, between them accounting for around 75-80% of total category sales. Disposable devices have seen a sharp rise in demand over the past months with a number of new

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disposable brands such as Geek, Elf Bar and Dot Go having entered the market. In recent years, major technological advances within vape by manufacturers have made disposables much more dependable and functional. They are also very convenient and affordable, making them the ideal entry point for consumers wishing to move away from traditional cigarettes and try vaping for the first time. WHAT OTHER GOOD NEWS DO YOU HAVE FOR RETAILERS ABOUT VAPE? The category will continue to grow as more tobacco smokers move into vape, seeing it as a ‘healthier’ and more affordable alternative. This, in turn, will see vape take an increasingly bigger share of the overall tobacco category, increasing overall category margin as a result.

Feature

When it comes to product innovations, the Juul brand most certainly deserves a mention following the launch of its nextgeneration Juul2 system into retail on 18 April. The upgraded system, which underwent six months of successful e-commerce trials prior to launch, features an array of updates including newly designed Juul2 pods, with 70% more e-liquid per pod. The system also offers a “more consistent vapour experience,” that it says better competes with combustible cigarettes. It also features a larger battery with over 20% more capacity than the original Juul. Designed with “adult smokers in mind” the new Juul2 pods are available in six menthol and tobacco flavours including: MAY 2022 | SLR

Feature

Vaping

Virginia Tobacco, Polar Menthol, Crisp Menthol, Ruby Menthol and Summer Menthol, plus a newly launched Autumn Tobacco, which features “tangy orchard harvest notes”. Each 18 mg/ml nicotine strength pod is only compatible with the new Juul2 device. The device is also supported by a new Juul2 app which gives users insights into their usage and allows them to keep track of their device and locate it if lost. In a bid to combat the illicit trade and underage use, the Juul2 and app also automatically check and confirm product authenticity when new Juul2 pods are added. Commenting on the roll-out, Juul Labs’ EMEA VP Dan Thomson said: “Following a successful online pilot launch, we are pleased to release the next-generation Juul2 for sale nationwide through our retail partners in the UK.” “We have been encouraged by the number of existing Juul users who have transitioned to the new system since launching on our UK website and we look forward to providing even more adult smokers with an alternative to combustible cigarettes.

“It’s critically important that alternatives can continue to compete with cigarettes, especially when it comes to the point of purchase, and with Juul2, we believe we are taking another step in that direction.” Starter Kits, which include a Device, Charging Dock, Virginia Tobacco and Crisp Menthol Juul2 pods will launch with an RSP of £9.99 while new Juul2 pod packs will enter the market at £6.99. Relx International has also been busy playing the innovation game having just introduced a new Relx Starter Kit. Launched on 28 March, in time for the start of the annual VApril campaign, the Relx Starter Kit includes one precharged black Relx Essential (the brand’s most popular device) plus one closed pod, either Fresh Red or Menthol Plus flavour, along with a USB charging cable.

GOVERNMENT CONSULTS ON NEW VAPE RESTRICTIONS The Scottish government is currently wading through the haul of responses submitted to its public consultation on new restrictions to limit advertising and promotion of vaping products in Scotland. The consultation, which closed on 28 April, sought views on a number of additional controls designed to reduce the visibility of vape products to young people and adult nonsmokers, including restrictions on product displays and moving-picture advertisements. The government proposed that further Scotland-wide bans should be introduced around advertising on billboards, bus stops, vehicles, posters, leaflets, banners and certain published material (e.g. brochures and booklets), product displays whose purpose or effect is to promote vaping products and certain audio-visual media (e.g. publicly exhibited moving-picture advertisements). It also proposed restrictions on brand sharing in products and services, free distribution and nominal pricing, and sponsorship of activities, events or people in Scotland.

SLR | MAY 2022

Commenting on the proposals, SGF head of public affairs Dr John Lee said: “We are not hiding from the fact that a ban on instore promotions would be bad for the businesses of our members, with the risk of their incomes being hit. We are here to represent their interests. But, deeper than that, these proposals are unjustified. “The evidence base presented in the consultation document simply does not justify the measures proposed – setting out the benefits of using vaping products to stop smoking then suggesting that displays of them should be banned. That makes no sense. “Banning in-store promotions, highlighting a route towards quitting, is bad news for Scotland’s public health too. “Our members are committed to selling vaping products responsibly and have a strong track record for doing so. We are encouraging them to respond to the consultation and make their views clear that these proposals are damaging on many levels.”

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he convenience channel has come out of the pandemic in a very strong position. When stock availability was at its worst and with restrictions in full swing, independent retailers kept customers topped up with the everyday essentials they needed. This vital support has certainly earned the goodwill of local communities, turning ‘lifeline’ customers into ‘lifetime’ ones. But 2022 has arrived with its own set of challenges to contend with. Soaring costs, like energy and fuel, as well as the highest rate of inflation for 30 years, means that independent retailers have a rocky road ahead of them. Now is the time for independents to seriously consider joining a symbol group so that they can get the support they need to not only survive but thrive. A supportive symbol group, like Bestway Retail, can give entrepreneurial retailers the best benefits in the market across a portfolio of symbols and fascias. We help our retailers ‘make more possible’ at a time of economic uncertainty and inflationary pressure. With over 45 years of experience in the sector, we know what matters most to retailers and have the market insight necessary to help them grow their business.

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We know that one size does not fit all, and in today’s marketplace, personalisation is as important to retailers as it is to their customers. Whether a Bargain Booze, a Best-one, or a Costcutter symbol or franchise offer, Bestway Retail has dedicated significant investment to ensure that retailers have the best choice of brands and best-in-class service support, product range, and rebates. Bestway’s promise to its retailers includes tapping into years of industry knowledge, a lifetime of retail experience, and access to exceptional talent and market-leading innovation. For example, the Bestway Retail Development Programme (BRDP) is the only retail-focused scheme of its kind in the industry, giving independent retailers free and unique access to industry experts so that they can grow their business. Along with access to the BRPDs, retailers receive support from a dedicated business development manager who provides personal support tailored for entrepreneurial independent retailers. Retailers also have access to the nation’s largest independent Cash & Carry network, where we offer industry-leading promotions.

Anand Cheema, a Falkirk retailer who recently joined Costcutter, said that: “Being able to spend at cash and carry has helped me strengthen my retail prices, which allows me to compete with local convenience stores and multiples as well.” “The benefits I get from Bestway’s Cash and Carry access are fantastic. For example, spending at my local Cash and Carry counts towards my Costcutter rebate payment, helping me earn more. All of my spend is amalgamated into one, making it easy to track my cash flow, and if I can’t get something through delivered wholesale, I can from cash and carry.” “Bestway’s Cash and carry offer adds about 4-5% profit to my bottom line, and it’s just one of the many reasons why I’ve decided to join Bestway Retail under the Costcutter symbol.” So whether you’re a retailer is a large community store, a valued resource in a rural location, or in a high footfall urban location, we have the right offer to meet your needs thanks to our commitment to flexibility, individualism, and our deep-rooted understanding of the industry. To put it simply, whatever your store and whoever your shopper, Bestway Retail has the right offer. MAY 2022 | SLR

Feature

Grocery

GROCERY GO-GETTERS Shoppers are giving a lot more love to their local store’s grocery aisles. BY GAELLE WALKER

ften consigned to the rear of stores and possessing slightly less of the sizzle and spark owned by othermore NPD-rich categories such as chilled and impulse, ambient grocery was once commonly (and mistakenly) thought of as convenience’s poor relation. However, the category enjoyed what can only be described as a Cinderella moment in 2020, when national lockdown restrictions prompted shoppers to fall head-over-heels and become amorous with ambient. With the sudden rise in home-eating, certain categories, such as cooking sauces and packaged bread products, enjoyed meteoric success. And good news is, that while sales in 2021/22 are understandably down on those stratospheric levels, for many retailers, they are still comfortably up on their pre-pandemic planes – driven by heightened shopper interest and appreciation. With its value for money credentials, the current cost of living crisis is also helping to propel sales of typically longer-life, ambient grocery products. Graham Watson of Watsons Grocers (Premier) in Moniaive explains: “We are a very rural store and some distance away from the nearest supermarket meaning that grocery has always been a good seller for us. “However, its star rose exponentially during lockdown and despite falling back now that restrictions have eased, sales are still ahead of

where they were. Tinned goods, dried pasta, cooking sauces and bread products are still very strong sellers for us. It’s down to a combination of factors: new-found shopper interest, a continued sense of caution especially among shoppers over the age of 60 who like to ensure their cupboards remain well stocked, and increasingly price. “With the cost of living going up, many shoppers are also turning to the category as a way of controlling their spending. Sales of tinned fruit and vegetables for example are up. We’re also seeing stronger sales of dried goods from our in-store gravity dispensers which allow budget-conscious shoppers to buy the exact quantities that they need and not over-spend.” One category well worth noting with ambient grocery is pre-packed bread which has witnessed high levels of innovation in recent months driven by shopper demand for more premium products and new varieties of bread “with bits”. Despite being “in the firing-line” regarding concerns over its healthiness, white bread remains the most popular type of pre-packed bread sold, accounting for 50% of value sales and growing by 2% between 2019 and 2021 according to Mintel. However, when it comes to growth, prepacked bread “with bits” i.e. nuts and seeds, is winning the race, with bread with bits racking up the fastest growth between 2019 and 2021 up by 5.7% according to Mintel. The sub-category is proving to be a strong draw for shoppers on the lookout for bread with

added nutritional benefits – a trend which was on the up even before the advent of the Covid-19 pandemic and has since escalated. This growth, according to Mintel, appears to be at the expense of brown bread, which was down by 2.6% in 2021. Bread with bits “clearly appeals to consumers on health and texture grounds,” Mintel says, with bread-makers continuing to look to seeded varieties through innovation. ‘Half and half ’ bread like Hovis’ Best of Both, were also up 2.1% between 2019 and 2021. Hovis’ Best of Both loaves were recently relaunched with a new Vitamin D-rich recipe, in line with growing shopper demand for food with more added nutrients, Hovis said. Bread “with bits” also sits well within the growing shopper trend towards more premium packaged bread products, as Hovis’ Category Manager Helen Stares, explains. “Sales of premium loaves are accounting for a greater share of pre-packaged bread loaves sold” she says. As such, Hovis plans to launch a new Granary Cob as part of its Hovis Bakers Since 1886 range towards the end of April. And, as the cost-of-living increases, Stares expects to wrapped bread take on a new level of importance for shoppers. “For those who are particularly feeling the pinch, bread is a cost-effective way to fill the family and is versatile enough to be served for all meals: breakfast, lunch or dinner,” she says.

SPECIALITY BREADS AND ROLLS The gains made by the speciality bread and rolls market during the months of lockdown slowed in 2021 as shoppers returned to work – however, with a large proportion of UK shoppers still working from home part-time, the market is still well up on pre-pandemic levels as home workers continue to trade up and battle the so-called “lunchtime fatigue,” with new, more interesting breads and fillings. In-fact in 2021, 32% of at-home lunch eaters said their lunches included more premium food products than before the Covid-19 outbreak, according to Mintel. Sales of rolls, the largest segment, were up 2.8% on their 2019 levels, with the market continuing to benefit from the ongoing premiumisation trend and the growing popularity of certain categories such as brioche buns and sourdough. Wraps and bagels also continued to perform well up on 2019 levels in 2021, with sales of wraps up 16.2% and bagels up 12.7% as shoppers continued to sex up their sandwiches.

SLR | MAY 2022

www.slrmag.co.uk

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Feature

Cigars

BACK TO BASICS TO UNLOCK CIGAR SALES

Cigar sales flourished in local retailing during the pandemic but shoppers now seem to be drifting back to the major multiples, so is it time to go back to basics? BY ANTONY BEGLEY

VOLUME SHARE %

Signature Blue Signature Classic Hamlet Miniatures Hamlet Moments Blue King Edward Coronets Signature Finos Blue Signature Red Filter HW Half Corona Moments Panatella RD Miniatures

MAT TO 20/02/22

SHARE CHANGE

19.2% 13.1% 11.7% 11.7% 11.0% 10.5% 7.8% 5.1% 3.7% 3.3% 0.9% 0.7%

0.8 0.7 0.0 -2.4 0.1 2.4 0.6 -2.9 2.1 -0.6 0.9 0.4

VALUE £-M MAT TO 20/02/22

£0.6 £0.4 £0.8 £0.4 £0.7 £0.3 £0.5 £0.1 £0.1 £0.4 £0.0 £0.0

Source: IRI MarketPlace Scotland, w/e 20th Feb 2022

he Covid-19 pandemic had a dramatic effect on the cigar category in the convenience channel in Scotland, as it did on so many categories. Sales flourished over the last couple of years as consumers spent more time at home and had more free time to enjoy some affordable luxuries a little more often. By and large, cigar shoppers avoided large, busy supermarkets and turned to their local retailers. The latest IRI data, however, shows that this trend has very much ground to a halt. In the 12 months to 20 February, volume sales of miniature cigars in independent stores plummeted 17.5% with sales of small cigars down an even more eye-watering 20.6%. Granted, this is partly down to the fact that sales a year ago were 46

SLR | MAY 2022

flying high, but the data is clearly a concern. Alastair Williams, Country Director at Scandinavian Tobacco Group UK, comments: “During lockdown we saw consumers shifting to convenience stores and away from the major multiples but that trend is now reversing significantly and it’s a big concern. “The drop in sales we’re seeing in independents is much larger than we’d expected. Sales in the category are declining slowly over the years but much more so in the local retailing channel. The supermarkets are trending down at about 7%, a much less steep decline.” So what’s causing shoppers to abandon their lockdown habits and return to supermarkets? “It certainly looks like shoppers have just slipped back to their old

ways and started buying their cigars from the supermarkets. At this stage we don’t fully understand why but we could guess that it’s to do with choice and availability. Shoppers have confidence in finding what they want in a supermarket.” Williams suggests that what local retailer need to do now is go back to basics. “We appreciate that life has been really, really tough for retailers over the last couple of years and they’re being pulled in all sorts of directions and have faced big availability challenges. But if they dedicate a little time to the cigar category, they will be rewarded. The margins remain three and four times the margins on Factory Made Cigarettes and there are still a lot of consumers looking for cigars.” What does this mean in practical terms? “It means getting your

range right,” says Williams. “It doesn’t mean having a big range, it means having the right range. Stock the best sellers and maintain availability and you will see the benefits in the till.” Value for money is more important than ever in the current economic climate, so the ‘right range’ will include products that offer great value for money without compromising on quality. “STG remains the UK’s biggest player in the cigar category and our products dominate the bestsellers list in Scotland. Products like Signature Blue, Moments Blue and Signature are must-stocks for retailers. Signature Blue and Moments Blue alone account for well over 30% of cigar sales in Scotland so it’s critical that retailers have these products available,” concludes Williams. www.slrmag.co.uk

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GROWTH

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Feature

Sports & Energy

GAME, SET, MATCH Local retailers have a bountiful opportunity to score big with sports and energy drinks this summer. BY GAELLE WALKER

F FAST FACTS Tropical and exotic flavours are growing

38%

more than all other mainstream flavours. Red Bull

41%

of energy drink consumers are looking to try more exotic fruit flavours (Red Bull) Sugar-free variants grew penetration by

24.3% in the 24 weeks to 26 Dec vs a year ago according to Red Bull

SLR | MAY 2022

rom football to tennis, racing to running, nothing brings the nation together in quite the same way as sport: the great leveller that unites people of all ages, backgrounds, genders and cultures in the pursuit of shared victory. And fortunately for said people and the stores that supply them, the summer of 2022 looks set to serve up plenty of opportunities to do just that - with a raft of high-profile sporting events and occasions sure to get the nation going. One category which is sure to win big over the period is sports and energy drinks, as shoppers come together in support of big-name events and get inspired to inject a bit more sport into their daily lives. Now worth over £1.7bn, the UK’s sports and energy category has enjoyed a “steep upward trajectory in growth over the last year,” up by £276.4m in the 52weeks to 26 February 22 according to Red Bull. This growth, Red Bull says, is being fuelled by the increasing consumer demand for Functional Energy – products which

give them a physical boost but also strike a balance between enjoyment, practicality and health with low to no sugar options. In-fact, according to Red Bull, these types of functional drinks alone have now exceeded the billion-pound mark, today worth over £1.2bn annually.

THE RISE OF LOW AND NO SUGAR Functional drinks that offer the added incentive of less sugar in particular are enjoying significant success, with “insight having shown that sugar-free variants have grown spend by 23.3% according to Kantar data for the 24 weeks to 20 Feb 22 vs a year ago,” Red Bull says. In fact, Red Bull Zero 250ml alone has seen a £4.6m increase in sales value since its 2020 relaunch.

FLAVOURS

The summer ahead holds a great many opportunities for retailers to tap into large sporting occasions including the Commonwealth Games as-well-as the FIFA Football World Cup later in the year. However, one of the biggest sporting highlights this summer looks set to be the UEFA Women’s EURO 2022 which will be held in England for the first time since 2005. Kicking off on 6 July in venues across England, the tournament of 16 nations is sure to generate high levels of shoppers interest and excitement, with convenience retailers well- placed to capitalise, Suntory Beverage & Food says.

It’s not just sugar-free variants that have grown penetration over the last year, with tropical and exotic flavours growing 39% more than all other mainstream flavours on offer, according to Red Bull. In-line with this trend, March saw Red Bull reveal its latest seasonal Edition with the launch of 2022’s new Apricot and Strawberry flavoured Summer Edition. And Red Bull is certainly not alone in encouraging retailers to get in on the flavours act this summer. www.slrmag.co.uk

Sports & Energy

TOUR DE FRANCE 1-3 JULY 2022 UEFA WOMEN’S EURO 2022 6 TO 31 JULY 22 (HELD IN ENGLAND) COMMONWEALTH GAMES 28 – 8 AUGUST

D S¹

F1 BRITISH GRAND PRIX 1-3 JULY

WIMBLEDON 27 JUNE – 10 JULY

IN A ST O HT

ENGLISH FA CUP FINAL 14 MAY 2022

MORE MULTIPACKS. MORE SALES. BOU G

2022’s SUMMER OF SPORTS

As Suntory Beverage & Food (SBF) wholesale channel director Matt Gouldsmith explains: “Flavours is another strong area of growth for the soft drinks category, and new flavours are crucial for retailers looking to drive excitement and bring in incremental shoppers, with one in four flavour shoppers being entirely new to the energy category. “Within this, the Lucozade Energy flavours range has contributed £60.7m worth of sales.” Building on the success of its Tropical Burst and Cherry Blast flavours, Lucozade’s Alert brand has brought a brand-new flavour to shelves, with the launch of Lucozade Alert Original. Featuring the same taste as Lucozade Original, Lucozade Alert provides Niacin (Vitamin B3) to contribute to the reduction of tiredness and fatigue, plus 160mg of naturally sourced caffeine. Coca-Cola Europacific Partners (CCEP) also joined the flavour party in mid-April, with the arrival of Monster Ultra Gold and Monster Khaotic.

Feature

O Y 2 .5 SEC

THE HUNDRED 3 AUGUST- 3 SEPTEMBER RANGING AND MERCHANDISING ADVICE Stock up on multi-pack formats ahead of the Summer season. Range sports and energy drinks together rather than by supplier to help shoppers easily find what they want. Put your biggest sellers on a priority shelf in line with where shoppers’ eyes will naturally be drawn. Encourage impulse sales with window posters and shelf barkers Give stimulation drinks more prominence. Low-price point stimulation drinks are a big seller, so keep these near higher-price point stimulation drinks to range together and give the whole range more importance. The stimulation category is growing by 22%. Create themed fixtures and promotions – 51% of shoppers are more likely to visit their local store if they offer themed promotions according to HIM.

www.slrmag.co.uk

SOURCE: ¹NIELSEN SCANTRACK, SPORTS & ENERGY, TOTAL GB COVERAGE, UNIT SALES, RED BULL ENERGY DRINK 4 PACK, 52 W/E 19.02.2022. *RED BULL ENERGY DRINK 4 PACK.

MAY 2022 | SLR

11867_Trade_Press_Apr_May_4_Sports and Energy Drinks_V1.indd 13/04/2022 1 16:33

INCREASING SHOPABILITY IN SOFT DRINKS

Shopability of a range in-store is important for driving sales, making it crucial for retailers to take a step back and take look at what goes where. Using data, insight and planograms from Suntory Beverage and Food GB&I (SBF GB&I)’s category team, Craig Starling joined Ravi Raveendran to find out how making the most out of chiller space can help customers have a better shopping experience.

THE RETAILER

THE STORE

RAVI RAVEENDRAN, COLOMBO FOOD & WINE, HOUNSLOW

CRAIG STARLING, BUSINESS DEVELOPMENT MANAGER, SBF GB&I

Ravi’s store has been family-run for over 15 years. Located in a residential suburb of West London, he has very price-conscious customers who he is continuously trying to meet the needs of. However, space in store is very limited. Soft drinks is the second biggest-selling category in store. Within this, energy drinks are the biggest subcategory, so it’s crucial they take prominence in store.

Ravi’s range is great, with lots of variety to cater for every customer, as well as a great relationship with his shoppers and knowledge of his best-sellers. There is room to think about how he could maximise sales through ensuring drinks are ranged correctly by format, as well as incorporating more pack formats to suit shopper needs.

THE OPPORTUNITY

£800M%1 85.5%2

THE SIZE OF STIMULATION, THE FASTEST GROWING SOFT DRINKS SEGMENT OF THE LAST FIVE YEARS.

OF SALES COME FROM THE FIVE MUST-STOCK SEGMENTS – CARBONATES, ENERGY, WATER, JUICE AND SPORT.

THE LESSONS

FLOW YOUR PRODUCTS BY CATEGORY

BLOCK STIMULATION TOGETHER

1 IRI SL Data latest 8 week data to 17.05.20 (Total Drink Later change vs. YA) 2 EXT IRI, MarketPlace, GB, latest 52 week data ending 21.02.21

INCLUDE BOTH PMP AND STANDARD PACKS

THE RESULTS

ADDED

NEW LUCOZADE ALERT, INCREASING HIS STIMULATION SALES

INCREASED SALES OF HIS BIGGEST SELLING ENERGY LINE

“My shoppers have noticed the changes and are browsing my drinks range more. This is great for sales.” RAVI RAVEENDRAN, COLOMBO FOOD & WINE, HOUNSLOW

THE CHANGES WE MADE STEP ONE

MAKE THE CHILLER EASY TO NAVIGATE BY RANGING SOFT DRINKS TOGETHER

BEFORE

AFTER

Some drink formats were spread across two decks of his chiller, with some mixed into his fresh food offer. We re-ranged them so similar drinks sat together, creating a Stimulation, Energy and Sport section, which can be shopped more clearly by the customer. STEP TWO

GIVE STIMULATION DRINKS MORE PROMINENCE

BEFORE

AFTER

Low-price point stimulation drinks are a big seller, so we moved higher pricepoint stimulation drinks near to these, to range together and give the whole range more importance. Stimulation is growing 22% in the last year, so this change will help drive sales.

STEP THREE

BEFORE

AFTER

TO SEE MORE OF RAVI’S SHOP AND FOR ADVICE FOLLOW @SUNTORYBF_GBI ON TWITTER AND LINKEDIN 3 EXT IRI MarketPlace GB, Total Soft Drinks, Value, Latest 52-week data ending 26.12.21

INCORPORATE MORE PRICE-MARKED PACKS INTO THE RANGE

Price-marked packs tend to be more popular in suburban areas than standard packs, and Ravi’s store sales reflects this. We incorporated more PMPs in store to cater for this.

Feature

Sports & Energy

SIZE MATTERS Although drink-later formats currently make up 62% of the total share of soft drinks, drink-now formats are seeing high year-on-year growth at 26% according to SBF. Shoppers have sought more hydration while out and about following the end of Covid restrictions. “To capitalise on this growing trend, retailers should stock up on on-thego formats of energy and sports drinks like Lucozade Energy and Lucozade Sport to meet shopper needs, particularly as the weather gets warmer and shoppers spend more time outside,” SBF’s Goldsmith adds.

SUSTAINABLE MOVES Lucozade Sport recently unveiled a new kit with a reduced plastic sleeve on its bottles. The new-look sleeve, which has been rolled out across the Lucozade Sport portfolio, follows SBF’s £7.8m investment to make its packaging more sustainable, as part of the company’s Growing For Good vision. The reduced sleeve alone will save 101 tonnes of virgin plastic being produced annually and allows the bottle to be more easily identified and sorted into the correct waste stream.

With zero sugar and a juicy pineapple flavour, Ultra Gold has been designed to give consumers a “delicious and refreshing energy boost with no calories. Tropical orange flavoured Monster Khaotic meanwhile, offers “a shake-up of one of the original Monster Juiced variants launched more than a decade ago when real fruit juice was first combined with the functionality of energy drinks.” Both variants are available now and available in both plain and price-marked 500ml packs, with POS available on request. The new variants will join an already colourful line-up of new flavoured options for 2022, including the March launch of Rubicon Raw Apple & Guava. Commenting on the launch, Barr Soft Drinks’ marketing director Adrian Troy says: “We know that new flavours drive interest and growth in the category, delivering £131m last year.” 52

SLR | MAY 2022

“The Rubicon Raw Apple & Guava flavour allows us to grow our brand, but more importantly, it allows retailers to invigorate and excite their category with a product that has delivered exceptional results in consumer research,” he adds.

HFSS REFORMULATION DRIVE With the advent of HFSS legislation looming, the summer of 2022 is also likely to see a large swathe of brand reformulations, as manufacturers seek to make their products comply ahead of the October deadline. Britvic’s Rockstar energy drinks brand reduced the sugar content across its core range of energy drinks in March, making its six bestsellers HFSS compliant. The core Rockstar flavours will join the majority of the line-up which already falls under the planned regulations. The updated Rockstar core range (with less than 4.5g of sugar per 100ml) www.slrmag.co.uk

Sports & Energy

is being rolled out now in both plain and pricemarked packs, with a disruptive out-of-home advertising and social campaign for the brand following in June. The flavours available include Original, Punched Tropical Guava, XDurance Blueberry Pomegranate Acai, Juiced El Mango, Juiced Tropical Punch, Juiced Tropical Orange Passion Fruit – alongside Original No Sugar and Punched Sour Bubbleburst, which already fall under the HFSS restrictions.

Suntory Beverage & Food (SBF) is also well ahead of the curve on HFSS legislation, with all bottles and cans of Lucozade and Ribena already non-HFSS due to the reformulation drive it has been carrying out over the past few years. SBF’s wholesale channel director Matt Gouldsmith says: “Each brand has a zero or low sugar option in the form of Lucozade Zero, Ribena Light and Orangina Light. This means we won’t need to adapt our marketing strategy due to the restrictions and we can continue to market our full range of lower sugar drinks to shoppers across all channels as normal. “For retailers this means they do not need to relocate our drinks and can continue to promote all Lucozade and Ribena drinks in every location in store. “Importantly, we don’t see low-sugar and great taste as mutually exclusive – the years of investment we’ve made into reformulating our brands means shoppers can still buy a soft drink with lower or zero sugar without compromising on taste.”

Feature

SUNTORY BEVERAGE & FOOD SHARES KEY RETAILER ADVICE AHEAD OF THE IMPLEMENTATION OF HFSS LEGISLATION IN OCTOBER Don’t delay – Get ahead and prepare so that you can be in the best position when the HFSS restrictions come into place in October. There are things you can do now to understand the category and role of promotions. Know your suppliers – The HFSS legislation will affect many categories in store and keeping track of what you can display in certain places can be tricky. Look out for the brands and suppliers who can guarantee their ranges are fully compliant with regulations. Get the range right – We know that soft drinks are a key impulse purchase. Ranging HFSS-compliant drinks in high-traffic areas will really help drive sales this year.

POWER UP YOUR SALES

HIGH CAFFEINE ENERGY DRINK WITH THE INDESC

RIBABLE TASTE OF IRN-BRU

FROM THE N0.1 SCOTTISH GROCERY BRAND *

*Source: Kantar World Panel, Value Sales, Take Home Non-Alcohol Brands, MAT to 06.09.21, Total Scotland

www.slrmag.co.uk

MAY 2022 | SLR

Feature

Forecourts

POWERING UP

The UK’s network of forecourt stores is offering an increasingly innovative and environmentally focused mix of products and services, says the latest ACS Forecourt Report. BY GAELLE WALKER

ith the essential products and services that they offer, the UK’s 7,395 forecourt shops have always performed a vital function within the communities that they operate. However, that role has certainly been elevated in recent months, with the pandemic boosting both footfall and shopper expectations. That shift is prompting forecourt sites across the country to innovate with new services such as Post Oﬃces and food-to-go, as well as investing in alternative power options for vehicles and diversify their range of products. In fact, in 2021 alone, independent forecourt retailers invested more than £16,000 per store according to the most recent ACS Forecourt Report. The same is true for company-owned stores and Jet Retail demonstrated this with the recent renovation of its flagship site close to the Phillips 66 Humber Refinery in South Killingholme, North Lincolnshire. The £3m project, JET’s biggest site transformation to date, included the installation of brand-new HGV and retail forecourt facilities including pumps and a cutting-edge Spar-branded store with a host of foodto-go options including Seattle’s Best Coffee, Rollover Hot Dogs and the Spar Daily Deli concept. And, with the government having recently set out plans for a 10-fold increase in electric car chargers by 2030, a great number of forecourt retailers and operators have also been investing in alternative power options. Independent forecourt operator Motor Fuel Group (MFG) recently announced an Electric Vehicle (EV) partnership deal at Great Western Retail Park in Glasgow. The park is 270,000sq ft and hosts B&Q, Sainsbury’s, Currys and numerous other premium tenants. The new EV hub featuring eight 150kW ultra-rapid chargers and all-weather canopy is expected to open in Q3 this year.

The chargers will offer motorists 100 miles range in approximately 10 minutes, subject to the charging capability of individual car batteries. MFG Chief Executive Oﬃcer William Bannister said: “This is another exciting development in our drive to build the UK’s best network of ultra-rapid EV hubs across the country. “We have already invested significantly and ahead of the curve on EV charging across our own forecourt network as part of our dual-fuel strategy to support the UK’s transition to electric motoring. “We are working with leading real estate owners and managers to provide best-in-class destinations to meet the inevitable demand for easy access EV charging from the motorist in high traﬃc retail locations.” April also saw the launch of a new state-of-the-art Compact Electric Forecourt in Norwich by electric charging network Gridserve. The facility delivers the latest charging technology, supplied by 100% renewable energy, and more than doubles the region’s number of high-powered chargers. The site also functions as an EV experience destination, where visitors without electric cars can find out more about them, whilst enjoying wellknown brands including Costa Coffee, M&S Food, and WHSmith, along with super-fast WIFI and bookable meeting pods.

CHRISTIE & CO TO EXPLORE FUTURE OF FILLING STATIONS Specialist business property adviser Christie & Co is to lead a new three-part online course on Petrol Filling Stations – Now and the Future. Hosted by key industry experts, the course will bring attendees up to speed on current market activity and investigate future challenges and opportunities for forecourt owners and stakeholders as we head towards the ‘Road to Zero’ and the government ban on the sale of new petrol and diesel cars. The course will explore what is driving the market for petrol filling stations and why there is so much interest in site development and acquisition in the face of apparent growing sales of electric vehicles (EVs) and other alternative fuelled vehicles (AFVs). Session one will take place on 18 May, with subsequent sessions on 25 and 27 May.

“UK forecourts have demonstrated how essential they are to their communities throughout the pandemic, and especially in the last few months during the fuel supply chain issues. As we look ahead, we must ensure that the essential services that forecourts provide are recognised, and that they are incentivised to invest in new technology, alternative power options for vehicles, and improving their shop offer for customers.” ACS CHIEF EXECUTIVE JAMES LOWMAN

SLR | MAY 2022

www.slrmag.co.uk

Go with Gulf today Partnering with you to grow your business

Call 0345 456 6300 Visit gulfoil.co.uk/forecourts

Forecourts

Feature

ROADCHEF ADDS EDGEPOS

oadchef has installed Henderson Technology’s EDGEPoS system in nine of its Spar stores. Roadchef is the oldest motorway services business in the UK and sees around 50 million visitors per year. They have positioned their services as the high street under one roof, offering their customers a unique offer. The EPoS journey for Spar in Roadchef has been a particularly important part of the business strategy. A temporary EPoS solution was installed whilst Roadchef looked at the different EPoS platforms in the market and tried to understand the different providers available to them, and what they were looking for. What really sped up the transition to EDGEPoS was the introduction of self-checkout tills in other areas of the business, and the introduction of electronic shelf edge labels, which Henderson Technology adopted early on. Mark Rogers, Retail Director for Roadchef, told SLR: “We needed to understand not only what we needed today, but also how we could future proof our business for tomorrow. This was a key factor in our decision. We needed to ensure that we were offering the right solution for our customers, and all our store colleagues. “The features we could not live without are

endless. One of the features for the stores teams is the Reduced to Clear printer and handheld unit. This has removed a big task for them as previously they would have had to spend time working out the reduction level and amount was. This of course flows through to the financial performance of the stores also and improves the store margins. “The ease of the tills is fantastic also. Our store teams really enjoy how simple the tills are to use. EDGEPoS has removed a lot of the old clunky functions on the till, and they love the speed of the tills. When we have had colleagues working on the EDGEPoS tills from other areas of the business, they are often jealous as the EDGEPoS tills are so easy to use! “Our customers find the EDGEPoS SelfCheckout simple and effective to use. The SelfCheckout has a pre-recorded voice that talks the customer through each step, and they often feel like there is a cashier helping them. We certainly could not live without this product instore. “We are trying to offer our customers an effortless way of use in our Spar stores. We are in world where customers expect to see selfserve instore; not everybody wants to be served by a cashier – some people just want to serve themselves.

“Self-Serve is no longer a nice product to have, it is now a minimum requirement for customers in store. And the fact that Henderson Technology could offer us the hybrid selfcheckout option that fits onto our customer model was a huge plus for us. “The head oﬃce system for us was a crucial part of our discussions with Henderson Technology. When we worked with other thirdparty suppliers, all individual stores teams had to change prices in each store which was potentially risky. With EDGEPoS Head Oﬃce we now have full control and operations such as price changes are now all managed by one team instead of individual store teams. We know that this improves our overall margin. EDGEPoS also gives us real time reporting and performance. “For anybody looking for a new EPoS partner to work with, look at EDGEPoS. Ask yourself ‘What do you need today? And what do you need tomorrow.’ Henderson Technology will not only work with you as to what needs delivered today but will also scope out what you need for the future within your business too. Be brave with what you want for the future, the team at Henderson Technology are always open to dialogue of what your requirements are. It’s a great partnership.”

FORECOURT FACTS According to the ACS Forecourt Report 2021: Q More than one in three independent forecourt operators (37%) took no days off over the last year Q There are around 305,000 PHEVs and 298,190 fully electric vehicles registered in the UK Q There are around 536 charging points at 405 forecourt locations (excluding service stations) in the UK, part of a wider network of over 16,000 charging locations Q Around one in four independent forecourts are open 24 hours Q The total value of forecourt sales is £4.7bn

www.slrmag.co.uk

MAY 2022 | SLR

UTC

GREGGS FACTOR After yet another day’s heavy losses at the bookies, UTC likes to comfort himself with a sausage roll from Greggs. Something about the combination of puff pastry and sausage meat makes chucking fifty pence away on an ill-thoughtout seven horse accumulator seem not so apocalyptic after all. But just how long would he have to work to pay for his savoury treat? Three minutes and 38 seconds, according to a new nationwide cost of living index based on Greggs sausage roll prices and local average pay data provided by the Office of National Statistics. That’s because the Auld Boy ‘works’ (in the loosest possible sense) in Glasgow. People in Edinburgh only need to slave away for three minutes and 35 seconds, while lucky Stirlingers for three seconds fewer again. Pity poor Dundonians though. They must toil for a whopping three minutes and 47 seconds for a sausage roll. The brainchild of financial advice website InvestingReviews.co.uk and modelled on The Economist magazine’s worldwide Big Mac Index, the Greggs Sausage Roll Index was created to expose the north-south divide that persists despite the government’s flagship levelling-up agenda. And this it pretty much does. The hardest-earned sausage rolls were in Lichfield (4 mins and 54 secs) followed in joint second by Middlesbrough, Nuneaton, Truro and Hereford (all 4 mins and 48 secs). Readers, just like disgusted class warrior UTC, won’t be surprised to learn that Londoners work the least for a sausage roll, clocking in at just under the threeminute mark (2 mins 58 secs).

A WAFER LONG? As a longstanding fan of Tunnock’s Caramel Wafers – what self-respecting Scot isn’t? – UTC was positively thrilled to learn you can now holiday in a static caravan themed around the iconic biscuit. The cleverly titled Tunnock’s Caravan Wafer is situated on the idyllic shores of Loch Goil in the Drimsynie Estate Holiday village, and its discovery by the Auld Boy has blown Mrs UTC’s long-held-for hopes of 10 days in Torremolinos during the Glasgow Fair out of the water for another year. Alongside the usual amenities like central heating, a fully equipped kitchen and flat-screen TV, the threebedroom caravan is decked out with Caramel Wafer, Log and Teacake cushions, as well as other Tunnock’sthemed accessories. It’s unclear if any biscuits are included in the rental price though. The striking exterior design also makes UTC’s unfortunate habit of staggering into the wrong caravan after one shandy too many at the site’s social club a thing of the past. The Auld Boy was also quite pleased with himself for coming up with a slightly roomier alternative to the caravan: the Tunnock’s Caramel Log Cabin.

NOT CROSS BUNS UTC is not what you’d call religious. Although he religiously buys up dozens of reduced-price Easter eggs for his personal consumption around this time of year. He’s also partial to that other Easter staple, the hot cross bun. So, he was tickled to discover that Australian supermarket Coles had been selling hot cross buns over Easter that were missing one vital ingredient – the cross. A Sydney-based shopper posted an image on Reddit of what are best described as ‘hot line buns’, under the headline ‘You had one job, Coles’. Despite Bruce and Sheila Public crucifying Coles on social media, the Auld Boy – inexplicably getting right into the spirit of Easter – struck a more forgiving note that Jesus himself would be proud of and suggested that the offending cakes were probably “someone’s idea of a non-religious iconography baked good”. UTC then, of course, took it too far. “However, given their belief that Jesus was executed on a single vertical stake,” he chuckled, “the buns are clearly targeted at Jehovah’s Witnesses.”

SLR | MAY 2022