SLR October 2016 by 55 North

Be a party to our success. WE’RE CELEBRATING

160 YEARS

OF POPULARITY. McEwan’s Champion is Scotland’s best-selling bottled ale and McEwan’s Export is the nation’s favourite canned ale.* Stock up now and benefit from the huge demand for these best-selling beers.

*Source; IRI – 18 June 2016, Major Multiples Scotland, Single unit value sales.

SGF Conference, Golf Day & Study Tour | PMPs | Hot Drinks for Winter | Christmas Preview AS01332 MCE SLR Cover.indd 1 False Front.indd 1

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GAVIN PARTINGTON

OCTOBER 2016 | ISSUE 162

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Soft drinks boss on sugar tax campaign

HISTORY IN THE MAKING

11 MSPs back the new Cross-Party Group on Independent Convenience Stores at the Scottish Parliament

SGF CONFERENCE Highlight of the year now only days away

LICENCE TO THRILL Woodlands Local amended licence granted

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October 2016

Contents

Contents ISSUE 162

NEWS p6

Off-trade beer sales overtake on-trade For the first time more than half of beer sales in the UK have been made out with pubs, clubs, hotels and restaurants. p7 Local retailing Cross-Party Group meets for first time Support from across the benches at Holyrood as politicians recognise the importance of the sector. p8 NFRN gathers support against ‘sugar tax’ introduction Newsagents federation gets 2000 independent retailers onside, and Scotmid supports Childline. p9 JTI trials ecigs-tobacco combi gantry unit Manufacturer comes up with novel approach in the post-display era. p10 Nisa meal deal feeds the family for a fiver Busy parents offered a healthy alternative that’s also good business. p16 Product News Stop, caution and go for Weetabix traffic lights, and million and millions of Millions up for grabs. p19 Off-trade News The special one fronts up Heineken campaign, and Blackthorn adds new cider lines.

INSIDE BUSINESS p22 Two Minutes of Your Time Gavin Partington As a business coalition joins forces to challenge that sugar tax, the Soft Drinks Association Director General speaks out. p30 SGF Golf Day St Andrews Fore! A return of the popular awayday with the SGF members and guests getting in a hole as usual. All home in time for tee. p32 SLR Rewards winners More success stories from the biggest night of the year and the best recognition in the sector as Condorrat and Polbeth stores get the star treatment. p36 SGF Study Tour Delegates let the train take the strain in Galashiels and Earlston with a locally produced lunch. p38 Woodlands Local Refit, reworking and relicensing, there’s never a dull moment at our Falkirk store where it’s all go and a pallet of new products hit the shelves. p41 Hotlines Warburtons bulks up, McVities bonfire bakes, Drench gets refreshed and Cadbury listens to Mumsnet. FEATURES p44 PMPs The rise and rise of price marked products and the change in shopping habits that makes the new trend in packaging an unstoppable force. p52 Hot Drinks Get all cosy with the best lines to stock as the temperature drops and shoppers come inside for something warming. p57 Christmas All the fun of the festive season and how to get the best margins as the nation goes into shopping meltdown in the run up to Christmas. p64 Food-To-Go High margins and a growing category. If you want to be on top of the trend in convenience shopping, take this ready-to-read feature out the door with you. p69 Must Stocks Impulse sales remain a fundamental to local retailing, so pushing up basket spend with prominently displayed options is vital. www.slrmag.co.uk

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ON THE COVER p14 Scottish Local Retailer plays a prominent role in bringing together the first ever Holyrood Cross-Party Group to sit with a sole remit to champion the Scottish local retail sector.

OCTOBER 2016 | SLR

28/09/2016 19:45:20

News BEER Sales of beer in off-trade bigger than on-trade for first time ever

GroceryAid goes AngloFrench for £90k GroceryAid, benefitted from a £90,000 fundraiser as over 70 intrepid cyclists saddled up in support of the industry benevolent fund, covering 230 miles in three days. The riders set off from Dairy Crest’s head office in Claygate, Surrey, to ride to Paris, and a grand arrivée under the Eiffel Tower. Plans are already underway for 2017, when the London to Paris Cycle Challenge will take place from 14th to 16th September, preceded by the Coast to Coast cycle challenge in late June. Email events@groceryaid.org.uk or call 01252 875925.

SWA Mentoring Programme needs you! The Scottish Wholesale Association is on the look-out for

Off-trade beer sales overtake on-trade for the first time Britain’s local retailers, off-licences supermarkets and discounters sold more beer than pubs, clubs, hotels and restaurants last year, for the first time since industry records began. A total of 51% of the 44m hectolitres (7.74bn pints) of beer sold in the UK during 2015 were sold in the off-trade, according to the British Beer and Pub Association (BBPA). This is in stark contrast to the picture in 2000 when more than twothirds of beer was consumer in the on-trade. The BBPA puts much of this change down to aggressive pricing by supermarkets which has encouraged more drinkers to buy beer to drink at home.

The popularity of wine has also had an impact while cider and RTDs have also taken share. The total amount of beer drunk in the UK last year has remained fairly consistent over the last four years, around 18% down on the peak in 2004.

That equates to around 72 litres of beer each, per year, which is actually below the EU average. The number of pubs in Britain, however, has not stopped declining. There were just 50,800 public houses opening their doors last year, down from 58,200 a decade earlier.

ambitious individuals working in the areas of buying, sales and management to participate in its mentoring programme. Designed to improve skills and nurture emerging talent within the Scottish wholesale industry, the initiative matches individuals with an appropriate mentor who could be from within or outside the wholesale industry.

Müller confirms October milk price increase Müller has confirmed that its standard litre milk price will increase by an average of one pence per litre from 1st October 2016. The move reinforces Müller’s pledge to maintain a stable, competitive milk price throughout the market cycle, and reflects a tightening of milk supply generally.

Bin It For Good Wrigley is supporting an initiative with environmental charity Keep Britain Tidy. Bin it for Good encourages people to do the right thing and put their rubbish in the bin while at the same time making money for local charities. The more rubbish that goes in the bin and the less litter that is thrown on the ground, the more

SOFT DRINKS Irn-Bru maker to shed staff in ‘Fit For The Future’ restructuring

AG Barr to cut 10% of staff as part of restructure Irn-Bru maker AG Barr is to cut 10% of its workforce as it enters the last phase of a three-year ‘Fit for the Future’ restructuring. Around 90 jobs will go across its commercial, supply chain and central functions with the majority of the changes expected to be in place by the end of the current financial year. The cost of the move to the business is likely to be around £4m but the ongoing benefit in reduction in costs would be around £3m a year. The news was announed as part of the company’s first half results which show that profits were maintained in what was a called a “solid” six months to July 30, despite revenues falling 2.8%. AG Barr Chief Executive Roger White blamed falling sales on “continued price deflation in the UK market, a challenging customer and consumer environment as well as poor weather in the important early summer months”, leading up to the end of the reporting period. Sales during the period fell to £125.6m, down from £130.3m last year. Profits rose slightly (0.5%) to £17m during the first six months. The company says it remains on track to deliver full year profits “slightly ahead of last year.” Within the report, the company also said it remains on track to have two thirds of its portfolio ‘lower’ or ‘no sugar’ by 2018, despite the fact that it views the decision to raise taxes on sugary drinks in 2018 as “a punitive and unnecessary distortion to competition in the UK market”.

NATIONAL LOTTERY

Retailers offered chance to win with Lottery Local retailers were given the chance to take part in a new special National Lottery store draw last month offering them the opportunity to ‘Dream Big’ alongside their players. Retailers had the chance to win one of three millionaire experience prizes worth around £10,000. The competition was unveiled by Camelot ahead of the first draw of the new EuroMillions game last month which included the addition of a ‘Mega Week’ each month – replacing the normal monthly Mega Friday draws. The initial Mega Week included two special draws which guaranteed 10 UK millionaires, each also winning a luxury lifestyle experience of 100 days around the world. This was followed by a massive one-off EuroMillions jackpot draw of £100m.

money is given to good causes. KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

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SLR | OCTOBER 2016

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28/09/2016 21:13:57

News LOBBYING History made as Cross-Party Group meets at Holyrood

Local retailing Cross-Party Group meets for first time History was made last month as over 50 representatives from the Scottish local retailing sector gathered at the Scottish Parliament for the first meeting of the new Cross-Party Group (CPG) on Independent Convenience Stores. This is the first time in the Parliament’s history that an independent retail CPG has been formed. The Cross-Party Group provides the chance for the industry to meet face to face with MSPs from the major political parties in Scotland to help them understand the challenges local retailers come up against. The creation of this Group gives the industry direct access to policymakers and ensures for the first time that the industry’s voice will be heard at the top table. The inaugural evening meeting was attended by no fewer than seven MSPs representing three different political parties, while a further four MSPs have formally registered their support for the CPG. This represents a very significant and unusually large

ACS Board changes The Association of Convenience Stores has confirmed the appointment of Patrick Sewell and Debbie Robinson as Chair and Deputy Chair respectively. Sewell is the Managing Director of the Sewell On the Go chain while Robinson is MD of Spar UK.

Wholesale in growth Sales for UK grocery wholesalers rose 0.3% in 2015 to £30bn, in spite of continued price deflation in retail, according to IGD. The body forecasts that the channel will grow by a further 1.3% over the next five years, driven primarily by the development of new clients in the foodservice market. IGD’s Chief Economist James

level of interest in the industry from Scottish politicians. SNP MSP Gordon MacDonald was a key player in establishing the CPG and has worked with the Scottish Grocers Federation (SGF) over the last few years to champion the local retailer’s cause at Holyrood. MacDonald was voted in as CPG Convener with Labour MSP Anas Sarwar elected as Vice Convener. SGF’s Head of Policy & Public Affairs, John Lee, was elected as

Secretary to the Group. He said: “We see this as a unique platform for bringing together everyone in our industry: retailers, suppliers and wholesalers. “It brings the issues affecting independent convenience stores directly into the Scottish Parliament and will be of real value to MSPs. The CPG has the potential to set the agenda for what Parliament sees as being the key issues impacting on businesses in Scotland.”

Walton said: “Now is the time for wholesalers and their partners to take the initiative and develop new growth opportunities. We have noted a decline of symbol stores this year (by 0.7%), but this is rooted in short-term structural change and, once passed, we should see growth reassert itself.”

Nisa MADL campaign hits new monthly high August saw a record amount

WHOLESALE Improved financial performance for Glasgow business

Filshill cost control and innovation delivers improved financial results Glasgow-based wholesaler JW Filshill has recorded pre-tax profits of £0.9m on a turnover of £143m in the year to 31st January. Growth of its KeyStore brand, tight cost controls across the business and a good performance by its international division saw the independent wholesaler deliver what it called a “satisfactory” performance. The company, which marked its 140th anniversary last year by rebranding and launching a new community-based marketing campaign, also made a number of key business developments as well as sales and marketing appointments. A new fascia for top-

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end KeyStore retailers will be rolled out this autumn. “The market remains highly competitive,” said Managing Director Simon Hannah, the fifth generation of his family to run Filshill. “We are well positioned to take

advantage of the opportunities we are creating and to return to revenue growth.” Hannah said the firm would seek to manage the principal risk of losing customers in a highly competitive independent retail sector by offering strong promotions, plus wide-ranging advice and support, including IT, marketing and social media expertise, to its retail customers across Scotland and the north of England. Hannah recently joined the board of Brewgooder, the world’s first craft beer to donate 100% of its profits to clean water projects, alongside social entrepreneur Josh Littlejohn.

donated through Nisa’s Making a Difference Locally charity, as Nisa retailers donated over £100,000 to good causes throughout the UK. Throughout the month, 85 donations were made to 54 unique causes including charities, schools, sports clubs and more, totalling a huge £108,173.

Booker sales up 15% on same period last year Booker Group has continued its recent run of solid form with what it describes as “a good quarter.” Group sales, including Budgens and Londis, rose by 15.2% on the same period last year with non tobacco sales up 15.5%. Like-for-like non tobacco sales grew by 0.9%.

OCTOBER 2016 | SLR

28/09/2016 21:13:58

News LOBBYING 2,000 retailers join fight against planned sugar tax

NFRN gathers support against ‘sugar tax’ introduction Nearly 2,000 independent retailers have now thrown their weight behind the NFRN’s call for the government to rethink its plans for a sugar tax on sugary drinks. Since the NFRN’s Day of Action against the proposed sugar tax on Friday 16 September, almost 1,500 store owners have filled out a postcard to Chancellor Philip Hammond registering their objection to the proposal and saying no to the tax. A further 459 have written to their MP, warning that the move will devastate their businesses while failing to tackle the UK’s obesity problems. Posters stating that a potential 58p price increase on a two litre bottle of a sugary soft drink will cause shop

closures and job losses, have also gone up in thousands of stores nationwide. NFRN Chief Executive Paul Baxter said: “While we understand that the government has got to get to grips with rising obesity levels, we believe the proposal for a sugar tax is flawed. That’s why thousands of independent retailers are joining our call for Chancellor Philip Hammond to reconsider and come up with a solution that will not threaten the survival of local independent shops.”

COMMUNITY Young people and children benefit from three decades of support

Scotmid partners with Childline and targets £300,000 Scotmid Co-operative has launched a partnership with Childline to raise money for the vital service which provides free and confidential support for children and young people who need help. The organisation, whose brands include Semichem as well as post offices and funeral homes, will display collection tins in stores and staff will take part in fund-raising events. The aim of the partnership is to raise £300,000 which will allow Childline to answer around 75,000

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SLR | OCTOBER 2016

calls, emails and online messages from children and young people who need someone to listen to them on a range of issues including exam stress, family issues, bullying and body image. Scotmid is also promoting ways staff and customers can volunteer for Childline, and hopes the partnership will also lead to more people actively helping the NSPCC service. The partnership comes as Childline celebrates 30 years since being set up by Dame Esther Ranzten in 1986.

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28/09/2016 21:13:59

News TOBACCO Industry first combination gantry holds tobacco and e-cigarettes

JTI trials ecigs-tobacco combi gantry unit

Environmental agreement grows stronger New signatories, including Burton’s Biscuit Company and Dairy Crest, have added more weight to the industry-wide Courtauld Commitment 2025,

JTI has unveiled a new solution for existing gantry units to support the fast-growing e-cigarette category. The first of its kind, the modification includes dedicated space for e-cigarettes built into the tobacco gantry. The new-look gantries – with space available to stock both JTI’s Logic e-cigarette brand and competitor products – have been trialed initially

by three retailers in England. JTI believes the new display area for e-cigarettes will help to arrange the category in an organised display and assist with ranging and availability. Samantha Brown of JTI’s Merchandising Solutions team commented: “The proliferation of brands in the e-cigarette category has led to poor category presentation,

lost sales and consumer confusion as retailers try and squeeze brands into any available space they can find. “JTI is leading the way as the first supplier to develop a true categoryled merchandising solution and it is part of our long term commitment to the category and retailers who choose to partner with us in developing the category further.”

aimed at reducing environmental impact in the food and drink industry. Brokered by The Waste and Resources Action Programme (WRAP), Courtauld 2025 has grown since its March launch to now include food & drink businesses representing 95% of the 2016 UK food retail market, and many leading brands, manufacturers, hospitality and food service companies.

WHOLESALE P&H releases results with flat sales and profits

P&H hails a ‘year of progress’ Palmer & Harvey has published its results for the year to 2 April 2016, showing flat revenues and margins and hailing the last 12 months as “a year of progress.” Revenues hit £4,435m, around £30m lower than in 2015, while gross profit remained exactly as it had been the year before at £215m. The group hailed key contract extensions including Sainsbury’s, One Stop, MRH, Moto and SSP and concluded that it has “a strong position in an evolving market.” The company currently has around a 14% market share in the growing convenience market. Investment for long-term growth in the form of a new chilled and frozen depot in Avonmouth and distribution centre in Leeds helped

suppress profits. The company’s owned retail business saw significant growth with revenues up 50% and store numbers up from 45 to 71. A significant improvement in the van sales business contributed to a 13% increase in revenue, per van, per day. Chris Etherington, Chairman and Chief Executive, said: “I am pleased to report on a year of progress for P&H. In recent years we have built strong foundations for our future, through a significant investment in our depot infrastructure. “To support the next phase of P&H’s development, this year we began a multi-year programme to improve our operating model and enhance customer service.”

Sales fall but growth expected Retail sales volumes fell in the year to September following last month’s increase, according to the latest CBI monthly Distributive Trades Survey. The survey of 120 firms, of CHARITY

Jet joins forces with children’s cancer charity Fuel brand Jet has joined forces with the UK’s leading children’s cancer charity, Children with Cancer UK, to support the charity’s ongoing efforts to determine the causes, find cures and provide care for children with cancer. Jet’s support of the charity coincided with Childhood Cancer Awareness Month in September, a nationwide initiative which sees many charities and organisations working together to highlight the impact of cancer on children, young people and their families. Jet will be getting involved in the initiative by wrapping one of its tankers in the charity’s distinctive crimson pink, and branding a further 50 tankers with large gold ribbons.

which 63 were retailers, showed that the volume of sales fell, despite expectations last month that sales would be largely unchanged. However, volumes look set to grow slightly in the year to October. Overall, sales for the time of year were considered to be above seasonal norms.

PRS launches retail tariff consultation PRS for Music has confirmed that it will be running an eight week consultation for the proposed implementation of a brand new tariff which will affect the retail sector. The new Retail Tariff has been designed “to make sure music licensing is simple, efficient and fair”. Retailers are invited to participate in this consultation to help shape the future tariff for the retail sector. The consultation will run until 21 November 2016 and retailers can have their say by visiting the official website at www.prsformusic.com.

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OCTOBER 2016 | SLR

28/09/2016 21:14:00

News SYMBOLS New meal deal offers cost-effective family meal solution

Convenience Matters with the SGF Retail crime has been one of the key areas of work for SGF in 2016. Our first ever retail crime seminar and retail crime report provided the springboard for a very proactive and innovative approach to tackling an issue of real importance for retailers. We have initiated a series of regular retail crime roundtable meetings, involving retailers, senior security colleagues from the co-ops and the multiples, the Scottish Business Resilience Sector and importantly Police Scotland. The Police Scotland link is vital, giving us a direct link to the ‘Force Executive’ – the team of senior officers responsible for operations and strategy. We are also looking at giving real protection to retailers and their staff. With the help of our associate members from the legal profession we have drafted legislation to give shop workers the same legal protection as emergency workers. Now that retailers are effectively being asked to implement legislation in-store (particularly in terms of age verification) and because we know that most incidences of violence and abuse are triggered by a request for ID or refusal of sale, then it seems only right that shop workers are adequately protected in law. Through our soon to be established Cross Party Group in the Scottish Parliament we will work with MSPs to look at how this draft legislation can be taken forward as a Members Bill. The draft bill has been framed in such a way as to ask MSPs why they wouldn’t want to protect staff who are providing valuable services to Scotland’s communities. We should hopefully have an answer soon.

John Lee, Head of Policy and Public Affairs, SGF.

SLR | OCTOBER 2016

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Nisa meal deal feeds the family for a fiver Nisa has launched a “feed the family” £5 meal deal, designed to provide an easy and affordable tea time meal solution for families. The promotion offers a different range of products every three weeks at £5 and is aimed at parents with busy lifestyles wanting to pick up a convenient mid-week evening meal without breaking the bank. The first meal deal, which ran in conjunction with Nisa’s Back to School campaign, featured Birds Eye Chicken Dippers (or Quorn Meat-free Chicken Nuggets as a vegetarian alternative), Aunt Bessie’s Crispy Homestyle Chips, Heritage Petits Pois and Heritage Neopolitan Ice Cream. The meal

deal is supported in-store with PoS including posters and shelf talkers, in addition to featuring in the consumer leaflet and on adverts over Nisa Radio. Selected stores will also benefit from additional PoS such as hanging signs, freezer window stickers and shelf stripping. Greg Goodwin, Head of Fresh and Frozen at Nisa, commented: “This fantastic £5 meal deal not only provides a great value meal solution for consumers but will also help our members to drive footfall and additional sales. This is just one of the ways in which we aim to help our retailers to establish a reputation for convenience, quality and excellent value for money.”

SPIRITS Home cocktail makers prompts sales growth at Co-op

Rise of ‘mixologist’ boosts spirit sales The premium drinks market has been bolstered by a James Bondstyle shift to homemade martinis as sales of vodka and gin soar, according to the Co-op’s own sales figures. The retailer has seen an increase in sales of 42% in premium vodka and 41% in premium gin so far

this year as shoppers trade up to recreate the sophisticated cocktails found in upmarket and exclusive bars across the country. Grey Goose Vodka and Hendricks Gin topped the charts as the favourite premium spirits, up by 21% and 87% respectively. Espresso Martini ingredients of coffee beans

AWARDS Scottish retailer takes the honours at London ceremony

Polmont retailer wins at Ignite Polmont Spar retailer Abdul Sattar picked up the ‘Most Improved Retailer of the Year’ gong at last month’s ignite awards, run by Imperial Tobacco. “It has been a great pleasure to work with the Imperial Tobacco team in growing our tobacco product lines and increasing sales and we are delighted to win,” said Abdul. The awards ceremony was preceded by an exhibition and over 350 members of the independent trade heard former England cricket captain Nasser Hussain OBE talk on the skills required to build a team and drive it to success. Melvin Ruigrok, Imperial Tobacco General Manager UK & Ireland, said: “Ignite is a key tool for outstanding retailers and an exceptional platform

for Imperial Tobacco to work together with the vital independent channel. Congratulations to the winners.” Also from Imperial, as part of its Partnering for Success initiative, is the release of a new video offering guidance to the independent trade around EUTPD II and standardised packaging legislation. View the video at www.imperial-trade.co.uk.

has seen an increase of 5.2% this year while vermouth, a staple of the James Bond classic, saw a sales increase of 11% this year. Co-op’s Spirit buyer, Sarah-Jane Wilson, said: “Super premium spirit brands are now a kitchen cupboard staple for Brits looking to create their own bar at home.” DISTILLERS

Edrington city centre HQ move Scottish whisky distiller Edrington is consolidating its HQ function in a new building at 100 Queen Street in Glasgow. The site, opposite the Gallery of Modern Art, is currently undergoing extensive refurbishment, including adding two new stories. Edrington stated earlier this year that it intended to move 130 posts from an out of town site in Glasgow and from Perth. Edrington brands include the single malts Highland Park and The Macallan, and the blends Famous Grouse and Cutty Sark.

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28/09/2016 21:14:01

Comment

THE CPG: A GOLDEN OPPORTUNITY The inaugural meeting at Holyrood last month of the Cross-Party Group (CPG) on Independent Convenience Stores is potentially one of the defining moments of a new era for local retailing in Scotland. For the very first time, our industry has the very real opportunity to open regular, sustained, deep dialogue with the Scottish Government – and it’s an opportunity we can’t afford to miss. Despite the fact that local retailing is a huge industry in Scotland, we have consistently failed to present ourselves to the powerbrokers and politicians as a unified industry. Instead, we have allowed ourselves to be perceived as a bunch of corner shop owners. When Tesco or Asda or Lidl or Aldi come knocking, Holyrood and Westminster are all ears. That’s principally because when someone from one of those companies speaks, he or she speaks on behalf of the whole company – and few politicians see it as a good idea to risk incurring the wrath of a business that size. This gives the mults and discounters far more influence on vital matters like planning. It helps explain the many questionable planning decisions we’ve all seen in the last decade where the concerns of small, independent businesses have been steam-rollered so that a new supermarket could be built. The new Cross Party Group gives the local retailing industry the opportunity to finally have its voice heard in the corridors of power. With MSPs from the SNP, Labour and the Scottish Conservatives involved in the CPG, our industry finally has the ear of politicians who can make a real difference to the future of local retailing. But – and it’s a big but – the CPG can only work if the entire industry gets behind it and engages positively and proactively with it. The last thing we need is another talking shop which achieves nothing. The initial signs, however, are positive. Over 50 people from the industry took the time to visit the inaugural meet last month, apparently one of the biggest attendances at a CPG of any description. Additionally, 11 MSPs so far have declared their interest in being part of the group. That again is apparently an unusually high number. So we’ve piqued the interest of the industry and the politicians; now it’s time to turn that into action and progress for an industry that is under extreme pressure on all sorts of fronts, as every reader of SLR knows only too well. This is our golden opportunity to stand up and fight for what we believe in. I challenge every local retailer in Scotland to play their part in helping make this CPG a success. Let’s make sure this industry finally gets the respect it deserves.

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

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

DESIGN Design & Digital Manager Richard Chaudhry 0141 222 5300 | rchaudhry@55north.com Designer Lisa Deakin 0141 222 5388 | ldeakin@55north.com

EVENTS Events & Operations Manager Cara Begley 0141 222 5381 | cbegley@55north.com Events & Operations Assistant Chloe Buchanan 0141 222 5383 | cbuchanan@55north.com

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

ANTONY BEGLEY, PUBLISHING DIRECTOR

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Scottish Local Retailer is produced monthly by 55 North Ltd. © 55 North Ltd. 2016 ISSN 1740-2409.

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28/09/2016 18:49:05

Cross-Party Group on Independent Convenience Stores

Cover Story

HISTORY IN THE MAKIN INDEPENDENT RETAILIN Last month saw the inaugural meeting of the Cross-Party Group on Independent Convenience Stores at Holyrood – marking a historic milestone for our sector. SLR was there to record the meeting for posterity. BY ANTONY BEGLEY

MSPS SUPPORTING THE CROSSPARTY GROUP Q Gordon MacDonald, SNP Q John Mason, SNP Q Gil Paterson, SNP Q Richard Lyle, SNP Q Ben Macpherson, SNP Q Daniel Johnson, Labour Q James Kelly, Labour Q Anas Sarwar, Labour Q Gordon Lindhurst, Scottish Conservatives Q Murdo Fraser, Scottish Conservatives Q Rachael Hamilton, Scottish Conservatives

istory was made last month as over 50 influential representatives from the Scottish local retailing sector gathered in Committee Room 4 at the Scottish Parliament at Holyrood for the inaugural meeting of the Cross-Party Group (CPG) on Independent Convenience Stores. This is the first time in the Parliament’s history that a CPG focused exclusively on Scotland’s independent retailing trade has been formed. As the name suggests, Cross-Party Groups provide a rare opportunity to meet directly with MSPs from across the political parties to engage with them, help them understand the challenges our industry faces, share our experiences and raise awareness of relevant issues. It’s difficult to overstate the potential importance of the creation of this Group in terms of giving Scottish local retailers more direct access to policy-makers and ensuring, for the first time, that our voices are heard at the very top table. SLR was delighted to be ther, playing what we hope will be a vital role in sharing the development of the group over the coming months with the wider retailing community in Scotland.

SCOTTISH LOCAL RETAILING IN NUMBERS: Q Q Q Q

5,602 convenience stores in Scotland 75% are run by small business owners 44,332 jobs are provided by the sector £0.5bn gross added value to the economy every year

MASS SUPPORT More than 50 industry representatives took the time and made the effort to attend the inaugural meeting at Holyrood, coming from retail, wholesale and supplier backgrounds. This in itself is a remarkable show of commitment from the trade. They were joined on the evening by no fewer than seven MSPs representing three different political parties, while a further four MSPs have formally registered their support for the CPG. That represents a very significant level of interest in our industry and, more importantly, represents a massive opportunity. Huge credit must go to SNP MSP Gordon 14

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ELECTED OFFICE BEARERS Q Convener – Gordon MacDonald, SNP MSP Q Vice Convener – Anas Sarwar, Labour MSP Q Secretary – John Lee, Head of Policy & Public Affairs, SGF

MacDonald, a long term friend of the local retailing sector, who was among the driving forces in getting this CPG off the ground. Much credit must also go to the Scottish Grocers Federation (SGF) – and John Lee, its Head of Policy & Public Affairs – for the instrumental role in turning this fantastic opportunity into an even more fantastic reality. This has not been an overnight success; the creation of the CPG comes off the back of at least three years of focused work and passion, driven principally by the SGF and often supported by SLR. It is worth noting that the CPG still www.slrmag.co.uk

28/09/2016 21:15:54

Cross-Party Group on Independent Convenience Stores

Cover Story

KING FOR SCOTLAND’S ILING SECTOR “The CPG gives Scottish local retailers more direct access to policy-makers and ensures for the very first time that our voices are heard at the top table.”

Front L-R: Abdul Majid, President, SGF; Gordon MacDonald MSP; John Mason MSP. Back L-R: Pete Cheema, Chief Executive, SGF; John Lee, Head of Policy & Public Affairs, SGF; James Kelly MSP; Anas Sarwar MSP; Dennis Williams, Vice President, SGF; Daniel Johnson MSP.

requires formal approval from the Standards Committee before it will be officially recognised, but with such significant support from both non-MSPs and MSPs, Gordon MacDonald is confident that this will be forthcoming.

GET INVOLVED The success of this CPG, however, is far from a foregone conclusion. The Group will meet four times a year and, for it to be a wholehearted success, it requires sustained large scale engagement from all corners of the local retailing sector in Scotland: retailers, wholesalers, suppliers and influencers. SLR www.slrmag.co.uk

Cover Story.indd 15

WHAT IS A CROSS PARTY GROUP? Q Cross-Party Groups provide an opportunity for MSPs from across the parties to engage with external stakeholders, primarily to enable the sharing of experiences and information on a particular subject and to raise awareness of issues relevant to MSPs’ parliamentary duties. Q Cross-Party Groups are formed and led by MSPs although it is expected that groups will also have non-MSP members, whether individuals or representatives of organisations. Q Cross-Party Groups do not have any power to introduce issues formally into the parliamentary or government systems and do not have access to any financial or staffing resources, other than is necessary to all Cross-Party Groups to meet in the Parliament or otherwise fulfil the requirements as set out. Q Cross-Party Groups must include representatives from at least three of the five parties currently represented at Holyrood. Q The Groups are entirely free from any of the formal structures of the Parliament and are in no way associated with or linked to the Parliament’s committee system.

intends to play a key role in sharing the work of the CPG and showing retailers how they can engage with the Group and make sure their voices are heard. That process started last month with the inaugural meeting and the election of the CPG’s official office bearers. Gordon MacDonald was unanimously voted in as Convener with Anas Sarwar elected as Vice Convener. SGF’s John Lee was elected as Secretary to the Group and immediately commented: “This is the first time that our industry has had a platform like this. This is a historical evening for the Scottish independent retailing sector. We see this as a unique platform for bringing together everyone in our industry: retailers, suppliers and wholesalers. “It brings the issues affecting independent convenience stores directly into the Scottish Parliament and will be of real value to MSPs. The CPG has the potential to set the agenda for what Parliament sees as being the key issues impacting on businesses in Scotland.” SLR will report back on every meeting of the CPG and will also share every significant development along a path towards what we hope will be a brighter new future for our industry, one where our voices are listened to as often and as enthusiastically as those of our major multiple and discounter competitors. This is a unique opportunity: it is up to you to make sure we capitalise on it. OCTOBER 2016 | SLR

28/09/2016 21:15:56

Cover Story

Cross-Party Group on Independent Convenience Stores

A WORD FROM THE NEW CROSS-PARTY GROUP CONVENER... As part of the launch of the new Cross-Party Group on Independent Convenience Stores, the newly elected Convener of the Group, Gordon MacDonald MSP, kindly agreed to draft on open letter to SLR readers. This letter outlines his reasons for being so supportive of the local retailing industry in Scotland and explains why he believes this sector is so important to the overall Scottish economy.

SLR | OCTOBER 2016

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www.slrmag.co.uk

28/09/2016 21:15:57

News

Products

SNACKS

Popping into the market Walkers is set to give retailers further opportunity to capitalise on the growing popcorn segment with the launch of a new popcorn brand, Pop Works & Company. The new line, which carries a £1.50 RSP, is produced using a pioneering ‘wet popping’ method, making a range of popcorn that is light and crunchy. Available in four unique flavours: Sticky Toffee Pudding, Peanut Butter & Caramel, Apple Pie, and Sweet & Salty, the bright packaging has been designed to have real on-shelf stand-out. Pop Works was launched with a unique digital campaign, supported by experimental shopper marketing. The brand has partnered with social influencers and vloggers in order to create entertaining content for the target audience. Thomas Barkholt, marketing director at PepsiCo, commented: “Popcorn already presents a tremendous opportunity for retailers and we anticipate that the segment will maintain its rate of growth in the next five years, so we are keen to support retailers and help them to take advantage of the growth in demand.”

ProductNews IMPULSE SALES REMAIN AN INTEGRAL PART OF LOCAL RETAILING, CHECK OUT THE LATEST MUST-STOCKS P69 NUTRITION Breafast giant adopts traffic light nutritional information system

Weetabix adopts traffic light nutritional system British breakfast giant Weetabix has added all-green traffic lights to its Weetabix Original and Weetabix Protein packaging, making it one of the few cereal companies to share its nutritional credentials in this way. Kevin Verbruggen, Head of Brand at Weetabix says: “Shoppers tell us that they’re often confused by the wide range of cereals, and the easy-to-read traffic lights make it simpler for health-conscious shoppers to make a quick, informed choice. This can only benefit shoppers, their families, and the category.” Shopper’s Voice research shows almost seven in 10 people are

concerned about the health benefits of cereal and 65% are looking to reduce the sugar intake in their diet. These concerns are being reflected in consumers purchasing choices, as higher sugar cereals face a decline in sales, while Weetabix sales have grown £2m this year to date, according to Nielsen data. “We are actively encouraging more children to start the day with a good breakfast. All of our family cereals meet the strict nutritional standards for marketing to children, which highlights how seriously we take our responsibility to providing nutritious breakfast choices.” Verbruggen added.

BEER

When you Drive, Never Drink Formula One legend and road safety pioneer, Jackie Stewart, is the new ambassador for F1 and Heineken’s joint campaign “When you Drive, Never Drink” which promotes a clear anti-drink-driving message. Gianluca Di Tondo, senior director global Heineken brand at Heineken, said: “We have partnered with the ideal ambassador for [the] campaign. Sir Jackie’s track record in road safety is unparalleled, with nearly 50 years of pioneering work.”

SLR | OCTOBER 2016

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www.slrmag.co.uk

28/09/2016 21:24:06

Products

News

SNACKS

And the winner is…Sizzling Salsa Doritos’ bold flavour campaign, A or B, has reached its conclusion, drawing in over 50,000 consumer entries. In a twist to previous mechanics, shoppers were invited to eliminate their least favourite of the flavours, and in a close fought battle, Doritos B (Ultimate Cheeseburger) lost out to the more popular Doritos A (Sizzling Salsa). Sizzling Salsa is now officially introduced as a new flavour in the Doritos range, RSP: £1.99.

9 BREAKFAST

World porridge day Scottish oats company Stoats has been announced as the official partner for World Porridge Day 2016, which takes place on Monday 10 October. A celebration of Scotland’s traditional dish, World Porridge Day supports Mary’s Meals, raising awareness of the charity’s work and generating funds to feed children in schools in Malawi. To support the initiative, Stoats is encouraging people to get involved and pledge support via their social campaign #PorridgeSmiles, to raise a smile and raise funds for Mary’s Meals. The oats company

is also donating one fifth of all online porridge sales throughout September and October. Managing Director at Stoats, Tony Stone said: “We are extremely proud to be the official partner for World Porridge Day 2016. As an oats company, we know a thing or two about porridge so it’s great to be part of the celebration and to be contributing to such a worthwhile cause. We want to spread #PorridgeSmiles far and wide and encourage people to get involved, at home or with work colleagues, and have some fun raising smiles and raising money.”

WIN NEW millions of millions NEW millions of millions ways to try all the flavours in handy pocket sized PMP tube. Strawberry, Bubblegum, Cola, Apple and the NEW Apple and Blackcurrant mixed pack! 30p each or 4 for £1. SLR are giving 5 lucky readers the chance to win the full Millions range - that’s millions of millions to be won! To be in with a chance of becoming a winner, simply send an email containing your details to mailinglist@55north.com - or fill in the attached entry form and post to:

Name: Company/store name: Address:

Daytime phone number: Email Address:

Millions of Millions Competition SLR, Waterloo Chambers 19 Waterloo St Glasgow G2 6AY

CLOSING DEADLINE FRIDAY 28TH OCTOBER 2016 Ts&Cs: This competition is only open to readers of SLR. Only one entry per store is permitted. Entries received after the closing date will not be considered. The prize is not transferable and the judges’ decision is final.

www.slrmag.co.uk

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OCTOBER 2016 | SLR

28/09/2016 21:24:10

Off-Trade

News

Off-TradeNews GET READY FOR XMAS! P57 BEER Champions League sponsor puts Jose in the hot seat

Edinburgh Gin sold Ian Macleod Distillers has taken ownership of the wellestablished and fast-growing Spencerfield Spirit Company, including its flagship brand,

Heineken recruits Mourinho for Champions League campaign Heineken has unveiled a new UEFA Champions League TV commercial featuring Manchester United manager Jose Mourinho, although United will not be featuring in this year’s competition having failed to qualify. Shot by award-winning director Guy Ritchie, the commercial is part of Heineken’s ‘Champion the Match’ campaign and launches on TV and digital channels to coincide with the new 2016/17 season.

Edinburgh Gin. This follows a long-standing arrangement with Ian Macleod as the exclusive distributors of Edinburgh Gin and Spencerfield Spirit’s whisky range. Ian Macleod will now take full ownership of the Spencerfield Spirit portfolio.

Brancott celebrates heritage Premium New Zealand wine brand Brancott Estate, from Pernod Ricard UK, has unveiled its new packaging. The new packaging pays homage to its brand

Gianluca Di Tondo, Senior Director Global Heineken Brand, said: “Preparing for UEFA Champions League match night makes the experience even better. With a little bit of thought and effort, fans and their friends will have a greater experience. But sometimes a little inspiration is needed, and who better to motivate them to ‘Champion the Match’ than Jose Mourinho.” The campaign will launch in over 90 countries and run throughout the 2016/17 season.

home, celebrating the iconic Brancott Vineyard, site of the

SPIRITS: New seasonal spirit from liqueur expert

FLAVOURED CIDER

first Sauvignon Blanc plantings

Baileys pump in the pumpkin

Rekorderlig unveils Spice Plum

in Marlborough.

Macallan gifting series The Macallan single malt whisky has unveiled a new premium gifting series, inspired by the brand’s commitment to

Baileys has introduced Pumpkin Spice as its latest limited edition flavour. Only available for autumn the seasonal variant blends Baileys Original Irish Cream with the flavour of autumn spices such as cinnamon, cloves and nutmeg. Marina Thompson, Baileys Europe Brand Manager, said: “We have created a seasonal twist on Baileys.”

exceptional oak casks, featuring a range of whiskies in the current portfolio in limited edition carton, tin, glass and water jug packs. This new series, which features three distinct designs, is to be released sequentially over the next three years, beginning with Oak Forests. The gift packs carry RSPs from £38 to £49.

SLR | OCTOBER 2016

OT News.indd 20

BEER: Charitable beer adds board members

Brewgooder bolsters its board Simon Hannah, JW Filshill MD, has joined the board of craft beer label Brewgooder along with his Group Commercial Director Chris Miller. Brewgooder, which donates its entire profits to clean water projects, launched in March 2016 and is the brainchild of Social Bite

founders Alan Mahon and Josh Littlejohn. In five months the company has raised £60,000 via crowdfunding and continues to seek investors to provide clean drinking water to millions of people in developing countries. The beer is brewed in partnership with Brewdog in Ellon.

Premium Swedish brand Rekorderlig Cider has launched a new variant, Rekorderlig Spiced Plum. The limited edition flavour – available now – will replace the brand’s Winter Cider, which first launched in 2009. Fusing pear cider with plums, cherries and a mix of spices including cloves and cinnamon, Spiced Plum is a unique addition to the Rekorderlig Cider family, which has continued to go from strength to strength. The 4% abv product will be supported by sampling at key customer accounts and winter themed events, as well as by a dedicated marketing campaign.

www.slrmag.co.uk

28/09/2016 19:33:25

Off-Trade

News

CIDER Blackthorn launches four pack and super strength line

Blackthorn adds new lines Blackthorn has launched two new variants in the impulse channel, available now, including a super strength 7.5% abv cider. The two new lines – Blackthorn Dark Fruit (abv 4%) and Blackthorn Super (abv 7.5%) – are available now and the brand expects them to perform well in what it describes as a “vibrant cider market”. Blackthorn Dark Fruit is a blackcurrant and blackberry blend available in 6x4x500ml cases (RSP £5.29) while Blackthorn Super delivers a “distinctive and unforgettable” taste, blending bittersweet cider apples for a crisp flavour

and is available in 24x500ml cases (99p PMP). The dark fruit sub category is currently worth £28m to the impulse channel according to Nielsen Scantrack data to mid-August. It now commands 8% by value of the category. Amy Burns, Marketing Manager at C&C Brands, commented: “We know there is always great interest in new products in the cider market. With Blackthorn Dark Fruit and Blackthorn Super we are enriching parts of the where retailers are looking for credible alternatives to the current options.”

LAGER Guinness makes lager available in wider array of formats

Hop House 13 adds new pack format Guinness is introducing two new pack formats for its Hop House 13 premium-crafted lager: a 330ml bottle 12 pack and a 650ml sharing bottle. Owner Diageo says the move reflects consumer demand in the World Beer Category, where 12 packs, 4 packs, 650 ml and 330 ml formats make up over 45% of total category sales. The company says the new formats will enable retailers to further improve profits from this growing segment, currently responsible for 80% of the growth in total

beer. Nick Curtis-Davis, Head of Innovation for Guinness, said: “Hop House 13 has proven to be an extremely popular new beer from The Brewers Project, appealing to premium lager drinkers and encouraging consumers to broaden their beer repertoires. By introducing two new pack formats we hope to increase our appeal to consumers across a wider range of drinking occasions.” The full range will now include: 330 ml bottle, 4 x 330 ml, 12 x 330ml and 650ml sharing bottles and will start to appear on shelves this month.

WHISKEY: Jack turns 150 and launches new bottle and expression to celebrate

JD celebrates 150th with new bottles Jack Daniel’s Distillery has become the oldest registered distillery in the USA, clocking in 150 years of production, and has marked the occasion by unveiling a commemorative 150th anniversary bottle of Jack Daniel’s Old No. 7. The distiller has also launched an exclusive super premium 150th Anniversary expression. The launches are supported by a multi-media promotion also running through broadcast (TV, cinema and pre-roll), on billboards, in print, online and on social media. It will culminate with a global event at the distillery this month and rollout into selected premium outlets.

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Q: Our head office has asked us to put up some stands outside of our display area promoting a particular spirit brand with empty “gift boxes” on display. Is it legal because there is no actual alcohol on display? Stephen Says: No. Although there is no alcohol in these stands, there is a condition on all off sale licences prohibiting “promotion” or advertising of alcohol out-with the approved display area. There are a few exceptions to this rule, branded t-shirts and so on, but this would be a breach of the prohibition in my view. Q: My cousin is returning to Pakistan for family reasons and is likely to be there for several months. He holds the licence for our store and I work for him. He say’s because I hold a personal licence nothing needs to be done about this but I’m not sure. Niall Says: If your cousin holds the premises licence as an individual there is nothing to stop that remaining the case while he is abroad. But if he is named as the day to day manager I would recommend he comes off as manager whilst he is away, as it appears like he may be some time. If you hold a valid personal licence, you can be the named manager. Your cousin can reverse the position when he returns. Q: I’m a SGF member and tried to lodge an application naming my son as the new manager in one of our shops. The board rejected it saying they didn’t have proof of his updated training. What does this mean? Stephen Says: Many boards now require a full copy of a personal licence before allowing a manager change. This lets them confirm that the licensee has done the appropriate refresher training within the right timescales. If he or she hasn’t, the licence has probably been revoked. If your son did not do the training on time he’ll need to sit the full course again and re-apply for a new personal licence. If you are a member of SGF, call our licensing hotline for free, for more guidance.

OCTOBER 2016 | SLR

28/09/2016 19:33:27

Inside Business

SGF Conference 2016

THRIVING IN AN ERA OF CHANGE We are only days away from one of the highlights of the Scottish local retailing calendar, the SGF Conference 2016. SLR previews what looks like a spectacular event.

BREAKOUT SESSIONS In depth breakout sessions on a number of key topics affecting Scottish local retailers will be hosted by: Q Camelot Q Imperial Tobacco Q Mars Q SGF Healthy Living Programme

he Scottish Grocers’ Federation Conference returns to Edinburgh this year as a highlight of the convenience retailing calendar and not-to-be-missed event for retailers, wholesalers and suppliers. The two-day conference will be held on Thursday 13th and Friday 14th of October with the business sessions taking place once more at the spectacular RBS global HQ at Gogarburn in Edinburgh.

The social sessions this year will be stepping up a gear as they move to the super plush Balmoral Hotel on the city’s famous Princes Street. As well as a series of presentations from leading players in the industry, the event will also feature a trade exhibition, a host of indepth breakout sessions and a Gala Dinner with top quality entertainment and plenty of opportunities to catch up with old friends and make some new ones.

13TH & 14TH OCTOBER – RBS GOGARBURN & THE BALMORAL HOTEL WWW.SGFCONFERENCE.ORG.UK

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SGF Conference 2016

Inside Business

WHO WILL BE ATTENDING? Thanks to the unique way the event is structured and funded, the SGF Conference is attended by more independent retailers than any other single event in Scotland. Symbol group members and unaffiliated independent retailers from across the country flock to Edinburgh to hear some inspirational and high powered speakers, catch up with industry colleagues and enjoy some down time with everyone involved in the Scottish convenience sector.

BOOK NOW!

Email Cara at cbegley@55north. com SPEAKERS Q Pete Cheema, Chief Executive, SGF Antony Begley, Publishing Director, SLR Q Steve O’Neill, Marketing Director, PayPoint Q Duncan Tyrell, Category Strategy Controller, Warburtons Q Marcus Wright, Economic Advisor, RBS Q John Lee, Head of Policy & Public Affairs, SGF Q Jonathan Kemp, Commercial Director, AG Barr Q Dennis Williams, Incoming President, SGF Q Chris Gallacher, Managing Director, Scotfresh Q Andy Batt, Market Development Manager, Velocity Worldwide Q Murdo Fraser, MSP

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The Thursday business session will be hosted by SLR Publishing Director, Antony Begley, while the Friday session will be chaired by AG Barr Commercial Director Jonathan Kemp. A host of brilliant speakers should keep the audience energised and enthused. It’s an event like no other, so make sure you are there. It’s not too late to book your place. Call Cara on 0141 222 5381 or email cbegley@55north.com to guarantee your place.

RETAILERS GO FOR FREE!

If you’re a local retailer and want to attend free of charge, email cbegley@55north.com Places issued on a first come first served basis. OCTOBER 2016 | SLR

28/09/2016 19:28:13

Inside Business

2 Minutes | Gavin Partington

Gavin Partington As a coalition of UK organisations and businesses join forces to challenge the proposed soft drinks tax, we speak to the Soft Drinks Association Director General to find out more. SO, WHAT EXACTLY IS FACE THE FACTS, CAN THE TAX? In a nutshell, we are a coalition of organisations big and small that will be affected by the soft drinks tax. We are all impacted by the tax, and all want to see policy based on the facts – so we are joining together to make our voices heard. Gavin Partington – Director General, British Soft Drinks Association Gavin joined the BSDA as Director General in 2012, having previously been interim Chief Executive at the Wine and Spirit Trade Association. He was previously Director of Communications for the Lawn Tennis Association and telecoms firm Energis. He began his career in regional newspapers before joining ITV as a political correspondent, progressing to be political editor of GMTV.

WHO IS PART OF THE COALITION? We are a group of large and small soft drinks manufacturers, businesses from the soft drinks supply chain, and those who sell soft drinks including small shops, newsagents, and pubs. We represent hundreds of thousands of jobs in the UK. Our members include organisations such as the Scottish Grocers’ Federation and the British Beer & Pub Association.

WHY SHOULD LOCAL RETAILERS IN SCOTLAND BE CONCERNED? Analysis by Oxford Economics estimates that the soft drinks tax will lead to 370 job losses in Scotland, 169 of those being in retail. The tax will also hit smaller retailers the hardest – with twice the sales drop in convenience stores than will be experienced by supermarkets.

WHAT CAN THEY DO TO HELP? We’re asking all Scottish local retailers to write to their MP to express their concern with the policy and to ask the Government to urgently review it based on the evidence that the tax will not reduce obesity but will harm jobs.

WHAT HAS THE INDUSTRY ALREADY DONE TO COMBAT OBESITY?

SLR | OCTOBER 2016

2 Minutes.indd 24

Since 2012 the soft drinks industry has worked to reformulate products which has reduced consumer sugar intake from soft drinks by 16%. In 2015 the soft drinks industry became the only food and drink category with an ambitious plan to reduce calorie intake from its products by 20% by 2020. The Government’s own Defra Family Food Survey shows that purchases of regular soft drinks fell by 32% between 2010 and 2014, whilst low calorie drink purchases increased by more than a third. Our efforts are working!

DOES THE COALITION SEE THIS AS ANOTHER PIECE OF WELL-MEANING BUT MISGUIDED LEGISLATION THAT WILL COST THE INDUSTRY DEAR? As a coalition we recognise and support the Government in its commitment to reducing obesity. However, evidence by Oxford Economics shows that the sugar tax will only reduce calorie consumption by five calories per person per day but will risk more than 4,000 jobs across the UK. We want to see effective policies that tackle obesity without risking jobs.

WHAT ARE THE NEXT STEPS FOR THE COALITION? We will continue to raise our concerns with the Government and will be hosting events at both the Labour and Conservative party conferences. Members of the coalition are also hosting their own events and encouraging their members to write to their local MP to make them aware of the negative consequences of the tax. We would urge all businesses which are affected by this tax to have their say and write to their MP via the website www.canthetax.org.uk www.slrmag.co.uk

28/09/2016 15:02:03

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GroceryAid is the trading name of the National Grocers Benevolent Fund. A registered Charity Reg. No 1095897 (England & Wales) & SCO39255 (Scotland). A company limited by guarantee, registered in England & Wales no 4620683

EUTPD2

Inside Business

JTI LAUNCHES NEW WEBSITE TO EXPLAIN EUTPD2 CHANGES TO SHOPPERS Tobacco manufacturer JTI has launched a new website to explain the implications of the EUTPD2 changes to shoppers, helping take some of the heat off of retailers. BY ANTONY BEGLEY

ith all major legislation changes that happen in local retailing, particularly in tobacco and alcohol, it’s invariably left to the retailer to actually manage the implementation and policing of these new laws. Unfortunately, this often involves dealing face to face with confused and occasionally angry customers who can mistakenly blame the retailers for the changes. With the EUTPD2 changes now well underway before the major May 2017 deadline, this is another potential source of grief for the retail trade – so it’s great news that major tobacco manufacturer JTI has helped the retailer’s cause with the launch of a new shopper-facing website which explains everything your customers needs to know about the changes. Found at www.packchanges.co.uk, the site is part of a major awareness campaign that JTI is championing which includes posters and leaflets, as well as the new site. Faced with confused or interested smokers, retailers can now direct them to the site where they can find all the information they need, including: Q What is changing Q When it is changing Q Why it is changing Q What is not changing The site also features a section on illegal tobacco, highlighting the dangers of buying illicit products, the consequences of buying illicit products and some advice on how to report and illegal activity they may come

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across. Supporting posters are available from JTI reps and should be displayed in a prominent position, with retailers making use of the leaflet dispenser that JTI will also be supplying as part of its support. Jeremy Blackburn, JTI Head of Communications, comments: “JTI is absolutely committed to supporting the retail trade through the upcoming legislative changes, giving retailers all the detail they

need to be prepared. And as compliant stock comes through, now is the time to get ready. “As an industry leader we have listened to retailers who asked for help in informing their customers of the changes. “The website, www.packchanges.co.uk and supporting poster and leaflet materials will drive greater awareness of the change in legislation and ensure a smooth transition.” WWW.PACKCHANGES.CO.UK OCTOBER 2016 | SLR

28/09/2016 15:13:32

Inside Business

SGF Annual Golf Day

LOCAL RETAILERS IN THE SWING AT ST ANDREWS SGF’s annual golf day returned to the superb Duke’s Course at St Andrews recently. SLR was there to catch all the action, on and off the fairway. BY ANTONY BEGLEY

n marked contrast to the previous year, this year’s SGF Annual Golf Day took place in glorious conditions at the superb Duke’s Course at St Andrews. As befits such wonderful surroundings and such fantastic weather, the Golf Day was officially the most successful in the Federation’s long history with a completely full house – all 18 four balls were filled for the first time. The event saw a mix of local retailers, suppliers and wholesalers gather to catch up, enjoy a day of networking and, of course, have a tilt at winning some of the oldest trophies in Scottish golf. As a matter of fact, one of the SGF trophies up for grabs on the day has a longer history than even the Ryder Cup itself! When all 72 players had bravely chipped, drove, putted, sliced, hooked and hacked their way around the long and challenging course, the winners were finally separated from the rest with the winning teams and individuals as follows:

SLR | OCTOBER 2016

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TEAM EVENTS Q McCurrach Cup – Booker Q FingerPost Cup – JW Filshill

INDIVIDUAL EVENTS Q Caledonian Cup (Best Scratch score) – Gordon Landsburgh Q Howden Trophy (Best Stableford score) – Ian MacDonald Q Nearest the Pin – Joe O’Raw Q Longest Drive – Steve Stuart Q Beat the Pro – Paul Cunningham Q Special Ladies Prizes – Maureen Fraser and Hilary Landsburgh In addition, this year’s tournament saw players have the opportunity of winning £10,000 in cash for a hole in one. Disappointingly, if not surprisingly, the prize went unclaimed. www.slrmag.co.uk

28/09/2016 19:43:27

SGF Annual Golf Day

Inside Business

PARTICIPATING TEAMS Q JTI Q Booker Q Vertex Scotland Q Warburtons Q Burtons Q Golden Casket Q Topps Q Londis Q Maxxium Q JW Filshill Q PayPoint Q Talon Q Whyte & Mackay Q AB Inbev Q Lucozade Ribena Suntory

Q Costcutter Q Co-op Q AG Barr

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OCTOBER 2016 | SLR

28/09/2016 19:43:38

SLR REWARDS

SNAP CRACKLE AND IPAD Taking the applause and taking the limelight, Wendy Stephen stepped on stage at the SLR Awards in June to collect the Reward for bagging the Crisps and Snacks category for Spar Condorrat – and walked away with a new Apple iPad for her efforts.

risps and snacks is at the heart of any convenience offer so it’s a category that all local retailers have to get right in-store. In such a massive category it’s no surprise that entries for the category at this year’s SLR Awards were both bountiful and packed full of quality – but there can only be one winner and this year it was Wendy Stephen who runs Spar Condorrat with her parents George and Ruby. Adjudged to be a truly outstanding entry, the store visit itself quickly convinced the judges that they had found what they were looking for. The fixture had been revamped in recent times to broaden the appeal of the crisps and snacks range to a wider audience and it looked simply perfect. A lot of attention to detail and creative thought were in evidence with great use of multi-siting and a kids section really working well in the store. From no matter where she might be, Wendy Clyne can be keeping up with all

the latest from the world of local retailing – and from the online feeds of everyone’s favourite retail news source, SLRmag. co.uk – on her swish new iPad. It’s great for doing all the admin around the story, making Wendy look even more cool, and, as suggested around the Rewards office, playing Candy Crush or re-running videos of the Rewards night. Of course, category sponsors Pringles are right up there, as a prominent and popular part of the snack offer. Always well promoted, Pringles are an anytime popular choice. “We recently revamped the store crisps and snacks area and range, and it’s become really welcoming, “said Wendy. “There’s a dedicated children’s range, and secondary siting of promotional products.” The judges were impressed to, and recognised the strong role the store plays in the community. Now Wendy, and her parents can keep in touch even more easily with that Rewards iPad.

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28/09/2016 19:21:46

SLR REWARDS

Stocked up with smiles. Store Supervisor Rhona Anderson and Louise Kerr from Coca-Cola European Partners.

SOFT LANDING FOR POLBETH There’s always a strong entry for the category of Soft Drinks Retailer of the Year, and 2016 was no different. So it’s well done to Polbeth Spar and Service Station and a red letter day in more ways than one for all the team.

t’s just one of the things that makes the SLR Rewards unmissable. All our great suppliers and partners put up fantastic prizes that really are valuable to retailers. So when our friends at ColaCola European Partners stepped in to sponsor the Soft Drinks Retailer of the year, the winner was guaranteed a something special. Store supervisor Rhona Anderson knew it was going to be all hands on deck when CCEP’s Louise Kerr arrived with a load of stock in recognition of the team’s achievement. Somehow store owners Denis and William McCormack contrived to be off the premises at the time, but that’s only because it’s been a big year for Polbeth Spar and Service Station, with big plans for next year too. “This year has www.slrmag.co.uk

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been really busy,” said Denis, “and with lots happening locally, like a new school opening and major roadworks, there’s bound to be new customers coming through the doors. We’ll be making some changes to cope, and even opening a Subway. It’s all go.” That’s not all. There’s a fantastic Red Letter Day in the diary for the winners too. Whether it’ll be skydiving or stunt flying, or something keeping their feet on the ground, like a luxurious spa day of pampering, is entirely up to the winners. Louise Kerr from Coca-Cola European Partners obviously joined in the celebrations, and with such ambitious owners, and a goahead attitude, who’s to say Polbeth Spar won’t be in the running again. OCTOBER 2016 | SLR

28/09/2016 19:21:49

Inside Business

SGF Study Tour

BORDERS ON TRACK FOR GROWTH

The SGF Annual Study Tour saw over 50 retailers, wholesalers and suppliers try out the new Borders rail link and discover how it is helping to open the region up for inward investment and tourism. BY SIMON WALTON

he Scottish Grocers’ Federation kept up its recent track record of building creative events with a fascinating study tour to the Scottish Borders, making timely use of the new Borders Railway. More than 50 retailers, wholesalers and suppliers boarded the train south from Edinburgh on the very day that marked the first anniversary of the opening of the rail link. The delegates were treated to series of presentations and site visits that gave them a rapid fire but highly informative insight into how the rail link is beginning to open to the Borders up to increased investment and tourism – all of which is great for the area’s local retailers. Supported by Abellio ScotRail, the event was hosted at the impressive new Galashiels Interchange building and saw a varied set of speakers from the local area, including local 34

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SGF Study Tour.indd 34

Council members, local retailers and local producers. SGF Chief Executive Pete Cheema welcomed the audience, saying: “In recent times we’ve tried hard to make our events more special and a little out of the ordinary, so we are delighted to take this opportunity to get out of the Central Belt, but not just for the sake of it. We’re here to look at the opportunities for economic development, and how the retail sector can harness infrastructure improvements and changed perspectives.” Sandy Bell, Executive Member for Economic Development on Scottish Borders Council and a passionate ambassador for the region, was first to welcome study tour delegates to the “accessible and unspoilt” region. Councillor Bell pointed out that despite being the fourth largest local authority area in Scotland, the population of the Borders is only 114,000. In common with other

rural areas, individual earnings remain below national averages but they are rising, and the region enjoys a slightly higher than average level of employment. Consequently, the predominance of smaller towns and villages makes the Borders an area that relies heavily on its network of community-based convenience stores. Bell also made it clear that the fantastic success of the Borders Railway has brought a welcome boost to trade in the area. The immediate effect has been an influx of tourists, benefitting all local businesses – but the full effects of the new rail link clearly won’t be felt for some time to come. Retailers Richard Garrie and Angus Towers of Tweed Bank Stores in Galashiels also took to the floor to discuss the challenges of running convenience stores and forecourts in the region. A well-established business, the store has had to face many changes over the years www.slrmag.co.uk

28/09/2016 15:07:47

SGF Study Tour

but has survived and thrived by embedding itself as the heart of the local community. The railway may be bringing new money and new faces, but the area still has some stiff challenges, a fact recognised by all of the speakers on the day. Hawick Spar retailer Katheryn McCusker, for instance, provided an update on the latest development in her on-going battle with the discounters and openly admitted that she and her husband have had to accept a very significant fall in revenue over the last couple of years as the major multiples and discounters have descended on the region. On the whole, it was a day filled with positivity and optimism, an attitude personified by speaker Annika Meiklejohn, a Kiwi who’s made the Borders her home and who proved a very popular speaker, not least for inviting delegates to sample the wares of her Tempest Brewery. With her www.slrmag.co.uk

SGF Study Tour.indd 35

brewer husband, Anna recently relocated the business from Kelso to much bigger premises in Tweedbank to allow her to cope with the rocketing demand for her award-winning beers, including orders direct from retailers. Likewise, Phil Prentice, CEO of Scotland’s Towns Partnership, pointed out that there are high quality and niche producers throughout the region, working with dedicated retailers to help keep alive the commercial heart of Borders towns and villages. He said the emphasis has shifted to a ‘town centre first’ approach, and resources are available, such as an online toolkit, to foster economic development in town centres. He cited examples including Alloa, another community benefiting from a recent rail project, and Kilwinning, which has seen a successful transformation of the town centre with the cooperation and effort of local retailers. “Help is available in terms of events,

Inside Business

research, consultation, and funding ideas,” he said, and noted three supplements produced with The Herald newspaper, promoting town centre regeneration. With the presentations done and dusted, the delegation enjoyed lunch supplied by local food firm Born In The Borders, before heading off on a site visit to the impressive Co-op forecourt and c-store at Earlston. Rounding off the day, Pete Cheema reiterated that the new Borders Railway link provides great opportunities for economic development. “Just look at the way the economy of the Borders is changing,” he said. “The economic status of the Borders can work in favour of businesses seeking to establish and thrive in the region. The distinctive Borders sense of identity plays a significant role in the day to day choices made by shoppers, which retailers are well placed to exploit.” OCTOBER 2016 | SLR

28/09/2016 15:07:58

JET

Forecourts of the future

JET’s network of 50 independent Scottish forecourts is going from strength to strength. Spanning from Newton Stewart in the south to Thurso in the north, and from Kyle of Lochalsh in the west to Duns in the east, JET now supplies more fuel to Scottish independent dealers than any of its main competitors.* Here are just a few of the reasons why Scottish dealers are making JET their fuel supplier of choice.

* Source – Catalist latest release. Dealer site volume only, excluding sites owned by UK nationwide site operators – Certas Energy, Cooperative, Euro Garages, MOTO, Motor Fuels Group, MRH, Roadchef, and Waitrose

Security of supply Security of supply is a major concern for all independent dealers, but thanks to the backing of our parent company, Phillips 66, JET is Scotland’s only branded dealer supplier with its own UK refinery – offering security and flexibility. Last year alone, we supplied 1 billion litres of fuel to our independent dealers, other oil companies, hypermarkets, major resellers, and commercial and marine customers.

A forward-thinking food-to-go solution Food-to-go is a vital component of today’s modern forecourt. To help dealers capitalise on this trend and drive forecourt footfall, JET has teamed up with eXpresso PLUS to introduce ‘Snack on the Go’, an exclusive coffee and food-to-go concept. eXpresso PLUS’ partners include well-known consumer brands such as Lavazza, PG Tips, Nescafé and Country Choice.

As well as a Lavazza coffee machine, dealers can choose to add display areas for hot food, sweet treats and chilled items. The units are flexible, enabling dealers to adapt them to suit their location and customer demographic both now and in the future.

An award-winning standards and service programme At JET we aspire to have the best independent forecourts in the country. Our ‘Proud to be Jet’ standards and service programme rewards dealers who deliver high standards and offer excellent customer facilities. Forecourts are assessed, benchmarked and measured based on annual compliance audits and other brand-related criteria. JET dealers work towards obtaining ‘Diamonds’, which can be spent on a range of items to further improve their forecourts for the future, such as LED under-canopy lighting, a full car wash valet or annual electrical testing.

Big brand and alliances Our partnership nership with SPA SPAR P R UK gives JET PA dealers the opportunity to transform their sites into convenience destinations which maximise on both fuel and food sales. Our alliance with Amazon Lockers is also attracting customers onto JET forecourts as the popularity of parcel collection services continues to rise.

JET is 100% committed to the future of fuel retailing in Scotland and the continued expansion of our dealer network. Get in touch to find out why more and more independent Scottish dealers are making JET their fuel supplier of choice.

T 01926 404 333 E connect2jet@p66.com JourneywithJET @JETPetrol

WOODLANDSlocal

Inside Business

Woodlands Local | Monthly Update

LICENSED TO THRILL!

Woodlands Local at last received approval for its amended licence application just as SLR was going to press, allowing us to finally complete the refit of the store. Let the new era begin! BY ANTONY BEGLEY

SLR | OCTOBER 2016

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t’s been a long, long time coming but just as SLR was going to press this month we received formal notification from our licensing lawyers TLT that our application for a minor amendment to our licence had finally been granted. Despite the fact that we were actually making the licensed section a little smaller and we were moving it to the back of the store, the ‘formality’ that was supposed to take just a week or so actually ended up taking over a month. We had been advised by fellow retailers that it is possible to actually make the in-store changes as soon as the application is lodged because, technically, the local licensed board cannot refuse a properly submitted minor application, but TLT advise us to stay squeaky clean by waiting until the approval was granted before we began the in-store work. With Falkirk Licensing Board a notoriously prickly bunch, we even had a visit from our LSO to get his tape measure www.slrmag.co.uk

28/09/2016 21:20:47

Monthly Update | Woodlands Local

out and go through our application with a fine tooth comb before approval was granted, but the main thing is that it was indeed granted and we are now good to go.

Inside Business

It’s been a lot of work rearranging the shelves after the refit and preparing for the relicensing but now Woodlands is taking shape and making more sense to shoppers.

IN-STORE WORK Unfortunately, due to the timing of the approval, we only had a few hours in the store before these pages had to be submitted for the magazine as it was press day, so all we are able to bring you this month are some photos of empty shelves and the typical chaos that you find during a major rework of a store. It’s been a frustrating month because we carried out the bulk of the work rearranging the store around a month ago, expecting the licence to be granted within a week or so. What that meant is that our missionshopping based approach to store layout created little more than a lot of confusion for our customers. Our dedicated ‘breakfast’, ‘lunch’ and ‘meal for tonight’ zones made no sense to our customers for the last month because, for instance, the pastas and sauces and rice and accompaniments that were meant to sit across from the fresh meat and vegetables were actually facing the beer and cider fixture for a month! Similarly, the ‘big night in’ zone with 2l bottles of soft drinks and sharing packs of confectionery and crisps & snacks sat facing the dairy cabinet for a month, instead of facing the multipack beers and the wines and ciders. But with the store now on the way to being laid out the way we want it to be, shopping should start making more sense to customers. We will also introduce new mission shopping zone signage which should also help make it nice and easy for our customers to navigate their way around the store.

CHILL AND FREEZE More good news came in the form of the arrival of our second freezer from Capital Cooling. This single door unit will house the ice creams and frozen desserts and will sit alongside the double door unit that will now hold all of our savoury lines. The extra frozen space lets us add a bigger range of staples like burgers, chips and frozen veg and pizzas and www.slrmag.co.uk

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Cool hand. Look inside the chiller cabinets with the new unit freezing out space for a wider range. OCTOBER 2016 | SLR

28/09/2016 21:20:49

WOODLANDSlocal

Inside Business

Woodlands Local | Monthly Update

Days of wine. The Rosé now sits chilled while the reds are all here in their own ambient section. Plenty of room too for soft and energy drinks, kept down in temperature to heat up sales.

SLR | OCTOBER 2016

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so on, while the new freezer lets us stock a full range of ice creams and desserts for the first time. The main point of reworking the macro space layout, of course, was to bring our fresh and chilled section to the front of the store. We’ve seen growth of over 14% in sales from this category in the last year, despite the fact it was at the back of the store and didn’t benefit from very high traffic so we’re hopeful that putting it right at the front will drive up sales of chilled and dairy lines as well as fresh fruit and veg. The milk section has also been moved forward to sit next to it and this is guaranteed to bring lots of customers to that part of the store.

BWS While we’ve moved the alcohol to the back of the store and made the area very slightly smaller, we will benefit from the fact that we can now chill all of our white wines, rose wines, beers, ciders and RTDs. We also have enough space to grow our range of larger format packs and will be stocking an extended range of 10, 12 and 15 pack beers and ciders. With a dedicated ambient red wine bay for the first time we are also planning to introduce a bigger range of reds, ranging from top shelf treats at £10 and above, down to mid-range popular wines at eye level and a range of value and promoted wines nearer the bottom of the fixture.

BREAD AND BAKERY Another consequence of the moves is a bigger space for our bread and bakery section and, for the first time, all of our lines will be on the same fixture. We sell a huge amount of morning rolls in the shop and having these on the same fixture as the bread and cakes will hopefully drive traffic and sales. As part of this move, we’ve added an extensive range of big brand packaged ambient cakes onto that fixture and many of the new lines are already selling well. Woodlands has been a work in progress lately, but we’re seeing a real difference now. The fruits of all that labour, and the patience during the relicensing process, are set to pay off in the coming months. www.slrmag.co.uk

28/09/2016 21:20:51

Woodlands Picks | Woodlands Local

Inside Business

WOOOODLANDS PICKS SLR’s own store trials the latest products at the moment to give local retailers an indication of how the biggest product launches can be marketed in store. With Halloween creeping around the corner, here is Woodlands’ pick of the best terrifyingly tasty treats to have on the shelf in the run up to the event so shoppers can eat, drink and be scary.

What? McVitie’s Spooktacular cake range Why? McVitie’s have gone all out this season with the return of ‘Fangtastic Orange’ and ‘Batty Blackcurrant’ Jaffa Cake Bars, new Toffee Apple Flapjacks, and retitling their Petrifying Penguin bars and Devilish Digestive Teacakes. Marketing support: The full range features nightmarish new Halloween packaging, designed to ensure the paranormal products stand out on shelf. RRP: £1 for all Cake Bars (5pk), £2 for Teacakes (16pk) Woodlands thought: These well-known brands always do well and the best of the biscuitrelated special edition SKUs on offer this year.

What? Mini Babybel Halloween characters Why? The monster themed mini cheeses add interest and variety to the lunchbox, and are ideal for handing out to trick-or-treaters or serving at Halloween parties. Marketing support: The recognisable nets are full of hair-raising Halloween characters including a pumpkin, a devious devil and a freaky Frankenstein, all sure to scare shoppers into purchasing. RRP: Net of 6 at £1.85, net of 12 at £3.15, net of 9 variety pack at £2.45 Woodlands thought: Great product, popular with customers in store, that proves cheese can get in on the trick or treat action too.

What? Skittles Darkside & Starburst Trick or Treat Why? Skittles Darkside is back for a second year in a haunted hanging pouch and Starburst makes a screaming return with its Trick or Treat tear-and-scare pouch, both ideal to serve at parties. Marketing support: Wrigley is supporting the launch with Halloween themed POS including creepy cardboard units and chilling clipstrips. £1 for Starburst sharing bags and £1.28 for Skittles pouches Woodlands thought: A firm favourite with our customers, each year we have sold a lot of these special editions, so had to be included in the picks.

What? Halloween Swizzels Why? Swizzels individually wrapped is the number one variety product according to Nielsen data, making its Halloween range the ideal choice for giving out to ghoulish guisers. Marketing support: Swizzels are offering a creepy collection of Halloween themed packs covered with cobwebs, haunted villages and monsters sure to appeal to even the scariest of little monsters. RRP: £1 for the Loadsa range, Drumstick Squashies, and Trick or Sweet bags, £3 Trick or Treat Lolly Mix, £4 Monster Treats Bag Woodlands thought: A must stock for your party packs or trick or treat goody bags – great quality products that will keep the kids, and adults, happy.

What? Spooktacular Fanta and Sprite Zero Why? Sprite Zero joins the return of the Halloween themed packs following a successful activation in Fanta lines in 2015, which saw Halloween become, according to findings from Nielsen, the second highest selling seasonal event for soft drinks. Marketing support: The brand is supported with themed in-store visuals, petrifying point-of-sale material and an otherworldly outdoor advertising campaign. RRP: 2L bottle £2.05, 6pk cans £3.55 Woodlands thought: With all the sugary treats, these drinks give customers a chance to refresh their thirst without the worry of sugar overload.

What? Chupa Chups Halloween bag and Fruitella Spooky Family Why? Both are packed with a tasty variety of individually wrapped confectionery, perfect for parties and goodie bags. Marketing support: With an eye-catching, spookily decorated orange and purple packets, featuring a monstrous mummys and ghastly ghosts, the variety pack is guaranteed to stand out on shelf. RRP: £1 Woodlands thought: Iconic brands offering great value, both are big sellers and ideal for parties and for giving out to costume-clad kids knocking at the door.

www.slrmag.co.uk

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28/09/2016 21:20:55

Hotlines

Product News & Media Watch

McVities Bonfire Bakes United Biscuits McVitie’s has launched a new limited edition range of its popular Sticky Pudding Cakes for Bonfire Night, available now to all channels, carrying an rrp of £1, in original Sticky Toffee and Toffee Apple flavours. The range features seasonal packaging bursting with firework designs, and Bonfire Night labelling designed to ensure the products stand out on shelf.

Warburtons bulks up its range Warburtons is capitalising on the protein-trend by expanding its portfolio of wrapped bakery products to include a new Protein range of baked goods. Baked with a blend of pulses and grains, each product contains over 7g of protein (per serving) without – says Warburtons – compromising on taste. The full range carries an rrp of £1.20, and is made up of: Protein Wholemeal 400g loaf, Protein Wholemeal Rolls (4 pack), Protein Wholemeal Thins (4 pack), and Protein Wholemeal Soft Wraps (4 pack).

Darren Littler, Innovation Director for Warburtons, said: “It became clear to us that there was a real demand for a protein-packed option that tastes just like normal Bakery, and our new Protein range makes it easy and convenient for people to enjoy more as part of their daily routine.” Warburtons’ Protein range was launched across the convenience channel at the end of September. The new line is supported by an integrated communications campaign, with a focus on PR and digital.

Carabao energy drink Carabao Tawadang Co Ltd. South-East Asian drinks brand, Carabao, is set to break into the UK’s Energy Drinks category with the launch of its 325ml sleek-canned energy drink in 2016. Carabao is currently available in two variants, Original and Sugar Free, with further flavour launches planned for later in 2016. Both variations carry an rrp of £1.19.

Dipping Crackers Stag Bakeries West Coast has added dipping crackers to its portfolio in three varieties: Lentil & Biriyani, Green Bean & Ras El Hanout and Chickpea with Garlic. All flavours come in 80g resealable bags and carry an rrp of £2.30.

SLR | OCTOBER 2016

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Drench Sparkling Britvic Soft Drinks Drench has announced a new range to refresh the adult soft drinks category with Drench Sparkling. The carbonated flavour combinations, Raspberry & Cranberry and Grape & Elderflower, will be available as a wholesale exclusive at an introductory case price of £5.99, with national roll out this month at an rrp of 79p per can.

Freddo Drinking Chocolate Mondeléz International Cadbury has introduced Freddo drinking chocolate as its latest addition to its hot beverage range. The brew was tested with a Mumsnet consumer panel and nearly 80% said they would purchase it for their families and would recommend it to a friend. The 179g jars carry an rrp of £1.49.

Ginsters relaunch Samworth Brothers Sandwich makers Ginsters has relaunched its range with new pack designs featuring a larger pack window to showcase the quality and freshness of the product inside. The relaunch also adds new flavours New York Deli and Chicken Fajita, as well as two limited edition flavours: Brie, Bacon & Apricot Chutney and Ham Hock & Spiced Chutney. All have an rrp of £2.99.

www.slrmag.co.uk

28/09/2016 17:36:32

Product News & Media Watch Knorr Naturally Tasty! Unilever UK

Nakd Posh Bits Natural Balance Foods

Stocks brand Knorr has expanded into the easy cooking market for the first time with the launch of Naturally Tasty!, a line of new dry recipe mixes. Available now in all channels, the premium recipe mixes carry an rrp of 89p per unit. The launch will be supported with a £3.4m media investment which includes a TV advert set to air this month.

Consumers looking for luxurious, guilt-free snacks are in luck with the launch of Nakd Posh Bits from New Balance Foods. The treats are made entirely from fruit and nuts and count as one of your five a day, available in Cocoa Raspberry, Cocoa Sea Salt and Cocoa Mandarin flavours, replacing and updating the brand’s Nakd Bits range.

MEDIAwatch

Hotlines



Feel the URjj Müller is bringing back Frijj to TV screens following a three-year hiatus, as part of ambitious plans to achieve double digit growth over the next 12 months. The brand has unveiled a new TV advertising and social media campaign for its Frijj brand to excite consumers with the promise that #TheURjj is coming.

Family fun fuels Toffifee campaign Vimto No Added Sugar Nichols plc

Oreo Peanut Butter Mondeléz International

Vimto is giving its No Added Sugar portfolio a push, with a nationwide trade marketing initiative that includes POS, in-depot displays, coupons at till point and online advertising. Vimto Original No Added Sugar lines and Vimto Remix are available in squash, still, and carbonate £1 PMP and plain pack formats.

Biscuiteer Oreo has introduced new promotional 79p PMPs for Oreo Peanut Butter and Oreo Golden Crunch. The flavours launched in the UK at the beginning of August and the value guarantee of the new price-marked packs will drive consumer awareness of the products in store. Both variants placed in the top 10 (of a possible 35) in a recent Timeout survey to discover consumers’ favourite Oreo flavour.

Toffifee is returning to TV screens this Autumn with a new creative as part of its £5m marketing campaign. The new advert will drive consumer awareness of the great tasting family treat, in turn driving boxed chocolate confectionery sales in the lead up to Christmas. It will be aided by a UK-wide sampling campaign which will take place in November.

The cats are out of the bag The McVitie’s Kitties are back in a new 30 second ad which puts viewers in the midst of a girls’ night in where four friends are relaxing on the sofa, watching TV together. One of them reaches for a pack of the brands biggest new product, McVitie’s Digestive Nibbles, unleashing a troupe of British Blue kittens to ‘Grease is the Word’.

Colman’s packs a punch Popchips Ridged Popchips Inc.

Feel Good relaunch Nichols plc

Popchips brought variety to healthier snacking with its launch of a new ridged variant at the end of last month. Available in 85g share bags (rrp £1.99) and 23g single serves (rrp 69p), the new ridged crisps come in Crazy Hot, Smoky Bacon, Sea Salt & Vinegar and Mature Cheddar & Onion flavours.

Natural soft drinks brand, Feel Good, has overhauled its brand identity and range of products, including repackaging and new flavours. Key drivers of the relaunch are ‘Refreshingly Still’ and ‘A Bit Bubbly’ lines, available in 275ml singles with flavours including Orange, Mango & Water and Apple, Elderflower & Water and carrying a £1.99 rrp.

The Unilever-owned mustard brand is launching a new TV and print campaign to tie in with a new brand repositioning. The ‘Easy Does It’ tag-line initiates the start of a new era for the brand, which is re-centring the focus on its core product to highlight the distinct heat of Colman’s mustard.

A super start to your day Quaker Oats has launched a new TV campaign to support the introduction of its Super Goodness fruits and grains range. Running for five weeks, the advert highlights the nutritional benefits of the new Super Fruits sub-range. The 20 second ad closes with the tagline ‘Support your immune system with Quaker’s new Super Goodness Range’.

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

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28/09/2016 17:36:36

PMP

Feature

MAKING THEIR MARK Now considered an absolute must for retailers across almost every category, the PMP phenomenon shows no sign of stopping. PMPs attract shoppers and provide an improved rate of sale and price perception. BY ÉMER O’TOOLE

36%

of shoppers say PMPs are highly influential to their purchases.

WHAT ARE THE MAIN ADVANTAGES FOR A RETAILER TO STOCK PMPS? Q They are key to driving sales. Q They sell faster than standard packs. Q They save time on having to price products. Q They improve their price image and act as a signpost that they want to compete on price.

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www.slrmag.co.uk

28/09/2016 15:14:10

se Bes lle t rs

Take advantage of our widest * ever range of over 50 PMPs

Stock the range Improved perceived value, speed of sales, convenience and customer trust ** make stocking PMPs a great option, and 63 per cent of retailers say they intend to stock more PMPs in the next year.**

For great category advice and a printable PMP shopping list visit www.deliciousdisplay.co.uk *AVAILABLE IN NON PMP. RETAILERS FREE TO SET THEIR OWN PRICES

Him! Bitesize Insight; Price-marked packs, August 2015

PMP

Feature

“The main reasons for shoppers liking price-marked packs are that the pricing is clear and transparent, they feel like a special offer, they provide better value for money and they help them stick to a budget.” ADRIAN TROY, HEAD OF MARKETING AT AG BARR

76%

of retailers said they are more likely to stock a new product if it is pricemarked.

ince the recession, shoppers have become increasingly conscious of assessing prices and promotions when choosing their groceries. PMPs allow convenience retailers to maximize on impulse sales. This is especially true when they appear on wellknown reputable brands that instill consumer confidence. Shoppers are finding it difficult to weigh up the relative value of the options available at the fixture, which is serving to exaggerate PMP shopping behavior. Shoppers are increasingly asking retailers to make pricing and promotional information clearer and more transparent. PMPs are seen as key

to helping shoppers find value due to its transparency, which in turn allows them to stick to their budgets. PMPs are a growing trend and consumers are increasingly looking out for them in convenience stores. Having a range of PMPs available in your store establishes a sense of confidence and trust between you and your shopper, and creates a perception of value. According to him! research, 53% of consumers are more likely to try a new product if it’s sold in a PMP. That research also reveals one third of shoppers say that knowing a c-store sells PMPs positively influences their decision to visit that particular store. PMP spirits have more than tripled in value

BISCUITS Price-marked biscuits in the convenience and impulse channels are worth £37m, according to Nielsen data, with value sales up 12% year-on-year and now accounting for a third of all year round biscuit sales in the sector, their highest ever share. In recent years, Burton’s has doubled its sales of PMPs across market-leading brands such as Maryland, Jammie Dodgers and Wagon Wheels. “As one of the first FMCG companies to introduce price-marked packs, we know how important they are to shopkeepers keen to offer their customers Britain’s best-loved brands at competitive prices” says David Costello, Head of Category & Shopper Management at Burton’s Biscuit Company. “That’s why our price-marked packs are available at accessible price points that will help to attract new customers and encourage purchase from brand loyalists and impulse shoppers.”

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www.slrmag.co.uk

28/09/2016 15:14:11

PMP

Feature

20%

of spirits shoppers are making impulse purchases in convenience stores.

86%

of shoppers trust PMPs over on-shelf pricing.

in the past year, and Diageo’s 70cl PMP SKUs have performed on average 31% ahead of the standard SKUs. Gordon’s and Captain Morgan Spiced PMPs both saw great success when they launched in 2014, and now consumerfavourite Johnnie Walker Red Label is joining the Diageo PMP range in 70cl and 35cl. With pricemarked packs being used more frequently as manufacturers across all categories realise their importance, there is a need to continually innovate to maintain impact and continue to deliver great value to shoppers. AG Barr has done so with its next generation of price-marked packs, incorporating an additional multibuy element. This benefits retailers as it encourages additional purchase while still delivering profit and consumers feel like they are getting even better value. This was trialled on Rubicon one litre cartons which were offered with a £1.29/two for £2 flash on pack. All of AG Barr’s popular brands, including Irn-Bru, KA, Rubicon, Barr and Rockstar, are available in great-value price marked packs in all pack sizes (from impulse packs 330ml cans, 500ml PET to take-home packs, one litre cartons and two litre PET) throughout the year. However, not all categories benefit equally

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from PMP treatment. Shoppers are most receptive to pricemarked products such as biscuits, snacks and soft drinks, but premium products like wine and spirits are less likely to be bought by shoppers if they have a PMP. Ruth Cousins from him! says some shoppers feel PMPs cheapen the image of certain products, and this opinion is likely to be more relevant for items shoppers may buy as gifts. The profit margin from PMPs may not be as high as one would hope, but the shopper demand is there so it is an area worth exploring. In the alcohol sector, Nielsen data reveals that PMPs sell three times the volume of standard bottles — PMP sales per point of distribution is on average three times greater than standard bottles — so ensure they are highly visible at all times. Shoppers are more likely to trust PMPs, according to him! so capitalise on this by stocking a full range that is clearly visible to the consumer. Additionally, it is worth providing a wide range of PMPs in your store to create a perception of value and, by extension, trust between you and your customers. Maximise spirits purchase in your store by stocking the right range, in an ‘easy to shop’ layout, and offering price marked packs to reassure shoppers they are

DIAGEO’S TOP TIPS TO SELL PMPS Follow these simple steps to capitalise on PMP sales: Q Stock a wide range of PMP spirits and consider the mission your shoppers are on – ‘something for tonight.’ Q Include a variety of fractional spirits (50cl, 35cl, 20cl). Q Stock PMP premix in the chiller.

www.slrmag.co.uk

28/09/2016 15:14:12

PMP

Feature

IMPERIAL LAUNCHES NEW ‘PARTNERING FOR SUCCESS’ INITIATIVE VIDEO TO SUPPORT PRICE MARKED PACKS As part of its Partnering for Success initiative, Imperial Tobacco has released a new video offering guidance to the independent trade around the EUTPD II and standardised packaging legislation. The video explains how important PMPs have become in reassuring c-store shoppers that they’re buying a great value product. Due to the recently implemented EUTPD II and standardised packaging legislation, PMPs have gradually started to disappear from the tobacco market since 20 May 2016 — and can no longer be sold from 20 May 2017. This potentially means the significance of competitive pricing has never been greater, with defined pricing strategies helping independent retailers ensure the loyalty of their tobacco shoppers while also protecting in-store footfall and basket spend. Retailers are able to view the video on www.imperial-trade.co.uk, and via its retailer reward programme www.imperial-ignite.co.uk. Sophie Hogg, Head of Sales and Marketing at Imperial Tobacco UK&I, says: “PMPs have traditionally been a way of reassuring shoppers that they’re buying a product that represents great value, with almost three-quarters of independent retailers currently choosing to stock them. “The gradual loss of PMPs from the market as we head towards 20 May 2017 suggests that, moving forwards, retailers will need to reassure their customers that they are not being overcharged for tobacco. Communicating that you sell tobacco products at the recommended retail price or below, for instance, will not only maintain shopper confidence and loyalty, but also protect in-store footfall and basket spend. “As part of our Partnering for Success initiative we have produced this new video to supplement our START packs and provide retailers with further advice and support around the importance of competitive pricing.”

57%

of UK customers say they like PMPs.

50% of customers believe that PMPs are on promotion.

PMP.indd 50

getting a fair value. Site all category brands together, e.g. all Vodka brands together. This helps shoppers absorb and filter what a store has to offer quickly and easily. Ideally, faster selling categories and products should be at eye level. Place top sellers in the centre of the category as they act as ‘anchor’ brands to help shoppers identify a category. Visible pricing is a key factor in the decision to purchase. The convenience channel now accounts for the largest single share of the UK’s £150 million micro-snacking market, according to Kepak. Price marked packs are set to be given more prominence in-store as 50% of retailers say they intend to stock more price-marked packs in the next 12 months and three quarters of them are more likely to stock a new product if it’s price-marked, compared to 63% in 2013 – another key indicator on the need for the cash and carry and wholesale trade not to overlook their importance to retailers. Kepak’s Rustlers Super 6 range has accelerated demand for its price-marked products, by offering Rustlers top-selling SKUs all pricemarked at £1.99. The introduction of pricemarking across the range strengthens the offer, providing price-conscious consumers with the reassurance they’re looking for. “The price sensitivity shown by shoppers is not set

SLR | OCTOBER 2016

to change and the cash and carry trade will continue to benefit by offering price-marked packs. Those products like Rustlers that are backed by sustained, heavyweight marketing support will have even stronger appeal,” says Angela Daulby, Channel Director of Kepak.

“Today’s price-sensitive shoppers are reassured when they see marketleading brands in pricemarked packs.” ANGELA DAULBY, CHANNEL DIRECTOR OF KEPAK CONVENIENCE FOODS

www.slrmag.co.uk

28/09/2016 15:14:13

The UK’s No.1 biscuit brand now in everyday favourites * Nielsen 52 w/e 18/06/16. 18/06/16 Subject to VAT at standard rate.

Available in 89p PMPs, providing great value and high quality for shoppers. A huge opportunity for retailers to cash in on bigger sales with the UK’s No.1 biscuit brand. Adam Hogwood, Budgens Broadstairs says:

“These are great value packs and all my shoppers know McVitie’s for good quality.”

Stock up now!

betterbiscuits@pladisglobal.com | 020 8324 5010

Hot Drinks

Feature

HOT SALES

Hot drinks has been a star category in retail in the last couple of years with high end bean-to-cup coffee machines and Costa solutions cropping up in more and more convenience stores. There are many options available to retailers, each with their own merits. BY ÉMER O’TOOLE

£32m

is the sales value of the malted drinks category.

ot chocolate is particularly popular within the hot drinks category. Best displayed near tea and coffee, retailers should stock a cross section of products from the core hot chocolate segments for most impact – instant hot chocolate (to include standard and low calorie), added milk, malted and cocoa. Retailers should merchandise a range of Galaxy and Maltesers products together, to make the most of these strong, recognised brands. “Combining strong brands, exciting, innovative products and offering flexibility for both retailers and consumers has seen our range continue to grow”, says Michelle Frost, general manager for Mars Chocolate Drinks & Treats. “The complete range now includes options for those seeking a low calorie, malted, or indulgent hot chocolate.”

SLR | OCTOBER 2016

Hot Drinks.indd 52

Instant hot chocolate continues to perform well, with annual sales of more than £49 million, according to Neilsen total market data. Galaxy Instant Hot Chocolate is an established category bestseller with value sales of £4.5 million. The Instant Low Calorie hot chocolate category is growing and is currently worth £22 million, accounting for some 25% of the total hot chocolate category and 26% of the instant hot chocolate sector. Galaxy Lightstyle contains just 40 calories per

“Shopper tastes for tea have changed so it’s a good time for retailers to explore how to capitalise on the current trends in tea and respond to the changes in shopping missions.” PETER DRIES, DIRECTOR OF CUSTOMER AND SHOPPER MARKETING FOR TETLEY

www.slrmag.co.uk

28/09/2016 21:24:35

Hot Drinks

Feature

£86m

is the sales value of the hot chocolate category.

serving (rrp £2.99). The Maltesers Malted Chocolate brand continues to drive strong category growth within malted drinks, and outperforms the market at +17.5%. Within Malted, instant malted white drinks now account for annual sales of £11.8 million. For consumers looking for a more indulgent hot chocolate, Galaxy Ultimate Marshmallow Hot Chocolate including real marshmallows, and Galaxy Ultimate White Hot Chocolate with white chocolate pieces bring even more choice and innovation to the category. Both are available in 300g jars. Although value and volume sales of tea overall in convenience have fallen (down 4.5% in volume according to Tetley), there are some strong areas of growth particularly across the smaller higher value niche sectors like decaf, fruit, herbal and greens. “These sales trends match what we have seen in our shopper research which shows that recognised brands and products that tick the health box are top priorities for convenience shoppers”, says Peter Dries, Director of Customer and Shopper Marketing for Tetley. “It also shows that convenience shoppers are less sensitive to price, which is reassuring for stores exploring opportunities for higher value tea items.” With more shoppers moving away from the big shop to more regular top up shopping, convenience stores have a real opportunity to up their tea sales where everyday teas continue to dominate. Careful selection of price marked packs here enable convenience stores to compete effectively against the

TETLEY’S TOP TEA SELLING TIPS 1. Stock big brands. 2. Get the right mix of teas. 3. Keep pace with the health trends in tea. 4. Stock the right pack sizes for your market and know how to use price marks and extra free packs. 5. Develop initiatives to create excitement around tea and drive sales.

85%

of tea sales within convenience come from the most established tea brands.

GREEN TEA Green teas are becoming an increasingly popular choice. Volume sales of green teas have grown 7.2% in convenience with value sales up 17.4%, according to Tetley research. Tetley Green Pure and Tetley Green Lemon in particular have attracted new shoppers to the green tea sector and are an ideal choice for convenience stores. These packs are available in £1 price-marked packs and packed in shelf ready trays of six. Tetley’s new range of Super Green Teas are the first functional green teas in the UK with proven health benefits. There are four SKUs in the range carrying European Food Standards Agency (EFSA) approved health claims relating to supporting the immune system and helping reduce tiredness and fatigue. Tetley Super Green Tea Immune contains Vitamin C and comes in two flavours; Tropical or Lemon and Honey. Tetley Super Green Tea Boost has added vitamin B6 and comes in Berry Burst and Lime flavours.

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Hot Drinks

multiples, offering great value to shoppers and strong volume sales. For increased value sales, stores should consider teas from the smaller niche areas in tea which are increasing in popularity and deliver higher margin sales. Health continues to be a key driver for shopper activity. Research for Tetley by Evolution shows that 78% of shoppers now regularly buy healthy food. When asked which food categories they saw as healthy, tea was second to fruit and vegetables (62% to 92%), and one position higher than muesli in third place (58%). Convenience shoppers like to have a variety of teas at home; so it’s essential to stock a good selection. Space on shelf should reflect the preference for everyday black teas, but it makes sense to include the growth areas in tea, healthy teas like decaf, green and fruit and herbal. Expanding the range of teas you stock doesn’t necessarily mean dedicating increased shelf space to tea, it’s about making the right selection, deciding on the categories of tea you want to include and selecting the best sellers to attract shoppers and deliver higher value sales. The run up to winter is the ideal time to capitalise on tea sales so make sure you dual site products and make effective use of cross category merchandising to drive sales.

65% of the hot drinks category is hot chocolate.

£133m is the annual sales value of the UK hot chocolate and malted drinks market.

Feature

ON A MISSION:

CONTROL

Hot Beverages on the Go Chewing sugarfree

29%

of chewing occasions happen directly after drinking hot drinks*

gum helps keep teeth

clean and healthy after drinking on the go**

95% of Wrigley’s gum portfolio is sugarfree

Tom Lynch, Senior Category Manager, Wrigley, says:

“

Take advantage of this growing shopper mission, by placing a small gum display beside your coffee machine to encourage additional impulse purchases. Up-weight basket spend by offering a cross-category promotion with coffee and gum, and make sure gum is visible to all shoppers by having the best sellers displayed at till point.

Work with your Wrigley representative to help maximise your gum sales, or visit www.wrigley.com/uk

”

* Ipsos Reasons to Chew 2014 **Extra sugarfree gum is beneficial for dental health as it helps to neutralise plaque acids

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Hot Drinks.indd 55

OCTOBER 2016 | SLR

5429_F_Wrigley - Mission Control Advert - SLR_Hot beverages_Half page vertical ad_93x269.indd 114/09/2016 13:54 28/09/2016 21:24:41

*Source: Nielsen Scantrack Convenience Data w/e 13th August 2016

LIFT YOUR CHRISTMAS SPIRITS SALES

Whisky, Cognac and American Whiskey are three categories which over perform in sales at Christmas. Make sure your Christmas list includes The Famous Grouse, the UKâ&#x20AC;&#x2122;s No.1 Blended Whisky, Courvoisier, the No.1 Cognac and Jim Beam, the No.1 Bourbon. Stock up now as 1/4 of annual spirits sales take place in the last 12 weeks of the year with an increase of 56% in the week leading up to Christmas. Make sure you also stock 1/2 bottles, now available in smaller 4-pack cases. Specifically created for the convenience sector they are perfect for allowing customers to purchase premium spirits at a lower price.

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Christmas

Feature

The most

wonderful sales of the year Once the highlight of the annual sales calendar, Christmas has become an increasingly frustrating and tough period for local retailers in Scotland as the major multiples and discounters bring new levels of deals to attract shoppers.

£706m

is the value of the Christmas market in the UK.

BY ÉMER O’TOOLE

here remains plenty that local retailers can do to capitalise on the festive shopping frenzy, and the key is in highlighting the categories and opportunities that are most likely to deliver sales and profits over the period. SLR considers all things festive and asks major suppliers and retailers alike what the answer will be this year to unlocking a Christmas bonanza. As the second biggest occasion in total chocolate, Christmas is a huge gifting occasion for adults, while sharing packs play a big role in households as friends

www.slrmag.co.uk

Xmas.indd 57

and families come together during the festive season. The new Cadbury Dairy Milk Santa Gift Box contains bitesize chocolate pieces (rrp £2.99). Maynards Bassets Wine Gums Merry Mix comes in a jar format (rrp £5.99). Another brand new gifting option this festive season is the Drumstick Gift Box, which is filled with classic Drumstick variants including Drumstick Squashies, Drumstick Bon Bons, and Drumstick Lollies. Burton’s is introducing a host of new festive arrivals for 2016, including Cadbury Mini Fingers Stackables – a selection of three ‘stacking tins’ each containing a

OCTOBER 2016 | SLR

28/09/2016 15:14:43

Christmas

Feature

“Retailers make more than half of their sales and profit in the three months before Christmas.” ADRIAN TROY, HEAD OF MARKETING AT AG BARR.

different flavour of Mini Fingers – featuring milk, and two new flavours: Honeycomb and Double Chocolate (rrp £5); a Cadbury Fingers Milk and White Chocolate Assortment tin (rrp £3); and the Cadbury Biscuit Assortment Tin (rrp £5) which has been reinvented to include a modernised front of pack design and shape; newly developed white and dark chocolate biscuits in addition to milk favourites; and the introduction of a Crunchie biscuit. Christmas continues to be a key sales period for sweet confectionery so getting your offering right is essential at this time of year. The total confectionery market has grown over £6 million in the last two years, according to IRI market research, and this trend is likely to continue this year. The Swizzels Sweet Shop Favorites tin continues to be hugely popular over the festive season. The classically branded sweet tin is packed with Swizzels’ most popular brands including Squashies, Love Hearts, and Parma Violets. Emma Herring, NPD Brand Manager at Swizzels, says: “Our range lends itself well to all sharing occasions due to the huge variety of much-loved sweets – there really is something for everyone. The products have fun bright designs that stand out on shelf and appeal to customers. Our range offers value for money and great variety which is something all customers are looking for at

60%

of shoppers finished their Christmas food and drink shopping between 21 and 24 of December in 2015.

SLR | OCTOBER 2016

Xmas.indd 58

SOFT DRINKS Soft drinks are key to profit opportunities, as consumers look to stock up on their favourite brands including Irn-Bru and the Barr range. Carbonates and fruit drinks see the biggest uplifts and large pack formats and multipacks are in particularly high demand as shoppers prepare for family gatherings and parties. AG Barr’s popular Barr range will be ‘fizzing with festive flavour’ this Christmas. “The Barr range is a huge hit during the festive period as shoppers look to purchase brands they love and trust for their family and friends,” explains Adrian Troy, Head of Marketing at AG Barr. AG Barr research reveals that Lemonade and Cola are particular must-stocks at this time of year: lemonade’s share of all soft drinks sales increases by more than two thirds at Christmas, and in the two weeks before Christmas there’s an uplift of 60% on cola large PET and 30% on cola multipack cans.

www.slrmag.co.uk

28/09/2016 15:14:46

Christmas

Feature

£71.33

is the average consumers spent on their big Christmas shop last year.

this time of year. The range also works well as a gift or stocking filler for sweet lovers.” Household favourites such as KP Nuts’ best-selling caddies and Frosted Nut Mixes will encourage shoppers to trade-up during the festive season, and drive basket spend amongst those looking for quality snack products to share with friends and family. Matt Collins, Trading Director at KP Snacks says: “Christmas is a key opportunity for retailers to maximise sales within the category as shoppers are less likely to compromise on either quality or flavour during this time.” As well as the extensive nuts range, further KP Snacks favourites will be back this year including: Pom-Bear Snowmen, Hula Hoops Stars, KP Cheese Footballs and Chio Maxi Mix. Each is available in formats perfect for sharing. Pom-Bear and Hula Hoops’ iconic shapes have undergone their annual makeover to take on festive shapes and add an element of fun for the whole family. KP Snacks is also supporting retailers by providing convenient formats that don’t take up too much shelf space, plus branded POS materials such as festive shippers, to generate excitement and boost impulse sales. Caddies, for example, are a great addition to any retailers’ Christmas range as they tempt shoppers to pay a premium for a quality snacking product. They come in a stackable format that ensures they are convenient for

MCVITIE’S MAKES CHRISTMAS SWEEET McVitie’s has unveiled its Christmas cake range, which sees the debut of a selection of NPD, along with the return of several festival favourites. New Digestives Coconut Teacakes (rrp £1) join the line up while a combination of classic Christmas flavours of apple and cinnamon help give McVitie’s Hobnobs Flapjack Slices a merry makeover. McVitie’s Cake Bars have also received a festive update. New Galaxy Salted Caramel Cake Bars come in packs of five at an rrp of £1. Additionally, the new Celebrations Festive Christmas Cracker contains twelve individually wrapped cake bars and flapjacks.

NEW ADDITIONS FROM CADBURY BISCUIT RANGE A new look Cadbury Christmas Biscuits range has been launched this year, which includes NPD for Cadbury Fingers. Available now, the line-up, which features products catering for all festive occasions including the popular gifting tins, sharing assortments and stocking fillers, will mark the introduction of new Cadbury Snowy Fingers. Available in pack sizes of 115g (rrp £1.29) and 230g (rrp £2.49), Cadbury Snowy Fingers are perfect for sharing during the seasonal period. The product contains the Cadbury Fingers Shortcake Biscuit, now coated in both milk and white chocolate. Another SKU joining the Christmas line-up is the Cadbury Fingers Star Assortment (rrp £4). The product features four flavours of Cadbury Fingers all in one pack — Milk, White, Salted Caramel and Snowy Fingers — in a starshaped box ideal for sharing or gifting.

MINI BABYBEL GOES FESTIVE The festive season isn’t all about sugary products. Mini Babybel is set to banish winter blues as the cheeses get festive. The brand will bring back twelve entertaining winter characters, including ‘the ice-skater’ and ‘the chilly’ in time for the Christmas season. Chloé Féminier, Head of Insight and Planning at Bel UK, says: “Mini Babybel is dedicated to bringing fun and enjoyment to every snacking occasion and the visually impactful winter-themed packaging will be launched at a time when consumers are excited by brands who choose to engage the festive spirit.”

£53.5m

is the value of the crisps, snacks and nuts category during the festive period.

SLR | OCTOBER 2016

Xmas.indd 60

www.slrmag.co.uk

28/09/2016 15:14:51

Christmas

Feature

“An increase in social engagements with friends and family drives a rise in snacking occasions.” MATT COLLINS, TRADING DIRECTOR AT KP SNACKS

56%

of UK consumers intend to visit more than one shop for their Christmas shopping.

every shelf. Elyse Charvin, Shopper Insight Executive at him! says: “Traditionally when people organise Christmas dinner they want fresh produce so they intentionally leave the important vegetable, meat and dairy elements of the meal to the last few days.” Last minute may seem like obvious shopping behavior, however, despite the obvious opportunity, him! reveals that only 7% bought their food shopping from a c-store last Christmas. That suggests that despite the stress of the long queues and overflowing car parks, many shoppers don’t seek out their local store to fulfil their festive last-minute needs. There’s some suggestion that c-store retailers could consider allowing customers to shop online, or encourage more social media interaction to help fulfil orders. Competition also exists from the likes of Amazon Pantry, launched specifically to address the festive season demand with, for example, Christmas themed boxes. However, retailers who stock the right lines in the run up to Christmas can provide the true last minute service, with the added benefit of local availability and allowing shoppers to avoid the crowds. Christmas is the biggest opportunity in the convenience channel due to its impulsivity, and in the best possible way, it can be a busy time for both customers and retailers.

MONDELÉZ TOP CHRISTMAS SALES TIPS Q Stock the bestselling lines and use our recommended stock list to help drive sales. Q Be prepared early: Q In October start the countdown to Christmas with self-eats. Q Continue the countdown theme in November with advent and novelty sharing lines. Q December — the magic of Christmas is here — stock selection boxes, Christmas themed gifts, family sharing lines and top-up gifts. Q Utilise manufacturers POS and build impactful displays in store to showcase your full seasonal range. Also remember to utilise the impulsive counter space for self-eat treats. Q Help shoppers manage their Christmas spending by giving a choice of self-eat treats and stocking fillers with products under £1 rrp. Q Make the most of manufacturer promotions. Q For further information on how to make the most of Christmas sales, visit www.deliciousdisplay.co.uk.

HOW TO SELL SPIRITS DURING THE FESTIVE SEASON

of shoppers were still purchasing on Christmas Day in 2015.

SLR | OCTOBER 2016

Xmas.indd 62

Diageo recommends retailers follow these simple steps to make spirits easy to shop during the festive period: 1 Range Stock the best-sellers and up-weight your premium product offering, highlighting new and growing product areas to ensure customers can pick up new trends in store. Display premium products above value products. 2 Layout Ensure customers can easily find their must stock items. Blocking vertically by category first, then brand and finally size will help to do this. Ideally shoppers would like to see all bottle sizes by brand together. 3 Eye-catching POS Use POS materials to draw attention to new, growing, seasonal or promoted products. 4 Category insight Ensure that you are communicating a compelling reason to buy products on promotions. 5 Price led communication Ensure the profit on return, recommended retail price and the actual vs promotional price is clearly communicated to shoppers across all products.

www.slrmag.co.uk

28/09/2016 15:14:52

ÂŽ Celebrations is a registered trademark. ÂŠ Mars 2016. Source: *Nielsen, Total Coverage, Total Chocolate MAT w/e 26th Dec 2015.

Food-To-Go

Feature

ON-THE-GO ANGELA DAULBY, CHANNEL DIRECTOR OF KEPAK CONVENIENCE FOODS.

“Food to go shoppers are not prepared to compromise on taste or quality.”

£2.2bn

SALES

Fast and furious or smart and swift? Food-To-Go means different things to different shoppers, so how do retailers pitch their fixture for best returns? With continued growth in food to go offerings and high margins available, SLR takes a fresh look at the options available to local retailers. BY ÉMER O’TOOLE

rom concessions and franchises to the benefits of creating bespoke solutions, Food-To-Go is an area of growth in c-stores. Snacking is growing, thanks to consumers’ increasingly hectic and busy lives. This is

SLR | OCTOBER 2016

Food 2 Go.indd 64

is the total value of the food-to-go sector in c-stores.

driving demand for snacks and on-the-go formats, and to greater choice when looking to pick up a quick bite away from home. Retailers have a massive opportunity to drive snack sales through cross category merchandising displays – focused on

www.slrmag.co.uk

28/09/2016 18:22:05

Food-To-Go

Feature

MONDELEZ’ TOP TIPS FOR ON-THE-GO SUCCESS Q Make it easy for shoppers to find the products they are looking for – time is of the essence as 70% of UK consumers purchase snacks whilst ‘on the go’. Q Customers expect on-the-go snacks to be at the front of the store, so site relevant products here to ensure ‘grab and go’ shopper satisfaction. Q The most consumed snack in Europe is fruit, followed by chocolate, with consumers choosing to go for sweet snacks (60%) over savoury (40%). In addition, coffee is consumed in a quarter of total out of home occasions. Think about this when planning where to place items on the shelf. Q Combine single serve beverages, savoury and sweet snacks within or near other fixtures to maximise shopper convenience and cross purchasing opportunities. Q Focus on impulse categories such as Chocolate, Candy and Gum at other high traffic areas. Q Focus on key categories to maximise return. For more information on getting the most out of your snacking range, please visit deliciousdisplay.co.uk

consumption occasions throughout the day – to inspire their shoppers. For example, at breakfast, stores offering hot drinks to go could look to site on-the-go breakfast products, such as belVita breakfast biscuits or cereal bars, alongside the machine to encourage incremental sales. Confectionery is a key category for retailers who want to grow their Food-To-Go sales, not only because of its scale, but because it is the most impulsive category stocked within convenience. This makes the category really important when it comes to driving incremental sales. Cadbury Dairy Milk Big Taste Toffee Whole Nut is available in a 43g single bar that combines the textures of whole nuts with toffee covered in Cadbury Dairy Milk chocolate. The launch aims to drive penetration in singles, particularly among those looking for textured eats, chunky bites and intense chocolatey flavours when they’re on-the-go or during an afternoon dip. Last month, Trebor, launched Trebor Mighties: a brand new, sugar-free mint that is ideal for on-the-go. Trebor Mighties delivers a continuous wave of cooling refreshment

and, as health conscious shoppers are increasingly looking for sugar-free options, Trebor Mighties aims help to provide these consumers with greater purchasing choice. It’s easy to boost the Food-To-Go spend by offering customers complementary hot or cold snacks and drinks as part of meal deal. They’re easy to manage, guaranteed to increase sales, and offer shoppers the value they’re seeking in the convenience channel. Micro snacks are a must stock for retailers looking to meet shopper demand for easy-toprepare hot Food-To-Go food. When it comes to a Food-To-Go, consumers are time sensitive. They want food and drink that can be prepared and served quickly and conveniently and that’s where micro-snacks such as marketleading Rustlers are particularly popular. Angela Daulby, Channel Director of Kepak Convenience Foods, says: “All Rustlers products can be prepared in less time than it takes to boil a kettle, set up a board game or wait for a blockbuster to download.” With continued growth, food to go is a key area to capitalise on. Drive sales through cross-category merchandising displays and meal deals.

70%

of purchasing decisions are made in store.

SAVOURY SNACKING Savoury snacks are increasing as sales of traditional fried potato crisps decline, with evidence suggesting that shoppers are switching to formats they perceive to be more permissible — according to Nielsen data. When done right, savoury snacks deliver on taste while offering a less guilty way to snack. Ritz shook up the crisps and snacks aisle in April 2015 with an innovative baked and light potato snack – ‘Ritz Crisp & Thin’. New Ritz Crisp & Thin launched in four popular flavours, available single bags to meet on-the-go needs. Mondelez International is now growing the range with a new 30g bag and three promotional price-marked packs. To drive further value into the category, the brand will be taking the popular Sweet Red Chilli variant from its sharing bag range into its on-the-go format and promotional 59p price-marked packs will be introduced for all variants within the 30g range.

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www.slrmag.co.uk

28/09/2016 18:22:06

JOIN US FOR A

2016

THE RELATIONSHIP WITH NISA IS ABSOLUTELY FANTASTIC. I’M REALLY PLEASED WITH THE ADVICE WE’VE BEEN GIVEN.

“On both ends of the road outside us there’s a big housing estate. But there are also around 2,000 houses around that as well, so it’s a big area and that’s largely where our customer base comes from, as well as the lunchtime trade from the police headquarters which is behind us. They have a limited lunch offering there, so we cater for them. We have a food to go section in store. We’re currently making close to 500 rolls, baguettes and sandwiches a day, which tend to clear out by two or three in the afternoon. There’s most definitely a demand for that.

The relationship with Nisa is absolutely fantastic. I’m really pleased with the advice we’ve been given. It’s certainly increased trade for me over the last 18 months. They also recommended a Costa Coffee machine, which we’ve had installed in the last four months, and I’ve been delighted with how well that’s taken off.”

Paul Cornell NISA LOCAL

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Must Stocks

Feature

STOCK UP ON IMPULSE SALES

Despite the relentless growth of ‘mission shopping’, impulse sales remain a fundamental part of local retailing in Scotland. Making the most of the opportunity to get that extra sale and push up basket spend with prominently displayed impulse options is vital. BY ÉMER O’TOOLE

he demand for snacks that can be enjoyed ‘on-the-go’ is on the rise, and this is an area for growth within impulse sales. As people’s lifestyles have changed, so too have their snacking habits. There’s an increasing need for snacks that can be enjoyed on the move, with an added emphasis on portion control. If retailers can get the right range merchandised and promoted in the right way, Burton’s estimates that independent retailers could share in biscuit sales increases of more than £25m in the next two years, with the key being to recognise and act on what’s driving market growth. Biscuits is the second most expandable category in ambient grocery, and as a result, promotions can have a significant impact on which products shoppers buy. Growth isn’t coming from low value, biscuit barrel fillers. The strong performers are must-stock treats for sharing with family and friends and, increasingly, savoury biscuits. Burton’s expects promotions to play a big part in driving biscuit sales in convenience in the future. In this sector, price cuts and price-marked packs drive impulse purchase on ‘treatier’ biscuits, while multi-buy offers continue to prove popular among consumers buying everyday biscuits. In terms of the drinks sector, CCE says energy drinks are in growth, something that looks set to continue as innovation in low or no sugar variants are introduced to the sector. Adult soft drinks, including Schweppes and Appletiser, are also performing well, and are proving to be a popular choice for at-home social occasions following a 19.3% increase in future consumption formats over the past 12 months. As consumers continue to become more health conscious, product launches like Capri-Sun’s No Added Sugar range are designed bring people back to the juice sector, by providing more choice. Instant consumption across the soft drinks category saw steady growth in 2015, as more www.slrmag.co.uk

Must Stocks.indd 69

“It’s important to make the experience easy for shoppers by merchandising products so they can be located quickly and efficiently.” AMY BURGESS, TRADE COMMUNICATIONS MANAGER AT CCE

1/3

of all biscuits are bought on impulse in the convenience channel.

people looked to hydrate while on-the-go. This trend looks set to continue and retailers can tap into this by stocking a variety of pack sizes in their chillers for people to purchase quickly. Unique pack formats like Mega Monster, the 553ml resealable can, or the new glacéau smartwater sportscap, can also help capitalise on the instant consumption trend. As shoppers have increasingly busy lifestyles, impulse sales will rise, so it is important that retailers stay ahead of the game.

SAVOURY BISCUITS Savoury biscuits have undoubtedly been the star performers this past year, creating new opportunities for convenience retailers and for a biscuit market that has faced challenges of late. Burton’s entered the savoury biscuits sector in 2014 with huge success, generating sales in excess of £25m with Burton’s Fish ‘n’ Chips and Cathedral City Baked Bites. The sector is really on consumer trend at the moment, meeting demand for products that consumers regard as both permissible and convenient. The fact they’re ‘baked not fried’ ticks the ‘better for you’ box, and the pack sizes allow for all-important portion control.

OCTOBER 2016 | SLR

28/09/2016 14:57:37

UTC

EXTRUDER DYSFUNCTION

It’s very rare that UTC has a kind word to say about his hard-working and conscientious colleagues at SLR Towers but last month was an exception when he (literally) doffed his cap to his colleague Findlay for bringing something amusing to his attention. Findlay is the guy who does all the clever stuff on the interweb for SLR, you understand. For reasons that have never been made clear, Findlay had discovered while researching material for the weekly quiz he puts together for the SLR interweb site that Play-Doh once got into trouble for creating an extruder for kids that bore a striking resemblance to….well, you decide. Thanks Findlay. We lost the auld yin’s services for most of the morning that day as he lay cackling to himself and plotting this year’s Christmas presents for the grand weans.

YOU CAN’T BUY HAPPINESS UTC is a man of simple tastes. Give him a dram, a comfy pub seat with his back to Sky TV and a copy of the Racing Post and life is pretty much complete. The same, however, cannot be said of his better half. Many’s a Monday morning at SLR Towers that has been ruined by a colourful rant by the auld yin about how much money Mrs UTC blew in Primark and Poundland that weekend. So you can imagine his reaction when he was sitting reading the latest issue of Psychological Science magazine and came across an article purporting to have found scientific proof that buying things can actually lead to happiness. Researchers allegedly found that people were literally happier when they spent money on things. If that was true, reasoned the auld yin, the researchers hadn’t bothered to include his missus in the sample because not even the acquisition of a new bri-nylon onepiece jumpsuit from Primark that weekend succeeded in shifting the scowl from her face. Maybe the researchers were onto something. The mere thought of going and buying something himself – a pint of Tennent’s, an ounce of Golden Virginia – had a remarkable effect on the auld yin’s spirits. 70

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SLR | OCTOBER 2016

ANY CHANCE OF A LYFT HOME?

It’s not every day that UTC picks up a good idea from his American cousins, but he was reading last month about an idea that he thought would catch on just lovely in sunny Glasvegas. Budweiser has hooked up with some mob called Lyft that basically provides a free lift home to law-abiding customers whom might have gotten a little carried away during a social evening in the public house and had a wee bevvy or two too many. The fact that the idea behind the service is to stop people drink-driving was lost on the auld yin who has never troubled himself with the inconvenience of sitting a driving test. Never seen the point, apparently. No, he was more interested in saving a fortune on cabs as there’s only so many taxi receipts he can squeeze into his expenses every week without the ‘auld accounts dragon’ at SLR Towers pulling him up.

I’LL HAVE THE BASTARD As regular readers will know by now, UTC is particularly enthusiastic about encouraging the next generation of retail entrepreneurs to climb their way up the greasy pole. For reasons best known to UTC, this enthusiasm often manifests itself most prominently when it comes to companies that make things like beer. Or wine. Or whisky. As a bit of a card-carrying real ale bore, he has a particular fondness for a well-made ale, even if he has had to learn to live with the PR shenanigans that seem to accompany most craftbeer launches these days. Brewdog has a lot to answer for in the auld yin’s book. He never understood the problem with being a sandals and cardigan kind of beer drinker anyway. So it was with an air of patient resignation that he kindly and selflessly agreed to sample the new Bastard Amber beer from Edinburgh-based microbrewery Barney’s Beer. His air of patience was growing thin, mind you, when he had to sit through a chat about how Bastard Amber was inspired by an idea from Blacklight, Edinburgh’s theatre lighting company. Apparently ‘Bastard Amber 02’ is the name of a stage lighting gel. Fortunately the beer tasted lovely and UTC can’t wait til it’s on draught at his local so he can swagger up to the bar and say in a loud voice: “I’ll have the Bastard, so I will!” www.slrmag.co.uk

28/09/2016 18:50:24