SLR November 2016 by 55 North

NOVEMBER 2016 | ISSUE 163

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SARAH Oâ&#x20AC;&#x2122;NEILL

Cake joins the on-the-go bandwagon

SGF CONFERENCE FULL REPORT Over 120 independent retailers join suppliers and wholesalers to gather and discuss Thriving in an Era of Change

MINIMUM PRICING

Court decison on alcohol sales

TRENDING

What Brexit means to Scottish retailers

TECHNOLOGY

PayPoint One review

Combatting illicit trade | Latest product news | Christmas preview

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November 2016

Contents

Contents ISSUE 163

NEWS p4

Retailers should get emotional Research says get closer to your customers, and a Christmas rerun from Spar. p5 Minimum alcohol pricing Legal challenge quashed. p6 Tobacco sales not important says ASH Trade body disagrees, and a film star in a jam. p8 Take retailers out of the business rates trap SGF leader makes plea, while Nisa gets fresh figures. p10 News Extra EUTPD2 One group says this is not the time to take advantage of the demise of price marked packaging. p20 Product News Love soup with healthy Heinz, get your oats with Stoats, and trade high balls with David Beckham. p24 Off-trade News That famous bird makes a flying return and the beers of the year.

INSIDE BUSINESS p26 Illicit Trade The graphic truth behind the crime wave that’s swept under the carpet. p28 2 Minutes of Your Time Sarah O’Neill Premier Foods’ head of Cake on the Go makes an exceedingly good case. p30 Trending #brexit The panel reconvenes to discuss hard times or a soft landing. p31 Out and About Irn-Bru Xtra Roadshow Reaching retailers with taste tests and a man in a big orange and blue suit. p32 PayPoint One An in-depth look at the integrated payment and store management solution. p36 SLR Rewards winners An overseas success story, if a remote Orkney island counts, and a fabulous visit to Perthshire. Raising a glass this month to winners in the Community and Spirits categories. p38 Woodlands Local We get our loyalty scheme back on track, and take part in a training session with McEwans. p46 Hotlines A Hobnob multi-pack, and Andrex comes clean about its newly-branded products. FEATURES p48 Bagged Confectionery While there are challenges on the horizon for the category, there’s still plenty for the willing retailer to celebrate, and manufacturers are right there in support of this year-round earner. p54 Cigars The radical changes in the tobacco retail framework may have benefits for this premium niche. A marketing rethink could work well, suggest two industry leaders. p58 Crisps and Snacks One of the most innovative categories in the store, there’s always a new development to tempt shoppers through your doors. Get the latest low down here. p60 Christmas Preview Not long now. With everyone gearing up for the season, here’s a taste of the forthcoming frenzy, and a few ideas on serving up a treat for the festive shoppers.

ON THE COVER p14 Full coverage from the SGF Conference in Edinburgh. Keynote speaker Fergus Ewing MSP, recognised the true value of the sector to the Scottish economy.

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NOVEMBER 2016 | SLR

News RESEARCH New approach for growth in retail

Palmer & Harvey appoints Tony Reed as CEO Leading delivered wholesaler Palmer & Harvey (P&H) has handed Tony Reed the Chief Executive position, and made a

Stop thinking so rationally, IGD chief urges retailers

raft of other senior appointments too. Reed has almost four decades in the industry, mainly spent with Tesco. P&H has also appointed as Non-Executive Director Alistair Darby, formerly Chief Executive of Mitchells & Butlers, the restaurant, pub and brewing operator. The company, one of the UK’s largest private concerns, employs over 4,000 staff and services around 90,000 retail accounts in the UK.

Check notes from Bank of England The Bank of England has encouraged retailers to check banknotes over the festive period to tackle counterfeiting. Although counterfeits represent a tiny proportion of the banknotes in

UK food and grocery businesses must engage with shoppers on a much more emotional level than they

currently do in order to deliver growth. That statement is made according to new research by IGD, the food and grocery research and training charity. Speaking at IGD’s Big Debate conference in London recently, Chief Executive Joanne DenneyFinch (pictured) told delegates to let themselves think a little more freely. “In a business environment, we pride ourselves on thinking rationally. But let’s stop thinking so rationally all of the time and build our emotional intelligence.” Using an emotional gauge, developed by ABA research agency, has helped IGD study shoppers’ feelings in detail. The ‘5Drivers’ model identifies five clear emotional states: control, desire, belonging, immersion and freedom. IGD’s research found that the fastest-

growing formats of online and discounts are the best at triggering positive emotions, while many shoppers view the biggest retailers as ‘the establishment’. “The real crunch battles are ‘cook it at home’ versus ‘food to go’; discount versus full range stores; and physical versus online shopping,” explained Denney-Finch. “These battles are also critical for manufacturers. “Food, drink, health and beauty are some of the greatest pleasures in life. They should really stir the emotions – we shouldn’t be halfway on the gauge. We don’t have to sacrifice excitement for efficiency – we need both. So let’s engage differently with our customers and build a stronger and more powerful relationship.”

circulation, in the first half of this year around 152,000 forgeries were removed from the three billion genuine notes in the system. A Bank spokesperson suggested that along with other checks, simply compare a suspect note to one that you

SUGAR Call from newsagents for rethink

Education not legislation on sugar tax, says NFRN

know is genuine, if in doubt.

Reduced margins and reruns on Daily Mail The production glitch that delayed Daily Mail deliveries last month coincided with a price increase and margin reduction, according to the National Federation of Retail Newsagents. The publisher has already announced that the Saturday price of the Daily Mail has risen 10p to £1, the first increase in five years. At the same time the margin that retailers receive has been reduced to 21%, to bring the newspaper in line with that offered on its Sunday stablemate. The publication has rerun on 158 occasions this year, and has missed the cut off into wholesaler channels 742 times, the highest number of any

The National Federation of Retail Newsagents (NFRN) has reiterated its calls for education rather than regulation in its response to the government’s consultation on the proposed sugar tax. In its submission, the NFRN has warned that instead of reducing instances of obesity, a tax on sugary soft drinks will only hit hard working independent retailers who are already reeling from higher costs arising from the newly-launched National Living Wage, business rates and from complying with the tobacco display ban. NFRN Chief Executive Paul Baxter said: “It has been calculated that the cost on individual independent retailers will be in the region of £8,100 each per year in lost sales as manufacturers pass on their increased costs. This is a cost that independent retailers cannot absorb and will have to pass onto the consumer, hitting the poorest hardest.” Baxter also warned that sales and revenue losses could ultimately lead to job losses and even shop closures. Furthermore, the NFRN reminded the government that in Mexico a soft drinks tax only reduced the daily sugar intake by six calories per person. “There is no evidence to suggest that the UK experience will be any different. Education must cover all aspects of the sugary food and drinks sector, not just soft drinks,” Baxter concluded.

CHRISTMAS

Spar’s Twelve Deals of Christmas returns Spar UK is supporting the return of its 12 Deals of Christmas campaign with a raft of marketing activities. The campaign, which ran for the first time in 2015, delivers shoppers market-leading promotions and money-off deals every week. Offers will run on top brands like Smirnoff, Coca-Cola and Budweiser, as well as on Christmas essentials and Spar brand products. Digital activity includes a dedicated 12 Deals landing page on the Spar website, as well as ideas for last-minute Christmas recipes and party planning, such as ‘Alcoholic Fudge’ and ‘The perfect baked eggs breakfast’. The website will also feature videos, such as a ‘How-to guides’ for quick mulled wine and festive champagne cocktails. The promotion runs until early January.

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News ALCOHOL Scottish court clears way for minimum price per unit

Minimum alcohol pricing approved The Court of Session, Scotland’s supreme civil recourse, has backed the Scottish Government’s defence of minimum alcohol pricing. Judges at Parliament House in Edinburgh handed down their decision on 21st October, defeating an objection from the drinks industry which sought to block the implementation of legislation requiring a 50p per unit minimum retail price for alcohol. Although passed in 2012, with cross-party support, the Bill has not been implemented in the face of a four-year legal objection contested by the Scotch Whisky Association (SWA). The fight was elevated to the

European Court of Justice, which in turn referred the matter to Scotland’s legal system for resolution. Last month’s ruling, by Lord Carloway, Scotland’s most senior judge, effectively clears the way for the Scottish Goverment to act on its intention to quickly implement the Bill, which will have a consequent impact on prices in stores and licensed premises across Scotland. Health campaigners welcomed the ruling, which states that it will reduce consumption among harmful and hazardous drinkers, and that minimum unit pricing was a better alternative than further taxation.

REPORT Facts and figures behind the sector

APPOINTMENT Coca-Cola man takes office at IGD

The SWA had argued that free competition would be harmed, and was widely quoted as considering a possible further appeal, to the Supreme Court in London.

Pie in the sky for Spar Spar’s own label Luxury Mince Pies have been endorsed by the Good Housekeeping Institute, ahead of their Christmas launch at the end of last month. The December issue of the popular women’s magazine, on sale from November, highlights the taste and quality of the branded Luxury Mince Pies (rrp £2 for six).

Frozen sales hot up Despite an indifferent Scottish summer, UK-wide retail sales in frozen confectionery and ice cream were strong over the last 12 months. The latest data supplied by Kantar Worldpanel show value growth of 9.4% and 2.5%, respectively, year-on-year to 11th September 2016. Frozen confectionery grew in volume by 4.1%, with total ice cream growing in volume by 3%. Frozen potato products and frozen fish

Report reveals size of industry Officially launched at the SGF Conference in Edinburgh last month, the second edition of the Scottish Local Shop Report, compiled in collaboration between the SGF and the Association of Convenience Stores, revealed that the size of the industry is still formidable, despite some contraction year on year. In his introduction to the report, Pete Cheema, Chief Executive of the SGF, noted the fall in store numbers and overall employment, down approximately 300 and 3,000 respectively in the report, and blamed this on a combination of legislative and economic factors coming home to roost. However, keynote speaker at the SGF Conference, Fergus Ewing MSP, the Minister for the Rural Economy, referenced the report as a valuable tool to inform government of the part local retail plays in supporting both communities and the economy.

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CCEP’s Leendert den Hollander to take reins as IGD President Leendert den Hollander, VicePresident and General Manager, Great Britain, Coca-Cola European Partners (CCEP), has been appointed as President of IGD, the food and grocery research and training charity. Den Hollander is currently Vice-President of IGD. He will succeed Andy Clarke, previously Chief Executive of Asda, with effect from 1st January 2017. Den Hollander said: “I’m delighted to have been elected to the presidency by IGD’s Board of Trustees. This organisation has a unique role in bringing together our industry from farm to fork and with such important and high-impact charitable programmes.” Recent highlights of IGD’s work include the inception of a major new charitable initiative, IGD’s

Healthy Eating programme, and the nationwide roll-out of the Feeding Britain’s Future schools programme.

also saw rises in value sales of 2.1% and 1.5% respectively, suggesting that consumers are now seeking out higher value, premium products as more NPD becomes available. Brian Young, Chief Executive of British Frozen Food Federation, said: “The figures are very impressive and also they reflect the hard work put in by the industry to produce the wide range of innovative, great-tasting products now on offer.”

Takeover puts crunch in posh crisps Premium snack brand Tyrells has been bought by Amplify Snack Brands of America. The move should create hundreds of jobs for the Herefordshire-based maker of hand-cooked crisps. The new owners have said they plan to expand, as the brand now has access to the American market. Tyrells was sold by potato farmer and founder William Chase in 2008 for £40m. He has since invested a portion of the proceeds to set up a distillery making premium vodka and gin.

NOVEMBER 2016 | SLR

News TOBACCO Conflicting views on the future for retail sales

HubBox renews Click & Collect solution With a renewed service, HubBox (www.hub-box.com) plans to enable online retailers of all sizes to compete with High Street giants by offering them their own simple, flexible click & collect solution. Retailers can now utilise HubBox’s nationwide network of pick-up points at trusted local shops so customers can collect their orders at a time and place that is convenient for them. The company says click & collect has changed the way almost one in five consumers shop, and 74% of retailers see an increase in sales as a direct result of improving their delivery options. A report from Deloitte highlights that as many as 95% of consumers across Europe

ASH: c-stores profitable without tobacco Action on Smoking and Health (ASH) has come out robustly against the need for tobacco sales in the convenience channel, but a trade organisation has responded with dismay over what they say is the problem of illicit sales. New research commissioned by ASH shows that corner shops make on average a profit of only £242 a week on tobacco products compared to £2,611 from everything else they sell, and that for retailers, average profit margins are only 6.6% for the tobacco products they sell compared to 24.1% for all other products.

The figures, which come from ‘Counter Arguments: How important is tobacco to small retailers?’ – a joint project with the National Centre for Addiction at King’s College London, reveal the reality that tobacco sales are declining fast and today the majority of all small retailer transactions (79%) do not include the purchase of tobacco products. The ASH findings are backed up by a telephone survey of just under 600 local newsagents where most retailers (69%) admitted that they only made small profits from tobacco product sales. However, the National Federation

of Retail Newsagents has expressed disappointment at the report, saying it has failed to take into account the impact that illicit tobacco has on smokers and legitimate retailers. In a statement, the NFRN said sales have been badly hit by the widespread availability of illicit tobacco. This is a massive problem that still needs to be properly addressed, said the trade body, which adds that in addition to substantial sales losses for legitimate retailers and the impact it has on the Treasury, illicit products post serious health risks to those who buy them while undermining tobacco control measures.

plan to use Click & Collect for part of their Christmas shopping. Local retailers have, habitually, provided informal services which emulate the modern delivery and collection services offered by online operators. More and

HEALTH Food Standards Scotland says more education needed

Majority of Scots ‘not eating healthily’

more retailers are finding ways to incorporate their neighbourhood services into their business model, with generally good rates of success.

Pernod Ricard Q1 sales good

PRESERVES Fruity part secured

Film star to jam jar

With first quarter sales of over 2bn euro Pernod Ricard, the world’s wines and spirits number two, is well on track to surpass last year’s overall sales. Alexandre Ricard, Chairman and Chief Executive Officer said it had been a good start to the financial year, consistent with their full year guidance. “We confirm our FY17 guidance of organic growth in profit from recurring operations of between +2% and +4%. We will continue to implement our long-term growth strategy, focusing investments behind our priority brands, markets and innovations and remaining disciplined on pricing and costs.” The Pernod Ricard portfolio includes Absolut Vodka, Ballantine’s, Chivas Regal, Royal Salute and The

Food Standards Scotland has published the results from its second Food in Scotland Consumer Tracking Survey, showing that while most people in Scotland are aware of healthy eating recommendations, the majority do not follow them. This survey shows that while on average Scots recognised eight out of 11 healthy eating statements based on the principles of the Eatwell Guide, only two are consistently followed. A significant proportion of Scots feel that they have clear advice on what constitutes a healthy balanced diet. There was also an increase in

the level of concern about people in Scotland having a balanced diet since the publication of FSS’s first survey (up by nine percentage points since 2015). Heather Peace, Head of Nutrition, Science & Policy at FSS said: “This tracker survey helps explain why we are so far from meeting our dietary goals in Scotland, as most people say that they don’t follow healthy eating advice. Responsibility does not just fall on the individual to make the right choices, it falls on government and industry too to make sure that we all act together to tackle obesity and poor diet in Scotland.”

Edinburgh-based Shuiken Chan, better known as actress Sue Cann, and soon to star alongside Harvey Keitel in Madame, has her own release already on the breakfast table. The Edinburgh civil litigation lawyer turned actress and now successful jam producer recently launched her own brand, MyJam-uk.com, and even found a way to do what most manufacturers would kill for – a spot of product placement in her upcoming movie. “I decided to be bold at the last moment and asked the director if I could put my jams out for a breakfast scene, and surprisingly he said yes!”

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News BUSINESS Call for reduced overheads on retailers

Hartley in new jam at Nisa Nisa has announced the appointment of Peter Hartley as Independent Non-Executive Chairman of the member-owned group, following the resignation of Christopher Baker in September. Hartley has extensive retail sector experience at both

Take c-stores out of business rates, urges SGF

strategic and operations levels having held a number of CEO as well as finance director roles. At their recent AGM, Nisa Chief Executive Nick Read provided a positive trading update for the half year, with improved sales of £666m, up 1.1% on the comparable period last year. Nisa has received recognition for its turnaround, with an improved Net Promoter Score (NPS) of 52 (up from 34.5), and it welcomed 184 new member stores in the period under review.

Reminder on National Minimum Wage Just over a month after its introduction, employers have been reminded that they need to make sure workers are paid correctly, according to advice from Dan Docherty at Sage, the accounting, payroll and payment systems provider. “Whilst great news for employees,” he said, “the National Minimum Wage increase is the latest in a long list of changes that businesses need to implement.” Check with your accountant or HMRC for full details.

No more single-use bags from Lidl Lidl UK has pledged to remove single-use plastic carrier bags from sale across all stores in

The Scottish Grocers Federation has called for more small businesses – including convenience store retailers – to be completely taken out of the business rates system in Scotland. In its submission to the Barclay Review Group, the body established by the Scottish Government to reform the business rates system, SGF argued that such a move would be fairer and would make the system less complex, more efficient, and more cost effective. Such a move would make more frequent valuations easier, lead to fewer appeals and reduce the overall work load of the Scottish Assessors. The Federation is also calling for annual revaluations to ensure that rateable values maintain a close relationship to market conditions. In line with the ‘market approach’ favoured by SGF, occupier improvements should be excluded

from any revaluations. This would encourage investment and avoid an unfair tax burden being applied to any retailer who had upgraded and refitted their store. Pete Cheema, SGF Chief Executive, commented: “We know from the new Scottish Local Shop Report that in 2015 there were 3,000 jobs lost in the convenience store sector and store numbers fell by almost 300 – this is the first time we have seen reductions like this since 2012. We are now seeing the cumulative impact of constantly increasing business costs. We need to reduce the rates burden on retailers and taking as many of them out of the system as possible is the best way to do this.” The new Scottish Local Shop Report was launched at the SGF conference at the RBS Conference Centre in Edinburgh last month.

ILLICIT TRADE

JTI continues to tackle illegal tobacco Pall Mall News in Chorley, Lancashire, has been relieved of its gantry, following action by Lancashire Trading Standards officers. The owner, Siraj Adam, was fined and ordered to pay costs of over £700 as a result of selling illegal cigarettes and tobacco. “Yet again JTI has removed a gantry from a retailer found to be selling illegal tobacco,” said Charlie CunninghamReid, JTI’s UK Head of Corporate Affairs. “This clearly demonstrates our resolve in taking action against this activity. If this type of crime continues, customers will lose trust in their local shops as the false impression grows that all of the independent trade is rife with ‘dodgy cigarettes’. Our commitment to support the actions of Trading Standards and HM Revenue & Customs is steadfast and we must work together to take a stand against illegal tobacco.” In addition to this latest gantry removal, JTI has also informed Mala Mini Market, 371 High Road in Wembley, that they will no longer receive support and expertise from the company following a successful prosecution.

SYMBOL Good results from Nisa on the back of fresh produce sales

Fresh rewards for Nisa

England, Scotland, and Wales from 1st July 2017. Although not met with universal approval, since some comment says Lidl may profit from selling more expensive reusable bags only, the move away from single-use carrier bags, says the company, demonstrates its commitment to reduce unnecessary plastic waste, while also helping to strongly discourage consumers from a single use, throw-away

Nisa Retail has announced that its fresh produce range has experienced strong results with sales up 21.9% with the group’s fresh produce quality backed up with recent award wins. Shoppers, according to the group, have been snapping up iceberg lettuce with sales up 400 per cent, red grapes with a 330 per cent increase in sales, cucumbers up 240 per cent and green grape sales have doubled.

The strength of Nisa’s fresh produce offering was bolstered after it recently gained the title of Fresh Produce Retailer of the Year at the 2016 Retail Industry Awards, and a further 11 winners awards and seven highly commended rankings at the Wholesale Q Awards. Commenting on the increasing popularity of fresh produce, Stewart Smith, Trading Director at Nisa Retail Limited, said: “Shoppers are

increasingly using convenience stores for fresh produce so demand for high quality fresh fruit and vegetables has continued to soar.”

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Tobacco | Pricing

NewsExtra GET CONFECTIONERY IN THE BAG P48 EUTPD Retailers urged to price ‘sensibly’

Convenience Matters with the SGF Looking at the cost pressures impacting on retailers will continue to be a key focus for SGF in 2017. Yet there is another equally important side to this – the need for retailers to ensure ‘profit protection’. As reported in this issue, the illicit trade in goods, notably tobacco, is one of the most serious ways that legitimate and responsible retailers can be deprived of profits. The Tobacco Manufacturers Association has estimated that anywhere between £30,000 to £40,000 per year can be lost to the criminals who profit from the illicit trade. That’s bad enough, but that statistic hides the full magnitude of the problem, in that profits from illicit trade often go to support serious and organised crime. According to HMRC the trade in illegal alcohol and tobacco cost the UK government around £3.3 billion from lost duty in 2013/2014. SGF is the industry-sector lead on the Scottish Anti Illicit Trade Group. The Group co-ordinates prevention, intelligence gathering and investigation activity, with key stakeholders including HMRC, UK Border Force, Trading Standards and Police Scotland. We need safe and secure reporting systems, more resources directed towards enforcement activity and for illicit trade to be seen as a problem which impacts on businesses and the economy rather than simply being an issue about criminal justice. This month SGF will have a three-day exhibition in the Scottish Parliament. We will use this as an opportunity to tell MSPs directly about the key issues affecting our sector. MSPs must take an interest in how illicit trade is impacting on their constituencies and how it is bringing crime into our communities.

SLR | NOVEMBER 2016

NO IFS, NO BUTTS – STICK TO RRP, SAYS BATLEYS

The way things were: open gantries and pricemarked packs Research suggesting only 20% of retailers are sticking to manufacturers’ recommended retail prices following the removal of price marking on tobacco packaging has prompted Bestway’s Martin Race (pictured) to call on retailers to be ‘sensible’ in their approach to pricing on tobacco products. “There are a few cases where retailers can premium price tobacco using nonPMP stock without a loss of trade but even these have to price sensibly,” he said. “However, for the vast majority of retailers the emphasis has to be on offering value to the tobacco buyer. For those retailers who trade in a competitive environment and do over-price, this is a false economy which will only benefit retailers in the short term.” The legislative issue is placing pressure on retailers to be compliant throughout their entire sales cycle, and there is a spectrum of opinion on the matter. Some have expressed concern over their ability to retain sales and turnover, while others have been more laid back, saying that as long as compliance is adhered to, then everyone is in the same boat, and not gaining a

commercial advantage. Taking a short-term view on pricing can be detrimental in the long term, noted Race. “If retailers really want to grow their business they have to offer value to smokers otherwise they will take their custom elsewhere meaning that in addition to lost tobacco sales, sales across other impulse and grocery categories will also be lost,” he said. “We do not need to give the multiples a hand-up when it comes to attracting customers. Instead, retailers have to protect and develop their own businesses. I firmly believe that it’s ‘RRP or RIP’ for many independent stores as their businesses are at risk if reduced traffic comes through their doors.” www.slrmag.co.uk

Comment

KNOWLEGE IS THE KEY TO THE ECONOMY Information makes all the difference. It made the difference to Fergus Ewing MSP, when he addressed the recent SGF Conference in Edinburgh. He quoted the figures, like the 42,000 employed in the convenience sector, making this the biggest private sector employer in Scotland. He quoted the billions, like the £3.2bn that convenience stores cycle through the economy. He quoted them in a friendly, informed manner, from the pages of the Scottish Local Shop Report 2016, an interesting little read I’d recommend to you if, for no other reason, to emphasise the importance of this industry in which we all play a part. It’s the second year in which the SGF and its equivalent body, the Association of Convenience Stores, have published this annual statistical review on the sector. It’s an industry that plays a proportionately bigger part in the national economy here in Scotland than elsewhere in the UK. That a senior cabinet minister should have the facts at his fingertips is significant too, since the facts will be more vital than ever in the future. If there’s one thing politicians like more than standing up and making their voice heard, it’s standing up and making their voice heard with the facts to back it up. Now, since we have not only the facts, but a direct channel to government, in the shape of the Cross Party Group on Convenience Retail, the industry has never been in a better position to make its case. Our part, those of us not involved in the committee rooms and debating chambers of Holyrood and preoccupied with making our businesses work, should be apparent. The information we gather in our businesses contributes not only to better business for us, but to the overall picture that informs those who make legislation work, and make it work better for us. It’s not just that though. The better informed we are at business level, the better our businesses run. As delegates at Conference heard, technology makes possible an even more intimate relationship with our customers. The multiples have known this for years, and use it to try and steal market share from the convenience channels. That they’ve not succeeded is, in part, due to fighting back from local retailers, who use those same tools, and couple them with something bigger chains will always find hard to replicate – personal contact and a friendly, informed manner. As we work hard on our own Woodlands store, making it as up to date and appealing as possible, we know that it can only be a success if we play to our strengths, and those strengths are all about personal contact. When Fergus Ewing confidently quoted from the Local Shop Report, that information helped build a bridge to his audience. It’s probably why he was surrounded afterwards. If information is half the battle, and an ability to get along with people is the other, then we’re all just a bit like politicians ourselves, and that’s new information for us to take into the committee room, and on to the sales floor too.

EDITORIAL Publishing Director Antony Begley 0141 222 5380 | abegley@55north.com Editor Simon Walton 0141 222 5387 | swalton@55north.com Editoral Assistants Iain Hoey 0141 222 5385 | ihoey@55north.com Émer O’Toole 0141 222 5387 | eotoole@55north.com Web Editor Findlay Stein 0141 222 5389 | fstein@55north.com

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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 may change. This magazine is fully independent and not affiliated in any way with the companies mentioned herein. Scottish Local Retailer is produced monthly by 55 North Ltd.

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Cover Story

SGF Conference 2016

ALL CHANGE AT CONFERENCE A Cross Party Group, EUTPD2, living wage and Brexit. Throw in the launch of the second Scottish Local Shop Report, the possibility of a second referendum, and the inauguration of a new president. The theme of ‘thriving in an era of change’ was well chosen for the 2016 SGF Conference.

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SGF Conference 2016

Cover Story

BY SIMON WALTON

mpressive setting. Impressive theatre. The drama played out centre stage with a presidential handover from the understandably emotional Abdul Majid to the equally excited Dennis Williams, whose humility grossly understates his vast enthusiasm for the chain of office. Polar explorer in residence at the Royal Geographical Society, Craig Mathieson provided a fascinating after dinner speech, with a conquer-all spirit setting the tone for the two days of last month’s SGF Conference 2016. In his first speech as President, Dennis Williams said the SGF is evolving into a a body capable of fully representing its members across the industry in Scotland. “We represent the entire supply chain, and our expanded corporate membership programme has reached sectors with which we have never previously engaged. I know from experience how important it is to work in partnership with symbol groups and suppliers, and we are the only trade association that can do that. “Over 90% of Scottish retailers are actively involved in the community, which sets us apart from supermarkets,” said Dennis, before returning to themes of cutting crime, building relationships and legislation, including the national minimum wage and its implications for the sector. He also looked forward to the SGF celebrating its centenary in 2018 in better shape than ever. Concentrating on the challenging theme of Thrive in an Era of Change, Chief Executive Pete Cheema celebrated the establishment of the first ever dedicated Cross Party Group, meaning that the interests of the retail industry are heard as a single voice within the corridors of power at Holyrood.

“The 42,000 jobs that convenience retail supports in Scotland.” www.slrmag.co.uk

NOVEMBER 2016 | SLR

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SGF Conference 2016

STEVE O’NEILL, PAYPOINT “I’m part of the problem,” said the Group Marketing Director for the British company that provides the all-in-one payment handling devices that are familiar to retailers everywhere. “I use six methods of payment regularly, from cash to contactless,” he said, adding that even his cheque book was still in use. Technology, he said, was nothing without people, and there would always be change, making it difficult to place bets on the future. Cash is still king, he said, but that balance will tip in about five years. Among a fascinating array of stats, Steve noted that already, even among ‘C2DE’ economic groups, 52% used a smartphone and 49% a tablet.

DUNCAN TYRELL, WARBURTONS “Who could forget The Great Marmite Drought of 2016?” asked Category Strategy Controller Duncan Tyrell, to much laughter. In 12 years, the fast-rising bakers have become a leading brand and – as Duncan pointed out with slides from the company’s origins in Victorian Bolton – the principles of good, fast service, straight to the customer, have not changed, but the methods of business and demands of the consumer most certainly have. “Bakery is important to Scotland. One basket in four is based on bakery needs,” he said. “The staple remains the 800g loaf, but we still have to change. We need to disrupt in a positive way. The weekly, family shopping trip is in decline, and shopping is becoming more a part of our daily lives.”

MARCUS WRIGHT, RBS “As an economics advisor, I’ll attempt to make the subject exciting,” said Marcus Wright in welcoming delegates to the conference facilities at Gogarburn. That’s exactly what he did, rising to the challenge, and, as he said with a little tongue-in-cheek irony, attempting to clear the fog of the post-Brexit era. On the good side, high-skilled jobs are in growth, and on the downside, transport infrastructure still lags behind. The underlying trend for strength in the economy; some areas for improvement; and with the exception of the contraction in the oil industry, which wiped out an otherwise good result in 2015, there are strong figures for Scotland. “So it’s all Aberdeen’s fault,” as was commented on in conclusion.

CHRIS GALLAGHER, SCOTFRESH The Managing Director of the chain has been in retail for 19 years, and Scotfresh still innovates. He outlined his ten point F-Factor plan for successful retail. From a first priority to be safe, secure and legal, with training a vital part of the mix, through to fun and enjoying your business. “Fundays cost us nothing in money, and a fortune in effort. Trust me, engaging with community is worth the effort because without the community you will have plenty time on your hands.”

Not that the government isn’t already well informed about the contribution the sector makes to communities locally and the Scottish economy at large. In his keynote speech, Fergus Ewing MSP recognised that almost 42,000 jobs are supported by convenience retail in Scotland, citing among them as personal examples the two stores close to his own home and constituency in the Highlands. As the Cabinet Secretary for the Rural Economy & Connectivity, Ewing was keen to reiterate some of the headline figures from The Scottish Local Shop Report 2016, which was released at the conference. This, the second edition of the report, compiled in partnership with the Association of Convenience Stores, gives exactly what the political body needs – facts. As Mr Ewing joked, it’s a document free from waffle – something that his colleagues in Holyrood are all well capable of providing for themselves. Jonathan Kemp, the AG Barr Commercial Director, who chaired the second day’s presentations, said that the only constant in life was change. He pointed to a 1958 delivery truck, proudly advertising “children of all ages love Irn-Bru – 100% sugar”. He said he believed sugar is an opportunity, bringing products like Rubicon juice drink and Irn-Bru Xtra to market far sooner. Information is coming far sooner too, with the launch of the SGF app, used for the first time in earnest at the conference. Pete Cheema demonstrated it on stage, proving that the easy-to- navigate format could even tell him he was due on stage, to demonstrate the app. “It’s a huge step forward,” he said. “It’s a way to send news to members, so you won’t miss a thing.” Not even his cue to be on stage.

RETAILER PANEL ANDY BATT, VELOCITY WORLDWIDE Back to the Future was the blockbuster theme for Marketing Development Manager Andy Batt. “The past holds a comfort when things were not moving so fast,” he said. Using the 1985 movie favourite, he demonstrated how what was possible in cinema tech now, surpassed even that science-fiction yarn.“There have been three great revolutions in the past two hundred years, agricultural, industrial, and technological. The fourth – the digital revolution – is faster than any other.” Andy went on to discuss how technology and data will play an ever more important role in convenience retailing in the future.

SLR | NOVEMBER 2016

The Publishing Director of Scottish Local Retailer, Antony Begley, chaired a panel of prominent retailers including Harris Aslam, Dennis McCormack and Barry Hanif. Harris was the winner of the SLR Rewards Retailer of the Year, who was attending Conference just a few days before departing for Atlanta and the National Association of Convenience Stores Show as part of his SLR Rewards package. “It’s been a busy 12 months,” said the Fifewww.slrmag.co.uk

SGF Conference 2016

Cover Story

BREAKOUT SESSIONS

Imperial Tobacco hosted an informative hands-on breakout session looking at the legislative challenges facing retailers and manufacturers alike in the coming year. With EUTPD2 hitting home on 20th May next year, including cessation of non-compliant packs, retailers were urged to train not just their staff, but their shoppers too. With sizes changing, branding disappearing, and some variants delisted, Imperial Tobacco has taken the initiative of printing 250 information cards for every retailer in the UK - some 9m copies - to help through the uncertainty of transition and protect customer relations. Camelot Group had a prize winning National Lottery presentation – with baseball caps and frisbees – to introduce a ‘thank you’ video from Team GB Olympians, and a raft of fundraising stats relating to Scottish retailers. To date, 409 Scottish millionaires have been created, and on average £19,000 has been raised for good causes annually through Lottery sales in each store in Scotland. The Lottery is also launching a new, out of dispenser scratch card, exclusively through convenience channels, and also a “massive volunteering programme” running to March 2017. Mars have some of “the nation’s best loved brands”, including the eponymous bar, but also Wrigley gum and the Petcare range. In a breakout session with the family run company, issues like the proposed sugar taxation came up, and the manufacturer made their case for reducing consumption without reducing sales. Retailers were given the breakdown on purchase decisions, with impulse taking an unsurprising 71%. The presentation also outlined the support given to community sports projects – notably the Just Play initiative, which retailers can support through locally organised events. The Healthy Living Programme, an initiative of the SGF that’s caught the imagination of the Government, was given a showcase by Linda Williams of the Broadway Store in Oxgangs, Edinburgh. Their BIG Breakfast from the Healthy Living Team was shown as a potential revenue stream for willing stores, who can still get involved with local schools through the funded programme, providing breakfast clubs and healthy eating support. On the purely commercial side, it’s a very good way to get to know the next generation of customers, added Linda.

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SGF Conference 2016

“The Cross Party Group must be inclusive, and it’s up to all members to take an interest.”

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SGF Conference 2016

based retailer, in the understatement of day. Having launched Greens, his own store brand, he plans another two stores by the end of the year. Harris reckons food-to-go is “the way to go” but he’s keeping an open mind, and plans to report back on innovations and ideas picked up during his trip to America. Whatever he decides, it won’t be a spur of the moment decision. “Investing rather than reacting, thinking ‘What we are going to do with that space?’ Do something slightly different, disruptive and lead the industry. That’s about empowering our team and tackling issues before they arise.” Denis McCormack has 30 years’ experience behind him and intends to make a clean sweep of the retail industry, with plans for a very 21st century take on the age-old launderette. Denis has overseen his Spar Polbeth Service Station site through the five most challenging years of change ever, and he plans even more. “Three years ago we undertook redevelopment, adding a coffee bar; food-to-go; display cake stand; and now we need to move forward again. A bigger food-to-go, getting Subway instore, and the staff and customers are excited. “We’re also installing a laundrette – outdoors. It’ll be among the first in Scotland and works 24/7. There’s already been an amazing response on Facebook, and our customers say they’re looking forward to it, for things like local football teams washing their strips, and van drivers using the thirty minute cycle.” Road and rail developments around his West Lothian site mean some challenging months lie ahead, but Denis is positive and says focus on the customer. “My enthusiasm goes down the line, and I tell staff the most important person is you at the check out.” Barry Hanif told Conference of the progress in his store in Paisley which he took over two years ago. He also added to the theme of thriving in an era of change. He’d joined the Nisa chill fresh delivery system, to move on the product range to better stock fresh fruit and vegetables. “We remerchandised the shop, brought in hot food, and pushed the whole food-to-go idea.” Barry also refitted a post office store which combatted a Tesco Metro opening nearby. “We need to do something different and move faster than the multiples. www.slrmag.co.uk

Cover Story

We’re getting in there with taking orders and beating the mults with a quick delivery.”

POLITICS OF RETAIL Taking the stage after the entertaining and informative economist Marcus Wright, gave SGF Head of Policy & Public Affairs John Lee a tough act to follow. “Having seen economics made exciting by our excellent speaker from RBS, now it’s time to do the same for politics,” said John. In that respect, he may have been dealt a good hand. After 18 months of hard work, the rapid inauguration of the first ever Cross Party Group (CPG) on independent convenience stores has brought Holyrood right into the shopfront and “affects us all on a personal level. It’s a genuinely significant development, that brings together retail, supply and manufacturing, gives us a big voice, and shows the government that the 42,000 directly employed and the many more supported by the sector are really crucial to the Scottish economy.” With the inaugural full meeting of the CPG due on 23rd November, there’s plenty to be done in the immediate term. “The Cross Party Group gives us as big a voice as our sector deserves and at least as well heard as the large corporations, but we only get out what we put in, and in that respect, the CPG must be inclusive, and it’s up to all members to take an interest in making this a positive opportunity to get the best deal for convenience retailers and the sector at large.” Inevitably, the upheaval of Brexit was a topic of John’s report, but it was to a more direct matter that he turned in conclusion. “Given that the significance of the sector is bound to be better recognised as a result of the Cross Party Group at Holyrood, the SGF will try to sponsor a piece of legislation. We are already trying to bring forward legislation that will give shop workers the same legal protection as emergency workers. We have drafted a bill, and drafted a consultation – so a great deal of the ground work is already done and ready to be presented to MSPs. There is plenty still to do, but there is a real chance this could go through. That would be our most ambitious project yet and show that we really could make parliament work for us. Surely that means that politics can, after all, be exciting.” NOVEMBER 2016 | SLR

News

Products

ProductNews CHRISTMAS IDEAS FOR ALL RETAILERS P60 SOUP Heinz launches £10m media campaign

Stoats Smiles As the official partner of World

Heinz highlights its health credentials

Porridge Day 2016, Scottish oats company, Stoats served up bowls of porridge to the 250 staff at People’s Postcode Lottery in Edinburgh. The activity, which ran throughout October, also encouraged people to get creative with their porridge toppings by making a smiley face and posting a picture on social media with the hashtag #PorridgeSmiles. The campaign raised funds for Mary’s Meals.

The big cheese Cathedral City beat the likes of Aldi Pilgrim’s Choice, Wyke Farms, Waitrose and Seriously Strong, to be labelled Best Buy Cheddar by Which?

Things are heating up at Kraft Heinz this winter with the launch of a new £10.6m media campaign celebrating “the role Heinz soup plays in people’s lives, the emotional comfort it provides and the functional benefits it brings”. Featuring a diversity of people and occasions, united by the anticipation and intensity of the first sip, ‘Love Soup’ is the latest campaign to hit TV screens from Kraft Heinz. The 30 second TV ad features a selection of moments where consumers are leaning in to enjoy their first sip of Heinz Tomato Soup. The final frame features a pack shot, with the slogan ‘Love Soup. It has to be Heinz’. The new ‘Love Soup’ positioning will also be present in store, through updated pack designs across the Heinz soup portfolio and shelf-ready packaging. The ‘Classic Heinz Soups’ range will benefit from clearer variety names and background colours, as well as a prominent ‘Less than 250

calories per can’ flash. Shane Shortman, Senior Brand Manager at Kraft Heinz, said Love Soup will help “reposition the soup category, driving category growth through significantly increased purchase and consumption of soup during the winter. Playing on strong emotional connections, and functional reasons to buy, the Heinz Soup campaign will drive key messaging to consumers, highlighting Heinz as the leading and most loved brand in the category.”

Brands were compared by a team of experts with decades of experience in all cheese-related

WHISKY

areas between them. Cathedral

Break it like Beckham

City’s Extra Mature came top of the table with an overall score of 83%, rated on taste, texture, aroma and appearance.

Christmas comes early from Ginsters Savoury specialist Ginsters is already hoping to get people into the Christmas spirit with two festive limited edition sandwiches and a limited edition pasty. The Festive Edition Christmas Cracker – a hearty piece with a mix of turkey breast, sausage, stuffing and bacon with cranberry chutney – and the Festive Edition Cranberry, Wensleydale and Bacon sarnies have been given fresh new wintry packaging and rrp at £3.49 and £2.99 respectively. The Ginsters Festive Edition Turkey & Bacon Pasty also features new eye-

Following the recent announcement of Haig Club Clubman, the first TV advertisement for the new single grain Scotch whisky has been revealed, marking the official launch of the new brand variant. The film, entitled ‘Make your own rules’, features brand partner David Beckham and is an attempt by House of Haig to “break the mould and redefine and reimagine the stereotypical expectations of when, where and how people should drink whisky.”

FROZEN

Dr Oetker doesn’t give a fork Dr. Oetker Ristorante has revealed new-look packaging across its range of pizzas. Updated product photography has been incorporated to showcase the ingredients of each of the pizza varieties and a soft focus background gives the product more prominence. The logo has been refreshed, while the removal of the fork from the product shot is intended to represent a more authentic, traditional Italian pizzeria setting, which the brand says consumers can replicate at home. Louise Beaumont, Senior Brand Manager at Dr. Oetker Ristorante, said: “Our loyal customers are very familiar with the look and feel of the design, which is easily identified within the freezer. So it was really important that we only made a few small, subtle changes.”

catching packaging, resembling a tasty present and carries an rrp of £1.99. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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PART

G N I R E N T R A P … S S E C C U S FO R

NEW PACK DESCRIPTORS UNDER EUTPD II Owing to the new legislation, the way we refer to our tobacco products is changing, with certain current names and descriptions no longer compliant from 20 May 2017. We understand that consumers use brand and colour when asking for their pack of cigarettes. With current taste descriptions – ‘full flavour’, ‘smooth’ and ‘menthol’ – no longer compliant, new standardised pack descriptors have been devised to help differentiate the SKUs. For full flavour products, brands in Sub-Premium through to Sub-Economy will adopt either the descriptor ‘real’ or ‘original’, with the exception of Carlton Red (which stays the same) and John Player Special Black (which adopts the descriptor ‘Legendary Black’). For those full flavour products in the Premium category whose names are changing, Superkings Black will transition to Superkings Original Black, Regal will transition to Regal Blue and Embassy Number 1 will adopt the descriptor ‘Red’. For our other products the transition will be as follows: ler Lambert & But , ld Go h Smoot

‘Smooth’ products become ‘Bright’ ‘Menthol’ products become ‘Green’

WILL BE KNOWN AS ler Lambert & But Bright Gold.

‘Capsule’ products become ‘Crushball’ The name of JPS Triple Flow, a smooth cigarette in the economy category, remains unchanged. Meanwhile as ‘King Size’ is the standard cigarette size, it will no longer be mentioned on pack. ‘Superkings’ variants will continue to be referred to on pack. Some examples are: JPS King Size Blue

JPS Real Blue

JPS King Size Silver

JPS Bright Silver

START •SUPPORT•TRAINING

•AVAILABILITY•RAN

GE•TRUST•

PR EM IU

Current Description

Embassy Filter

D TOR B RAN RIP D E SC T LIS

King Size

JPS Green

King Size

JPS Superkings Real Blue

–

Regal Blue

–

Superkings

Superkings Black Superkings Blue

Embassy Bright Blue

King Size

Regal Filter

Superkings

Superkings Original Blac k

You should have received a brand descriptors list. It can also be viewed on our trade website at: Superkings

Superkings Blue

JPS Superkings Blue

Regal

Regal Filter

Embassy Filter

Regal

Regal Filter

Embassy Number 1 Red

–

Superkings Black

JPS King Size Menthol

–

Embassy Filter

Davidoff Bright Gold

King Size

Embassy Blue

Complia nt Pack Size

Davidoff Classic

King Size

Embassy Number 1

ETTES

Complia nt SKU

–

Embassy Number 1

Current Pack Size

–

Davidoff Gold

NG AINI

M CIGAR

Format

Davidoff Classic

Superkings

Superkings Menthol

Superkings

Woodbin

41888 12pp A5 Brand

Descriptor List_Final AW-4.indd

–

Superkings Bright Blue

Superkings Green

www.imperial-trade.co.uk 41888 12pp

14/09/2016 10:13 A5 Brand

Descriptor

List_Final

AW-4.indd

Woodbin e Virginia Blen d

20 20

14/09/2016

10:13

For Tobacco Traders Only

STANDARDISED PACKS, BUT BRANDED TRADE OUTERS… Branding on individual packs of tobacco will not be compliant after May 2017, however, trade outers of cigarettes will change their packaging to become fully branded – meaning our products will continue to be easily identifiable in cash & carries. Meanwhile, any Codentify codes on individual SKUs will remain fully scannable. Codentify codes

Front

Examples of standardised pack designs. For illustrative purposes only, and subject to change.

Examples of standardised pack 200 outer wrap design. For illustrative purposes only, and subject to change.

Back

START PACK UPDATES & CONSUMER INFO CARDS

T R A ST A

NING•

RAI ORT•T •SUPP

Spin!

Look out for your brand variant wheel, coming soon...

SMOO T

AVOUR L FL L FU

SMOO TH OK

IEN

KNOW YOUR D BRAN NT VARIA Y:

S JP d af n Le Ble d lity g ua 30

IEN

CRUSHBALL MENTHOL

TH OO

t gh Bri e V nris Su 30g

S JP d af n Le Ble old lity g G ua 30 Q

IEN

AVOUR L FL L FU

www.imperial-trade.co.uk

SMOOTHER SMOKING EXPERIEN

FULLER SMOKING EXPERIEN

KEY:

Superkings Bright Blue Richmond

Original Silver Lambert & Butler

CRUSHBALL MENTHOL CE

SMOOTHER SMOKING EXPERIEN

FULLER SMOKING EXPERIEN

KEY:

Superkings Bright Blue Richmond

Original Silver Lambert & Butler

D N A I I D P T U E H G U O R G H N I T G A … K C A P D E S I D R A D N A T S

Examples of standardised cigarette card insert. For illustrative purposes only, and subject to change.

Spin!

KNOW YOUR D BRAN NTS VARIA

H OT

W KNO R YOUND A R B IANTS VAR

W KNO R YOUND BRA IANTS VAR

New consumer information cards are also now available, which are a useful reference guide to the forthcoming changes for your shoppers.

RUST•

NGE•T

TY•RA

BILI VAILA

START pack updates will include further materials to assist retailers with understanding the transition in descriptors, and bring to life our brand variants in their new format. This will help when adapting to the navigation of new-look gantries and be a useful quick reference guide to support retailers.

News

Off-Trade

Off-TradeNews PECKISH RETAILERS HEAD FOR THE LATEST TASTY CRISPS AND SNACKS P56

Rugby prizes up for Crabbs Having activated a number of sponsorships and partnerships across the UK, Crabbie’s Alcoholic Ginger Beer, the official partner of the Scottish Rugby Union, is offering consumers a chance to win a range of rugbythemed prizes every week with a new on-pack promotion on single 500ml bottles. Instant win prizes include vouchers for clothing firm Blacks as well as Crabbie’s branded beanie hats. In keeping with the rugby theme, Mizuno sports bags, Now TV Sports passes and subscriptions to Rugby World

WHISKY Famous Grouse flies again this winter

A grouse about the house Maxxium is championing The Famous Grouse this festive season with a £2m marketing campaign, the largest-ever Christmas investment for the brand. Reaching over 40 million adult consumers between November and December, the campaign includes two new television adverts with a starring role for the brand’s famous bird. The first of two commercials – titled ‘Perfectly Balanced’ – airs for the first time on 17th November. Johna Penman, Marketing Controller for The Famous Grouse, commented: “Christmas is always a key season but this year will be even bigger and better. We’ve invested a significant amount and it’ll be the first time we’ve run two new adverts for The Famous Grouse in rotation.”

magazine are also up for grabs in the promotion. Michelle Chadwick, Senior Marketing Controller for Crabbie’s Alcoholic Ginger Beer, commented: “We’re expecting lots of Crabbie’s fans to get involved as there are plenty of rugby-themed prizes and others which will appeal to non-rugby supporters too.”

The Wells runs deep Independent UK brewer Charles Wells has launched a campaign highlighting the originality of their beer range and its drinkers. In the form of TV spots, video on demand and outdoor placements, the adverts feature blind drummer, Roy Turnham.

WHISKY Hands across the water

Macallan unites America and Europe International negotiation and whisky distilling have one thing in common: they both take a while. Fortunately, at least in the case of the latter, the end product is worth the wait. Whisky specialist Macallan’s latest launch, which perfectly balances sherry seasoned European and American Oak casks, is a mere 12 years in the making. Double Cask 12 Years Old is the result of Macallan transporting new oak from America across thousands

of miles to Spain, where casks are crafted and sherry seasoned before traveling to the distillery on Speyside to mature for twelve years. These whiskies are then harmoniously united with those aged in exceptional sherry seasoned European oak casks. The Macallan Double Cask 12 Years Old is available from November 2016 in specialist whisky retailers at an rrp of £55.

BEER

Carlsberg keeps it green In partnership with Danish packaging company EcoXpac, Carlsberg plans to develop a beer bottle made from sustainably sourced wood fibre. The prototype, which has been prepared based on the distinctive Carlsberg design, shows how the bottle might look when it hits the market. The Green Fiber Bottle, with Danish styling and a distinctive spelling, will degrade into nonharmful materials if discarded randomly, though the intention is that it will form part of proper waste management, just like today’s bottles and cans. “We still have technical challenges to overcome, but we’re on track with the project,” said Håkon Langen, Packaging Innovation Director.

A proficient musician and London 2012 Paralympian, Turnham represents the “literal

WHISKY

meaning of marching to your

The art of whisky

own drum”.

In collaboration with the Glasgow School of Art Mackintosh Campus appeal, Glengoyne Highland Single Malt Scotch Whisky has commissioned John Lowrie Morrison OBE, or Jolomo as he is known, to paint a collection of seasonal paintings inspired by Glengoyne Distillery. Each of the four paintings will be printed on limited edition whisky gift tins and released annually, with Glengoyne making a donation to The Mackintosh Campus Appeal, to help The Glasgow School of Art recover from the consequences of the 2014 fire in the Mackintosh building. The limited edition tins, each containing a bottle of the classic 10 Year Old from Glengoyne, will be available to buy online for £35.49 from www.glengoyne. com, from the distillery shop and specialist and independent retailers.

Charles Wells’ Marketing Director, Jason Wills, commented: “Our new campaign proudly tells the story of individuality surrounding Bombardier and its drinkers. Roy gives us a perfect opportunity to do this, as someone who epitomises what it means to march to your own drum and carve your own path, rather than just do what’s expected.”

SLR | NOVEMBER 2016

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Off-Trade

News

AWARDS Inaugural Scottish Beer Awards hailed success

Beers of the year The best Scotland-brewed beers were crowned at the inaugural Scottish Beer Awards, held recently in Edinburgh. The grand prize of the night, Scottish Brewery of the Year, went to Tempest Brewing Co. after they were awarded four gold medals for their beers. The borders-based brewer also took Growth Business of the Year after increasing sales by over 200%. Ellon-based brewers BrewDog celebrated securing two business awards for Innovation of the Year for their DIY Dog recipe manual and Excellence in Marketing for their Equity for Punks IV. Hilary Jones, chair of the judging panel, commented: “The

Scottish Beer Awards recognises the fantastic range of beers now brewed in Scotland. With such a large amount of high quality premium product available, the brewing industry in Scotland can continue its growth in the UK and internationally with great

SHERRY Happy anniversary to an old favourite

Sherry Christmas Celebrating its 220th anniversary, Harvey’s Sherry, responsible for producing one of the most popular Christmas drinks for generations, Harveys Bristol Cream, has marked this special milestone with a fresh, new campaign dedicated to the nostalgia and timelessness behind one of the UK’s most iconic drinks. “Nothing says Christmas like Harveys Bristol Cream,” commented Steven Person, Global Marketing Director at Harveys. “The popularity of the iconic bottle has made it a long-standing family favourite in British households. Evoking the spirit of nostalgia and discovery that ensures Harveys’ relevance today, the campaign film in particular aims to encapsulate all that the brand means to people at this time of the year.”

confidence. Winning a Scottish Beer Award is a tremendous badge of honour and we wish all our winners and finalists the best of success.” All 16 category winners are listed at www.scottishbeerawards. co.uk.

SPARKLING WINE

Prosecco from Spar for Christmas Launched with the festive season in mind, Spar’s new Prosecco Speciale has joined the group’s own brand seasonal alcohol range. With an rrp of £9, the new premium sparkling wine will offer shoppers a trade up from Spar’s already popular Perlezza Prosecco. The premium Prosecco is packaged in a stylish, flute-shaped bottle, intended to show consumers its more luxury appeal. The Prosecco Speciale will be introduced on 24th November, and Spar has expectations of an extra £350,000 in retail sales.

Q: Once my shop refit is complete I want to introduce shop radio and open earlier in the morning for rolls, newspapers and the like but obviously not alcohol before 10 a.m. Is this a minor variation because it is not changing anything to do with alcohol? Stephen says: In short, no. The refit element will be a minor variation; always assuming you are not increasing the size of the alcohol display. Your operating plan will need to be amended to allow for recorded background music and you will need to specify opening before 10 a.m. for groceries as an activity. Any change to the operating plan requires a major variation. Take legal advice before you lodge the major variation as there may be other changes you can make at the same time. Please note that playing music for customers also requires PPL (www. ppluk.com) and PRS licences (www.prsformusic.com). Q: My nephew is going to work a few shifts in my shop during his university Christmas holidays. He wants to get work experience for his C.V. I don’t need to train family when we are helping one another out – do I? Niall says: I assume your nephew does not hold a Scottish Personal Licence. I also assume that during his work experience he will be involved in the sale of alcohol. If so, you must ensure he gets the two hours mandatory alcohol licence training with records kept on the premises. Anyone (paid or not) involved in the sale of alcohol must be trained. Q: How long after my personal licence was issued is it before I need to refresh the training? Stephen says: You must have sat and passed an official refresher training course within five years of the date your personal licence was issued. You must also provide the licensing board that issued the licence with a copy of the pass certificate no later than three months after the five year deadline.

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Inside Business

SLR | NOVEMBER 2016

Illicit Trade | Crime

www.slrmag.co.uk

Inside Business

Crime| Illicit Trade

SWEEPING IT UNDER THE CARPET

Losses to illicit trade run into billions, but more than half of respondents to a new survey say reporting criminal activity was none of their business. BY SIMON WALTON

etail is in the front line in the fight against illicit trade, and the criminals are pocketing a fortune. HMRC believes the loses run to £3bn in tobacco trade alone, with about £300m of that lost to the Scottish economy, and convenience retail suffering keenly. Yet, as The Tobacco Manufacturers Association’s recent survey revealed, there remains significant apathy to the issue, and when asked why they hadn’t reported illicit sales (in this case in the tobacco category) 57% said they didn’t believe it was any of their business. Clearly that’s an issue across the whole retail sector. “They do not think it affects them so why should they be concerned,” says Inverurie retailer Keith Whyte. “The preconception that the authorities make enough money from the industry and customers means they perhaps see the cheek of these type of sales as getting one over. In some areas though, turning a blind eye to what is going on could be a safe bet for avoiding any future consequences.” What difference would almost £300m make to the retail sector? As the biggest and most diverse employer in Scotland, that level of investment could move the economic fortunes of thousands of employers, and tens of thousands of dedicated workers. HMRC sources express concern about their

57%

proportion of smokers who have not reported the sale of illegal tobacco because it was “none of their business”

The charity Crimestoppers is independent of the police and protects anonymity. You can report any suspicious activity via 0800 555111 or online at www.crimestoppers-uk.org

ability to stem the flow of illicit goods into the country. In short, customs officers feel there are stretched to cover all ports of entry. If that means there’s inevitable leakage into the country, and the flow can’t be stopped at source, then it falls to the trade at large and the public in general to put a stop to the criminal activity at back doors and around our back streets. “Everybody thinks the only loser is the chancellor through loss of taxes,” notes Abdul Majid, immediate past president of the Scottish Grocers Federation. “Loss of sales for retailers is never considered.” While the lack of resources in the authorities is a concern for most people, confronting crime is never going to be a pleasant task. Clearly there is a fear factor, but, as Keith Whyte suggests, the hassle factor has to be taken into consideration too. “Quite often there is a lot of hidden consequences in terms of time and cooperation with various prosecuting bodies.” Stronger public information as well as better counterfeit-proof packaging should be enforced, adds Keith Whyte. The public information films of not so long ago highlighted the part ordinary shoppers play in sponsoring crime. They’re still familiar, and remain relevant. Buying illicit goods, no matter how innocently, contributes to the funds of much less innocent individuals, whose activities would hardly be described as legitimate.

Keep an eye out for evidence of local illicit tobacco trading, and report suspicious activity via the HRMC hotline on 0800 59 5000. JTi has set up a dedicated website to combat illegal tobacco, www.suspect-it-report-it.co.uk

www.slrmag.co.uk

NOVEMBER 2016 | SLR

Inside Business

2 Minutes | Sarah O’Neill

Sarah O’Neill With food on the go an increasingly lucrative opportunity for local retailers, many categories are getting in on the act. SLR talks to Sarah O’Neill, Head of Cake on the Go at Premier Foods, to find out how big the cake opportunity is. CAKE ON THE GO IS NEW TERRITORY FOR THE CATEGORY, SO HOW WOULD YOU RECOMMEND RETAILERS GET INVOLVED AND MAKE THE MOST OF THE OPPORTUNITY?

FACTFILE Sarah O’Neill, Head of Cake on the Go at Premier Foods. Sarah leads a dedicated sales and marketing team and has a wealth of knowledge and experience within the FMCG market, having worked with a number of food to go and snack brands, including senior positions with Ferrero UK and Dairy Crest. Sarah is currently based in Bristol and actively supports a number of charitable organisations. She’d be happy to share her expertise with good causes on a pro bono basis. Before any of that though, Sarah is satisfying her wanderlust with the ultimate trip down under, to Antarctica.

Focus on stocking a Cake on the Go range within your store. We offer branded parasite units for our product range which can be useful. Also site any Cake on the Go products with other food to go items, such as confectionery, sandwiches or alongside a coffee station to promote cross category purchasing and impulse buys.

SO CAKES HAVE MOVED ON FROM BEING JUST SOMETHING SAT ON A PLATTER IN THE MIDDLE OF THE DINING ROOM TABLE? There is still a place for friends and family to sit down to enjoy a high tea, but cake is increasingly seen as a small treat that can be enjoyed anywhere. 35% of cake is eaten out of home and this sets the scene perfectly for smaller packs as busy consumers can enjoy their favourite cake brands whilst on the go.

SO, TELL US ABOUT YOUR OWN CAKE ON THE GO RANGE? Our Cake on the Go range is made up of a selection of new twin pack formats from our well known Mr Kipling and Cadbury Cakes brands. By offering favourites such as Mr Kipling Angel Slices, Cherry Bakewells and Cadbury Mini Rolls in a convenient, portable pack, we are helping retailers to capitalise on the growing on the go market. Having launched in April this year, we have received positive feedback from shoppers, with the twin packs enabling them to enjoy one cake on the go and save one for later.

WITH CAKES AS A VERY TRADITIONAL PART OF OUR IDENTITY IN THE UK, DO YOU FEEL THERE IS SCOPE TO EXTEND THEIR APPEAL?

IS THAT TREND THE SAME THROUGHOUT THE UK, AND ARE THERE ANY REGIONAL PREFERENCES?

Absolutely, the idea of pausing mid-morning for a cup of tea and cake certainly feels like a tradition, and cake has a lot of very positive events and associations in the UK. With Mr Kipling known as a traditional British brand that is enjoyed across the nation, we are ideally placed to provide shoppers with a little treat on the go from a brand they know and trust.

Yes, cake is certainly well received across the country. In our experience, we don’t see huge variations on the popularity of our range. However, looking at Scotland the Mr Kipling Angel Slice is our best-selling flavour slice.

WITH MORE EMPHASIS ON A BALANCED DIET THESE DAYS, CAN WE AS AN INDUSTRY PROMOTE CAKE AS A HEALTHY OPTION?

IS THE ‘ON THE GO’ SOMETHING YOU’RE WITH FOR THE LONG TERM, OR IS CAKE ON THE GO THE FASHIONABLE WAY FORWARD? Whilst we see Cake on the Go as a more modern approach and a great way to help ensure our brands are relevant for modern day shoppers, the launch of this range isn’t about being ‘fashionable’, it is a long term move in line with changing consumer behaviour and eating habits. It is important that we continue to move into new territories such as food to go.

SLR | NOVEMBER 2016

Cake is to be enjoyed as a treat and as part of a balanced diet. As a business, we are committed to reducing sugar and calories within our portfolio – we have introduced calorie caps and colour coded front of pack labelling to help shoppers make an informed choice.

GO ON THEN, TELL US WHICH IS YOUR FAVOURITE FROM THE RANGE... My favourite Mr Kipling cake would definitely have to be the Cherry Bakewells, so I was particularly delighted when we recently introduced them to our Cake on the Go range! www.slrmag.co.uk

Baccy Boy Delivering tobacco to your door â&#x20AC;&#x201C; add me now! Selling Jin Ling, L&M ciggies and more, plus 50g roll ur own pouches for half the price of your local corner shop.

Retailers â&#x20AC;&#x201C; weâ&#x20AC;&#x2122;re protecting you by #following #illegaltobacco sellers on social media and passing their details to law enforcement www.suspect-it-report-it.co.uk

The illicit trade impacts: income

youth

quality

communities

Working together to fight the illicit trade

Inside Business

What’s Trending | #brexit

WHAT’S TRENDING?

#brexit

What’s happened since the referendum back in June? Britain voted out of the EU, unless you live in London, Northern Ireland or Scotland. Now that the country has started to come to terms with what’s in store for the coming years, we ask retailers what they think. Chris McCallum McCallums Foods, Ayrshire Ask as many people as you like and they will all tell you that what differences the Brexit may make is a very difficult question to answer. We don’t really know what the future will hold and that in itself is a cause for concern at the national economic level. We talk about more expensive imports, with the fluctuation in exchange rate a factor, but maybe we’re also talking about cheaper exports. How all that may filter down to the convenience store is a matter of conjecture. I don’t think we’ll see any significant change to overall supply, but we may see some differences as to the products on the shelves.

Next month

Brian McCaughey Londis, Inveraray Red tape will not change. Much of the legislation that has allegedly been introduced through Europe is not bad in itself and would have come about anyway. Domestic initiatives like minimum wage and autoenrolment are here to stay. One possible change could be the working time directive, even if existing EU legislation is proposed to be enshrined in UK law. We live in a time of falling food prices and I don’t know how that will be affected. It may be easier of more difficult for foreign traders to enter the UK market but I don’t see a significant change to the very competitive retail landscape.

Abdul Majid Nisa Local, Bellshill After the shock of Brexit had subsided I was disappointed by an opportunist Nicola Sturgeon trying to push for another referendum at time when calm leadership was required to ensure stability within the business community. The fall in the value of the pound and the impact on imports is of concern as this will lead to increased prices. I’m not sure food inflation is a bad thing for retailers as the downward spiral of retail prices these past couple of years has impacted on our overall profitability. We need good leadership from the Scottish Government to ensure Scottish business is well represented.

Keith Fernie David’s Kitchen, Glenrothes I’m really on the fence about the plus or the minus of Brexit. What difference it makes to the retail industry I honestly don’t know, and I think that could be the position for many people in all walks of life. In the short term there are effects to be felt. My family holiday is more expensive because the exchange rate is down and the pound buys less euros, so that’s an immediate consumer effect. What difference that might make to our business is hard to say, especially as rates will almost certainly recover, and they’ve always been up and down anyway. It’s really too uncertain to call one way or the other.

#trending is Christmas all that important any more in convenience? Email your thoughts to Simon at swalton@55north.com

SLR | NOVEMBER 2016

www.slrmag.co.uk

Cash & Carry | Irn-Bru Xtra Tour

Inside Business

RAISING THE BARR SLR joined the AG Barr Can Man last month at Batleys in Edinburgh for the first stop on the Irn-Bru Xtra Scottish Tour.

LR joined AG Barr Trade Marketing Manager Susan Kosminski and her team on the first leg of its cash and carry tour to promote the new full flavour, no sugar Irn-Bru Xtra variant. It was a fairly informal affair held at Batleys in Edinburgh and gave SLR the chance to catch up with a few retailers to see what they thought of the new product. “It’s a great seller for us,” says Mamood, whose store in Musselburgh is always busy on race days, and with pupils from nearby Loretto School. “We sell about 10 cases a week.” Martin, who runs the Leith Walk bakery just a few minutes away, says he’s already selling it in decent quantities too. A big atraction on the day was the Can Man, who found himself on a relentless round of selfies. “It’s been a great day and we’re having a great time,” said Barr’s Edinburgh RBDM, Steve McGarry. After a full day of tasting and testing, the tour carried on around Scotland, visiting Sher Brothers in Glasgow, Batleys in Dundee, and back to Glasgow’s United Wholesale in Queenslie.

www.slrmag.co.uk

NOVEMBER 2016 | SLR

Inside Business

Software Review | PayPoint One

CHANGE AT THE TILL It was the worst kept secret in retail, but now that the new PayPoint One Epos platform is live, was it worth the wait? SLR finds out… BY ANTONY BEGLEY

n hindsight, the launch of an Epos system from PayPoint is a bit of a no-brainer. With a 20 year history of working directly with over 29,000 stores across the UK, PayPoint has long had the perfect platform to launch an in-store solution like this. The new system – known as PayPoint One – was officially unveiled last month after what PayPoint says was an exhaustive collaborative process working with retailers to create a solution that meets all of their key requirements. The platform has also been built to be future-proof with the ability to evolve and develop it over time. With a surprising number of retailers still running stores with no Epos system at all in place and those that do have one often failing to get the best out of it, PayPoint believes it has a ready market to target with PayPoint One. In essence, the platform combines three separate sets of solutions in a single, neat little unit: Q Epos Q Card payments Q PayPoint services The platform has been designed “to help retailers run their whole store from one device” and, specifically, to compete with the major multiples. According to research by PayPoint and JWT (a division of Retail Connect), 46% of independent and symbol retailers view multiples as their biggest competition, with 36% responding that having enhanced

SLR | NOVEMBER 2016

technology and a better understanding of their customers is their biggest opportunity for future growth. The research also revealed that a quarter of independent retailers (25%) view limited access to advanced technology as the biggest challenge to delivering good customer experience.

UNDER THE BONNET Unlike most established Epos systems on the market, PayPoint One makes use of tablet technology. The system is effectively just an Android tablet housed in a toughened case which, as well as taking up remarkably little space on the counter, brings some useful benefits. Firstly, navigation within the system will be very familiar to most retailers if they’ve ever used a tablet before. Secondly, the cloud-based nature of the software means retailers can manage their business from anywhere from any device with internet connection. Lying on the beach in Marbella and checking the day’s sales is now only a click and a swipe away. The system scores well on making lots of basic Epos information available quickly and easily. No need to run complex reports or log into the back office to get core, important data: pre-built reports for frequently requested information are accessible in a click or two, delivering real-time updates on the performance of the store. Unsurprisingly, a big focus of the new terminal is on delivering faster and more reliable payments, helping to improve customer experience www.slrmag.co.uk

PayPoint One | Software Review

and reduce queue times. Contactless technology within the till unit itself means PayPoint services can be accessed directly through the terminal, although a separate unit is still required for debit and credit card payments. The system is future-proofed with the inclusion of wifi and Bluetooth which will permit, for instance, beacon technology to be introduced instore. Having had the opportunity to extensively trial PayPoint One, it’s fair to say that it’s a very slick piece of kit that will appeal particularly to retailers who currently don’t have Epos or retailers who feel they are not able to get the most out of the system they have. At this point the system is not yet capable of taking wholesaler updates so it’s unlikely that many symbol retailers will be able to consider it right now – but PayPoint say that they are working on this challenge and the system will be evolved in 2017 to enable it to pull in regular product and pricing file updates from wholesalers. At £20 a week to new customers, or £15 a week if you are already a PayPoint customer, the system is competitively priced and there’s no question that for retailers with no Epos system it’s a great way to get into the benefits of understanding customers better and running their stores more efficiently. Dominic Taylor, Chief Executive at PayPoint said: “The PayPoint One terminal is an exciting milestone in PayPoint’s history. The new platform, which has been designed to be future proofed for evolving www.slrmag.co.uk

Inside Business

retailer and consumer needs, is a significant enhancement to our service offering. Our new platform allows complete flexibility and control for retailers, enabling them to run their whole business from it. “We’ve thoroughly tested the new technology, working alongside retailers throughout its development, to ensure that our full service offering meets their current and future needs and that the platform can flex as their businesses grow.”

KEY FEATURES OF PAYPOINT ONE INCLUDE: Q Seamlessly combining Epos, card payments and PayPoint services Q Quick payments with integrated contactless, Apple Pay and Android Pay to improve customer experience and reduce queue times Q Easy to use, intuitive 11.6 inch touchscreen Q Manage store anywhere from any device with cloud back office Q Advanced connectivity through Bluetooth, Wifi and broadband – facilitating beacon technology Q Android platform giving future flexibility and expansion Q Modern content management system to ensure content is kept up to date Q Integrated messaging system

NOVEMBER 2016 | SLR

SLR REWARDS

SPIRIT OF THE AGE

Expertise brings its own rewards, but with the SLR Rewards it brings a visit to a famous distillery and a stay at an iconic Perthshire institution. For Spirits Retailer of the Year that’s what the generous sponsorship of premium spirits company Maxxium meant to Derek and Morna Ritchie.

nyone one who knows this popular North East store will have had little surprise at Derek Ritchie’s triumph as Spirits Retailer of the Year. So, when the opportunity came to visit the Famous Grouse Experience, Derek was thrilled at the prospect. “It was a unique visit, and, like the SLR Rewards promote, it really was a prize that money can’t buy. “We arrived in Crieff to a very nice lunch at the Famous Grouse Experience before our afternoon tour. “The manager Jamie took us on a personal tour. He was well aware that I’d been to a few distilleries in the past, so he made his tour very relevant and personal, telling us a lot about the history of the Famous Grouse brand. Then we were introduced to the Whisky University, where we

SLR | NOVEMBER 2016

were offered a tasting of five different whiskies. To round off the visit, we were presented with a rather valuable bottle of ten-year-old Glen Turret, complete with a personalised label, which was a really nice gesture and very welcome. “Our overnight stay at the Crieff Hydro left us planning for a return visit. The dinner was really good, and I didn’t realise just how extensive the facilities are there. It seems a great place for a family weekend, but we might opt for midweek when we come back. Both the Famous Grouse Experience and the Crieff Hydro take great pride in what they do, and I would say that you should do the same. If you take pride in what you know, that shines through and your customers will appreciate that.”

www.slrmag.co.uk

SLR REWARDS

SANDAY’S TOP RETAILER KITS OUT HER LOCAL TEAM No strangers to community involvement themselves, AG Barr were happy to be corporate sponsors of the Community Involvement Retailer of the Year at the SLR Rewards, and a debutante was a worthy winner.

ertainly the most rural of this year’s SLR Rewards winners, Jackie Sinclair hails from Sanday, an Orkney island that’s even considered remote by Orcadians. Jackie took over an ailing store that was due to close but nonetheless provided an invaluable service its customers – there are literally no other local stores like this on the island. So it’s no surpise that she picked up the Community category at this year’s Rewards. “When I took over the shop on the island, just before it closed its doors for good, I had absolutely no idea how important shops are to communities. In fact I did all my own shopping on the mainland because I couldn’t get everything I wanted here, and I assumed it was much cheaper in supermarkets. I simply had to tackle all my own prejudices to make sure neither of those excuses remained.” Jackie’s mainland would still be offshore to most of us, but her ideas are in no way at sea. In fact, she’s a safe port of call for young

www.slrmag.co.uk

and old. “What struck me hardest was what would have happened if the shop had closed. One Sunday an elderly lady was slowly and methodically working up and down aisles. Eventually she came to the till with a loaf of bread and a tomato. ‘I’m 93 you know, all my friends are gone, it’s very lonely, I like coming here, it gives me something to do and someone to talk to’. I didn’t get any stock put out that afternoon.” It’s the next generation too that’s part of Jackie’s future, and that’s why her SLR Reward of branded football strips for the local youth team could not have gone to a better winner. “The very existence of shops in communities is critical, yet is threatened like never before. This is arguably the most important category at SLR. I’d say we have to make the difference for the communities we serve. There’s no point complaining people don’t come when there’s nothing to come for. What goes around comes around in communities, so work together.” NOVEMBER 2016 | SLR

WOODLANDSlocal

Inside Business

Woodlands Local | Monthly Update

Rewards Club back to the fore

With the refit now all but complete and only the finishing touches to add, the Woodlands Local Rewards Club returns to the fore as we look to ramp up engagement with our shoppers in the run up to Christmas. BY ANTONY BEGLEY

SLR | NOVEMBER 2016

Our Halloween gondola end.

hankfully, the refit is now all but complete. Barring a few cosmetic finishing touches, the new range is in place and looking good. The response we’ve had from our customers has been fantastic and we’re already seeing good, solid growth in the categories we were focusing on with the refit: frozen, chilled, fresh and hot food being the key drivers. Our communications programme has now been relaunched too, as we try to spread the word about the refitted shop to as wide an audience as possible. We’ve created new style leaflets, new in-store POS and upweighted social media activity. It’s still early days but we’re positive and optimistic, particularly with some important sales occasions like Halloween and Christmas on the horizon. The mission-shopping layout of the new store has taken a little time to make sense for our customers. That’s mostly because we still don’t have the final signage up, which will split the store into zones: meal for tonight, lunch, breakfast, big night in and so on. Once they ‘get it’, most customers appreciate the fact that the store is now much easier to shop. We’re hoping to see increased basket spends. With all of this now more or less in shape, our attention is returning more fully to the Woodlands Local Rewards Club which we see as fundamental to the store going forward. The Club will be relaunched over the coming weeks with a new loyalty card and new app functionality which will be made possible by the addition of new 3D scanners that can scan www.slrmag.co.uk

Inside Business

Monthly Update | Woodlands Local

mobile phones. The previous scanners could only scan 2D barcodes so we were limited in what else we could do with them. We have over 150 members but stopped recruiting during the refit. We knew we would be relaunching the Club once we could deliver a better experince. The run between now and Christmas gives us endless opportunities to run new member recruitment campaigns and member rewards campaigns. Halloween will be a big deal for us this year and we’ve already given over a full promotional gondola end to a special Halloween deal. The exercise has been hugely popular in the first week of being there. The deal offers customer ‘any 2 for £1.50’ on a wide range of Halloween branded products including Skittles, Starburst, Chupa Chups, McVities Digestives, Jaffa Cakes and Swizzels Trick or Treat bags. We will also run a Rewards Club extra special offer as Halloween draws nearer. This will offer members an even better deal – probably ‘5 for £3’ which will have the dual benefit of offering members another brilliant reward and helping to clear out the remaining Halloween stock in time for the evening itself. It’s a model that we’ve used successfully

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

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

Stocktaking:

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

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

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

We count ... so you don’t have to.

NOVEMBER 2016 | SLR

Inside Business

Woodlands Local | Monthly Update

TECH FEST:

WOODLANDSlocal

WHAT’S NEXT ON THE LIST?

We have a keen eye for new technologies at Woodlands Local and we’re always looking for new solutions to bolt on to our core Darius shopper engagement platform, the engine behind the Woodlands Local Rewards Club. Darius effectively acts as the hub around which all of our customer engagement activity is built, connecting the various solutions together and capturing the data we need to fuel more personalised, relevant, and valuable messaging to our member customers. We are always on the lookout for new solutions that could improve our shoppers’ experience of Woodlands Local. At the moment we are looking at two in particular: Big DL and Zapper. Big DL is a simple vouchering app which customers can download and have offers sent directly to them for a range of offers that are available in their specific location. The app is not exclusively focused on convenience retail so there are a wide range of offers available, but the system could be useful in bringing new customers to the store. Woodlands would simply upload a selection of our best offers and they would become available to anyone who has downloaded the app. The solution is being backed by News Scotland at the moment so expect to come across it more and more often. Zapper is another solution making great headway in local retailing. It describes itself as “a global consumer insights and marketing platform powered by mobile technology” providing “a simple solution which can seamlessly process secure payments in a variety of environments.” The system is built around a payment solution app that allows retailers to capture a range of data and use it to power shopper communications and drive loyalty. We’ll let you know how we get on in the next issue...

SLR | NOVEMBER 2016

in the past – offering members short coded or seasonal stock promotions which helps clear the stock and make our members feel rewarded without the need for any new instore POS or clutter. We are also pushing our free in-store WiFi far harder now with new posters and a continued promotion offering those who use it (and therefore give us their email address) a free cup of coffee the first time they join up. After that they no longer even need to log on; they are automatically connected to the WiFi every time visit the store. Obviously when the external café area is open again in spring we should see more significant use of the WiFi. Again, it’s all about the data. Every time a customer is logged on to the wifi we can gather valuable information about dwell time, frequency of their visits and so on. As Christmas, New Year and St Andrew’s Day approach, we will also be using the Rewards Club as an important tool to drive seasonal activity around those occasions. We are also working closely with a number

www.slrmag.co.uk

Monthly Update | Woodlands Local

Inside Business

of our partners including Coca-Cola and News Scotland to leverage the power of Darius to achieve our mutual aims. The wider plan is to run a year-long 52week plan with three campaigns running every week: 1. Open Campaign: a campaign aimed at recruiting new members. 2. Members Campaign: special rewards or information exclusively for members. 3. React Campaign: ‘triggered’ campaigns that offer a promotion to shoppers when they do something specific. For example, we could run a campaign to offer a free coffee to everyone who spends more than £5 at one time. The message would arrive with the customer while they are still in the store allowing them to redeem it immediately. It’s an exciting (and nerve-wracking) time at Woodlands Local right now as we wait to see the benefits we get from all of the investment and hard work – but we’re delighted to have it all out of the way to give us a clear run through to Christmas.

www.slrmag.co.uk

NOVEMBER 2016 | SLR

WOODLANDSlocal

Inside Business

Woodlands Local | In-Store Training

Getting ready to make more beer money It was all hands on deck last month as McEwan’s dropped by at Woodlands to provide some hands-on training for our team and help get the most out of their iconic brands. BY ANTONY BEGLEY

SLR | NOVEMBER 2016

aving already had a very serious attempt at making Woodlands Local ‘famous’ for craft beers, it was a dispiriting experience to discover after several months that only a dozen or so of the 70-odd Scottish beers we had on sale were shifting at a rate that merited keeping them on the shelf. The Woodlands area of Falkirk is clearly not ready for some of the more unusual craft ales available these days. However, one positive thing that we did discover was that some of the better known beer brands that we introduced actually did generate very consistent sales; among these were those from McEwan’s, now part of the Charles Wells Group. We’ve always sold McEwan’s Export to a small but loyal bunch of customers but the success of a recent introduction of a few other lines from the company spurred us on to take the category seriously once more. We added McEwan’s IPA, McEwan’s Champion and McEwan’s Signature and all three have been selling well from day one. The McEwan’s brand has obviously been through a lot of change in recent years, including a change of ownership, but the brand itself remains a household name in Scotland. To help build on this success, we arranged for McEwan’s to send a team into the store to give our own team at the store a little support, advice and help in growing sales even further. Led by brand ambassador Thomas McInally, the McEwan’s team duly arrived, set up a stand in-store and basically took our team through the products and then through an overview of the beer market itself. The Woodlands team learned more about www.slrmag.co.uk

In-Store Training | Woodlands Local

Inside Business

KEY BRANDS: FAST FACTS MCEWAN’S EXPORT Q Scotland number one canned ale Q Growing at 3% by value Q 4.5% abv Q Targeted at older males Q Goes well with home made steak pie and other rich meat dishes

product, the target market for each and some tasting notes to help advise customers looking for some help. The session included a very helpful mini tasting session which the team obviously enjoyed! “I’ve liked McEwan’s Export for as long as I can remember,” said store manager Gerry Begley. “My dad used to drink it when I was a boy and I suppose I picked it up from him. I’m not really a lager drinker – I prefer a bit more taste – so Export does the trick, and we shift a fair bit of it in the store.” Gerry was less taken with the hoppy McEwan’s IPA but the McEwan’s Champion was an instant hit. “It’s lovely, really tasty”, he said. “Mind you, at 7.3% abv you’d need to be careful how many of them you drank!” My own personal favourite was the IPA, but I’ve long been an IPA drinker so no surprise there. The McEwan’s one, despite Gerry’s reservations, isn’t particularly strongly hopped, certainly not compared to some other IPAs on the market, and it slips down a treat. The Champion is something special, however, so I had to agree with Gerry on that one. I even took one home with me to savour as I wrote this article up! The session included an overview of sales techniques that our staff can use to help shoppers consider adding a premium ale or two to their basket. Food pairings is a great idea, with many of the ales perfect for rich, winter foods. Encouraging customers to try something with a bit more flavour is another positive sales technique, particularly for customers who are a little older with more developed palates. The training was hugely helpful for the team and generated a lot of enthusiasm for the category and for the products themselves. The next step is to organise an in-store tasting session for our customers and that’s due to happen over the next month. McEwan’s will bring a team back again and set their stand up once more and we’ll have a go at giving beer away. Shouldn’t be too hard! www.slrmag.co.uk

MCEWAN’S IPA Q Aimed at both men and women aged 25-50 Q More similar to lager in style so easier for lager drinkers to transition Q 5.2% abv Q great with food MCEWAN’S CHAMPION Q Mainly consumed by male seasoned ale drinkers aged 35+ Q Scotland’s number one bottled ale Q 7.3% abv Q powerful, sweet and malty ale CANNED ALE CATEGORY OVERVIEW Q Traditional session keg ale (such as John Smith’s): -8% Q Traditional stout (such as Guinness): +7% Q Craft (such as Punk IPA): +1,333% Source: IRI, Sep 16

NOVEMBER 2016 | SLR

Inside Business

Woodlands Local | Woodlands Festive Picks

WOODLANDSlocal

12 picks of Christmas

nt to give local products of the mome t es lat the ls tria re hes can be SLR’s own sto biggest product launc the w ho of n tio ica ir Christmas retailers an ind already unleashing the ds an br th Wi re. sto annual sales marketed in ir share of the biggest the e tak to t rke ma ts down its lines on the festive spirit and coun the in ts ge ds lan od event. opportunity, Wo the run up to the big top 12 must-stocks in

What? Cadbury Snow Bites, Snowmen Chocolate Mousse and Freddo Popping Candy. Why? Christmas without Cadbury just doesn’t seem right, and with an everexpanding seasonal offering it would be wrong to miss these great products from your shelves. Marketing support: The Cadvent campaign is back again with Cadburys spending £10m on it this Christmas. RRPs: Cadbury Snow Bites at £1.15; Snowman Chocolate Mousse at 69p; and Freddo Popping Candy at 25p Woodlands thought: Great addition to the confectionery SKUs that help inject fun and extra profit into the section. Get them out early to make sure you maximise sales as many people don’t wait until the 25th to tuck in.

What? KP Nuts Jumbo Tubs Why? With nearly 40% of all KP Nuts sales occurring in the weeks leading up to Christmas day (Nielsen), KP Snacks is ensuring its leading brand maintains a strong option with Salted, Dry Roasted and Honey Roasted caddies. Marketing support: The resealable sharing packs have been given their seasonal sprucing with a wonderful winter graphic to get shoppers in the Christmas spirit. RRP: £3.99 Woodlands thought: Good product to have stocked as party season is heading our way and this gives shoppers a great brand name at a great price to hand out at their get togethers.

SLR | NOVEMBER 2016

What? Silent Bites Why? Cadbury Cakes have put a seasonal spin on their popular Amaze Bites range with the new Silent Bites variant, a delicious double blended brownie, with raspberry flavouring, covered in Cadbury milk chocolate. Marketing support: Amaze Bites have been receiving regular bouts of advertising since their launch just over a year ago and a new Christmas variant for the snack is likely to drive sales further. RRP: £1.99 Woodlands thought: Great seller, with a price point that really helps drive basket spend up. Playful twist on the Amaze Bites name which is very well recognised now.

What? Hula Hoops Stars Why? Hula Hoops’ golden rings have undergone their annual makeover into the festive star-shape, adding an element of fun for the whole family. Marketing support: The wintry design which shows stars falling over a snow-covered hill is bound to stand out on shelf. RRP: £1.99 Woodlands thought: Household favourite gets a festive makeover, should go down very well with customers this Christmas and throughout the rest of the month in the lead up to the big day.

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Woodlands Festive Pics | Woodlands Local

Inside Business

What? Boursin Garlic & Herb and Boursin Aperitif Why? Boursin Garlic and Herb and its bite-size Aperitif counterpart are perfect for the party season, tapping into the desire for indulgent Christmas snacks. Marketing support: With a £1.2m investment, the campaign includes the launch of Christmas-themed packaging across its major SKUs, its biggest ever shopper marketing campaign, social media activation and a supporting TV ad. RRP: Boursin Garlic & Herb at £2.35; Boursin Aperitif at £2.99 Woodlands thought: This is cheese’s time to shine. Customers are looking for something different to put on the cheese board and canape trays. Boursin has an answer for both with these products.

What? Lactalis Cheese Tasters Why? The risk involved in buying a case or large block of speciality cheese with which retailers aren’t familiar can be minimised by stocking new Cheese Tasters, meeting the needs of customers who want to sample a range of six different cheeses. Marketing support: The price-marked pack boasting popular cheese brands, such as President and Seriously Strong, is bound to trigger intrigue in the dairy fixture. RRP: £3.00 Woodlands thought: When customers can’t make up their minds which cheesy goodness to buy, this special pack gives them a variety of tastes. Keep well stocked and make sure to catch plenty of distress purchases right up to the 25th.

What? Border Biscuits Carry Pack Why? The packs are available in vibrant, convenient packaging, perfect as a gift or to pick up as a treat after a busy day of Christmas shopping. Marketing support: A new look website and a major consumer and trade advertising campaign with the introduction of iconic new characters – The Biscuitiers – running on ITV, ITV3, STV and STV Player. RRP: £8.00 Woodlands thought: A brilliant gift as stocking filler or an even better one for taking round when on your Christmas visits – should be a real crowd pleaser in terms of customers looking for a luxury gift for loved ones.

What? McVitie’s Christmas Cakes Why? McVitie’s has launched its colourful Christmas Cakes range, including new delicious Digestive Coconut, Teacakes, angelic Apple & Cinnamon Flapjacks, festive frosty Mint Digestive Slices and premium Penguin Yule Logs. Marketing support: All products feature striking seasonal packaging for maximum impact on shelf. RRP: £1.00 Woodlands thought: These popular cakes get a festive makeover that gives customers an even better excuse to have them as part of the Christmas goodies in their homes.

What? Dairy Milk Advent Calendars Why? Who doesn’t love that daily dose of chocolate in the run up to Christmas? Cadbury was the best-selling advent calendar last year (Nielsen) and stocking it on the shelves is an absolute must. Marketing support: As noted previously, the highly successful Cadvent campaign will return in 2016 with a £10m spend with new creative, experiential and in-store activity. RRP: £2.19 Woodlands thought: Important to get them out as early as possible, as unlike other Christmas lines these have to be sold by the start of the month. Cadbury products are always great sellers and so should be these advent calendars.

What? Thorntons Christmas Stars Collection Why? Containing beautifully crafted white, milk and dark chocolates in variety boxes including truffles, star-shapes and marzipan, there’s a festive flavour for everyone in Thorntons boxes of sweet seasonally-themed treats. Marketing support: The new seasonally themed options are likely to drive intrigue among shoppers. RRP: £7.00 (176g) Woodlands thought: As Christmas is the season of giving, make sure you have gifts to suit all of the shoppers needs. Well packaged and a name that is trusted, these SKUs will look great on shelves and should fly off them too.

What? Thorntons advent calendars Why? These luxurious offerings from the long established British chocolatier are geared towards both children and adults for a more decadent daily chocolate experience. Marketing support: The range features favourite festive characters such as the Snowman and the Gruffalo, as well as elegant designs for adults. RRP: £4.50 - £12.50 Woodlands thought: Advent calendars are not just for kids, make sure you have a luxury option available. We have gone for Thorntons as it’s such a well trusted and loved name – and guaranteed quality.

What? Mr Kipling Stollen Slices Why? Mr Kipling is sprinkling some Christmas magic with its Stollen Slices – a continental Christmas favourite for the whole family to enjoy in a convenient format. Marketing support: Slick packaging decorated with Christmas trees, crowns, bells, presents and crackers. RRP: £2.29 for Stollen Slice Cakes, £1 for Frosty Fancies Woodlands thought: Another special festive treat that customers can buy. Cake experts Mr Kipling are always good sellers instore and we expect these to be no different.

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NOVEMBER 2016 | SLR

Hotlines

Product News & Media Watch

Maynards Bassetts PMPs Mondeléz International With research from him! suggesting PMPs are key sales drivers among value-hunting consumers, Maynards Bassetts has introduced £1 promotional 165g PMPs across its core bag range, including Maynards Bassetts Wine Gums and Maynards Bassetts Jelly Babies, the number one and two bags in the market.

Airhead Fruit PMP Chupa Chups Following a 21.7% brand growth in the past 12 months and the bag market on a year-on-year upwards curve of 2.3%, Chupa Chups has introduced a new £1 PMP pack to its range in the form of Airhead Fruits, with rainbow coloured packaging sure to make it stands out on the shelves.

Hobnob Multi-pack United Biscuits McVitie’s has launched a new multipack format for its popular McVitie’s Hobnobs Flapjacks with its first variety bag. Combining a selection of three variants – Oaty, Chocolate and Raspberry – the new pack contains 10 individually wrapped flapjack bars at an rrp of £2.00.

SLR | NOVEMBER 2016

Just take your cake on the go for extra impulse Mr Kipling Cherry Bakewells and Mr Kipling Orange & cranberry Oat slices are joining the Cake on the Go category in a handy twin pack format to attract new shoppers to the range. The new products will carry an rrp of 89p for two cakes and the Cherry Bakewells twin packs come in shelf ready packaging for ease of display. Manager of News at Ten, Lisa Chambers, comments on their trial of the new range: “As soon as we began stocking the Mr Kipling twin packs, our customers were really excited to see something new in-store. They are a really handy and manageable format for shoppers. We found we had two groups of shoppers buying the cakes: commuters on their way to work as a snack they could enjoy later that morning, and our older shoppers who were buying them to take home and enjoy with a cup of

Hovis Trolls Gores Group & Premier Hovis are helping retailers take advantage of the highly anticipated release of DreamWorks Animation’s Trolls with an impactful on-pack promotion live across eight million loaves of Hovis Best of Both. The on-pack takeover will give one lucky shopper the chance to win a family holiday to LA where they will visit DreamWorks Animation and Fox studios.

tea. We would definitely recommend the twin packs to the other convenience retailers.” Sarah O’Neill, head of cake on the go at Premier Foods, commented: “Following the initial launch of Cake on the Go in April, we are seeing positive results and great feedback from our wholesale and retail customers. The introduction of these new flavours will help retailers attract a wider audience and with POS available, we are working with customers to ensure the range is easy to merchandise, creating maximum impact.”

Ready Brek Relaunch Weetabix Food Company Children’s cereal bran Ready Brek has partnered with Play-Doh for an on-pack promotion as part of the 2016 relaunch of the Ready Brek brand. The campaign will run until 31 January 2017, across the original variety (450g and 750g pack sizes) of the breakfast cereal.

Andrex Classic Clean Kimberly-Clark With an rrp of £1.99 for a 4-roll pack, the new Andrex Classic Clean has been rolled out across the UK. Designed for an improved clean, the new Classic Clean, previously named Classic White, provides thicker and embossed sheets featuring the Andrex logo to really leave shoppers feeling clean.

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Product News & Media Watch Lemon Ready Zest Dr. Oetker

Cadbury Halloween Cakes Mondeléz International

Joining the popular baking brand’s range of convenient baking products is Dr. Oetker’s new Lemon Ready Zest sachet, making it easy for shoppers to add flavour to their home made cakes and biscuits. The long shelf life and £1 rrp make the pre-grated product a perfect fit for the home-baking category.

Capitalising on the Halloween cake category, which last year generated £7m in sales alone, Cadbury has strengthened its offering with new offerings Pumpkin Patch cakes (rrp £2.49) and Mini Rolls Trick or Treat (rrp £2).

MEDIAwatch

Hotlines



Milk tray man returns New Cadbury Milk Tray Man, Patrick McBride, leaps onto screens nationwide for the first time with a new ad. The integrated campaign features the full 90 second and shortened 20 second ad which will run for four weeks as part of a £3 million campaign PR, digital and in-store as well as social media.

Oxo back on the boxo Squeezie Del Monte Produce Inc. Producer of premium prepared fruits and vegetable, Del Monte, has launched a new Squeezie kids snacking range. The rrp 79p product, made with 100% fruit and no added artificial ingredients, is available in Apple, Banana & Strawberry, Apple & Mango, and Apple, Strawberry & Blueberry variants, with images of Micky and Minnie Mouse on pack to entice children to try the snack.

Always Dailies Fresh & Protect P&G UK and Ireland Investing in raising awareness of the daily liners category, Always has upgraded its Dailies Fresh & Protect Normal product to make it even more flexible, reliable and feel invisible. The upgraded range carry rrps of £1.99 (32 cts) and £2.99 (60 cts) and is supported by a series of TV and print adverts and consumer sampling.

Oxo has returned to TV screens with two new adverts that follow a busy modern-day. The brand has invested £3m in the campaign, which is airing over the winter months from now until the end of February 2017. The adverts feature both stock cubes and the Oxo stock pots range, which is now worth £2.7m since launching last year.

Arla work it out Arla Foods launched a new TV advert campaign for its protein brand featuring the struggles of a man taking part in a bootcamp class. Arla launched Arla Protein into the UK in January 2015 with quark-based fruit flavoured snack pots containing 20g of protein, in line with the growing trend for high-protein diets to support more active lifestyles.

Curiosity feeds the cat

Fiendish Fancies Premier Foods

Sparkling Ice Talking Rain Beverage Co.

Mr Kipling has brought back its spooktacular rrp £1 cake range following successful sales during the Halloween period last year, which generated £1.9m in category sales (Kantar). Fiendish fancies lead the return after coming top of the table during the period last year, and are joined by Choc & Slim Slices and Terror Toffee Whirls.

The flavoured sparkling water brand has introduced a new dual-fruit flavour, just six months after launching in the UK & Ireland market. The new Kiwi Strawberry variant (500ml/ rrp £1.49 and 1.99) joins its existing flavours – Black Raspberry, Orange Mango, and Peach Nectarine.

Whiskas has launched a new ‘Feed Their Curiosity’ advertising campaign celebrating the inquisitive nature of our feline friends. The push launches with three new 20-second ads showcasing a cat’s fixation with a dripping tap, a light switch, and a hairbrush that it has mistaken for a hedgehog. The campaign is running on TV and online into the new year.

Snacker Hacker Mattessons Fridge Raiders has launched an eight-week, £1m campaign called “The Snacker Hacker”, who will take over six of the world’s biggest YouTube gamers’ channels with over 20m reach and steal their gamer tags from them. Fridge Raiders will support the hunt in store, providing a key growth opportunity for UK retailers.

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

NOVEMBER 2016 | SLR

Bagged Confectionery

Feature

IN THE

BAG Bagged confectionery is safe, solid and relied upon by both consumers and retailers. However, with manufacturers already addressing issues of sugar content, tax and health perception, bagged confectionery is becoming harder to sell. BY ÉMER O’TOOLE

SLR | NOVEMBER 2016

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Feature

Bagged Confectionery

“Big-Night-In presents a great opportunity for retailers to tap into additional sales, providing the right snacking solutions for consumers through bagged confectionery.” BEP DHALIWAL, TRADE COMMUNICATIONS MANAGER AT MARS

TOP TIPS FROM MARS

2.3% is the annual increase in bagged confectionery.

SLR | NOVEMBER 2016

1. Put bagged confectionery alongside savoury snacks and drinks, to promote additional basket spend in store for customers looking to fulfil their big night in shopping mission. 2. When merchandising pouch lines, core favourites such as M&M’S and Maltesers should be displayed in a prime location, for example, at eye level on a wall display. 3. Ensure you use all POS available to you, such as dumpbins & counter units - these are guaranteed to raise awareness and generate impulse sales. 4. Focus on getting the main confectionery display merchandised well, with strong availability of core lines. 5. Multi-face key lines – this helps to ensure strong availability and attracts shoppers to make those all-important impulse purchases.

ver the past year, the total Confectionery category has continued to show its strength, with the overall market seeing an increase in value sales of 1.1%, year-on-year. Driven both by old favourites and new product development, Bagged Confectionery ticks all the boxes for marketing and desirability. A rise in consumption trends like sharing, which has seen consumers favour treat bags and pouches, has contributed to category sales — with an increase in sales of 6.3%, according to Mars. Retailers looking to raise awareness of the bagged confectionery section, and boost sales in store should ensure their core confectionery display is always merchandised in line with how a shopper navigates the fixture. Jon Eatly, Wrigley customer excellence director says “a fully stocked display will help maximise your profit potential and guarantee repeat visits from customers.” In-store theatre and a tactical use of POS materials can drive additional sales, especially in high-footfall areas, and as more and more consumers are buying chocolate confectionery on impulse, retailers should maximise on this opportunity. Bep Dhaliwal, trade communications manager at Mars says: “With so many price-conscious shoppers today, price-marked packs reassure them that they are getting the best value for money. Our £1 Maltesers, Galaxy Minstrels and M&M’s treat bags are some of our most popular pricemarked packs and they offer an affordable way to share a treat.” PMPs reassure shoppers they are getting the best value for money, and provide the perfect chocolate treat for night in with friends and family. They’re also a great way for retailers to grow sales in store and attract the attention www.slrmag.co.uk

Feature

Bagged Confectionery

50% of customers are eating out less.

£608M The fruit confectionery category is worth

SLR | NOVEMBER 2016

of customers. The rise in popularity of the Big Night In occasion has resulted in sharing pack PMPs playing an increasingly key role in the confectionery market. According to Cloetta, last year 63% of retailers claimed they would stock more PMPs this year, and 76% said they’d be more likely to stock products that displayed the price on pack. According to Wrigley, the total fruit confectionery category is currently worth £608 million. Chupa Chups is extending its Airheads range, with the introduction of a £1 pricemarked hanging bag. Each pack contains bite-sized sweets in five sour flavours: Apple, Blueberry, Cherry, Lime and Orange. Visibility is key and popular confectionery items should be located at eye level to take advantage of incremental sales. Skittles Tropical single bags (55g), hanging bags (125g), and sharing pouch (174g) contain flavours including Orange, Passion Fruit, Tropical Punch, Watermelon, and Pineapple.

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Bagged Confectionery

The hanging bags include a Price Marked Pack of £1 RRP. Wrigley says tropical is a fast growing flavour trend, has been mirrored in other categories and is performing exceptionally well with value growing year-onyear. Using cross-category merchandising will increase impulse purchases. Encourage additional purchases using cross category promotions, such as ‘buy a sandwich, drink and confectionery for £3’. Single price point Big Night In promotions are also growing in popularity, allowing shoppers to satisfy all of their needs in one go. This covers deals which include a DVD, confectionery pouch, and drink for a reduced cost. In order to raise sales and capitalise on early consumer demand it’s vital that independent retailers champion new products in store. Cadbury’s new Dinky Deckers bitesize bag taps into the ‘little and often’ trend. It follows the likes of Cadbury Boost, Wispa and Twirl, which have been extended into the bitesize category in recent years. For retailers putting in the effort, the reward is increased sales and profits. Pay attention to trends and NPD as they are potential profit drivers in the bagged confectionery section of the c-store.

Feature

47%

of customers are spending less money on out-of-home entertainment.

“Remember to focus on products that are ideal for sharing to offer a variety of flavours for everyone to enjoy.” DAN NEWELL, CONFECTIONS MARKETING MANAGER AT WRIGLEY

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NOVEMBER 2016 | SLR

Feature

Cigars

CIGARS FROM TWO ANGLES

As a significant part of the UK tobacco market, cigars have always been a premium product for retailers. However, the legal changes underway affect their sale in subtly different ways and getting to grips with the timelines for EUTPD2 and separate UK legislation means planning ahead now. Giving their views and recommendations, Scandinavian Tobacco Group’s Jens Christiansen and JTI’s Jeremy Blackburn.

“

As a rule of thumb no one starts smoking cigars, they switch from cigarettes,” observes Jens Christiansen, Head of Marketing & Public Affairs at Scandinavian Tobacco Group UK (STG UK), who has spent six years with the company, and is now working in the UK market, one of the company’s biggest overall. As the number one manufacturer of machine made cigars in Europe and among the biggest in the world, STG has a significant portion of the annual UK sales of 330m cigars, in which they specialise, along with a small portfolio of hand rolling and pipe tobacco. In their core business of cigars they are keen to manage their position in what Jens admits is a declining market though one that is still worth over £230m per year, and a significant revenue stream for retailers. At the gantry, STG’s Café Crème remains the biggest seller in the UK, with around 39% of sales, and the company takes just over half of market share overall, with JTI accounting for another quarter, and Ritmeester about the same,

with the rest of the market sharing just under 3% overall. However, Jens says that the main challenge for his company is to educate their client retailers in the run up to significant changes in May 2017, and to manage their market share, which – along with Ritmeester, is bucking trend and rising, even in the existing legislative climate. “The EU have been particularly focused on tobacco – in principle it’s not about getting people to quit but to get young people not to start,” says Jens, noting that EUTPD2 is the base for all the other legislation being implemented locally including in the UK. The UK government also wants to go further and introduce standardised plain packaging for cigarettes and RYO. Cigars and pipe tobacco are exempt from the plain packaging legislation. “What we’re doing is leaflets and trade advertising,” adds Jens. “All our products will be packaged but will be compliant.” Jens notes that the minimum pack size could be significant for the retail trade, but says that evidence from Denmark, where similar legislation was introduced ten years ago, was only a small issue. Gantries will change, he says, but STG wants to be a category captain for retailers and wholesalers. “We are doing what a major supplier should do, we are doing education, and our position is that we can transition with SKUs that are TPD2 compliant already, giving retailers time to cycle out non-compliant stock early.”

TOP PERFORMING CIGAR BRANDS BRAND

SHARE % MAT TY

VALUE (£M) MAT TY

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

22.9% 12.1% 11.9% 9.7% 9.4% 6.9% 5.5% 4.6% 3.2% 2.1% 1.6% 1.1% 1.1% 1.0% 1.0%

£37.1 £39.9 £18.5 £15.5 £10.5 £24.2 £6.4 £7.3 £3.6 £12.4 £4.5 £2.8 £3.0 £1.9 £1.4

Café Crème Blue Hamlet Hamlet Miniatures Café Crème Moments Blue Classic Royal Dutch Miniatures Café Crème Arome Filter Royal Dutch Min. Blue HW Half Corona Panama King Six HW Slims Meharis Sweet Orient Café Crème Finos Blue

“We are doing what a major supplier should do, we are doing education, and our position is that we can transition with SKUs that are TPD2 compliant already.”

SLR | NOVEMBER 2016

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Feature

Cigars

laying a leading role too in the cigar category, JTI has seen their market share hold up well in the climate, particularly its popular Hamlet brand, which holds a 35% share of the cigar category in the independent trade and is one of the top three cigar houses in the UK, as noted by Nielsen research. Jeremy Blackburn, JTI’s Head of Communications, says that cigars offer retailers the chance to stock products with impressive profit margins: “With Hamlet offering PORs of up to 21.2%.” He says retailers should stock up now to take advantage of what their own research shows to be overwhelmingly reported as the most recognisable cigar brand. Category management is critical, Jeremy says, to maximising the festive appeal of cigars. “Cigar sales also typically increase over the Christmas period. Retailers are encouraged to stock up in the run up to Christmas to profit from sales opportunities brought by the seasonal holiday.” By keeping on top of stock control, and ensuring availability, retailers are best placed to take advantage of the brand loyalty exhibited by cigar customers. Jeremy Blackburn notes that JTI’s best selling Hamlet is very well recognised. “It’s more than five times that of the nearest competitor, which is essential to driving incremental sales from brand loyal customers.”

However, there’s no room for complacency, he says, given the level of legislation facing retailers in the coming months. “Ensuring that staff are well informed on upcoming legislation and knowledgeable about your products will aid a store in being compliant and guide customers through the changes, helping to secure repeat custom and avoid confusion.” JTI has put together a dedicated website (www.packchanges.co.uk) with information outlining the changes brought about by TPD2 and ‘plain packaging’ regulations. Good business practice is of course vital in any category, and the same applies to cigars. JTI has developed an approach called ARTIST: Availability, Range, Training, Innovation, Sales and Technology. “In this changing environment, maintaining full availability and range is more important than ever,” concludes Jeremy. “Operating a robust stock rotation policy will be key to ensure full compliance by May 2017. It’s important that this is communicated to staff. Understanding what is happening in your area and being able to pinpoint key sales trends is a priceless insight. By stocking the right brands and keeping up with key category trends, retailers can ensure they don’t miss out on their share of the profits. A good EPoS system will help get the balance right.”

The independent & symbol channel accounted for

35% of sales (£82m)

Miniature cigars have a

67.6% share of the Scottish market

SLR | NOVEMBER 2016

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Crisps and Snacks

Feature

CRUNCHTIME

Customers are increasingly looking for innovative snack ideas to satisfy their hunger on the move. As a result, the crisps and snacks category has been booming over the last few years and retailers need to meet this demand.

21%

of all food occasions are not at home.

£57m

is spent on snacks and lunches per year.

56%

of the UK consume lunch out of home.

1IN 4

adults in the UK buy food to go items once a week.

he opportunities for retailer grow with the size of the bags in the crisps and snacks category– and as snacking becomes more and more a social occasion, there’s increased footfall too. Individual size sales remain buoyant, but the growth of sharing snacks remains ahead of the overall category. A considerable sales opportunity for retailers, the crisps and snacks category is favoured by time conscious consumers who are looking for a convenient bite to eat on the move. To meet the snacking needs of these busy consumers, Kraft Heinz has re-launched Planters. Planters Core selection consists of Dry Roasted, Lightly Salted Peanuts, Salted Cashews and Salted Peanut’s and Nut Mix. Perfect for snacking on-the-go, Planters single bags are ideal for consumers looking for a convenient snacking solution when time is of the essence. Pepsico has launched new popcorn brand, Pop Works & Company. It is available in four flavours: Sticky Toffee Pudding, Peanut Butter & Caramel, Apple Pie, and Sweet & Salty. The new brand is available in 90g bags with an rrp of £1.50. capitalising

on the spicy snacks trend, Sizzling Salsa is now available as a new flavour in the Doritos range in 200g sharing bag. As consumers become increasingly health conscious, retailers should also look to offer a range of healthy savoury snacks that don’t compromise on taste. Planters Health range, which consists of a substantial Energy Mix (almonds, chocolate covered honeycomb, brazil nuts, walnuts and peanuts), Health Mix (peanuts, cashews and cranberries) and Protein Mix (peanuts, redskin peanuts, cashews and almonds), has been designed with health, quality and taste in mind and is great for consumers looking for a substantial snacking solution throughout the day. With the recent change in consumer lifestyles and in eating habits has led to an increase in snacking. As this trend for snacking increases, retailers need to think about stocking a variety of snack solutions to cater to a wide range of shopper needs.

TOP TIPS FROM WALKERS 1. Stock the right PMP range and best-sellers - use your reps to help identify the right range for your store. 2. Right location - work with your reps on secondary displays to help maximise sales opportunities. 3. With many shoppers buying on impulse, maximise these purchases through great displays and store visibility. 4. Crossmerchandising with other relevant product categories will boost basket spend. 5. Utilise supplier online rewards and category management websites such as www. countsformore. co.uk from Walkers, to ensure you are stocking the right range and growing your business.

LAUGHING COW MINI CRAVINGS

BURTON’S TURKEY ‘N’ CHIPS

Targeting female adult ‘snackers’, Bel UK’s Laughing Cow Mini Cravings come in the following flavours: Garlic & Herbs, Ham & Herbs, Blue Cheese, Cheddar Smoked Cheese, Onion, Goat’s Cheese and Salmon & Dill. Containing 14 calories per cube, the brand says customers can “satisfy their snacking cravings without guilt or compromising on taste.”

A new Christmas savoury product has been launched by Burton’s. Turkey ‘n’ Chips is available in a sharing caddy format (170g). It features turkey and chip shaped pieces alongside new packaging.

SLR | NOVEMBER 2016

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Winner Savoury Snacks Category. Survey 11,586 people by TNS

PMP NOW AVAILABLE

NO.1 DRIVER OF CATEGORY GROWTH IN CRISPS & SNACKS IN CONVENIENCE**

Â£13M RSV IN MARKET SINCE LAUNCH IN MAY 2015**

*New price marked packs available in single ( 30g) format. Non price marked packs available. Retailers are free to set their own prices **IRI, Data to 24.1.16

SWEET RED CHILLI NOW AVAILABLE IN 30g PACK

Feature

Christmas Preview

Seasonal sales

Christmas is the busiest time of the year for c-stores. With many people planning impromptu get-togethers, it’s likely that they will turn to their local convenience stores to stock up at the last minute, so it’s important for retailers to make the most of the opportunity. BY ÉMER O’TOOLE

ith Christmas being such a competitive period for retailers, c-stores can struggle to compete, primarily because of ranging. They should ffocus ocus on other USPs to appeal customers highlighting the convenience aspect of last minute shopping. Christmas is a time when consumers stock up on supplies to see them through the festive break, and with soft drinks being a huge seller at this time of year, retailers can benefit from building Christmas-themed displays instore. Amy Burgess, Trade Communications Manager at Coca-Cola says: “These could feature soft drinks merchandised alongside popular seasonal items, such as boxes of chocolates and biscuits or share size bags of crisps and nuts to achieve incremental growth.” Sharing formats are particularly important for Christmas social occasions, and in order to meet the demand, it’s advisable to consider stocking more products such as 1.75L PET bottles, or 330ml can multipacks.

It’s also worth keeping some of these larger packs chilled where space allows, adding convenience for consumers who want to serve their drinks shortly after purchase. As the day draws nearer, eye-catching Christmas displays that showcase festive favourites can really add some in-store theatre that will leverage consumer excitement. With one in three households buying a treat product over the festive period, pushing the confectionery category is crucial. In terms of chocolate confectionery, capitalise on special edition products by bestselling brands. Maltesers Merryteaser Reindeer is available in a single pack (rrp 65p) and a sharing pack (rrp £1.29). Haribo has launched new limited edition Starmixmas. Bringing the flavours and colours of Christmas into one bag, Starmixmas offers eggnog egg, cherry trifle heart, apple strudel bottle, apple strudel and custard rings and gingerbread bears. Christmas can be a stressful time of year for retailers so preparation is key. Make the best use of cross category merchandising, in store theatre and NPD to see festive sales soar.

HOME BAKING Home bakers will start thinking about their Christmas bakes in the autumn so be ready to have an eye-catching Christmas display ready straight after Halloween. Sales can last for a long period as some shoppers will plan ahead with large celebration and traditional Christmas cakes. C-stores can maximize on occasions in the run up to Christmas like ‘Stir Up Sunday’ - a tradition where families gather together to mix and steam Christmas pudding which will happen this year on 20th November - and then switch attention to decorations right up to Christmas. Other occasions include impulse purchases during the Christmas holidays as they look for holiday activities including baking with the kids.

74% of total Christmas chocolate confectionery sales came from boxed chocolates last year.

SLR | NOVEMBER 2016

“Chocolate is intrinsic to Christmas – it is at the heart of many rituals and traditions.” BEP DHALIWAL, TRADE COMMUNICATIONS MANAGER AT MARS

25% of c-store shoppers visit the same store everyday.

ADVENT CALENDARS For many shoppers, advent calendars mark the start of the festive season and have become an enjoyable ritual for both children and adults counting down to Christmas. According to Mars, the last four weeks of the Christmas season account for 50% of sales so retailers should make sure they have a fully stocked range of advent calendars to capitalise on this trend. Joining Maltesers and Mars advent calendars this year is a Galaxy advent calendar (rrp £2.70). Bep Dhaliwal, Trade Communications Manager at Mars, says “it is a highly exciting time for consumers who look forward to opening their advent calendars, decorating the tree, and having a night in with family and friends at this festive time.”

www.slrmag.co.uk

UTC

SINGLE USE BUCKETS, ANYONE?

ANYONE GOT A NICE SMELLING RING? He’s a man of the world, is UTC, so you can just imagine his reaction when he received an email recently making a suggestion for some unusual lines to add to the Christmas range of products that SLR might want to endorse to the fine upstanding retailers of this great nation. Apparently a “forward-thinking British men’s fashion brand” called Vanacci has come up with the a sure fire hit for the man in your life this Christmas: fragranced jewellery. The gear is allegedly inspired by outer space and made of Lockstone [What’s Lockstone? – Ed] and allows the wearer to infuse their “stylish, contemporary wear” with the favourite fragrance using “the specific science of capillary action”. The auld yin made the mistake of mentioning this fragranced jewellery to Mrs UTC who rather unfairly retorted than anything that made his ring smell better got her vote.

NATIONAL STRESS AWARENESS DAY UTC loves the modern trend of ‘National Whatever Days’, he really does. There’s a day for everything these days. National Yoghurt Day. National Smile At A Stranger Day. National Let’s All Go To The Pub Day. Most of which he wholeheartedly supports, but he became aware recently of National Stress Awareness Day, which prompted him to fly off into a foulmouthed rage about how every day was national stress awareness day as far he was concerned. He also made the not unfair point that if you’re under stress the last thing you want is to spend the day being officially made aware of the fact. He invites SLR readers to suggest some more worthwhile National Days we could all agree on. Suggestion on Twitter to the auld yin at @UTConline. 62

SLR | NOVEMBER 2016

As we all know, UTC is a perennial fan of pointless surveys into nothing in particular, usually in the form of sales pitches disguised as research. Sometimes it’s dressed up by the PR companies in an “amusing” format. UTC has decided to let SLR readers be the judge of that. This month’s example was carried out by BusinessWaste. co.uk who went delving into the “bizarre alternatives” shoppers have gone to in order to avoid the 5p bag levy. Some customers have amusingly carried bags of frozen peas home in their pockets rather than being seen carrying the ‘bag of shame’ home. [What’s shameful about a plastic bag? – Ed]. Others have hilariously used builder’s buckets. Others still have hysterically used cycling helmets, blankets tied at all four corners, dog poo bags and even a pair of trousers tied at the ankles. BusinessWaste.co.uk made a spokesman available for comment on the research. UTC politely declined the opportunity as he picked up his placcy bag and carted his four cans of Tennent’s home feeling no shame whatsoever.

PULLED PORK AND KALE ARE SO LAST YEAR… He might be the wrong side of 21, but UTC prides himself on keeping touch with popular youth culture. There’s isn’t a thing about hipsters that he doesn’t know about. Fixed wheel bikes, big beards, pulled pork tacos, slip-on shoes with no socks, full sleeve tattoos – he’s on it like a car bonnet. So he was delighted to announce to the team at SLR Towers that other day when one of the healthier members of the SLR team had kale in her lunchtime salad that “kale is so last year”. After said member of

the team had finished cleaning up the bits of kale and quinoa she’d spat out onto her keyboard, UTC reliably informed her that it’s all about the ‘kalettes’ now. Do go on, he was prompted. So he did. Kalettes, we learned, is a “natural hybrid between Brussels sprouts and kale” and you can already get it in M&S and Waitrose. Obviously. So if your fresh range is in need of some livening up and you already sell a lot of wasabi, quinoa and houmous, then kalettes is where it’s at for you.

www.slrmag.co.uk

How Can Convenience Stores Thrive in an Era of Change? By Integrating Your Tech, Engaging Your Customers and Getting Personal!

Velocity Worldwide’s shopper personalisation and engagement platform, Darius™ can help you do all that. We can help you grow sales, increase footfall and win the loyalty of your customers. To find out how, just email Andy at andy.batt@velocityww.com Your store might even qualify for the chance to put it to the test for yourself…