SLR May 2019 by 55 North

MAY 2019 | ISSUE 193

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JOHN PATTERSON

JUUL boss sees big role for local retailers

MAY 2019 | ISSUE 193

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COLIN SMITH

SWA chief calls on members to shape strategy

TRACK & TRACE

A retailer’s view

ENERGISING SALES

GOOD FOR BUSINESS

New launches boost energy category

NEWSTRADE Retailers tell Menzies ‘Enough’s Enough’

SLR’s ground-breaking conference shows doing good is good for business.

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May 2019

Contents

Contents ISSUE 193

NEWS p6 p8 p10 p12 p22 p24 p26

Food-to-go Extension to Scottish Government’s popular matched-funding grant scheme announced. Symbol Groups Londis marks 60th anniversary with record recruitment and growth. Wholesalers JW Filshill’s biggest-ever trade show attacts over 80 KeyStore retailers. News Extra Scottish Wholesale Assocation SWA calls on members to help shape its vision for the future. Product News Britvic category report finds Soft Drinks surging ahead, thanks to an “unprecedented” year in 2018. Off-Trade News Foster’s ad takes a swipe at craft beer, while Diageo pinpoints four growth areas for the off-trade. Newstrade Retailers tell Menzies ‘Enough’s Enough’ on carriage charges.

INSIDE BUSINESS p28 Research Digest The UK’s total online grocery spend rises but, surprisingly, the number of shoppers falls. p31 2 Minutes Of Your Time John Patterson Juul’s UK Sales Director believes convenience retailers have a much bigger part to play in the Vaping category. p34 Track & Trace JTI Area Sales Manager Richard McCaig answers Best-one retailer Bruce Morgan’s questions about the fast-approaching tobacco legislation. p37 One Stop The Tesco-owned franchise celebrates 16 consecutive quarters of growth for their franchisees. p38 DRS Made Easy For Local Retailers The second of three articles reveals the experiences of Scottish retailers who have trialled reverse vending machines in their stores. p40 Getting More Out Of Epos Our six-month series of guides to mastering your Epos platform draws to a conclusion. p43 SLR Rewards Time is running out to make sure that you don’t miss the most rewarding night in local retail. p44 Hotlines A stylish new sub-range of Pot Noodles sees Unilever boost its sustainability credentials. p62 Under The Counter The Auld Yin is subjected to a rare outbreak of happiness, courtesy of Tennent’s Lager. FEATURES p46 Cigars Research from STG shows that more cigarette smokers than you might think are very to trying cigars. p48 Vaping Scotland’s local retailers are beginning to rediscover their passion for the category fuelled in part by innovation from the leading brands. p50 Energy Drinks Innovative new launches help generate fresh consumer interest in this all-important category. p55 Healthier Snacking As new research suggests healthier eating is on the rise, SLR offers some options for retailers looking to meet that demand. p60 Hanging Bags The hanging bags market continues to help drive impulse sales, with many key manufacturers helping maintain interest with new lines and innovation.

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ON THE COVER p16 Sustainability Conference Sustainability issues will be key challenges this year for all local retailers in Scotland as SLR’s recent conference in Glasgow highlighted.

MAY 2019 | SLR

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News

Sugro signs up three new members Independent wholesaler buying

News

BROUGHT TO YOU BY

group Sugro UK has recruited three new members. These are Seafresh Wholesale Distributors (t/a Adams Fast-Food Supplies), Europa Brands and Extreme Systems (t/a We Get Any Stock. The new additions mean Sugro is now comprised of more than 80 independent wholesale members with a combined group turnover in excess of £80m.

It’s time to rethink retail The British Retail Consortium has launched Rethink Retail, a new careers guidance website (RethinkRetail.org.uk). Working with a range of careers guidance providers, it seeks to inform the public’s understanding about retail careers and further support careers initiatives in schools, colleges and universities. With

HEALTHIER SNACKING, HEALTHIER PROFITS – P55 FOOD-TO-GO Grants of up to £7,500 available

Further food-to-go funding announced The Scottish Government has released a further £300,000 in funding to help local retailers bolster their food-to-go offering. The extension of the popular scheme was announced by SGF Chief Executive Pete Cheema at the Federation’s Business Summit on 30 April. Retailers can receive grants of up to £7,500 in matched funding to develop their stores. A total of £250,000 was distributed under the scheme in 2018, which will again be administered by SGF. Successful applicants must show a commitment to local sourcing and

to offering a range of healthy eating options. Additional criteria include the completion of an action plan to reduce food and packaging waste. “We are delighted that the Scottish government is not only renewing but increasing this significant investment in our industry,” said Pete Cheema. “The grants will help convenience retailers to stay competitive, respond to changing customer demand and connect with local suppliers. This is a win-win for convenience retailing in Scotland.” On behalf of the Scottish government, Cabinet Secretary for Rural Affairs Fergus Ewing MSP

Pete Cheema launches fund extension. added: “This new funding will further help grocers to provide people with access to quality, locally sourced and healthy food in addition to providing an important focus this year on reducing waste.”

retailers employing 3.1 million people in the UK, the initiative would like to reposition retail as ‘a career of choice’ for the emerging workforce.

Gantries gone JTI has removed its tobacco gantries from three retailers prosecuted for sales of illegal tobacco. The owner of Save & Smile in Epsom was ordered to pay fines and costs totalling £2,160. The owner of Queensgate News in Burnley was given a suspended sentence and ordered to pay costs of over £1,000 after being caught for the third time, while the owner of Galaxy News in north-west London was fined £2,400.

MFG signs with BP Independent forecourt operator Motor Fuel Group has signed a new five-year, one billion litresa-year fuel supply contract with BP. The news follows MFG’s acquisition of MRH last year. The deal secures the fuel supply across nearly 250 BP-branded forecourts across the UK, including all the former MRH sites. BP said it was the largest single group re-signing it had

MERGERS & ACQUISITIONS Watchdog says shoppers and motorists would be worse off

WHOLESALERS

CMA blocks AsdaSainsbury’s merger

Unitas launches Supplier Council

The Competition and Markets Authority (CMA) has blocked the proposed £7bn Sainsbury’s-Asda merger after finding it would lead to increased prices in stores, online and at many of the UK’s petrol stations. In its final report, published on 25 April, the competition watchdog found that UK shoppers and motorists would be worse off if the two multiples were to merge. It concluded that the deal would result in a “substantial lessening of competition” right across the UK – not just in areas where Sainsbury’s and Asda stores overlap. Stuart McIntosh, Chair of the CMA inquiry group that examined the proposed deal, said: “Following our in-depth investigation, we have found this deal would lead to increased prices, reduced quality and choice of products, or a poorer shopping experience for all of their UK shoppers. “We have concluded that there is no effective way of addressing our

The CMA’s Stuart McIntosh predicted a “poorer shopping experience” for customers concerns, other than to block the merger.” Sainsbury’s and Asda had proposed to sell off up to 150 supermarkets and 38 petrol stations in a bid to keep the deal afloat. They also promised to deliver £1bn in annual savings three years after merging. The CMA said it had “carefully reviewed” the price promise but its analysis clearly showed that, overall, the merger would more likely lead to price rises than price cuts.

Buying group Unitas Wholesale has announced the launch of the Unitas Wholesale Supplier Council. The Supplier Council represents more than 300 retail, foodservice and on-trade suppliers from across all the major product categories. “To be serious about our cultural journey from buying group to selling group, it is important that Unitas Wholesale is the first choice for the category sales experts themselves: our suppliers,” commented Darren Goldney, Unitas Wholesale Managing Director. The Supplier Council launched with 14 suppliers and several objectives, including exchanging feedback on challenges and initiatives, shaping and ideas generation, and ensuring that communications are clear and fit for purpose.

secured in the UK. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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News SYMBOL GROUPS Londis celebrates 60th birthday with year of activity

Nisa’s charity makes difference to playgroup Specialist playgroup charity

Londis marks 60th birthday Londis marked its 60th birthday last month with a special event held at Twickenham Stadium, not far from the site of the first-ever Londis store. The event was attended by a delegation of Londis retailers and detailed both the long history of the symbol group and its plans for the future, including a year of activity to commemorate the diamond anniversary. Founded in 1959 by John Leach, Londis was acquired by Musgrave in 2004 before becoming part of the Booker Group in 2015. Brand Director Martin Swadling (pictured), outlined how Booker has responded to retailer demands for

Playskill was “beyond grateful” to receive a donation of £56,000 from Nisa’s Making A Difference Locally charity, to help with running costs and future development. MADL raises funds in Nisa stores from the sale of Heritage and Co-op own-label products. It has donated over £8.4m to more than 11,000 causes since 2008.

Müller may close dairies Müller Milk & Ingredients is taking a long, hard look at its dairy network to make sure that capacity is line with current and future customer requirements.

a new and lower cost Londis that was simpler to do business with. The group’s response was a model with free membership, a free leaflet scheme, a free EPoS system and a new discount scheme. The group also introduced improved pricing in 2016 and a much upweighted social media presence and an improved own label offering through the Discover the Choice range. Recent client acquisitions that include MFG and MRH have helped Londis deliver three years of record growth and considerable recuitment success with more than 1,100 stores joining.

The company will make a decision following a 45-day statutory collective consultation process but said at this stage it couldn’t rule out the closure of a manufacturing site. The assessment comes under the umbrella of Müller’s £100m Project Darwin cost and margin review programme.

FDF welcomes Kraft Heinz Kraft Heinz has joined the Food and Drink Federation (FDF), a trade organisation that represents more than 300 food and drink manufacturers UK-wide including Scotland, where its sister organisation FDF Scotland operates. FDF has seen an upsurge in recent subscriptions, in part due to the tailored Brexit service it offers, which aims to advise SMEs as the UK exits the EU.

Soup-erb fundraising Baxters has raised £117,000 for Macmillan Cancer Support through soup sales and staff fundraising efforts. The amount smashed the £100,000 target Baxters set for its 150th anniversary year and will now fund one Macmillan nurse for 25 months. Staff took part in a variety of fundraising activities, from sky dives and bungee jumps to raffles and race night

TRADING Co-operative passes £5m profit mark

PAYMENT SERVICES

‘Continuous improvement’ boosts Scotmid results

PayPoint launches SIM Reward scheme and retailer survey

Scotmid’s newly-published annual review has revealed the cooperative made a £5.3m trading profit last year. The amount, for the year ended 28 January 2019, represents a year-on-year rise of £500,000. The result was driven by Scotmid’s food convenience business during the summer, which delivered a strong like-forlike sales performance assisted by range improvements and the favourable weather, despite bearing the brunt of cost increases including business rates, energy and employment costs. The society, which celebrates its 160-year anniversary in November, recorded turnover of £378m – an increase of £4m on the previous year. Its net assets also rose to a record high of £103m. John Brodie, Chief Executive of Scotmid Co-operative, said: “This strong result was achieved through the implementation of a range of continuous improvement initiatives and was boosted by the hottest summer in 40 years, all while operating with the background of a lacklustre economy, Brexit uncertainty and the cumulative burden of significant cost increases.” Scotmid’s Community Connect initiative awarded £75,000 to nine good causes across Scotland over year, while its Community Grant programme helped almost 1,200 local initiatives.

PayPoint has unveiled a SIM Reward Bonus scheme, providing retailers the opportunity to earn an additional £600 per year in commission on SIM activations. The bonus scheme is live now and retailers who offer PayPoint SIMs to their customers have the opportunity to earn additional commissions, with the first payments being made in July 2019 on top of their standard commission for activations and top-ups. Since moving to a free SIM model in 2017, PayPoint has paid over £1.6m in SIM commission to retailers. PayPoint retailers can order SIMs by calling 0845 300 6330 or by emailing sims@paypoint.com. The launch of the scheme coincided with the roll-out of the next wave of PayPoint’s national retailer survey, giving all its independent retail partners the opportunity to provide feedback on the progress the company is making. The survey is conducted on a regular basis to check in on how retailers feel about their relationship with PayPoint and to identify further areas for improvement in how it does business with its retail partners. The survey takes 15 minutes to complete and PayPoint will once again be donating £1 to GroceryAid for every completed response.

events to help generate funds for the charity. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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News WHOLESALERS Filshill holds “most successful” exhibition yet

Britvic commits to sustainability Britvic has named company veteran Trystan Farnworth as its Director of Sustainability. The newly-created role reflects Britvic’s ongoing commitment to running a sustainable business and Farnworth will be responsible for providing senior leadership in this area. He will report directly to GB Managing Director Paul Graham and will continue to hold a role on the GB Executive team.

Oats all over now Tate & Lyle has sold its oat ingredients business, based in Kimstad, Sweden, to Swedish agricultural cooperative Lantmännen. Joan Braca, President, Food & Beverage Solutions, Tate & Lyle said the sale was “a good outcome” for its oat ingredient employees and would enable the company to

Retailers flock to Filshill’s biggest-ever trade show Retailers from across Scotland and the north of England gathered recently (24 April) at Hampden Park for the 2019 JW Filshill Trade Exhibition. The event, Filshill’s biggest to trade show to date, attracted over 80 KeyStore retailers and 60 suppliers. Several on-trade customers also attended. Trade seminars covering training, food-to-go and vaping were well attended by retailers. Tom Fender, Managing Director of Paisleybased Bolt Learning, spoke about the benefits of online training for convenience stores while Gary Routledge, National Business Manager at Juul Labs, discussed the growing importance of the vaping category and how retailers

can capitalise on its growth in the future. Juul has entered an exclusive partnership with Filshill to develop the category. Food-to-go and how this category can help c-stores create a point of difference saw Steve Appolinari, Sales Director of Fife Creamery, outline recent developments at the chilled foods supplier. Retailers were also given an insight into how the deposit return scheme (DRS) for empty drinks containers will look when it is introduced in Scotland. Reverse vending machine manufacturer Tomra showcased its equipment and answered questions ahead of the Scottish Government’s introduction of a DRS. Following the event, suppliers donated surplus stock to Clydebank

Foodbank, with leading Filshill customer Clydebank Co-op coordinating the uplift and delivery of product. Craig Brown, Filshill’s Retail Sales Director, said: “This has been our most successful trade exhibition and we were delighted that so many customers saw the value in taking time out of their businesses to see what’s new, talk to our suppliers and spend time with other retailers.”

focus on serving its customers in its main food and beverage categories.

Industry charity names new Finance Director GroceryAid has announced the appointment of Andy Ward as the charity’s new Finance Director. Ward has worked in a number of organisations and industry sectors in senior commercial and operational finance, audit and governance roles. These include Ernst & Young, AT&T, T-Mobile, Compass Group, Gate Gourmet, Fulham Football Club, Alliance Boots and Christie’s.

NHS Scotland urged to end non-dairy milk restriction The Vegan Society has written to NHS Scotland urging it to ensure its Best Start vouchers can be spent on non-dairy milk. The Best Start scheme – launching in the summer, allows some pregnant women and parents of young children to claim free vouchers to spend on milk, fruit and vegetables. The Vegan Society says the NHS restriction on the purchase of plant milk

SYMBOL GROUPS Co-op range proves popular with Nisa retailers

Stoneleigh success for Nisa Nisa has hailed its 2019 trade show as “a huge hit” following the twoday event held in Stoneleigh on 2-3 April. For the second year running, a Nisa partner bought the entire Evolution format store that was on show. A total of 40 retailers requested re-merchandising in order to get the optimum Co-op range as seen in the Evolution store. Furthermore, 20 stores made enquiries to be re-fitted to the latest Evolution format.

The number of prospects in attendance at this year’s event was also the highest yet and 58 stores signed up to Nisa, a 45% increase on 2018. Fifteen Nisa retailers signed up for the bespoke Evolution EPoS solution. Another 36 expressed an interest in the system and will be talking in more detail with Nisa’s IT team. The donation from the show to foodbanks was up on last year with more than 6.5 tonnes of produce shared between several charities.

WHOLESALERS

Conference first for Scottish Wholesale Association With the Scottish Wholesale Association’s 2019 Annual Conference less than a month away, details of the event’s first-ever Producers’ Exhibition – a collaboration with industry organisation Scotland Food & Drink – have been unveiled. The exhibition will give up to 20 local producers and suppliers a chance to meet buyers, decisionmakers and owners of SWA member wholesalers. Three areas of focus for this year’s conference are: technology, incorporating training; Scotland’s future growth opportunities; and food trends.

The conference will hear from Dawood Pervez, Managing Director of Bestway Wholesale; Colin McLean, Chief Executive of Dundee-based Spar wholesaler CJ Lang; and Chieh Huang, Chief Executive of the US-based online wholesaler Boxed. Entitled ‘What’s Next?’, the conference will incorporate several panel discussions with business sessions designed to enable greater businessbuilding opportunities between members. The 2019 SWA Annual Conference takes place at Crieff Hydro from 31 May to 2 June.

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News Extra

Scottish Wholesale Association

NewsExtra CIDER MARKET BEARS FRUIT – P44 WHOLSALERS ‘Have your say’ says Smith

Convenience Matters with the SGF News: there has never been more of it. On-line newspapers, 24-hour rolling TV coverage, websites, social media, blogs and vlogs. Within this explosion of formats, channels and platforms, news – in its traditional form of hard copy newspapers – continues to be an important category for local retailers in Scotland. Our Scottish Local Shop Report shows that the news and magazines comprises 3.4% of overall category sales in convenience. Surprisingly this is higher than milk, as well as savoury snacks, household and frozen foods. Importantly, purchasing news remains the top shopping mission for both the baby boomer and silent generation customer demographics (the over-75s). News will rarely be a single purchase for these customers: they will invariably purchase other items along with the newspaper or magazine. So, news drives footfall and increases basket spend. It’s no secret, however, that newspaper sales are in decline. Additionally, the younger customer demographics simply don’t have the same loyalty to traditional print media. Our view is that we need to work on a cross-industry basis with retailers, publishers and distributors, to ensure convenience store remain a destination for hard news. Could this be done via a stronger focus on local papers, linking the news category more explicitly to promotions? Could c-stores help to develop and distribute communityfocused newspapers? The news category was one of the key topics at the recent SGF Mini Summit – we will use this to develop our thinking on news and on the most effective way to engage with crossindustry stakeholders.

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SWA CALLS ON MEMBERS TO HELP SHAPE ITS VISION FOR THE FUTURE Scottish Wholesale Association Chief Executive Colin Smith called on all members to ensure they have their say in shaping the future strategic direction of the Association at a recent conference at Hampden Park.

Plans to revitalise the Scottish Wholesale Association and place renewed focus on training, building business, lobbying and legislation through greater collaboration, consultation and communication have been unveiled with members – wholesalers and suppliers – urged to get involved by helping shape the organisation’s strategic vision for the future. Speaking at an event in Glasgow, SWA Chief Executive Colin Smith said: “We are going forward with a clear focus on making our industry an attractive one to work in and highlighting a distribution channel that provides opportunities for businesses and their people. “The SWA wants to work with our members to create a legacy that helps inspire the next generation of wholesalers and gets the message cross that wholesale is not just about shifting boxes,” he said. “We are the wheels of the food and drink industry and keep it on the move.” Designed to bring the Scottish wholesale industry and stakeholders together to network and build stronger business relationships, the event at Hampden Park invited wholesalers and suppliers to share their own ideas for building a stronger trade

association around three pillars: training, business building, and lobbying and legislation. Smith said that the creation of a new Training Academy would enhance skills within the wholesale sector, raise standards and promote wholesale as a viable career path. “We already have a successful mentoring programme, so we plan to develop that. We also want to forge strong links with youth training agency Developing the Young Workforce, which aims to bridge the gap between industry and education. We need to show young people of all levels of educational attainment that wholesale is a viable destination and plays a vital role in keeping Scotland’s biggest industry – food and drink – on the move.” Touching on the trade association’s principles of collaboration, consultation and communication, Smith continued: “These principles – the three Cs – are designed to ensure that our members, their interests, their needs and their future success are all protected under membership of the SWA. So please tell us what you want from us – help us shape our strategic vision, tell us what training you need and how we can do more to help you grow and develop your business.” www.slrmag.co.uk

10/05/2019 16:25:57

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Comment

WHAT IS YOUR STORE FAMOUS FOR? As I write this month’s leader, I’m part way through the annual retail pilgrimage that is the on-the-road judging for the SLR Rewards. It’s always an exhausting but utterly invigorating few weeks as I stick a few thousand miles on the clock of my wee Renault Captur hire car. Seeing so many great stores in such a short period of time is always an enlightening experience and it never fails to amaze me just how creative, hard-working, committed, humble and downright brilliant Scotland’s local retailers can be. While I learn lots on my jaunts each year, there’s always one overwhelming theme that develops and this year it is unquestionably the growth of the ‘destination store’. We’ve talked about destination stores for years of course, but the last couple of weeks has made it clear that most, if not all, retailers I’ve spoken to during the judging have made becoming a destination store their number one priority. The logic is inescapable. With every cost rising – most notably wages – retailers are increasingly having to focus on margins and on squeezing every penny they can out of every square foot of space in their stores. The days of being able to rely on sales and profits by merely being ‘convenient’ are stone dead for most stores. Customers have so many options available to them these days that convenience is no longer the footfall driver it once was. These days it’s all about giving your customers reasons to visit your store rather than anyone else’s. Piling USP upon USP is where it’s at these days as retailers seek out unique or unusual offerings that over-ride mere convenience. A related factor is less and less reliance on pricing as the holy grail of USPs, and not before time. Trying to outgun competitors on price alone is a one-way race to the bottom where margins are sacrificed routinely – and it’s invariably retailers (rather than wholesalers or suppliers) who are doing the sacrificing. So I for one wholly endorse the commitment to creating destination stores. I’ve seen some fine examples over the last couple of weeks of stores offering their shoppers products and services they can’t easily get elsewhere in every conceivable category: craft beers, food-to-go, coffee, desserts, Skwishee machines, local butchery and bakery lines, post offices, gin, whisky, vaping, the list goes on and on. All it takes is a desire to do something different from your competitors and to do it well. At the end of the day, you can make your store famous in your community for almost anything, but it’s become clear to me that to survive profitably in the long term, your store will have to be famous for something.

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

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

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

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

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

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

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Cover Story

Sustainability Conference

Putting sustainability issues nearer the top of your agenda will be a key challenge this year for all local retailers in Scotland as SLR’s recent conference in Glasgow highlighted – but it turns out doing good can be good for business too. BY FINDLAY STEIN

SUSTAINABILITY: GOOD FOR YOUR COMMUNITY, GOOD FOR YOUR PROFITS

SLR | MAY 2019

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Sustainability Conference

Cover Story

t may well be the Blue Planet effect – named after David Attenborough’s documentary series that the revealed the shocking extent of plastic pollution in the Earth’s oceans – but sustainability has rapidly become a major issue in convenience retail, just as it has in the wider world. How retailers approach the sustainability challenge will be key to how successful they are in reducing their carbon footprint – but it could also have a major impact on profits too. Given the traditional strong bonds between local retailers and the communities they serve across Scotland there is a strong case to be made for the sector driving the environmental agenda, rather than sitting back and allowing the supermarkets and discounters to make the progressive changes and the positive headlines. More than just another tick-box exercise, developing a more sustainable business strategy offers real opportunities for retailers to improve their bottom line, the ultimate win-win scenario. To that end, SLR hosted a sustainability summit recently in Glasgow’s WEST Brewery. As the audience discovered, doing good is indeed good for business. Conference host and SLR Publisher Antony Begley kicked the event off with a case study of a retailer whose entire business is built around sustainability. Andrew Thornton’s Budgens store in Belsize Park in London hit the headlines at the tail end of last year when he publicly committed to drastically reducing the use of plastic packaging in his store. Andrew believes that in putting people and planet first, profits will follow. Putting his money where his mouth is, he launched 1,800 plastic-free SKUs in November – and promptly found himself plastered across pretty much every daily newspaper as well appearing on TV on Sky News and the BBC. The store uses a variety of plant-, paper-, glass- and metal-based solutions – including some never before seen in the UK – as alternatives to plastic packaging. For example, meat that was previously packaged in a Styrofoam tray and wrapped with clingfilm is now presented on a compostable tray made from sugar cane and covered with a biodegradable cellulose overwrap. The store features a total of 28 plastic-free zones and uses lots of graphics and theatre to get the sustainability message across. This signage is vital to the store’s mission: a great deal of the new packaging looks just www.slrmag.co.uk

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The event speakers represented a broad cross-section of categories and disciplines.

Sustainability is more important to shoppers than ever, said Tomra’s Truls Haug.

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Sustainability Conference

The Speakers Chairman: Antony Begley, Publisher, SLR

Truls Haug, Managing Director, Tomra Collections UK

like plastic it’s replacing. It is therefore important to communicate that it will in fact naturally decompose. The switch has clearly paid off: the store has seen a consistent sales increase of 4%, with no rise in food waste. There are plans to stock 3,000 plasticfree SKUs by mid-2019 and Andrew projects that the store will be virtually plastic-free in three years.

PLASTIC FANTASTIC?

Paul Wallace, Operations Manager, Keep Scotland Beautiful

Blake Gladman, Strategy and Insight Director, KAM Media

Kevin Sizer, Sales Director, Pastorfrigor

Julian Hunt, Vice President of Public Affairs, Communications and Sustainability for Great Britain, CCEP

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There might not be much of it in Budgens Belsize Park, but plastic is, as Tomra Collections UK MD Truls Haug pointed out, “a good material”. That’s why there’s so much of it about. The challenge, he said, comes in recycling it efficiently. With a nod to Blue Planet, he said that 32% of all plastic packaging made ends up in nature every year and that, if current practices continue, there will be more plastic than fish in the world’s oceans by 2050. However, as more large companies like Coca-Cola commit to using recycled raw materials in their packaging, there becomes an increased demand for recycled ‘offtake’. The problem is that currently only 2% of the planet’s annual plastic packaging production is reused for similar products. Haug highlighted how many of the world’s largest manufacturers have already made huge progress in tackling the problem by committing to 100% reusable, recyclable or compostable plastic packaging by 2025. Local retailers also have a huge role to play however and this is where companies like Tomra come in. It manufactures and supplies reverse vending machines (RVMs), which are going to play a crucial role in Scotland’s forthcoming deposit return scheme (DRS) and provide a reliable source of plastic that can recycled into food-grade packaging. SLR’s conference was the first opportunity for some of the audience to see an RVM in action; Tomra’s compact unit received a lot of attention from interested retailers. Based on the company’s experience in existing DRS markets, Haug explained how Scotland’s scheme might work. In

Norway, for example, suppliers pay an admin fee for every unit of product they put on the market to the DRS operator. It is the operator who then reimburses retailers for every container returned to their store. Return rates typically rise in proportion with the deposit value placed on containers, Haug said, adding that you rarely see empty bottles or cans lying in streets where a DRS is in place. Where similar scheme operate across the globe, recycling rates are exceptionally high: 98% of deposit containers are recycled in Germany; 92% in Lithuania; and 92% in Michigan. These figures show how a DRS scheme tackles another major challenge at the moment, the fact that a huge proportion of plastic bottles collected for recycling don’t actually end up being recycled. Haug said, for instance, that while more than 50% of the plastic bottles purchased in 2016 were collected for recycling, only around 7% were actually turned back into new bottles. Haug’s home country of Norway offers a useful insight into how DRS might work in Scotland, given the relative similarity of Norway to Scotland in terms of geography and population. In Norway, all outlets selling drinks with deposit are obliged to accept deposit bottles/cans and provide the deposit as cash. Some 93% of plastic bottles currently recovered through a network of 3,700 RVMs in grocery stores while only 7% are recovered via around 11,300 pick up points without RVMs. The potential business benefits to retailers of having an RVM are thus fairly clear in terms of customer loyalty, footfall and sales. Tomra’s take is that yes, DRS will see a major period of upheaval for the Scottish local retailing sector but that the results and the benefits to both communities across Scotland and the retailers that serve them will be substantial. Haug went to some lengths to highlight how it’s retailers who really proactively engage with the scheme who typically benefit most from an RVM. Only by engaging positively with shoppers will www.slrmag.co.uk

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Sustainability Conference

retailers gain maximum benefit in terms of driving volume and footfall. He said: “If you deliver a convenient and engaging recycling experience for consumers you will increase participation and drive volume through your RVM and your store. This is an opportunity to facilitate and educate consumers, modernise and enhance the consumer journey and drive community engagement.” Tomra even offers a free smartphone app that communicates with the RVM so that shoppers can use to track their recycling. The app can also be used to offer rewards to shoppers for achieving certain targets.

CUPS RUNNING OVER One major problem that is almost consistently overlooked was the topic of the next presentation by Paul Wallace, Operations Manager of Keep Scotland Beautiful (KSB). Single use cups represent a massive challenge that is only getting bigger. The majority are coffee cups, driven by the huge boom on on-the-go coffee. Scotland gets through 478 million of these every year, yet only 4% at most are currently recycled, according to Wallace. An astonishing 95 million of these are used in Glasgow. KSB is behind the Glasgow Cup Movement, a city-wide trial campaign to provide a solution to the issue of litter and waste produced from single-use cups. It came as a surprise to many in the audience when Wallace revealed that these cups could, in fact, be recycled. He was also keen to ensure that coffee drinkers weren’t singled out for criticism, as the cups in question are used for variety of beverages, both hot and cold. The campaign’s three-pronged approach seeks to change littering behaviour, transform recycling infrastructure and explore new ways to promote reuse. The Movement’s aims are to educate, inspire and empower organisations, from all sectors, and individuals to change their littering, recycling and reuse behaviours. The initiative also involves gathering robust evidence to inform policy and practice and, ultimately, to create a model of best practice that can be replicated in other major cities across Scotland. KSB is working with supply chain companies to ensure that there are accessible reusable products on the market. Wallace said talks with SGF were also ongoing about how to give c-stores access to value reusables, www.slrmag.co.uk

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adding that companies are now developing vending machines that can accept a reusable cup and apply a discount. The campaign runs until 2020 and has the support of a number of manufacturers, supply chain organisations and major retailers including Pret a Manger, Costa Coffee, Starbucks, Greggs and McDonalds. Wallace acknowledged the positive role the convenience sector already plays in engaging with local communities and urged retailers to get involved with the campaign. He said stores that offered coffee-to-go could help by simply displaying a sign that their cups were recyclable. Another option is to promote the use of reusable cups by offering a discounted price on drinks for shoppers bringing their own cups. For single use cups, however, the campaign aims to install units in stores and offer collection services for returned cups to help drive recycling rates.

KEEP IT REAL Doing good is clearly the right thing to do, but just why is it good for your business? Blake Gladman, Strategy and Insight Director for creative insight agency KAM Media, conducted a bespoke survey of 500 UK consumers for the conference to find out why. His research focused on three areas: what are the biggest issues impacting consumer behaviour; the power of social media in building a credible brand story; and the benefits to the bottom line and the halo effect on store performance.

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With single-use plastics the biggest environmental concern for over half (54%) of UK consumers, it’s clear that sustainability is something retailers should be taking very seriously. “The journey has to start now,” Gladman said, pointing out that the figure rises to 73% among the shoppers of tomorrow, the socalled Generation Z of 18-24-year olds. A great real-world example, said Gladman, is Pret a Manager who started to offer a 50p discount for reusable coffee cups in January 2018. The company now says it has saved 4 million disposable cups from being used. After discussing the work done by global manufacturers such as Nestlé and Unilever to enhance the sustainability credentials of their products, he also outlined how social media has changed the way the game is played in public, highlighting a number of consumerled campaigns attacking companies whose sustainability credentials have been less than impeccable. This, he said, has led to the creation of the notion of ‘glass box brands’. With information so easily shareable and discoverable by consumers, seeing now really is believing. Or, as Gladman put it: “Customers can now see through to the core of the brand – it’s now not just about what you put on the outside but it’s about how you think and behave on the inside that really counts to consumers”. The power of social media – both positive and negative – is massive, he believes, in shaping how customers viewed brands and retailers. He said Facebook was the best tool for independent business owners to connect to customers, stressing the importance of customer loyalty. He said a 5% increase in customer retention could increase profits by as much as 95%. And the best way to gain credibility and customer loyalty? By being authentic in your sustainability efforts. Gladman said consumers won’t mind if you don’t always get it right but would always appreciate the effort. He said doing the right thing will make your customers feel good and want to be associated with your store. This will then – as people like to portray themselves in a positive light on social media – generate lots of free advertising for you as they try to bask in your sustainability halo. Gladman hammered the point home by displaying a barrage of tweets and Facebook posts, all positive, about the aforementioned Budgens Belsize. MAY 2019 | SLR

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Sustainability Conference

Above – CCEP’s Julian Hunt says sustainability is top of the company’s priority list today. Right – Embracing DRS will be a key challenge for all local retailers next year. Far right – delegates discuss the issues of the day.

Summing up, Gladman advised that genuinely doing good is the right thing to do and it will make your customers feel good too. Authenticity and empathy builds stronger brand loyalty and advocacy – and loyal customers are more profitable and easier to sell to than new customers. Finally, as marketing can be expensive, it’s easier and more effective to utilise your customer’s word of mouth potential and piggy back your communication onto theirs.

COOL SAVINGS Refrigeration is, let’s face it, the biggest monthly bill that retailers have after wages, so it’s a critical area 20

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to examine when it comes to both minimising your impact on the planet and reducing your costs. Kevin Sizer, Sales Director of innovative refrigeration specialist Pastorfrigor who are working closely with Vertex in Scotland, tackled this challenge and offered an overview of the changes coming to the refrigeration industry as it adapts to curb climate change. The most pressing challenge for many retailers will be the fact that, as most will know, HFC refrigerants which have a high potential to increase global warming are being phased out. At the end of 2019 there will be a total ban on the sale of any new equipment using HFC refrigerants www.slrmag.co.uk

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Sustainability Conference

with what is known as a ‘GWP’ (Global Warming Potential) of more than 2,500. To put that in some sort of context, one of the most commonly used HFC refrigerants in local retailing – R404a – has a GWP of 3,922. Further reductions will be enforced by the end of 2021 of any HFC refrigerant with a GWP of above 150 and by 2030 all HFC will be naturally phased out. The changes, Sizer said, have pushed the cost of HFC refrigerant to an all-time high and warned that retailers could see servicing costs rise 10-fold. If your chiller uses the common R404a, then that little bill of £75 to have your chiller serviced is likely to now cost you £750. He advised retailers investing in new chillers to switch to either hydrocarbon or carbon dioxide refrigerants and to choose equipment with the lowest possible global warming potential. If possible, completely avoid any HFC refrigerants and never accept any with a GWP above 2,500. Sizer also predicted that there may be a shift back towards integral refrigeration cases and away from remote systems. Pastorfrigor is currently working on next-generation integral systems that can deliver a huge number of benefits to local retailers, particularly those with limited space and those with no external space available. These benefits include minimal GWP for refrigerant, efficiency levels on a par with remote systems, low noise, faster installation and very small quantities of refrigerant required as well as all the benefits of not having remote units outside. He commented: “There is no space needed for the remote unit outside, no planning issues, no need for noise survey or attenuation for external plant, no need for external power supplies or security caging and no fixed pipe or cables which gives flexibility for quick and low cost repositioning of sales floor layouts.” Sizer also showcased some of the latest energy saving developments from the refrigeration industry, including easy to retro-fit shelf-edge blades that reduce the “cold aisle” effect and yield a 20% to 30% energy saving in return for a £40 investment per shelf. Full vision PET doors that offer lightweight, double-pane insulation are also available. As well as cutting electricity bills, these tick a further sustainability box by being 100% recyclable. Sizer finished with a case study of work Pastorfrigor did in Scotfresh Dumfries where the company recently supplied the www.slrmag.co.uk

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new Genova R290 Concept range of cabinets to Scotfresh. Resource Efficient Scotland assessed the equipment and projected significant energy savings which allowed them to provide Scotfresh with an energy loan and a grant to pay towards the equipment. The Genova Range is now on the Resource Efficient Scotland list so this will be very easy for other retailers to apply for.

MISSION CRITICAL The event’s final speaker was Julian Hunt from Coca-Cola European Partners (CCEP). He holds the position of Vice President of Public Affairs, Communications and Sustainability for Great Britain and opened with the blunt affirmation that, for CCEP, sustainability wasn’t just good for business, it had become “mission critical”. He said that the company is focusing on three issues it thinks are the most important for societies and communities: reducing the amount of sugar in people’s diets, working within communities to help young people get into work and help people with special needs, and around packaging. Coke set out 18 months ago to make sure that all its packaging it puts on the market is as sustainable as it possibly can be. To that end, all packs are now 100% recyclable and contain a minimum of 25% recycled material. The company looks to increase this to 50% in a year’s time. Hunt said it was also constantly looking at ways reduce the amount of material used in packaging. He then touched on the importance DRS will play in ensuring a sustainable future – by greatly improving the quality of plastic that is recycled. Plastic quality is often a poorly understood issue among shoppers (and retailers) but Hunt outlined how the material that is currently collected from household waste in the UK is “pretty poor”, he said, which means it is hard to recycle into food grade plastic. Regarding the implementation of a scheme, he said it was critical that legislators understood that DRS should be not-for-profit, with no losers and no winners and that it should ultimately make the process easy for consumers to navigate. Hunt thought that the Scottish government will seek to include all beverage containers, including glass, in the forthcoming DRS implementation, which wouldn’t be CCEP’s choice. He said that markets that encompass

New refrigeration technology will be key in bringing down energy bills, says Pastorfrigor’s Kevin Sizer.

this breadth of product already exist though. With a large debate currently taking place in England around DRS, it was his hope that a UK-wide scheme could be implemented. But with consumers increasingly aware of sustainability, taking action and making choices, where does all this leave retailers? Hunt said there were lots of simple steps that could be taken to turn a challenge into an opportunity. He advocated a three-pronged approach that first meant making your business climatefriendly by using electricity from renewable sources, using HFC-free chillers and thinking about how stock is transported to your store. Ranging was important too, he said, and that retailers adapted to the evolving needs of consumers and kept up with the latest trends like low- and no-sugar soft drinks. The third piece of the puzzle meant becoming “a bit of an activist” and forging strong links with local community groups. Reiterating Gladman’s point, Hunt said retailers had to become famous for doing the “really good things”. Using social media to “communicate, communicate, communicate” what you’re doing is vital, while consistent visible in-store messaging is also simple but effective. It is exactly these tactics that have paid off in Andrew Thornton’s Budgens store. The challenge for the rest of us now is to bring sustainability to life in our stores across Scotland – and to do it profitably. MAY 2019 | SLR

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News

Products

Stoats unveils fully recyclable packaging... Porridge oats company Stoats

ProductNews

has revealed a fresh new look for the brand, including a revamp of its packaging, which is now 100% recyclable or compostable. The company is using Natureflex compostable film for its porridge bars and compostable PLA lining in its porridge pots. In addition, Stoats has reduced the level of sugar in its Porridge Oat Bars by up to 20% across its range.

...and so does Leerdammer Leerdammer has launched 100% recyclable packaging for all its Original and Light Slice Packs. The move means the equivalent of an additional 1.5 million plastic bottles will now be able to be recycled per year in the UK. Packs will be made from 24% already recycled materials. The announcment follows Leerdammer’s Free Grazing Promise in 2018. This ensures every slice of its cheese sold is made from milk which comes from free-grazing cows.

Give Trebor strength

IT’S TIME TO TALK ABOUT CIGARS – P46 SNACKS Pepsico gets behind ‘Better For You’ portfolio

Walkers offers taste guarantee on healthier options Walkers has launched its first-ever taste guarantee promotion across its ‘Better For You’ ranges, in a bid to drive sales and tackle misconceptions regarding taste in the segment. The ‘Better For You’ portfolio covers a range of PepsiCo products including reduced fat, wholegrain and corn snacks like Snack-AJacks, Sunbites and Walkers Oven Baked. Packs include a distinctive flash to generate stand-out on shelf, stating “Great taste guaranteed, or your money back”. Walkers Oven Baked, the fastest-growing brand in the segment, recently returned to TV with a new tag dedicated to the year-long taste guarantee campaign on the brand.

The campaign, a first for Walkers, will run across the three brands for the whole of 2019 and will be supported with a comprehensive marketing plan including TV support, influencer campaign, digital, on-pack flash, sampling and in-store stackers and POS. Michal Iwasyszyn, Marketing Manager for the Better For You portfolio at PepsiCo, said: “We know that shoppers’ number one concern when choosing smarter snacks is the perceived taste, but as soon as people taste our products, the repeat purchase rate is phenomenal. “Snack-A-Jacks, Sunbites and Walkers Oven Baked are all great tasting so we have no doubt that this campaign will be a real success for retailers.”

Trebor has launched ‘Give Me Strength’, a new social media campaign that showcases the

PETCARE

brand’s no-nonsense attitude,

Petcare promos from Mars

calling out relatable but exasperating everyday situations using the well-known British phrase. The humorous campaign runs until the end of the year. It includes a series of short films, and seeks to drive brand awareness with consumers and increase incremental sales for retailers.

Snapchat goes bananas Chiquita has teamed up with Snapchat to place SnapCodes on 200 million Chiquita Blue Stickers. These allow consumers to virtually “peel back” the sticker to tap into three new experiences including having your face turned into a banana, playing a banana-catching game and becoming a dancing banana. There’s definitely a recurring theme there. The campaign runs

Mars Petcare has launched two new on-pack promotions across its Pedigree and Dreamies brands. In the first-ever on-pack promotion to feature on 28-packs of Pedigree Dentastix, shoppers will be able to claim a free Pedigree SelfieSTIX online and enter a competition to win £1,000. The SelfieSTIX helps dog owners capture the perfect selfie with their pet by letting them mount a Dentastix on top of their phone. The promo runs until 1 July and Is supported by a £500,000 in-store and social media campaign. Promotional packs of Pedigree Dentastix 28s are available to retailers with a promotional RSP of £5. For cat owners, the Dreamies Golden Egg Hunt promotion gives owners the chance to win over 100 instant cash prizes comprising of 4 x £1,000, 100 x £100, plus a chance to win £1,000 in a prize draw. It runs until 19 May and is backed with online video advertising and in-store displays.

CONFECTIONERY

Cadbury Heroes expands range Cadbury Heroes has added two consumer favourites to its mix and given packs a fresh new look. New additions Dinky Decker and Crunchie Bits join the existing range, which includes Twirl, Wispa, Eclair, Fudge, Caramel, Cadbury Dairy Milk Chunk and Creme Egg. No chocolates have been removed. A new pack design encourages consumers to “share good times”. Crunchie and Double Decker are already top-selling shopper favourites as single bars; their inclusion marks the first change to the Cadbury Heroes mix since Wispa was introduced in 2014. Aislinn Campbell, Brand Manager for all-year-round gifting at Mondelez, said: “Retailers should expect the new-look range to drive stand-out on shelf and generate additional sales within sharing chocolate.” Retailers can telephone Mondelez on 0870 600 0699, email retailer.services@mdlz. com or visit deliciousdisplay. co.uk for more information.

until the end of May. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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Products

News

SOFT DRINKS Strong performance during a tough year

Soft Drinks surging ahead, says Britvic

Soft Drinks experienced an “unprecedented” year in 2018, according to Britvic’s latest review of the category. The report revealed that it delivered value sales of £2.2bn – an increase of 8% year-on-year in the convenience and impulse channel. This impressive performance came in a year that included the introduction of the soft drinks industry levy (SDIL), a CO2 shortage, the beast from the east and the hottest summer for 30 years. Surprisingly, only 8.4% of the total soft drinks market became levy liable last April. This reflects

the efforts made by manufacturers to reformulate their products. “The levy has left an indelible imprint on the soft drinks category,” said Rachel Phillips, Britvic’s Out Of Home Commercial Director. “The cola category has seen a significant volume shift from regular to low and no sugar options and products such as Pepsi Max have now gained significant share from full sugar products.” The Dilutes sub-category also blossomed postSDIL. Following several years of decline, total market value sales rose by 7.1% in 2018, helped by strong innovation and the launch of premium products aimed at adults. Looking ahead, Britvic has forecast that retailers can generate an additional £2,200 this year by maximising the sales potential of the category. Heralding the imminent launch of a retailer action plan, Phillips said: “We’ll talk about the balance between core, top sellers and new products, how retailers can make the most of events and a handy guide to stocking the right range for the type of shoppers who visit your store regularly.” The full 2018 Convenience & Impulse Britvic Soft Drinks Review is online at bit.ly/2vhUqPt.

King of Chill returns to 7UP 7UP has reunited with Fido Dido to “encourage people to slow down and appreciate the little things in life”. Fido Dido appears across 7UP Free limited-edition packs in an effort to drive visibility on shelf and to introduce the character and his mentality to a new generation of shoppers, bringing them into the category as part of the brand’s Feels Good to Be Free campaign. Rachel Phillips, Out-of-Home Commercial Director at Britvic, said, “The 7UP Free limitededition cans will be available as part of our hugely successful 2 for £1 PMP deal within the impulse channel, providing retailers with an additional sales opportunity. The launch of the limited-edition packs also ties in perfectly with the brand’s 90th anniversary celebrations. 7UP – and in particular Fido Dido as a character – embodies a feeling of being free to be yourself and we are investing heavily in the

CHILLED MMI drastically reduces number of milk and cream SKUs

Müller looks to a sustainable future

campaign to raise awareness

Müller Milk & Ingredients (MMI) is set to reduce plastic use by 400 tonnes per year while substantially cutting food waste and distribution costs as it simplifies its range of fresh milk and cream products. A rationalisation programme could see the company pare down the 835 fresh milk and cream SKUs manufactured across its network of six dairies by up to 40%. Müller said it would work collaboratively with customers to focus on popular SKUs and thus help support the long-term sustainability of the business. A lightweighting exercise, made possible by Müller’s in-house milk packaging capabilities, will also allow the firm to remove 400 tonnes of plastic from its core fresh milk SKUs.

with its biggest integrated

A typical dairy will process 90% of its milk fewer than 80 different SKUs; the remaining 10% accounts for 125 more. MMI’s boss Patrick Müller explained: “The environmental cost of persisting with some of these less common SKUs is significant, requiring our dairies to halt production whilst pack formats are changed for very small production runs, causing unacceptably high levels of product waste and energy use.

amongst shoppers. “The launch will be supported marketing campaign in the UK to date, including TV launching in June and running for six weeks to support the limited-edition packs. 7UP and Fido Dido will be front of mind for shoppers across the summer, a key period for retailers’ soft drink sales.” The 7UP Free limitededition Fido Dido packs are available until October and in addition to the TV campaign, will be supported by outdoor, video-on-demand, digital, PR, sampling and experiential activity throughout the summer.

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News

Off-Trade

Wine for any occasion Echo Falls has rolled out 30 limited-edition occasion labels

Off-TradeNews

across its top four still wine variants – Chardonnay, Merlot, White Zinfandel and Pinot Grigio. The new labels feature moments to share such as ‘It’s your birthday!’, ‘Fri-Yay’, ‘I love you’ and ‘Movie Night’. The launch is supported by a point of sale material including barkers, trolley bays and shelf wobblers. The limited-edition range has an RSP of £6 per 75cl bottle.

New look for Lamb Lamb’s Spiced Rum has reinvented itself as a “bold and playful brand” with a new label design that targets a younger audience of men and women aged 18 to 28. The drink’s familiar hexagonal bottle shape has been maintained. The

MAKE THE MOST OF THE VAPING OPPORTUNITY – P48 CIDER Festival favourite rocks up in off-trade

Kopparberg Black comes to convenience Following a successful debut in pubs and the festival circuit in 2018, premium fruit cider maker Kopparberg has launched its blackcurrant & blackberry flavour into the off-trade. Kopparberg Black is an apple cider with bursts of blackberry and blackcurrant, creating a dark, fruity flavour with 4% ABV. Best served extra cold, it offers drinkers a refreshing premium

alternative to other fruit ciders on the market. It is available now in packs of both 10 and four 440ml cans. Rob Salvesen, Head of Marketing at Kopparberg, said: “To further reinforce our position as the best-selling packaged fruit cider brand in the UK, it was a natural move for us to introduce Kopparberg Black draught to the off-trade.

“As the Dark Fruit category grows, as well as consumer demand for premium alternatives, we wanted to offer a credible solution to consumers who choose to drink Kopparberg for its superior taste and flavour.”

new look rum, which is now more golden in colour, is also supported by a new media

BEER

campaign. Lamb’s Spiced Rum

Foster’s takes a pop at craft beer with new ad

(ABV 30%) is available now in 70cl bottles (RSP £14).

Whisky industry doubles down on alcohol misuse The Scotch Whisky Association has announced that its Scotch Whisky Action Fund will be extended to at least 2023. The fund was set up in December 2013, and provides £100,000 annually to projects working to

Foster’s agony uncles Brad and Dan are back for a new multi-media campaign that sees them once again dispensing advice over the airwaves to Brits in need. The £6m marketing spend represents Foster’s biggest advertising investment in years and is estimated it will reach over 20 million people, including 88% of all 18-56-year-olds. It includes TV, video-on-demand, radio and social media activity. The campaign features a 30-second ad called ‘Brother-in-Law’, which takes a swipe at the rise of craft beer. In it, Harry from Abergavenny worriedly asks Brad and Dan what to serve his “fancy pants”

brother-in-law at a BBQ. “If he wants a la-di-da, give him a la-di-dager” they reply, encouraging the Welshman to pour the Amber Nectar into an old jam jar and call it something obscure. Nic Casby, Brand Director at parent company Heineken, said: “We wanted to bring back this ‘No Worries’ brand essence and encourage people to see the pint glass half-full with a dose of Aussie positivity! “This campaign will add some refreshment to the classic lager category and we’re sure consumers will love it thanks to its entertaining, relatable and memorable content.”

reduce alcohol-related harm. Applications for the 2019 funding round close on 18 July 2019. Details can be found at www. foundationscotland.org.uk/news/ scotch-whisky-action-fund/.

There’s nothing wrong with Neck Oil The Portman Group has decided not to uphold a complaint about Beavertown Brewery’s Neck Oil. A member of the public expressed concern that beer’s name implied that it should be downed in one, or ‘necked’. The Group said the phrase ‘neck oil’ was widely recognised as colloquial term for beer, and that Beavertown had used neck as a noun rather than a verb. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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Off-Trade

News

INDUSTRY INSIGHT New initiative targets £5.2bn off-trade growth opportunity

Diageo looks at bigger picture with new report Diageo has unveiled its latest Drinks Report, which outlines the growth opportunity for alcoholic beverages in Great Britain for 2019. The report identifies four key growth pillars for the off-trade: Q Balanced Choices – Mindful consumption is on the rise, with no and low beer offerings experiencing double digit growth. Q Make the Moment – Consumers are more and more looking for products that elevate their experiences. For example, “easy and impressive meals for company” is one of the fastest growing Google search terms for dinner parties. Q Exploration – Whether it’s whisky, gin, or beer, consumers are increasingly open to discovering new alcoholic beverages – and the rise of digital has given them new tools to do so. For example, seven in 10 adults have discovered a new beverage on social media and considered buying it. Q Celebration – Celebrations represent a huge opportunity for increased consumer spend. Diageo says stocking premium ranges, combined with effective merchandising, will encourage

consumers to trade up when shopping for special occasions. The Diageo Drinks Report combines expertise and insight from Diageo GB’s 14-strong Category Development team whose remit is to stay on top of the latest consumer trends and provide insight to retailers. The report kicks off a new category initiative – Transforming Drinks Experiences – which aims to help retailers decipher the latest consumer trends and unlock the £5.2bn growth opportunity the offtrade presents. Madeline Bedford, Diageo’s Senior Customer Category Manager, said: “Our Transforming Drinks Experiences initiative identifies ways retailers can take advantage of shifts in consumer behaviour and maximise profits from the total alcoholic drinks category.” The full report can be viewed at bit.ly/2DJfmUv.

VODKA

Smirnoff joins the infusions party Smirnoff has launched a very much on-trend new spirit drink, Smirnoff Infusions. Made with Smirnoff No.21 Vodka, it is infused with real fruit essence and natural ingredients to produce two variants: Orange, Grapefruit & Bitters and Raspberry, Rhubarb & Vanilla. Both are available now in 50cl bottles (ABV 23%) with an RSP of £14. The launch will be supported with a £4.4m marketing campaign which is predicted to reach 97% of the UK’s over-18s in its first year. For further information visit smirnoff.com.

WINE Own-label triumph for Spar

Spar Brand wine range wins Gold at 2019 Wine Design Challenge Spar’s 60-strong own label wine range has won the gold medal and overall trophy for Best Repackaged Wine Design at this year’s Drinks International Wine Design Challenge. Judges praised Spar’s own label wine offering – comprising the Taste, Alphabet and Regional Selection ranges as being “very well thought-through and executed”. Ed Evans, Head of BWS at Spar UK, commented: “We are extremely proud of our wine offering, which we created especially to target different customer missions at all price points, with great tasting wines. “These awards demonstrate yet again that Spar has created a range of wines which are relevant, credible and great value for money.” Christian Davis, Editor of Drinks International, added: “Bearing in mind these wines are for convenience stores, we were very impressed with the range – particularly the entry-level tier.”

www.slrmag.co.uk

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RTDs

Funkin launches nitro cocktails Funkin Cocktails has unveiled a range of RTD nitro canned cocktails. These are infused with nitrogen, which apparently delivers “a creamy foam head and a smooth and velvety mouthfeel which is usually only achieved through shaking a cocktail”. Available from May, the range features four serves: Espresso Martini, Passionfruit Martini, Amaretto Sour and the on-trend Pink Gin Fizz. Packed 12 x 200ml slimline cans to the case and with a 12-month shelf life, each cocktail has an RSP of £2.29 and is ABV 5%. Hailing the drinks as “must-stocks”, Ben Anderson, Marketing Director at Funkin Cocktails, said: “We would urge grocery, convenience and independent retailers to capitalise on the huge trend towards cocktail consumption by stocking our premium quality, standout Funkin nitro canned cocktail range.” Retailers should call 020 7328 4440 for stock enquiries or visit funkincocktails.co.uk for more information.

MAY 2019 | SLR

10/05/2019 16:26:20

News

Newstrade

NEWSPAPERS

Sun activations drive retail footfall The Sun’s Superdays promotion returned for the first time this year, offering readers two free tickets to Alton Towers Resort worth over £100. Readers could collect nine codes from the newspaper and bank them via Sun Savers for customers to bag the best dates. Around 365,000 readers went on a Superdays day out last year – 1,000 for every day of the year. And throughout 2019, Sun Superdays will also be promoting its three other top attractions – Chessington World of Adventures Resort, Legoland Windsor Resort and Thorpe Park Resort to boost newspaper sales throughout 2019. Sun publisher News UK has invested heavily in TV, radio and digital advertising across these promotions to reward print customers and drive additional footfall into stores. The promotion came at the perfect time for readers, as Alton Towers Resort unveiled its new Wicker Man rollercoaster – the UK’s first new wooden rollercoaster experience in 21 years. Meanwhile The Sun’s Hols from £9.50 campaign saw an increase in the number of bookings for 2019 and is set so send almost a million readers on holiday this year. The Hols from £15 campaign, which includes more destinations in Europe, also launched, sending readers on bargain holidays at 290 holiday parks across the UK and Europe.

News& Magazines BOOST YOUR PROFITS WITH ENERGY DRINKS – P74 CARRIAGE CHARGES News wholesaler gets the message

Retailers tell Menzies ‘Enough’s Enough’ on carriage charges 1,000 petition cards were handed in to Menzies Distribution’s Edinburgh HQ last month as retailers declared “Enough’s Enough” on “punishing carriage charges and poor service”. NFRN National President Mike Mitchelson and Vice President Stuart Reddish delivered around 1,000 petition cards to the senior Menzies Distribution management team at the news wholesaler’s Edinburgh head office last month, declaring that news retailers have had enough of “punishing carriage charges and poor service”. The NFRN delegation was joined by local retailers and NFRN Head of News Brian Murphy to hand over the cards which call for a full, independent and transparent review of the decision-making process behind carriage charges. The cards were accepted by Menzies Head of Customer Services Linda Gardiner and Channel Manager Retail Claire McDonald. Speaking afterwards, Mitchelson said: “Carriage charges are

unfair and illogical. News wholesalers and publishers have to wake up to the fact that when it comes to these costs, independent retailers have had more than enough. “Indeed, earlier this month retailers served by Menzies Distribution saw their carriage charges rise by an average of nearly 4%. This was a hit that few independent retailers could take, especially as it coincided with steep rises to national minimum wage rates, utility bills and pension contributions. “The fantastic response we have had to our petition shows how fired up members are about everincreasing and rip-off carriage charges but they blight our lives and threaten the future of small shops in their communities. “Each year these charges are progressively more damaging to our members’ businesses and

the news industry has to be aware that the next round of carriage charges could put many news retailers out of business.” The NFRN’s Enough’s Enough petition warns that the news retailers are at breaking point, as carriage charges have risen by 20% since 2013. If further reviews and rises continue to take place without consultation or without clear justification, local and traditional community stockists will close in great numbers, believes the organisation. “These closures will accelerate a sharper decline in newspaper and magazine titles being available to consumers,” continued Mitchelson. “I have had enough of carriage charges, and request that a full and transparent review of the decision-making process is undertaken by an independent party at the earliest opportunity.”

NEWSPAPERS

Scotsman publisher looks to cut 70 editorial jobs JPI Media, publisher of the i and Scotsman titles, has reportedly told staff that it is looking to cut up to 70 full-time editorial roles across the UK. JPI Media was created by former Johnston Press investors who took over the company in a pre-pack deal when JP went into administration last year, wiping out more than 60% of the £220m debt owed to them. It has emerged however that JPI’s daily national newspaper the i will be exempt from the cuts, with the bulk of the proposed redundancies likely to come from the company’s 170 regional titles. A further 10 roles are at risk across Scotsman titles which include the Scotsman, the Edinburgh Evening News and Scotland on Sunday. JPI said that the moves are in response to declining print advertising and newspaper sales revenues. The Scotsman publications have a combined circulation of just over 41,500, of which The Scotsman sells 16,349, the Edinburgh Evening News 14,195 and Scotland on Sunday 10,995, according to ABC figures to the end of last year.

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

SLR | MAY 2019

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www.slrmag.co.uk

10/05/2019 16:26:21

TRACK & TRACE IS COMING SOON Make sure youâ&#x20AC;&#x2122;re ready for the 20th May Mark Yexley,

Head of Communications at JTI, says:

Any Questions? It is essential that retailers and wholesalers are ready for the arrival of Track & Trace. We are aware that compliance can be challenging, but weâ&#x20AC;&#x2122;re on hand to guide you through the changes. If you have any doubt about what you need to do, visit our dedicated Track & Trace microsite, or speak to your JTI sales rep.

SLR Track&Trace May 2019.inddadvertorial 27 JTI A4_v1.indd 1

Scan the code below with your smartphone camera to access www.jtiadvance.co.uk/ trackandtrace Or speak to your JTI sales representative.

10/05/2019 16:26:21 18/04/2019 11:46

Inside Business

Research Digest

SHOPPER PESSIMISM AROUND BREXIT GROWS Research among 1,000 shoppers carried out in the first week of March by HIM has confirmed a growth in pessimism around the likely impacts of Brexit. Over four in 10 consumers (43%) believe their personal finances will be worse off as a result of Brexit. Younger age groups in particular feel apprehensive with over half (52%) of 25-34-year-olds believing they will be worse off. Almost three-quarters (74%) of UK consumers believe that food prices will increase after Brexit, with one in four expecting food prices to increase a lot. Older shoppers are more likely to be worried about rising costs of food, as are Scottish shoppers – 37% of Scots expect food prices to increase a lot. Most consumers (64%) are not planning on making any changes in their shopping habits in order to prepare for Brexit, but 13% of consumers are planning on “stocking up” on food. Mostly, these shoppers are stocking up on tinned and canned foods (74% of those stocking up on food have begun stockpiling this category). This is followed by packaged grocery products e.g. dried pasta, tea (52%) and cleaning products (45%). One in four consumers are planning on saving money or reducing their household expenses to prepare for Brexit. Just less than half (43%) of those saving money ahead of Brexit are doing so by cutting down on their food shop. It is older shoppers who are most expecting food prices to rise: among over-65s (who are trying to save money), 55% have cut down on their grocery shop, compared to just 37% of millennials. Given that older shoppers are the heartland of convenience, the worry is that this is the channel to see the squeeze. 28

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Number of Brits grocery shopping online falls by 4% Brits now spend £12.3bn on online groceries, up 9%, but surprisingly the number of shoppers buying online has fallen by 4%.

ritish shoppers spent £12.3bn on online groceries in 2018, up 9% from 2017, according to the latest data from Mintel – but the same data also reveals that the number of Brits buying groceries online has actually fallen by 4% between 2016 and 2018. Online grocery accounted for 7% of total grocery retail sales in 2018, up from 6.1% in 2017, but the total number shopping online for groceries dropped from 49% to 45%. One of the fastest-growing channels in the UK grocery market, the online grocery sector is still adding to its share of total grocery retail sales with the figure expected to reach £13.6bn this year. While 45% of Brits do shop electronically, it seems retailers are struggling to entice new shoppers to online grocery retailing. Younger Brits are still enthusiastic about the convenience of having groceries delivered, particularly those aged 25-34, with 61% of this group doing some online grocery shopping and over a quarter (27%) saying they do all or most of their grocery shopping online. However, middle-aged and older shoppers are more reluctant, and their reluctance is growing. While just over a third (35%) of those aged 45+ report buying some groceries online, the number of Brits in this group who have “never bought groceries online and have no interest in doing so” has grown from 34% in 2015 to 42% in 2018.

The most common reason why consumers do not shop online is that they prefer to choose fresh products themselves (73%). There are also concerns around high delivery charges (24%) and minimum spend (18%). With numbers shopping online for groceries stalling, many retailers have looked to introduce same-day delivery services as a way to grow appeal. However, such services often come with an increased delivery charge. When asked how much consumers would be willing to pay for same-day delivery, 30% of online grocery shoppers say they would pay £1–£2.99; whilst a further 27% say £3–£4.99. Just 19% of these consumers would be willing to pay over £5 and 24% say they would not be willing to pay anything for same-day delivery.

Retail employment falls for 13th consecutive quarter

he latest British Retail Council Employment Quarterly Report reveals that total retail employment has fallen for 13th consecutive quarter. The report says that “structural change in the retail industry triggered by the advent of online sales and other technologies” have led to total employment falling by 2.4% in Q1 2019. The numbers are undoubtedly at least partially a consequence of constantly rising wage costs and the steady decline in employment in the retail sector. This is in stark contrast to the UK economy as a whole which sees employment at the highest levels since ONS records began (76.1%) and unemployment at its lowest rate since 1975 (3.9%). Year-on-year retail employment fell by 2.4% in Q1 2019, with full-time employment falling faster than part-time employment, at 4.3% and 1.4%, respectively. This echoes Q4 2018, when full-time employment saw a reduction of 3.9%, compared to a 1.3% decrease in part-time employment. Total hours worked also fell – by 2.7% – in Q1 2019 compared to a year ago, a figure broadly in line with the 2.8% decline of Q4 2018. Full-time hours declined by 1.1% and part-time hours by 4.1%. These figures, coupled with the pattern of changes in full and part-time employment, give what the report terms “a more nuanced picture of the retail workforce restructuring”. Usually, a higher reduction in full-time staff would mean that the retailer seeks more flexibility by allocating more hours to part-time staff during peak hours when demand surges. However, in Q1 2019, part-time hours fell at a faster pace than full-time hours, confirming that there is a permanent shift in retail to lower employment and labour hours used. www.slrmag.co.uk

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10/05/2019 16:26:24

John Patterson | 2 Minutes

Inside Business

John Patterson The arrival of US vaping giant JUUL Labs has helped rouse the slumbering category in the local retailing sector – and UK Sales Director John Patterson believes convenience retailers will play a much bigger part in the category in the near future. JUUL HAS ENJOYED SPECTACULAR SUCCESS IN THE STATES. CAN YOU OFFER A BRIEF HISTORY OF THE GROWTH OF JUUL OVER THERE?

AND NEW EVIDENCE HAS EMERGED THAT SUGGESTS FEARS THAT VAPING WOULD APPEAL TO NONSMOKERS ARE UNFOUNDED?

JUUL was created in 2016 after 10 years of extensive research and development into smoking alternatives. In three short years, JUUL has captured over 75% of the US c-store vape market and is responsible for nearly 100% of the category growth over the past 18 months.

Only 4% of vapers have never smoked and there is ‘negligible use of e-cigarettes among never-smokers’ according to ASH Scotland. We are committed to only targeting adult smokers and totally discourage nonnicotine users taking up vaping.

JUUL IS NOW VERY MUCH ACTIVE IN THE UK LOCAL RETAILING SECTOR. CAN YOU GIVE US AN UPDATE?

HOW IMPORTANT IS YOUR COMMITMENT TO CHALLENGE 25?

We are less than a year old in the UK, having launched into the vape specialist channel in July last year, followed by Sainsburys in November 2018. We began our push into convenience in March 2019 through our dedicated field sales team.

In one word – absolute. No retailer can stock JUUL without signing up to Challenge 25. Range, support, retail furniture and merchandising may differ according to customer but preventing youth access to products is the one constant that applies across all accounts. No Challenge 25 sign up, no JUUL – it’s as simple as that.

ARE YOU TARGETING SCOTLAND? Very much so. Our early launch partners include JW Filshill and CJ Lang, and we are in discussions with other major wholesale operators in Scotland.

HOW IS THE CHALLENGE TO CONVERT SCOTLAND’S SMOKERS TO VAPING PROGRESSING? There are just over 800,000 smokers in Scotland – 16% of the population – and 68% want to quit. Governments, charities and public health bodies are receptive to vaping as an alternative to smoking, so we are pushing against an open door in that respect.

WHAT ARE THE MAIN CHALLENGES? The main challenge for converting smokers is simply that there is a real lack of understanding among current adult smokers about the benefits of switching. For example, 22% of still believe that vaping is just as harmful as smoking while a further 22% are unsure and 50% believe that nicotine causes cancer. Vaping is at least 95% less harmful than smoking and while nicotine is addictive, it is not cancer-causing and relatively harmless. www.slrmag.co.uk

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HOW WILL THE UK VAPING MARKET DEVELOP? C-stores will play a much greater role. If convenience retailers get behind the category, stock the right range of products and increase product visibility and training of store staff then we believe there is a huge opportunity to grow overall category sales. Product-wise we believe podbased systems like JUUL will continue to grow share of sales as these offer greater convenience and simplicity.

WHAT ROLE DO YOU SEE FOR SCOTLAND’S LOCAL RETAILERS? Scotland has seen the greatest decline in smoking in the UK, down from over 23% of the population in 2011 to just over 16% now. Smoking and smokers are habitual, and smokers don’t want to change their repertoires. They value their local store – where they have always bought their cigarettes – and we need to ensure that we make switching convenient for adult smokers. Therefore, smoking alternatives have to be stocked in outlets where smokers buy tobacco – and that’s why local stores will play a pivotal role in shaping the future for Scotland’s smokers.

FACTFILE John Patterson has spent the last 18 years working in consumer goods in the US and Europe. A native of California, Patterson moved to the UK in 2005 where he worked for Philip Morris International for eight years across numerous sales and commercial roles. In 2013, he joined the management team of NJOY vape, launching the brand into the UK, Ireland, France, Spain and Germany. Patterson joined JUUL Labs in February 2018 as the UK Sales Director.

MAY 2019 | SLR

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10/05/2019 16:26:50

Inside Business

Track & Trace | JTI

With just a few weeks left until Track & Trace comes into force, it is important to ensure that you are fully up to speed on the legislation. To prepare you for the 20 May deadline, SLR visited Best-one retailer Bruce Morgan of Brownlies of Biggar with JTI Area Sales Manager Richard McCaig to discuss Bruce’s concerns.

TRACK & TRACE: A RETAILER’S GUIDE

ith the new Track & Trace legislation only weeks away from implementation, it is important to ensure retailers are fully compliant come the 20 May deadline. With that in mind, SLR and JTI Area Sales Manager Richard McCaig visited Bruce Morgan of Best-one Brownlies in Biggar to discuss the legislation and address any concerns he had about the new regulations. Here, Richard explains how he answered Bruce’s questions, and provided him with the knowledge he needed at this crucial time. McCaig comments: “As a JTI Sales Rep, I visit many stores and am aware that compliance with legislation can be challenging. When I met with Bruce recently, he expressed concerns that seem common amongst retailers regarding Track & Trace. 34

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In particular, he was worried about the extent the legislation was going to impact his store, and how he operates his business. I wanted to assure him, however, that there will be minimal noticeable changes to retailers, and make sure he was up to speed with what the legislation will mean.”

1. WHAT IMPACT WILL TRACK & TRACE HAVE ON MY BUSINESS? Most aspects of Track & Trace will be applied earlier in the supply chain, with manufacturers and wholesalers more directly affected. Retailers will not need to scan products out, for instance, and there will be no direct impact on their customers. That’s not to say retailers don’t need to do anything. Before 20 May 2019, they will be required to apply for an Economic Operator ID Code (EOID), and a separate Facility ID

Code (FID) for each of their premises where they either store tobacco or sell tobacco products to the public. From 20 May 2019, they will need to provide their EOID & FIDs when purchasing Track & Trace-compliant stock. On the whole, we expect Track & Trace to have little impact on retailers and their business. In fact, the legislation should only have a positive effect on legitimate retailers, as it will mean stricter ramifications for those who are caught selling illicit tobacco.

2. WHERE CAN I GET THE REQUIRED CODES? Bruce was aware that he needed EOID and FID codes to be compliant, but didn’t know how or where to get them from. To obtain their EOID and FID codes, retailers must apply to the government www.slrmag.co.uk

10/05/2019 16:26:51

JTI | Track & Trace

Inside Business

appointed ID issuer, De La Rue. A phased application process (depending on the size of retailer) has been open since 23 April. All those retailers who applied for the codes can expect to receive them from 10 May – in time to be compliant before the deadline. If there are any issues with applying for or receiving the codes, retailers should get in touch with HMRC, who will be able to answer questions and assist during this pivotal part of the process.

3. WILL TRACK & TRACE HAVE THE DESIRED EFFECT IN THE FIGHT AGAINST ILLICIT TRADE WHICH IS HARMING MY BUSINESS? I explained to Bruce the background of the legislation, and how it is hoped that it will help fight the illicit trade. He was unsure, however, as to how effective this will be. While criminals will continue to counterfeit after the introduction of Track & Trace, they will now have to copy five new security features, which will make it harder for them to reproduce. Furthermore, the ID codes will act as a deterrent for retailers who are selling illicit tobacco alongside genuine as they could potentially lose the right to trade tobacco if found to be in breach of the Track & Trace legislation. Strict enforcement will be crucial for Track & Trace to have the desired effect on the illicit trade, but we’re hopeful those guilty of selling it will be caught and punished more efficiently. This, of course, will be of great benefit to law-abiding wholesalers and retailers, whose profits are being damaged by the sale of illicit tobacco. Still key to tackling the issue of illicit tobacco, however, is the ability to work together; from the local authorities and police, to the manufacturers, retailers, and wholesalers – right down to the customers. Retailers have a crucial part to play in fighting the illicit tobacco trade, and it’s more important than ever for them to report instances of illicit tobacco being sold in their area, rather than risking their tobacco business by engaging with the illicit trade. Any retailer who is aware of anybody selling illicit tobacco can use the easy-towww.slrmag.co.uk

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use, anonymous ‘report’ function on the www.jtiadvance.co.uk/DontBeComplicit microsite, or should contact the HM Revenue & Customs’ Fraud Hotline on 0800 788 887, Trading Standards on 03454 04 05 06 or the independent charity Crimestoppers anonymously on 0800 555 111.

4. WHAT SUPPORT CAN JTI PROVIDE ON TRACK & TRACE IMPLEMENTATION? Bruce and I had a very productive chat – and he was pleased that he had been able to have his questions answered. However, he also wanted to know where else he could find this information if needed. Our dedicated Track & Trace microsite – www.jtiadvance.co.uk/trackandtrace – went live in March, and we have been supporting its launch with a widespread trade media advertising and PR campaign, with a focus on educating those retailers and wholesalers who are unsure about the legislation. We strongly encourage retailers to visit the site to answer any questions they may have. Or, if they need more bespoke advice then they can get in touch with their local JTI Sales Representative, who will be more than happy to help. Overall, Track & Trace will require close

JTI is continuing to support retailers to ensure they are prepared for the 20 May deadline. Its dedicated Track & Trace microsite – www.jtiadvance.co.uk/ trackandtrace – contains all of the essential information needed to make sure retailers are compliant, including a full timeline and FAQs. Informed Sales Representatives are also on hand to answer any questions retailers may have about the impending legislation. collaboration between the manufacturing industry and our wholesale and retail partners and JTI is on hand to help guide them through the changes. MAY 2019 | SLR

10/05/2019 16:26:53

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10/05/2019 16:26:53

One Stop Franchise

Inside Business

NON-STOP GROWTH FOR ONE STOP The One Stop franchise is celebrating a remarkable period of delivering 16 consecutive quarters of growth for their franchisees since launch in 2014.

hen Tesco launched its One Stop franchise model in 2014 it not surprisingly caused quite a stir in the local retailing industry across the UK. The country’s largest grocer entering convenience was big news and a flurry of early wins with some bigname independent retailers joining One Stop set the tone. It hasn’t been all plain sailing, but One Stop has recently confirmed that since the launch back in 2014, it has achieved the remarkable feat of delivering 16 consecutive quarters of growth for its franchisees. The company says that since launch “growth has remained constant,” citing that as a clear demonstration of both the strength and longevity of the unique franchise retail model. According to One Stop, average like-for-like growth has improved on average by 6.8% across the franchise estate, with consumer buy-in of the franchise proposition leading to an average basket spend increase of over 5% and an average transaction increase of more than 11%. That sustained growth, particularly as the sector has been struggling to remain buoyant during a continuing period of economic uncertainty, has unsurprisingly been welcomed by One Stop and its 180-plus franchisees. Jonny McQuarrie, Managing Director, comments: “One Stop Franchise offers independent retailers the opportunity to operate their own business within a proven and successful retail model. It empowers

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local retailers to grow their business and secure their future in a fastchanging and highly competitive environment. “Our franchise model is fulfilling a real need for independent retailers and is increasingly being seen as the way forward to remain competitive, profitable and successful.” One Stop says it has been actively supporting this growth with initiatives such as the introduction of its Own Label products, refreshed Point of Sale (POS), and strong promotional concepts including meal solution offers, confectionery and alcohol offers and its £3 meal deal. The Own Label range now extends to 450 products across all categories, all backed up by ongoing quality improvements and cost reductions, allowing One Stop retailers to deliver quality and value to their shoppers. Nigel Prendergast, Head of Marketing at One Stop, says: “The Own Label range is helping to drive positive LFLs across multiple categories and increasing franchisees’ margins thanks to the breadth of range they can now stock. “Customers also love the range, quality and price – a combination that is proving to be successful for retailers.” McQuarrie concludes: “One Stop Franchise and its independent retail partners have invested heavily in the convenience store sector, providing increased support and a much-needed lifeline for independent retailers to not only survive, but to thrive within an increasingly competitive market.”

“One Stop Franchise and its independent retail partners have invested heavily to not only survive, but to thrive within an increasingly competitive market.” NIGEL PRENDERGAST

MAY 2019 | SLR

10/05/2019 16:26:54

Inside Business

Deposit Return Scheme

DRS: A RETAILER’S PERSPECTIVE

In the second of a new three-part series of forthcoming Deposit Return Scheme articles with reverse vending machine manufacturer Envipco, we speak to some Scottish retailers who are currently trialling Envipco machines to find out how their experiences have been in-store.

ENVIPCO: A FACT FILE Q Envipco is a leading global reverse vending machine (RVM) manufacturer with four decades of experience designing and operating packaging recycling solutions. Q The company is headquartered in the USA with a research and development hub in Germany. Q Envipco has a highly-experienced management team in the USA and Europe, and currently operates RVMs in Sweden, the USA, Australia, Greece, and France. Q Envipco offers a flexible range of RVM technology which is site-specific, including a compact Flex machine for settings with a low volume of containers and small footprint right through to breakthrough bulk feed technology for high-volume locations. Q Envipco’s Scottish Operations Centre with local sales and service support will open in June in Newbridge, Edinburgh. Q Visit www.envipco.scot to find out more.

s the introduction of a new Deposit Return Scheme (DRS) in Scotland next year draws ever closer, SLR is working with leading international reverse vending machine (RVM) manufacturer Envipco to help demystify what can seem like a complex and daunting challenge for Scotland’s local retailers. Envipco has been delivering tailormade DRS solutions across the globe for nearly four decades and has recently demonstrated its commitment to Scotland with the opening of a new permanent site in Edinburgh, headed up by new Scottish Operations Manager Barry Stewart. A native of Edinburgh, Stewart joins Envipco with extensive operational leadership experience in waste management, recycling, sales, civil work, and construction project management. Stewart will be working alongside new UK Managing Director Spencer Roberts. With an engineering background and more than 20 years’ experience in retail across a variety 38

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of channels, Roberts will now, with the aid of Stewart, lead Envipco’s drive into the local retailing sector in Scotland. Roberts told SLR: “This is a massive and genuinely exciting challenge for us, not least because I believe DRS and Envipco can play important roles in supporting the transformation towards a circular economy in Scotland. Envipco has been working with partners across the globe for almost 40 years to deliver efficient, effective DRS solutions and we intend to bring all that experience and knowledge to our work in Scotland. “As an engineer, it gives me pride to say that the company’s success has been the result of a future-facing approach and a sustained commitment to research and development. It’s this commitment that delivered our Flex machine, the most versatile small RVM on the market. It has set the benchmark for recycling technology for smaller stores and reflects our passion for providing customised solutions for any size of enterprise.”

FLEX ON TRIAL As part of Envipco’s commitment to understanding the specific needs of the Scottish local retailing sector, it recently installed its compact Flex machines in a three store trial, across central Scotland in order to gain real-world feedback from both retailers and customers about how the Flex was performing in a live store environment. Abdul Majid of Nisa Bellshill was among those testing the machine and told SLR that it has been a fantastic addition to the store. He says: “It’s only when you get an RVM into your store that you can really start to gain an understanding of how it works, how customers respond to it and how staff find it. I’m delighted to say that our Flex machine from Envipco has been a fantastic addition to the store in a number of ways. “The real beauty of the solution is that it’s so compact. It doesn’t take up much space on the shop floor at all – and that was a real concern before we started the trial. Floorspace www.slrmag.co.uk

10/05/2019 16:26:55

Deposit Return Scheme

Abdul Majid welcomes MSPs to his store to trial his RVM.

is obviously at a premium so the fact that it’s so neat is great news and we’ve been able to site it right at the front of the shop, next to the news stand, and on the way to the soft drinks fixture. That means everyone sees it and I think that has contributed to our customers getting used to using very quickly.” Abdul also appreciated the fact that the machine is essentially plug and play. He explains: “All you really have to do is site it then plug it in, it’s that simple. It’s also linked via wifi to Envipco so they can pull all the data they require without having to ask us for any input.” The system is also very simple for customers to use, says Abdul: “It’s completely intuitive for shoppers as all they have to do is insert the bottle or can into the machine and it automatically scans the barcode. In the store we offer either a 10p voucher per container that can be redeemed against purchases in the shop or they can choose to donate the money to charity.” The charity chosen by Abdul is his beloved St Andrew’s Hospice and he is delighted that over £1,000 has already been raised with the Flex machine. Abdul even vowed to his customers to match the figure raised so he expects to be handing over a very sizeable cheque to St Andrew’s Hospice in the very near future. Another retailer who has a hugely positive experience with the Flex is Edinburgh Premier retailer Dennis Williams. He says: “The machine couldn’t have been easier to install, run and maintain. It was up and running within half an hour of arriving at the shop, it was easy for customers to use and it’s easy for staff to empty.” As in Abdul’s store, Dennis has his recycled containers collected regularly by Viridor, on average twice a week. “We empty the RVM regularly then store the containers in a bin outside the store,” he says. “When it’s full we contact Viridor and they collect it next day. It’s simple and efficient.” Dennis also offers shoppers 10p per container that can be spent in the store or they www.slrmag.co.uk

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Inside Business

Dennis Williams also found the trial hugely beneficial.

THE FLEX RVM: FACT FILE

can donate the cash to a local good cause, in this case the local Pentland Primary School. “The response from the school and from parents and children has been overwhelming,” he says. “We always had a strong relationship with the school but this has helped reinforce it once more and I think it’s important that the kids, who are our next generation of shoppers, understand that we take our sustainability responsibilities seriously.” For Envipco’s UK MD Spencer Roberts, it’s music to his ears. “We take our commitment to our customers very seriously and we try to produce the very best solutions we can for their specific needs, so it’s wonderful to hear the positive experiences that Abdul and Dennis have had with the Flex machine. We believe the Flex with its ultra-compact footprint will be ideal for the majority of Scotland’s local retailers.” In next month’s issue we will be revealing the results of the trials in all participating stores.

While Envipco offers a range of RVMs for all sizes of stores, the supercompact Flex is perfect for stores with limited floor space available. Q Measuring just 60cm wide, the Flex machine flattens empty bottles and cans, allowing for storage of up to 600 cans and 300 plastic bottles. Q The unit can process up to 40 cans or PET containers per minute and can accept plastic bottles up to 3l in size and cans up to 1l. Q Plug and play – easy to use, clean and service. Q Customisable wrap, comprehensive digital marketing options, customised list of container barcodes accepted. Q Simplified servicing procedures ensure that the Flex remains attractive to customers while being easy to maintain. Easy installation as a stand-alone or fitted unit. Q Envipco’s Flex RVM is designed exclusively for small store formats, an important factor for local retailers for whom floor space is critical. Q The Flex is a simple, low cost option that is ideal for Scotland’s local retailers.

www.envipco.scot enquiries@envipco.scot t: 0131 241 1118

To find out more visit: e:

MAY 2019 | SLR

10/05/2019 16:26:56

BUSINESS BUILDING GETTING MORE OUT OF EPOS

PAYPOINT ONE:

THE ALL-INONE RETAIL PLATFORM

AS OUR SIX-ISSUE SERIES OF ARTICLES WORKING WITH PAYPOINT REACHES ITS CONCLUSION, WE RECAP THE KEY FEATURES OF THE PAYPOINT ONE EPOS SYSTEM AND HOW IT IS HELPING TO TRANSFORM OVER 13,000 RETAIL BUSINESSES ACROSS THE UK.

ver the last six months we have been working closely with PayPoint to help retailers leverage the power of their EPoS system, something that is mission critical in today’s complex convenience retailing environment. The series of articles the collaboration produced delivered a huge amount of practical, hands-on advice for retailers on how to make more of their EPoS system. PayPoint’s Marketing Director Steve O’Neill commented: “Our goal with this series of advice-led articles was to help our retail partners reduce costs, save time and increase profits. Implementing a cutting-edge EPoS solution like PayPoint One can deliver instant benefits for retailers that they will see in the till and on their bottom line immediately and all with no upfront outlay. “We have tackled a whole range of topics where PayPoint One can help deliver invaluable business insights that will help retailers make better-informed decisions in key areas like ranging, pricing, stock management and promotions management. “We have also worked with some of the 13,000 retailers who use PayPoint One to find out how they have used the system to reduce costs, save time and increase profits.” So it’s now time for a recap…

IF YOU ARE INTERESTED IN FINDING OUT MORE ABO

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10/05/2019 16:26:58

PAYPOINT ONE – OVERVIEW Launched in 2016, PayPoint One is the UK convenience sector’s fastest-growing EPoS platform with more than 13,000 retailers now using it to help them save time, get valuable business insights and grow profitability. PayPoint One is an all-in-one retail services platform that delivers the full benefit of advanced cloud-based EPoS technology, contactless card payments and PayPoint services, such as bill payments and Collect+. The 13,000 milestone means well over half of PayPoint’s independent retailers have now converted to the new platform. Its legacy yellow terminal will be retired later this year.

PAYPOINT ONE – THE APP Using the dedicated PayPoint One app, available on both Apple and Android platforms, makes running your store easier and quicker than ever before from anywhere in the world with instant access to a whole range of great functionality at your fingertips. The app lets retailers have their ‘store in their pocket’, allowing them to save time, get valuable business insights and grow profitability. Retailers can change prices and promotions instantly, control stock from anywhere and see sales in real time.

PAYPOINT ONE – THE BENEFITS Depending upon the package chosen by retailers [see below], PayPoint One delivers some massively powerful benefits that help retailers’ improve their store’s performance and enhance their all-important bottom line. Q Simple EPoS – scan products and take integrated card payments to provide a fast and efficient service at your counter. Q Easy setup – access to an online product file of over 100,000 SKUs, simply price your products as you scan, set up promotions with a step-by-step wizard and set up and print shelf-edge labels direct from your terminal in-store or using the app. Q Real time reporting – see sales and profit as they happen with the PayPoint One mobile app and website dashboards. Q Fully integrated services – bill payments and card services on board. One basket, one payment. Q Manage your newspapers and magazines with PaperRound integration.

Q Flexible product pricing – maintain pricing, promotions and price-marking across a range or category, including on the app. Q Advanced reporting and analytics – your data your way, with a unique approach to reporting: simply tag, group and filter sales to provide you with the most relevant data. Q Real time stock/inventory management – reduce admin to track sales, orders and deliveries allowing you to see and act on your stock holding in real time – and place orders and manage deliveries through the app. Q Multiple supplier integrations – set up and connect to multiple suppliers to receive price files and promotions unique to each wholesaler, simplify your ordering with one click submission and goods in.

PAYPOINT ONE – TAGGING PayPoint One’s ‘tagging’ functionality is exceptionally simple yet massively powerful, making it worth highlighting again here. Tagging allows retailers to quickly and easily add ‘tags’ to any product or group of products in their store. By tagging specific bays, aisles or even the entire store, retailers can quickly and efficiently generate hugely valuable insights that will help them run more profitable businesses. For example, tagging all the products on a promotional aisle-end allows retailers to then instantly run reports on the performance of that bay in a way that they would find difficult and time-consuming otherwise. Similarly, they could tag any bay they are particularly interested in, with the logical conclusion being to tag every bay in-store which would enable them to run detailed reports at the click of a mouse or tap of a smartphone screen. The reports that are generated can also be broken down whichever way you like: by cash profit, by sales volume, by sales value, by rate of sale. You choose. Tagging offers a new way of undesrtanding your store, as Costcutter Gateshead retailer Sajid Nazit says: “I’ve known about the tagging functionality since I first started using PayPoint One but I never realised the whole world of opportunity it opens up for me in terms of getting a really deep, powerful understanding of my store in a way that I’ve never had before.”

PAYPOINT ONE – THE OPTIONS PayPoint One is available in three different packages catering for all EPoS users from the novice trying EPoS for the first time to the experienced user looking for one of the most sophisticated solutions available on the market.

PRO PACKAGE – £30.75 PER WEEK The Pro package allows users to take their business to the next level with PayPoint’s most comprehensive package yet. A high quality, feature-rich EPoS including bill payments and integrated contactless card payments as well as symbol supplier links. Real time business management, anywhere, with cloud back office access on any device to help you stay in control of your business.

CORE PACKAGE – £15.38 PER WEEK FOR RETAILERS UPGRADING AN EXISTING SITE, £20.50 PER WEEK FOR NEW CUSTOMERS The Core package provides a cost-effective EPoS solution suitable for every convenience store. The package includes news management functionality, a free mobile app and more.

BASE PACKAGE – £10.25 PER WEEK Available exclusively to all existing retailers upgrading from the original PayPoint yellow terminal, this entry-level package is the easiest way to trial PayPoint One and gain many of the benefits of the fastest growing EPoS system in the UK.

MORE ABOUT PAYPOINT ONE, CALL 01707 537 014.

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10/05/2019 16:26:59

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10/05/2019 16:27:02

DON’T MISS THE MOST REWARDING NIGHT IN RETAIL!

Time is running out to make sure that you don’t miss this year’s SLR Rewards, the most rewarding night in local retail.

BEER & CIDER RETAILER OF THE YEAR Q Great Glen Trading Centre Q Spar – Hillfoot Garage Q Spar Renfrew CONFECTIONERY RETAILER OF THE YEAR Q Lifestyle Extra Motherwell Q Day Today Express Stenhousemuir Q Day Today Barassie, Troon E-CIGS RETAILER OF THE YEAR Q Spar Port Dundas Q Springhill Road, Shotts Q Greens Of Markinch

It’s almost time for the most Rewarding night in the UK local retailing calendar as the SLR Rewards once again recognises the best in the Scottish local retailing sector. Taking place on June 19th at the Radisson Blu in Glasgow, the event will once again see the entire industry gather to celebrate all that’s fantastic about this amazing sector.

FOOD TO GO RETAILER OF THE YEAR Q Spar Renfrew Q David Bryson & Sons (Londis) Q Wrapchic Londis Castlebank

Our unique model means once again that every winner on the evening will collect a hugely valuable Reward and, for the first time, we will be sending not one but two retailers to the NACS conference which this year will be held in Atlanta.

FRESH & CHILLED RETAILER OF THE YEAR Q Spar Renfrew Q Lifestyle Extra Motherwell Q Spar Garthamlock

The on-the-road judging is now well underway with the judges visiting almost 40 stores across Scotland and racking up more than 4,000 miles in the process. Retailers from all 40 stores will be there on the night, all hoping to be among the winners.

SOFT DRINKS RETAILER OF THE YEAR Q Spar Renfrew Q Spar Certas Forfar Q Greens of Markinch Q Londis Solo Convenience

There is literally no other event like it in the convenience retailing calendar and we want you to be part of it. To book your place, contact Kirsty at events@55north.com and make sure you don’t miss out on a truly unique event where retailers take centre stage.

SPIRITS RETAILER OF THE YEAR Q Great Glen Trading Centre Q Londis Solo Convenience Q Premier Linktown Local Q Day Today Doonfoot, Ayr BEST REFIT OF THE YEAR Q David Bryson & Sons (Londis) Q Day Today, Prestonpans Q Spar Blantyre NEW STORE OF THE YEAR Q Nisa Motherwell Road Q SPAR Halbeath Q Greens Local – Cardenden

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NEWSTRADE RETAILER OF THE YEAR Q Spar Renfrew Q Premier Turriff Q Pinkie Farm Convenience Store, Musselburgh Q Spar West Kilbride COMMUNITY INVOLVEMENT RETAILER OF THE YEAR Q Uig Community Shop Q Watsons Grocers and Daughters, Moniaive Q Bourtreehill Supermarket FORECOURT RETAILER OF THE YEAR Q Spar Clydebank Filling Station Q Costcutter Muir of Ord Filling Station Q David Bryson & Sons (Londis) POST OFFICE RETAILER OF THE YEAR Q Merchant City Post Office Q Spar Keith Q Spar Camelon Q Premier Coylton & Post Office RESPONSIBLE RETAILER OF THE YEAR Q Spar – St Georges Cross Post Office Q Day Today Lochside, Ayr Q Family Shopper Blantyre SUSTAINABILITY RETAILER OF THE YEAR Q Family Shopper Blantyre Q Giacopazzi’s – Milnathort Q Spar Renfrew TEAM OF THE YEAR Q Ninewells Gift Shop & The Little Gift Shop Q Barassie Day Today THINKSMART INNOVATION AWARD Q Spar Renfrew Q Family Shopper Blantyre Q Whitehills East Kilbride Q Premier Linktown Local SCOTTISH BRANDS RETAILER OF THE YEAR Q Spar Renfrew Q Spar – Hillfoot Garage Q Day Today Express Stenhousemuir

10/05/2019 16:27:10

Hotlines

Product News & Media Watch

Aqua Libra Cucumber, Mint & Lime Britvic The latest addition to the Aqua Libra range of infused sparkling water is available now in cases of 24, with an RSP of £1.15 per 330ml can. The launch is supported by instore, sampling and digital activity. A new range-wide pack design goes live this month, highlighting that Aqua Libra has no sugar, no sweeteners, and no calories. For more information call 0345 7581781 or visit britvic.com.

Oodles of noodles with new Asian Street Style range

Unicorn Fruit Flakes Fruit Bowl This mixture of Fruit Bowl’s topselling Flake flavours is made from soft, chewy pieces of real fruit purées. To order shelf-ready cases of 18 single packs (18g, RSP 49p) email info@primelinesales.co.uk. For outers of six multipacks (5 x 18g, RSP £2) email contact@fruitbowl.com or send an enquiry via fruit-bowl.com.

Thorntons tablets Ferrero Ferrero brand Thorntons, best known for its boxed chocolates, has launched a range of premium tablets. Developed with a younger audience in mind, Thorntons Tablets offers four variants: 70% Dark, Caramel Cheesecake, Honeycomb and Orange Crisp. All are available now from Bestway Wholesale in outers of 15 x 90g, with an RSP of £2.

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Unilever has launched Asian Street Style, a new range of Asian-inspired rice noodle pots under its Pot Noodle parent brand. Available now with an RSP of £1.75 per pot, the range comprises four variants: Thai Red Curry, Malaysian Laksa, Japanese Miso Noodle Soup and Vietnamese Beef Pho. The rice noodle range taps into the huge trend for world food flavours and popular street food dishes. It should also appeal to health-conscious shoppers, as each pot is low in fat and under 250 calories. In line with Unilever’s laudable bid to become more sustainable, the packaging is fully recyclable and consists of an aluminium lid, clear plastic pot and cardboard sleeve. The new sub-brand is set apart from Pot Noodle

Dairylea Snackers Mondelez Dairylea Snackers with Cadbury Giant Buttons (cases of 10 x 76.8g, RSP £1.65) is available in both plain and price-marked packs. Packs contain Dairylea cheese slices, crackers and Cadbury Giant Buttons. Also new are Dairylea Dunkers Cheesy Cones (cases of six 4 x 40 multipacks, RSP £2.71) and Dairylea Lunchables Streetfood Pizza (cases of 10 x 65g, RSP £1.65, plain and PMP). Email retailer. services@ mdlz.com for more details.

and is designed to stand out in its own right, looking to draw a new demographic of shoppers into the instant noodle category. Lena Portchmouth, Brand Lead for Mini Meals, Unilever UKI, commented: “Hectic lifestyles mean food has to fit around jam-packed schedules, so it’s no wonder food-to-go is experiencing such rapid growth. We know that shoppers are no longer satisfied with a sandwich or salad at lunchtime, instead they’re looking to try a variety of flavours as our taste palettes become more adventurous. “New Asian Street Style not only gives consumers a choice of tasty rice noodle recipes for lunch, it also taps into the growing desire for healthier food choices, which don’t compromise on taste. We’re giving fans a taste of Asia in one handy pot, what’s not to love?”

Shloer Pressed SHS Drinks Shloer Pressed is a sparkling fruit blend that’s available in three variants. These are inspired by topperforming fruit ciders: Strawberry & Lime, Rhubarb & Apple and Mixed Berries. All three are available in single 330ml cans (RSP £1, cases of 12) and 4 x 330ml multipacks (RSP £3.50, cases of six). For more information visit www.shs-drinks. co.uk. For sales enquiries call SHS Drinks on 01452 378555 or email info@shs-sales. co.uk.

Fridge Raiders Cheese and Nut Combos Kerry Foods This new range of bite-size cheese pieces combined with other savoury foods – such as nuts and crunchy corn – is available in Sea Salt & Pepper and Honey BBQ flavours in 40g single (RSP £1) and 3 x 40g multipack (RSP £2.50) formats. The launch is supported with a £1.5m marketing spend that includes TV, video-on-demand, digital, consumer and shopper marketing activity.

www.slrmag.co.uk

10/05/2019 16:27:13

Product News & Media Watch Coca-Cola Energy Coca-Cola Great Britain

Hellmann’s Big Night In Unilever

The first energy drink released under the Coca-Cola brand features caffeine from naturallyderived sources, guarana extracts, B vitamins and no taurine. It is available in 250ml cans and in two variants – with and without sugar.It features a distinct visual identity and is backed by an integrated marketing campaign. For more information, call 0808 1 000 000 or email connect@ ccep.com.

Full-size Bagels Warburtons

The four-strong range – Chilli Garlic Sauce, Chilli BBQ Sauce, Spicy Sauce and Tzatziki Sauce ¬– has been designed to complement pizza, chicken, Mexican and kebab dishes respectively. The 215ml premium-look deli-style bottles are fully recyclable and are available with an RSP of £1.89. The launch follows insight that consumers, especially those aged 16–35 years, are swapping nights out for nights in front of the TV with a takeaway.

Mentos Chewy & Fresh Perfetti van Melle

These new 80g pre-sliced bagels come in packs of five and are available with an RSP of £1.60 in two variants, Plain and Cinnamon & Raisin. The range is a step up from Warburtons’ Thin Bagels, which now account for over 20% of the bagel market. Bagels are currently the second biggest growing segment of the sandwich alternatives market.

Targeted at the on-the-go consumer, the 99g resealable bottles contain 90 mints in either Peppermint or Lemon Mint flavours. Both are available now in outers of six with an RSP of £1.70 per pack. Differing from traditional Mentos mints, the candy pieces are more compact to give a stronger minty experience. POS material is available from PVM. For further information call 01753 442100 or visit perfettivanmelle. com.

MEDIAwatch

Hotlines



When Mexican Flavour calls KP Snacks has unveiled a £4m marketing campaign for its new-ish McCoy’s Muchos, which launched in January. ‘When Mexican Flavour Calls’ features TV, video-on-demand, digital, out-of-home and in-store activity. It runs until the end of May. The ad sees flavour ringing up an unsuspecting couple whose kitchen subsequently tranforms into a fiesta.

Ribena’s Blackcurrant Artistry Ribena’s £6.2m marketing campaign looks to “tap into the enjoyable wellness credentials of the brand and its heritage as the master crafter of blackcurrants”. ‘Blackcurrant Artistry’ includes TV, video-on-demand, YouTube, out-of-home, social media and digital activity. A sampling campaign will also see 600,000 bottles of new Ribena Frusion given away.

‘Get Some Irn In You,’ says Barr Barr Soft Drinks is investing £6m in its flagship product with a new campaign spearheaded by two new ads which feature the Irn-Bru attitude and personality that the brand is famous for. It runs across a number of media channels, including TV and digital. One ad sees a shelf fixing unscrew itself in a bid to get some Bru, while the other features a rather unhappy wig.

Singing Strongbow’s praises Vimto Remix Sodapops IB Group This new lollipop is based on the Vimto Remix Mango, Strawberry and Pineapple variant and contains a sherbet core. It is also suitable for vegetarians, contains real fruit juice and is made with natural colours. It is available now with an RSP of 10p in tubs of 200 from Hancocks. For sales enquiries email andy. leslie@ hancocks. co.uk.

Serious White with Sourdough Allied Bakeries Allinson’s new premium 550g sourdough white loaf is available to Spar retailers at RSP £1.35. Wrapped in the brand’s distinctive paper packaging, it includes 12% rye and wheat sourdough, and replaces Serious White in Allison’s craft-inspired range where it joins Champion Wholemeal and Scandalous Seeds Wholemeal.

Strongbow has launched a new one-minute TV ad centred around “real pubs and real people”, as part of a wider multi-million-pound campaign. The ad features drinkers belting out the 80s classic ‘Together in Electric Dreams’. It ends with the familiar sound of the Strongbow arrows hitting the bar coupled with the line ‘Refreshing People since 1960’.

A big invite from Birra Moretti Birra Moretti has unveiled ‘Il Grande Invito’, the Italian lager’s biggest campaign to date which takes includes a TV ad backed up with digital, trade, PR and festival activity. Il Grande Invito, meaning ‘the big invitation’, sees “millions of people encouraged to gather together around the table over great food and beer, to make time for what matters – family and friends”.

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

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MAY 2019 | SLR

10/05/2019 16:27:14

Feature

Cigars

TIME TO TALK TO YOUR SHOPPERS ABOUT CIGARS? Interesting research from leading cigar player STG shows that more cigarette smokers than you might think are very open to trying cigars.

ne of the more interesting pieces of research in the tobacco market of the last year was a piece of work done by cigar market leaders Scandinavian Tobacco Group UK (STG UK) which examined the willingness of cigarette smokers to consider trying, and switching to, cigars. The Let’s Talk research of 1,000 UK adult smokers who visited their local convenience store at least once a week was carried out for STG by independent agency Censuswide UK and found that a lot more smokers than you might expect are open to the idea of at least trying cigars. Alastair Williams, Country Director at STG UK, explains: “Our research from the Let’s Talk campaign into shopper purchasing habits of tobacco showed that most smokers are actually very open to trying cigars and willing to consider switching given the right factors. The research findings highlighted that 59% of male smokers who don’t normally smoke cigars would be willing to buy them. Around one third (32%) of traditionally non-cigar smoking males said they would try cigars primarily for their taste while 27% would if they were cheaper than cigarettes.” The research also showed 79% of smokers who regularly visit a convenience store would try an alternative tobacco product, such as cigars, if it was recommended by store staff.

“These insights should help to dispel any misconceptions that cigarette smokers are not open to smoking or purchasing cigars and instead highlight that they are actually very open to recommendations from convenience store staff,” says Williams. “To make the most of this opportunity, then, it makes sense for retailers to invest some time in upskilling both themselves and their staff to grow their understanding on the different cigars available in each segment, and what type of consumer they are most suited for. In doing so, retailers will be able to offer customers the all-important guidance they need and desire, to help them make informed choices on what cigar would be right for them.” Why should retailers make that effort? In one word: profit. Cigars have double the profit margin of cigarettes and STG estimates that retailers would earn an additional £250 cash profit for each consumer that switches to cigars. “There is a clear chance for retailers to capitalise on this opportunity,” says Williams. “By taking time to talk to customers about their preferences and being able to offer advice on what cigars would fit their individual smoking tastes, retailers can push up their cigars sales and benefit from increased margins and higher profits.” Williams suggests Moments Blue is a great example of a product that delivers a great quality experience at a much cheaper out of pocket spend.

THE SCOTTISH MARKET Within Scotland, the total cigar market is valued at £17m and here, STG UK also stands out as the clear market leader with 58% volume share of the market, worth £8.7m [IRI, Feb 2019].

Leading cigar brands in Scotland (Ranked by Volume Share % – MAT TY; STG brands in bold)

1. Signature Blue (previously Café Crème Blue) – 20% 2. Moments Blue – 13.5% 3. Signature (previously Café Crème) – 9.7% 4. Hamlet Miniatures – 9.4% 5. Hamlet – 7.9% 6. Classic – 6.7% 7. Signature Red (Café Crème Red Filter) – 6.2% 8. Royal Dutch Miniatures – 5.8% 9. Henri Wintermans Half Corona – 3.7% 10. Royal Dutch Miniature Blue – 3% 11. Signature Finos Blue (previously Café Crème Finos Blue) – 2.4% 12. Meharis Red Orient – 1.6% 13. King Six – 1.1% 14. Henri Wintermans Panatella – 1% 15. Royal Dutch Elites – 0.9%

“STG estimates that retailers would earn an additional £250 cash profit for each consumer that switches to cigars.” 46

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Indeed, out of pocket spend was highlighted by the Let’s Talk research as the leading influencing factor on consumer tobacco purchasing decisions, ahead even of value for money. “Given the exemption of cigars from the restrictions around minimum pack sizes and standardised packaging, cigars are now the cheapest option available on shelf, which could be a key factor in the growing consumer openness to trying cigars,” says Williams. “However, it’s important for retailers to understand that value for money means different things for different people and stock a range of cigars at different price points to help retailers accommodate varying shopper needs.”

slrmag.co.uk

10/05/2019 16:27:16

NEW NAME

SAME CIGAR

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Feature

Vaping

VAPING MOMENTUM CONTINUES TO BUILD Despite a historically poor performance in the vaping category, Scotland’s local retailers are beginning to rediscover their passion for the category fuelled in part by innovation from the leading brands.

s has been well documented in the pages of SLR, local retailers undoubtedly lost their way over the last few years when it comes to vaping, taking only around 17% of the £1bn market in the UK, a remarkably poor performance given the huge role the channel plays in traditional tobacco sales. There are signs that the sector is getting back in the game and is finally taking the category as seriously as it deserves to be taken. This has partly been driven by the fact that the major manufacturers are now strengthening their grip on the category so it’s easier than ever for retailers to decide on a solid range and merchandise it well. No-mess pods look set to be the future for the category, certainly in convenience retailing, and much of the innovation – but not all of it – has been in this area. Helping drive new momentum in the category is Vype, the BAT-owned brand. It’s relatively recently launched Vype ePen 3 has seen huge growth. BAT firmly believes the ePen 3 is “at the cutting edge of closed-system vaping technology, providing a genuine alternative to adult smokers and vapers looking for a smoother and more satisfying experience”. The company followed up the ePen 3 with the unveiling of its world-first ‘Puretech’ technology, a move BAT hails as revolutionary. Marina Trani, New Categories Group R&D Director, comments: “Like many other worldfirst innovations, the Puretech blade is a radical new technology that will change the game for ever, creating a step change for the vapour category and for the Vype family.”

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Puretech is incorporated in the new Vype iSwitch and Vype iSwitch Maxx solutions to give a more satisfying, smoother and richer vape with around 99% fewer toxicants than cigarettes. Instead of the coil and wick, Puretech incorporates an ultra-slim stainless-steel blade that heats the e- liquid to create vapour. The blade, which is around the thickness of a human hair, has a surface area 10 times larger than a traditional coil and wick heating system. The blade provides a much more precise and measured way to heat the e-liquid, increasing consumer taste satisfaction by ensuring a smoother, richer and more consistent vape, with no off notes. Additionally, the Vype iSwitch Maxx is BAT’s most interactive and connected vapour device. Bluetooth enabled, it connects with the MyVype app (available from Google Play) to give consumers full control – a first for the Vype brand. Through the app, consumers can tailor their device’s power setting; remotely lock the device ensuring no one else can use it, monitor puff count, battery level and device performance to track their usage; and also have access to tips and news. Gemma Webb, General Manager at British American Tobacco UK, commented: “We are experiencing an extraordinary, once-in-a-generation coming-together of societal change, public health awareness and crucially, access to technological innovation in the nicotine category. “This convergence of factors has created a unique opportunity for the industry and our business: the

opportunity to make a substantial leap forward in our ambition to provide our consumers with a choice of potentially reduced risk tobacco and nicotine products.” Nick Geens, Head of Reduced Risk Products at JTI UK, also sees huge opportunities for local retailers: “The UK is the second largest e-cigarette market with over 3.2 million adult vapers [YouGov 2018], and with the market expected to grow, the category presents an exciting opportunity for independent and convenience retailers. “JTI’s Logic portfolio now boasts an 11% share of the UK Independent and Symbol vaping market and a 10.6% share of the overall UK vaping market in traditional retail [Nielsen, 2018].” Geens urges retailers to ensure they work hard at the value end of the market. He says: “There is a clear trend towards value e-liquids with over half of e-liquid sales in the independent and symbol channel selling for less than £3.00 [Nielsen, Q4 2018]. JTI’s recently launched Logic EPIQ range taps in to this demand, with an RRP of £2.50.” Meanwhile, myblu, the UK’s leading closed kit device [Nielsen, Dec 2018] has been busy launching a new and improved Golden Tobacco flavour. Chris Street, Head of Trade Marketing at blu UK, comments: “We’re always looking at ways to strengthen our flavour portfolio using the latest in vaping technology to deliver innovative products that respond to rising trends. This is why we’re launching a new and improved Golden Tobacco flavour to complement our existing myblu range.” www.slrmag.co.uk

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Feature

Energy Drinks

INNOVATION RE-ENERGISES SALES A raft of innovative new energy drink launches has helped generate fresh consumer interest as well as sales at the till in this all-important category.

etailers won’t need reminding that the energy drink sector remains the star of the overall soft drinks category. It continues to go from strength to strength and is now worth over £1bn in retail in the UK [Nielsen, Dec 2018], accounting for between 60% and 70% of all soft drinks sales. While the category is now a mature one, a fresh burst of NPD is driving enthusiasm and interest in the category among shoppers. A great example is the launch of CocaCola Energy, a move that took much of the industry by surprise.

Coca-Cola Energy is the first energy drink released under the Coca-Cola brand and has created quite a stir among retailers. With the iconic Coca-Cola taste and feeling that millions of shoppers already know and love, Coca-Cola Energy features caffeine from naturallyderived sources, guarana extracts, B vitamins and, interestingly, contains no taurine. Available in 250ml cans and in two variants – with and without sugar – Coca-Cola Energy is already appearing in stores across Scotland. The combination of naturallyderived ingredients and the huge

MERCHANDISING FOR PROFIT Rich Fisher, Category Development Manager at Red Bull UK, offers the following advice on how to merchandise for profit: SPACE: Q Stock the most effective range to drive the greatest value for your store Q To maximise sales and profits, category space in-store should be in line with share of value sales

FOCUS ON TOP FIVE BRANDS: Q 50-60% of soft drinks space should be allocated to the top five brands Q Ensure 60-70% of your soft drinks space is allocated to sports and energy brands, in line with share of the category

VERTICAL BLOCKING: Q Shoppers only see products within a 1.3m breadth Q Vertical blocking helps shoppers to easily find the product they are looking for, improving their ease of shop

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power of the Coca-Cola brand already appears to be landing well with both shoppers and retailers. Javier Meza, Coca-Cola Global Chief Marketing Officer for Sparkling Business commented: “We kept these two qualities – naturally-derived ingredients and the Coca-Cola brand – at the heart of how we developed the recipe and are proud to invite people to try a new and different energy drink that is designed to complement upbeat and busy lives.” The product has its own, individual brand identity and packaging but is also unmistakably a Coca-Cola product which will no doubt help drive trial. The launch of Coca-Cola Energy, however, does not mean that CocaCola European Partners (CCEP) has taken its eye off the leading Monster brand and energy range that it distributes in the UK under licence. Amy Burgess, Senior Trade Communications Manager at CCEP, comments: “Monster Energy has been the driving force in the sector for a number of years and is now worth more than £200m in GB, growing in value by over 20% [Nielsen, Dec 2018].” New innovation from Monster aims to keep that trend going with the www.slrmag.co.uk

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The No.1 soft drinks brand in GB* is entering into the energy sector, the biggest soft drinks sector for Convenience stores 250ml cans are available in two variants – with and without sugar

ALSO AVAILABLE IN PMP

Supported by a multi-million pound launch campaign Stock up now in the energy section of your chiller! To ﬁnd out more visit www.cokecustomerhub.co.uk or call Customer Hub on 0808 1 000 000 *Nielsen MAT w/e 29.12.18. ©2019 The Coca-Cola Company. All Rights Reserved. High caffeine content. Not recommended for children or pregnant or breast-feeding women (caffeine 32mg/100ml). Consume moderately. Niacin (vitamin B3) and vitamin B6 contribute to normal energy-yielding metabolism. Consume as part of a varied and balanced diet and healthy lifestyle.

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Feature

Energy Drinks

recent launch of Monster Espresso. Burgess explains: “The RTD coffee sector is set to more than double over the next 10 years and in March, Monster Energy unveiled its first range of RTD coffee drinks.” Available in a premium ‘touch ink’ black 250ml can, Espresso Monster is a unique blend of real brewed coffee and Monster energy that was designed to appeal to coffee lovers and energy drink fans alike. “Monster Energy’s new venture into the RTD coffee drink sector is available in two creamy variants – Espresso & Milk and Vanilla Espresso,” says Burgess. “The product is unique as it is the only cold coffee drink on the market with caffeine content that can rival a hot coffee and will enable us to attract new drinkers to both the energy and RTD coffee sectors, whilst delighting Monster’s core fanbase with our continued investment into exciting and great tasting innovation.” Also launched recently is Monster Ultra Blue, as Burgess highlights: “The Monster

MERCHANDISING FOR AN EFFECTIVE FIXTURE Amy Burgess, Senior Trade Communications Manager at Coca-Cola European Partners, has the following tips to help retailers merchandise for an effective fixture: Capitalise on people looking to enjoy their energy drinks straight away by focusing on your chilled soft drinks offering. Where space is available, secondary siting is a great way to help boost sales in-store by appealing to mission shoppers by highlighting the products they need. Once the main display has been utilised, showcase products in other areas such as close to the entrance of the store, aisle ends or adjacent to the till queuing lane to help attract shoppers’ attention and prompt purchase. Proactively look ahead to see which notable sporting, TV moments or events are coming up and consider putting together displays themed around these events to leverage the high level of interest that can be generated ahead of these occasions.

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Energy Ultra range is currently worth over £50m and has grown by £15.8m in the past year [Nielsen, Aug 2018] highlighting consumer demand for low-calorie, energy drinks that don’t compromise on flavour. “In response to this, we’ve continued to evolve our portfolio even further and create more choice for our growing fan base with the launch of Monster Energy Ultra Blue – a sparkling, citrus and berry, low calorie energy drink. “The new variant will help retailers to maximise on the demand for low calorie, flavoured energy drinks, which are in 59% value growth and the fastest growing segment in energy [Nielsen, Nov 2018]. Monster Energy is one of the driving forces behind this growth, contributing 88.1% value sales to the flavoured low-calorie energy segment [Nielsen, Nov 2018].” As with the entire Monster Ultra range, Monster Energy Ultra Blue is Soft Drinks Tax exempt and will appeal to people looking for a great-tasting energy boost without the calories. Meanwhile, that other giant of energy – Red Bull – has also been making good use of its NPD department with several creative and innovative new lines designed to help retailer grow their sales and bring new shoppers into the category. Mark Bell, Strategy and Planning Manager at Red Bull UK, comments: “Overall, Red Bull is growing at 8.4% in value and 12% in volume [IRI, Apr 2018], performing particularly well in Take Home (+8.0% value) and Symbols (+7.0% value) [IRI, Jan 2019].” A total of 6.79 billion cans of Red Bull were sold worldwide in 2018, representing an increase of 7.7% against an already very successful 2017. Recent NPD will help to build on that success as Bell comments: “The UK’s number one energy drink brand, Red Bull, has continued the momentum behind its successful track record of launching innovative flavours, bringing a brand-new addition to the Editions range with the introduction of new Red Bull Coconut Berry Edition. “Launched for the first time in the UK, Red Bull Coconut Berry Edition offers the energy boost of Red Bull with the taste of coconut. The innovation comes packaged in a premium white can – a first from Red Bull. Launched this March, Coconut Berry is available in both Energy and Sugarfree variants (250ml) to provide consumers

with choice in the energy drinks category that Red Bull has always championed.” The new lines complement the launch last year of Red Bull’s Organics range which taps into the consumer demand for organically certified food and drink products. The lines are 100% natural and organically certified and the range includes Simply Cola, Ginger Ale, Tonic Water and Bitter Lemon.” Most recently, Red Bull extended its multipack offering with the launch of a new 355ml 4-pack. The launch comes as a result of the growing success of the 355ml format as the UK’s third largest sports and energy drink SKU in the UK [IRI, Sep 2018], adding more growth to the category than other branded pack in the market. The launch aims to satisfy consumer needs by offering increased choice of different energy sizes and opens up the range of occasions in which the product can be consumed. Multipacks are worth £167m, which equates to 12.5% of the overall sports and energy category [IRI, Sep 2018]. Also new to the category is Rockstar Twister from Barr Soft Drinks, a new range from Scotland’s largest big can flavoured energy brand [IRI, Dec 2018]. Available now in two flavours – Smashed Blue Raspberry and Wacked Red Berry – Rockstar Twister taps into the current trend for retro flavours, offering a full flavour hit at only 25 calories per 100ml. “The introduction of Rockstar Twister will kickstart energy drinks innovation for 2019, offering the great tasting, full flavour energy boost that shoppers have come to expect from Rockstar, with a retro twist – and fewer calories,” says Adrian Troy, Marketing Director at Barr Soft Drinks. Troy recommends that retailers merchandise new Rockstar Twister as part of the ‘on the go’ section of the chiller to meet the needs of busy shoppers. Over one in three purchases in this section is an energy drink, so it’s crucial that retailers offer the right range of products and flavours to meet this need. www.slrmag.co.uk

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MORE WINGS TO MAKE SALES FLY.

These days, more and more shoppers want a low-calorie alternative to their favourite drinks. That’s why the Red Bull Sugarfree range has grown, offering shoppers new flavours, new sizes and a choice in how they get their wings. With Red Bull Sugarfree growing at +15%*, selling Sugarfree alongside Red Bull Energy Drink can help your category sales fly. So if you want to give your business a lift, it’s easy to see:

*IRI £SALES (TOTAL COVERAGE | 52 WKS 20.10.18)

SLR May 2019.indd 53 RB_UK_9818_SF_RANGE_Trade_A4_Portrait_AW.indd 1

10/05/2019 16:27:23 25/01/2019 11:45

Available at GLencarse from 1st June

WWW.WHEyHEY.cOM

@wheyheyofficial SLR May 2019.indd 54

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Healthier Snacking

Feature

HEALTHY GROWTH LOOKS SET TO CONTINUE

New research from HIM suggests that healthier eating will be important to 20 million people in the next 12 months. SLR offers some options for retailers looking to meet that demand.

ith many retailers wondering whether healthier eating and snacking was simply a fad or would develop into a longer term trend, convenience retailing research specialists HIM have unveiled the results of a new study of UK consumers that points clearly to healthier eating becoming core to a huge percentage of the UK population over the next 12 months. According to the exclusive research from HIM and sister agency MCA Insight, the trend towards healthier eating is growing into what they term a ‘mega trend’, with two-fifths of all consumers rating it as highly important. The Healthier Eating Report 2019 was conducted through over 2,300 bespoke online consumer surveys, data from MCA’s Eating Out Panel that consists of 72,000 annual consumer surveys and extracts from HIM’s Healthy Snacking Report 2018 and MCA’s Operator Data Index. The report highlights that 39% of consumers rate healthier eating as ‘highly important’ to them, with over one-third of consumers eating more healthily than a year ago. Refined sugar is the main ingredient that consumers are trying to reduce, however it is vegetables that are set to win in 2019.

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Over 50% of UK adults intend to eat more vegetables, with 10% looking to switch to a vegetarian diet and 6% a vegan diet in the next 12 months. The report also highlights however that local retailers are falling behind their supermarket cousins when it comes to satisfying shopper demands for healthier options. Supermarkets have the highest satisfaction score with 67% net agreement that there are satisfactory healthier eating options in supermarkets. This is more than five times the net satisfaction score for convenience stores (13.6%). Gareth Nash, Consumer Insight Director at MCA Insight & HIM says, “The mega trend towards health continues to gather speed, presenting a huge opportunity for retailers to tap in to. Supermarkets are leading the way for grocery retail and providing consumers the solutions to eat healthily easily at home. With a smaller range it is more challenging for c-store retailers, however satisfaction stems from meeting the needs of consumers. Convenience retailers need to make their space work harder and place greater attention on the individual needs of their shoppers.” “Our report highlights high consumer demand for an expanded range and more promotional activity around healthier options. MAY 2019 | SLR

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Healthier Snacking

Vegan and vegetarian diets are becoming even more common place, so we expect to see more plant-based products to take centre stage in 2019.” With all of this in mind, SLR has looked at some healthier options available to local retailers that could potentially satisfy shoppers’ desire for healthier lines…

HOME GROWN HEALTHIER HEROES Scottish bakers Nairn’s have long been providing consumers with healthier food and snacking options – long before healthier eating became a mega trend – so the company has some lengthy experience in delivering high-quality products that deliver on both taste and nutritional value. As well as being world-famous for their oatcakes range, Nairn’s has been busy recently developing new lines appealing directly to those shoppers looking for healthier snacking options. The company has launched two new gluten-free products: Pop Oats – the first ever, gluten-free popped oat snack, and an Oat Bar range which has 40% less sugar than the average fruit/cereal bar. Nairn’s is actually the UK’s number two gluten-free brand [Mintel, 2017] and is taking free from snacking to the next level with the new lines. With very few oat-based alternatives to crisps on the market, Nairn’s longstanding oat expertise puts them at the forefront of oat innovation. Nairn’s Pop Oats aim to compete with other popular popped snacks from a taste and texture perspective, with the added health benefits of being made from glutenfree wholegrain oats. At only 83 calories per pack, they are a source of fibre and have 60%

HEALTHIER EATING – IN NUMBERS HIM’s recent Healthier Eating Report 2019 offers the following results: Q 39% of consumers rate healthier eating as ‘highly important’ Q Over a third of consumers eat more healthily than a year ago Q Refined sugar is the main ingredient consumers are trying to reduce Q Over 50% intend to eat more vegetables Q 10% are looking to switch to a vegetarian diet Q 6% are looking to switch to a vegan diet

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less fat than regular fried crisps. Pop Oats are available in three flavours – Salt & Vinegar, BBQ and Sour Cream & Chive – in 20g bags with an RSP of 80p. Also new is the Nairn’s Oat Bar range which plays straight into the growing ‘on the go’ occasion. The gluten-free flapjack-style bars contain 40% less sugar than the average fruit/cereal bar (compared to a reference set of over 150 other branded bars), with the added health benefits that come from being made from gluten-free wholegrain oats. The range is high in fibre and rich in vitamins and minerals, and all three bars are suitable for vegans. Oat Bars are also available in three flavours – Apple & Cinnamon, Cacao & Orange and Mixed Seeds & Protein – with an RSP of 89p. They are also available in multipack cases of four with an RSP of £2.49.

BETTER FOR YOU CRISP ALTERNATIVES Crisps giant Walkers has launched its first ever taste guarantee promotion across its ‘Better For You’ ranges, to help retailers drive sales and tackle the misconceptions regarding taste in the segment. The ‘Better For You’ portfolio covers a range of leading PepsiCo products including reduced fat, wholegrain and corn snacks. The ‘Taste Us. Love Us.’ campaign focuses on Walkers’ Snack-A-Jacks, Sunbites and Walkers Oven Baked lines. Michal Iwasyszyn, Marketing Manager for the Better For You portfolio at PepsiCo UK, comments: “We know that shoppers’ number one concern when choosing smarter snacks is the perceived taste, but as soon as people taste our products, the repeat purchase rate is phenomenal, for example the repeat purchase rate for Sunbites is an impressive 54%. SnackA-Jacks, Sunbites and Walkers Oven Baked are all great tasting so we have no doubt that this campaign will be a real success for retailers.” The packs will include a distinctive flash to generate stand-out on shelf, stating, ‘Great taste guarantee, or your money back’. An exciting opportunity for retailers, the promotion will drive engagement with this range which meets the consumer trend for smarter food choices. Walkers Oven Baked recently returned to television screens with a new tag dedicated to the year-long taste guarantee campaign on the brand. The campaign, a first for Walkers, runs across the three brands for the whole of 2019 and is supported with a full marketing plan including TV support, influencer campaign, digital, on-pack flash, sampling and in-store stackers and POS to land the messaging across all consumer touchpoints. www.slrmag.co.uk

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Healthier Snacking

THAT’S A CRACKER

MEAT THE DEMAND

Mondelez International’s Ritz brand is the number one selling savoury biscuit [Nielsen, Jul 2018] and, according to the company, offers consumers more choice in ‘permissible’ savoury snacks, while fulfilling the needs of the health-conscious consumer. Both Ritz Original cracker and Ritz Original Breaks were relaunched with a new recipe with 70% less saturated fat in September 2018, alongside Ritz Cheese crackers, which reformulated to contain 50% less saturated fat. Ritz’s new recipe is part of Mondelez’s global well-being strategy which commits to reducing saturated fat by 10% across its business by 2020. Additionally, Mondelez has the UK’s number one healthy biscuit within its portfolio, belVita Breakfast [Nielsen, Aug 2018], which the company says is the only breakfast biscuit with proven slow release carbohydrates. With one of the highest repeat rates in the entire biscuits category at 60% [Kantar, Aug 2018], belVIta has continued to lead the wellbeing biscuits and breakfast biscuits segment through continued investment in new products and large-scale marketing campaigns.

Healthier snacking means different things to different consumers, which presents opportunities for retailers when it comes to meat-based brands that are high in protein like Peparami and Jack Link’s. With the beef jerky and biltong category experiencing growth of over 10% year-onyear [Nielsen, Jan 2019] and the meat snacks category up over 9% in the last two years, there are plenty of opportunities for retailers to cash in. Jack Link’s Beef Jerky and Biltong are made using 100% lean beef with less than 80 kcal per serving and high in protein. Ideal for health-conscious consumers and savoury snackers who are looking for more permissible, yet tasty treats. The Jack Link’s products are ambient, driving value as the Jerky & Biltong variants provide longer shelf life, giving retailers reassurance on stocking products that are less likely to create food waste. Peperami, the number one meat snacking brand [Nielsen, Jan 2019] is another option that taps into this and is a must-stock.

Feature

SCOTTISH CLASSICS Paterson Arran has been making oatcakes since 1895 when John Paterson first began

W E N

Choices, choices, choices...

Now for something brand new and exciting from Nairn’s! For on-the-go snacks that are tasty, healthy and gluten free, look no further than our Pop Oats and Oat Bars.

a great source of fibre

Gluten free

no artificial Nasties

60% LESS SATURATED FAT**

40% LESS SUGAR*

Find out more and discover the range at

WWW.NAIRNS-OATCAKES.COM

www.slrmag.co.uk Client: Nairns Project: Pop & Bars SLR May 2019.indd 57 CMYK

*than the average branded fruit/cereal/flapjack bar. See website. **than the average fried crisp. See website.

Artwork

MAY 2019 | SLR

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A/C: Sallie

Date: 15.04.19

Version: 2

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Healthier Snacking

selling his wife’s home-baked creations from his horse-drawn van. Times may have changed, but the company still bakes its oatcakes slowly and traditionally using an 84% oat recipe. In 2002, the company switched from using palm oil to a more orangutan-friendly and sustainable olive oil. Now, they’ve gone one step further and moved to sustainable high oleic sunflower oil to make an even healthier, lower saturated fat product without compromising on taste. The company now produces a range of Oatcakes, Oatbites, and Oat Bars that tick the boxes for those consumers looking for healthier snacks, produced responsibly. The Cracked Black Pepper and Rough Oatcake varieties are low in sugar, high in fibre and wheat and are palm oil free. Paterson’s Oatbites are available in Cheese & Chive or Cheese & Mild Chilli variants and offer a healthier alternative to crisps. Brand new for 2019 are Paterson’s Fruity & Filing Oat Bars, available in two flavours: Raspberry & Apple, and Blueberry & Cranberry. A real product first for Paterson’s, the Oat Bars are the ideal snack between meals and the perfect fuel for your workout and are palm oil free, high in fibre and made with real fruit pieces. They are also vegan friendly.

monitor calorie intake while also being a costefficient purchase. The company also has active programmes across its portfolio to reduce saturated fat and sodium, as well as removing artificial sweeteners, colourings and flavourings. So far, the company’s products are 83% free from artificial flavours, 92% free from added flavour enhancers, 98% free from artificial sweeteners and 100% free from artificial colours.

GO NUTS WITH TREK

HEALTHIER SNACKS FROM WHEYHEY

Also high in protein is a new range of bars from Trek, with each 40g bar packed with crunchy roasted peanuts and containing 10g of plant-based protein while also being high in fibre and having less than 5g of sugar. The new Protein Nut Bar range from Trek is aimed at the increasing number of shoppers seeking out convenient, tasty and nutritious snacks to have on-the-go. There are four variants – Dark Chocolate & Sea Salt, Blueberry & Pumpkin Seed, Dark Chocolate & Orange and Coconut & Raspberry – providing a range with a bar to suit every shopper’s taste. The range is available in 40g single bars at an RSP of 99p as well as in multipacks of 3 x 40g at RSP £2.50 for stocking alongside other snack and energy bars.

While many companies now offer healthier options, Wheyhey has been committed exclusively to producing healthier treats since its launch in 2013. The business started in 2013 in a flat in Brixton after the founders become increasingly frustrated by friends and family digging into so called ‘healthy snacks’ that were secretly extremely high in sugar. The company is now responsible for a range of treats that are naturally low in sugar and high in protein – principally because, as the name suggests, the company uses whey protein. The product range now extends to ice cream and brownies, all naturally low in sugar and high in protein. The brownie range is also gluten-free.

REFORMULATION DRIVES SALES Snacking business KP Snacks has been working on improving the health credentials of its products and the way they market them for several years. Its portfolio now includes 37 products that are 100 calories or fewer per pack including Pom-Bear, Hula Hoops Puft, Skips, Popchips and Space Raiders. In addition, multipacks remain popular to help with portion control – 54% believe that smaller-sized packs of snacks help them to 58

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LOTUS SEED INNOVATION Snacking brand Guruji has launched an innovative range of popped lotus seed snacks. Lotus seeds have been valued in India and China for centuries for their nutritional composition, and have recently hit UK shelves in a popped format. Presented as a credible alternative to popcorn and crisps, Guruji’s product range includes four variants: Smoky Thai, Cheesy Vegan, Lightly Salted and Salt & Cacao. Guruji’s popped Lotus seeds are handmade in the UK, naturally gluten-free, vegan, low in calories and are a source of plant-based protein. They also have a sustainable life cycle and are hand-farmed: no machinery is used in the process meaning their product is not extruded. Lotus seeds are grown using natural water supplies.

URBAN SLICKERS Adelie’s Urban eat brand offers a range of pots and boxes that provide one portion of a consumer’s ‘five a day’, as well as meeting shopper requirements for healthier products that are low calorie and incorporate fresh ingredients. The range includes a Pineapple Pot, a Melon & Grape Pot, an Apple, Grape & Cheese Snack Box and an Apple, Grape, Dairylea Strip Cheese & Mini Cheddars Snack Box. www.slrmag.co.uk

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Feature

Hanging Bags

HANGING IN THERE FOR BIG SALES

The hanging bags market continues to play a key role in driving impulse sales in stores across Scotland with many of the key manufacturers helping to maintain interest with new lines and innovation.

anging bags are now an integral part of every Scottish local retailer’s impulse offering, helping to drive up sales and profits from a relatively small space in-store. Innovation from the major manufacturers tends to come thick and fast when it comes to hanging bags and one home-grown company positively embracing the future is iconic Scottish producer Golden Casket in Greenock. In line with the shift to healthier treats, the company launched a new ‘Less Than 250 Calories’ range of hanging bags last month. The range provides the ideal low-calorie complement to the company’s hugely popular range of £onepounders. The initial ‘Less Than 250 Calories’ range comprises 10 ‘guilt free’ bags including gums, midget gems, boiled sweets and crumbles. The range means that shoppers in need of a treat can have one with a clear conscience. As the company points out, the fact that the bags contain fewer than 250 calories means that shoppers don’t even need to share them! RSP is 59p per bag. Susan Nash, Trade Communications Manager at Mondelez International, says sharing bags are now the fastestgrowing standard chocolate segment. The confectionery giant’s popular sharing bags

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are growing by 4%, driven by Cadbury and premium brand Green & Black’s. In February, Bournville moved into the sharing bag format for the first time with the launch of new Bournville Giant Buttons. The Bournville brand is worth £15.3m, with sales growing at 6.6%, so this latest launch will help to drive sales for retailers. Nash says: “The Cadbury sharing bag portfolio is now worth £126m and growing at 6.6% led by Cadbury Dairy Milk Giant Buttons which is the number one product in the segment. The introduction of Bournville Giant Buttons in a sharing bag format is set to meet consumer need for a dark chocolate offer.”

Mondelez has also introduced new size £1 promotional price-marked packs within its chocolate bags range, helping retailers to improve price perception among their shoppers and help increase speed of sales. The new 95g promotional £1 PMPs are now available across some of Mondelez’s bestselling bags: Cadbury Dairy Milk Giant Buttons, Cadbury Dairy Milk Caramel Nibbles, Cadbury Twirl Bites, Cadbury Bitsa Wispa and Terry’s Chocolate Orange Minis. Maynards Bassetts recently announced its first-ever sour Soft Jelly product – Soft Jellies Fizzy Fish. The product is the second in the brand’s Soft Jellies range, after the 2018 launch of Soft Jellies Wild Safari.

MERCHANDISE FOR PROFIT Mondelez International offers the following top tips for retailers: Q Confectionery is the most impulsive category in retail, so availability and ranging are really important Q Display a strong core range Q Allocate space according to sales Q Consider offering price-marked packs Q Make the most of seasonal opportunities Q Ensure NPD and promotional products are stocked in advance of media Q Create impactful displays to catch shoppers’ eyes – make the most of manufacturers’ POS

www.slrmag.co.uk

10/05/2019 16:27:36

Guilt Free Treats

... the same fabulous sweets! Fort Matilda Industrial Estate, Greenock, Scotland, PA16 7QF Phone: 01475 721099 • Fax: 01475 784644 www.goldencasket.co.uk www.millionssweets.co.uk • enquiries@goldencasket.co.uk SLR May 2019.indd 61

OnePounders 10/05/2019 16:27:38

UTC

PROBABLY BREWED IN NORTHAMPTON UTC’s fondness for a wee pint or two of Hugh Tennent’s finest is no secret – so he was fair chuffed to spy a brilliant bit of PR as he was shuffling past the Wellpark Brewery in Glasgow the other day. Carslberg had the temerity to take a billboard ad right across

GIN CATEGORY IN DIRE STRAITS For reasons not particularly well understood, UTC has long had a curiously enthusiastic loathing for ultra-bland English soft rock outfit Dire Straits. The mere mention of frontman Mark Knopfler’s name is enough to have the auld yin sucking his falsers and rolling his bloodshot eyes. So the news that Knopfler has launched his own special edition gin – complete with a wee trademark red headband – went down like a burning Spitfire at SLR Towers. That and the fact UTC thinks gin tastes like aftershave at the best of times. 62

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from the home of Tennent’s which clearly got the marketing boys and girls at the brewery a bit excited. Their response? A huge digital screen questioning the parentage of Carlsberg’s recently relaunched Danish Pilsner, suggesting it was “probably brewed in Northampton”.

WHAT’S WRONG WITH A BLOODY MARY? Not that he has a personal requirement for it, of course, but UTC was intrigued to hear about a new million-dollar idea: the ultimate hangover cure. As far as he’s concerned, a good, stiff Bloody Mary usually does the trick, but apparently there’s a healthier way of dealing with a hellish hangover and it’s called Survivor. According to the press release, Survivor is… well, it’s not entirely clear from the press release what Survivor is. However, it allegedly “mitigates some of the damage moderate alcohol consumption has, and helps balance social life, productivity, and well-being.” Not exactly renowned for his ‘moderate’ alcohol consumption, the auld yin was even less enamoured when it turned out that Survivor is some sort of new-fangled dietary supplement pill that you’re supposed to take while drinking. UTC had some vague memory of his auld mammy telling him not to take tablets while drinking and she wasn’t wrong on much, so he’s going to give this one a miss. Now, where’s that carton of tomato juice again?

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