SLR September 2018 by 55 North

NEW

WE GET RETAIL BECAUSE WE’RE RETAILERS TOO!

SEPTEMBER 2018 | ISSUE 185

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LOW PRICE ROLLING TOBACCO

£10.90 * RRP

£17.80 * RRP

AVAILABLE IN 30g AND 50g POUCH THE FASTEST GROWING BRAND IN SCOTLAND1

* You are, of course, at all times free to sell JTI’s products at whatever price you choose. 1 Nielsen Market Track November 2017 to April 2018

NEW

LOW PRICE ROLLING TOBACCO

£10.90 * RRP

£17.80 * RRP

AVAILABLE IN 30g AND 50g POUCH THE FASTEST GROWING BRAND IN SCOTLAND1

* You are, of course, at all times free to sell JTI’s products at whatever price you choose. 1 Nielsen Market Track November 2017 to April 2018

WE GET RETAIL BECAUSE WE’RE RETAILERS TOO!

BLAKE GLADMAN

UNDERSTANDING

GENERATION

SEPTEMBER 2018 | ISSUE 185

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J TI MAN

BRUCE TERRY TALKS KENSITAS CLUB RYO LAUNCH

ASBURY’S?

CMA OPENS ASDA-SAINSBURY’S INVESTIGATION

TAXING ISSUE

UNTAXED TOBACCO SALES HIT RECORD HIGH

MPS GIVE VAPING THE ALL CLEAR

House of Commons Report set to spark vaping sales growth - but will local retailers miss out again?

Thinking of joining a fascia group, or switching? Read this first... p40

* Number one confectionery Supplier - IRI 2017 data to 31st December 2017 **C-store shop project 2016

September 2018

Contents

Contents ISSUE 185

NEWS p6 p7 p10 p12 p13 p20 p22 p24

Consolidation The Competition and Markets Authority launches an investigation into the Asda-Sainsbury’s merger. Vaping The Government’s Science and Technology Committee suggests a relaxation of e-cig legislation. Tobacco A major new survey reveals over three-quarters of smokers are regularly avoiding tobacco taxes. New Stores Scotmid will mark its 160th anniversary with a cutting-edge store in Drumnadrochit. News Extra Vaping Does the Scottish Government’s plan to give prisoners free e-cigs herald good news for retailers? Product News Coke Zero changes colour, while pladis wishes everyone ‘Merry Biscuits’. Off-Trade News Accolade Wines splashes £1m on a new campaign for its South African brand Kumala. Newstrade Newsquest replaces the pro-independence Sunday Herald with the politically neutral Herald on Sunday.

INSIDE BUSINESS p25 Research Digest This year’s long hot summer recorded the highest three-month sales growth for five years. p26 2 Minutes Of Your Time Bruce Terry JTI’s RYO Portfolio Brand Manager wants to keep the Kensitas Club ball rolling. p27 ThinkSmart Lesley Ann Gray SLR catches up with Kantar Worldpanel’s new senior lead for Scotland. p28 Store Profile Hillfoot Garages, Bearsden How Ian Gillespie transformed a tired local institution into the SLR Rewards winner for Best Refit of the Year. p32 ThinkSmart Generation Z What exactly will this new generation mean for local retailers, and what can we do to engage with them? p34 Woodlands Local The highs and lows from SLR’s convenience store in Falkirk. p38 Hotlines Mondelez unveils what could well be the world’s smallest biscuit, weighing-in at a single, solitary gram. p78 Under The Counter Some rather fetching headgear catches the Curmudgeon-in-Chief’s eye this month. FEATURES p40 Fascia Guide The choice these days is less about whether to join a symbol group than it is about which one to join. p58 Big Night In Even this most indulgent of occasions isn’t immune from the growing trend for healthier products. p64 Sports & Energy Drinks Still a hugely important category for local retailers, but stocking the right range is essential. p68 Tobacco Much-maligned but arguably the most important category in convenience, so is it time retailers took a more positive approach to Tobacco? p74 Halloween Frightnight is now a major sales opportunity and this year there are plenty of themed products to help build a spookily good fixture.

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ON THE COVER p16 Vaping Sales in convenience are flatlining – but a wave of positive recent news may be just what the sector needs to kick start fresh growth.

SEPTEMBER 2018 | SLR

News BUSINESS Competition watchdog looks at Asda-Sainsbury’s megadeal

General Mills names new Marketing Director General Mills, the owner of the Nature Valley, Häagen-Dazs and Petits-Filous brands, has announced the appointment of Mark Brown as its Marketing Director for northern Europe. The appointment comes as former Marketing Director, Richard Williams, moves to France to take up a position of Business Unit Director for Yogurt Europe & New Ventures within General Mills, tasked with growing the company’s Yoplait business. Brown has over 16 years’ marketing experience and has been with General Mills since 2011. Prior to joining the company he held marketing positions at Mondelez, Kerry Foods and Weetabix.

Lidl warehouse takes shape Work has begun constructing the steel frame for Lidl’s new

Asbury’s: CMA opens investigation The Competition and Markets Authority (CMA) has formally launched a Phase 1 inquiry into the proposed Asda-Sainsbury’s merger. This will decide if the £12bn deal can be rubberstamped, or if a more thorough Phase 2 investigation needs to be launched. The competition watchdog will examine whether the merger may lead to higher prices, poorer service or less choice for customers. It will also see if the new mega-mult could leverage its buying power to put the bite on suppliers. Both mults have asked for a fasttracking of proceedings on to the second phase, a move the CMA should agree to unless it receives valid objections by August 31.

The Chief Executive of the CMA, Andrea Coscelli, said: “About £190bn is spent each year on food and groceries in the UK so it’s vital to find out if the millions of people who shop in supermarkets could lose out as a result of this deal. “We will carry out a thorough investigation to find out if this merger could lead to higher prices or a worse quality of service for shoppers and will not allow it to go ahead unless any concerns we find are fully dealt with.” The shopworkers trade union Usdaw asked that the concerns of staff are heard as part of the inquiry. It called for the role of the CMA to be extended to include consultation with unions on any proposed mergers

or takeovers, as well as permanent trade union representation and a full review of UK takeover laws to consider the impact on workers. Paddy Lillis, Usdaw General Secretary, said: “All too often the staff are the last consideration as businesses are bought, sold or restructured and that needs to change.”

regional distribution centre at Eurocentral. The frame requires

BUSINESS COSTS Trade association urges government to help retailers

4,000 tonnes of steel – enough

SRC seeks ‘swift action’ in Scottish budget

to recreate the Kelpies five times over – and is expected to take around 12 weeks to erect. When complete, the building will become the discounter’s largest British warehouse. It forms part of Lidl’s aggressive expansion plans which has seen it spend £1.45bn in 2017–18.

Kepak buys red meat business Rustlers brand owner Kepak Group has acquired the 2 Sisters Red Meat business for an undisclosed sum. 2 Sisters operates from four British production sites including beef and lamb processor McIntosh Donald in Portlethen near Aberdeen. Irish-headquartered Kepak already has 16 manufacturing plants around the UK and Ireland. Commenting on the deal, John Horgan, Managing Director, Kepak Group, said: “The addition of these facilities to Kepak Group significantly increases the value

Keeping down business taxes, supporting consumers, and aiding retailers’ investment in skills should be at the heart of the Scottish Government’s Budget this autumn, according to the Scottish Retail Consortium (SRC). In its Budget submission entitled ‘Shaping retail reinvention’ sent to the Finance Secretary, the SRC highlighted the sheer pace of the profound changes affecting retail and proposed recommendations to Government – and Parliament as a whole – in key areas affecting consumers and retailers such as Scottish income tax, devolved business taxes, and skills funding. The SRC recommended that Scottish Ministers: Q Freeze the headline business rate poundage Q Accelerate the timetable for restoring the level playing field on the large firms’ rates supplement Q Scrap the proposed new rates

levy on out of town and online businesses Q Rule out increases in income tax and speed up the introduction of the zero-rate income tax band Q Increase the flexible workforce development fund and the amount firms can access Q Engage business on the soon to be devolved post-Brexit powers so that they are implemented or flexed in a sensible and costeffective manner The submission comes ahead of the publication later this year of the devolved administration’s spending and taxation plans for 2019-20. David Lonsdale, SRC Director, said: “With retail under enormous pressure, this Budget is an opportunity for Ministers and MSPs to take tangible steps to help retailers as they seek to reinvent themselves for the future. We hope the Finance Secretary will seize the moment.”

APPOINTMENTS

Neil Turton moves to Sugro Grocery industry veteran Neil Turton has been named as the new Managing Director of wholesale buying group Sugro. The former Nisa boss replaces Philip Jenkins, who left the business after 17 years to launch management consultancy Desh. Turton spent 23 years at Nisa, seven as CEO, before leaving in 2015 for spells with HIM, My Local and Cooperatives UK. There is speculation Sugro may be a takeover target for the merged Today’s GroupLandmark Wholesale company.

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News VAPING MPs suggest wide-ranging relaxation of e-cig legislation

Commons committee suggests tax breaks for e-cigs Following an extensive inquiry into e-cigarettes, a new report by the Science and Technology Committee has concluded that the government is missing significant opportunities to tackle UK smoking rates. Among its recommendations, the Committee urged the government to consider tax breaks for vaping products; allow wider use of vaping in public places such as offices, buses and trains; and create a streamlined route to medically-licensed vaping products. It also called on the government to reconsider the regulations around e-cigarette packaging and advertising. Advertising rules currently prevent the industry from making health claims comparing vaping to smoking. The Committee believes this is stopping UK smokers

Costcutter to ‘put shoppers first’ at next year’s Expo Costcutter has confirmed details of its 2019 Expo, which will take place at the Harrogate Convention Centre on March 28. Entitled ‘Putting shoppers first to drive your sales’, the one-day event, which will be followed by a gala dinner and awards ceremony, will see the Group share plans and programmes to help its retailers continue to grow and develop their businesses. The Expo will provide more detail about the new supply partnership and franchise options with the Co-op and will see the new Co-op own-brand range brought to life.

Charity in retailer pea plea Scots food charity Nourish

(almost seven million) from making informed decisions about switching to vaping, considered by Public Health England to be 95% less harmful than cigarettes. The report also states that restrictions on nicotine strength, tank size and bottles is not founded on scientific evidence and should be urgently reviewed.

However, a cloud of controversy has shrouded the inquiry and report, with the Committee drawing flak for taking evidence predominantly from tobacco companies (including JTI, BAT and Philip Morris) along with the vaping lobby. It was also reported that several MPs sitting on the Committee have links to the e-cigarette industry.

has launched ‘Peas Please’, a campaign to help people increase their vegetable intake in order to lead healthier lives. Retailers are invited to support the campaign by making a pledge to increase vegetables on offer while at the same time increasing the profile of their business as a healthy place to shop/eat. It does not cost

UNDERAGE DRINKING Campaign extended into three new areas

businesses anything to sign up

Clampdown on proxy purchase spreads across Scotland

(nourishscotland.org/projects/

The ongoing ‘You’re Asking For It’ campaign to combat underage drinking has now been rolled out across Glasgow, Kirkintilloch and Burntisland. The award-winning campaign raises awareness of the negative effects and offence of buying alcohol for under 18s, known as a proxy purchase. It was first trialled in Motherwell and Wishaw in 2015, followed by Leith in 2016 and was delivered successfully across North Lanarkshire in 2017. At an event in Motherwell earlier this year campaigners shared their experience of delivering the campaign and its impact. The event also saw the launch of the website www.youreaskingforit.com aimed at supporting those areas who wish to implement the campaign. As well as those mentioned above, areas including Edinburgh, Aberdeen and Inverclyde are keen to get on board. John Lee, Chair of the Scottish Alcohol Industry Partnership Campaigns Group and Head of Policy and Public Affairs for the Scottish Grocers’ Federation said:

Spar held a mass barbecue – or

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peas-please), but could make a huge impact on Scotland’s national diet.

Spar customers turn up heat on social media Sparbecue – recently to promote its range of own-label products. Five hundred customers were given Spar brand products to host barbecues in their own homes for groups of their friends. Parties took place simultaneously across the entire

Fingered: two North Lanarkshire stores were reported for repeatedly selling alcohol to u-18s during the campaign. “Interest in the campaign has been high. It is great seeing other parts of Scotland picking it up and rolling it out. “We know from our evaluation this campaign has a positive impact in tackling underage drinking. We will be assessing the results from the new areas running the campaign to feed into our plans for 2019. Our aim is to see it rolled out nationally.”

UK to showcase the brand’s range of fresh food, wine and barbecue essentials. The initiative resulted in around 5,000 target customers taking part, with many taking to social media to share pictures and comments of their parties using the #SPARbecue hashtag.

SEPTEMBER 2018 | SLR

News TOBACCO Most smokers regularly dodge paying duty, according to poll

SWA asks members to take part in MUP consultation The Scottish Wholesale Association is urging members to participate in the Scottish Government’s recently launched consultation on minimum unit pricing (MUP) by wholesalers on trade sales. The consultation comes ahead of a proposed change in the law that will clarify whether a wholesaler with a premises licence should apply MUP to trade sales or whether trade sales from those licensed premises are exempt from MUP. Responses will be used to inform the legislative change required. Visit bit.ly/2N1Po46 to get involved.

Dumfries coach on top of Spars ‘People’s Podium’ Mike Briggs, a gymnastics coach from Dumfries, has won Spar’s People’s Podium campaign, which recognised and

Untaxed tobacco buying hits record high, TMA survey finds A major survey of the behaviours of over 12,000 adult smokers in the UK has found that over threequarters are regularly avoiding taxes by buying tobacco from the black market, abroad or duty-free. The survey, commissioned by the Tobacco Manufacturers’ Association (TMA) and now in its fifth year, has revealed that numbers avoiding UK duty now stands at an all-time high. This supports HMRC analysis that untaxed and illegal tobacco remains a problem throughout the UK. Moreover, the findings suggest that adult smokers are being pushed towards non-UK duty tobacco by high tobacco taxation, the introduction of plain packaging and the recent ban on minimum tobacco pack sizes. The survey revealed 76% of adult smokers buy untaxed tobacco at

least once a year – this can be from legal sources such as at duty free but also includes illegal sources such as from people in the pub or in street markets. Given the number of people who holiday abroad, this may seem like no big deal. However, it was also revealed that 16% of adult smokers spend more than £1,000 on untaxed tobacco every year.

Furthermore, 28% of smokers polled agreed that plain packaging tempts them to buy untaxed tobacco, while 37% said minimum pack sizes tempt them to buy untaxed tobacco. The poll also found the average price for a pack of 20 illegal cigarettes to be £4.33 – almost half the typical legitimate UK price. London (85%) has the highest prevalence on non-UK duty paid tobacco purchases with Wales the lowest (70%). The TMA recommended that, post-Brexit, the UK introduces fixed limits on personal tobacco imports to end the option for smokers to bring unlimited amounts of cheap tobacco back from the EU. This, it said, would reduce the opportunity for criminals to buy tobacco, claiming it is for personal use and then selling it on illegally.

rewarded individuals supporting community sport across the UK. Hundreds of people were nominated and Spar rewarded four of the best with £2,000 each, which will go towards supporting their sports projects.

FORECOURTS Major revamp for Jet site

Newmains forecourt gets £75k upgrade

However, it was Briggs who took the £10,000 grand prize for his achievement in taking the Dumfries Y Gymnastics Club to new heights and the vaulting ambition of his future plans.

Tangerine Confectionery changes hands Retro sweet producer Tangerine Confectionery has been bought by Valeo Foods Group for an undisclosed sum. Dublin-based Valeo Foods owns a portfolio of over 50 international food brands including Rowse Honey, Fox’s and XXX Mints in the UK. The Tangerine purchase is its 12th acquisition in eight years. Tangerine was founded in 2006 and is home to the Barratt, Taveners, Jamesons and Princess brands. It employs approximately 1,200 people across five sites in the north of

Jet Cooper Brothers in Newmains, Lanarkshire has celebrated its 50th anniversary with a large-scale £75,000 redevelopment. Five new Tokheim Quantium 510 fuel pumps and a high-speed diesel pump for HGVs were installed, alongside upgraded tank gauging. The site was also reimaged in the latest Jet branding. A further £30,000 will be invested in changing the forecourt layout and adding additional parking spaces. The store, which operates under the Mace fascia, was stripped out and given a re-lay. Two new open

dairy deck fridges, a new counter area with a chiller and a Costa Coffee machine were added. A Lottery terminal is in the pipeline. The site remained open throughout the 2.5-week-long renovation, which was carried out by local tradesmen. Cooper Brothers has also signed a new five year retie contract with Jet and seen a rise in fuel volumes. Garry Gibson, Head of Operations at Cooper Brothers, said: “Although competing suppliers approached us when we were nearing the end of our last contract, Jet’s strong offer and fuel deliveries swayed us.”

FORECOURTS

TLM’s evoPOS gets nod from Shell TLM Technologies’ nextgeneration POS software, evoPOS, has been formally accredited by Shell. TLM evoPOS now supports Fill Up and Go and all known future Shell Customer Value propositions, further enhancing the Shell customer experience. Mark Gibbs, Major Oils and International Sales at TLM, commented: “This accreditation marks an important milestone for TLM as it has proven our technology in one of the most influential fuel and convenience networks in the world. “It’s testament to our dedication to meeting the needs of a rapidly changing fuel and convenience sector and the demand from retailers for reliable, future-proof technology to power their businesses.”

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CHOOSE GREAT COKE TASTE WITH OR WITHOUT SUGAR

In 2016 we reformulated Coca-Cola zero sugar to taste even more like the original Coca-Cola and as a result Coca-Cola zero sugar is the fastest-growing major cola in UK retail.* From September Coca-Cola zero sugar will also look more like Coca-Cola original taste as we move to the iconic Coke Red across both brands. This exciting move will be supported by a £5m marketing campaign, including TV, to explain to consumers that they can enjoy that great Coke taste and experience their way – with or without sugar.

To find out more visit www.cokecustomerhub.co.uk or call Customer Hub on 0808 1 000 000 *Top 5 Cola Brands in GB, AC Nielsen value MAT to w/e 23.06.18. © 2018 The Coca-Cola Company. All rights reserved. COCA-COLA and COCA-COLA ZERO are registered trade marks of The Coca-Cola Company.

News NEW STORES Energy efficent store earmarked for Loch Ness village

Manchester retailer scoops £10k in Camelot draw Waquar Akhtar, who runs Choudhry Brothers in Greater Manchester, is the first National Lottery retailer to win £10,000 in the quarterly prize draw linked to Camelot’s Site, Stock, Sell programme. The 10-point programme helps retailers to improve their in-store standards and increase sales throughout the year by asking simple questions covering site, stock and selling. Waquar commented: “It’s just fantastic. I never thought someone like me would win, but it’s actually happened! I can’t believe it.”

JJ Foodservice invests in Bolt-powered e-learning National wholesaler JJ Foodservice has become the latest company to offer staff at its 11 branches bespoke online training produced by Bolt

Scotmid to mark milestone with new Drumnadrochit store Scotmid Co-operative is set to mark its 160-year anniversary by opening the doors to a new state-of-theart purpose-built environmentally friendly convenience store in Drumnadrochit in January 2019. With remodelled stores already unveiled in Moredun, Bankton and Uddingston so far this year and additional work planned for its Newtongrange store in November, Scotmid has utilised the latest energy efficient technologies to reduce its environmental impact with refrigeration pinpointed as a key priority. Now Scotmid, which formed in 1859 as St Cuthbert’s Co-operative, is preparing to unveil a new purpose-built 4,500sq ft store in Drumnadrochit in the New Year, as part of a five-unit complex, situated beside Loch Ness. All the new-look stores have fully glass-fronted facades to maximise natural daylight entering the buildings plus the stores’ electrical lighting systems are made up entirely of LED fittings, which are over 50% more energy efficient than traditional lighting systems. At the centre of the modernised stores are new refrigeration cabinets and a clear focus on saving energy, which Scotmid has identified as a key strategic priority going forward.

The Hauser-manufactured cabinets are being rolled out as part of a 12-year strategy that will ensure that Scotmid will comply with EU F-Gas Regulations and meet the 2015 Paris Climate Change Agreement. The cabinets are manufactured in a modern dark grey finish, have doors and the latest in-built technology. Refrigeration will also be controlled by a central plant and run on a natural refrigerant (CO2) rather than polluting HFCs. In addition, Scotmid is continuing to roll out a foodto-go offering across all 180 food stores in its estate. This programme of work will see Scotmid’s ‘Kitchen’ stores revamped and the range of food-to-go products expanded across many of the stores. Maurissa Fergusson, Scotmid’s Head of Property and Development, said: “We are extremely excited about our new Drumnadrochit store, which represents the future of Scotmid. “The store design introduced at our stores in Moredun, Bankton, Uddingston and scheduled to be introduced in Newtongrange has completely modernised our customers’ shopping experience and we believe these changes represent the beginning of the future for Scotmid.”

Learning. The modules cover a range of topics including motivating teams, communicating effectively, stress management, delegation, negotiation, coaching

CHARITY Scots organisations rewarded by Making A Difference Locally

Nisa’s charity announces £100k competition winners

and health and safety. JJ said it picked Bolt for its forward-thinking approach and its mobile-friendly training modules.

Mondelez on track to hit packaging target Mondelez is four-fifths of the way towards eliminating 65,000 metric tonnes of packaging from its products by 2020. In its 2017 ‘Impact For Growth’ progress report, released last month, the snacking giant also revealed it had reduced its waste by 15%, also on target to reach 20% goal by 2020. The company is also making inroads on cutting its carbon dioxide emissions that result from manufacturing. “Having a positive impact on our planet and the communities we do business in is core to who we are as a company,” said Mondelez Chairman and CEO

Two Scottish organisations were among the 10 winners of Nisa charity Making a Difference Locally’s 10th birthday bonanza competition. Brothers in Arms Scotland (pictured) and Create Paisley, along with eight other UK charities, will each receive £10,000 to help them to improve their marketing, reach more funders and beneficiaries, and become more sustainable. All the winning organisations are invited to take part in a celebratory event this month, where they will also attend marketing, fundraising and bid-writing masterclasses from industry experts to help them get the

most out of their increased marketing budgets. Brothers in Arms offers support to men in Scotland, of any age, who are down or in crisis and empowers them to ask for help when they need it, without feeling a failure if they do. Create Paisley is a youth arts charity that hosts open mic nights, arts workshops, a youth forum and more. As part of their entry, each cause was asked what they would use the funding towards, with the winners’ wish lists including promotional films, local marketing campaigns, new websites, training courses and more.

CHARITY

GroceryAid announces Barcode Festival 2019 Following the success of the inaugural Barcode Festival in June, GroceryAid has announced that the summer fundraiser for the grocery industry will return on Thursday July 4, 2019. In its launch year the festival raised £250,000 with 1,600 grocery colleagues enjoying 10 hours of music, food, drink and demos. With the guest list including a much younger crowd than the charity is used to hosting and 54% female attendance, Barcode was an inclusive, ground-breaking event for the industry. The festival combined street food, 15 bars, activations from over 40 sponsors and headline acts Kaiser Chiefs, Sigma and Greg James. For sponsorship and ticket opportunities email events@ groceryaid.org.uk or call 01252 875925.

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Scotland’s Prisons Go Tobacco-free | Vaping

News Extra

NewsExtra THE FACTS ABOUT FASCIAS – P40 VAPING Change of heart at Holyrood?

FREE VAPING PLAN FOR PRISONS SIGNALS SOFTENING OF SCOTTISH GOVERNMENT LINE The news that prisoners in Scottish jails are to be offered free vaping kits suggests that the Scottish Government’s stance on the vaping category is softening.

Prisoners who smoke are set to be offered free vaping kits as part of a wider plan to ensure that Scotland’s jails are tobacco-free by the end of November. The plan, which will cost around £200,000, is part of a programme to support inmates give up smoking. The news suggests a softening of the Scottish Government’s line on vaping and could ultimately be to the benefit of Scotland’s local retailers. The Scottish Government announced last year that it planned to ban tobacco in prisons, principally because of health concerns about the risks of passive smoking. The latest announcement means that vaping kits will be issued from the start of November, before the ban comes into force at the end of the month. Additionally, the kits will be available to prisoners for free for two months then will be sold to them at a discounted rate until April 2019 before they are made available to prisoners at normal prices. It is estimated that more than 70% of Scotland’s prisoners are smokers, a much higher rate than the general population. Among female inmates, the figure may be as high as 95%. Smoking in enclosed public places was outlawed in Scotland in 2006, but the ban doesn’t apply to prisons. Scottish Prison Service (SPS) spokesman Tom Fox said it was important to help inmates give www.slrmag.co.uk

up tobacco: “After November 30, there will be nowhere in our prisons where anyone will be able to smoke. People in the community who are giving up cigarettes still have the opportunity to smoke in parts of the community. The people in our care won’t be able to smoke at all. We are recognising the unique nature of that environment by providing the support we are.” Emma Logan, Communications Director of JAC Vapour, the company supplying the kit to prisons, told SLR that she hoped the move reflects a softer line from the Scottish Government: “We are delighted to be supporting the SPS by creating specialised products that assist switching from tobacco to vaping in their institutions. We hope this is the beginning of a more relaxed approach to vaping as a method of harm reduction and can be replicated across other government led areas. “With over 5,000 Scottish smokers aged 35+ reported as dying of smoking related diseases each year and with nearly 20% of the adult Scottish population still smoking, the highest percentage in the UK, more education via relaxed advertising restrictions surrounding the benefits of vaping would also go a long way to aid the health of the nation. Reports by Public Health England maintain their stance, year on year, that vaping is 95% safer than smoking.”

Convenience Matters with the SGF For the past three years, and in partnership with our colleagues from ACS, we have collected Scotland-specific data on the scope and scale of the convenience store sector. This data is published in our Scottish Local Shop Report. The report itself has become a very effective message carrier in highlighting to key policy and decision makers how important c-stores are to Scotland’s economy and Scotland’s communities. The numbers are impressive: 5,300 stores, 41,000 jobs and a contribution of over £530m pounds to Scotland’s economy each year in Gross Value Added. However the numbers are just the tip of the iceberg: convenience stores play a vital role in supporting each part of the value chain. A key part of this – and something which we believe has not had the attention it deserves – is the role c-stores play in supporting local businesses and giving them a vital route to market. This year we have made a big effort to engage with Scottish businesses and encourage them to become members of SGF. This is proving to be very successful. The feedback we get from these companies is helping us to understand the business benefits derived from a serious engagement with the convenience channel. Common themes have emerged: quick decision making capability from store owners, the capacity for rapid deployment of products in store, the ability to derive value from tailored product formats and pack sizes. In our view we have to make more noise about the absolutely crucial role independent convenience stores play in supporting businesses, job creation and in encouraging entrepreneurship and enterprise.

SEPTEMBER 2018 | SLR

Comment

LET’S NOT DROP THE VAPING BALL AGAIN EDITORIAL

When vaping first arrived in the UK in about 2007, it probably struck many retailers at the time as one of those fads like energy shots – remember them? – that would generate a few headlines and a lot of marketing spend then quietly fade away. It didn’t turn out that way. Within a few years there were hundreds of thousands of vapers and these days there are an estimated three million of them, albeit half of that number are apparently dualists that both vape and smoke cigarettes. The industry is now worth a cool £1bn in the UK – but here’s the thing: only about £160m of that cash goes through traditional retail channels. The vast majority of the spend is either online or through specialist vapeshops. Whichever way you look at it, those numbers represent one massively dropped ball by the convenience channel. With so many similarities between the tobacco and vaping categories, how did we go from being the route to market of choice for cigarettes to being worse than an also-ran in vaping? The answer, if we’re being honest with ourselves, is that our sector hasn’t done a very good job of embracing the category. Few and far between are the c-stores that sell a well-presented, comprehensive range of products in line with shopper demand. Rare too are the c-stores that can offer informed advice to consumers desperately in need of support from the stores they buy from. Hats off to the vapeshops, who tick both boxes, and are enjoying the benefits while the online vendors are mopping up the bulk of the rest of the market with value pricing and big ranges. A series of recent developments, however, could very well spark yet another surge in vaping. This makes it all the more important that local retailers in Scotland take a fresh look at the market and ask themselves what they can do to secure a bigger slice of a category that they should be doing much better in. The House of Commons Science and Technology Committee published an e-cigarettes report last month that essentially concluded that the government is missing significant opportunities to tackle UK smoking rates by loosening up the rule on vaping. The Committee is urging the UK government to consider tax breaks for vaping products, allowing wider use of vaping in public places and rethinking the regulations around e-cigarette packaging and advertising. It is also calling for an “urgent review” of the restrictions on nicotine strength, tank size and bottles which it says “are not founded on scientific evidence”. In the same week the Scottish Government announced that it is to offer vaping kits for free to prisoners who smoke in Scottish jails as part of a plan to turn all Scottish prisons smoke-free by the end of November this year. Does this reflect a softening of the Scottish Government’s line on vaping too? It certainly looks that way. The big concern is that if vaping is set for another growth spurt, are local retailers set to miss out again? It’s time we too urgently reviewed the category and worked out exactly what we need to do to capitalise on a massive opportunity before it’s too late.

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

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

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

EVENTS Events & Operations Manager Cara Begley 0141 222 5381 | cbegley@55north.com

CIRCULATION & SUBSCRIPTIONS Scottish Local Retailer is distributed free to qualifying readers. For a registration card, call 0141 222 5381. Other readers JUNE 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 should be reproduced in whole or part without the written permission of the publisher. All copyrights are recognised and used specifically for the purpose of criticism and review. Although the magazine has endevoured to ensure all information is correct at time of print, prices and availability may change. This magazine is fully independent and not affiliated in any way with the companies mentioned herein. Scottish Local Retailer is produced monthly by 55 North Ltd.

ANTONY BEGLEY, PUBLISHING DIRECTOR

SLR | SEPTEMBER 2018

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Cover Story

Vaping & Reduced Risk Products

CATEGORY W KNOWLEDGE KEY TO DRIVING VAPING BACK INTO GROWTH Despite the fact that vaping and reduced risk products continue to grow massively, sales in convenience are flatlining – but a wave of positive recent news may be just what the sector needs to kick start fresh growth and it all begins with training. BY ANTONY BEGLEY

SLR | SEPTEMBER 2018

hen the vaping category exploded onto the UK scene in 2007, it launched a huge wave of excitement and enthusiasm among a lot of people – not least many hundreds of thousands of smokers who viewed the new-fangled products as a potentially more effective way of kicking cigarettes. Before long, local retailers too had latched onto the market, viewing it as a ready-made replacement for the declining traditional tobacco category – and with much better margins thrown into the bargain. A lot has happened since then but the seismic shift to vaping among consumers has been one thing that has remained constant. By 2012 there were already 700,000 vapers in the UK and this figure has now reached nearly three million people, over half of whom have given up smoking entirely. On the face of it, this should have been hugely welcome news for Scotland’s local retailing sector – but something has gone badly wrong. While the vaping and reducedrisk products market has continued to rocket, sales in convenience stores have flatlined as shoppers have moved either online or to specialist vaping shops. Sophie Hogg, Head of Next Generation Products at Imperial Tobacco, explains: “The total UK vaping market currently worth over £1bn [Nielsen, Oct 2017]. Vaping is on trend at the moment and many independent retailers already have done well to capitalise on its popularity. However, most e-vapour sales – around 75% – still stem from online stores or

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Vaping & Reduced Risk Products

specialist vape shops, as they tend to be seen as the go-to category experts. “There’s huge headroom for growth in the more ‘traditional channels’, which currently account for just shy of £160m, so Imperial is keen to educate and support any independent retailers interested in getting involved with the category.” The big and awkward question here is how did the convenience sector get it so wrong? Local retailers have for a very long time been seen as the ‘go-to category experts’ in tobacco thanks to a combination of factors: the sheer number of stores, their convenient locations, their speed of service and so on. So it’s not easy to understand why the local retailing sector has failed to capture a much bigger slice of what is effectively a very similar category in most respects. There are of course many answers to this tricky question but they can probably be summed in in just a few words: range and lack of category knowledge. The massive proliferation of suppliers in the market over the last decade hasn’t helped retailers or consumers. Consider that a big Tesco store stocks around 24,000 SKUs, then consider that there are more than 44,000 vaping SKUs currently available in the UK. The situation was improved, however, by the introduction of the EUTPD2 regulations in 2017. The new legislation helped strip out some of the lower-quality suppliers and the fast-buck brigade that tend to accompany the birth of every new and potentially lucrative category. But it’s the lack of in-store knowledge that is likely to be the biggest and most concerning reason behind the poor vaping sales in convenience. Vapers are often looking for sound advice and knowledgeable support as part of their buying experience, which is where vape shops currently seem to excel. Online mops up the rest by offering convenience and value. So is the opportunity gone forever? No, of course it’s not and a recent wave of positive news around the category is perhaps just the catalyst the sector needs to reinvigorate its approach to vaping and reduced risk products. The long-awaited e-cigarettes report from the House of Commons Science and Technology Committee was published last month and almost literally couldn’t have been any more positive about the category. The inquiry concluded that the government is missing significant opportunities to tackle UK smoking rates. The Committee is www.slrmag.co.uk

urging the government to consider tax breaks for vaping products, to allow wider use of vaping in public places and to reconsider the regulations around e-cigarette packaging and advertising. The report also states clearly that restrictions on nicotine strength, tank size and bottles are not founded on scientific evidence and should be urgently reviewed. Specifically, the report said that “the Committee is calling on the Government to consider risk-based regulation to allow more freedom to advertise e-cigarettes as the relatively less harmful option, and provide financial incentives, in the form of lower levels of taxation, for smokers to swap from cigarettes to less harmful alternatives such as e-cigarettes. Further, it is calling for a reconsideration of: their use in public places; limits on refill strengths and tank sizes; and the approval systems for stop smoking therapies such as e-cigarettes.” It’s as close to a clean bill of health as the category is ever likely to get with multiple reiterations of NHS England’s much-quoted finding that vaping is 95% safer than smoking. Norman Lamb MP, Chair of the Science and Technology Committee, said: “E-cigarettes are less harmful than conventional cigarettes, but current policy and regulations do not sufficiently reflect this and businesses, transport providers and public places should stop viewing conventional and e-cigarettes as one and the same. There is no public health rationale for doing so.” Lamb also highlighted how concerns that e-cigarettes could be a gateway to conventional smoking, including for young non-smokers, have not materialised and flagged up e-cigarettes as a “key weapon in the NHS’s stop smoking arsenal”. He added: “E-cigarettes are a proven stop smoking tool and, while uncertainties undoubtedly remain about their long-term health impact, failing to explore the use of

Cover Story

TREND WATCH Some of the latest trends coming down the line for local retailers to keep an eye on: NICOTINE SALTS Unlike so-called ‘freebase’ nicotine, the ‘purest form’ of nicotine that’s been used in most vaping liquids for over a decade, nicotine salts are made using crystals extracted from the tobacco leaf. The result is a product with a much more pronounced ‘hit’ that more closely resembles the cigarette experience by being more quickly and easily absorbed by the body that also leaves the user feeling more satisfied for longer. The US megabrand Juul uses nicotine salts, as does the myblu range of Intense Liquidpods. Sophie Hogg, Head of Next Generation Products at blu UK, says: “With 57% of new vapers opting for closed systems [Fontem, 2016], we’re excited about the possibilities for myblu and our unique Intense Liquidpods. The latest myblu product offering has been created to help adult smokers in their journey towards something better by offering a rapid delivery of nicotine that will remind them of smoking a traditional cigarette. Its unique Nic Salt-infused proposition means it’s the smoothest, most satisfying and intense myblu experience yet.” CBD The CBD category first hit the headlines around a year ago when Holland & Barratt started selling CBD products. The market has since exploded, with a number of companies now offering CBD vaping liquids. The cannabis-based product is much misunderstood but potentially represents a big opportunity for local retailers. In a nutshell, cannabis contains a whole range of what are known as cannabinoids of which two are the most important: cannabidiol (CBD) and tetrahydrocannabinol (TCH). TCH is the psychoactive substance that provides a high. CBD does not and the law states that CBD products on sale in the UK must contain less than 0.2% TCH. Many users have found CBD to be extremely helpful in tackling inflammation-based pain such as that caused by fibromyalgia, multiple sclerosis and arthritis. Craig Johnston of Hamilton-based Hope CBD, sponsors of the Hamilton Accies football stadium, told SLR: “Cannabidiol is non-psychoactive and non-addictive, and has been shown to provide many benefits, with more people understanding the benefits of having a healthy endocannabinoid system. We always advise our customers to do their research on the benefits and if they want, then Hope CBD can provide a lab-tested, certified organic product.”

SEPTEMBER 2018 | SLR

Vaping & Reduced Risk Products

Cover Story

e-cigarettes could lead to the continued use of conventional cigarettes.” Only days after this report was published the Scottish Government then announced that it was to offer free vaping kits to Scottish prisoners who smoke as part of a drive to make Scotland’s prisons smoke-free by the end of November. Prisoners will receive free kits for two months then be able to buy subsidised kits until April 2019. This move appears to be the first public action by the Scottish Government that perhaps reflects a softening of its line on vaping. Emma Logan, Edinburgh-based Communications Director of JAC Vapour, the company that will be providing the kits for Scottish prisons, seems to think so: “We hope this is the beginning of a more relaxed approach to vaping as a method of harm reduction and can be replicated across other government led areas. “With over 5,000 Scottish smokers aged 35+ reported as dying of smoking related diseases each year and with nearly 20% of the adult Scottish population still smoking, more education via relaxed advertising restrictions

MPS BACK VAPING’S POTENTIAL TO ‘RADICALLY REDUCE SMOKING’ There’s little doubt about it, the House of Commons Science And Technology Committee E-cigarettes report published last month couldn’t have been much more positive for the vaping and reduced risk products category, and potentially for local retailers too. The inquiry to all intents and purposes concluded that the government is missing significant opportunities to tackle UK smoking rates. Among the recommendations, the Committee urges the government to consider tax breaks for vaping products, allow wider use of vaping in public places and create a streamlined route to medicallylicensed vaping products. Significantly for local retailers, it also calls on the government to reconsider the regulations around e-cigarette packaging and advertising. Advertising rules currently prevent the industry from making health claims comparing vaping to smoking. The Committee believes this is stopping UK smokers (almost seven million), from making informed decisions about switching to vaping, considered by NHS England to be “95% less harmful than cigarettes”. The report also states that restrictions on nicotine strength, tank size and bottles is not founded on scientific evidence and should be urgently reviewed. John Dunne, a witness before the Committee on behalf of the UK Vaping Industry Association (UKVIA), said: “The Science and Technology Committee report is a ringing endorsement of vaping’s public health potential. “They are absolutely right that advertising restrictions are preventing smokers from hearing the truth. More and more people wrongly believe vaping to be more harmful or as harmful as smoking. This is a direct consequence of advertising restrictions that prevent the industry from telling smokers that vaping is 95% less harmful. If health bodies can say it, why can’t we? “The industry is pleased to see the Committee recognise the nonsensical packaging and nicotine strength regulations, that only hamper vaping’s potential appeal to smokers looking for an alternative. “Only recently we were hearing worrying rumours of a supposed tax on vaping. It is therefore encouraging to hear the Committee speak sense in calling for a reduced tax on vaping to recognise its health improvement potential for smokers. “More research is of course required, and we entirely support their calls for regular, publicly available, evidence reviews. But we already know the harm smoking causes, that is why we must not stifle this important innovation. We look forward to seeing the government’s response.”

SLR | SEPTEMBER 2018

surrounding the benefits of vaping would also go a long way to aid the health of the nation.” The massive media hype surrounding the phenomenal growth of the Juul brand in the US is also helping to keep vaping on the front pages. The brand has taken the country by storm with 800% growth in the last year alone, taking the company’s annual sales to Jun 16 this year to a whopping $942.6m, according to Nielsen data. That gives Juul a 72.2% share of the US market. The growth is not without its detractors, with many citing the ultra-sleek and discreet design of Juul’s device – the company is frequently referred to as ‘the Apple of the vaping world’ – as a factor in the growth of younger people taking up vaping despite never having smoked tobacco. The company exclusively pitches its product, however, as a tool to help smokers get off cigarettes. So, with the stars apparently aligning for another period of huge growth, what do retailers need to do to get themselves back in the game? George Tucker, Communications Manager at Imperial Tobacco, tells SLR: “To a certain extent the convenience sector has been left behind by the development of the vaping market. The overall image of the vaping category has been defined by the almost cult image of tattooed, bearded vapers in lumberjack shirts blowing huge clouds of vapour, but the reality is that this is not representative of the mainstream market – and it’s the mainstream market that is most important to local retailers.” Tucker highlights that while there around 7m or 8m cigarette smokers there are now over 3m vapers, around

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Vaping & Reduced Risk Products

Cover Story

half of whom are dualists, switching between cigarettes and vaping. “While the category continues to grow massively and there seems to be good reason to assume that it will continue to grow strongly in the future, sales in convenience have hit the buffers,” says Tucker. “But there are plenty of reasons to be optimistic and plenty that local retailers in Scotland can do to start driving growth back into the category. For one thing, around 40% of smokers haven’t even tried vaping yet. I think we can conclude that the majority of those who were going to try it have already done so, so one of the key challenges now is to talk to that 40%.” Even for those who have tried it, however, there may still be scope for growth. In a market awash with products of hugely variable quality, it’s understandable that many smokers may have tried vaping but been put off by a lowquality experience. Vaping technology has advanced massively in recent years however, so the time may be right to try to encourage these smokers to give the category another go. At the risk of sounding like Tony Blair, Tucker says the number one priority for local retailing is “education, education, education”. He advises: “The golden key to unlocking vaping growth is staff training. Store staff need to understand the category in the same way that their customers do. They need to be able to offer informed advice and support to give shoppers the confidence they need the keep coming back. It can be a complex category but the effort to really get to grips with it will be more than rewarded in the till.” After staff training, the next most important issue is providing a strong core range of products that are in line with the demands of modern vaping shoppers. All of the major manufacturers have been busy of late, with blu launching and enhancing its myblu range of pod-based ‘closed system’ products’ and launching its most powerful ‘open system’, the blu ACE while Logic has revamped its range of LQD e-liquids. There’s no shortage of products and advice out there to help retailers and it certainly seems to be the right time for the sector to take a long, hard look at the category and what we can do to grab a bigger slice of the vaping cloud. www.slrmag.co.uk

SEPTEMBER 2018 | SLR

Products

News

ProductNews VIP MATCHDAY EXPERIENCES Pl u s

M I LLI

ONS of other prizes avail

HEADING FOR A HEALTHIER BIG NIGHT IN – P58

ab l e

SOFT DRINKS Coca-Cola standardises drinks packaging

HOW TO PLAY Pick up a pack and enter online to receive your Premier League score prediction. If that result comes in, you win!

Coke Zero goes into the red

UK 18+, 01/08/18-26/10/18, see promotional packs or matchandwin.cadbury.co.uk for terms and conditions

Cadbury Match and Win returns for 2018/19 season Cadbury has kicked-off its biggest-ever on-pack promotion with the return of Match and Win. This season there are more prizes across more promotional packs (standard and PMPs) spanning more categories including biscuits, singles, duos, bags and drinking chocolate. Around 70 SKUs including Twirl, Boost, Cadbury Dairy Milk, Double Decker, Crunchie and Starbar lines are covered. Millions of prizes are up for

Coca-Cola has revealed a new design for the Coca-Cola range featuring new look packaging for Coca-Cola original taste and Coca-Cola zero sugar. The changes unify both variants with the Coca-Cola red colour and form part of the company’s commercial strategy to encourage more people to try Coke zero. From September onwards, the bottles and cans of both variants will feature the Coca-Cola red with a coloured band across the top of the bottle or can to denote whether it is the original taste or

zero sugar. The bottles will also feature coloured caps to help consumers differentiate between the original recipe and no sugar variants. The packaging changes are the latest move in the company’s commercial strategy to drive sales of its no sugar drinks including Coca-Cola zero sugar. Since launching in 2016, Coke zero has become the fastest growing no-sugar cola in UK retail. Today 58% of the Coca-Cola sold in retail in Great Britain is no sugar. A £5m marketing campaign will communicate the changes

to consumers and will include a 10 second and 30 second TV ad alongside out-of-home advertising. An extensive CocaCola zero sugar sampling campaign will see seven million cans sampled by the year’s end. The new ad, ‘One Way or Another’, reminds consumers they can drink Coca-Cola either with or without sugar. The ad is brought to life through a series of mirrored visuals of experiences that are just as enjoyable either way – tied together with the tagline ‘an original taste, one way or another’.

grabs in the £1.5m activity, including a Premier League VIP matchday experience, Premier League tickets and cash. To win, consumers need to go online and enter the barcode and batch code found on the back of one of 203 million promotional packs. The site will then generate a score prediction for a real Premier League match in the upcoming weekend of fixtures. If their score prediction matches the final game result, consumers are guaranteed to win a prize. An extensive range of POS is available, and the promotion is supported by out-of-home advertising, social media and online video activity. Susan Nash, Trade Communications Manager at Mondelez International, said: “With a £1.5m marketing investment, we expect demand to be high, so retailers should stock up in advance and maximise visibility in store with the impactful POS theatre

FOOD-TO-GO

Lomond launches hot food-to-go range Lomond – The Wholesale Food Co has added a hot range to its food-to-go options. The new fully-cooked range not only provides menu choices for the traditional three-meals-a-day model, but also offers hot snacks to satisfy the trend for grazing. The new range includes breakfast options such as sausage or bacon rolls, breakfast pizza twists and Scottish muffins with sausage patties and egg. For lunches, Lomond offers cooked and breaded or steamed chicken, farm-to-fork burger patties (both raw and cooked) and a range of pulled meats (beef, pork, ham and chicken). There is also a Wing and Rib bar concept, offering mini ribs in BBQ and Chinese flavours, Mesquite buffalo wings and lightly dusted wings in Frank’s Hot Sauce. The Side Kick range offers fiery mozzarella balls, jalapeño cheese poppers, chilli chicken fries and flamin’ chicken chunks. A prepared-for-later range that customers can take home includes lamb shank, rack of ribs and chilli brisket. “The new hot food is backed up with quality point of sale as well as unique servery equipment options,” said Barbara Henderson, Director, Lomond.

to make the most of the opportunity.” KEEP UP WITH THE LATEST NEWS AS IT HAPPENS – FOLLOW US ON TWITTER @SLRMAG

SLR | SEPTEMBER 2018

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Products

News

Mentos says hello... again The Mentos ‘Say Hello’ campaign has returned for 2018, with a limited-edition run of mint and fruit single rolls and multipacks. The brand will once

BISCUITS Snacking giant reveals Christmas range

Merry Biscuits once again from pladis

again encourage consumers to bond, but this time over sweets printed with one of 22 bespoke emoticons.

Pladis has unveiled its 2018 Christmas biscuits range, recycling last year’s ‘Merry Biscuits Everyone’ as the name for its festive campaign. McVitie’s Victoria is back for Christmas, with sparkling seasonal packaging to give the product added appeal following consumer feedback. It is available in a range of formats from the popular 100g (RSP £1) to more shareable 300g (RSP £5) and 600g (RSP £8) boxes. Consumers looking for some festive luxury will be met with the return of McVitie’s White Chocolate Digestives Nibbles. The limited-edition variant

will feature deluxe festive packaging, ensuring the product stands out on shelf (RSP of £1.99 for a 120g sharing pouch).

Mentos says the emoticons “turn each chewy candy into a talking point, perfect for breaking the ice when meeting someone new”. The campaign is backed by a £2.5m media spend, including widespread advertising and POS, which is expected to reach 85% of the brand’s target audience of 16 to 34-year-olds.

Landmark expands Sunspring range Landmark Wholesale has added two new flavours to its Sunspring water range, Lemon & Lime and Strawberry. Both are available in

THE PLADIS FE

STIVE OFFERIN

500ml sports cap bottles with an

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RSP of 45p. Landmark has sold over one million bottles of Sunspring since launching it earlier this year. “With the crackdown on sugar at the forefront of many customers’ minds, flavoured water is becoming an increasingly popular alternative,” said Anna Roddis, Trading Controller at Landmark Wholesale.

Logic drops e-liquid price Vaping brand Logic has updated its Logic LQD e-liquids range, including a new bottle design and a lower RSP.

For convenience retailers looking to capitalise on Christmas, pladis has put together its top five tips for maximising the festive opportunity: Q The early bird catches the pounds. The average shopper buys into Seasonal Biscuits twice over the festive period. Maximise sales by stocking Seasonal Biscuits at least 12 weeks before Christmas. Q Focus on core, sell more. Stock the bestselling lines across the different segments and make your fixture easy to shop.

www.slrmag.co.uk

At an RSP of £3.99 for 10ml, the new bottles have a screwcap lid and travel-size design. Available in tobacco, cherry, menthol and berry mint, the range reflects the most popular vaping flavours – fruit (30%)

Q Make Seasonal Biscuits impossible to miss. Shoppers are on auto-pilot so it’s important to interrupt them and encourage impulse purchasing through impactful displays in high footfall areas.

menthol (22%) and tobacco

Q Shout about value. Everyone’s looking for a deal at Christmas so make sure prices and promotions are visible and clearly communicated.

extension of the Logic LQD e-liquid range to include new

Q Add some sparkle to your sales. Add value through novelty products which will delight shoppers and drive trade up.

earlier in the year.

(20%). The update follows the

lower strength (6mg) options

SEPTEMBER 2018 | SLR

Off-Trade

News

Glaswegian craft brewer releases gluten-free beer Merchant City

Off-TradeNews

Brewing Company has expanded its core range of craft beers with the launch of a certified gluten-free beer. Described as “an easy-drinking light ale with a balanced biscuit malt flavour”,

GIVE YOUR SPORTS & ENERGY SALES A BOOST – P64 PREMIUM SPIRITS Plan ahead to profit, says Pernod Ricard

Pernod Ricard unwraps Christmas campaign

Session Ale (ABV 3.9%) is available from wholesalers in 500ml bottles with an RSP of £2.50. Alan Rimmer, Co-founder of the Glasgowbased Merchant

Pernod Ricard has poured £3m into its Christmas marketing budget in a bid get shoppers buying more premium spirits. The campaign focuses on Absolut, Jameson, Plymouth Gin and Beefeater Pink. It highlights the Jameson Irish Coffee; Absolut Porn Star Martini; Plymouth Gin & Tonic; and The Beefeater Pink & Tonic serves.

Pernod Ricard is calling on retailers to plan an eight-week Christmas campaign from November. The premium drinks company has identified that if every UK c-store took an additional £557 – an extra three bottles per week – in spirits sales in the eight weeks before Christmas, the channel would command the same market share as grocery. Chris Shead, Off-Trade Channel Director for Pernod Ricard UK, commented: “This is a huge opportunity for retailers and one they can get right by doing three things: ensure premium spirits get proportionately more shelf space than standard, increase basket spend by advertising cocktails in store, using our POS, and finally, ensure NPD is listed to excite consumers looking for new flavours and tastes.”

City Brewing Company, said: “As consumers continue to be health conscious it’s important that we are able to offer an alternative for people who may have an intolerance to barley or wheat but without compromising on taste. “However, because of our brewing process and flavourings most of our beers have a very low measurement of gluten anyway but consumers need the reassurance of the certification.”

BEER

Maltsmiths ad puts craft beer on box Maltsmiths has launched its first TV advert following the Heineken brand’s out-of-home and social campaign earlier this year. Highlighting the love the Maltsmiths have for what they do, the 30 second ad ‘When You Love What You Do’ aims to invite people into the craft beer category for the first time. The film positions Maltsmiths Lager as a crisp and flavourful beer for everyone to enjoy. It forms part of a £4.5m media spend for Maltsmiths in 2018. “We’re thrilled to launch our brand new Maltsmiths ad that really shows the passion behind the beer,” said Izabela Glodek, Brand Director at Heineken. “Maltsmiths is the perfect gateway beer for those who want to try craft but aren’t sure where to start and it plays a crucial part in attracting the huge 78% of beer drinkers who are yet to try craft. We are really proud of our crisp and flavourful beers, and hope our new ad will encourage more consumers to try craft.” The ad runs on TV throughout August and September, and on video-on-demand to October.

SLR | SEPTEMBER 2018

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Off-Trade

News

Nastro Azzurro’s new look Peroni Nastro Azzurro is getting a brand renovation, with a sleek new bottle design rolling out at the end of the year. Taking inspiration from the brand’s

WINE Major investment in South African brand

Kumala keeps it kolourful

history, new bottles will feature

Accolade Wines has unveiled a new campaign – ‘Keep it Kolourful’ – for its South African brand Kumala. A budget in excess of £1m marks the biggest investment in Kumala for over 10 years. Activity will take place from September to November this year across digital, social, on pack, instore and outdoor channels. With an estimated reach of 9.5m, the outdoor advertising will feature across key UK cities including Edinburgh. The brand undertook extensive research to discover what South

into an iconic style with

Africa and Kumala mean to consumers, and its findings underpin the campaign. Christopher Buckwell, Kumala Brand Manager, said ‘Keep it Kolourful’ was centred on a ‘pouring positivity’ message and aims to highlight the vibrancy and energy of South Africa. “We hope the Kumala campaign will bring some distinctive South African spirit to the UK market as the

category’s leading player,” he commented. Ade McKeon, Accolade Wines General Manager UK&I, said: “We’re committed to driving the market for the UK’s number one South African wine brand, championing the great heritage of winemaking in South Africa and bringing it to the attention of loyal and new consumers.” The brand is growing at 8.5% value year-on-year.

an engraved signature of founding father Giovanni Peroni. The Peroni logo has evolved references to the brand’s Roman provenance in a new hexagonal label on the bottle.

Mikkeller comes to UK Euroboozer has secured the exclusive UK distribution rights to Danish craft brewer Mikkeller’s four-strong range that includes the bizarrely-named Hair in the mailbox, Wood will fall down, I don’t have red shrimp and Stick a finger in the soil. All are available in Scotland via Euroboozer’s partner New Wave.

RTDs The public has spoken...

VK drinkers demand Watermelon variant Global Brands has unveiled Watermelon as the winner of a nationwide search to find a new flavour for its VK RTD. More than 33,000 flavours were suggested when the competition opened in June, with the four most popular put forward to a public vote. Watermelon saw off the likes of Violet and Wild Fruits, garnering over 19,000 of the 35,000 votes cast across social media and the VK website. The new Watermelon flavour is set to be released in February 2019. Jen Draper, Head of Marketing at Global Brands, said: “Fans of VK have spoken in their thousands and they want Watermelon. Pink drinks are hot right now and our consumers seem to think so too, plus Watermelon is set to be a key flavour trend in 2019. “However, it’s not just about the on-trend colour – the taste is so important for VK, and our in-house flavour development team has been working tirelessly to ensure the Watermelon flavour tastes as good as it looks! We can’t wait for consumers to get their hands on the new flavour.” The current VK range includes seven variants: Blue, Ice, Strawberry & Lime, Orange & Passion Fruit, Black Cherry, Tropical Fruits and Apple & Mango.

BEER

Windhoek Draught breezes into UK Morgenrot has added Windhoek Draught (ABV 4%) from Namibia Breweries to its world beer portfolio. Suitable for vegans, it is available in 24 x 33cl bottles with a list price of £24.50. Windhoek beers are made using only hops, malted barley and water plus a specially cultivated yeast that is filtered out before bottling. The launch is part of a summer of brand activation and events for the African beer, which has partnered with Save the Rhino International with the aim of raising £5,000 for its conservation efforts. The brand has always supported rhino conservation in Namibia, previously funding a Piper Cub plane to aid the fight against poaching.

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

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SEPTEMBER 2018 | SLR

News

Newstrade

Heat claims 4.3m readership Bauer Media Group is claiming

News& Magazines

that its Heat magazine now reaches around 4.3m people across all of its platforms, having last month published a special bumper 116-page issue to celebrate its 1,000th edition. As well as the magazine, Heat has an app, radio station, website and social platforms. A Heat spokesperson said: “Like the Queen and a cup of builder’s tea, Heat is a much-loved British institution – and one that has entertained millions of loyal readers over the years and is still

TAKE A POSITIVE APPROACH TOWARDS TOBACCO – P68 NEWSPAPERS Newsquest replaces struggling title with two new papers

Sun sets on Sunday Herald after 19 years Scottish weekly closed after almost two decades with a politically neutral replacement and a new pro-independence title launched within a week.

going strong, outperforming our competitors on a weekly basis.”

Paper has i on growth

The Sunday Herald has been closed by owners Newsquest after 19 years in circulation, with the final issue published on September 2. The ailing title, which enjoyed a brief spell of growth after backing Scottish independence during the Scottish referendum, will be replaced by two new titles: The Herald on Sunday and Sunday National. It is expected that the Herald on Sunday will remain politically neutral while the Sunday National

will pursue the pro-independence stance of the National, also owned by Newsquest. Callum Baird, Editor of the National, said that the role of the Sunday National would be to “make sure that the views of half of Scotland are represented on a Sunday morning”. Former Sunday Herald Editor and National launch Editor Richard Walker will edit the new Sunday National. Newsquest Scotland Managing Director Graham Morrison put

the decision to close the Sunday Herald down to the “highly competitive” nature of the industry. He said: “It has been clear for some time that Herald readers wanted a seven-day offering with closer alignment of the brand and the title’s editorial values on a Sunday. By launching The Herald on Sunday and extending the National title to seven days a week we are able to give our audience and advertisers a clearer and better choice.”

Sales of the i newspaper’s Saturday edition are up yearMAGAZINES

on-year following its relaunch

NEWSPAPERS

under the guise of iweekend in

Herald Assistant Editor joins The Times Scotland

TI Media welcomes sales success

David McCann, the Assistant Editor and Head of News at The Herald, is joining The Times Scotland this month as News Editor and Deputy to the Editor, Magnus Llewellin. McCann replaces Jeremy Watson, who is going back to writing but will still also be working for The Times Scotland on an occasional basis. Belfast-born McCann, 36, lives in Edinburgh and has a strong pedigree in Scottish print and digital news, having previously worked in senior positions at the Daily Record and, prior to that, the Edinburgh Evening News. Magnus Llewellin said: “We are delighted to have David on board. I had the pleasure of working with him at The Herald and, like everyone who has had any dealings with him, was hugely impressed. I am sure he will go on to do great things as we continue to develop and grow The Times in Scotland.” David McCann said: “I am thrilled to be joining The Times in Scotland. It is superb – both in print and online – and I look forward to working with a great team.”

TI Media has welcomed the latest set of ABC results for the Jan-Jun 2018 period which show strong growth in its home interest and lifestyle division, against a backdrop of new promotional strategies and brand investment by the company. Angie O’Farrell, Group Managing Director, lifestyle and women’s weeklies, said: “We are delighted that woman&home is the number one monthly lifestyle magazine on the newsstand where its sales have grown 1.3% on the period. “It is outperforming the market by a long way thanks to a brand refresh unveiled in the February issue. New editor Kath Brown has done a fantastic job.”

September last year. The new-look paper offered readers lengthier feature articles and up-weighted sections which seems to have gone done well with readers as sales are up 2.6% on sales figures to the end of July compared with the same period last year. Circulation figures for July 2018 sat at 212,425. The revamp did away with the “breathless pace” of predecessor the Saturday i and gave readers more feature articles and improved sections, said editor Oliver Duff at the time. This includes paid single copies, bought at the newsstand for example, and subscription sales, but not bulk sales, which last month were 52,034 – bringing the iweekend’s total circulation for July to 264,459.

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SLR | SEPTEMBER 2018

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Research Digest

SUMMER SEES ‘HIGHEST THREE-MONTH GROWTH IN FIVE YEARS’ The latest SRC-KPMG Scottish Retail Sales Monitor hails the best summer for retailers in half a decade.

he latest SRC-KPMG Scottish Retail Sales Monitor has confirmed most Scottish local retailers’ suspicions that this summer has been the best for many years. The July issue of the Monitor hails the previous three months as the highest sales growth period for five years. Total food sales in July increased 5.6% versus July 2017, when they had increased by 4.2%. This is the highest growth since July 2013 excluding Easter distortions, and above both the three-month average of 4.9% and the 12-month average of 4.3%. The three-month and 12-month averages are above the UK’s levels of 4.5% and 3.8% respectively. David Lonsdale, Director of the Scottish Retail Consortium, said: “Sales in July slipped back slightly from the previous month’s stellar performance, but still saw a credible real terms rise of 1.4%. Shoppers continued to enjoy the super summer weather with gin, ice, and electric fans all selling well.

“Food sales were particularly strong, with the highest July figures for five years. Consumers continued to buy food for picnics and barbeques, along with summer drinks. On a three-month basis, Food sales were also stronger in Scotland than in the UK overall. “With the European Championships in Glasgow and the Edinburgh Festival there are reasons to be optimistic for August’s sales. However, with interest rates rising, and household incomes continuing to be under strain, policy makers should continue to exercise caution when considering any further burdens on consumers.” Paul Martin, UK Head of Retail at KPMG, added: “Predictably, food and drink fuelled the majority of sales growth in July, with refreshing beverages and BBQ food the items of choice. July’s performance provides a reminder that retailers need more than warm weather and well-timed sporting events to succeed.”

HOT WEATHER ‘WRECKS ONLINE SALES’

ew stats from data intelligence company Loqate has highlighted the massive and consistent negative impact that hot weather has on online retail sales. The data shows that this summer’s heatwave “wreaked havoc on e-commerce retailers’ sales” as people chose to get outside and enjoy the sunshine, rather than spending their days browsing online. The hottest day of summer was July 27, which saw 1,719,820 transactions online, some 30,000 less than the coolest day of the summer, June 21. Additionally, compared to 2017, e-commerce shopping only saw a 1% increase from June-July as people got outside to enjoy the sun. David Green, MD at Loqate, commented: “The heatwave has had a significant impact on e-commerce sales, with consumers choosing to be outside enjoying the sunshine

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as opposed to shopping online. According to our data, July 27 was the hottest day of summer reaching highs of 22.5 Celsius. But while temperatures soared, online sales did not. The correlation between good weather and poor online sales is also evident in last summer’s data.

If we compare July 27 with the same date last year, the number of transactions is notably higher in 2017 (6% higher) thanks to cooler temperatures.” “The British Retail Consortium reported a similar trend in high street retailers, who have also seen a slowdown in sales growth.

HOTTEST DAYS: JUNE – JULY 2018 Date 27 Jul 26 Jul 23 Jul 24 Jul 02 Jul

Number of online transactions 1,719,820 1,762,580 1,851,720 1,823,470 2,014,110

Temperature (C) 22.5 22.2 21.9 20.7 20.5

COOLEST DAYS: JUNE – JULY 2018 Date 21 Jun 22 Jun 06 Jun 15 Jun 05 Jun 23 Jun

Number of online transactions 1,749,820 1,571,660 1,675,970 1,514,540 1,677,220 1,420,650

Temperature (C) 12.8 13.2 13.5 13.8 13.9 13.9

Inside Business

PLANT MILKS ‘ONE OF THE BIGGEST SHIFTS EVER’ Last month saw August 22 designated as ‘World Plant Milk Day’, marking the fact that millions of people across the world have turned away from dairy and towards plant-based alternatives. According to international food awareness organisation ProVeg, it is thought that the dairy alternatives industry is set to top $35bn by 2024, up from $8.2bn in 2014, with over 58% of people in the US now using or having tried plant milks. Meanwhile, there are now fewer than 9,500 dairy farms in the UK compared with 13,000 a decade ago. Predictions suggest there will only be around 5,000 by 2025. “Never before have we seen people across the world transition so quickly from one foodstuff to its alternatives in this way,” said Zephie Begolo, Head of Campaigns for ProVeg UK. Begolo says the change has been caused by “people are realising that plant milks outweigh dairy in terms of benefits for personal health, animal welfare and the environment”. The plant milks market, which is predicted to surpass $16bn this year alone, is booming thanks to a rapid increase in plantbased alternatives that are now available. “Consumers can now buy a huge variety of plant milks and dairy alternatives and they are more readily available than ever,” added Zephie. “And with big supermarkets, high street chains, retailers and food outlets buying into the trend, it seems it is unstoppable.” A number of brands across the United Kingdom, including Kellogg’s, Bella Italia, Handmade Burger Co, Pret a Manger and Starbucks joined World Plant Milk Day campaign with special promotions on their dairy-free food and beverages. SEPTEMBER 2018 | SLR

Inside Business

2 Minutes | Bruce Terry

Bruce Terry Following the massively successful relaunch of Kensitas Club at a significantly reduced RSP, JTI is now launching a new RYO version of Kensitas Club, as RYO Portfolio Brands Manager Bruce Terry tells SLR.

RELAUNCHING KENSITAS CLUB AT A MUCH LOWER RSP WAS A VERY BOLD MOVE. DID YOU KNOW IT WOULD WORK? As with any new launch, we did extensive research to identify consumer demand, and we were confident that due to the brand’s existing customer loyalty and the increased demand for Ultra Value tobacco brands among adult smokers in Scotland, the re-launch would help retailers drive incremental sales. FACTFILE Bruce Terry, RYO/ OTP Portfolio Brands Manager: “I have been part of the JTI family for nearly eight years. Through this time I have worked across multiple trading channels with roles in Sales, Trade Insight and Brand. I’m proud to have experienced a number of roles that are involved in the route to market process.”

THE RE-LAUNCH HAS BEEN A SUCCESS, THEN? WHAT HAS THE FEEDBACK FROM RETAILERS BEEN LIKE? It’s been hugely successful! It’s clear that the new low RSP and the introduction of a Superking variant has met consumer demand and in turn led to a huge uplift in retailer sales. The figures speak for themselves; Kensitas Club is now the fastest growing tobacco brand in Scotland1, seeing a 1019% increase in volume since January2. Feedback from retailers has also been overwhelmingly positive, with one store-owner in Edinburgh calling the relaunch an ‘overnight success’.

AND NOW YOU HAVE A NEW PRODUCT TO ADD TO THE KENSITAS CLUB RANGE? Indeed, we do! Last month we launched Kensitas Club’s first rolling tobacco offering, designed to allow retailers to capitalise on the growing value RYO segment – which

SLR | SEPTEMBER 2018

has gained 15% share since August 20153. Kensitas Club RYO will be available across all channels in 30g and 50g pouch formats.

ARE YOU HOPING FOR SIMILAR LEVELS OF SUCCESS IN THE RYO SUB-CATEGORY WITH THIS NEW LINE? We’re anticipating that this latest extension to the Kensitas Club portfolio will allow retailers to capitalise on the huge sales momentum of the re-launch earlier in the year, as well as tapping into Scotland’s growing RYO segment, that is now worth an estimated £189m4.

WILL THE PRICING BE SIMILARLY ULTRA-VALUE? Yes, the new Kensitas Club Rolling Tobacco is our lowestpriced offering in the category, launching at a competitive recommended price point of £10.90 for a 30g pouch and £17.80 for a 50g pouch. The Value rolling tobacco sector is growing 34% year-on-year5 in Scotland and we are sure that the launch will provide retailers with a competitive product to meet demand from existing adult smokers. We expect to see the Kensitas Club RYO variant continue to boost volume sales in a similar fashion to the success of the brand re-launch earlier this year. 1

Nielsen Market Track January 2018 to July 2018 (based on slope calculation)

Nielsen Market Track July 2018 vs. January 2018

Nielsen Market Track July 2018 vs. August 2015

Nielsen Market Track MAT July 2018

Nielsen Market Track MAT July 2018 vs. MAT July 2017 (Increase in Sales Value) (Value RYO in Scotland)

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Kantar Worldpanel | ThinkSmart

Inside Business

KANTAR HEIGHTENS SCOTTISH DATA FOCUS Grocery and convenience retail data giant Kantar Worldpanel has stepped up its commitment to the Scottish retail market with the appointment of a new senior lead for Scotland. SLR caught up with her to find out why data-led insight is set to be more important than ever. BY ANTONY BEGLEY

KANTAR’S PANELS

The winners and losers in the customer spend stakes.

he name Kantar Worldpanel will be familiar to most local retailers in Scotland, if only because of the number of times it is referenced as the source for many of the market stats that appear in magazines like SLR. The appointment of a new senior lead to the Kantar Scotland team, however, is set to make retailers much more familiar with the global consumer and retail research giant and, specifically, its work in Scotland. Lesley Ann Gray was recently named as the company’s new Strategic Insight Director for Scotland, joining from Border Biscuits where she was Brand and Innovation Director. With a 27-year-long career in the Scottish food and drink industry, it’s no surprise Kantar brought her on board to develop its presence north of the border. To be fair to Gray, she’d only been in post for 10 weeks when she spoke to SLR, but she was already getting to grips with the new role in what can only be called challenging times.

Kantar Worldpanel operates nine demographically representative panels to track the shopping habits of consumers across the country, recording how people shop and why. Several of these panels are directly relevant to the Scottish local retailing sector: Q TAKE HOME GROCERY 30,000 households – scanning everything they buy Q OUT OF HOME FOOD & DRINK 7,500 individuals – scanning everything they buy when eating out Q FOOD & DRINK CONSUMPTION 11,000 individuals – keeping a detailed diary of how they use the products they have bought Q WORLDPANEL PLUS 50,000 individuals – scanning receipts of all their purchases

“The Scottish retail landscape is in a state of flux,” she says. “With the implications of Brexit still unknown, it’s more important than ever for retailers and brands to understand their customers and ensure they are capitalising on opportunities and gaps in the market. I’m excited to begin helping Scottish brands and retailers adapt their offering to improve customer engagement and make informed decisions about their future.” But what will that entail for Gray as the face of Kantar in Scotland? She explains: “My job is to be the bridge between Scotland and our team of analysts in London. Through our various Panels [see boxout], we have access to vast amounts of very granular and powerful data. It’s my job to help those working in the Scottish food and drink industry to leverage that data and put a Scottish lens on it, so they can make more informed decisions.” These panels involve households or individuals tracking and logging everything they buy in terms of food and drink in retail

and foodservice, as well as what they then do with their purchases. Kantar claims the data generated is “the most accurate read of the British and Scottish grocery markets” and is instrumental in how the company’s clients inform the actions they take. These clients include all of the major multiples and discounters, as well as many of the world’s largest suppliers. Kantar also works with several public bodies in Scotland. “The next 12 months could be hugely transitional for the Scottish local retailing sector,” concludes Gray. “With the growth of the discounters, MUP, DRS, the Soft Drinks Levy, plastics, own-label and online sales expansion there’s so much for local retailers to contend with – so it’s vitally important that the important decisions they take are based on solid, robust data. That’s what we’re here for and I look forward to helping the sector flourish in the future.”

SCOTLAND v. GB Kantar data reveals the differences between Scottish shoppers and their GB counterparts: Scotland Great Britain

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PURCHASE FREQUENCY 294 267

SPEND PER SHOPPER £3,994 £3,648

ITEMS PER TRIP 9 10

SPEND PER TRIP £14.00 £15.28

SEPTEMBER 2018 | SLR

Inside Business

Store Profile | Hillfoot Garages, Bearsden

REBUILDING AN ICON Following a massive refit at the end of last year, Hillfoot Garages in Bearsden went on to win the Refit of the Year category at this year’s SLR Rewards. Here we take a closer look at the evolution of a local institution. BY ANTONY BEGLEY

The new look store, post-refit.

ention the words ‘Hillfoot Garages’ to anybody in Bearsden and they know exactly where you mean. Under the ownership of the entrepreneurial Potter family this petrol station-turned-convenience store became, over the course of several decades, something of an institution in this upmarket suburb to the north of the Glasgow. But after many long and successful years, the onset of increasingly fierce competition nearby persuaded Billy Potter that his time in local retailing was drawing to a close. A casual conversation with his manager Ian Gillespie then triggered a chain of events that quickly led to Ian putting together a funding package to buy the business and inject some fresh energy and creativity into building a sustainable future for the store. Ian explains: “I started working for the Potter family in and around the store when I was a boy, so I’ve been involved for over 30 28

SLR | SEPTEMBER 2018

years. I started managing it properly in my 20s and I’ve been involved all the way through with what has been a consistently successful business.” Four or five years ago, however, a chance conversation with Billy was to have a profound impact on Ian’s career. Billy had been worrying out loud one day about a new Asda that had opened nearby that was selling petrol, as well as a Tesco and a Waitrose. Ian recalls: “Billy was just musing about all the competition and how the time might be right to sell up. I think he just didn’t have the energy for the fight any more and his daughters were grown up and had no interest in joining the business – so I saw my chance and decided to have a look at buying it from him myself.” With a 30-year knowledge of the business, the banks were “surprisingly amenable” and Ian promptly bought the store in 2014. “I was confident that I was doing the right thing, but I was still a little nervous, particularly when

a new Sainsburys Express opened nearby during the negotiations!” Traditionally an unaffiliated independent store, the business had historically bought from a wide range of suppliers and wholesalers prior to Ian taking over. “We were getting deliveries from Booker and P&H, we were buying from various cash and carries and we were just buying whatever we thought we could sell from wherever was selling it cheapest,” says Ian. “We had a very, very loyal customer base that had kept the store successful for many, many years but we were starting to see the tide beginning to turn and I knew that we had to do something to reverse that trend and build a business that would have a sustainable future for the long term.” In a certain way, Ian admits to channelling the entrepreneurial spirit of Mrs Potter, Billy’s mum, who wasn’t afraid to take bold decisions, even when those around her were sceptical. “It was Mrs Potter who decided www.slrmag.co.uk

Hillfoot Garages, Bearsden | Store Profile

Owner Ian Gillespie.

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Inside Business

that the store should start selling cigarettes and sweets at the forecourt, which was truly innovative at the time. Remember, this was 40 years ago! And it was Mrs Potter who decided they should knock down the original building and build a brand-new convenience store in its place almost 30 years ago. She reckoned the future wasn’t in doing MOTs or car repairs but was instead in selling food and drink. The petrol companies basically laughed at her idea and told her she was off her head, but she was clearly a lady ahead of her time.” Despite Billy deciding to sell out, Ian maintains a business relationship with both him and his wife Fiona. They jointly acquired the Luss Village Store on the banks of Loch Lomond around six years ago, to add to the lease he and Billy took out on the Esso forecourt in nearby Hardgate around 10 years ago. Having acquired the Hillfoot business, Ian set about building an ambitious strategy for the future and one of the most important decisions he made was to join a symbol group. “I knew we needed the weight of a big name behind us and we needed access to a better range, particularly in important categories like fresh and chilled and own-label,” he says. “I also thought that having a recognised name above the door and a regular promotional package would help drive footfall and grow sales.” After much debate and research, Ian’s chosen partner was Spar which offered a package that he believed best suited his needs and the needs of his local customer base. The second major decision that Ian took was to commit to a full-scale refit of the store, a costly exercise. “It was obvious to me that we needed to refresh the store because it was definitely tired and outdated,” says Ian. “We could have tinkered with it and evolved it bit by bit, but it just made more sense to me to do it all in one go. So we saved up and bided our time until we were ready to push the button.” The refit was indeed a very major one, but the results were spectacular. So much so that the 2,100sq ft store won the Refit of the Year category at this year’s SLR Rewards. Ian was unsurprisingly delighted: “I was really pleased with how the refit went and it was exceptionally rewarding to see my dream come to life. It was the icing on the cake to pick up an SLR Reward for it too. It’s great for me and my team to get some recognition for all the work we’re doing.” The refit was “relatively pain-free”, partly because Ian granted Spar Scotland wholesaler CJ Lang just about free rein to implement its own planograms for each category. “We had a bit of enthusiastic debate about where SEPTEMBER 2018 | SLR

Inside Business

Store Profile | Hillfoot Garages, Bearsden

Fresh produce and fresh flowers are the first things that greet shoppers.

The range of high end Cook frozen ready meals has been a huge hit with Ian’s shoppers.

The store prides itself on a range of premium and more unusual wines.

SLR | SEPTEMBER 2018

each category should be sited in-store and how much space each category should have prior to the remerchandising but once the team arrived at the store I more or less let them do as they saw fit. I was sceptical about some of the recommendations and we ended up tweaking some fixtures after two or three weeks, but the vast majority of what they implemented has been successful.” The store officially reopened on November 26th last year although, astonishingly, the business continued trading throughout the refit. “I didn’t want to close the store if at all possible,” explains Ian. “Our shopfitters, Vertex, were brilliant at helping us. They basically stuck a wall of chillers from the door all the way to the till to block off most of the store to customers. That way we could keep trading and they could get the refit done in the background.” Ultimately the store was only fully closed for about eight hours, just enough time to refit the counter and put the tills and gantry in. The new store is literally unrecognisable from the one it replaced. A huge wall of fresh and chilled along with a big fresh flowers display is the first thing that greets customers through the door while, just beyond, an island of four large chest freezers offers a range of top-notch frozen ready meals from the Cook range. The grocery range was beefed up with largely premium and higher-end lines to appeal to the typically more affluent shopper base; think aged balsamic vinegar and artisan piccalilli rather than Pot Noodles and baked beans. A Costa coffee machine nestles beside a food-to-go hub while an extensive range of craft beers and rare, premium wines graces the back wall. There’s also a free-standing Porelli’s serveover ice cream unit and, most unusually of all, a very broad selection of gifting items merchandised in a specially designed ‘store within a store’ style in one corner of the shop floor. “If I was trying to describe what I wanted to achieve,” says Ian, “it was to create a store that I’d want to live close to if I was a customer. I was also conscious that our customer base was ageing so we needed to freshen things up to attract the next generation of shopper. Firstly, that meant a modern, bright, attractive store with a great range of core products in the biggest, fastest-growing and most important categories. Then it meant focusing on our USPs, the stuff that would bring people through the door. I didn’t want to just compete with Asda and Tesco on selling tins of beans and bags of crisps, so I focused on things that our shoppers couldn’t get anywhere else.” www.slrmag.co.uk

Hillfoot Garages, Bearsden | Store Profile

Gifting has traditionally been a big part of the store’s offer.

The Cook range is one of those key USPs, as Ian comments: “There’s one Cook store in the West End in Glasgow and one in Edinburgh, but as far as I’m aware we’re the only c-store in Scotland stocking the range and it has been hugely successful. The quality is outstanding and while they’re not the cheapest products – £7 or £8 for a meal for two – they do appeal to my customers and they’re proving a huge hit. “We’re also getting better at upselling and cross-category selling. I encourage our staff to talk to customers about how, for instance, the Chicken Alexander meal is fantastic poured over fresh pasta and washed down with a bottle of Italian wine. A £7 sale can quickly turn into a £20 sale.” Ian’s extensive ranges of craft beers and premium, rare wines also bring shoppers through the door. “We do get a lot of wine from Spar, but we still buy from Alexander Wines, a Scottish supplier, and Liberty Wines of London who specialise in old world wines,” he says. “So shoppers looking for Hardy’s or Echo Falls at great prices can find those wines, but somebody looking for a nice bottle of Chianti or an Australian Malbec they’ve never seen before can also find something too.” Ian happens to be an amateur wine enthusiast himself and tastes every wine the store stocks, so that he can offer sensible, www.slrmag.co.uk

informed advice when his customers are looking for suggestions. As for the store’s gifting section, Ian laughs when asked about it. “People always ask me why I do so many gifting items. The reason is that the store has always had a range of toys and novelty gifts as a way of making it a little different. Why do we still stock them and why have we increased the size and prominence of the section? It’s another USP, the lines sell and the margins are great. I need to sell four times the volume of Fresh & Chilled to make the same cash profit. My partner Jocelyn handles the buying for that part of the business and she does a great job. Trust me, it more than earns its space in the store.” Locally and regionally-sourced lines are another way that Ian creates a range that shoppers can’t find anywhere else. “We try very hard to use small local and Scottish suppliers where we can, and we are always on the lookout for new ones. We buy craft beers from Jaw Brew in Glasgow and source some other small Scottish brands through Dunns and Rimsdale. We use Inverawe for our fish, we get paté from Findlaters, we get our butcher meat from Dalduff and so on. The quality is great and our shoppers are happy to pay a little more for products with a bit of a story behind them.”

Inside Business

The refit has shifted a lot more focus onto food to go.

So, with months down the line since the refit, all seems rosy in the Hillfoot garden. “We’re pleased with trading since the refit,” says Ian. “Almost everything we’ve tried has worked and we’ve been lucky with the weather and the World Cup. The summer is traditionally a lot quieter for us because Bearsden goes on holiday, and it has indeed been a bit quieter but we’re pleased with the numbers since the turn of the year.” As for the future, Ian is looking to update the carwash and expand the Fresh & Chilled section even further to target the ‘meal for tonight’ shopping mission. He is also investigating the introduction of a home delivery service. “It’s an interesting and exciting period for us here,” concludes Ian. “The refit was a huge challenge but we’ve done it well and it has worked. Now we’re looking to keep developing and expanding our range of service and products. I’m always on the lookout for what’s next!” Ian’s achievement of taking a much-loved but tired business and injecting it with new life and passion is hugely admirable and it’s extremely encouraging to see an independent retailer thriving despite the attentions of an array of supermarkets within a few minutes’ drive. SEPTEMBER 2018 | SLR

Inside Business

ThinkSmart | Generation Z

GENERATION

A USER’S GUIDE

A lot has been said and written about Generation Z - but what exactly will this new generation mean for local retailers, and what can we do to engage with them? KAM Media Strategy & Insight Director Blake Gladman offers a practical user’s guide to Gen Z’ers.

f you search the internet there is a lot of opinion about Generation Z, some with facts and some without. One thing is for sure though, a lot of people are talking about them, and with good reason. In fact, a quick Google search shows 356 million search results for ‘Generation Z’ compared to 96 million for ‘Millennials’. So why are they so important? Put simply, they will shape the way we will shop, eat, drink and interact with brands, because technology will lead the way and it’s being driven by the influencers and no generation is more influential than Generation Z.

AUTHENTICITY

“Nurturing and maintaining authenticity is a sure fire way to gain credibility and loyalty from Generation Z.”

Authenticity is a key word for this generation 32

SLR | SEPTEMBER 2018

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Generation Z | ThinkSmart

and one with far reaching implications. Nurturing and maintaining authenticity is a sure fire way to gain credibility and loyalty from Generation Z. More so a lack of authenticity or worse – trying to fake it – is a one-way ticket to obscurity. One of the key drivers of authenticity is trust and Generation Z are smart to the ways of social media. It’s no longer enough for a brand to have a social profile that alludes to having a personality – they can see through this façade to the inevitable hordes of interns or chatbots that are actually doing the posting. Generation Z want the real you, warts and all. This is key – they know we live in a world that isn’t perfect so to see a retailer, manufacturer or celebrity that operates within a perfect world immediately rings alarms bells and gives off an aura of inauthenticity. The way to truly connect with Generation Z is to embrace the challenges you face, embrace the mistakes you make and to celebrate your successes with them. Just as a friend would do. Four out of five 18 to 24-year-olds say that a combination of friend recommendations and social media influence them to buy a particular product, compared to the rest who are influenced by the traditional combination of brand adverts and celebrity endorsements. Creating an authentic social media presence can help you to tap into the Gen Z market.

SOCIAL SHARING Furthermore, the rapid rise in social sharing and 24/7 news cycles is having a profound impact on how we digest information and to the extent in which ‘news’ is shaping our mindsets. This impact is being felt through the massive shift that is taking place within business and consumerism. A shift that is gaining momentum with each passing day. This is a shift in what it fundamentally means to be a ‘brand’ in today’s world. Specifically, how the generation fuelled by social media, and the generation that has grown up in a digital, omnipresent world, sees the brands of today.

Inside Business

It’s become a bit of a cliché to say that Generation Z are technology savvy, but when a generation grows up with a smartphone in their hand it’s hard to separate them. With many of them spending more than seven hours on their phone each day, it’s a wonder that they find time to do anything else. Except, when you consider that they communicate with each other, watch TV shows/films, listen to music, read the news, do work, order dinner and buy a coffee all on their phone, then it becomes a bit easier to understand. Being connected is just that, joined together physically and emotionally. These devices are no longer a tool that they pick up when they need to use it. They are an extension of their existence. Therefore, it’s no surprise that for this generation, if it didn’t happen on social media, or if a company doesn’t have an app or, god forbid, a decent website then in simple terms it doesn’t exist or resonate.

BACKLASH? Is there a backlash coming though? Two in three Gen Z’ers are currently worried that they are spending too much time being ‘connected’. We’ve already seen brands attempt to tap into this trend with social media detoxes and WiFi-free zones, and the rebirth of vinyl record sales suggests a desire to go back to basics. But brands need to find the right balance as, without a presence within their ‘connected’ world, you won’t exist enough to make a difference in their ‘real world’ – negotiating this tightrope is perhaps the key to long-term engagement and loyalty with Generation Z. KAM Media’s Generation Z report is the result of a research study speaking to 500 of the UK’s Generation Z between the ages of 18-24 to uncover the facts about what they do and, above, all what influences them to do it. To find out more about the report and its contents, visit www.kam-media.co.uk or contact Blake Gladman (blake@kam-media.co.uk).

CONFUSED ABOUT GENERATION Z? YOU’RE NOT ALONE... If you find yourself confused about precisely what Generation Z means, don’t panic as you’re not alone. Even Wikipedia seems uncertain. Here is it’s definition which is more an attempt at a description than an actual definition: Generation Z or Gen Z, also known by a number of other names, is the demographic cohort after the Millennials (Generation Y). Currently, there are numerous additional competing names used in connection with them in the media. There are no precise dates for when this cohort starts or ends, but demographers and researchers typically use the mid1990s to mid-2000s as starting birth years. Presently, there is little consensus regarding birth years. Most of Generation Z have used the Internet since a young age, and they are generally comfortable with technology and with interacting on social media.

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SEPTEMBER 2018 | SLR

WOODLANDSlocal

Inside Business

Woodlands Local | Monthly Update

REALITY BITES AT WOODLANDS AFTER RECORDBREAKING MONTH Hugely disappointingly, sales at Woodlands have fallen back to something approaching their more usual levels after our nearest competitor store reopened after a major refit â&#x20AC;&#x201C; with some harsh lessons for the team. BY ANTONY BEGLEY

SLR | SEPTEMBER 2018

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Monthly Update | Woodlands Local

e always knew that the record sales we were achieving over the last couple of months would hit the buffers when our nearest competitor store reopened after a major refit, but that doesn’t stop it being a painful experience all the same. We gave it our best shot to milk the opportunity for all it was worth and to be fair to the team at the store, the record sales figures for June and July suggest that they did a great job, but the re-opening of the other store complete with fantastic new refit was always going to spell trouble for us. Not only do we have our nearest competitor back up and trading, they’re also trading from what is to all intents and purposes a beautiful new store. We’ve often talked in SLR about the vital importance of continually investing in your store to keep ahead of the game so we have to take our hats off to our retail chums up the road for doing just that. But we’re also having to cope with the fact that Woodlands isn’t in a position financially to be able to up the ante with a refit of its own. The only crumb of solace we can find is that sales haven’t fallen back quite to the level they were at prior to the other store closing so we have perhaps retained at least some of the new custom we generated in that period. But if we’re being honest, we’ve probably let ourselves down a bit by not doing enough in those golden few months to persuade more of the new faces that came through the door to switch allegiance to us. Having said that, we’ve been talking to a lot of those new faces and it has become very clear from their feedback that location is the number one factor in them choosing one store over another. Given that the new store and our own offer a broadly similar range of services and products, there’s little reason for customers to pass one store to get to the other, reinforcing once more the massive importance of USPs. This problem could potentially get worse for us because the refitted store has now started offering hot food and food-to-go for the first time, offerings that used to be among Woodlands’ USPs. So it’s back to the drawing board once again; a drawing board that is showing plenty of signs of wear and tear after all these years!

TEAM WORK We go back to the drawing board however with what is effectively a new team built by our manager Kerry. She formally took up the promoted www.slrmag.co.uk

Inside Business

role last month and was handed all the responsibilities that go along with the title, including staffing. In that time she has quickly built a mostly new team and is extremely enthusiastic about them and their prospects. Our experiments in different management structures had yielded little in the way of positive results and only created confusion so the re-creation of a full-time manager’s position was intended to remove ambiguity and reporting issues. The new team Kerry has built are now clear on their roles and tasks, and she hopes to build them into a great unit, delivering higher standards across the board.

HITS KEEP COMING It wouldn’t be a month in Woodlands though without a series of challenges and August didn’t disappoint. A wave of illness caused major staffing issues in the middle of the month with one team member after the other coming down with the same problem. As we serve fresh food prepared on the premises any viral or bug type issue means that the staff have no choice but to avoid the place until they are free of symptoms. Needless to say, it caused huge operational difficulties and led to under-staffing on several shifts. This caused massive headaches around the day shifts, as these can be very busy with labour-intensive food-to-go. We also had our annual EHO visit which highlighted a number of small areas that required work, again causing a flurry of activity to resolve. While it wasn’t required by the EHO, we also decided to undertake a full-team re-training session. This ensured that the largely new team were fully up to speed with our hygiene policy and understood how important it is to the successful operation of the business.

LICENCE TO THRILL Last month also saw Kerry and I voluntarily undertake licensing training. This meant a full day out of the business but will allow Kerry to take over as our Designated Premises Manager. Small issues, but they take up time and cost money, as all retailers are more than fully aware. SEPTEMBER 2018 | SLR

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Inside Business

Woodlands Local | Soft Drinks Remerchandising

LESS IS MORE AS REDUCED RANGE DELIVERS 85% INCREASE IN GP While itâ&#x20AC;&#x2122;s difficult to strip out the effects of a long, hot summer and the temporary closure of our nearest competitor store, the remerchandising of our soft drinks fixture by Barr Soft Drinks a couple of months ago seems to have contributed to a huge growth in sales and GP. BY ANTONY BEGLEY

KEY DRIVERS The six consumer need states have been derived from three key drivers that AG Barr believes reflect changing consumer lifestyles, influences and needs in relation to buying and consuming soft drinks. They are: Q Health & Wellbeing Q Taste & Fun Q Lifestyle & Culture

SLR | SEPTEMBER 2018

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Inside Business

Soft Drinks Remerchandising | Woodlands Local

here’s no doubt that one of the hardest parts of analysing the success of anything we undertake in the store is stripping out all the external factors that might be affecting results – and that’s particularly challenging in one of the most significant bits of work we’ve done in the store by remerchandising the entire soft drinks fixture to the new planogram from Barr Soft Drinks. In an ideal world we would carry out new projects in complete isolation, however it’s effectively impossible in practical terms because there’s always so much else going on that can affect the results of any in-store trial. On this occasion, not only were we in the midst of an extremely rare extended period of very warm weather, we also had to factorin the effect of our nearest competitor store closing down for weeks for a major refit. Consequently, we would fully have expected to see an upturn in soft drinks sales, given as it’s probably the category most affected by weather. But even accounting for both of these issues, we’ve still come to the conclusion that the remerchandising has been a resounding success. Between January and July this year (the last full month’s sales we have available as SLR went to press), unit sales had increased by an astonishing 32.2%. That figure is impressive enough from a store that’s been on the site for decades, but it’s not half as impressive as the

increase in GP over the same period, a stonking 85.4% hike in the category. Good weather and reduced competition clearly helped, but it’s reasonable to assume that the remerchandising more than played its part too. The deeper you dig into the numbers the more it becomes clear that the remerchandising can actually be held responsible for a significant chunk of the increase in GP. Even though in the month immediately following the remerchandising unit sales volumes fell by almost 10%, the GP we made from selling fewer products actually held more or less firm. This clearly indicates that the re-ranging removed a lot of the higher volume but painfully low margin lines that were cluttering the shelves of the chiller. It’s been a mantra in retail for some time now but, in this instance, it absolutely seems that less is more. And just to prove that the decision to take this route was the right one, soft drinks sales the following month shot up by almost 1,000 units and GP shot up by 22.83% in a single month! These top line figures indicate clearly that the work has been a huge success. In the next issue we will take a closer and deeper look at the data that sits behind these numbers and analyse how each of the six key ‘need states’ [see panel] contributed to the overall growth of the category.

SOFT DRINKS SALES GROWTH IN NUMBERS:

32.2% increase in unit sales between Jan and Jul

85.4%

increase in GP between Jan and Jul

10%

fall in unit sales in month following remerchandising... ...BUT GP held steady, even with much reduced unit sales

1,000

units increase in sales the following month (July)... ...AND a

22.8% in GP in that month

WHAT DID WE CHANGE? As part of the remerchandising, we were following a new Barr Soft Drinks planogram built around six identifiable ‘need states’ that Barr’s has homed in on. The planogram has specifically highlighted sections, one for each need state, complete with shelf edge stripping to make the fixture bright, lively and easy to navigate around. The need states are as follows: Q Healthy Refreshment – Water and waterplus products perform an important, functional role Q Tasty Hydration – Low calorie products with the health benefits of water and the great taste of a carbonate Q Everyday Enjoyment – The backbone of the fixture needs a good range of great-tasting choices Q Adult Social – Indulgent treats and options for those that avoid alcohol Q Connecting Cultures – Vibrant section to tap into growing demand for exotic flavours Q On The Go – Nearly a third of purchases is an energy drink, so this section must offer the right range of products and flavour choices

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SEPTEMBER 2018 | SLR

Hotlines

Product News & Media Watch

Jacob’s Cracker Crisps Thins pladis This thinner and crispier version of the original Cracker Crisps format, which debuted in 2015, is available in 130g sharing bags (RSP £1.89), in three flavours – Mature Cheddar & Roasted Onion; Sea Salt & Cracked Black Pepper; and Thai Sweet Chilli. The launch will be boosted by POS and a sampling campaign. Online, digital and press activity is also

Dexters Micro Chews and Sour Splodgers Kervan Gida These two new additions to the Dexters £1 PMP range will be available from October in shelfready cases of 12. Micro Chews (170g) is strawberryflavoured while Sour Splodgers (150g) is described as “extremely sour”. Both lines are halal accredited. Micro Chews is gelatine free, Sour Splodgers is suitable for vegetarians.

KitKat Chunky Salted Caramel Fudge Nestlé KitKat Chunky joins the Salted Caramel party with this latest variant, available now at an RSP of 65p. The launch is supported by social media, sampling and PR activity. The new bar combines a crispy wafer finger with a salted caramel fudge flavoured topping, covered in milk chocolate. KitKat is rotating new flavours each year in a bid to excite young adults: last year’s New York Cheesecake had a 70% purchase intent with millennials.

SLR | SEPTEMBER 2018

Joyfills: a ‘brand-new biscuits platform’ from Mondelez Mondelez has revealed what it’s calling “a brandnew biscuits platform” with the launch of Joyfills – light, crispy bite-sized biscuits with a creamy filling that weigh 1g each. The range launches with four variants, two each under the Oreo and Cadbury brands: Q Joyfills Oreo – Sweet crispy wheat pillows with cocoa and vanilla soft filling Q Joyfills Oreo Choco Caramel Creme – Sweet crispy wheat pillows with cocoa and caramel soft filling Q Joyfills Cadbury Milk Chocolate Creme – Sweet crispy wheat pillows with a milk chocolate soft filling Q Joyfills Cadbury Choco Cookie Creme – Sweet crispy wheat and cookie pillows with a milk chocolate soft filling All are available to order now in cases of 8 x 90g packs with an RSP of £1.50. The launch is supported by a £4m multichannel marketing campaign, the first phase of which runs through until the end of October. Carly Sharpe, Joyfills Brand Manager, commented: “Testing has shown that consumers have a high purchase intent through our strong product offering and pack design, so we believe that this will be a real opportunity for retailers to drive incremental biscuit sales.”

Fibre One Cake Bars General Mills Cake Bars have been added to Fibre One’s guilt-free range in Triple Choc and Carrot Cake variants, both available now in boxes of 4 x 25g (RSP £2.89). Triple Choc layers cake, a creamy filling and a rich topping. Carrot Cake has a layer of spiced cake, cream cheese flavour filling, icing and chopped nuts. Both products honour the Fibre One USP with 90 calories per bar, and also contain at least 30% more fibre, 30% less fat and 30% less sugar than the average UK cake bar.

Winter and Sandwich mixes Florette

Barratt Halloween Bucket Tangerine Confectionery

Florette is to launch two new salad bags this autumn: Winter Mix and Sandwich Mix. Both will have an RSP of £1 per pack. Intended to freshen up winter meals, Winter Mix includes ruby chard, baby spinach, red baby lettuce, grated beetroot and carrot. Sandwich Mix features a blend of crunchy, mild and flat salad leaves that sit well in sandwiches and wraps, including batavia, green cos and spinach.

This 450g spooky SKU (RSP £3) includes Refresher Rolls, Dip Dabs, Mini Wham Bars, Mini Fruit Salad Bars, and individual 30g bags of Dolly Mix, Cola Bottles, and Shrimps and Bananas. It is aimed at shoppers stocking up for trick-or-treaters. Tangerine has also relaunched the 180g Barratt Halloween Bag (RSP £1) with new artwork and a mix of sweets including Dip Dab lollies, Fruit Salad lollies, mini Refresher rolls, and mini Wham bars.

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Product News & Media Watch Soft Jellies Wild Safari Mondelez

Hotlines



Tic Tac Intense Blue Ferrero

The latest Maynards Bassetts NPD consists of soft jellies with flavours of lemon, raspberry, orange, blackcurrant and lime in a variety of safari animal shapes. It is available now in cases of 12 x 160g packs, with an RSP of £1.32. The jellies are made with natural colours. Mondelez said soft jellies were the number one format for consumers looking to indulge in some “effortless munching”.

Ferrero has introduced new Intense Mint flavour to replace Mint Rush in the core Tic Tac line-up. It offers consumers an “extra-strong mint” taste, Ferrero says, to clearly differentiate it from the Fresh Mint variant. A £1m multi-channel campaign throughout September supports the launch. In-store display solutions including prefilled units are available to order from Ferrero’s dedicated trade website.

Hellmann’s Chilli Mayonnaise Unilever

Disney Kitchen Snack Pots Symington’s

Hellmann’s has teamed up with the Tabasco brand Pepper Sauce to create Hellmann’s Chilli Mayonnaise Fired by Tabasco Sauce, designed to tap into the growing hot sauce market. Aligning with the rest of its creamy sauce range, Hellmann’s Chilli Mayonnaise fired by Tabasco Sauce is available now in a 250ml squeezy bottle at an RSP of £1.99.

Symington’s has launched a new range of 50/50 wheat/Durum pasta pots (RSP £1) available in Creamy Cheese, Cheese & Tomato and Creamy Chicken flavours. The range provides a source of protein, contains wholegrain, is low in fat and contains no preservatives, artificial colours or flavours. It meets Disney UK’s European Nutritional guideline limits on sugar, salt, fats and portion sizes.

Pom-Bear bares all once more Pom Bear is back on TV with the return of the ‘Bare Bear Snack’ advert, which reminds audiences that Pom-Bear is free from gluten, artificial flavours, artificial colours and clothing. Part of a £1.7m media spend, this is the third consecutive year the brand has been on TV. Last year’s activity boosted sales by 8.5% in the weeks following the campaign.

Nutella lights up Christmas Nutella is targeting Christmas again this year, following the success of its 2017 festive campaign. This saw brand penetration up 0.6% for the four weeks up to December 31. Activity will include TV, video-on-demand, social media, in-store display solutions and limited-edition glow in the dark jars as part of a £600k spend in the latter half of 2018.

Saturday Mornings with Robinsons Squash brand Robinsons has become the official sponsor of James Martin’s Saturday Morning with its Cordials range. The ITV programme returns for its second series this month. Since launching last year, Robinsons Cordials has grown into a £4m brand. Britvic hopes the sponsorship deal will drive further growth in the run-up to Christmas.

Pepsi Taste Challenge returns Toblerone gifting pack Mondelez Toblerone has celebrated its 110th birthday with the launch of several new products in the run-up to Christmas, including a gifting pack (RSP £7.49) that features five 100g bars in a selection of milk, dark, fruit and nut and white flavours. It is available to order now in cases of six. The launch will be supported by “significant investment” in a Christmas-time campaign.

Kensitas Club Rolling Tobacco JTI JTI’s lowest-priced roll-your-own product is available now in cases of 5 x 50g pouches and cases of 5 x 30g pouches. These RSP at £17.80 and £10.90 respectively. The launch represents the first rolling tobacco under the Kensitas Club brand, which has been hugely successful since its relaunch earlier in the year.

Pepsi Max is putting its taste credentials on the line and going head to head with a certain other cola brand with the Pepsi Max Taste Challenge. The multi-million-pound campaign includes TV, out-of-home and digital advertising. It aims to reach 90% of the total UK population. The Taste Challenge takes place at 44 sampling locations across the UK.

The power of not advertising Vimto’s current £3m ‘anti-advertising’ advertising campaign entitled ‘I See Vimto In You’ has helped push the brand to a record worth of £81m. The campaign includes a TV spot as well as social media activity, digital advertising, sampling, snapchat lenses, personalised video-on demand and cinema advertising.

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

SEPTEMBER 2018 | SLR

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Fascia Guide

BETTER TOGETHER?

Perennially rising costs and ever-tougher competition mean that in today’s local retailing industry the choice is less about whether to join a symbol group or fascia than it is about which one to join. Without the backing of a major group it’s becoming all but impossible for many retailers to maintain a competitive offering. SLR takes a close look at some of the best options available.

et’s be honest, for many independent local retailers in Scotland these days the choice is less whether to join a fascia group or franchise and more about which one to join. Life as an unaffiliated independent is looking increasingly unsustainable for many as the costs of being in business just seem to keep growing by the week. The lure of becoming part of something bigger is an enticing one and is one of the few decisions that an unaffiliated retailer can make that is all but certain to improve the business. Access to much greater buying power and all the benefits that come with being part of a larger organisation can be the difference between profit and loss in today’s ultra-competitive market. Joining a symbol group or fascia doesn’t mean that retailers need to lose their independence – quite the opposite. While the different groups all have different criteria that members must meet in terms of buying commitments and compliance, the one thing they all share is commitment to allowing local retailers to retain their independent status, something that’s non-negotiable for most. But joining a group offers all the benefits of being part of a nationwide collective of likeminded retailers with access to big buying power and the many invaluable support mechanisms that membership of a symbol group brings. The attractiveness of that offer can be assessed by simply looking at the sheer number of stores that now belong to one symbol group or another. In 2002 around 22% of stores were members; that number is fast approaching the 50% mark today. One other point worth noting is that very, very few retailers decide to return to being unaffiliated after joining a group. They may subsequently switch symbols, but they don’t tend to go back to being unaffiliated once they’ve had a taste of what’s on offer as part of a bigger group. So whether you are considering joining one of these groups for the first time, or are considering moving from one to another, this guide will provide you with the key data you 40

SLR | SEPTEMBER 2018

need to make a fully informed decision as to which fascia is right for you. The great news is that the range of choices available has never been greater. Each partner has its own particular strengths, but they all offer buying power, a household name above the door and a comprehensive support network covering everything a retailer needs to remain competitive in today’s retail environment. Choosing a symbol group can seem an intimidating task. It is a big commitment, especially if you are already tied into a contract or faced with joining fees – whether this is in the form of an admin charge, buying shares or paying for signage or delivery. But there is no doubt it can pay huge dividends. How to decide which symbol group is right for you will ultimately depend on your shoppers and what they want you to offer them. It might come down to the kind of store standards you are prepared to meet and your ways of working. If, for example, you are simply looking for a way of running promotions effectively then you might want to consider joining a cash & carry-based symbol group where you would normally go into depot and pick up the goods yourself. The pros for retailers considering joining or switching symbol groups are numerous, not least because of the support a fascia can offer a retailer in every aspect of running their convenience store, from exclusive discounts and buying power to staff training, running a social media page and availability of new technologies. Being part of a symbol group gives you the backing and the knowledge, from promotions to posters and displays, along with the merchandising system and product knowledge to help make your business a success. Groups will send several reps and provide supplier contacts. They can offer an in-depth analysis of what you should stock, where you should stock it and how much you should be making. The support and advice that is given

regarding store development should soothe shop owners who are nervous of change, and groups may introduce their own recommended shopfitter to give you help with project planning and store layout. Many also have their own consultants who can do detailed reports on potential or increased turnover. These can be simple or very detailed, taking into account the demographic area around the shop and local competition. Sometimes there will be a fee, but it may be worth the cost as often it gives additional industry-specific information that will support any application. This information, when backed by the weight of a symbol brand, can add an influential supporting voice to any finance application. Retailers should ask themselves whether remaining unaffiliated is detrimental to their potential as a business. Whatever level you decide to go in at, it is best to do your research before determining which symbol group is right for you.

CONTENTS: P42 PREMIER P44 NISA P46 COSTCUTTER P48 LONDIS P50 BEST ONE P52 XTRA LOCAL P54 FAMILY SHOPPER P56 ONE STOP www.slrmag.co.uk

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BUILD A PREMIER PARTNERSHIP

With a selection of fascias to suit every store, TV advertising and the backing of Booker, the UK’s number one symbol group is the obvious choice to make.

remier is the UK’s number one symbol group with over 3,300 stores nationwide. The group is committed to delivering more profits for retailers and a better shopping experience for consumers. Premier has delivered double digit growth for twelve consecutive years. Premier continues to advertise on TV. Premier is advertised every day which will be seen over 100 million times. The TV advert features Premier’s famous Mega Deal promotions along with retailers to emphasise the local aspect of Premier Store. As well as this, retailers also benefit from a full promotional programme covering all categories of fresh, frozen, grocery and impulse to ensure great value for shoppers to drive footfall into stores. This market leading promotional package, along with own-label and price-mark-packs, really drives the value message to help Premier retailers grow their business. Premier works hard to ensure that retailers have the best choice of products to suit their individual store. This includes both Euro Shopper, Booker’s entry level exclusive own-brand and Happy Shopper, the mid-tier option. This is 42

SLR | SEPTEMBER 2018

complimented by working closely with branded suppliers to ensure the best choice of price marked packs so shoppers can clearly see the great value available. Backed by Booker, the UK’s leading food & drink wholesaler, Premier retailers can take advantage of delivery at cash & carry prices, as well as having the ease and convenience of shopping at any Booker branch. ‘Spend & Save,’ where retailers can save up to 4% on their non-tobacco purchases, is also popular with Premier members as this delivers real savings and adds to their bottom line. Premier does not operate any membership or joining fees and installs the fascia and imagery free of charge. A wide range of additional services such as recycling, energy savings, free Epos and drop shipment are also available that have been specifically created to add value and keep operating costs low for Premier members. The group continues to go from strength to strength and its relentless focus in increasing choice, lowering prices and improving service has helped Premier members deliver fantastic convenience stores. www.slrmag.co.uk

Shopper’s Favourite Symbol Retailer 2018 Shopper’s Favourite Community Retailer 2018 Shopper’s Favourite Convenience Retailer 2018

MORE FOOTFALL MORE CASH PROFIT It’s absolutely free to join us! • Free EPOS • Free delivery at cash and

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available • Free fascia and window imagery “Premier makes me more money by providing a fantastic choice of products, at great value prices so I can offer a great service to my shoppers that drives footfall.” Tony Mallaban, Premier Avon Gold Supermarket, Bristol.

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YOUR PARTNER OF CHOICE With a 40 year track record partnering some of the finest award-winning stores in Scotland, Nisa is your perfect partner for growth in an increasingly competitive and consolidated marketplace.

ith multi award-winning stores such as Ardeer Services, Greens of Markinch, Pinkie Farm Convenience Store and Giacopazzi’s Milnathort, to name a few, Nisa is the proven partner of choice for many market-leading, independently minded retailers in Scotland. We have worked tirelessly for more than 40 years to ensure we provide all the tools needed to compete against the ever-increasing competition in the convenience retail sector. Importantly, we don’t have any company owned stores, so don’t compete with our retail partners and don’t have restrictive loyalty levels that impact on margin and the ability to trade independently. In May 2018 the Co-op completed its acquisition of Nisa Retail Limited. The wholesale operation will provide an environment in which independent retailers can flourish. It brings enhanced buying capability, allowing Nisa Partners to trade their businesses in the way they choose, backed by competitive prices and promotions with access to a deeper range. Independent retailers have the option to operate under a choice of symbol fascias; Nisa Local, Nisa Extra and dual-branded whereby a partner can maintain their local identity whilst also benefiting from the strength of the Nisa brand. Alternatively, retailers can opt to trade under their own independent fascia. Nisa offers flexibility to retailers with their Store of the Future Evolution format which is a move towards a more modular development format, accommodating the individual demographic and shopping missions of every store, Nisa Abbey View in Dunfermline being one of the recent such developments. A complete retail support package is offered, which comprises a strong retail focussed team, an enhanced category management system, a staff training facility and a comprehensive marketing package incorporating

SLR | SEPTEMBER 2018

bespoke leaflets, personalised Nisa FM radio, point of sale material and national advertising. Excellent social media support is also provided with partners receiving assistance in running their own sites. And the corporate Nisa Retail Twitter account celebrates partner successes as well as offering industry news, trading advice and Nisa business updates. Nisa’s flexible model provides its retailers with an unbeatable breadth of range comprising over 13,000 SKUs. This is supported by Nisa’s awardwinning own-label range, Heritage. This provides retailers with more than 800 great quality products at affordable prices and includes numerous award-winning lines such as the Heritage wine range launched in 2017. Nisa retailers now also have access to a wide selection of Co-op’s high quality own-brand products across all categories. This is all delivered by Nisa’s industry-leading supply chain which retailers can trust, with an impressive 99.9% of deliveries made on the day and 95% successfully made on time. Nisa understands its retailers and their marketplace, enabling them to modify their offer to match the ‘local’ demographic and to create bespoke planograms and layouts within their individual sites. Through Nisa membership retailers can take advantage of the Retail Academy which provides a complete training solution to develop staff and help provide the best possible customer service. Retailers are offered a full support structure comprising of a strong field team covering Retail Development Managers and Regional Retail Managers, in addition to Fresh Food Development Managers and Store Development Managers who help further develop stores. And Nisa knows community involvement is key, and as such its retailers can support local good causes through Nisa’s Making a Difference Locally (MADL) charity, which has donated more than £10m to UK communities since its launch 10 years ago. Retailers can join the Nisa group through the partner website and can rely on superb support from the skilled in-house staff involved in the joining process. Complete the form on www.join-nisa.co.uk/contact-us or contact our development team on 0800 542 7490.

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O T D E T T I M M CO

S R E L I A T E R R OU SINCE 1977

“Nisa are world class when it comes to delivery. We’ve always enjoyed over 95% of deliveries arriving on time and in-full, so have never had issues with availability or stock. But when Nisa suggested that we switch to the new Nisa store of the future format we couldn’t have predicted what an impact it would have, it really has taken our business to the next level. The Nisa team remodelled the whole store to take advantage of extra space made possible by a reduction in size to our stock room. It was a big jump, but the move was made possible due to the reliability and frequency of Nisa’s deliveries, meaning we could easily

work around the smaller stock room and maximise our selling space. Nisa carefully worked out the range by identifying the main missions first, then location and category space. Only then was range selected. The promotions that Nisa provide are perfect for our customers and mean we can offer real value on the products our customers want to buy every day. The results have been a hit with the locals. The customers love what we’ve done here and they tell us that they feel the store is larger and more open than before, so we want to adopt the same format across our portfolio.”

Join the family... visit www.join-nisa.co.uk

Nisa’s phenomenal delivery service is unrivalled and better than we could ever have expected. Anish Keshwara, Nisa Local, Whittlesey

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DEVELOP AND THRIVE Committed to helping Scotland’s independent retailers thrive, Costcutter Supermarkets Group (CSG) is leveraging its new supply agreement with the Co-op to offer retailers an exceptional range and simplified commercial terms.

ur mission is to help independent retailers thrive, giving them the support they need to grow their business by meeting the changing needs of their local shoppers. Following our new wholesale supply agreement with the Co-op, which went live this spring, our retailers are even better placed to meet the needs of their local shoppers with an improved range, offer and delivery service with over 13,000 lines available. The Co-op own brand range is now rolling out and will eventually offer 2,000 SKUs. And complementing all of this is our direct to store facility, which allows retailers to source local and specialist products. In conjunction with our new supply deal, we’ve also simplified our commercial terms and CSG retailers can now benefit from the most transparent and easy to understand terms in the market, boosted by a rebate scheme that cannot be bettered. We’ve returned to our no levy, no surcharge model, backed by competitive bench-marked pricing, so our retailers can clearly understand the costs to their business. And our new rebate scheme rewards their purchasing, offering up to 6% rebate every six weeks. Last year, following the most in-depth study of shoppers in our 30-year history, we launched our unique Shopper First Programme; a transformation programme that brings together shopper insights and sales-driving range initiatives, along with new brand and store design. Every retailer has been provided with detailed shopper profile information for their store, including details of our five core shopper personas. Armed with this detailed insight, our retailers can better understand their potential local shoppers and use

SLR | SEPTEMBER 2018

this to develop a truly local offer that attracts new shoppers into their store. Combined with the new Co-op relationship, our retailers will be better placed to respond to key shopper missions, especially when it comes to the all-important fresh food and food-to-go categories. Our new Costcutter brand and store design – which has been created to connect with today’s shoppers, stand out from the crowd and transform the in-store experience – has already been rolled out to dozens of stores. The fully flexible modular approach allows retailers to invest at a pace that suits their individual needs and focus on the key shopper missions. This new look Costcutter sits alongside the Mace fascia, so retailers can select the right brand for their store; all underpinned by shopper insights. Soon we will also be adding a Co-op franchise offer to our store portfolio. Already successfully trialled at one of our companyowned stores, it will provide our retailers with an alternative brand to attract shoppers, while allowing the store owner to take a step back from the day-to-day running of the store, as their team will benefit from the ‘by the book’ store management that Co-op will provide. By putting the needs of shoppers first, we are providing our retailers with the ability to meet changing shopper expectations and buying habits, delivered through fresh, modern store brands that engage with shoppers and help them to continue to grow their business.

www.slrmag.co.uk

Helping you grow your business by putting shoppers first

Are you looking for a partner that will work with you to grow your business to its full potential? Look at what Costcutter can offer you! Fresh, new store brand Right range for your store Support from a team of experts Great promotional package Cutting edge technology solutions Great rebates - earn up to 6%

Our UNIQUE shopper insights drive new footfall AND increase sales with existing shoppers

Give us a call:

01904 232 505 l Come and meet the team l Let us show you our stores www.costcuttersupermarketsgroup.com

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Fascia Guide

MAKE MORE AND SAVE MORE WITH LONDIS

Free membership, award-winning fresh and own-brand ranges, a dedicated support team and free promotional material are just some of the reasons your store should join one of the UK’s fastest-growing symbol groups.

ith over 1,900 members across the UK, Londis is one of the fastest growing symbol groups in the sector. Backed by the UK’s largest wholesaler Booker Group, this guarantees unrivalled buying power, lower costs and the best promotional package in the sector with minimum PORs of 20% on core deals. We operate a zero cost model and work in partnership with our retailers to develop their business. As well as the strength of a nationally recognised brand, Londis supports retailers with better pricing, award winning ranges, market leading promotions, store development advice and a superb supply chain service to help them compete and succeed in today’s rapidly expanding convenience market.

The benefits of the Londis offer include: Q Free Membership Q Competitive cost of goods Q Loyalty discounts of up to 4% on all purchases (Excludes Tobacco) Q Award winning Fresh range with over 1,250 lines. Q Award winning own brand ranges Euro Shopper, Happy Shopper and Farm Fresh Q A best in class online web ordering system (Londis Webshop) Q Market leading promotions every 4 weeks Q Free Promotion Leaflets and FREE store point of sale support Q Support from our dedicated Store Development and Retail Development teams Q Tri Temperature fleet delivering all your ambient, fresh and frozen needs on one delivery Q A best in class forecourt package with a dedicated forecourt team Q Free Membership of the ACS

Londis is a flexible symbol partner that has a fully delivered service and support package to suit ambitious independent Scottish retailers offering true value with the right range of products at the right prices. We provide an industry leading fresh offer with over 1,250 lines, including fresh foodto-go, fresh produce ranges and meal-for-tonight solutions. Combine this with smart planning, local area knowledge, range optimisation and the symbol group’s expertise in merchandising, and Londis has the package to suit any store. We are committed to helping our retailers Make More and Save More and continue to focus on delivering Better Choice, Price and Service for our customers and supporting them to grow their business. 48

SLR | SEPTEMBER 2018

www.slrmag.co.uk

“

There’s a real focus on forecourts here at Londis. Their dedicated forecourt team really understand the business and provide solutions that help us stay ahead of the game.

Join Londis today and watch your profits grow

”

- 00% Cost Free model - Earn up to 4% discount* - Award winning Own Brand & Fresh range - Dedicated Forecourt Development Team

Brian McCaughey Londis Inveraray Bringing our new branding to you with a click. Visit our 360 Virtual Tour at : http://360.skyeyeplus.co.uk/files/LondisLeeds/

Call us on 0808 178 8644 or visit joinlondis.co.uk * Terms and Conditions apply.

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Fascia Guide

BEST IN CLASS

With promotions to match the multiples, an award-winning ownlabel range, a dedicated support network and ongoing store development, it’s little wonder best-one retailers saw sales growth of 27% last year.

ith over 200 stores across Scotland best-one is one of the largest symbol operators in the country giving retailers the scale and expertise to compete with multiple retailers and discounters. And with sales growing at 27% in the last year, it’s little wonder bestone is becoming the symbol of choice for retailers wishing to take their stores to the next level. Sales are soaring with double-digit growth in all major convenience categories from alcohol to tobacco, as the group continues its march to become the best wholesale partner for retailers. Underpinning this impressive growth is the fact that best-one recognises that all retailers are different, and best-one works with members on an individual basis to advise on the right format for their store with bespoke joint business plans. Among the many benefits of joining best-one are:

CATEGORY DEVELOPMENT Over the past year. best-one has introduced refined planograms across key convenience categories to help members reduce the number of lines on-shelf and focus on the bestsellers across branded and best-one own label ranges. Members now have access to a wide range of planograms, shopper insight factsheets and must stock lines both online and in print.

PROMOTIONAL ARCHITECTURE Members receive five unbeatable WOW Deals and 15 Must Feature promotions every month with case allocations to ensure members have availability throughout the promotional period and individualised store leaflets to drive footfall and loyalty. Shoppers now expect to see promotions that match the multiple retailers and best-one delivers on this with promotions across impulse, chilled and grocery.

FIELD SUPPORT best-one prides itself on its continued support it delivers to members. Each member has a dedicated representative that draws up a joint business plan with members and regularly reviews this on their monthly call. This business plan is based on actual sales data and benchmarked against the store’s potential as defined by its shopper demographic. New members receive a six-week period of ‘Hypercare’ where they are visited weekly to ensure that the transition to best-one is as smooth as possible and that standards and sales are optimised.

STORE DEVELOPMENT With a variety of formats available based on shopper profiles and their missions, best-one works with members to deliver the best possible solution for their communities. From simple food-to-go solutions to full serve-over meal counters and premium coffee stations, best-one can help remodel, refit and revitalise your store. Central Pick operation gives members longer shelf life on over 1,500 chilled and fresh products, with up to three deliveries per week.

COMPETITIVE OWN LABEL Bets-one own label products give retailers the reassurance of awardwinning products while delivering increased value to shoppers. With over 500 products in the range coving all major categories, sales of best-one own label are growing by over 15%. As a reward for meeting shopper needs, best-one members also have the opportunity to earn up to 5% rebate on their purchases through the My Rewards rebate scheme. Importantly, many members have used their future earnings from My Rewards to fund refits or expansion rather than tying up capital and cash flow.

For more information, contact our Scottish Customer Contact Centre in Perth on 01738 646 666, your local Batleys depot manager or log onto best-one.co.uk 50

SLR | SEPTEMBER 2018

www.slrmag.co.uk

Fascia Guide

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XTRA SPECIAL XTRA LOCAL Stand out from the crowd and keep your own fascia while also benefitting from the scale and expertise of one of the country’s largest wholesale-run promotional clubs.

WHAT MAKES YOUR FRANCHISE STAND OUT FROM THE REST? With over 4000 stores across the UK, Xtra Local is one of the largest wholesale run promotional clubs in country giving retailers the scale and expertise to compete with multiple retailers and discounters while retaining their independence. Retailers can retain their own fascia, community standing and unique proposition while still offering fantastic shopper promotions on a day to day basis.

HOW DO YOU PLAN TO DEVELOP YOUR SYMBOL, FRANCHISE AND FASCIA OPERATIONS TO ATTRACT MORE INDEPENDENT RETAILERS AND IMPROVE STORE STANDARDS? Many independent do not have to sacrifice their independence in order to prosper. Although some want to make the transition to a fully-fledged symbol operator like best-one, this route is not for everyone and Xtra Local is the perfect answer with its superb promotional activities and flexibility. Xtra Local Offers speak for themselves - such as half price on Tetley Tea PM £2.65 now £1.32 and 10-pack of 330ml Coke Zero and Diet Coke at only £3.50 in September – and retailers, who also get discounted prices in depot really embrace these footfall-driving consumer offers. Each depot has a dedicated representative who talks retailers through the Xtra Local proposition and its membership benefits and merchandising advice and a full POS kit every promotional period ensures promotions are brought to life instore. Each member is also invited to the Retail Development Seminars where they her presentations from Bestway and its supplier partners on how to increase store standards and meet shopper needs.

3 CONTACT DETAILS POST: Xtra Local, 2 Abbey Road London NW10 7BW EMAIL: enquiries@ xtralocal.co.uk WEB: xtralocal.co.uk PERSONNEL Q Paul Adams, Head of Brand Q Ross Halliday, Head of Club & Symbol Operations

SLR | SEPTEMBER 2018

WHAT ARE THE BIGGEST SALES OPPORTUNITIES FOR YOUR SYMBOL, FRANCHISE AND FASCIA RETAILERS AND HOW ARE YOU HELPING THEM RECOGNISE THESE? Xtra Local sales are up 7,7% over the past year with chilled and fresh and food to go growth areas for shoppers and also for Xtra Local retailers. Members now have access to an unparalleled depot range of fresh and chilled products, but Xtra Local’s main aim is to be the best wholesale driven promotional club in the UK offering big brands for less. The Trading team works with suppliers on a daily basis to provide retailers with the best possible deals while the field sales team help retailers execute promotions in-store. Category development plays a large part in the Xtra Local offer and BDEs help retailers refine ranges and remerchandise stores to make each square foot of space profitable through impartial category advice and bespoke planograms based on what sells and the store’s shopper demographics.

WHAT DEALS DO YOU OFFER YOUR FRANCHISEES? As primarily a Cash and Carry promotional club, Xtra Local members receive a monthly IMPACT brochure detailing all promotions on offer and discounted prices on a vast array of products in depot. In addition, members receive an exclusive two week buying in period prior to promotions going live so they can plan their offers and maximise stock availability and profitability. Interested retailers should contact their local Bestway or Batleys depot manager.

www.slrmag.co.uk

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Fascia Guide

KEEP IT IN THE FAMILY

The strength of a symbol combined with a discounter’s value gives Family Shopper a fantastic edge for independent retailers keen to grow their sales and profits.

amily Shopper is a discount format for independent retailers that brings together the strength of symbol retailing with the great value available in the discount channel. It has been specifically developed to help independent retailers capture the growing sales and profits from the discount sector. The unique discount format provides retailers with everything that shoppers would expect from a convenience store including chilled, alcohol, grocery and tobacco along with services such as Lotto and Paypoint. This is then combined with the best of the discounters covering a fantastic range of £1 non-food items such as stationery, kitchen utensils and party accessories, with a broad seasonal offering and a frozen section. All Family Shopper stores offer a simplified range that removes duplication. Also merchandising in full trays makes the format easy to operate while minimising back stock and easing cash flow. Family Shopper retailers can take advantage of ‘Spend & Save’ where retailers can earn up to 5% discount on their non-tobacco purchases, along with delivery at cash & carry prices, ordering on line and having the ease and convenience of shopping at branches. This helps to maintain the exceptional availability which in turn offers better customer service. Family Shopper does not operate any membership or joining fees and

SLR | SEPTEMBER 2018

installs the fascia and imagery free of charge. A wide range of additional services such as recycling, energy savings, free Epos and drop shipment are also available that have been specifically created to add value and keep costs low. The group continues to attract interest from independent retailers nationwide. By continuing to focus on choice, price and service, the group remains committed to helping Family Shopper retailers grow their sales and profits.

www.slrmag.co.uk

Unique discount format Simple to run & operate High cash profit

â&#x20AC;&#x153;I love the simplicity of operating a Family Shopper. It offers my shoppers the best of convenience in a discount format, where they really can get bargains everyday. Having a rationalised range, that still offers choice at low prices, means I run an efficient store and eases my cash flow. Plus the Booker team supports you every step of the way.â&#x20AC;? Mr Kumar, Glynneath.

Simply building sales & profits for you Call Family Shopper today:

01933 371757

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Fascia Guide

TAKE ADVANTAGE OF ONE STOP’S SCALE AND EXPERTISE One Stop offers independent retailers in Scotland the ideal opportunity to grow their businesses with a proven, highly successful franchise model that allows them to stand out from the traditional symbol groups.

ONE STOP’S MISSION IS SIMPLE. TO CREATE AND SUPPORT THRIVING BUSINESSES AT THE HEART OF THEIR COMMUNITIES Trading as a successful convenience business for over 20 years. We currently operate over 900 stores throughout England, Scotland and Wales. Twenty per cent of these are franchises, where we work in partnership with existing convenience retailers to help them reach their full potential.

EXPERTISE YOU CAN COUNT ON Our retail experience is the major aspect that makes us stand out from traditional symbol groups, which are predominantly wholesale-driven. We base our franchise model on the groups proposition we run successfully in our company estate, giving franchisees a proven model to base their business on. Our years of experience means we’ve refined how we run our stores, and franchisees benefit straight away from our simple and efficient ways of working and our technology that makes this possible. If you speak to our franchisees they will tell you that our systems and processes save them valuable time, so that they’re able to focus on serving their customers, growing their profitable business, developing their teams and most importantly, spending more time with their family. Our model is built around four major principles: 1. Better sales, bigger profits Q We deliver a competitive margin of between 18-25% dependent on a store’s mix. Q Market-leading meal deals – 3 for £3 lunchtime deal and 2 for £4 evening deal. Q Continued price comparison to ensure the prices set stay competitive. Q Brand-new Own Label range featuring over 450 lines – better quality, bigger pack sizes at lower prices.

SLR | SEPTEMBER 2018

2. Investing in a fresh new look for your store Q We invest up to £50,000 in a store’s look and feel through a refit package which includes a two-lane EPOS and back office system, store design, fascia and fixtures and fittings – all project managed. 3. A simpler way of retailing Q Our easy-to-use systems and proven ways of working take the hard work out of the day-to-day running of a store. So our franchisees have more time to focus on their customers and team. Q Extensive range reset programme in which every category is reviewed once a year, with Chilled and Fresh having two due to its more seasonal nature. This ensures that our franchisees are getting the best return from the space they have, by stocking the right range at the right time, to meet their customers’ everchanging needs. 4. A partnership built for success Q Our franchisees start off on the right foot, with an experienced former store manager in-store training you and your team for a whole week. Q A dedicated Business Development Manager visits every four weeks, helping franchisees to grow their sales and margins, not sell boxes. Q We’re fully committed to working with our franchisees to help their stores succeed. Which is why our BDMs and Support Team are on hand seven days a week, providing continued support whenever it’s needed.

CONTINUED GROWTH As a franchisee you have the entire One Stop business behind you, working hard to improve every aspect of your store and – as we evolve our look and feel, offer, systems and support – you will continue to benefit directly. As we’re co-invested, it’s our priority to ensure your sales and profit continue to grow year-on-year, and we do this through our model and unprecedented support.

CRITERIA You’ll sign up to a five-year agreement and commit to store standards and core range compliance. In return, you’ll see your business transformed! So, do you match our criteria? Q Ideally an established retail operator in England, Wales or the central belt of Scotland. Q Existing c-store, CTN+ or Post Office wanting to migrate to convenience, or have a property that lends itself to convenience (will work with cold starts and new developments). Q Weekly turnover of at least £10,000 (excluding services). Q Sales area of between 1,000sq ft and 3,000sq ft If less you must have the ability to expand. Q Have a current alcohol licence or are willing to obtain one. Q Prepared to operate the minimum trading hours of 7am to 9pm (Mon to Sun).

Membership fees: maximum £92 per week; option to pay for all upfront.

www.slrmag.co.uk

2016

WINNER FRANCHISE GROUP OF THE YEAR

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Big Night In

More and more shoppers want healthier products but aren’t prepared to sacrifice taste, so are reformulated lines the key to unlocking bigger sales around the indulgent Big Night In occasion?

here’s only one thing better than a big night out for many Scottish consumers – and that’s a Big Night In. With so many great sporting or cultural events, the massive growth of Netflix and other streaming services and that great British fascination with bingewatching box sets, there are more reasons than ever for friends and family to gather for a night in. According to research from Mars Wrigley, 47% of consumers are spending less money on out-of-home entertainment and 50% are eating out less. That of course presents local retailers with a wonderful sales opportunity that cuts across most of the key convenience categories from beer and confectionery to crisps and soft drinks, and a whole lot more besides. SLR looks at some of the key categories and picks out some great products and promotions to get the tills ringing this autumn.

BEER One category sure to be found on most Scottish big nights in is beer and the beer of choice for many will be the Scottish icon that is Tennent’s Lager. The brand is available in a number of larger format pack sizes ideal for the sharing Big Night In occasion, including the popular 8 x 440ml pack format. Tennent’s is set to boost sales of that particular pack with the launch later this month of a new promotion that gives shoppers the opportunity to win one of 10 luxury fridges. Even better, the fridges will be delivered chock full of Tennent’s Lager – perfect for a Big Night In. 58

SLR | SEPTEMBER 2018

Tennent’s drinkers simply need to purchase a promotional 8-pack before entering a code from the base of their can at tennents.com/ win to find out instantly if they’ve won. Nine fridges will be won during the promotional period, with the 10th and final fridge up for grabs through a free prize draw at the end of the promotional period. The promotion launches on September 24 and closes on January 20. Promotional packs will be available across independent retailers in Scotland.

CHOCOLATE As the biggest food and drink category in convenience and the most impulsive, confectionery is a must for a good night in. Susan Nash, Trade Communications Manager at Mondelez International, comments: “Evening snacking is worth over £6.5bn and is growing [Kantar, Sep 2016]. Chocolate is still the number one choice for those settling down for a night in with friends and loved ones, followed by candy, biscuits and crisps – so there are plenty of opportunities for crosscategory selling to create the perfect night in. What’s more, 52% of all confectionery occasions take place with other people present, so having a range of sharing formats is key to maximising this opportunity.” Nash says tablets play a big role in the Big Night In trend and are in growth (up

2.4% YTD). “As category leader [IRI, Jan 2018], Mondelez is driving growth through its Cadbury, Cadbury Dairy Milk and Green & Black’s brands.” In spring, the company launched Green & Black’s Velvet Fruits, meaning chocolate lovers can now enjoy a bitesize product from the brand in three flavours: raspberry, orange and blueberry. At the same time, the company introduced new size £1 promotional price-marked packs within its chocolate bags range, helping retailers to improve price perception among their shoppers and increase speed of sales and customer trust. The new £1 95g promotional PMPs are available across some of its bestselling bags: Cadbury Dairy Milk Giant Buttons, Cadbury Dairy Milk Caramel Nibbles, Cadbury Twirl Bites, Cadbury Bitsa Wispa and Terry’s Chocolate Orange Minis. Another Mondelez brand partnership headed into bitesize in February; Cadbury and Oreo launched Cadbury Oreo Bites, which include small Cadbury bitesize pieces filled with a creamy and crunchy Oreo filling, building on the winning Cadbury and Oreo power co-brand which continues to grow (+25%) and is worth £35m [IRI, Dec 2017].

SOFT DRINKS The way to drive soft drinks sales as part of the Big Night In is simply to stock the top-performing brands, www.slrmag.co.uk

WHO ’S THE COOLEST SHOPKEEPER IN TOWN? WELL YOU WILL BE WHEN YOU’RE GIVING YOUR CUSTOMERS THE CHANCE TO WIN A LUXURY FRIDGE FULL OF TENNENT’S LAGER! AVAILABLE THIS OCTOBER.

TENNENTS.COM TENNENT’S AND THE RED T ARE REGISTERED TRADEMARKS OF C&C GROUP PLC.

AVAILABLE IN CONVENIENCE RETAILERS ACROSS SCOTLAND.

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Big Night In

according to Adrian Troy, Marketing Director at Barr Soft Drinks. “Brands such as Irn-Bru, Rubicon, and the Barr flavours range provide the choice, quality and value to serve the Big Night In market,” he says. “Larger format take home products are hugely important as they are highervalue items which encourage footfall and loyalty. Retailers should ensure they stock sharing size bottles of trusted, wellloved soft drinks brands to drive purchase and restock regularly, as availability is key.” With 75% of purchase decisions made at fixture, sharing-sized bottles should be dualsited with other Big Night In essentials to create a range of eye-catching deals including PMPs and multi-buys, advises Troy. “Value is a key priority for shoppers and an off-fixture branded display with complementary items e.g. soft drinks, crisps and snacks featuring a cross-category promotional deal will encourage increased basket spend”, he comments. “Shoppers are also increasingly looking for greater choice at the fixture and retailers should ensure that their Big Night In offering includes a good choice of low and zero sugar variants to cater for everyone’s needs. “Consumers are not prepared to compromise on taste and a growing number are looking for low and zero calorie options featuring the full-on flavour they get from regular products such as Irn-Bru Xtra.” Ed Jones, Senior Customer Marketing Manager at Vimto Soft Drinks, agrees that the health agenda is helping to shape the category, but that taste remains the key driver. He comments: “Shoppers aren’t just looking for any old drink to serve when hosting friends and family at home, they’re conscious of what they are putting in their bodies. Retailers can capitalise on this with brands like Vimto that offer no added sugar variants. Stocking both low and no added sugar drinks, as well as those with sugar allows consumers to have the choice whether to pay slightly more for a full-sugar version or less for a healthier version. “But while health is important, taste remains at the forefront of the category. There is an ever-growing appetite for more exotic flavours, and 61% of teens and 50% of mums like to try new drinks [IRI, Aug 2018].” Jones suggests that Vimto and Vimto Remix 2-ltr formats are must-stocks for Big Night In occasion. Trystan Farnworth, Commercial Director, Convenience & Impulse at Britvic, asks 60

SLR | SEPTEMBER 2018

BNI – TRENDS TO WATCH As in many other categories in convenience, the key trends to looks out for when it comes to building a solid range to meet the demands of modern shoppers include:

HEALTHIER EATING & DRINKING The growth in demand for products seen as healthier has been a major trend in recent years, with shoppers seeking out products that are lower in sugar, calories, alcohol, saturated fats and artificial additives. Even the indulgent Big Night In is not to immune to the development, so stocking a range of options could help unlock sales growth.

NO SACRIFICE ON TASTE While health is very important to shoppers, taste remains the number one driver. Shoppers may indeed be looking for healthier options but they are not prepared to sacrifice on taste. Fortunately, a lot of the latest NPD in relevant Big Night In categories has succeeded in squaring the circle of improving the health credentials of new or reformulated lines but without losing any of the taste that is so important to consumers.

retailers not to miss the multi-pack opportunity. He says: “Multipack carbonate cans such as Pepsi, 7Up and Tango are perfect for sharing and these brands all offer consumers a choice in formats for different occasions. “Carbonated and adult soft drinks such as J2O are the ideal soft drinks when having people over. Larger sharing formats, such as 1.5-ltr or 2-ltr bottles of brands like Pepsi Max, are often bought as an alternative to alcohol and also make great mixers, while multi-pack products of drinks such as Fruit Shoot are great for kids’ occasions.”

CANDY Candy is big business and no more so than on a Big Night In. The UK candy market is worth a huge £1.2bn with the biggest adult candy bag [Nielsen, Dec 2017] being Maynards Bassetts Wine Gums. August saw the launch of Maynards Bassetts Soft Jellies Wild Safari, a new 160g bag of soft jellies with flavours of lemon, raspberry, orange, blackcurrant and lime in a variety of safari animal shapes. The new jellies are made with natural colours and mark the first medium-sized Maynards Bassetts bag featuring a new window design. “The launch was intended as an incremental purchase for consumers already loyal to

Maynards Bassetts, whilst also recruiting younger adults to the brand to drive category growth,” says Mondelez International’s Nash. “Recent additions to the UK’s number one adult candy bag range, including Tangy, Tropical and Merry Mix candy bags, have brought extra shoppers to the market with Merry Mix bringing in more than 300,000 additional shoppers [Kantar, Dec 2016].” Wine Gums Mocktails joined the portfolio in March, further broadening the brand’s appeal to younger adults. It features nonalcoholic Strawberry Daiquiri, Pina Colada and Cuba Libre flavours added to the range of Wine Gum- shaped jelly sweets. Another candy brand that’s a must-stock for a Big Night In is Mars Wrigley Confectionery’s Skittles. Dan Newell, Confections Marketing Director, Mars Wrigley Confectionery, comments: “Some 60% of Skittles are consumed as an evening snack, over-indexing against the Total Sugar Confectionery category.” Newell urges retailers to create a clear display that communicates the ‘Big Night In’ occasion to draw shoppers into the fixture. “Cross-category promotions will also certainly encourage incremental purchases,” he says. “And remember to focus the display on products that are ideal for sharing such as Starburst ‘Tear and Share’ Pouches, which www.slrmag.co.uk

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Big Night In

broader everyday appeal where energy and vitality feature. As a result, there has been an evolution of the snacks consumers are purchasing, with shoppers currently seeking healthier alternatives to confectionery and crisps and this is just as true for the Big Night In occasion.” Peperami is the leading brand in the meat snacking category [Nielsen, March 2018]. It launched a 100% Classic Beef variant last year, filling a gap in the market for convenient beef snack products, according to Chandra. It’s also worth noting that meat snacking products like Peperami and Jack Link’s Beef Jerky have an average price per serving close to three times that of crisps. Chandra encourages retailers to ensure that protein-rich snacks are predominantly stored at front of store while clip strips and display units within the Big Night In fixture and beyond are a great solution to drive visibility and cross-category purchasing. Additionally, Peperami is running a nationwide on-pack promotion with Merlin Entertainments, across the Beef and Pork ranges, in Single, Mini, Snack Pack, and Multipack formats until the end of 2018. Teaming up with Thorpe Park and Alton Towers Resorts, Peperami is offering thrill seekers and families 2 for 1 entry tickets to the popular theme parks (at the value saving figure of £27) through the combined partnership.

CREATING THE PERFECT BIG NIGHT IN OFFER Mondelez International offers the following top tips for cashing in on the Big Night In opportunity.

FOCUS ON THE BESTSELLING LINES Have a range that covers all need states: self-eat, sharing and gifting confectionery. Place best sellers in the bestselling area (‘central point of vision’).

USE MANUFACTURERS’ POS MATERIAL Make the most of brand investment – have displays in store when consumers will be most aware of products as a result of advertising or media investment.

DON’T FORGET THE BASICS – KEEP FULLY STOCKED AND KEEP THE DISPLAY TIDY Group products with similar attributes adjacent to each other (e.g. ‘containing nuts’). For more information on how to maximise your Big Night In sales, go to: deliciousdisplay.co.uk

SLR | SEPTEMBER 2018

ICE CREAM

are great as they are individually wrapped and offer a variety of flavours for everyone to enjoy.”

MEAT SNACKING An increasingly important element of many big nights in is the meat snacking category, dominated by Peperami. Pavan Chandra, Peperami Marketing Manager, comments: “In the past five years, there’s been a dramatic shift in the snacking world that reflects wider trends toward healthy living and shifting preferences around protein and sugar consumption. Protein is widely seen as healthy, with its role having evolved from niche muscle building to having a

No Big Night In is complete without some ice cream. The UK ice cream market is a billion pound category with value up 2.8% year-onyear [IRI, Jun 2018]. Ice cream tubs alone are now worth £484m according to the same data, representing 44% of all ice cream sales. Wrapped handheld ice creams is the largest segment worth £615m and the Mars Ice Cream bar is the UK’s top ranking ice cream bar followed by Snickers. Research carried out by Mars Ice Cream in May this year revealed that a third of UK consumers are entertaining at home more than they did 10 years ago and that 75% of respondents would offer ice cream as a dessert to their guests. One in three said that they always keep ice cream at home for impromptu entertaining – second only to crisps, nuts, dips and cheese. The research also revealed a clear winner when it comes to ice cream for entertaining: 68% of hosts opt for ice cream sharing tubs, with one in three (36%) preferring to serve ice cream on a stick and one in five (22%) an ice cream bar. www.slrmag.co.uk

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Sports & Energy

ENERGISING YOUR SALES:

WHAT YOU NEED TO KNOW Sports & Energy remains a hugely important category in local retailing and a category that is still in growth despite its huge scale – so making sure you have the right range for today’s consumers is key to optimising sales and profits.

THE SIZE OF THE MARKET Despite many years of growth and having long ago evolved into a fully-fledged category in its own right, Sports & Energy shows no signs of losing momentum any time soon. In fact, the category grew by 5.6% in value and 5.8% in volume in the year to Jan 20, 2018 [IRI]. Energy is the biggest-selling soft drink segment within the category for independents with over £400m worth of sales in the channel [IRI, Jul 2018]. In Scotland, Energy is worth £135m [IRI, Jan 2018]. In other words, Sports & Energy should be a priority for all Scottish local retailers. The brand which arguably launched the category – Red Bull – is also in the middle of something of a purple patch, growing faster than the category in terms of both volume and value. Its landmark moment arrived last year when Red Bull Energy 250ml was established as the number one UK single serve soft drink, surpassing Coca Cola Original 500ml. Mark Bell, Strategy and Planning Manager at Red Bull UK, said: “Red Bull has exceeded the category growth as it up 8.4% in value and 12% in volume [IRI, Apr 2018], performing

well across all channels within the UK, particularly in Symbols where it us up 7.0% by value [IRI, Jan 2018]. “As the number one single serve soft drink, worth £137.5m and growing at 2.7% [IRI, Jan 2018], Red Bull Energy 250ml is a must stock for retailers planning their energy drinks offering.” Scott Meredith, UK Sales Director at Lucozade Ribena Suntory (LRS) also highlights the key role that the Lucozade brand plays in Scotland. He says: “As one of the leading brands, Lucozade Energy is a must-stock for Scottish retailers. In fact, an average store makes more than £2,000 a year from Lucozade Energy [IRI, Dec 2017]. “Additionally, Sports drinks are an important segment for retailers. Lucozade Sport is the best-selling brand in the segment and can generate over £1,000 a year, per store [IRI, Nov 2017].

THE LATEST CONSUMER TRENDS The most important current trend in Sports & Energy, as it is in Soft Drinks as a whole, is the growth of low- and no-sugar products.

MERCHANDISING AND RANGING ADVICE FROM LRS Lucozade Ribena Suntory UK Sales Director Scott Meredith advises retailers: Q It’s vital that shoppers get the best experience in store. It should be easy for them to find what they came in for, while also being tempted by other options in the chiller. Q Fridges should be stocked with best-selling drinks and the bulk of each segment should be made up of the biggest brands. Q To maximise sales all year round, retailers should focus on layout, review their range regularly and stock up frequently. SKUs should be brand-blocked with a minimum of two facings per flavour, and more for a best-seller like Lucozade. Q Availability is essential – with each shopper spending up to £232 [IRI, Oct 2017] a year on soft drinks, every person who walks through the door is a profit opportunity. Top-sellers should be placed at eye level to help shoppers find their favourites quickly. Q The range should be regularly reviewed on sales performance and shopper feedback to make sure the best possible selection of drinks, including all the top-selling brands, are offered. Q Scottish retailers should make the most of new products to tempt shoppers and challenge their normal habits. For example, the new Larazade Croft Apple flavour is available now.

SLR | SEPTEMBER 2018

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Sports & Energy This existing trend has been accelerated by the Soft Drinks Industry Levy which is steering more and more shoppers to low kcal products. The key lesson for retailers here is to ensure that this trend is reflected within their chillers. Red Bull’s Bell comments: “Consumers are swaying more towards sugarfree options so it is imperative that retailers offer a low kcal alternative – meaning that a higher proportion of space is being dedicated to low kcal products. Diet is worth £144m, which equates to 11.3% of the Sports & Energy category, increasing by 1.7% from last year [IRI, Jan 2018]. Growing at 7.1% to £31.9m, Red Bull Sugarfree 250ml is the number one low kcal Sports & Energy drink.” Barr Soft Drinks has also recognised the trend and has duly shifted some of its energy focus onto the sugarfree market. Adrian Troy, Marketing Director at Barr Soft Drinks, explains: “Sugar is an important component of energy delivery for the majority of consumers in the market, but a growing number of consumers are looking for a lower calorie or even sugar free option. The Scottish low calorie big can energy market is currently worth over £16m and growing at 26% [IRI, Nov 2017]. It is estimated to continue to grow significantly over the next five years. “Barr Soft Drinks has accelerated demand for Rockstar with the launch of its latest category-boosting range, Rockstar Revolt, with sales of over £4m since it was launched in 2016. [IRI, Jan 2018]. LRS’s Meredith points out that the company stayed ahead of the curve by reformulating its range to ensure its key products were not affected by the Soft Drinks Levy. He says: “Our category-leading reformulation means that all our Lucozade, Ribena and Orangina drinks are not subject to the legislation. While some big-selling soft drinks have increased in price, our consumers won’t see changes to our brands as a result of the levy, and retailers can continue to offer our great-tasting drinks at great value for money prices.” Meredith also advises retailers to keep a close eye on the related Functional Water category. He comments: “We launched Lucozade Sport Fitwater last year to help retailers grow their sales with a new functional water. This allows retailers to profit from the health and fitness trend and target consumers before or after exercise.”

KEY NPD As the UK’s number one low kcal functional energy brand, Red Bull announced the extension of its Sugarfree range earlier this year. Bell explains: “Whether it’s the UK’s bestselling single serve soft drink [IRI, Apr 2018] Red Bull Energy Drink 250ml can – which remains the bestseller – or a Red Bull Edition, shoppers can reach for any Red Bull drink and expect to see the sugarfree option sitting right beside it.” In its commitment to become more relevant with current health and category trends, and drive market growth, Red Bull extended its portfolio with the addition of the first Red Bull Sugarfree 473ml can (PMP and plain), and the completion of its Red Bull Sugarfree 355ml offer with a PMP pack. The brand has also revisited its Editions range, adding Tropical and Orange variants as 250ml can sugarfree options (PMP and plain). LRS has unveiled its latest innovation in the form of ‘Larazade’, as part of a deal with the game release of Shadow of the Tomb Raider, which features the iconic Lara Croft. The classic Lucozade Energy Orange and Original flavours have been transformed into Larazade for a limited time only. “We wouldn’t change our name for just anyone – but following the huge success www.slrmag.co.uk

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MORE WINGS TO MAKE SALES FLY.

These days, more and more shoppers want a low-calorie alternative to their favourite drinks.

That’s why the Red Bull Sugarfree range has grown, offering shoppers new flavours, new sizes and a choice in how they get their wings. As Red Bull Sugarfree 250ml is the number one low kcal drink in the Sports & Energy category (+7% vs 2017 )*, selling Sugarfree alongside Red Bull Energy Drink can help your category sales fly. So if you want to give your business a lift, it’s easy to see:

*IRI £SALES LOW KCAL SPORTS & ENERGY SINGLES (TOTAL COVERAGE | 52 WKS 20.01.18)

SEPTEMBER RB_UK_9174_SF_RANGE_TRADE_AD_1/2page_vertical_93x265mm_AW.indd 1

2018 | SLR 65 15/08/2018

10:43

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Sports & Energy

ahead with the Tomb Raider film partnership earlier this year and the anticipation for Shadow of the Tomb Raider, we knew it was time for Lucozade to become Larazade!” says Meredith. “We’re also launching a limited-edition new flavour Larazade Croft Apple which is available to independent retailers via wholesale now.” Barr Soft Drinks is accelerating demand for the UK’s top selling big can flavoured energy brand [IRI, Jan 2018] with its new range of Rockstar First Start products. The range comprises two flavours – Mixed Berries and Orange Clementine – and is aimed at morning consumption occasions which are currently an untapped area for the energy drinks market. The products - which contain no added sugar – offer a combination of fruit juice (5%) and caffeine from natural sources and less than 30 calories per can. “We’ve identified a significant growth opportunity for energy drinks as part of the morning routine. There is also an opportunity to broaden the usage in the market beyond the young adult male base, to bring in both older consumers and female shoppers,” says Troy. “Rockstar First Start meets these needs, delivering that sought-after energy boost in a great-tasting low-calorie soft drink. With low calorie variants driving growth three times faster than regular variants, we are confident that this new addition will drive incremental sales.” With big can formats growing at 13% [IRI, Jan 2018], Rockstar is currently the largest big can flavoured energy drink in the Scottish convenience market. The top two flavoured big cans are Rockstar variants – Xdurance (No.1) and Punched Guava (No.2) [IRI, Nov 2017] – and its 11-strong range is the biggest in the energy drinks category. The long-established Purdey’s brand has enjoyed a hugely successful rejuvenation recently as more and more health conscious shoppers buy into the brand. Trystan Farnworth, Commercial Director, Convenience & Impulse at Britvic, says: “Last year, Purdey’s celebrated being the fastest-growing energy brand [Nielsen, Dec 2017], driving value into the category. Purdey’s also launched its 250ml can format in October. The sleek, modern can, which was launched with a £3m above- and below-theline brand campaign, targets health-conscious consumers on-thego, particularly those looking for an energy boost, without the high caffeine and added sugar levels.” The Purdey’s range includes Purdey’s Rejuvenate and Purdey’s Edge variants, both of which are available in the new 250ml can format, as well as the original 330ml glass bottle format. Farnworth says: “Consumers are increasingly avoiding high sugar and processed foods, traditionally found in soft and energy drinks. Due to this, there has been a 3.2% decrease in value sales of traditional full sugar energy drinks but a +33% rise in performance for energy drinks [Nielsen, Dec 2017] like Purdey’s. As a result of this increased demand, Purdey’s leads the way in the healthier energy drinks category, with 30.6% penetration growth last year alone [Kantar, Dec 2017]. “Consumers needing a pick-me-up have for a long time favoured the quick-fix high-energy solution. However, lately we’ve seen them increasingly reject the many existing products in the category because they are dissatisfied with a short-term boost followed by a ‘crash’ in energy. “People are also increasingly worried about the long-term health impact of their choice of drinks, with six out of 10 believing energy drinks are bad for their health [Canadean, 2016]. Purdey’s offers a soft drink that tastes great and appeals to health-conscious consumers looking for an energy boost from vitamins as opposed to added sugar or taurine; making it a healthier alternative to the established energy drinks brands on offer. “With its juice content, added vitamins and botanical extracts, Purdey’s is free from caffeine, artificial colours, flavourings, sweeteners & preservatives. With no added sugar, it is also exempt from the Sugar Levy.” 66

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RED BULL OFFERS THREE TOP TIPS FOR MAXIMISING SALES AND PROFITS IN THE SPORTS AND ENERGY CATEGORY: SPACE: Q Stock the most effective range to drive the greatest value Q Category space should be aligned with share of value sales to maximise sales FOCUS ON TOP FIVE BRANDS: Q 50-60% of Soft Drinks space should be allocated to the top five brands Q Ensure 60-70% of space for Sports & Energy brands, in line with share of the category VERTICAL BLOCKING: Q Shoppers only see products within a 1.3m breadth Q Vertical blocking helps shoppers to easily find the product they are looking for improving their ease of shop

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Feature

Tobacco

TIME TO LOOK ON THE BRIGHT SIDE OF THE DARK MARKET? The much-maligned tobacco category remains arguably the most important category in any convenience store, contributing a huge percentage of sales and cash profits – so is it time retailers took a more positive approach?

o other category in local retailing comes close to Tobacco when it comes to surmounting a constant stream of massive challenges from the legislative to the moral – yet it has consistently proven itself to be the most resilient product category of all. Even though Tobacco is arguably the most important category in any Scottish c-store in terms of percentage of overall sales and percentage of overall cash profits, it is still often viewed in a downbeat light by local retailers. Take tobacco out of any c-store and the store is almost certain to fail, and fail fast. Yes, we can debate margins and pricing strategies, but the fact remains that the vast majority of the price of a packet of cigarettes does not go to the manufacturer and certainly not to the

retailer – it goes to the government in the form of tax. The Tobacco Manufacturers’ Association (TMA) has calculated that on a typical pack of 20 cigarettes the total tax burden typically accounts for 82% of the RSP. That doesn’t leave much for the rest of us to share. So yes, margins could be higher – and many retailers are forcing those margins up by pricing over RSP – but the fact remains that tobacco delivers a huge percentage of the sales in all c-stores, as well as a very chunky percentage of cash profits. And that’s before the positive contribution it makes to footfall and the sales it drives in other categories. The danger here is that retailers cut off their noses to spite their faces. Lose focus on the biggest sales driver in the store and the only way is down. Positively embracing a legal cate-

CHOICE AND INNOVATION KEY TO ACCESSORIES Innovation and new product development are what is driving growth in the tobacco accessories market in Scotland, according to Republic Technologies (UK). Consumers are demanding more from the category – now worth £27.5m [IRI, Jul 2018] in Scotland – with increasing pressure on suppliers to innovate, says the company. “The tobacco accessories market has seen YOY growth of 6.5% in Scotland, with papers being the most buoyant area of the category, worth £92m and growing at 12.5% [IRI, Jul 2018],” says Gavin Anderson, General Sales Manager at Republic Technologies. “It’s crucial that suppliers maximise this opportunity by working with wholesale and retail customers to understand shoppers’ needs and, in turn, to enable retailers to drive sales of tobacco accessories in-store. “We have recognised the need for greater choice with NPD that taps into consumer trends, including Swan Ultra Slim, the thinnest-ever Swan filter and a premium quality product aimed at smokers; Swan ‘Eco’ filters, the most environmentally friendly Swan product ever; Swan Kingsize Cigarette Tubes, appealing to cash-conscious consumers looking for an alternative to readymade cigarettes, and OCB Virgin Slim & Tips, for consumers looking for a less refined paper and a softer smoke.” In March, Republic overhauled its matches range to include new packaging and an extension for its Swan brand. In addition to modernising core brands to appeal to a younger audience, the move marked the company’s commitment to sustainability and the increased demand for ecofriendly matches, following the removal of Strike Anywhere match formats from the range.

SLR | SEPTEMBER 2018

gory and working with suppliers is more vital than ever in keeping the category resilient. The major manufacturers, after all, have done a great job of keeping the category buoyant with promotions, NPD and innovation in the face of seemingly insurmountable odds, something that doesn’t always get the credit it deserves. Stephane Berset, Head of Marketing at JTI, says: “Tobacco continues to be the biggest FMCG category, with the total UK tobacco market currently worth £14.4bn [Nielsen, Jun 2018]. The total value of Tobacco in Independents and symbols totalled £6.2bn in the last year [Nielsen, Jul 2018] with the cigarette market accounting for £5bn [Nielsen, Jul 2018].” Those are figures that no other category comes close to matching. Andrew Miller, Head of Field Sales at Imperial Tobacco UK, says his company estimates that while sales are falling, by around 6.5% last year, the number of sticks sold still totals around 41bn. Interestingly, sales in convenience have fallen much slower. He says: “Imperial estimates around 74% of sales are in the convenience channel, down by around just 2% compared to this time last year.” So is it time for retailers to take a fresh look at the category with a fresh perspective? There’s certainly lots to get enthusiastic about, and retailers that embrace the latest trends and tailor their offer to modern shop-

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Tobacco

per demands are far more likely to gain their share of the category. The two most prominent trends in the current tobacco market are the continued growth of the Capsule segment (which is now responsible for 15.3% of total cigarette sales in the UK [Nielsen, Jul 2018] and the growing Value segment, as consumers seek out value-for-money products. These trends have been evident for a long time now but are becoming more pronounced as time goes by.

JTI ADVICE: RANGING FOR PROFIT

RYO

According to JTI’s Berset, this shift to value has also boosted the Q Maintaining a full range and availability of tobacco brands across the pricing scale is of vital importance because customers RYO category: “As part of the trend towards value in the total tobacco are brand loyal – research tells us that 27% [IPSOS, 2017] of market, the RYO category has increased 7.7% year on year [Nielsen, existing adult smokers choose to buy elsewhere if their brand is Jul 2018] as existing adult smokers seek out these value-for-money unavailable. products. The RYO category now generates sales worth over £2.6bn, Q There is still significant demand for premium and mid-priced making it the leading combined price sector with a market share of brands, so by ensuring they stock a full range that reflect their 38.5% [Nielsen, Jul 2018].” customers’ demand, retailers can avoid losing out on sales and With over 6.5 million kilograms of rolling tobacco sold in the UK become or continue to be a destination store of choice for existing each year, there is significant opportunity for retailers to maximise adult smokers. sales by stocking up on value RYO products. Q Communication with customers is an area where independent This opportunity has led JTI to follow retailers have an opportunity to maximise sales: up the phenomenally successful re* Retailers should also use regular conversations with their regular launch of its Kensitas Club brand earlier existing adult smoker customers to adapt their ranges and this year with the launch of a new Kenmaximise sales. sitas Club RYO offering. * This flexibility, depth of category knowledge and time to speak Now Scotland’s fastest growing cigwith customers should be used by convenience retailers as a arette brand [Nielsen, Jun 2018], Kensignificant advantage and opportunity over nearby multiples. sitas Club is now available in both 30g and 50g packs with very competitive RSPs of £10.90 and £17.80 respectively, making it Sterling Dual Superkings and Sterling Dual Double Capsule JTI’s lowest-priced rolling tobacco. King Size. Ross Hennessy, Head of Sales at JTI UK, comWith an RSP of £8.65 (vs Sterling Dual, RSP £9), the ments: “The relaunch of Kensitas Club earlier this new Sterling Dual Superkings offers existing adult smokyear was hugely successful, and this latest exteners extra value and extra length. Delivering double the taste sion to the range will allow retailers to capitalise on with the same value, the new Sterling Dual Double Capsule this sales momentum as well as tap into Scotland’s King Size has two flavours: pepgrowing RYO segment, that is now worth an estimatpermint and spearmint. Priced ed £187m [Nielsen, Jun 2018]. Value rolling tobacco now ACCESSORIES ADVICE at the same RSP (£9) as the Stermakes up 37.6% [Nielsen, Jun 2018] of RYO volume in Republic Technologies offers the following ling Dual Capsule King Size, it Scotland and we are confident that the launch will provide top tips for retailers to maximise the enables existing adult smokers to retailers with a competitive product for the existing adult opportunity from tobacco accessories: create a variety of distinct smoksmokers in this segment and in turn drive incremental Q Stock a wide selection of products ing experiences in one cigarette. sales.” including core range filters, papers, JTI’s B&H Blue brand has also Imperial Tobacco has also been busy in the RYO marmatches and lighters, as well as the recently been extended with the ket, as Miller explains: “In terms of RYO trends, many latest NPD. addition of a new capsule variant, adult smokers now seek value through purchasing their Q Pack formats play an important role: available in Superking size. With RYO tobacco from lower-priced sectors while looking for space saving packs such as vertical a low RSP of £8, the launch ofall-in-one solutions. In response to this, last year Imperial packs of Zig-Zag King Size papers (50% fers extra length and extra value, launched the 30g Gold Leaf Handy Pack (containing a 30g space saving compared to traditional allowing retailers to cash in on pouch of Gold Leaf rolling tobacco, 2 x 40 Rizla Regular King Size packs) and Poppell 45-pack the growth of both the Ultra ValGreen cigarette papers and 72 Rizla ultra slim filter tips).” lighters help retailers to manage shelf ue and Superkings segments. CAPSULE space more effectively, while pack Imperial Tobacco has also emThe capsule market is the other area that requires careful formats such as Swan Slim Pop-a-Tip braced the shift to great value attention, as Imperial Tobacco’s Miller highlights: “The Filters offer a convenient alternative (vs with a repositioning of its L&B crushball (capsule) sector continues to grow apace and Swan Slim Loose Filters) for on-the-go Blue cigarettes, taking them into we estimate that it now stands at over 14% of the overall consumers. the Sub Economy price sector factory-made cigarette (FMC) market after a notable Q Offer a core range of papers (Green, with an RSP of £8. increase in recent years. Blue and Silver in both standard “If they don’t already do so, retailers should consider and King Size variants) plus other options such as Unbleached and stocking our award-winning JPS Player’s Crushball (RSP flavoured, and stock multipacks to £8) and JPS Crushball (RSP £8.65). combat discounters. The other must stock capsule brand is Sterling Dual, the UK’s No.1 capsule brand [Nielsen, Jul 2018] which has extended its range with the addition of two new products: 70

SLR | SEPTEMBER 2018

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Marlboro Touch, just

ÂŁ8.50*

Improve your sales a touch more. Marlboro taste and quality With Firm Filter With Pro-Seal Just a slimmer size and price For the information of tobacco traders only and should not be distributed further. Pack images are for illustration purposes only. *RRP = Recommended retail price. All on-shelf prices are selected by the retailer alone.

Tobacco smoke contains over 70 substances known to cause cancer

Feature

Tobacco

CIGAR CATEGORY UPDATE STG SAYS IT’S GOOD TO TALK Leading cigar manufacturer Scandinavian Tobacco Group UK Limited (STG UK) is launching a new online platform to provide retailers with key industry information and advice on how to maximise the cigar opportunity in their stores. The new trade website, www.stgtrade.co.uk, centres around the strapline ‘Let’s Talk’ and builds on the consumer insights STG UK recently revealed which showed many retailers are missing out on tobacco sales due to not proactively engaging with customers. Jens Christiansen, Head of Marketing & Public Affairs at STG UK, comments: “Our research findings showed that over half (51%) of retailers aren’t offering their customers the all-important guidance they need on which tobacco products to purchase. We recognise we have an important role to play in helping retailers realise this opportunity by educating them on the category and how best to engage with customers.” The online platform will provide retailers with everything they need to know on the cigar category, with a host of tools designed especially with the trade in mind. This will include everything from information on STG UK’s brands and products, the top-sellers in each segment, recommended ranging and planograms, as well as category management advice and top tips on how to build customer loyalty, along with retailer testimonials and success stories. Christiansen continues: “The relationship between independent retailers and their customers is integral to sales success, especially within the tobacco category. Taking the time to engage with shoppers and forge a stronger connection by proactively offering advice can really pay off in sales. The average profitability for cigars is double that of cigarettes so it’s really worth investing the time and effort in understanding the category and different products available so you can in turn offer well-informed advice to your customers.”

Worth £198m in the UK, the Cigars category still represents a significant sales opportunity for retailers. Scandinavian Tobacco Group UK (STG UK) leads the way in the category, accounting for seven of the top 16 brands alone and over half of the entire category with a 53% market share. The company’s portfolio includes Café Crème, the number one cigar brand in the UK. “Our research indicates that over half (51%) of retailers aren’t offering customers the all-important guidance they need on which tobacco products to purchase,” says Jens Christiansen, Head of Marketing & Public Affairs at STG. “With 62% of consumers saying they would possibly try an alternative tobacco product if advised by their store and 12% said they definitely would, this presents a huge missed opportunity for retailers.” The research Christiansen references was a study conducted by Censuswide UK on behalf of STG among 1,000 adult smokers in March this year and discovered that nearly half (46%) of retailers seem to be offering their customers advice on what products to purchase, but less than 2% of shoppers feel that their recommendation would influence their tobacco purchasing decision. Christiansen comments: “By increasing their knowledge on the Cigar category, including the different segments and products within them, retailers will be able to provide informed advice to their customers and increase their sales as a result.” Price in terms of out of pocket spend was shown to have the greatest 72

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influence on consumer tobacco purchasing decisions, coming out top of the poll (61%), with perceived value for money a close second (47%). Of those smokers who hadn’t tried cigars before, a quarter (25%) would be encouraged to buy them because of taste and a fifth (20%) would buy them if they thought they were cheaper than cigarettes, further reinforcing the consumer demand for value within the tobacco category. Christiansen says: “Demand for value is nothing new having been a major consumer trend for many years now but, as our research shows, it can mean different things to different people. The restrictions on pack sizes within the tobacco category has come with a higher price for many shoppers, however given their exemption from these restrictions, cigars are often the cheapest option for shoppers. “Stocking a strong selection of cigars will allow retailers to directly respond to these shopper insights, with well-known brands like Café Crème offering reassurance of quality, as well as smaller pack sizes and even individually-wrapped cigars offering low out-of-pocket spend.” STG advises retailers to stock a range of top-sellers and big-name brands from each cigar segment. These include the number one cigar brand in the UK, Café Crème Blue which accounts for 22% of cigar sales single-handedly; Henri Wintermans Half Corona, which leads the Medium/Large segment; and Moments Blue which, priced at just £3.83 for a pack of 10, is dominating the Value for Money Miniatures segment. Christiansen does highlight however that building a range for the specific needs of each store is vital: “It’s important for retailers to tailor their cigar range to their store and customer demographic. By engaging with shoppers and discussing what they’re looking for, retailers can adapt their range accordingly to ensure it meets their needs and aren’t at risk of losing out on sales to competitor stores.”

MARKET OVERVIEW TOP PERFORMING CIGAR BRANDS: BRAND

SHARE % MAT TY

VALUE (£M) MAT TY

Café Crème Blue Moments Blue Hamlet Hamlet Miniatures Café Crème Royal Dutch Miniatures Classic Café Crème Red Filter Royal Dutch Miniature Blue HW Half Corona

22.0% 12.6% 10.9% 10.6% 8.9% 6.9% 6.1% 4.5% 4.1% 2.5%

£34.6 £14.1 £34.7 £16.1 £13.9 £7.8 £20.8 £7.0 £4.6 £14.3

Source: IRI, Jun 2018

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NEW

LOW PRICE ROLLING TOBACCO

£10.90 * RRP

£17.80 * RRP

AVAILABLE IN 30g AND 50g POUCH THE FASTEST GROWING BRAND IN SCOTLAND1

* You are, of course, at all times free to sell JTI’s products at whatever price you choose. 1 Nielsen Market Track November 2017 to April 2018

Feature

Halloween

FRIGHTFULLY GOOD SALES! As one of the biggest seasonal events in the local retailing calendar, Halloween is now a major sales opportunity – and there’s plenty of themed products to help build a spookily good fixture.

HALLOWEEN:

WHAT’S THE DEAL?

Q Halloween is now one of the biggest seasonal events in the retail calendar and is enjoying huge year-on-year growth. Q The total Halloween season is worth £1.2bn [Kantar, Nov 2017]. Q Halloween itself is worth over £300m [IRI, May 2018] Q Around 85% of shoppers bought a Halloween item last year [IRI, May 2018] 74

SLR | SEPTEMBER 2018

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Halloween

DR OETKER WHAT’S THE FOCUS? “The home baking category sees uplifts in sales during the key seasonal periods such as Halloween, Easter and Christmas,” says Riccardo Panichi, Head of Marketing Cake & Dessert at Dr Oetker UK. “As one of the most creative occasions of the year, home bakers are looking for inspiration and excitement in store during the run-up to Halloween. The season is all about elaborate spooky decorations and there is a 29% uplift in value sales of cake decorations during this period, proving the potential for sales [IRI, Oct 2017].

WHAT’S NEW? Panichi says the key home baking products to stock for Halloween are Dr Oetker’s Fine Cook’s Chocolate, Regal-Ice Ready To Roll Icing, and Extra Strong Gel Colours. “Chocolate is a key trend this year and this will continue into Halloween,” he says. “Food Colours are some of the most essential products for Halloween baking. In 2017 Dr. Oetker launched its New Extra Strong Gel Food Colours, which are twice as strong as the original gel colours and offer 50% more per tube.”

TANGERINE CONFECTIONERY WHAT’S THE FOCUS? Retro sweet specialist Tangerine Confectionery has identified ‘kidulting’ as a key market trend – the notion of adults looking to treat themselves with the sweets they remember from their childhoods. Halloween is the perfect opportunity for adults to explore their inner ‘big kid’ and share these memories with their children.

WHAT’S NEW? Tangerine is launching a 450g branded Barratt Halloween Bucket containing a mix of Refresher Rolls, Dip Dabs, Mini Wham Bars, Mini Fruit Salad Bars, and individual 30g bags of Dolly Mix, Cola Bottles, and Shrimps and Bananas. The bucket format is ideal for shoppers stocking up for trickor-treaters or for sharing at a big night in. The Barratt Halloween Bag (180g), featuring a mix of retro heroes, including Dip Dab lollies, Fruit Salad lollies, mini Refresher rolls, and mini Wham chew bars.

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PREMIER FOODS WHAT’S THE FOCUS? “Halloween is the third-biggest season for us here at Premier Foods and we focus heavily on it with both the Mr Kipling and Cadbury Cake brands,” says Steve Kelly, Channel Director.

WHAT’S NEW? This year the Mr Kipling Fiendish Fancies and Terrifying Toffee Whirls will be making a return, alongside the addition of new Cadbury Pumpkin Patch Gateau. Available from October, the gateau makes a great centre piece for Halloween parties and gatherings, providing eight portions. The company is also advising retailers to stock Bonfire Night-related products as well. Available from October, Mr Kipling Toffee Apple Slices and Chocolate & Marshmallow Slices bring warming flavours that fit well with the Bonfire Night occasion. Cadbury Cakes is also launching Mini Bonfire Logs, a twist on the mini roll, with honeycomb sponge and creme.

COCA-COLA EUROPEAN PARTNERS WHAT’S THE FOCUS? “Like Coca-Cola is to Christmas, Fanta is to Halloween,” says Amy Burgess, Trade Communications Manager at Coca-Cola European Partners. “The brand is a key driver of soft drinks growth during the four-week Halloween period. Whilst overall soft drinks grew by 3.7% [Nielsen, Nov 2017] during Halloween last year, Fanta saw a boost of 26% and this was accelerated by more consumers picking up Fanta Zero than ever before.”

WHAT’S NEW? Fanta is back this year with another Halloween activation supported by a multimillion-pound marketing campaign that includes digital and outdoor advertising, social media and Twisted Carnival experiential activities. This year will see the return of limited-edition ghoulish on-pack graphics and an on-pack promotion with Snapchat. The brand is also unveiling its spooktacular winning flavours from the Fanta Flavour Election which kicked off in April 2018. Burgess explains: “We teamed up with four popular influencers who each have large social media followings, reaching a combined 4.4 million Facebook and 712,000 Instagram fans. Each influencer represented a new Fanta flavour and encouraged consumers to vote for their favourite flavour via online prank videos which gained 18.7 million views and made it into the top 10 sponsored videos in April on Facebook.” After more than 150,000 votes, Fanta Blood Orange Zero and Fanta Pink Grapefruit Zero were named the winners and will be joining the brand’s portfolio for Halloween, available in 2-litre formats. Both variants are Soft Drinks Taxexempt and are naturally-flavoured containing no sugar or calories. The Blood Orange Zero will also be available in a limited-edition 6 x 250ml pack format with Halloween pumpkin graphics.

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SEPTEMBER 2018 | SLR

Halloween

Feature

MONDELEZ INTERNATIONAL WHAT’S THE FOCUS?

YOU CAN’T

E P A C S E THE GREAT TASTE

Confectionery accounts for around 29% of all Halloween sales [Kantar, Nov 2017] and Mondelez International is the second-largest confectionery player in the Halloween market with a product range that meets each Halloween occasion: self-treat, trick or treat, Halloween parties and big night in.

WHAT’S NEW? New for Halloween 2018 are Cadbury Goo Heads, available in creepy skeleton, pumpkin, Frankenstein, Dracula or werewolf variants. Available individually (RSP 55p) or in a pack of five (RSP £2.85), the products aim to offer value and convenience to customers. Launched alongside are Cadbury Goo Head Minis (RSP £1.49), a smaller format version ideal for sharing. Maynards Bassetts Creepy Chews (RSP £2.51), launched for the first time last Halloween, will also return for another season.

MARS WRIGLEY WHAT’S THE FOCUS? To help retailers leverage Halloween, Mars Wrigley has conducted comprehensive research into the occasion. The key findings include: Q In 2017 confectionery drove Halloween growth by 7% [Nielsen, Nov 2017] Q The growth was largely driven by a shift in demand towards Sharing Bags and twistwrap confectionery as consumers look for Trick or Treat and Big Night In confectionery options. Q Funsize and sharing grew at 6.5% and 5.7% respectively. Q The biggest ritual remains Trick or Treating, with 41% of consumers taking part. With confectionery an integral aspect of this, many consumers overbuy a mix of both chocolate and sugar confectionery in both funsize formats and sharing bags to ensure they have as many treats available for trick or treaters as possible. Q Watching a scary movie is also becoming an increasingly popular ritual in the run-up to Halloween. Thirty-one per cent of consumers watched a scary movie at home last year across the Halloween period [Nielsen, Nov 2017].

WHAT’S NEW?

Fanta Zero is growing by 101.1% in convenience* 71% of Fanta Zero growth is incremental to the Flavoured Carbonates sector,** so make sure it’s on shelf noooow! *Nielsen total Impulse MAT Value to 07.07.18 **Kantar MAT to 15.07.18

SLR | SEPTEMBER 2018

Skittles will be taking consumers back to the dark side for the fourth year running. Containing five frightening flavours (Forbidden Fruit, Midnight Lime, Blood Orange, Pomegranate and Dark Berry), Skittles Darkside is available in funsize format (RSP £1.39), alongside Skittles Fruits (RSP £1.39), both ideal for the Trick or Treat occasion. Mars Wrigley also launched limited-edition M&M’s Crunchy Caramel recently to combine the second most popular flavour in the bitesize chocolate category with the world’s number one confectionery brand.

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Halloween

Feature

FERRERO WHAT’S THE FOCUS? Ferrero will be concentrating firmly on growing the sales of its Kinder Choco-Bons brand with a new range of packs and supporting POS. Levi Boorer, Customer Development Director at Ferrero UK, comments: “Last year, we saw a 68% uplift in sales during the key seasonal period, thanks to our Halloween-inspired packs.”

WHAT’S NEW? With those thoughts in mind, the £120m Kinder brand is giving its 200g Choco-Bons sharing packs (RSP £2.92) a monster-themed makeover for the second year running. The newly-designed packs will be supported with a sampling campaign and publicised on social media throughout October. Each pack includes individually-wrapped bite-size chocolates – ideal for sharing with trick or treaters this Halloween.

SWIZZELS WHAT’S THE FOCUS? “For us, Halloween is the biggest calendar event for sugar confectionery and this year is set to be no different,” says Swizzels Sales Director Mark Walker. “Swizzels sees its share of sugar confectionery double at Halloween compared to the rest of the year. Halloween 2017 was Swizzels’ most successful yet with sugar sales at Halloween up +5% growth [IRI, Nov 2017]. A ‘Halloween Sorted’ campaign will feature across the brand’s website and social platforms.

WHAT’S NEW? As well as its Drumsticks, Love Hearts, Double lollies and Refreshers brands, new for Halloween 2018 is the Treat Time tub. The 420g tub is a fun selection of Swizzels’ most popular brands in a bright, modern and convenient format, ideal for sharing over Halloween.

Make this Halloween a screaming success with GBs No.1 Flavoured Carbs brand* BARR SOFT DRINKS WHAT’S THE FOCUS? Barr is focusing on helping retailers create theatre and excitement instore by displaying fun, affordable products that appeal to consumers stocking up for seasonal parties or trick or treaters. “The Halloween occasion represents a significant opportunity for retailers to grow sales during what is now a key period in the UK retail calendar,” says Adrian Troy, Marketing Director at Barr Soft Drinks. “Soft drinks and confectionery are the biggest profit drivers [IGD, Nov 2015], with shoppers stocking up on take-home packs of soft drinks for parties and smaller packs to hand out to trick-or-treaters.”

WHAT’S NEW? Troy advises retailers to focus on the following Halloween bestsellers: Q Irn-Bru, the No.1 Scottish grocery brand [Kantar, May 2017], available in Regular, Xtra and Sugar Free variants. Q The Barr Family Range, Scotland’s most popular range of flavours growing at 18% [IRI, Jul 2018].

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Ghoulish pack designs and a haunting Snapchat on pack offer

STOCK UP NOOOOOW! EXCLOOOSIVE SNAPCHAT

FILTERS & LENSES #FANTAHALLOWEEN Get in contact to find out more at connect@ccep.com or call 0808 1 000 000

*Nielsen, Grocery Multiples, MAT to 02.06.18. Exclooosive snapchat filters & lenses snap to unlock 03/09/18 – 11/11/18 GB 16+ for full T&Cs see Fanta.co.uk/Halloween ©2018 The Coca-Cola Company. All rights reserved. FANTA is a registered trademark of The Coca-Cola Company.

SEPTEMBER 2018 | SLR

UTC

THE GREAT BOG ROLL SWINDLE

GET AHEAD, GET A HAT

UTC is indebted to a reader who sent him this rather blunt photograph that was taken of a fellow reveller at a Scottish music festival. We can only assume that the beaniewearing gent is a disgruntled former employee of the retailing behemoth. Or perhaps he was a shareholder merely registering his forthright disapproval of Asda’s proposed merger with Sainsbury’s. Who knows?

One of the more colourful press releases that the old boy received last month was another of those “Have they nothing better to do with their time?”-type research pieces which purported to investigate the creative ways that people attempt to save money. (It was actually a very thinly-veiled sales pitch for energyswitching service The Labrador, but hey ho). Turns out that the Scots are the most likely to steal toilet rolls and washing up liquid from their workplace to use at home, with 15% of respondents saying they do this. Apparently, the region least likely to do this is Wales, where only 9% of respondents have stolen toilet roll. UTC had an interesting but unprintable opinion on why our Celtic cousins weren’t fussed about toilet roll. Unsurprisingly, given the amount of rainfall it receives, Scotland also ranked as the region least likely to re-use washing up water or bathwater to water the garden. However, a surprising 7% of cannier-than-most Scots admitted to making a point of being away at Christmas to save money on buying gifts for others. Sadly, the survey didn’t drill down far enough to reveal how many Scots give stolen bog roll as Christmas presents.

YOU’RE NOT ONTO PLUMS

Plum dearth.

SLR | SEPTEMBER 2018

The reasons why UTC chooses the topics to feature on this esteemed page are many and varied, but never before has the auld yin insisted on running an article entirely because of the caption for a photograph and the name of the man quoted in the release. That’s why, dear reader, you are being presented with a frankly tedious story about plums. The caption in question, which had UTC in raptures, simply read ‘Plum Dearth’. We’re not entirely sure why he found this so funny. Then again, we’re not entirely sure about much as far as the auld yin goes. We’ll spare you the detail of the piece, other than to say that unfavourable weather conditions this summer have led to a dearth of plums. Apparently, they don’t like fluctuating weather, you see. They like it predictable and steady. “Plums are a temperamental fruit,” explained the implausibly named Gary Farmer, from Vale Landscape Heritage Trust, a charity that revitalises old orchards.

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STOCK UP UK's number 1 meat snack brand* 100% MEAT

100% LEAN BEEF

High in Protein meat snack

* Nielsen 24th March 2018 MAT