RETAIL
THE WEEK IN
RESEARCH
SHOPPING LOCAL SET TO OUTLAST COVID
42% WILL SHOP LOCAL LONG TERM
SOCIAL MEDIA
BRANDS GORGE ON WEETABIX & BEANS
FEEDING FRENZY AS BIG BRANDS PILE IN
HOME DELIVERY
DELIVERING THE GOODS
CORNWALL RETAILER HITS 10K COVID DELIVERIES
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THE WEEK IN RETAIL
EDITOR’S COMMENT SHARE YOUR NEWS AND VIEWS WITH ME AT ABEGLEY@55NORTH.COM
DARE WE DREAM ABOUT A LASTING COVID LEGACY? 2020 will go down in history as a bit of a weird year. It was horrendous in almost every respect but one: most of the local retailing sector had the best year they’ve ever had. So we found ourselves mired in a dark and mysterious netherworld where we were having the commercial time of our lives, but we wouldn’t dare shout about it for all sorts of obvious and valid reasons. Early in the first lockdown however, it became clear that many astute retailers were already viewing the pandemic as more than just the chance for a relatively short-term opportunity to replenish the coffers and pay down the debt. No, they were viewing it as an opportunity to leverage their new found positions of power within communities across the UK to build something more lasting. A legacy, if you will. Most retailers I have spoken to over the last year have been of roughly the same opinion: lots of new shoppers have discovered convenience for the first time and lots of existing shoppers are using convenience more often, but they’ll probably drift back to the supermarkets and their old ways when Covid recedes. Six months ago, that was probably a fairly sensible appraisal. But the longer this pandemic lasts and the more familiar shoppers get with how
good their local store is and how proactive it has been in supporting their community, the deeper and deeper the relationships grow. Stronger bonds take a lot more breaking, as we all know. There are countless reasons why shoppers want to use their local store and those all have to be put on one side of the scale. On the other side, we have to put the reasons why shoppers would drift back to supermarkets and discounters – pricing being the main one. The big puzzler is, what does that scale now look like? Which way is it tipping? If Lumina Intelligence’s new report is accurate, that scale is getting closer and closer to being perfectly balanced – and the momentum is surely with the local retailing sector. Approaching half of all consumers now say they plan to shop locally more often, even after Covid is gone. That is an astonishing figure and demonstrates that the sector has done a sensational job of building a lasting legacy. OK, it won’t be that simple in reality, but it clearly shows that shoppers have changed how they view the world, what they value, who they want to ‘support’ and why it might not all come down to price in the ‘new normal’. Dare we dream?
ANTONYBEGLEY ANTONYBEGLEY ANTONYBEGLEY
ANTONY BEGLEY, EDITOR
WEDNESDAY 17TH FEBRUARY 2021 / ISSUE 43 / SLRMAG.CO.UK / 3
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RETAIL
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PA RT N E R S
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CONTENTS
WEDNESDAY 17TH FEBRUARY 2021 / ISSUE 43 WWW.SLRMAG.CO.UK
6
12 THIS WEEK’S NEWS IN BRIEF
17
SHOPPING LOCALLY New research suggests that the Covidinduced trend for shopping local may be here to stay, even when the pandemic is behind us.
Scotmid shares celebrity smiles during lockdown and inflation rises spark fears of increasing costs.
OPINION: MINIMUM UNIT PRICE Licensing expert Stephen McGowan says MUP should be allowed to run its course, with no rise in the unit price.
8 COVID-19 UPDATE
24 IN-STORE PROJECT: SIGNATURE ACTION
30 CHARITY: GROCERYAID DAY
11 COVID SPECIAL: HOME DELIVERY
SCOTTISH LOCAL RETAILER OF THE YEAR
31 OUT THE BOX: COSTCUTTER LOYALTY APP
A LOCAL RETAILER MAKES HIS 10,000TH
DAN BROWN GROWS SALES OF SIGNATURE
DELIVERY SINCE THE PANDEMIC BEGAN.
ACTION BY MORE THAN 600%.
20 SOCIAL MEDIA: WEETABIX AND HEINZ
26 PICKS OF THE WEEK
ADDING BEANS TO BREAKFAST CEREAL PROMPTS A BIG BRAND FEEDING FRENZY.
TWITTER.COM/SLRMAG
COSTCUTTER ANNOUNCESD THE TRIAL OF A NEW YOYO-POWERED CUSTOMER PROMOTIONS, PAYMENT AND LOYALTY APP.
A LOOK AT THE LATEST NEW PRODUCTS
33 BEFORE YOU GO...
AND MARKETING CAMPAIGNS.
WWW.FACEBOOK.COM/SLRMAG
OUR LATEST RETAIL RANDOMS.
WWW.SLRMAG.CO.UK
WEDNESDAY 17TH FEBRUARY 2021 / ISSUE 43 / SLRMAG.CO.UK / 5
NEWS DIGEST
THIS WEEK’S NEWS FOR ALL THE LATEST NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
GOOD LORD
CAMPAIGNS
been confirmed to provide
SCOTMID SHARES CELEB SMILES DURING LOCKDOWN
a keynote address at ACS’s
SCOTTISH CELEBS HAVE COME TOGETHER TO HELP SCOTMID
Rural Shop Report launch on
LAUNCH AN INITIATIVE TO KEEP COMMUNITIES SMILING
23 February. He will reflect on
THROUGHOUT THE CURRENT LOCKDOWN.
Lord Gardiner of Kimble, Minister for Rural Affairs, has
the findings of the report and detail the Government’s plans to support rural shops. To book your free place, email steve. dowling@acs.org.uk.
GREEN GONG Spar Scotland wholesaler and retail CJ Lang has won a Scottish Green Apple Environment Award for Environmental Best Practice in 2021. Since 2019 CJ Lang has saved almost 67 tonnes of food from going to waste, reduced carbon emissions by the equivalent of 244 tonnes
Scottish celebs including comedian Janey Godley, Still Game’s Mark Cox (pictured) and Homes under the Hammer presenter Martel Maxwell are supporting Scotmid’s #sharingsmiles campaign. The initiative follows Scotmid’s first lockdown #sharingsmiles campaign, which ran last year. This time, Scotmid is asking people of all ages to share their favourite jokes and help raise a smile by showing those who remain shielding or who are finding the continued lockdown restrictions a struggle, that their communities care. Scotmid is also raising awareness of its 2021 charity partnership with
Children’s Hospices Across Scotland (CHAS). Those looking to participate can send their jokes to lynneogg@scotmid. co.uk. And if you’re wondering, the sloth said: “No, I don’t think so, it all happened so fast.”
of CO2 and given out the equivalent of 37,000 meals.
MÜLLER APPOINTMENT Müller Milk & Ingredients has appointed Mars, Aldi and Associated British Foods veteran Liam McNamara as Commercial Director as the business works towards realising its vision to become Britain’s private label dairy leader. He joins in May 2021.
POST OFFICE EXPANDS DIGITAL ID SERVICES WITH YOTI In a move that secures new, additional revenue for Postmasters, the Post Office has rolled out a suite of online and inbranch products in a new partnership with digital identity company Yoti. The rollout includes a free app that combines customers’ personal data and biometrics to create a secure, reusable ID on their phone, and in-branch services for those customers who do not have access to a smartphone or
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who prefer face-to-face contact when confirm their identity. The partnership also connects Post Office customers with online businesses, by enabling companies to use Post Office and Yoti identity verification services for fraud detection, e-signatures and customer authentication services, using secure biometric face matching and liveness detection.
NEWS DIGEST
THIS WEEK’S NEWS FOR ALL THE LATEST NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
BUSINESS COSTS
INFLATION RISES IN JANUARY INDICATE INCREASING COSTS POST LOCKDOWN
NEW WHITLEY HOME Halewood Artisanal Spirits is moving the production of its Whitley Neill gin to its City of
ONS FIGURES SHOW INFLATION ROSE BY 0.6% IN JANUARY ALONE,
London Distillery. Production
RAISING FEARS THAT IT COULD EXCEED THE BANK OF ENGLAND’S
will continue to incorporate
2% TARGET BY THE END OF 2021.
Whitley Neill London Dry Gin’s nine botanicals with distillation
The latest Office of National Statistics figures show that food prices rose by 0.6% in January, compared to a 0.1% fall last January, in what could be the first step towards increasing costs post-lockdown. The steep rise follows a climb of 0.7% in the inflation rate in the full 12 month period to January, raising concerns that inflation will exceed the Bank of England’s 2% target by the end of 2021. Major price increases were noted across a range of products and categories including premium potato
taking place in smaller, handcrafted batches to boost the brand’s artisanal credentials.
PORTMAN REPORT Alcohol industry watchdog the Portman Group has published
crisps, cauliflowers, fresh salmon and frozen prawns. Cuts in VAT for hospitality and tourism will stop at the end of March. That, coupled with rising energy prices, could push prices up further.
a new report highlighting how the drinks industry has supported the Covid-19 relief effort. Available here, the report shows how the industry has protected pubs, supported communities and produced
THIRD OF SHOPPERS STOPPED BUYING FROM EU POST-BREXIT A survey of 1,000 UK consumers carried out this month by Censuswide has found over one-third (34%) of UK consumers have already stopped purchasing goods and services from the European Union since the UK officially left the world’s largest trading bloc at midnight on 31 December 2020. The survey also revealed that costs and delays were the biggest concern for younger consumers, with 24% of 16-24-year-olds suggesting an increase in cost had put them off, and 26% suggesting increased delays were behind the decision to stop shopping with Europe. Men appeared to take a more ‘combative’ stance to EU relations than women, with nearly double the number of men indicating they would not buy EU goods for ‘ideological reasons’ as opposed to their female counterparts.
1.3m litres of hand sanitiser.
TEMPORARY MORRISONS Morrisons has unveiled a new temporary store in the Camden area of London featuring a new ‘Market Kitchen’ fresh food takeaway offer. The store sits around the corner from an existing branch that is being rebuilt. It offers a range of made-to-order meals and a home delivery service.
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NEWS SPECIAL
COVID-19 UPDATE FOR ALL THE LATEST CORONAVIRUS NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
JJ Foodservice has reported
MINISTER ‘DEEPLY SHOCKED’ BY ABUSE OF SHOPWORKERS
sales of £225m for the
SMALL BUSINESS MINISTER PAUL SCULLY MP HAS WRITTEN TO THE
calendar year ending
ACS HIGHLIGHTING HOW ‘DEEPLY SHOCKED’ HE IS BY THE ABUSE
December 2020, an increase
FACED BY PEOPLE WORKING IN LOCAL SHOPS.
JJ REPORTS GROWTH
of 1.3% compared with the same period the year before, despite Covid-19. The predominantly foodservice wholesaler said “quick thinking and a successful business-toconsumer service” had helped recoup sales.
REPURPOSE REPAYMENTS Money being repaid to the Government by large companies should be used to provide additional rates relief to small and medium-sized
In a letter to the Association of Convenience Stores CEO James Lowman, Small Business Minister Paul Scully MP has highlighted the “tremendous effort” that convenience stores have made during the pandemic, paying tribute to retailers that have “gone out of their way to support the more vulnerable members of the community during this time”. Scully said he is “deeply shocked” at the violence and abuse suffered by retailers, often triggered as a result of reminding customers about
face coverings and social distancing measures. Lowman said: “We welcome the Minister’s recognition of the incredible work that convenience stores have put in to keep their communities going over the past year.” The Assaults on Retail Workers Bill is currently awaiting a second reading in Parliament, which would make offences against people working in shops aggravated for the purposes of sentencing. More details on the Bill are available here.
retailers and businesses in the hospitality industry which have been hardest hit by the pandemic, says tax and advisory firm Blick Rothenberg.
MILLION MARK More than one million people at greatest risk from coronavirus in Scotland have had their first dose of the vaccine. The programme has now reached more than onefifth (22%) of the 4.5 million people who will be offered a jab.
29,000 PUBS TO REMAIN CLOSED IN APRIL The British Beer & Pub Association says it believes 29,000 pubs – 60% of all pubs in the UK – will still remain closed in April, even if outdoor service is permitted. The trade association says this is because most pubs in the UK do not have a big enough garden or outdoor space to re-open and serve customers without opening indoors too. The figures come as speculation and reporting suggest that outdoor service could be permitted in hospitality venues from April. The BBPA says around 75% of UK pubs have a beer garden or outdoor space, but that only 40% of pubs are likely to have a beer garden or outdoor space big enough. Even then, if many with big enough outdoor spaces did open, they could still struggle to break even as they would still have vastly reduced capacity and have significant practical challenges such as the April weather to deal with. It would mean that if pubs did open outdoors only in April, just 17% of UK pub capacity (both indoor and outdoor) would be opened.
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NEWS SPECIAL
COVID-19 UPDATE FOR ALL THE LATEST CORONAVIRUS NEWS, HEAD TO WWW.SLRMAG.CO.UK/CATEGORY/NEWS/
SCOTTISH RATES RELIEF EXTENDED
ASDA’S PERSONALISED CHOCOLATE MACHINE
THE SCOTTISH GOVERNMENT ANNOUNCED YESTERDAY THAT THE
S
RETAIL, TOURIST AND HOSPITALITY BUSINESSES WILL PAY NO RATES
Asda has added a new machine in its Stevenage innovation store offering customers the opportunity to create personalised chocolates. Launched with Valentine’s Day in mind, the new machine is from Candy Mechanics.
DURING 2021-22.
cotland’s Finance Secretary announced yesterday that retail, tourist, hospitality and aviation businesses will pay no rates during 2021-22 under proposals from the Scottish Government. It is one of a series of measures proposed following confirmation of a further £1.1bn of consequential funding arising from UK Government Covid‑19 spending. The government press release states that: “The move builds on the three month rates relief extension announced in the Scottish Budget and will be taken forward provided the Scottish Government receives the funding already assumed from the UK Budget on 3 March, and that requisite funds are available to maintain existing support into 2021-22.” The Budget update statement is available to read here.
Prime Minister Boris Johnson has stated that his Government will take a “data not dates” approach to easing lockdown restrictions, reiterating that England will only ease lockdown measures “cautiously”. Johnson is expected to set out some form of road map for easing restrictions next week. The PM stated that he only wanted to “be going one way from now on”.
He said relaxation would be done in stages and the reopening of the hospitality industry remains likely to be one of the last things to return.
TECH SOLUTIONS
‘DATA, NOT DATES’ TO DRIVE LOCKDOWN EASING
The machine lets shoppers choose from a range of templates then personalise the messaging to their own requirements before collecting their creation and paying at the checkout.
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SUPPORTING GROCERY COLLEAGUES The GroceryAid Covid-19 Fund is designed to help colleagues who need support now and throughout the full impact of the pandemic. Grocery colleagues have access to:
“Amid the huge challenge of Covid-19 our trade has done a great job of keeping the nation fed. GroceryAid has raised a special Covid-19 fund to help our industry colleagues at this time of need. The 24/7 Helpline will deal with concerns and assist with financial stress caused by this terrible virus.” - Charles Wilson, GroceryAid President
Mental Health Support Offering ‘in the moment’ emotional and practical support for colleagues dealing with shock, anxiety and stress through BACP trained counsellors, our Health and Wellbeing portal and Woebot, our AI Robot App. Bereavement Financial Assistance Providing financial assistance for the loss of a loved one through Covid-19. Available to colleagues who lose a partner or the immediate family of a colleague who has passed away as a result of Covid-19 whilst working in our industry. Crisis Grants Non-repayable grants, designed to help with financial emergencies. This is available for colleagues experiencing unexpected financial difficulties due to Covid-19 with a year’s industry service.
GroceryAid Helpline: 08088 021 122 Visit: www.groceryaid.org.uk Follow us:
COVID-19 SPECIAL
HOME DELIVERY NISA NANPEAN AND ST STEPHEN
10,000 COVID DELIVERIES AND COUNTING A CORNWALL LOCAL RETAILER HAS JUST MADE HIS 10,000TH DELIVERY UNDER COVID-19 SINCE HE
C
FIRST LAUNCHED A HOME DELIVERY SERVICE LAST MARCH.
ornwall-based Nisa retailer Gary Batten has just made his 10,000th home delivery since launching the service from his two stores at the start of the first Covid lockdown in March last year. Gary Batten operates Nisa Local fascia stores in Nanpean and St Stephen. He began the delivery option for shoppers as soon as the pandemic hit, recognising the need from the local community. Almost a year on Gary and his team have made the milestone delivery, the service being an essential offer for local people who have struggled to secure slots with larger supermarket chains. Gary said: “We had never done deliveries at all in the six years since we have had the stores, but we thought we needed to support the local community and it really took off because of the number of people self-isolating and shielding during the first lockdown.” Initially offering a very simple phone-in service requiring shoppers to call the store to place the order, the service has now developed and uses the Appy Shop mobile app. However, Gary says he has kept the simple phone option as it is used by a small number of regular customers who are not comfortable with technology or don’t have internet access. He explains: “We get quite different customers from the app as compared to those we cater for over the phone. And many of the Appy Shop customers are new to us who we may not see again whilst our shoppers who call in their orders are loyal and regular customers.”
At the peak, the business was making around 100 deliveries every day and while that has reduced, the service is still well used across both stores with a dedicated driver employed to make the drops. “We are delivering to about 30 customers every day now and that number has remained steady. We think we’ll see it stay at around that even after Covid because people have started to shop in a different way,” concludes Gary. “We are providing a service to the community that they need, and they stay loyal to us because of that.”
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COVER STORY
SHOPPING LOCALLY RESEARCH
SHOPPING LOCAL TREND SET TO OUTLAST COVID MORE CONSUMERS THAN EVER ARE SHOPPING LOCALLY, BUT NEW RESEARCH SUGGESTS THAT THIS COVID TREND MAY EVOLVE INTO A PERMANENT FEATURE OF THE RETAIL LANDSCAPE, EVEN WHEN CORONAVIRUS IS BEHIND US. BY ANTONY BEGLEY
I
t’s well documented that more consumers than ever are shopping locally, a shift driven by the effects of Covid-19. Nervousness around the safety of big box shopping has led shoppers to flock to local retailers creating a once in a lifetime opportunity for the sector.
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But the concern was always that when things returned to ‘normal’ or, more likely, to some form of ‘new normal’ then shoppers would gradually drift back to their old habits of big supermarket shops and increasingly infrequent visits to the local stores that were there for their customers when
COVER STORY
SHOPPING LOCALLY RESEARCH
they needed them during various forms of lockdown. And that’s before we even contemplate the threat presented by the surge to online grocery shopping. The big challenge has been trying to build a legacy for the sector from the experiences of 2020, rather than simply enjoying the spike and having something to look back on in years to come and tell the grandkids about. “Ah, remember 2020, what a year that was for sales...” New research from Lumina Intelligence, however, suggests that the shift in positive consumer sentiment towards the local retailing channel is potentially deeper and longer-lasting than we might have dared to hope. The research specialist’s Future of Convenience Report 2021 reveals that a huge proportion of shoppers – 42% – say they intend to shop more locally in the future. Additionally, a whopping 78% say it’s either ‘important’ or ‘very important’ to support local suppliers and retailers. Now, what shoppers say and what they actually do may be two very different things, but these are nevertheless important findings. A large section of the new report focuses on the legacies of 2020 and how post-pandemic behaviour will impact future shopper intentions. The report highlights three key legacies from 2020, cryptically entitled: suburban migration, expanding avenues and recessionary revivals.
THE SUBURBAN MIGRATION Pre-pandemic lifestyles centred around
“Community involvement is pivotal in building loyalty and awareness and positive community involvement directly correlates with likelihood to recommend a store.” urban workplaces, global mindsets and inside living. The coronavirus pandemic saw these norms traded for home working, local living and a ‘chase for outdoor space’ as city centre footfall plummeted. All of which is expected to continue into 2021: Q 78% say it’s either ‘important’ or ‘very important’ to support local suppliers and retailers. Q 53% have shopped locally more in the last year. Q 42% will continue to shop locally in the future. Q 74% say it’s either ‘important’ or ‘very important’ to support businesses who give back to the community. Alice Dolling, Senior Insight Manager at Lumina Intelligence, said: “Disrupted global supply chains and trade restrictions for businesses made local buying both a necessity and desire in 2020. This behaviour is expected to continue, with most consumers defining ‘local’ as ‘made in the UK’ – a trend that will be boosted by Brexit. “Convenience store retailers are perfectly positioned to capitalise on
the demand for shopping locally. Community involvement is pivotal in building loyalty and awareness. In fact, positive community involvement directly correlates with likelihood to recommend a store.”
EXPANDING AVENUES The coronavirus pandemic has accelerated new routes to market with consumers shifting to online. Demand for delivery from supermarkets outstripped supply during the spring, creating an opportunity for convenience stores and sparking growth in ‘On Demand Convenience’. Retailers also innovated with the introduction of bundle boxes and subscription offers, which are affordable and provide much needed inspiration and solutions for shoppers: Q 18% of consumers have changed their primary method of grocery shopping to online in the last year. Q 38% of consumers are not aware of convenience store delivery, however 48% would use it. Q 27% would replace a takeaway with delivery from a convenience store.
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COVER STORY
SHOPPING LOCALLY RESEARCH
Dolling added: “2020 saw an acceleration in online shopping that we could never have predicted. Nearly onein-five shoppers changed their primary method of grocery shopping to online, highlighting the opportunity available. As demand increases, convenience stores have a great opportunity to drive greater basket spend and expand the potential catchment area of their store by offering delivery. Not only that, delivery provides another avenue to compete with foodservice operators in the ‘takeaway’ market.”
SAVVIER SHOPPERS In August 2020, the UK entered a recession for the first time in 11 years
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COVER STORY
SHOPPING LOCALLY RESEARCH
REPORT METHODOLOGY Future of Convenience Report 2021 The report comprises of insight and research from the following three sources: Q Future of Convenience 2021 Bespoke Survey
Online interviews with a nationally represented sample of 1,152 consumers that are actively engaging with the UK food and drink market. Interviews conducted 2 to 9 December 2020.
Q Lumina Intelligence Channel Pulse
A monthly tracker of consumer behaviour across all UK food and drink channels. Consisting of a nationally representative sample of 1,000 consumers each month.
Q Lumina Intelligence Convenience Tracking Programme – Online
Online interviews with 1,500 convenience retail shoppers every week.
and unemployment rates have soared through the pandemic. The economic impact of the virus is likely to be felt for many years and retailers and suppliers should therefore expect to see consumers demonstrating savvier shopping behaviour: Q 61% are ‘very’ or ‘extremely’ aware of product prices in convenience stores. Q 43% are ‘likely’ or ‘highly likely’ to join a loyalty scheme if it offered personalised offers. Q 28% of shoppers purchase ownlabel. Q 46% either ‘agree’ or ‘strongly agree’ that they are trying to reduce their food and drink spend. Q 66% either ‘agree’ or ‘strongly agree’
that they are more careful with what they spend money on than before lockdown began. Dolling commented: “In April 2020, 37% of consumers said they were visiting their local convenience store more often, driven by government advice to ‘stay local’. The big challenge for retailers in 2021 will be to retain these shoppers. With the UK entering its first recession in 11 years, consumers will be more aware of their spending and will be engaging in price comparisons. Retailers and suppliers will inevitably have to be reactive with promotions, but also offer loyalty schemes to gain and retain shopper custom.”
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OPINION
MINIMUM UNIT PRICING STEPHEN MCGOWAN, PARTNER, TLT LLP
MUP: THE GRAND EXPERIMENT MUST RUN ITS COURSE NOW HALFWAY THROUGH ITS SIX YEAR PILOT IN SCOTLAND, MINIMUM UNIT PRICING SHOULD BE
M
ALLOWED TO RUN ITS COURSE WITH NO INCREASE IN UNIT PRICE, ARGUES TLT PARTNER STEPHEN MCGOWAN.
“MUP in Scotland was a world first, and the world is watching. Calls for it to be tinkered with, for the MUP to be increased, for it to be abolished, should be put to one side.”
inimum pricing of alcohol (MUP) is halfway through its six-year pilot in Scotland, with the world waiting expectantly to see what this “grand experiment” will deliver. It is the first scheme of its kind anywhere and therefore an important trial of a system designed to address the impact of MUP on the nation’s health and the alcohol and associated industries. Scotland is a meaningful place to run this pilot, but its findings will also likely help shape important policies in other jurisdictions, in addition to the longer-term regulation of alcohol in Scotland. This becomes even more important after the pandemic, which has had such a profound impact on individuals and retail, leisure, food and drink operators alike. It took several years to reach the scheme that we see today. An important part of bringing it about was the European and in turn Scottish courts’ recognition that the Scottish Government had agreed to a so-called “grand experiment” and, as part of that, a “sunset clause”. This legislative brake was critical to the courts’ acceptance of the scheme, because it meant that the policy was essentially under a live review process, and a decision on whether to reverse it would have to be actively considered by Parliament within a set period. That set period is, in essence, a six-year pilot project – a live, real world study, under the Alcohol (Minimum Pricing) (Scotland) Act 2012 and attendant regulations. The actual unit price is 50p. It was on the basis of this 50p figure that all
WEDNESDAY 17TH FEBRUARY 2021 / ISSUE 43 / SLRMAG.CO.UK / 17
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OPINION
MINIMUM UNIT PRICING STEPHEN MCGOWAN, PARTNER, TLT LLP
the modelling was done, all the political jostling occurred, and in turn it was on this figure that the courts approved the six-year experiment. The 2012 Act created a legal requirement for Parliament to produce and assess a report at the five-year mark, in order to inform the decision to “stick or twist”. That report will therefore have to be delivered to Parliament in 2023, with the decision to extend or abolish MUP made by 1 May 2024. The Scottish Government appointed NHS Health Scotland (now Public Health Scotland), and in turn the academics who had modelled the scheme, to draw up this report. Crucially, this report is required by law to not just focus on the impact of MUP on alcohol health, but the impact of the scheme on licence holders and producers of alcohol. The work on this report has, as it turns out, been progressing as a series of “mini studies”, most of which are funded by the NHS or its corollary MESAS (Monitoring and Evaluating Scotland’s Alcohol Strategy), with some studies funded separately through universities. Inevitably, each study – of which there will be at least 27 – has triggered a flurry of arguments for and against the unit price from its supporters and detractors. Likewise, separate stories on alcohol health, sales and so on – be they from the ONS, WHO or anyone else – have led to calls from pressure groups, politicians and others on the matter.
The health aspects of this regulation are of course genuine and serious, and the official studies will bear much weight in the final analysis and conclusions. But agitating to change the rules of the experiment halfway through runs the risk of undermining it altogether, and we must remember the aforementioned conditions under which it was brought about in the first instance. There will no doubt be a long and learned debate about the efficacy of the scheme at the conclusion of the review. There have been – and will be – ups and downs in the data across the life of the pilot project as a result of macroinfluence: societal, environmental and economic factors. Not least of these is the pandemic, which, according to data issued by Public Health Scotland today, has resulted in a 6% drop in alcohol consumption. Figures from the NHS, Drinkaware, HMRC and so on represent a relatively brief snapshot in time, and so the scheme must be allowed to play out within the parameters the courts and Parliament has agreed. Minimum pricing in Scotland was a world first, and the world is watching. Calls for it to be tinkered with, calls for the MUP to be increased, calls for it to be abolished, should in my own view be put to one side: at least for now. Stephen McGowan is a leading licensing solicitor and partner at UK law firm TLT LLP. He is the author of the forthcoming book ‘Alcohol Licensing Law in Scotland’, Edinburgh University Press, to be published in summer 2021.
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SOCIAL MEDIA
WEETABIX & BEANS TRENDING
BRANDS GORGE THEMSELVES ON WEETBABIX AND BEANS WHEN THE WEETABIX AND BEANS SERVING SUGGESTION WENT VIRAL, IT DIDN’T TAKE LONG FOR A STELLAR CAST OF BIG BRANDS TO GET IN ON THE ACT – MANY OF THEM FUNNY, SOME OF THEM NOT SO MUCH.
In the digital age we live in, one of the more interesting phenomena is the viral social media post. When a post goes viral, as it did with the recent Weetabix and beans palaver, it often prompts a feeding frenzy as others attempt to get in on the act. The consequences, as you will see, can be quite amusing. And sometimes, not so much...
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SOCIAL MEDIA
WEETABIX & BEANS TRENDING
WEDNESDAY 17TH FEBRUARY 2021 / ISSUE 43 / SLRMAG.CO.UK / 21
SOCIAL MEDIA
WEETABIX & BEANS TRENDING
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SOCIAL MEDIA
WEETABIX & BEANS TRENDING
WEDNESDAY 17TH FEBRUARY 2021 / ISSUE 43 / SLRMAG.CO.UK / 23
IN-STORE PROJECT
SIGNATURE ACTION DAN BROWN
600% SIGNATURE GROWTH AND RISING! MUSSELBURGH RETAILER DAN BROWN, REIGNING SCOTTISH LOCAL RETAILER OF THE YEAR, HAS
T
GROWN HIS SALES OF SIGNATURE ACTION BY MORE THAN 600% IN THE LAST COUPLE OF MONTHS, AND SALES ARE STILL RISING.
here’s nothing quite so satisfying as seeing your efforts rewarded in the till, and that’s something Musselburgh Nisa retailer Dan Brown has found over the last couple of the months as part of an in-store project with The Week In Retail and Scandinavian Tobacco Group UK (STG). The project centred around the increasingly popular Signature Dual leaf-wrapped cigarillos, recently renamed and rebranded as Signature Action [see panel]. After more than two months of effort focusing on the product, Dan and his team have succeeded in growing sales by 600% – and sales are still rising. “It’s been a pretty successful initiative, I have to admit,” says Dan, the youngest-ever President of the Scottish Grocers’ Federation. “First and foremost, I have to say thank you to my team who have been incredibly helpful and supportive in our drive to focus on Signature Dual, or Signature Action as it’s now called. I remember being pleasantly surprised that we had seen 500% growth in the first month of the project, so to see that figure keep growing to 600% is fantastic. And we’re still seeing that growth continue.” Dan points out that, yes, the growth was from a relatively small base, but a
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600% increase in sales is pretty remarkable for any product in any category let alone a category facing so many practical instore challenges. The store has gone from selling around one outer a week to selling at least six a week, which is impressive growth. The success proves once more that a little focus and attention dedicated to the product and the wider cigars category will deliver for retailers. “I’m actually surprised that we’ve had such big success because, at the end of the day, the legislation around the category means we don’t have a lot of tools at our disposal to drive sales, but it just goes to show what can be achieved, even with so many challenges,” says Dan. The secret to Dan’s success? “There’s no doubt that making Signature Action the cheapest product on the gantry was a major factor,” says Dan. “We had to make a very small tweak to the pricing, and we trained staff to upsell at the till point. Whenever anyone mentioned price, we were able to suggest Signature Action as the lowest-priced product we stock. “We also gave the staff a briefing on the product itself so that they could talk knowledgeably, should customers want any more information – and many did.
IN-STORE PROJECT
SIGNATURE ACTION DAN BROWN
HOW DID DAN MANAGE IT? Dan’s top tips for growing sales of Signature Dual are: Q Make it the cheapest product on the gantry, to appeal to shoppers looking to minimise outof-pocket-spend. Q Encourage staff to upsell at the till point, highlighting Signature Dual when a customer mentions price. Q Train staff on the features of the product so that
SIGNATURE ACTION – NEW NAME, SAME PRODUCT Scandinavian Tobacco Group UK transitioned its Signature Dual brand to Signature Action at the start of this year, to maintain consistency within its global brand portfolio. STG’s UK Country Director Alastair Williams says: “Sales of our newly re-named
they can talk
Signature Action brand have been growing steadily since launch, and we will be
knowledgably
continuing to build on this momentum throughout 2021, not least through our field
and answer any
sales force who will be calling on as many independent retailers as possible to talk
questions from
to them about it. We are keen to stress that only the name of the product is changing
customers.
and the cigar itself will remain the same. It still offers adult smokers the same smooth
Q Maintain good
and enjoyable smoking experience and will continue to play an important role in our
stock levels.
market leading Signature brand portfolio.”
“But the fact that sales have grown consistently means that the product is delivering for shoppers. Repeat purchases mean shoppers like the product and it’s repeat purchases we’re looking for.” Signature Action features a peppermint capsule and comes in a convenient and stylish pack of 10 that isn’t covered by the EUTPD2 regulations, so the product is still in branded packs.
“Most new sales come from people looking to minimise out of pocket spend or looking for a menthol option, now that they can’t buy menthol cigarettes,” concludes Dan. STG’s UK Country Director, Alastair Williams, says: “600% growth is an outstanding achievement by any standard. Dan and his team have clearly done a fantastic job and demonstrated that this is an outstanding product that will sell in volume when retailers get behind it.”
WEDNESDAY 17TH FEBRUARY 2021 / ISSUE 43 / SLRMAG.CO.UK / 25
NPD AND MEDIA
PICKS OF THE WEEKS SPECIAL – WALKERS V KFC TO GET YOUR PRODUCT LISTED PLEASE CONTACT RAITKEN@55NORTH.COM
WALKERS MAX v KFC ADVERT ‘JUST MAKES PERFECT SENSE’
THIS WEEKEND SAW THE FIRST AIRING OF THE NEW WALKERS MAX X KFC TV AD, COMPLETE WITH GARY LINEKER IN A COLONEL SANDERS GETUP.
WALKERS MAX X KFC Q Walkers MAX Kentucky Fried Chicken and Walkers MAX Double Crunch Zinger are available all-year-round. Q An on-pack promotion gives consumers a 2-for-1 KFC Meal for One with every pack. Consumers simply need to buy a promotional pack and take it to their local KFC restaurant to claim a 2 for 1 KFC Meal for One. Q The promo is valid until 31 July 2021 To mark the launch of the new Walkers MAX x
and can be used for dine-in at a later
KFC flavoured crisps and its on-pack promo
date, once restaurants have fully
offering a 2-for-1 KFC Meal with every pack, this
reopened, as long as customers hold
weekend saw the national debut of the brand’s
onto their promotional packs.
TV ad. Matt Watson, Creative Director at PepsiCo, comments: “There are some things in life that,
But something Watson also noticed was the
once you’ve seen them, just make perfect sense.
distinct resemblance between Walker brand
KFC flavoured crisps – a no brainer, right?”
ambassador Gary Lineker and Colonel Sanders himself. Hence why Lineker stars in the ad in full
RSPS (BOTH WALKERS MAX KENTUCKY FRIED CHICKEN AND WALKERS MAX DOUBLE CRUNCH ZINGER):
Colonel Sanders get up.
Q 50g grab bags – 85p RSP
will feature heavily across TV, digital and social
Q 70g and 65g price-marked packs – £1
media until early April.
RSP
The ad premiered on Saturday with a 30” spot during the final of The Masked Singer and
The media campaign is being supplemented
Q 140g sharing bags – £1.99 RSP
with Walkers’ first ever TikTok Top View creative
Q 6 packs – £1.70 RSP
and a Twitter Spotlight takeover, which both went live yesterday.
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NPD AND MEDIA
PRODUCTS OF THE WEEK SPECIAL – RUBICON RAW ENERGY TO GET YOUR PRODUCT LISTED PLEASE CONTACT RAITKEN@55NORTH.COM
WHAT YOU NEED TO KNOW... Q Three variants: Raspberry & Blueberry, Orange & Mango and Cherry & Pomegranate. Q Made with 20% real fruit juice. Q Caffeine from green coffee beans. Q B-vitamins, natural flavours, no artificial colours.
RUBICON RAW’S FRESH TAKE ON ENERGY
Q Launch supported
BARR SOFT DRINKS IS URGING SHOPPERS TO BECOME
Q Outer wrapped in 100%
by £1.5m consumer campaign.
A FORCE OF NATURE WITH NEW RANGE OF LESS MASCULINE, NATURAL FRUIT JUICE-BASED ENERGY
recycled film. Q Plan pack and PMP –
DRINKS UNDER ITS RUBICON BRAND.
RSP £1.29.
Barr Soft Drinks has unveiled a new big can
in their lives today. They adopted the category
energy drink range under its Rubicon brand.
as young adults, but many have matured and
Rubicon Raw has been built on “a foundation of
evolved as consumers since then, and they’re
consumer insight”, says the company and “offers
calling out for something new.”
something truly new and different” to today’s energy drinks market. Aimed at “developing” energy consumers,
That research revealed that the average age of an energy drinker – 31 – is older than many retailers might think.
Rubicon Raw features a ‘less masculine’ design
The Rubicon Raw range comprises three
and is made with 20% real fruit juice together with
variants – Raspberry & Blueberry, Orange &
caffeine from green coffee beans and B-vitamins
Mango and Cherry & Pomegranate – with natural
providing a big energy hit that is full of flavour.
flavours and no artificial colours.
“We’ve launched Rubicon Raw to meet the
The launch will be supported by a £1.5m
needs of today’s developing energy consumers,”
consumer,
says Adrian Troy, Marketing Director at Barr Soft
campaign.
social
and
shopper
marketing
Drinks. “We have invested heavily throughout
The levy-free 500ml Rubicon Raw range is
the development of Rubicon Raw to understand
available in plain pack (RSP £1.29) and a £1.29
the Energy consumer better, and what’s relevant
PMP with a range of in-store and in-depot POS.
WEDNESDAY 17TH FEBRUARY 2021 / ISSUE 43 / SLRMAG.CO.UK / 27
NPD AND MEDIA
PICKS OF THE WEEK – TRY SOMETHING DIFFERENT... TO GET YOUR PRODUCT LISTED PLEASE CONTACT RAITKEN@55NORTH.COM
The Pakora Explorer has
HANDLE WITH CARE
GIVE IT A SHOT
launched handmade fresh
Big Wave Brands has
Steeps has launched Steeps
pakoras, aimed at the food-to-
launched pineapple Aloha 65
One Shot, a 250ml fiery
go market. The range is free
Detonators, fresh pineapple
blend of seven raw, natural,
from additives, colourings and
chunks pickled and infused
sustainably-sourced organic
preservatives and is available
with scotch-bonnet chilli.
ingredients, infused for 12
in vegetable, chicken or mixed
Perfect for the BBQ, burgers or
weeks in apple cider vinegar,
vegetable & chicken, complete
in a spicy salad – and not for
designed to be drunk in small
with pakora sauce.
the faint hearted.
measures once a day.
RSPs: £3.50 to £4.20
RSP: £4.95
£12.95
WORLD’S STRONGEST
LUXURY EASTER
GET REAL
COFFEE
Hames Chocolates has
Fruittella has been given a
Black Insomnia has launched
launched a new premium
makeover to highlight the real
Dark Roast Grounds, a
chocolate egg range for
fruit that goes into every pack
“robust” coffee with 1105mg of
Easter featuring two milk
and to significantly reduce the
caffeine in every mug – four
chocolate, one milk and white
weight of its packaging. The
times the strength of most high
chocolate and two vegan-
refresh runs across 30 UK
street brands, making it the
friendly eggs. All packaging is
SKUs, showcasing the brand’s
world’s strongest, allegedly.
environmentally friendly.
ingredients and free-from
RSP: £14.99
RSP: £12.50
credentials.
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NPD AND MEDIA
PICKS OF THE WEEK TO GET YOUR PRODUCT LISTED PLEASE CONTACT RAITKEN@55NORTH.COM
SNACK ATTACK
KOOKIE CREW
RITTER LISTING
PepsiCo is introducing two £1
Maryland Cookies is
Family-owned chocolate
PMPs into the value snacks
encouraging consumers to
producer Ritter Sport has
category – Cheetos Footballs
‘Keep it Kookie’ in a major
secured a national listing
and Smiths Funyuns Onion
brand repositioning which says
in Morrisons after a sixth
Flavour Rings. The snacking
Maryland is ‘unashamedly
consecutive year of growth
giant is supporting the launch
different’. The initiative is
for Ritter Sport in the UK. The
with extensive in-store
backed by a £750k spend
brand is already stocked in
marketing.
featuring a fully-integrated,
Sainsbury’s, Waitrose, Ocado
RSP: £1
digital-led marketing campaign.
Co-op, BP and Nisa.
FUNCTIONAL CHEESE
SPAR GOES NATURAL
BEEFEATER GETS
FIRST
Spar has launched a new
FRUITY
Babybel Plus is the cheese
range of 15 Spar Natural
Beefeater is introducing a new
brand’s first ever functional
health and wellness products.
Peach & Raspberry flavour
snack line designed specifically
The range features 12 prompts
inspired by two historic recipes
for the food-to-go category.
including vegan, vegetarian,
from founder, James Burrough,
It launches with two variants,
organic, lactose free, sugar
who created Peach Liqueur
Babybel + Vitamins and
free, honey free, gluten free,
and Raspberry Gin in the
Babybel + Live Cultures.
wheat free, dairy free, egg free,
1800s.
RSP: £1
wild grown and allergen free.
RSP: £18.99
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CHARITY
GROCERYAID DAY MOTIVATIONAL SPEAKER
GET MOTIVATED – AND RAISE CASH FOR INDUSTRY COLLEAGUES IN NEED! AS PART OF ITS ANNUAL GROCERYAID DAY ON 2 MARCH, THE INDUSTRY CHARITY’S SCOTTISH BRANCH IS INVITING EVERYONE TO JOIN A MOTIVATIONAL TALK BY FORMER ROYAL MARINE COMMANDO HON COL DR ANDY GRANT.
N
ext month on 2 March, GroceryAid will be holding its annual Awareness Day for the industry charity which supports everyone involved in the grocery retail trade – including, of course, those who work in independent retail. The Scottish branch of GroceryAid is hosting an online event to mark the occasion. Organiser Scott Black, National Account Controller at Highland Spring and Branch Treasurer, says: “We want to spread the word about the charity but also provide everyone with a much-needed boost. Andy’s story is truly inspirational and I hope that as many people as possible in the trade in Scotland and further afield take an hour or so out of their day to hear it. “To encourage participation, we are not selling tickets – all we ask is that you make a donation of whatever amount you feel you can afford. These donations help fund the financial and
JOIN THE EVENT HERE
emotional support we are providing to workers in all sectors of the grocery trade in Scotland whether that’s through our Covid fund, crisis grants, our extensive helpline services or other forms of support.”
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You can donate and join the event through this link. If you know of anyone who might need the support of GroceryAid please direct them to the website or the helpline number: 08088 021 122.
NOW THAT’S A GOOD IDEA…
OUT THE BOX COSTCUTTER APP
COSTCUTTER TRIALS LOYALTY APP COSTCUTTER HAS ANNOUNCED THE TRIAL OF A NEW YOYO-POWERED CUSTOMER PROMOTIONS, PAYMENT AND LOYALTY APP.
WHAT’S THE BIG IDEA? A new app from Costcutter.
WHAT DOES IT DO? It will let users make instant payments, access exclusive promotions and collect and redeem loyalty points in their chosen Costcutter store.
HOW LONG IS THE TRIAL RUNNING? Three months.
WHERE IS IT BEING TESTED? In Costcutter’s 23 company-owned stores.
DID THEY CREATE IT THEMSELVES? No, they’re working with retail app partner Yoyo, a free app, which is available across all mobile platforms and gives shoppers access to a range of personalised offers, recipe ideas and competitions, as well as a quick and easy to use store locator to allow shoppers to find their nearest Costcutter store.
WHAT ARE THE BENEFITS TO COSTCUTTER RETAILERS? As well as the obvious ones – loyalty, speed of transaction and so on – the app provides Costcutter with realtime transaction data which will offer much more detailed insight of shopper behaviours. That data will then be used to help Costcutter adapt campaigns to meet the specific needs of shoppers at a local store level and will allow for much greater personalisation of content.
WHAT IS COSTCUTTER SAYING? Sean Russell Director of Marketing at Costcutter, said: “We’re continuing to develop our local, mobile and social marketing, and we are thrilled to be launching the trial of our first ever customer app, created by Yoyo. This will not only support loyal shoppers but also give them an enhanced experience instore. “We are always looking at new ways to reach and engage Costcutter shoppers and this new trial in our
company owned stores will be a great way to help us demonstrate how we can build shopper penetration and increase basket spend. It will also help us build deeper and longer lasting relationships with shoppers, converting many of new ‘lifeline’ shoppers who may have trialled their local store during lockdown, into lifelong loyal customers.”
WHAT IS YOYO SAYING? JP Klopper, MD at Yoyo, commented: “Today’s shopper is demanding a more rewarding, more personalised and more convenient shopping experience. We are excited to be working with a market leading company that recognises this. “Through the app we believe that Costcutter will be able to accelerate building stronger and more mutually beneficial relationships directly, with new and existing shoppers alike. We are excited to launch the trial with them and to partner on further developments in the coming months, following the results of the trial.”
“The app provides Costcutter with real-time transaction data which will offer much more detailed insight of shopper behaviours.” WEDNESDAY 17TH FEBRUARY 2021 / ISSUE 43 / SLRMAG.CO.UK / 31
BEFORE YOU GO
RETAIL RANDOMS PROFITABLE STREET NAMES / TROUBLE BREWING
GOTTA LOVE IT
Never short of a clever idea or two to cause exhilaration and offence in equal measure, the marketing team at Marmite have done it again with a new out-of-home billboard execution to support the launch of its new (thankfully) limited-edition Marmite Dynamite variant. Love it or hate it, it’s a “chilli breakfast spread” and, love it or hate it, it’s only available in Sainsbury’s. Whatever you think of it, you’ve just gotta love the billboard they created to support the launch.
MINIMUM PRICING – MY HOW YOU’VE CHANGED (OUR MINDS)
As an industry, we tend to be pretty conservative (with a small ‘c’) when it comes to change, particularly legislative change. So it was fascinating to read TLT solicitor Stephen McGowan’s opinion piece in this issue [insert link to page 17] which is basically an impassioned demand that the Minimum Unit Pricing (MUP) trial doesn’t get tinkered with before it runs its course. Perhaps impassioned is the wrong word, but it’s as impassioned as a lawyer can get. Anyway, it got us to trawling through back issues of SLR and thinking about the time all those years ago when MUP was first mooted. The convenience industry was up in arms about another bit of legislation that would restrict their ability to run their businesses how they saw fit. There was outrage. There was fury. Fast forward to today and most local retailers in Scotland will tell you it’s one of the best things that ever happened to the sector.
Overnight it pulled the rug from under the supermarkets who could no longer offer ridiculously cheap deals on cases of beer just to get punters through the door. Before MUP you could buy a case of beer in Tesco cheaper than you could buy it from your wholesaler. The net result was a drop in total volume sales but a big increase in margins for retailers. It’s a funny old game, right enough, and you really need to be careful what you wish for.
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R E T A I L L I A RET TH E W EE K IN
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